NeoPhotonics Reports Second Quarter 2022 Financial Results

Jul 25th, 2022 20:05 EST

SAN JOSE, Calif.--(BUSINESS WIRE)--NeoPhotonics Corporation (NYSE: NPTN), a leading developer of silicon photonics and advanced hybrid photonic integrated circuit-based lasers, modules and subsystems for bandwidth-intensive, high-speed communications networks, today announced financial results for its second quarter of 2022.

“Our business remains on a strong growth path with revenue of $95 million, 46% above the same quarter last year and also up 46% year-to-date. This was despite ongoing supply chain limitations which had an adverse impact on revenue of approximately $10 million. Our 400G and above products grew approximately 105% year-over-year, and now comprise 64% of total revenue. Our revenue from 400ZR coherent DCO module products to datacenter customers is now in low millions per quarter,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “In addition to 400ZR, we are ramping our 96 Gbaud components and sampling 130 Gbaud for even higher data rate applications. These new component products, together with our ramping 400ZR and CFP2 400G module products, give us confidence in continued growth for the quarters ahead, despite the expected challenges with IC chip supply shortages.”

Mr. Jenks continued, “I would like to thank NeoPhotonics employees for their continued commitment, which has built the Company’s strong technology leadership for high speed over distance applications and has resulted in the Company’s strong performance in the second quarter of 2022.”

Mr. Jenks concluded, “The Lumentum transaction, announced last November, remains on track having been approved by our shareholders and received antitrust clearance from US regulators. We look forward to securing regulatory approval in China and closing the transaction. Our strong quarter with more than 46% year over year revenue growth, GAAP operating profit and significant growth from western customers, reflects our success in pivoting our business following the loss of revenue in 2020 due to Department of Commerce restrictions on certain Chinese customers.”

Second Quarter 2022 Summary

  • Revenue of $95.0 million was up 46% year-over-year on growth in 400G and above capable products and up 6% quarter-over-quarter. Supply chain shortages negatively impacted revenue by approximately $10 million in the second quarter. Demand remains strong and chip supply continues to constrain revenue.
  • Three customers were greater than 10% of our revenue for the three months ended June 30, 2022 and our top five customers accounted for 83% of our revenue in the quarter versus 77% in the same quarter last year.
  • Gross margin was 34.8%, up nearly 20 percentage points year-over-year on improved factory utilization and up 4.2 percentage points from the prior quarter on meaningful yield improvements.
  • Non-GAAP gross margin was 35.2% up from 21.7% in the same quarter last year and 31.2% in the prior quarter.
  • Operating expense was $26.7 million, down $3.4 million from Q1’22 on a gain on the sale of our Fremont wafer fab and lower costs related to the sale.
  • Non-GAAP operating expense of $24.1 million, down $0.9 million from Q1’22 on lower R&D materials & operating costs of the Fremont site.
  • Operating income was $6.4 million, compared to a loss of $2.8 million in Q1’22 and a loss of $16.3 million in Q2’21, driven by the significant improvement in revenue and gross margin.
  • Non-GAAP operating income was $9.4 million, compared to a loss of $10.3 million in Q2’21 and a profit of $2.8 million in the prior quarter, a notable turnaround in results.
  • Foreign Exchange was a gain of $6.0 million on the appreciation of the U.S. dollar. As a reminder, the foreign exchange impact is largely related to the revaluation of U.S. dollar assets on our overseas books which are stated in their local currency. Beginning this quarter, we will exclude unrealized foreign exchange from our Non-GAAP results, to better focus on our operational results.
  • Net earnings per share was $0.17, compared to net loss of $0.34 a year ago and a loss of $0.06 per share in the prior quarter.
  • Non-GAAP net income per share was $0.15, compared to a Non-GAAP loss per share of $0.22 a year ago and a Non-GAAP earnings per share of $0.04 in the prior quarter. Excluding the impact of unrealized foreign exchange in the prior quarters, earnings per share was a loss of $0.22 in Q2’21 and an income of $0.05 in Q1’22.
  • Adjusted EBITDA was $13.2 million, up from $7.8 million in the prior quarter excluding the impact of unrealized foreign exchange.
  • Net Inventory grew $5.8 million from Q1’22, to $66 million, as we increased 400ZR inventories to a total of $20 million to ensure ongoing module supply.
  • As of June 30, 2022, cash and cash equivalents, short-term investments and restricted cash totaled $105 million, down approximately $2.0 million from Q1’22. Capital Expenditure was $3 million.

