Optical components maker NeoPhotonics (NPTN) - Get Report on Thursday cut its second-quarter guidance amid lower revenue expectations resulting from the U.S. ban on business with Huawei Technologies, the Chinese telecom giant.
NeoPhotonics said it now expects an adjusted per-share loss of between 5 cents and 15 cents, and revenue of between $75 million and $80 million vs. previous guidance of a per-share loss of between 4 cents and 6 cents and revenue of between $88 million and $93 million.
Analysts polled by FactSet had been expecting a loss of 3 cents a share on revenue of $87.8 million.
The U.S. Bureau of Industry and Security, part of the U.S. Commerce Department, earlier this month placed Huawei and dozens of its affiliates on an "Entity List" that greatly restricts its ability to buy components from U.S. companies.
"This action creates a material impact on NeoPhotonics and many others in the optical communications market and related industries," CEO Tim Jenks said in a statement. "We are fully complying with the restrictions and have ceased shipments of products subject to U.S. Export Administration Regulations (EAR)."
Shares of NeoPhotonics opened down in early trading on Thursday, falling 1.76% to $3.90 on the New York Stock Exchange. The stock has plunged nearly 50% over the past three months through Wednesday.