NeoPhotonics (NPTN) posted a blockbuster Q3 earnings report. Its revenues surged by 13% both sequentially as well as on a year-on-year basis and the company finally managed to meaningfully diversify its customer base during the quarter. To top it all, its management issued a rather strong guidance for Q4, with revenues expected to rise by about 6.5% year on year. But while NeoPhotonics may seem like a fantastic investment opportunity on the face of these headline results, its growth story, deep down, is riddled with risks.
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