Non-GAAP results in the second quarter of 2022 exclude gains of $5.4 million for unrealized foreign exchange, $1.9 million on the sale of assets, expenses of $2.6 million for stock-based compensation, $2.0 million of merger retention and other acquisition related charges, income tax effect of $1.4 million for Non-GAAP items and $0.2 million of other charges. A reconciliation of the non-GAAP and Adjusted EBITDA financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release.

NeoPhotonics Product Milestone Achievements

  • Products capable of use for 400G and above applications were 64% of revenue in Q2 2022.
  • Continued to ramp production of our 400ZR small form factor coherent transceiver modules, reaching low single digit millions in revenue.
  • Shipped first samples of 130 Gbaud Coherent Receivers and Modulators for next generation 800G and 1.6T links.
  • Conducted webinar outlining the application of NeoPhotonics coherent products and technology to Lidar for Autonomous Vehicles and other remote sensing applications.

Supply Chain Impacts

Second quarter revenue was approximately $10 million lower than we project it would have been without supply chain constraints. Supply chain impacts in the quarter were primarily shortages of analog and power semiconductors. The Company expects such impacts to continue through 2022.

Non-GAAP and Adjusted EBITDA Measures vs. GAAP Financial Measures

The Company’s non-GAAP and Adjusted EBITDA measures exclude certain GAAP financial measures. A reconciliation of the non-GAAP and Adjusted EBITDA financial measures to the most directly comparable GAAP financial measures is provided in the financial schedules portion at the end of this press release. These non-GAAP financial measures differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. NeoPhotonics believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

Conference Call

The Company will not host a conference call regarding the Q2 2022 results.

About NeoPhotonics

NeoPhotonics is a leading developer and manufacturer of lasers and optoelectronic solutions that transmit, receive and switch high-speed digital optical signals for Cloud and hyper-scale data center internet content provider and telecom networks. The Company’s products enable cost-effective, high-speed over distance data transmission and efficient allocation of bandwidth in optical networks. NeoPhotonics maintains headquarters in San Jose, California and ISO 9001:2015 certified engineering and manufacturing facilities in Silicon Valley (USA), Japan and China. For additional information visit www.neophotonics.com.

Notice Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events, including the timing of the proposed transaction, information related to the proposed transaction, and supply chain constraints. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern the proposed transaction and our expectations, strategy, plans or intentions regarding it. Forward-looking statements in this communication include, but are not limited to, (i) expectations regarding the timing, completion and expected benefits of the proposed transaction, (ii) expected continued supply chain impacts, plans, objectives and intentions with respect to future operations, customers and the market, and (iii) future growth and profitability. Expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the risk that the transaction may not be completed in a timely manner or at all; the ability to secure additional regulatory approvals on the terms expected in a timely manner or at all; the effect of the announcement or pendency of the transaction on our business relationships, results of operations and business generally; ability to win customer awards; risks that the proposed transaction disrupts current plans and operations; the risk of litigation and/or regulatory actions related to the proposed transaction; disruptions and shortages in supply chains; impact of inflation on our business; potential impacts of the Covid-19 pandemic; changing supply and demand conditions in the industry; and general market, political, economic, and business conditions. The forward-looking statements contained in this communication are also subject to other risks and uncertainties, including those more fully described in filings with the Securities and Exchange Commission ("SEC"), including reports filed on Form 10-K, 10-Q and 8-K and in other filings made by NeoPhotonics with the SEC from time to time and available at www.sec.gov. These forward-looking statements are based on current expectations, and are based on NeoPhotonics’ current expectations which is subject to change.

