What happened
Shares of NeoPhotonics (NPTN +0.00%) have tanked today, down by 14% as of 12:50 p.m. EDT, after the company reported second-quarter earnings. The results beat expectations but NeoPhotonics' profit guidance fell short.
So what
Revenue in the second quarter was $103.2 million, ahead of the $99.2 million that analysts were looking for. That resulted in adjusted earnings per share of $0.16, also beating the consensus estimate of $0.12 per share in adjusted profits. The optical networking technology company posted adjusted EBITDA of $16.9 million.
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"The second quarter was another strong quarter, with revenue up 26% compared to last year and continued gross margin expansion to 32.5%," CEO Tim Jenks said in a statement. "This was our fourth straight quarter of profitability."
Now what
In terms of guidance, revenue in the third quarter is forecast in the range of $97 million to $105 million, the midpoint of which is above the consensus estimate of $98.2 million. Adjusted gross margin is expected to be 30% to 34%, with operating expenses of $25 million to $26 million. That should all translate into adjusted earnings per share of $0.03 to $0.13, the midpoint of which is below the consensus estimate of $0.11 per share.
"With increasing momentum in 400G and above product design wins across almost all of the major network equipment manufacturers globally, and with increasing momentum in 400ZR opportunities, we remain optimistic about the growth prospects for NeoPhotonics," Jenks added.
