NPTN - NeoPhotonics Takes A Step Forward And A Step Backward

• NPTN posted big declines in revenue and EPS for the second consecutive quarter, but it also made significant gains once Huawei is excluded.
• Q2 guidance calls for much bigger losses than expected, caused by a combination of factors that NPTN expects will pass soon enough.
• NPTN could become a buyout target, considering its exposure to the optical industry and its low valuation relative to other acquisition targets.
• NPTN has just as many strengths as it has weaknesses, making long and short two equally dicey propositions.

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