The parties undertake no obligation to update the information contained in this communication or any other forward-looking statement.

©2022 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.

NeoPhotonics Corporation

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 

 

As of

 

Jun. 30, 2022

Dec. 31, 2021

 

 

 

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

77,079

 

$

77,833

 

Short-term investments

 

27,720

 

 

27,675

 

Restricted cash

 

38

 

 

87

 

Accounts receivable, net

 

68,460

 

 

55,324

 

Inventories

 

65,510

 

 

52,896

 

Prepaid expenses and other current assets

 

18,927

 

 

16,246

 

Total current assets

 

257,734

 

 

230,061

 

Property, plant and equipment, net

 

49,191

 

 

54,190

 

Operating lease right-of-use assets

 

12,091

 

 

13,201

 

Purchased intangible assets, net

 

787

 

 

844

 

Goodwill

 

1,115

 

 

1,115

 

Other long-term assets

 

5,636

 

 

6,156

 

Total assets

$

326,554

 

$

305,567

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$

69,685

 

$

58,125

 

Short-term borrowing, net

 

 

 

14,914

 

Current portion of long-term debt

 

2,449

 

 

2,928

 

Accrued and other current liabilities

 

29,327

 

 

30,008

 

Total current liabilities

 

101,461

 

 

105,975

 

Long-term debt, net of current portion

 

23,945

 

 

25,753

 

Related party long-term debt

 

29,954

 

 

 

Operating lease liabilities, noncurrent

 

12,107

 

 

13,441

 

Other noncurrent liabilities

 

6,813

 

 

7,437

 

Total liabilities

 

174,280

 

 

152,606

 

 

 

 

Stockholders’ equity:

 

 

Common stock

 

134

 

 

133

 

Additional paid-in capital

 

614,553

 

 

610,085

 

Accumulated other comprehensive income (loss)

 

(8,782

)

 

2,376

 

Accumulated deficit

 

(453,631

)

 

(459,633

)

Total stockholders’ equity

 

152,274

 

 

152,961

 

Total liabilities and stockholders’ equity

$

326,554

 

$

305,567

 

NeoPhotonics Corporation

Condensed Consolidated Statements of Operations (Unaudited)

(In thousands, except percentages and per share data)

 

 

Three Months Ended

 

Six Months Ended

 

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Jun. 30, 2021

 

Jun. 30, 2022

 

Jun. 30, 2021

Revenue

 

$

95,006

 

 

$

89,268

 

 

$

65,010

 

 

$

184,274

 

 

$

125,935

 

Cost of goods sold (1)

 

 

61,935

 

 

 

61,979

 

 

 

55,135

 

 

 

123,914

 

 

 

102,721

 

Gross profit

 

 

33,071

 

 

 

27,289

 

 

 

9,875

 

 

 

60,360

 

 

 

23,214

 

Gross margin

 

 

34.8

%

 

 

30.6

%

 

 

15.2

%

 

 

32.8

%

 

 

18.4

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

Research and development (1)

 

 

14,736

 

 

 

15,098

 

 

 

15,410

 

 

 

29,834

 

 

 

28,508

 

Sales and marketing (1)

 

 

3,742

 

 

 

3,686

 

 

 

3,362

 

 

 

7,428

 

 

 

7,227

 

General and administrative (1) (2)

 

 

9,228

 

 

 

9,794

 

 

 

7,398

 

 

 

19,022

 

 

 

14,692

 

Acquisition and asset sale related costs (recoveries)

 

 

638

 

 

 

905

 

 

 

(36

)

 

 

1,543

 

 

 

127

 

Restructuring charges

 

 

 

