Reported Earnings • Jul 26
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: US$0.17 (up from US$0.34 loss in 2Q 2021). Revenue: US$95.0m (up 46% from 2Q 2021). Net income: US$9.31m (up US$26.7m from 2Q 2021). Profit margin: 9.8% (up from net loss in 2Q 2021). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 750%. Over the next year, revenue is forecast to grow 23%, compared to a 16% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 49% per year, which means it is well ahead of earnings. Recent Insider Transactions Derivative • Jul 23
COO & Senior VP exercised options and sold US$212k worth of stock On the 20th of July, Chi Cheung exercised options to acquire 13k shares at no cost and sold these for an average price of US$15.73 per share. This trade did not impact their existing holding. Since March 2022, Chi has not owned shares directly. Company insiders have collectively sold US$2.2m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Jul 07
COO & Senior VP exercised options and sold US$254k worth of stock On the 1st of July, Chi Cheung exercised options to acquire 16k shares at no cost and sold these for an average price of US$15.63 per share. This trade did not impact their existing holding. Since March 2022, Chi has not owned shares directly. Company insiders have collectively sold US$2.0m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • May 28
Independent Director notifies of intention to sell stock Bandel Carano intends to sell 3k shares in the next 90 days after lodging an Intent To Sell Form on the 23rd of May. If the sale is conducted around the recent share price of US$15.07, it would amount to US$51k. Since June 2021, Bandel's direct individual holding has increased from 16.08k shares to 24.42k. Company insiders have collectively sold US$2.7m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • May 09
Senior VP notifies of intention to sell stock Wupen Yuen intends to sell 4k shares in the next 90 days after lodging an Intent To Sell Form on the 5th of May. If the sale is conducted around the recent share price of US$15.08, it would amount to US$57k. Since June 2021, Wupen's direct individual holding has decreased from 226.83k shares to 173.90k. Company insiders have collectively sold US$2.7m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Apr 29
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: US$0.062 loss per share (up from US$0.21 loss in 1Q 2021). Revenue: US$89.3m (up 47% from 1Q 2021). Net loss: US$3.30m (loss narrowed 69% from 1Q 2021). Revenue exceeded analyst estimates by 8.8%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Over the next year, revenue is forecast to grow 21%, compared to a 20% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Price Target Changed • Apr 27
Price target increased to US$16.00 Up from US$14.10, the current price target is an average from 4 analysts. New target price is 5.5% above last closing price of US$15.17. The company is forecast to post earnings per share of US$0.08 next year compared to a net loss per share of US$0.78 last year. Announcement • Apr 23
NeoPhotonics Corporation, Annual General Meeting, Jun 02, 2022 NeoPhotonics Corporation, Annual General Meeting, Jun 02, 2022, at 09:00 Pacific Standard Time. Agenda: To elect each of its Class III director nominees; and to ratify the appointment of BDO USA, LLP as an independent registered public accounting firm for 2022. Recent Insider Transactions Derivative • Apr 17
Chairman notifies of intention to sell stock Timothy Jenks intends to sell 17k shares in the next 90 days after lodging an Intent To Sell Form on the 13th of April. If the sale is conducted around the recent share price of US$15.16, it would amount to US$258k. For the year to December 2015, Timothy's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2021, Timothy's direct individual holding has decreased from 552.80k shares to 502.99k. Company insiders have collectively sold US$2.8m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Apr 02
Chairman notifies of intention to sell stock Timothy Jenks intends to sell 16k shares in the next 90 days after lodging an Intent To Sell Form on the 28th of March. If the sale is conducted around the recent share price of US$15.16, it would amount to US$243k. For the year to December 2015, Timothy's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since June 2021, Timothy's direct individual holding has decreased from 552.80k shares to 522.03k. Company insiders have collectively sold US$3.6m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Mar 05
