NeoPhotonics Corporation (NYSE:NPTN)
NeoPhotonics Corporation (NPTN) announced a definitive agreement to sell its low speed transceiver business. The selling price is estimated at approximately $26.4 million. NeoPhotonics updated their fourth quarter revenues and now projects it to be in between $105 and $109 million down from prior projection of $109 to $115 million. NeoPhotonics projects fourth quarter earnings to be in between $0.03 and $0.11 per share which is down from previous projection of $0.13 and $0.21 per share.
NeoPhotonics Corporation CEO’s Comments
Tim Jenks, NeoPhotonics Chief Executive Officer, stated, “After a comprehensive evaluation of the alternatives available for the Low Speed Business, we believe this transaction will best benefit our shareholders, customers, and employees. This transaction underscores our objective to focus our efforts on growing high speed optical networking products and solutions based on our advanced hybrid photonic integration technology platform to meet customer demand.” Jenks continued, “We believe the Low Speed Business will benefit from APAT OE’s expertise in Access and PON products while continuing to provide quality products, support and services to customers.” Business Wire
NPTN Technical Analysis
NPTN opened trading yesterday at $12.70 which was up from the previous day’s trading close of $12.60. Shares closed trading yesterday at $12.49 and crashed down after market to $10.43, equivalent to a 16% decrease from the closing price. Taking a look at the daily chart we can see that the last time NPTN traded below these levels we have to go back to November 4th when it traded at lows of $10.22. Taking a closer look at the daily chart we can see that before the spike down NPTN had already been in an overall downward trend dating back to September 19th when it traded at $18.22. NPTN has a float of 31.21 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see NPTN open trading on Tuesday below $11.10 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
NeoPhotonics Corporation develops, manufactures, and sells hybrid photonic integrated optoelectronic products that transmit, receive, and switch high speed digital optical signals for communications networks. It offers high speed products, including transmitter, receiver, and switching products for 100G (gigabits per second) and optical transmission applications over distances of 2 to 2,000 kilometers; and optical components for coherent systems, including narrow linewidth tunable transmit and local oscillator lasers (NLW-ITLA), which generates ultra-pure wavelength, or color for coherent transmission, as well as integrated coherent receivers (ICRs), which decodes the phase and polarization encoded coherent signal. The company also engages in developing pluggable coherent modules that combine NLW-ITLA with ICR and with a coherent modulator; and offers 100G products for the client side and datacenter applications, as well as components, such as externally modulated lasers and high-speed drivers. In addition, it offers network products and solutions, including application-specific passive optical functionalities in modules or sub-system configurations; and products for test and measurement, instrumentation, industrial, and research applications. The company sells its products to network equipment manufacturers through a direct sales force in North America, Europe, Russia, Asia, and internationally. The company was formerly known as NanoGram Corporation and changed its name to NeoPhotonics Corporation in 2002. NeoPhotonics Corporation was founded in 1996 and is headquartered in San Jose, California.