NeoPhotonics Issues Statement Regarding U.S. Department of Commerce Ruling on ZTE
April 17 2018 - 6:03AM
Business Wire
NeoPhotonics Corporation (NYSE: NPTN), a leading designer and
manufacturer of advanced hybrid photonic integrated optoelectronic
modules and subsystems for bandwidth-intensive, high-speed
communications networks, today issued a statement regarding the
United States Department of Commerce Denial Order which prohibits
Chinese telecom equipment maker ZTE Corporation from receiving
items subject to the Export Administration Regulations. This order
effectively bans companies from selling, exporting or re-exporting
components, software and technology to ZTE as a result of ZTE’s
actions in connection with its previous settlement regarding
sanctions violations.
NeoPhotonics direct revenue from ZTE during fiscal year 2017 was
approximately 1% of total revenue. In addition, the Company
provides component products to certain ZTE supply chain partners
which is estimated in 2017 to have been approximately 3% of total
revenue.
Absent the Denial Order, the Company believes it would have
grown revenue with ZTE and its supply chain partners due to both
share awards and new product design wins. As a result, the Company
had expected up to 5% of annualized revenue from these customers
which will not be realized. As of March 31, 2018, the Company held
products in inventory designated for ZTE that were valued at
approximately $1.5 million that will be written off in the first
quarter.
About NeoPhotonics
NeoPhotonics is a leading designer and manufacturer of advanced
hybrid photonic integrated optoelectronic modules and subsystems
for bandwidth-intensive, high-speed communications networks. The
Company’s products enable cost-effective, high-speed data
transmission and efficient allocation of bandwidth over
communications networks. NeoPhotonics maintains headquarters in San
Jose, California and ISO 9001:2000 certified engineering and
manufacturing facilities in Silicon Valley (USA), Japan and China.
For additional information visit www.neophotonics.com.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995
This press release includes statements that qualify as
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, including those related to the company. Readers
are cautioned that these forward-looking statements involve risks
and uncertainties and are only predictions based on the company’s
current expectations, estimates and projections about their
respective industry and business, management’s beliefs, and certain
assumptions made by the company, all of which are subject to change
and which may differ materially from actual future events or
results. The actual company results and the timing of events could
differ materially from those anticipated in such forward-looking
statements as a result of these risks, uncertainties and
assumptions. Certain risks and uncertainties that could cause the
company’s results to differ materially from those expressed or
implied by such forward-looking statements as well as other risks
and uncertainties relating to the company’s business, are described
more fully in the Company’s Quarterly Report on Form 10-K for the
year ended December 31, 2017 filed with the Securities and Exchange
Commission.
© 2018 NeoPhotonics Corporation. All rights reserved.
NeoPhotonics and the red dot logo are trademarks of NeoPhotonics
Corporation. All other marks are the property of their respective
owners.
Source: NeoPhotonics Corporation
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version on businesswire.com: https://www.businesswire.com/news/home/20180417005870/en/
NeoPhotonics CorporationElizabeth EbyChief Financial
Officerbeth.eby@neophotonics.comorSapphire Investor Relations,
LLCErica Mannion, +1-617-542-6180Investor
Relationsir@neophotonics.com
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