NeoPhotonics Corporation (NYSE: NPTN) is engaged as a global semiconductor company, which is a developer and manufacturer of optoelectronic solutions for high-speed digital optical signals for use in the cloud, data transmission and more. Shares of the semiconductor company are rallying 34% through early trading on Thursday, November 4, 2021. Over the past three months, NeoPhotonics Corporation has seen average daily volume of 424,340 shares. However, volume of 8.35 million shares or dollar volume of $128.92 million, has already exchanged hands through early trading on Thursday.
Shares of NeoPhotonics Corporation are gaining after the company announced that it has entered into a definitive agreement to be acquired by Lumentum Holdings, Inc. (NASDAQ: LITE) for $16.00 per share in cash. This gives the transaction a total value of approximately $918 million. The newly-combined company will be even better positioned to capture growth in photonics, as virtual work and growth of Internet of Things and 5G take hold.
“Today’s announcement is an exciting milestone for NeoPhotonics,” said Tim Jenks, NeoPhotonics President, CEO, and Chairman. “The increasing global demand for our ultra-pure light tunable lasers and photonics technologies for speed over distance applications is more apparent than ever, and Lumentum is the ideal partner to serve our customers on a larger scale. Lumentum recognizes the importance of NeoPhotonics’ differentiated photonic technology and products, which are well positioned for accelerated growth in the coming years. The combination’s complementary product portfolio, increased scale, breadth of customer application knowledge, and R&D capabilities will accelerate innovation, better serve customers, and deliver significant and immediate value to our stockholders. Importantly, this transaction is a testament to the hard work and dedication of our employees. I look forward to working with Lumentum leadership to ensure a smooth transition as we begin an exciting new chapter as one company.”
Separately from the acquisition announcement, NeoPhotonics Corporation also reported third quarter financial results. Revenue came in at $83.7 million, which was growth of 29% on a quarter-over-quarter basis, but still down 18% year-over-year. Gross margins improved to 28.4%, up from 15.2% in Q2 2021. Net loss per share came in at $0.04, an improvement from a net loss of $0.34 in the previous quarter. Adjusted EBITDA came in at $6.7 million, up from -$5.4 million during Q2.
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