NeoPhotonics Corporation Announces Demonstration of Indium Phosphide Components Capable of 120Gbaud Operation Supporting 800G LR, ZR, and ZR+ Transmission NeoPhotonics Corporation announced that it has used its Indium Phosphide-based Coherent Receiver and Coherent Modulators, coupled with its Ultra-Narrow Linewidth Tunable Lasers or Distributed Feedback Lasers, to demonstrate 120Gbaud operation in applications ranging from 800G LR transmission to 400G long haul transmission. The next-generation DSP baud rate will be based on 120+ Gbaud, and potential applications include 800LR (=10km), 800ZR for DCI (=100km), 800ZR+ for metro-core (=1000km), and 400Gb/s ultra-long-haul transmission. Demonstrations of this level of performance are reported and listed below, showing that corresponding high-speed optoelectronic components are available to match the DSP baud rate and to enable pluggable or embedded modules at these data rates. Using its indium phosphide (InP)-based coherent driver modulator (CDM) and intradyne coherent receiver (ICR) with more than 60GHz-bandwidth, NeoPhotonics has experimentally demonstrated the feasibility of the following transmission systems at 120+ Gbaud: Long-haul: 400Gb/s over 1500km standard single-mode fiber EDFA-only transmission system with a superior required OSNR of 16.7dB at OFEC threshold; Regional/Metro-core: 800Gb/s (with probabilistic shaping) over 1000km standard single-mode fiber EDFA-only transmission system with a superior required OSNR of 24.3dB at OFEC threshold; ZR DCI: 800ZR over a single-span EDFA-based 100km standard single-mode fiber with a superior required OSNR of 25dB at OFEC threshold and a transmitter output power of -6dBm; and Unamplified LR: 800LR over an unamplified 10km link with a 9dB link budget, and 800Gb/s “coherent lite” over an unamplified 1km link with a budget of 5.2dB, both using a low-latency FEC with a BER threshold at 4 x 10-3. The latter used self-homodyne coherent detection so as to significantly simplify the DSP and remove wavelength locking between transmitter and local oscillator. Reported Earnings • Feb 27
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: US$0.78 loss per share (down from US$0.088 loss in FY 2020). Revenue: US$290.3m (down 22% from FY 2020). Net loss: US$40.7m (loss widened US$36.4m from FY 2020). Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) exceeded analyst estimates by 30%. Over the next year, revenue is forecast to grow 32%, compared to a 21% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 24
NeoPhotonics Corporation Announces Sampling of Open ZR+ QSFP-DD Transceivers NeoPhotonics Corporation announced sample availability for its Open ZR+ QSFP-DD transceivers. Based on NeoPhotonics’ world-class optical components, ultra-low noise tunable lasers and proven 400ZR design, the Open ZR+ version of the QSFP-DD uses the Marvell® Deneb™ Coherent DSP (CDSP) to incorporate industry-standard Open Forward Error Correction (OFEC). NeoPhotonics is a contributor to the Open ZR+ Multi-Source Agreement (MSA), which defines interoperability specifications for OpenZR+. By using OFEC, the rOSNR capability of NeoPhotonics transceivers is improved beyond traditional 400ZR CFEC, allowing for multiple span coverage in amplified networks. This may be applied to metro and IP-over-DWDM networks with extended-reach scenarios, with data rate coverage from 100Gb/s to 400Gb/s. In addition, there are a number of applications where the fiber reach may not exceed the OIF ZR specifications, but because of older fiber, patch panels and other impairments, the link loss and impairment budgets could exceed that of a standard 400ZR link. In these cases, NeoPhotonics’ OpenZR+ module can be used for 400G upgrades, where standard solutions are not practical. More background information on coherent communications in pluggable modules can be found in a series of “Trends and Technology” presentations on the NeoPhotonics website. Recent Insider Transactions Derivative • Feb 18
Chairman notifies of intention to sell stock Timothy Jenks intends to sell 17k shares in the next 90 days after lodging an Intent To Sell Form on the 14th of February. If the sale is conducted around the recent share price of US$15.50, it would amount to US$264k. For the year to December 2020, Timothy's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2021, Timothy's direct individual holding has increased from 536.60k shares to 538.08k. Company insiders have collectively sold US$4.1m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Dec 15
Independent Director recently sold US$113k worth of stock On the 9th of December, Yanbing Li sold around 7k shares on-market at roughly US$15.33 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$499k more than they bought in the last 12 months. Recent Insider Transactions Derivative • Dec 11
COO & Senior VP exercised options and sold US$766k worth of stock On the 9th of December, Chi Cheung exercised 75k options at a strike price of around US$5.11 and sold these shares for an average price of US$15.32 per share. This trade did not impact their existing holding. As of today, Chi currently holds no shares directly. Company insiders have collectively sold US$4.3m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Nov 19
Chairman exercised options to buy US$1.5m worth of stock. On the 15th of November, Timothy Jenks exercised options to buy 98k shares at a strike price of around US$5.80, costing a total of US$569k. This transaction amounted to 21% of their direct individual holding at the time of the trade. Since December 2020, Timothy's direct individual holding has decreased from 489.46k shares to 459.20k. Company insiders have collectively sold US$3.4m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Nov 09
