NeoPhotonics Corp. (NYSE: NPTN), a telecommunications equipment manufacturer, recently released a positive quarterly report. Following the release, on August 4 the company’s share price rose 8.54% to $9.66. NPTN expects accelerated growth in the second half of 2021.
During the second quarter last year, NeoPhotonics’ revenue rose by 7% compared to the first quarter, but fell by 37% compared to last year, when demand for cloud computing increased because of COVID-19.
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Net loss was $0.34 as compared to $0.21 last year. Despite the lack of year-over-year growth, the company exceeded Wall Street’s expectations. At the same time, the management of NeoPhotonics Corp. (NPTN) anticipates further growth of financial indicators during the current year.
Positive expectations can be attributed to the popularity of 400ZR fiber-optic communication technologies, which are capable of providing speeds as high as 400 Gbps over long distances. Tests have already been conducted in order to demonstrate the technologies involved in long-distance communication. The first communication system to be used for this standard works through lines of communication.
NPTN provides 400ZR optical transceivers for data centers, networking service providers, and communications service providers. Since the beginning of 2021, NPTN portfolio in this segment has expanded. In this context, the company expects to increase sales in the second half of the year, when the adoption of new technologies speeds up following the completion of the preparatory stage of the implementation of the new standard. Over the previous 12 months, NPTN shares have increased 6.64 percent, but have been down -0.43 percent in the last week. The stock has risen 3.22 percent in the last three months but has lost -19.18 percent in the last six months.