 

 

 

 

 

22

 

 

 

 

 

 

22

 

Asset impairment charges

 

 

30

 

 

 

413

 

 

 

 

 

 

443

 

 

 

 

Facility shutdown related costs

 

 

209

 

 

 

300

 

 

 

 

 

 

509

 

 

 

 

Litigation Settlement

 

 

(12

)

 

 

49

 

 

 

 

 

 

37

 

 

 

 

Gain on asset sale

 

 

(1,866

)

 

 

(114

)

 

 

 

 

 

(1,980

)

 

 

 

Total operating expenses

 

 

26,705

 

 

 

30,131

 

 

 

26,156

 

 

 

56,836

 

 

 

50,576

 

Income (loss) from operations

 

 

6,366

 

 

 

(2,842

)

 

 

(16,281

)

 

 

3,524

 

 

 

(27,362

)

Interest income

 

 

147

 

 

 

71

 

 

 

140

 

 

 

218

 

 

 

245

 

Interest expense

 

 

(510

)

 

 

(355

)

 

 

(220

)

 

 

(865

)

 

 

(447

)

Other income (expense), net

 

 

5,823

 

 

 

395

 

 

 

(880

)

 

 

6,218

 

 

 

263

 

Total interest and other income (expense), net

 

 

5,460

 

 

 

111

 

 

 

(960

)

 

 

5,571

 

 

 

61

 

Income (loss) before income taxes

 

 

11,826

 

 

 

(2,731

)

 

 

(17,241

)

 

 

9,095

 

 

 

(27,301

)

Income tax provision

 

 

(2,521

)

 

 

(572

)

 

 

(191

)

 

 

(3,093

)

 

 

(823

)

Net income (loss)

 

$

9,305

 

 

$

(3,303

)

 

$

(17,432

)

 

$

6,002

 

 

$

(28,124

)

Basic net income (loss) per share

 

$

0.17

 

 

$

(0.06

)

 

$

(0.34

)

 

$

0.11

 

 

$

(0.55

)

Diluted net income (loss) per share

 

$

0.17

 

 

$

(0.06

)

 

$

(0.34

)

 

$

0.11

 

 

$

(0.55

)

Weighted average shares used to compute basic net income (loss) per share

 

 

53,488

 

 

 

53,146

 

 

 

51,634

 

 

 

53,318

 

 

 

51,178

 

Weighted average shares used to compute diluted net income (loss) per share

 

 

56,095

 

 

 

53,146

 

 

 

51,634

 

 

 

55,999

 

 

 

51,178

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows for the periods presented:

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

$

404

 

 

$

525

 

 

$

572

 

 

$

929

 

 

$

1,120

 

Research and development

 

 

794

 

 

 

774

 

 

 

744

 

 

 

1,568

 

 

 

1,606

 

Sales and marketing

 

 

400

 

 

 

385

 

 

 

261

 

 

 

785

 

 

 

815

 

General and administrative

 

 

1,011

 

 

 

931

 

 

 

763

 

 

 

1,942

 

 

 

2,076

 

Total stock-based compensation expense

 

$

2,609

 

 

$

2,615

 

 

$

2,340

 

 

$

5,224

 

 

$

5,617

 

 

(2) Includes $1,359 and $2,810 of retention costs related to the acquisition for the three and six months ended June 30, 2022, respectively.