Chairman notifies of intention to sell stock Timothy Jenks intends to sell 129k shares in the next 90 days after lodging an Intent To Sell Form on the 4th of November. If the sale is conducted around the recent share price of US$15.04, it would amount to US$1.9m. For the year to December 2020, Timothy's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since December 2020, Timothy's direct individual holding has increased from 489.46k shares to 588.46k. Company insiders have collectively sold US$3.4m more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Nov 06
Price target increased to US$15.20 Up from US$14.10, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of US$15.90. Stock is up 101% over the past year. The company is forecast to post a net loss per share of US$0.58 next year compared to a net loss per share of US$0.088 last year. Reported Earnings • Nov 05
Third quarter 2021 earnings released: US$0.035 loss per share (vs US$0.098 loss in 3Q 2020) The company reported a decent third quarter result with reduced losses and improved control over expenses, although revenues were weaker. Third quarter 2021 results: Revenue: US$83.7m (down 18% from 3Q 2020). Net loss: US$1.86m (loss narrowed 62% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Sep 15
NeoPhotonics Corporation Announces Tunable, High Power FMCW Laser and Semiconductor Optical Amplifier for Coherent Lidar in Autonomous Vehicle and Industrial Sensing Applications NeoPhotonics Corporation announced a new, tunable high power FMCW (frequency-modulated continuous-wave) laser module and high power semiconductor optical amplifier (SOA) chips. Both components are optimized to enable long range automotive lidar and high resolution industrial sensing applications. The FMCW Laser is C-band tunable and can be directly modulated to provide >21dBm (126mW) fiber coupled power and a narrow linewidth FMCW optical signal. The SOA chip is designed for integration with Photonic Integrated Circuit (PIC) lidar engines and provides >23dBm optical output power. These new high output power SOAs and FMCW lasers are based on NeoPhotonics photonic integration platform and improve sensitivity and range, which enables automotive lidar systems to “see” considerably farther than 200 meters, allowing for enhanced safety. Both products operate in the 1550 nm band, which is believed to be more “eye safe”, and are currently being sampled to key customers. In addition, tunable FMCW laser sources enable lidars with configurable operating wavelength thus further enhancing the immunity of coherent lidars to external light interference. Coherent lidar, also called FMCW lidar, uses coherent technology to greatly increase range and sensitivity by measuring the phase of the reflected light instead of relying only on intensity measurements. Coherent technology was pioneered by NeoPhotonics for communications applications and implemented in PICs using NeoPhotonics Indium Phosphide and Silicon Photonics integration platforms. Coherent lidar systems require similar chip-scale manufacturing to reduce costs and enable high volume. Coherent detection, whether for lidar or Communications applications, uses photonic integrated circuits (PICs) to extract phase and amplitude information from the optical signal. Narrow linewidth and low phase noise lasers are required for precise phase measurements and high optical power is required to compensate for optical loss in the Silicon Photonics optical chips and to provide a sufficient return signal from distant objects for efficient detection. NeoPhotonics narrow linewidth laser and SOA can be used together or separately to optimize the lidar module performance. Announcement • Sep 09
NeoPhotonics Corporation Introduces CFP2-DCO Module with 0 dBm Optical Output Power for Use in ROADM Based Metro, Regional and Long Haul Networks NeoPhotonics Corporation announced a new, high output power version of its 400G Multi-Rate CFP2-DCO coherent pluggable transceiver with 0 dBm output power and designed to operate in metro, regional and long haul ROADM based optical networks. This new, high output power module is based on NeoPhotonics vertically integrated Indium Phosphide technology platform, including their ultra-pure Nano tunable laser and Class 40 Coherent Driver Modulator (CDM) and Coherent Receiver (ICR). The module operates at up to 67 Gbaud enabling longer distance transmission and exhibiting superior receiver Optical Signal to Noise Ratio (rOSNR) performance. An important, differentiating feature is that the transmitter integrates an optical amplifier to achieve the 0 dBm output power, while simultaneously achieving what the Company believes is the best transmitter OSNR and out-of-band OSNR performance in the industry. Higher transmitter OSNR enables longer distance transmission or more ROADM stages, while higher out-of-band OSNR ensures less crosstalk for colorless ROADMs. In addition to the high output power and superior OSNR performance, ROADM applications also depend on a CFP2-DCO’s optical filtering tolerance when its signal passes through multiple ROADMs in a network. This is because each ROADM stage applies optical filtering and causes the signal to lose power at the spectral edges. The CFP2-DCO module is well suited for metro ROADM applications to cover a network distribution of up to 16 ROADM spans, encompassing almost all network scenarios. In addition, this module runs at a high spectral efficiency with 75GHz DWDM channel spacing. The same 400G CFP2-DCO module has sufficient performance to cover long-haul applications at 400G and 200G. Recent Insider Transactions • Aug 25
