Stock to Keep Your Eyes on: NeoPhotonics Corporation (NYSE: NPTN)

On Wednesday, Shares of NeoPhotonics Corporation (NYSE: NPTN) gained 0.28% to $3.57. The stock grabbed the investor’s attention and traded 595,341 shares as compared to its average daily volume of 960.15K shares. The stock‚Äôs institutional ownership stands at 72.00%.

NeoPhotonics Corporation (NPTN), a leading designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and data center applications, recently declared financial results for its fourth quarter and fiscal year ended December 31, 2018.

Fourth Quarter Summary:

  • Revenue was $91.10M, up 11% quarter-over-quarter and 19% year-over-year. Gross margin was 24.8%, up from 23.2% in the prior quarter. Non-GAAP Gross margin was 28.6%, up from 24.0% in the prior quarter. Diluted net loss per share was $0.15, an improvement from a net loss of $0.18 per share in the prior quarter. Non-GAAP diluted net income per share was $0.05, an improvement from a net loss of $0.05 in the prior quarter.
  • Cash generated from operations was $10.60M, down from $13.50M in the prior quarter
  • Adjusted EBITDA was $10.50M, up from $6.20M in the prior quarter

Non-GAAP results in the fourth quarter of 2018 exclude $3.60M of stock-based compensation expense, $0.30M of amortization of acquisition-related intangibles, $2.60M for inventory write-downs, $2.20M for a litigation settlement and $1.30M of restructuring charges.

Annual Summary:

  • Revenue in 2018 was $322.50M, contrast to $292.90M in 2017. Gross margin was 20.5%, contrast to 21.0% in 2017. Non-GAAP Gross margin was 22.3%, contrast to 22.5% in 2017. Diluted net loss per share was $0.97, contrast to $1.23 in 2017. Non-GAAP diluted net loss per share was $0.45, contrast to $0.92 in 2017.
  • Cash generated from operations was $19.60M, contrast to negative $32.80M in 2017
  • Adjusted EBITDA was $14.20M, contrast to negative $10.10M in 2017

Non-GAAP results in 2018 exclude $14.10M of stock-based compensation expense, $1.20M of amortization of acquisition-related intangibles, $3.30M of restructuring charges, $2.60M for litigation settlement charges and $2.60M for inventory write-downs.

As of December 31, 2018, cash and cash equivalents, short-term investments and restricted cash, together totaled $76.70M, up $12.00M contrast to September 30, 2018. Restricted cash as of December 31, 2018 was $11.10M, up $5.90M contrast to September 30, 2018.

NPTN has a market value of $165.90M while its EPS was booked as $-0.86 in the last 12 months. The stock has 46.47M shares outstanding. In the profitability analysis, the company has gross profit margin of 21.80% while net profit margin was -11.80%. Beta value of the company was 1.59; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.30.

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