NeoPhotonics Corporation

Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)

(In thousands, except percentages and per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Jun. 30, 2021

 

Jun. 30, 2022

 

Jun. 30, 2021

NON-GAAP GROSS PROFIT:

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

33,071

 

 

$

27,289

 

 

$

9,875

 

 

$

60,360

 

 

$

23,214

 

Stock-based compensation expense

 

 

404

 

 

 

525

 

 

 

572

 

 

 

929

 

 

 

1,120

 

Amortization of purchased intangible assets

 

 

7

 

 

 

8

 

 

 

153

 

 

 

15

 

 

 

338

 

Depreciation of acquisition-related fixed asset step-up

 

 

3

 

 

 

3

 

 

 

3

 

 

 

6

 

 

 

(3

)

End-of-life related inventory write-down

 

 

 

 

 

 

 

 

3,257

 

 

 

 

 

 

2,680

 

Accelerated depreciation

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

331

 

Restructuring charges (recoveries)

 

 

 

 

 

(18

)

 

 

113

 

 

 

(18

)

 

 

113

 

Non-GAAP gross profit

 

$

33,485

 

 

$

27,807

 

 

$

14,130

 

 

$

61,292

 

 

$

27,793

 

Non-GAAP gross margin as a % of revenue

 

 

35.2

%

 

 

31.2

%

 

 

21.7

%

 

 

33.3

%

 

 

22.1

%

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP TOTAL OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

GAAP total operating expenses

 

$

26,705

 

 

$

30,131

 

 

$

26,156

 

 

$

56,836

 

 

$

50,576

 

Stock-based compensation expense

 

 

(2,205

)

 

 

(2,090

)

 

 

(1,768

)

 

 

(4,295

)

 

 

(4,497

)

Depreciation of acquisition-related fixed asset step-up

 

 

(12

)

 

 

(14

)

 

 

(21

)

 

 

(26

)

 

 

(46

)

Acquisition and asset sale related costs

 

 

(638

)

 

 

(905

)

 

 

36

 

 

 

(1,543

)

 

 

(127

)

Retention costs related to acquisition

 

 

(1,359

)

 

 

(1,451

)

 

 

 

 

 

(2,810

)

 

 

 

Restructuring charges

 

 

 

 

 

 

 

 

(22

)

 

 

 

 

 

(22

)

Asset impairment charges

 

 

(30

)

 

 

(413

)

 

 

 

 

 

(443

)

 

 

 

Facility shutdown related costs

 

 

(209

)

 

 

(300

)

 

 

 

 

 

(509

)

 

 

 

Litigation settlement

 

 

12

 

 

 

(49

)

 

 

 

 

 

(37

)

 

 

 

Gain on asset sale

 

 

1,866

 

 

 

114

 

 

 

 

 

 

1,980

 

 

 

 

Non-GAAP total operating expenses

 

$

24,130

 

 

$

25,023

 

 

$

24,381

 

 

$

49,153

 

 

$

45,884

 

Non-GAAP total operating expenses as a % of revenue

 

 

25.4

%

 

 

28.0

%

 

 

37.5

%

 

 

26.7

%

 

 

36.4

%

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP OPERATING INCOME (LOSS):

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

$

6,366

 

 

$

(2,842

)

 

$

(16,281

)

 

$

3,524

 

 

$

(27,362

)

Stock-based compensation expense

 

 

2,609

 

 

 

2,615

 

 

 

2,340

 

 

 

5,224

 

 

 

5,617

 

Amortization of purchased intangible assets

 

 

7

 

 

 

8

 

 

 

153

 

 

 

15

 

 

 

338

 

Depreciation of acquisition-related fixed asset step-up

 

 

15

 

 

 

17

 

 

 

24

 

 

 

32

 

 

 

43

 

Acquisition and asset sale related costs (recoveries)

 

 

638

 

 

 

905

 

 

 

(36

)

 

 

1,543

 

 

 

127

 

Retention costs related to acquisition

 

 

1,359

 

 

 

1,451

 

 

 

 

 

 

2,810

 

 

 

 

End-of-life related inventory write-down

 

 

 

 

 

 

 

 

3,257

 

 

 

 

 

 

2,680

 

Accelerated depreciation

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

331

 

Restructuring charges (recoveries)

 

 

 

 

 

(18

)

 

 

135

 

 

 

(18

)

 

 

135

 

Asset impairment charges

 

 

30

 

 

 

413

 

 

 

 

 

 