Senior VP recently sold US$222k worth of stock On the 20th of August, Wupen Yuen sold around 27k shares on-market at roughly US$8.20 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$385k more than they bought in the last 12 months. Major Estimate Revision • Aug 10
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from US$286.0m to US$299.5m. Forecast EPS reduced from -US$0.63 to -US$0.69 per share. Semiconductor industry in the US expected to see average net income growth of 41% next year. Consensus price target broadly unchanged at US$14.10. Share price was steady at US$9.14 over the past week. Breakeven Date Change • Aug 05
No longer forecast to breakeven The 11 analysts covering NeoPhotonics no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of US$500.0k in 2022. New consensus forecast suggests the company will make a loss of US$400.0k in 2022. Recent Insider Transactions Derivative • Aug 04
Chairman exercised options and sold US$120k worth of stock On the 30th of July, Timothy Jenks exercised options to acquire 12k shares at no cost and sold these for an average price of US$9.70 per share. This trade did not impact their existing holding. For the year to December 2020, Timothy's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since December 2020, Timothy's direct individual holding has increased from 489.46k shares to 569.19k. Company insiders have collectively sold US$3.0m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Aug 04
Second quarter 2021 earnings released: US$0.34 loss per share (vs US$0.12 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: US$65.0m (down 37% from 2Q 2020). Net loss: US$17.4m (down 405% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions Derivative • Jul 03
Chairman exercised options and sold US$165k worth of stock On the 1st of July, Timothy Jenks exercised options to acquire 16k shares at no cost and sold these for an average price of US$10.21 per share. This trade did not impact their existing holding. For the year to December 2020, Timothy's total compensation was 24% salary and 76% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2020, Timothy's direct individual holding has increased from 424.44k shares to 552.80k. Company insiders have collectively sold US$2.9m more than they bought, via options and on-market transactions in the last 12 months. Executive Departure • Jun 15
Senior Vice President of Global Sales Yang-Chiah Yee has left the company On the 11th of June, Yang-Chiah Yee's tenure as Senior Vice President of Global Sales ended after 3.3 years in the role. As of March 2021, Yang-Chiah still personally held 85.23k shares (US$1.0m worth at the time). Yang-Chiah is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 4.75 years. Announcement • Jun 09
NeoPhotonics Announces General Availability of QSFP-DD and OSFP 400ZR Coherent Modules NeoPhotonics Corporation announced that its QSFP-DD and OSFP 400ZR pluggable modules are in General Availability and shipping to customers. These products utilize NeoPhotonics Silicon Photonics Coherent Optical Subassembly and low power consumption, ultra-narrow linewidth Nano-ITLA tunable laser, combined with the latest generation of 7 nm node DSP (digital signal processing) technology, to provide full 400ZR transmission in a standard data center QSFP-DD or OSFP form factor that can be plugged directly into switches and routers. This greatly simplifies and cost reduces data center interconnect networks by enabling the elimination of a layer of network equipment and a set of short reach client-side transceivers, and paves the way for similar benefits in metro networks. The company's QSFP-DD and OSFP transceivers plug directly into the front panel of a switch or router to provision 400G connections over metro distances in a manner virtually the same as connections inside a single data center. These 400G modules are compliant with the OIF 400ZR Implementation Agreement and are interoperable with other manufacturers' 400ZR modules that utilize a standard forward error correction encoder and decoder. These modules are capable of tuning to and transmitting within 75 GHz or 100GHz spaced wavelength channels, as specified in the OIF agreement, and operate in 400ZR mode for Cloud DCI applications. For longer metro reaches, the modules are designed to support 400ZR+ modes. NeoPhotonics QSFP-DD and OSFP modules have completed reliability qualification and have passed 2000 hours of High Temperature Operating Life as well as other critical tests per Telcordia requirements. The company recently announced that it had used its QSFP-DD coherent pluggable transceiver to transmit at a 400 Gbps data rate over a distance of 800 km in a 75GHz-spaced DWDM system with more than 3.5 dB of OSNR margin in the optical signal while remaining within the power consumption envelope of the QSFP-DD module’s power specification. Recent Insider Transactions Derivative • Jun 09
