In Thursday trading, U.S. stock market indexes closed in the green.
Shares of NeoPhotonics Corp. (NPTN, Financial), however, plummeted more than 13% on the back of the company announcing a workforce reduction. Further, the company plans to consolidate its real estate and write-down its inventory and idle assets.
NeoPhotonics said the restructuring is part of its initiative to return to profitability while increasing free cash flow. It is expected to reduce operating expenses by about $2 million by the end of the first quarter next year.
“Lacking a clear indication of increased demand in China in the third quarter, we initiated several operational changes with the goal of expediting our return to profitability," Chairman and CEO Tim Jenks said.
The company also provided preliminary financial results for the third quarter. Revenue is expected to be between $69 milllion and $71 million with a GAAP gross margin between 10% to 13% and GAAP loss per share in the range of 50 cents to 40 cents per share. The non-GAAP gross margin is projected to range from 14% to 17% and the non-GAAP loss per share is expected to range from 35 cents to 27 cents per share.
Year to date, the stock is down more than 50%.
Gains
- Netflix Inc. (NFLX, Financial)
- Constellation Brands Inc. (STZ, Financial)
- Biogen Inc. (BIIB, Financial)
- L Brands Inc. (LB, Financial)
Losses
- Navient Corp. (NAVI, Financial)
- Celgene Corp. (CELG, Financial)
- Harley-Davidson Inc. (HOG, Financial)
- H&R Block Inc. (HRB, Financial)
Disclosure: The author holds no positions in any stocks mentioned.
