Erica Mannion – Investor Relations Tim Jenks – Chairman and Chief Executive Officer JD Fay – Chief Financial Officer

Welcome to the NeoPhotonics 2012 First Quarter Conference Call. This call is being webcast live on the event calendar page of the Investor Relations section of NeoPhotonics' website at www.NeoPhotonics.com. This call is property of NeoPhotonics and any recording, reproduction or transmission of this call without the expressed written consent of NeoPhotonics is strictly prohibited. As a reminder, today's call is being recorded. You may listen to a webcast replay of this call by going to the event calendar page of the Investor Relations section of NeoPhotonics' website. I would now like to turn the call over to Erica Mannion, Investor Relations for NeoPhotonics.

Good afternoon. Thank you for joining us to discuss NeoPhotonics' financial and operating results for the first quarter ended March 31, 2012. With me today are Tim Jenks, Chairman and CEO and JD Fay, CFO. The call today contains forward-looking statements that involve risks and uncertainties. These include statements related to NeoPhotonics' business outlook for the quarter ending March 31, 2012, future periods and industry trends, as well as forward-looking statements that we may make in response to questions. Forward-looking statements are generally indicated by words such as "would", "believe", "should", "expect", "outlook", "estimate," "anticipate", "forecast" and similar expressions that look toward future events or performance. Actual results may differ materially from forward-looking statements. Factors that could cause results to differ materially from these statements include those described in today's press release as well as those detailed in the section entitled "Risk Factors" of the company's Annual Report on Form 10-K most recently filed with the SEC. NeoPhotonics cautions you not to place undue reliance on forward-looking statements, and that these statements speak only as of the date they are made. In addition, non-GAAP financial measures will be discussed today. Please visit the Investor Relations section of the NeoPhotonics Web site for a copy of the company's press release, which contains an explanation of these non-GAAP financial measures as well as a reconciliation to the comparable GAAP measures. Before I turn the call over to Tim, I'd like to mention that NeoPhotonics will present at the B. Riley & Co. 13th Annual Investor Conference in Santa Monica on May 23rd, and at the Cowen 40th Annual technology Media & Telecom Conference in New York City late May. Now, I will turn the call over to Tim Jenks, CEO of NeoPhotonics. Tim...

Thank you for joining us today. I will provide a financial and business update, discuss progress in our business, and then talk about what we are seeing in the industry as a whole. In addition, I'll comment on our recently announced private placement and cooperation in the Russian market with the Russian Corporation of Nanotechnologies. We delivered record first quarter revenue at $54.2 million, significantly above our projected range of $46-$51 million provided in our fourth quarter 2011 conference call. We experienced increased demand across a large part of our business, notably for Speed and Agility products, offset by annual price declines - the result of negotiations completed in the fourth quarter, plus normal seasonality. NeoPhotonics, as a vertically integrated supplier of optical modules and subsystems, is not at all dependent on partners in Thailand for any part of our supply chain. Thus, the flooding in Thailand did not have any direct adverse impact on our ability to produce products. Demand in the first quarter was particularly strong for high speed products, such as, tunable laser products and other products for Coherent networks, each of which are in our Speed and Agility product group. In addition, demand from several of our largest Western customers was relatively strong in the first quarter and above fourth quarter demand as carriers accelerated their investments in high speed coherent networks. In contrast, Asia and in particularly China reflected both seasonality in the winter months, particularly for our Access business, and the fact that the Chinese New Year occurred in the middle of the quarter, making the first quarter there essentially a twelve week quarter. We delivered Non-GAAP gross margin above our projected range. Non-GAAP gross margin was 23.9% in the first quarter, compared to our projected range of 20-22% following the acquisition of Santur…

Thank you, Tim, and good afternoon. For the first quarter of 2012, revenue was $54.2 million, which was approximately 12% higher than the midpoint of our projection and the highest revenue for a first quarter in our history. As a reminder the first quarter is typically our seasonally lowest quarter given the Chinese New Year holidays, the impact of new pricing negotiated toward the end of the fourth quarter, and lower levels of outside deployments during the winter in the northern hemisphere. Compared to the year ago period, our first quarter 2012 revenue increased approximately 8% from $50.0 million in the first quarter of 2011. GAAP gross margin for the first quarter of 2012 was 21.0%. Non-GAAP gross margin for the first quarter of 2012 was 23.9%, above both the top end of our projection and the previous quarter's Non-GAAP gross margin of 23.5%. Non-GAAP gross margin for the first quarter of 2012 excludes amortization of purchased intangibles and other assets relating to the acquisition of Santur of $1.4 million, and stock-based compensation expense of $0.2 million. Loss from continuing operations for the first quarter of 2012 was $11.8 million, as compared to losses from continuing operations of $22.8 million in the fourth quarter and $2.1 million in the first quarter of 2011. Diluted loss per share from continuing operations for the first quarter of 2012 was $0.47. Non-GAAP loss from continuing operations for the first quarter of 2012 was $5.4 million, an improvement compared to the loss of $6.4 million in the fourth quarter of 2011 and compares to break-even in first quarter of 2011. Non-GAAP diluted loss per share from continuing operations for the first quarter of 2012 was $0.22, which was better than the midpoint of our projection, and $0.04 better than the $0.26 loss per share…

Thank you for joining us today. Before we conclude, I would like to thank our shareholders for their time today and their continued interest in our company, and our customers and our employees for their dedication. We look forward to our next update with you regarding our progress.