COO & Senior VP exercised options and sold US$151k worth of stock On the 7th of June, Chi Cheung exercised options to acquire 14k shares at no cost and sold these for an average price of US$10.52 per share. This trade did not impact their existing holding. As of today, Chi currently holds no shares directly. Company insiders have collectively sold US$2.2m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Jun 08
NeoPhotonics Corporation Announces CFP2-DCO Module Transmission of 400 Gbps over 1500 km in a 75 GHz-spaced EDFA Only DWDM System NeoPhotonics Corporation announced that it has used its Multi-Rate CFP2-DCO coherent pluggable transceivers to effectively transmit at a 400 Gbps data rate over a distance of 1,500 km in a 75 GHz-spaced DWDM network. This 1500 km transmission demonstration was carried out on NeoPhotonics Transmission System Testbed using production modules with enhanced firmware and utilized 75 GHz-spaced channels taking the adjacent channel crosstalk-induced penalty into account. The transmission system contains 19 in-line erbium-doped fiber amplifiers (EDFA). To achieve 1,500 km reach and a 400G data rate, the modules were operated at 69 Gbaud using 16 QAM modulation. Probabilistic constellation shaping and a soft-decision forward error correction codec were used to achieve a required OSNR of approximately 20 dB, which is comparable to coherent line card port performance from leading chassis-based coherent systems. The modules each consumed considerably less electrical power than line card solutions operating at comparable data rates and distances. These 400G CFP2-DCO coherent pluggable transceiver modules use NeoPhotonics high performance Indium Phosphide-based coherent components, along with its ultra-narrow linewidth tunable laser. These components are all shipping in high volume into multiple coherent system applications, and include: Class 40 CDM: NeoPhotonics Class 40, polarization multiplexed, quadrature coherent driver modulator (CDM) features a co-packaged InP modulator with a linear, high bandwidth, differential driver, and is designed for low V-Pi, low insertion loss and a high extinction ratio. The compact package is designed to be compliant with the form factor of the OIF Implementation Agreement #OIF-HB-CDM-01.0. Class 40 Micro-ICR: NeoPhotonics Class 40 High Bandwidth Micro-Intradyne Coherent Receiver (Micro-ICR) is designed for >60 GBaud symbol rates. The compact package is designed to be compliant with the OIF Implementation Agreement OIF-DPC-MRX-02.0. Nano-ITLA: NeoPhotonics Nano-ITLA is based on the same proven and reliable high performance external cavity architecture as NeoPhotonics’ industry leading Micro-ITLA and maintains comparable ultra-narrow linewidth, low frequency phase noise and the low power consumption in a compact package approximately one half the size. NeoPhotonics Multi-Rate CFP2-DCO modules are fully qualified. Telcordia testing has been successfully extended to 2000 hours of High Temperature Operating Life (HTOL) testing, showing the high reliability and performance of NeoPhotonics CFP2-DCO platform. Multi-Rate CFP2-DCO modules supporting Metro (64 Gbaud/DP-16 QAM) and Long Haul (64 Gbaud/DP-QPSK) applications are shipping in General Availability. Recent Insider Transactions Derivative • Jun 02
Independent Director notifies of intention to sell stock Bandel Carano intends to sell 7k shares in the next 90 days after lodging an Intent To Sell Form on the 27th of May. If the sale is conducted around the recent share price of US$10.26, it would amount to US$76k. Since June 2020, Bandel has owned 10.85k shares directly. Company insiders have collectively sold US$2.5m more than they bought, via options and on-market transactions in the last 12 months. Announcement • May 14
NeoPhotonics Announces Pilot Shipments of Class 60 Coherent Modulator and Class 60 Coherent Receiver for 800G and Above Coherent Transmission NeoPhotonics Corporation announced Limited Availability of Class 60 versions of its Coherent Driver-Modulator (CDM) and Intradyne Coherent Receiver (Micro-ICR). These components are now shipping in initial quantities to multiple customers and address the next generation of 96 GBaud and above systems. NeoPhotonics Class 60 CDM and Micro-ICR are mechanically compatible with their Class 40 counterparts and provide a natural upgrade path to higher baud rates supporting data rates that include 800G applications. Optical system performance improvements enabled by operation at these increased baud rates enable NeoPhotonics customers to pack more data over longer distances for better economics, lower cost per bit, lower operating expenses and lower power consumption, all under the same hardware envelope as they currently enjoy using NeoPhotonics Class 40 components. This 96 Gbaud product suite continues NeoPhotonics leadership in higher speed-over-distance solutions. Higher symbol rates increase data capacity while maintaining superior optical signal-to-noise ratio (OSNR) and reach performance, thereby enabling the higher speed-over-distance use. These new components are available in compact