443

 

 

 

 

Facility shutdown related costs

 

 

209

 

 

 

300

 

 

 

 

 

 

509

 

 

 

 

Litigation settlement

 

 

(12

)

 

 

49

 

 

 

 

 

 

37

 

 

 

 

Gain on asset sale

 

 

(1,866

)

 

 

(114

)

 

 

 

 

 

(1,980

)

 

 

 

Non-GAAP income (loss) from operations

 

$

9,355

 

 

$

2,784

 

 

$

(10,251

)

 

$

12,139

 

 

$

(18,091

)

Non-GAAP operating margin as a % of revenue

 

 

9.8

%

 

 

3.1

%

 

 

(15.8

)%

 

 

6.6

%

 

 

(14.4

)%

NeoPhotonics Corporation

Reconciliation of Condensed Consolidated GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited) (Continued)

(In thousands, except percentages and per share data)

 

 

Three Months Ended

 

Six Months Ended

 

 

Jun. 30, 2022

 

Mar. 31, 2022

 

Jun. 30, 2021

 

Jun. 30, 2022

 

Jun. 30, 2021

NON-GAAP NET INCOME (LOSS):

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

9,305

 

 

$

(3,303

)

 

$

(17,433

)

 

$

6,002

 

 

$

(28,124

)

Stock-based compensation expense

 

 

2,609

 

 

 

2,615

 

 

 

2,340

 

 

 

5,224

 

 

 

5,617

 

Amortization of purchased intangible assets

 

 

7

 

 

 

8

 

 

 

153

 

 

 

15

 

 

 

338

 

Depreciation of acquisition-related fixed asset step-up

 

 

15

 

 

 

17

 

 

 

24

 

 

 

32

 

 

 

43

 

Acquisition and asset sale related costs (recoveries)

 

 

638

 

 

 

905

 

 

 

(36

)

 

 

1,543

 

 

 

127

 

Retention costs related to acquisition

 

 

1,359

 

 

 

1,451

 

 

 

 

 

 

2,810

 

 

 

 

End-of-life related inventory write-down

 

 

 

 

 

 

 

 

3,257

 

 

 

 

 

 

2,680

 

Accelerated depreciation

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

331

 

Restructuring charges (recoveries)

 

 

 

 

 

(18

)

 

 

135

 

 

 

(18

)

 

 

135

 

Asset impairment charges

 

 

30

 

 

 

413

 

 

 

 

 

 

443

 

 

 

 

Facility shutdown related costs

 

 

209

 

 

 

300

 

 

 

 

 

 

509

 

 

 

 

Litigation settlement

 

 

(12

)

 

 

49

 

 

 

 

 

 

37

 

 

 

 

Gain on asset sale

 

 

(1,866

)

 

 

(114

)

 

 

 

 

 

(1,980

)

 

 

 

Unrealized foreign exchange (gain) loss, net (3)

 

 

(5,386

)

 

 

555

 

 

 

(153

)

 

 

(4,831

)

 

 

(3,672

)

Income tax effect of Non-GAAP adjustments

 

 

1,439

 

 

 

(83

)

 

 

22

 

 

 

1,356

 

 

 

976

 

Non-GAAP net income (loss)

 

$

8,347

 

 

$

2,795

 

 

$

(11,534

)

 

$

11,142

 

 

$

(21,549

)

Non-GAAP net income (loss) as a % of revenue

 

 

8.8

%

 

 

3.1

%

 

 

(17.7

)%

 

 

6.0

%

 

 

(17.1

)%

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA:

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

9,305

 

 

$

(3,303

)

 

$

(17,433

)

 

$

6,002

 

 

$

(28,124

)

Stock-based compensation expense

 

 

2,609

 

 

 

2,615

 

 

 

2,340

 

 

 

5,224

 

 

 

5,617

 

Amortization of purchased intangible assets

 

 

7

 

 

 

8

 

 

 

153

 

