First Round of U.S. Layoffs Due to Huawei Blockade

CircleID CircleID: NeoPhotonics, the Nasdaq-listed producer of various optical communications products, including silicon photonics and photonic integrated circuits (PICs), warned investor this week that the new restrictions on business with China’s Huawei — its largest customer — could have a major impact on future sales. Dave Burstein writes to report: NeoPhotonics has lost $40M in quarterly sales to Huawei, a brutal blow to a company with quarterly sales of ~$100 million. They promise ‘appropriate expense adjustments and structural actions to mitigate the impact of revenue declines.’ That almost definitely means they will fire a lot of people. Huawei makes most of its own optical parts and will probably soon develop an alternative. I suspect Huawei’s purchases were especially high as they stock up to withstand the U.S. blockade.
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