NeoPhotonics Corporation (NYSE: NPTN), a designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and datacenter applications, has announced preliminary fourth quarter results which reflect recent developments including the end-of-life of certain client transceiver modules, a legal settlement and the signing of a definitive agreement to sell its manufacturing operations in Russia, the company said.
The company has announced the end-of-life of certain client transceiver modules and therefore will discontinue the manufacture and sale of those products after completing last time production runs through May 2019. This will result in approximately USD 3.5 million in charges for inventory and asset write-downs in the fourth quarter of 2018 and accelerated depreciation of approximately USD 3.0 million, to be amortized over the final production during the first and second quarters of 2019. These products contributed approximately USD 10 million of revenue in 2018.
Further, the company has entered into an agreement to settle its lawsuit with Lestina International, Ltd. with a cash payment of USD 2.2 million. The expense will be recognized in the fourth quarter of 2018. As disclosed in the company´s recent 10-Q filings, the lawsuit is pursuant to a purchase commitment for materials related to the product assets sold by one of our foreign subsidiaries to APAT Optoelectronics Components Co., Ltd. in January 2017.
NeoPhotonics is a designer and manufacturer of optoelectronic solutions for the highest speed communications networks in telecom and datacenter applications. 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.