 

 

15

 

 

 

338

 

Depreciation of acquisition-related fixed asset step-up

 

 

15

 

 

 

17

 

 

 

24

 

 

 

32

 

 

 

43

 

Acquisition and asset sale related costs (recoveries)

 

 

638

 

 

 

905

 

 

 

(36

)

 

 

1,543

 

 

 

127

 

Retention costs related to acquisition

 

 

1,359

 

 

 

1,451

 

 

 

 

 

 

2,810

 

 

 

 

End-of-life related inventory write-down

 

 

 

 

 

 

 

 

3,257

 

 

 

 

 

 

2,680

 

Accelerated depreciation

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

331

 

Restructuring charges (recoveries)

 

 

 

 

 

(18

)

 

 

135

 

 

 

(18

)

 

 

135

 

Asset impairment charges

 

 

30

 

 

 

413

 

 

 

 

 

 

443

 

 

 

 

Facility shutdown related costs

 

 

209

 

 

 

300

 

 

 

 

 

 

509

 

 

 

 

Litigation settlement

 

 

(12

)

 

 

49

 

 

 

 

 

 

37

 

 

 

 

Gain on asset sale

 

 

(1,866

)

 

 

(114

)

 

 

 

 

 

(1,980

)

 

 

 

Unrealized foreign exchange (gain) loss, net (3)

 

 

(5,386

)

 

 

555

 

 

 

(153

)

 

 

(4,831

)

 

 

(3,672

)

Interest expense, net

 

 

363

 

 

 

284

 

 

 

80

 

 

 

647

 

 

 

202

 

Income tax provision

 

 

2,521

 

 

 

572

 

 

 

191

 

 

 

3,093

 

 

 

823

 

Depreciation expense

 

 

3,438

 

 

 

4,035

 

 

 

5,771

 

 

 

7,473

 

 

 

11,774

 

Adjusted EBITDA

 

$

13,230

 

 

$

7,769

 

 

$

(5,514

)

 

$

20,999

 

 

$

(9,726

)

Adjusted EBITDA as a % of revenue

 

 

13.9

%

 

 

8.7

%

 

 

(8.5

)%

 

 

11.4

%

 

 

(7.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

 

GAAP basic net income (loss) per share

 

$

0.17

 

 

$

(0.06

)

 

$

(0.34

)

 

$

0.11

 

 

$

(0.55

)

GAAP diluted net income (loss) per share

 

$

0.17

 

 

$

(0.06

)

 

$

(0.34

)

 

$

0.11

 

 

$

(0.55

)

Non-GAAP basic net income (loss) per share

 

$

0.16

 

 

$

0.05

 

 

$

(0.22

)

 

$

0.21

 

 

$

(0.42

)

Non-GAAP diluted net income (loss) per share

 

$

0.15

 

 

$

0.05

 

 

$

(0.22

)

 

$

0.19

 

 

$

(0.42

)

 

 

 

 

 

 

 

 

 

 

 

SHARES USED TO COMPUTE GAAP AND NON-GAAP BASIC NET INCOME (LOSS) PER SHARE

 

 

53,488

 

 

 

53,146

 

 

 

51,634

 

 

 

53,518

 

 

 

51,178

 

SHARES USED TO COMPUTE GAAP DILUTED NET INCOME (LOSS) PER SHARE

 

 

56,095

 

 

 

53,146

 

 

 

51,634

 

 

 

55,999

 

 

 

51,178

 

SHARES USED TO COMPUTE NON-GAAP DILUTED NET INCOME (LOSS) PER SHARE

 

 

57,307

 

 

 

57,344

 

 

 

51,634

 

 

 

57,327

 

 

 

51,178

 

 

(3) The non-GAAP financial measures for the three and six months ended June 30, 2021, and the three months ended March 31, 2022, have been adjusted to conform to the current period presentation by removing unrealized foreign exchange (gain) loss, net.

 

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