Shares of NeoPhotonics (NPTN -0.19%) have jumped today, up by 9% as of 12:40 p.m. EST, after the company reported fourth-quarter earnings. The results were largely in line with expectations.
Revenue in the fourth quarter increased 13% to $103.4 million, which translated into adjusted earnings per share of $0.10. Both top- and bottom-line figures were exactly on target with consensus estimates. Operating cash flow improved to $16 million while adjusted gross margin expanded to 30.9%.
"Our strong revenue and gross margin expansion throughout the year was a result of our leadership in high speed products, serving the largest players in the industry in DCI and the transition of Cloud and hyper-scale data center networks to coherent technologies," CEO Tim Jenks said in a statement.
The tech company, which makes optoelectronics for the telecommunications industry, also provided a rosy outlook. Revenue in the first quarter is expected to be in the range of $83 million to $90 million. The midpoint of that forecast is ahead of the $84.6 million in sales that Wall Street is currently expecting. Adjusted operating expenses are expected to be $22 million to $23 million, which should lead to adjusted earnings per share of $0.00 to $0.10, which is better than the $0.02-per-share net loss that analysts are forecasting.
NeoPhotonics warned that its guidance includes a $10 million hit to revenue associated with the ongoing coronavirus outbreak, which threatens to disrupt the company's supply chain and production capacity.