- NeoPhotonics (NYSE:NPTN) joins Lumentum, Qorvo, and Inphi in cutting its outlook due to uncertainties around the U.S. actions against Huawei.
- For Q2, NPTN now expects GAAP revenue of $75M to $80M, down from $88M to $93M.
- Adjusted EPS is trimmed from -$0.06 to $0.04 to -$0.15 to -$0.05. Non-GAAP gross margin falls from 25% to 29% to 22% to 26% and operating expenses adjust from within $0.5M of $24M to the range of $22M to $23M.
- NeoPhotonics says it has fully complied with the blacklist order and stopped shipments and that the action will have a material impact on the company.
- Management quote: “Our objective is now to move rapidly to lower manufacturing and operating expense levels to be cash positive at a lower revenue level."
- NPTN shares are up 1.5% pre-market.