form factor packages suitable for use in pluggable modules and compact daughter cards. These Class 60 Coherent components extend the higher speed-over-distance performance of existing Class 40 products by increasing the 3 dB bandwidth from 40 GHz to 60 GHz. These NeoPhotonics components work together to enable customers to implement single wavelength data transmission near one Terabit per second over datacenter interconnect (DCI) distances, as well as 400~500Gbs transmission over long haul distances. NeoPhotonics Class 60, polarization-multiplexed, coherent driver modulator (CDM) features a co-packaged InP modulator with four linear, high bandwidth, differential drivers, and is designed for low modulation voltage, or “V-Pi”, low insertion loss and a high extinction ratio. The compact package is compliant with the form factor of the OIF Implementation Agreement #OIF-HB-CDM-01.0. NeoPhotonics Class 60 High Bandwidth Micro-Intradyne Coherent Receiver (Micro-ICR) is designed for 96 GBaud symbol rates, essentially tripling the rate of standard 100G ICRs. The compact package is compliant with the OIF Implementation Agreement OIF-DPC-MRX-02.0. These components are designed to work together with NeoPhotonics’ “Nano” Ultra-Narrow Linewidth external cavity tunable laser, which cuts the size approximately in half compared to current Micro-ITLAs, while featuring industry leading linewidth, low phase noise and low electrical power consumption. Recent Insider Transactions Derivative • May 09
Senior VP of Finance & CFO notifies of intention to sell stock Elizabeth Eby intends to sell 91k shares in the next 90 days after lodging an Intent To Sell Form on the 6th of May. If the sale is conducted around the recent share price of US$8.99, it would amount to US$814k. Since June 2020, Elizabeth's direct individual holding has increased from 256.49k shares to 335.17k. Company insiders have collectively sold US$2.1m more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • May 02
First quarter 2021 earnings released: US$0.21 loss per share (vs US$0.13 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: US$60.9m (down 37% from 1Q 2020). Net loss: US$10.7m (down 270% from profit in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Announcement • Apr 30
Neophotonics Corporation Provides Earning Guidance for the Quarter Ending June 30, 2021 NeoPhotonics Corporation provided earning guidance for the Quarter Ending June 30, 2021. For the quarter, the company expects revenue to be $59 million to $65 million. Loss per share to be between $0.35 to $0.25. Recent Insider Transactions Derivative • Mar 24
Senior Vice President of Global Sales exercised options and sold US$112k worth of stock On the 22nd of March, Yang-Chiah Yee exercised options to acquire 9k shares at no cost and sold these for an average price of US$12.94 per share. This trade did not impact their existing holding. Since June 2020, Yang-Chiah's direct individual holding has increased from 38.00k shares to 62.01k. Company insiders have collectively sold US$1.1m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Mar 13
Board Member notifies of intention to sell stock Ihab Tarazi intends to sell 10k shares in the next 90 days after lodging an Intent To Sell Form on the 9th of March. If the sale is conducted around the recent share price of US$9.27, it would amount to US$93k. Since June 2020, Ihab has owned 24.52k shares directly. Company insiders have collectively sold US$1.0m more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Mar 04
Analysts lower EPS estimates to -US$0.50 The 2021 consensus revenue estimate was lowered from US$308.1m to US$292.3m. The company's losses are expected to worsen with analysts lowering their EPS forecasts from -US$0.38 to -US$0.50 for the same period. The Semiconductor industry in the US is expected to see an average net income growth of 42% next year. The consensus price target increased from US$12.06 to US$13.15. Share price is down by 27% to US$9.08 over the past week. Reported Earnings • Feb 27
Full year 2020 earnings released: US$0.088 loss per share (vs US$0.36 loss in FY 2019) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2020 results: Revenue: US$371.2m (up 4.0% from FY 2019). Net loss: US$4.37m (loss narrowed 74% from FY 2019). Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Price Target Changed • Feb 27
Price target raised to US$13.17 Up from US$12.06, the current price target is an average from 11 analysts. The new target price is 37% above the current share price of US$9.61. As of last close, the stock is up 45% over the past year. Analyst Estimate Surprise Post Earnings • Feb 27
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.2%. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is expected to shrink by 17% compared to a 17% growth forecast for the Semiconductor industry in the US. Announcement • Feb 26
