NeoPhotonics Corporation (NPTN) Stock Surged 33.85% Today, Here’s Why     

NeoPhotonics Corporation (NPTN) stock soared 33.85% in the current-market trading session at the price of $15.42 after announcing its financial results for the third quarter ended on 30th September 2021.  

NPTN is a developer and producer of lasers and optoelectronic solutions that switch, transmit, and receive high-speed optical signals for Cloud and other telecom networks. It develops advanced hybrid photonic and silicon photonic integrated circuit-based lasers, subsystems, and modules for high-speed and bandwidth-intensive networks. 

NPTN Third Quarter 2021 Financial Results 

On 4th November 2021, NPTN published its financial results for the third quarter ended 30th September 2021 and provided corporate updates. 

Management Comments  

Chief Executive Officer of NPTN, Tim Jenks, remarked that they had achieved substantial growth in the third quarter of 2021. The company calculated an operating income (loss) of $1.3 million, a strong recovery over their prior quarter. Their stimulated growth had driven from the products for 400G and other applications, he added.  

NPTN Financial Highlights  

NPTN reported revenue of $83.7 million for the third quarter ended 30th September 2021. It represents a quarter-over-quarter gain of 29% and a year-over-year drop of 18%. The gross margin was 28.4% for the third quarter of 2021, a 15.2% gain compared to the previous quarter. NPTN reported a net loss per share of $0.04 for the third quarter ended 30th September 2021. A net loss per share was $0.34 in the second quarter of 2021.  

For the third quarter ended 30th September 2021, operating income (loss) was $1.3 million. NPTN reported operating income (loss) of $16.3 million in the second quarter of 2021. Adjusted EBITDA was $6.7 million for the third quarter of 2021, up ($5.4) million compared to the previous quarter. The company dragged down approximately $15 million of debt from one of its China credit facilities. 

As of 30th September 2021, cash, cash equivalents, and restricted cash totaled $105 million. Free Cash Flow totaled ($3.6) million on 30th September 2021. Cash from operations was $0.1 million for the third quarter of 2021. NPTN reported capital purchases of $3.7 million for the third quarter ended 30th September 2021.