Why Shares of NeoPhotonics Tumbled Today
Shares of optoelectronic solutions provider NeoPhotonics (NYSE: NPTN) slumped on Thursday after the company announced restructuring actions and preliminary third-quarter results. The company is laying off employees, consolidating its real estate, writing down inventory, and writing down idle assets. Both third-quarter revenue and third-quarter earnings are now expected to come in well below analyst expectations. As of 12:53 p.m. EDT, stock was down 13.3%.
NeoPhotonics is taking these restructuring steps to better align its business with the current demand environment. The company sees no clear indication of increased demand in China in the third quarter, despite recent reports of a major tender for optical components from China Mobile.
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Source: Fool.com