NeoPhotonics Corporation Announces Availability of its Extended Case Temperature QSFP-DD 400G ZR Modules NeoPhotonics Corporation announced availability of its extended case temperature QSFP-DD 400G ZR modules. These 400G ZR modules utilize NeoPhotonics’ industry leading coherent optical components including its Silicon Photonics Coherent Optical Subassembly (COSA) and low power consumption, ultra-narrow linewidth Nano-ITLA tunable laser. Each of these components can be operated over a wide module case temperature range up to 80C. This enables the NeoPhotonics 400G ZR modules to be deployed in extended temperature datacenter environments while reducing cooling requirements and fan power. Price Target Changed • Feb 19
Price target raised to US$11.85 Up from US$11.06, the current price target is an average from 10 analysts. The new target price is close to the current share price of US$12.37. As of last close, the stock is up 65% over the past year. Recent Insider Transactions • Feb 18
COO & Senior VP recently sold US$163k worth of stock On the 11th of February, Chi Cheung sold around 13k shares on-market at roughly US$12.57 per share. This was the largest sale by an insider in the last 3 months. This was Chi's only on-market trade for the last 12 months. Recent Insider Transactions Derivative • Feb 12
Chairman exercised options and sold US$113k worth of stock On the 8th of February, Timothy Jenks exercised options to acquire 9k shares at no cost and sold these for an average price of US$12.53 per share. This trade did not impact their existing holding. For the year to December 2019, Timothy's total compensation was 28% salary and 72% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since March 2020, Timothy's direct individual holding has increased from 456.29k shares to 503.54k. Company insiders have collectively sold US$883k more than they bought, via options and on-market transactions in the last 12 months. Announcement • Feb 10
NeoPhotonics Corporation to Report Q4, 2020 Results on Feb 25, 2021 NeoPhotonics Corporation announced that they will report Q4, 2020 results After-Market on Feb 25, 2021 Is New 90 Day High Low • Feb 10
New 90-day high: US$12.73 The company is up 60% from its price of US$7.95 on 11 November 2020. The American market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 20% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.52 per share. Recent Insider Transactions Derivative • Jan 27
Chairman exercised options and sold US$172k worth of stock On the 22nd of January, Timothy Jenks exercised options to acquire 24.92k shares at no cost and sold these for an average price of US$6.91 per share. This trade did not impact their existing holding. For the year to December 2019, Timothy's total compensation was 28% salary and 72% non-salary (Indicating these sales could comprise a meaningful part of their income for the year). Since March 2020, Timothy's direct individual holding has increased from 456.29k shares to 489.46k. Company insiders have collectively sold US$667k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Jan 22
Independent Director notifies of intention to sell stock Michael Sophie intends to sell roughly 34.06k shares in the next 90 days after lodging an Intent To Sell Form on the 15th of January. If the sale is conducted around the recent share price of US$11.00, it would amount to US$375k. Since March 2020, Michael's direct individual holding has increased from 25.33k shares to 36.18k. Company insiders have collectively sold US$243k more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Jan 17
Price target raised to US$10.39 Up from US$9.56, the current price target is an average from 10 analysts. The new target price is 10% below the current share price of US$11.58. As of last close, the stock is up 33% over the past year. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improved over the past week After last week's 20% share price gain to US$10.95, the stock is trading at a trailing P/E ratio of 58.3x, up from the previous P/E ratio of 48.7x. This compares to an average P/E of 45x in the Semiconductor industry in the US. Total returns to shareholders over the past three years are 73%. Is New 90 Day High Low • Jan 08
New 90-day high: US$9.15 The company is up 35% from its price of US$6.77 on 09 October 2020. The American market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.20 per share. Recent Insider Transactions Derivative • Jan 01
Chairman exercised options to buy US$221k worth of stock. On the 29th of December, Timothy Jenks exercised options to buy 24.33k shares at a strike price of around US$7.59, costing a total of US$185k. This transaction amounted to 5.2% of their direct individual holding at the time of the trade. Since March 2020, Timothy's direct individual holding has increased from 456.29k shares to 465.14k. Company insiders have collectively sold US$307k more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Dec 17
Chairman exercised options to buy US$370k worth of stock. On the 14th of December, Timothy Jenks exercised 43.50k options to receive shares at no cost, then sold around 2.80k of them at US$3.50 each and kept the remainder. Since December 2019, Timothy's direct individual holding has decreased from 466.94k shares to 424.44k. Company insiders have collectively sold US$524k more than they bought, via options and on-market transactions in the last 12 months. Is New 90 Day High Low • Dec 16
