Q3'20 SUMMARY

NYSE: NPTN

January 2021

Forward Looking Statements and Other Important Cautions

This presentation includes statements that qualify as forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the following topics: future financial results, the Company's market position and industry trends.

Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially. These forward-looking statements include statements about the following topics: future financial results, demand for the Company's high-speed products, and the Company's market position. Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially. Those risks and uncertainties include, but are not limited to, such factors as: the Company's reliance on a small number of customers for a substantial portion of its revenues; market growth in China and other key countries; possible reduction in or volatility of customer orders or delays in shipments of products to customers; timing of customer drawdowns of vendor-managed inventory; the potential for export or other legal restrictions placed on our overseas customers; possible disruptions in the supply chain or in demand for the Company's products due to industry developments including COVID-19; the ability of the Company's vendors and subcontractors to supply or manufacture the Company's products in a timely manner; ability of the Company to meet customer demand; volatility in utilization of manufacturing operations and manufacturing costs; reductions in the Company's rate of new design wins, and/or the rate at which design wins go into production, and the rate of customer acceptance of new product introductions; potential pricing pressure that may arise from changing supply or demand conditions in the industry; the impact of any previous or future acquisitions or divestitures of assets and related product lines; challenges involving integration of acquired businesses and utilization of acquired technology; the discontinuance or end of life of certain other products; market adoption, revenue growth and margins of acquired products; changes in demand for the Company's products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimates used to prepare the Company's financial statements and forecasts; the timely and successful development and market acceptance of new products and upgrades to existing products; the difficulty of predicting future cash needs; the nature of other investment opportunities available to the Company from time to time; the Company's operating cash flow; changes in economic and industry projections; a decline in general conditions in the telecommunications equipment industry or the world economy generally; and the effects of seasonality.

For further discussion of these risks and uncertainties, please refer to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K/A for the year ended December 31, 2019 and the Company's Quarterly Report of Form 10-Q for the three months ended September 30, 2020. All forward-looking statements are made as of the date of this presentation, and the Company disclaims any duty to update such statements.

You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

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 of its press release issued on November 2, 2020 and available in the Investor Relations section of the NeoPhotonics website. 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.

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NeoPhotonics:

World leader in the highest speed optoelectronics - A New Era of Growth

Deep Technology for Highest Speed Cloud Solutions

  • Highest speed coherent suite ramping 64 Gbaud / 600Gbps / 800G
  • World's primary supplier of purest light tunable lasers
  • 400G / 400ZR / 400ZR+ coherent DCO modules enabled by silicon photonics modulator/receiver integration
  • Unique C++ LASERTM for expanded spectrum and capacity

Financial and Operational Scale

  • TTM Revenues as of Q3'20 of ~$406 million
  • 20% YTD growth
  • Next twelve month revenue growth outlook: 40-50 percent,

Market Ecosystem

Optical ICs

Components &

For Network Equipment

Telco Carriers/

Modules

Transport | Metro | Data Center

Cloud and Hyperscale

Semi

Fabs

Line Card | Daughter

Central Office / Webscale

Lasers, Drivers,

Components and

Systems

Card | Transponder

Data Center

Amplifiers, Modulators

Transceivers

Customers

Products

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Our Strategy and Outlook

Our New Era of Growth is Driven by 400G-800Gbps Data Rates and Expanding Use Cases

Our strategy:

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•

•

Rapidly grow 400G and above product revenues from telecom equipment suppliers

Ramp our new 400ZR and 400ZR+ coherent modules

Coherent modules double our served market to include cloud and hyper-scale data center customers

Our outlook:

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400G+ revenues grew 91% in Q1 toQ3 year-over-year to non-Huawei customers; 44% of revenues in Q3.

Continuing growth of 400G+ revenues over the year will drive 40% to 50% growth in 2021.

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Disclaimer

NeoPhotonics Corporation published this content on 12 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 January 2021 17:27:00 UTC