New 90-day high: US$9.00 The company is up 43% from its price of US$6.28 on 16 September 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 22% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.20 per share. Announcement • Dec 03
NeoPhotonics Announces New Class 60 Coherent Modulator and Class 60 Coherent Receiver for 100+ Gbaud Symbol Rates Enabling 800G and Above Per Wavelength Applications NeoPhotonics Corporation announced the addition of Class 60 versions of its Coherent Driver-Modulator (CDM) and Intradyne Coherent Receiver (Micro-ICR) to its suite of High Bandwidth Coherent components, addressing the next generation of 100+ Gbaud systems to meet the ongoing growth in demand for bandwidth, especially between cloud data centers. Optical performance improvement due to increased baud rates enables NeoPhotonics customers to pack more data over longer distances for better economics, lower cost per bit, lower operating expenses and lower power consumption, all under the same hardware envelope as they currently enjoy using NeoPhotonics Class 40 components. These new Class 60 Coherent components extend the highest speed over distance performance of our existing Class 50 products by increasing the 3 dB bandwidth from 50 GHz to 60 GHz. The Class 60 suite improves on the currently shipping Class 40 components, and allows increasing symbol rates from the current 64+ Gbaud rate to the higher 100+ Gbaud rates. These NeoPhotonics components work together [1] to enable customers to implement single wavelength data transmission near one Terabit [2] per second over datacenter interconnect (DCI) distances, and long-haul 400~500Gbps transmission. Is New 90 Day High Low • Nov 20
New 90-day high: US$8.07 The company is up 11% from its price of US$7.28 on 21 August 2020. The American market is up 7.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.09 per share. Valuation Update With 7 Day Price Move • Nov 09
Market bids up stock over the past week After last week's 18% share price gain to US$7.90, the stock is trading at a trailing P/E ratio of 42.1x, up from the previous P/E ratio of 35.6x. This compares to an average P/E of 39x in the Semiconductor industry in the US. Total returns to shareholders over the past three years are 23%. Major Estimate Revision • Nov 09
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from US$0.13 to US$0.043. Revenue estimate was approximately flat at US$370.4m. Net income is expected to shrink by 308% next year compared to 28% growth forecast for the Semiconductor industry in the US . The consensus price target increased from US$8.86 to US$9.00. Share price is up 18% to US$7.90 over the past week. Recent Insider Transactions Derivative • Nov 06
Lead Independent Director exercised options to buy US$254k worth of stock. On the 2nd of November, Charles Abbe exercised options to buy 33.96k shares at a strike price of around US$5.54, costing a total of US$188k. This transaction amounted to 35% of their direct individual holding at the time of the trade. Since June 2020, Charles has owned 95.87k shares directly. Company insiders have collectively sold US$898k more than they bought, via options and on-market transactions in the last 12 months. Reported Earnings • Nov 04
Third quarter 2020 earnings released: US$0.098 loss per share The company reported a soft third quarter result with weaker earnings and control over expenses, although revenues were improved. Third quarter 2020 results: Revenue: US$102.4m (up 11% from 3Q 2019). Net loss: US$4.90m (down 316% from profit in 3Q 2019). Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 04
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.5%. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is expected to shrink by 21% compared to a 16% growth forecast for the Semiconductor industry in the US. Announcement • Oct 14
NeoPhotonics Corporation to Report Q3, 2020 Results on Nov 02, 2020 NeoPhotonics Corporation announced that they will report Q3, 2020 results at 5:00 PM, Eastern Standard Time on Nov 02, 2020 Major Estimate Revision • Oct 08
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from US$0.15 to US$0.13. Revenue estimate was approximately flat at US$374.0m. Net income is expected to shrink by 160% next year compared to 26% growth forecast for the Semiconductor industry in the US . The consensus price target increased from US$9.44 to US$9.57. Share price is up 8.7% to US$6.61 over the past week. Is New 90 Day High Low • Sep 19
New 90-day low: US$6.14 The company is down 32% from its price of US$8.98 on 19 June 2020. The American market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$5.02 per share. Major Estimate Revision • Sep 18
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from US$0.24 to US$0.15. Revenue estimate was approximately flat at US$372.3m. Net income is expected to shrink by 184% next year compared to 27% growth forecast for the Semiconductor industry in the US . The consensus price target was lowered from US$9.94 to US$9.44. Share price stayed mostly flat at US$6.18 over the past week. Announcement • Jul 22
NeoPhotonics Corporation to Report Q2, 2020 Results on Aug 04, 2020 NeoPhotonics Corporation announced that they will report Q2, 2020 results at 5:00 PM, Eastern Standard Time on Aug 04, 2020