View of Trends and Technology

NYSE: NPTN

May 2020

2

Forward Looking Statements and Other Important Cautions

This presentation includes statements that qualify as forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements aboutthe following topics: future financial results, the Company’s market position and industry trends.

Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially. These forward-looking statements include statements about the followingtopics: future financial results, demand for the Company’s high-speed products, and the Company’s market position. Forward-looking statements are subject to certain risks and uncertainties that couldcause the actual results to differ materially. Those risks and uncertainties include, but are not limited to, such factors as: the Company’s reliance on a small number of customers for a substantial portionof its revenues; market growth in China and other key countries; possible reduction in or volatility of customer orders or delays in shipments of products to customers; timing of customer drawdowns ofvendor-managed inventory; potential governmental trade actions; possible disruptions in the supply chain or in demand for the Company’s products due to industry developments; the ability of theCompany's vendors and subcontractors to supply or manufacture the Company's products in a timely manner; ability of the Company to meet customer demand; volatility in utilization of manufacturingoperations and manufacturing costs; reductions in the Company’s rate of new design wins, and/or the rate at which design wins go into production, and the rate of customer acceptance of new productintroductions; potential pricing pressure that may arise from changing supply or demand conditions in the industry; the impact of any previous or future acquisitions or divestitures of assets and relatedproduct lines; challenges involving integration of acquired businesses and utilization of acquired technology; the discontinuance or end of life of certain other products; market adoption, revenue growthand margins of acquired products; changes in demand for the Company's products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimatesused to prepare the Company's financial statements and forecasts; the timely and successful development and market acceptance of new products and upgrades to existing products; the difficulty ofpredicting future cash needs; the nature of other investment opportunities available to the Company from time to time; the Company’s operating cash flow; changes in economic and industry projections;a decline in general conditions in the telecommunications equipment industry or the world economy generally; and the effects of seasonality.

For further discussion of these risks and uncertainties, please refer to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for theyear ended December 31, 2019 and the Company’s Quarterly Report of Form 10-Q for the three months ended March 31, 2020. All forward-looking statements are made as of the date of thispresentation, and the Company disclaims any duty to update such statements.

You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

Non-GAAP and Adjusted EBITDA Measures vs. GAAP Financial Measures

The Company’s non-GAAP and adjusted EBITDA measures exclude certain GAAP financial measures. A reconciliation of the Non-GAAP and Adjusted EBITDA financial measures to the most directlycomparable GAAP financial measures is provided in the financial schedules portion of its press release issued on February 27, 2020 and available in the Investor Relations section of the NeoPhotonicswebsite. Non-GAAP financial measures differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by othercompanies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-periodcomparisons. NeoPhotonics believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a morecomplete understanding of factors and trends affecting its business.

3

NeoPhotonics: World leader in the highest speed optoelectronics

Financial and Operational Scale

• TTM Revenues as of Q1’20 of ~$375 million

• 23% Growth over Qa’2019

• ~1,400 employees (USA, China, Japan, Canada)

• ~500 Issued Patents

Deep Technology for Highest Speed Solutions• C++ LASERTM and 64 Gbaud / 600Gbps coherent suite ship in volume

• Unique ultra-narrow linewidth tunable laser enables highest speed and farthest distance transmission

• Completed initial shipments of 400G/400ZR coherent DCO modules

• Enabled by silicon photonics modulator/receiver integration

For Network Equipment Transport | Metro | Data Center

SystemsLine Card | Daughter Card | Transponder

Telco Carriers/Mega Data Centers

Central Office / WebscaleData Center

Components & Modules

Market Ecosystem

Components and Transceivers

Optical ICs

Lasers, Drivers, Amplifiers, Modulators

SemiFabs

Products Customers

4

$375M

TTM Revenues(Q1’FY20)

27% CAGR in High Speed Products with

Expanding Margins(100G+ 2012-19)

~1,400 Employees(USA, China, Japan, Canada)

~500

Issued Patents

FIBER OPTIC COMMUNICATIONS: THE HIGHEST SPEED LEADER

• A Decade of Delivering the Highest Speed Over Distance In the Industry

• Technology Development Teamwork: Unique Corporate Culture

• The Outer Limits of Complex Optical Materials Technology

• Currently Shipping Products that Deliver 32 Terabits per second On One Fiber

• Technology and Manufacturing: Seamless Organic Team

• Deep Reservoir of Knowhow Captured in Trade Secrets

5

Coherent Optics has Broad Applications

NPTN is Sampling Coherent Optics Solutions in Medical, Industrial and Automotive Markets

Coherent Telecom / DCI (25% CAGR)2019: $2.9B2023: $6.2B

Optics for 5G (72% CAGR)2019: $0.4B2023: $3.0B

Cloud Data Centers (20% CAGR) 2019: $3.1B2023: $6.0B

Coherent Medical Imaging2024: $1.8B

Coherent LIDAR for Autonomous Vehicles

2023: $1.2B

Coherent Industrial Metrology2023: $13B

Source: Various third-party industry reports and company estimates

Co

here

nt

Co

mm

Co

here

nt

Sen

sin

g

6

Deep Culture of Innovation and Technology Refinement

Results of a Decade of Engineering Innovation

Corporate Engineering Culture

• Continuity with Stable Technical Leadership

and Insight for 15 Years

• Key Acquisitions Since 2010; Each a Holder of

Incremental Strategic Technology for Coherent

• Multi-National Teams in Close Collaboration

• Relentless Consistency of Focus over Years

• Steady Manufacturing Technology and

Process Capability Improvement

• Deep Reservoir of Sophisticated Knowhow

Across Operations, from Fab to Final Test

• Abundance of Trade Secrets

• Industry’s Purest Light Tunable Lasers

• Highest Baud Rate Receivers and Modulators

• Most Reliable and Complete Advanced Hybrid Integration Technologies

• Optimized Materials Platforms

• Most Advanced High Density Modulation Schemes

• Delivering the Industry's Highest Speed Over Distance and Highest Capacity

7

Industry Leadership in Coherent Products At Each Speed NodeO

rga

nic

2008-2010

• 40G Coherent

Comixer

• 40G DQPSK Rcvr

• 40G ICR

2012-2014

• 100G ICT

• Gen 1 Modulator

• 200G Type 2 ICR

2014-2016

• Ultra NLW µITLA

• 400G µICR

• 100G CFP-DCO

• 100G TIA

2016-2018

• 600G µICR

• 600G µMOD (CDM)

• 600G COSA

• 100G EML (PAM4)

2018-2020

• 400G SiPho COSA

• 400G CFP2-DCO

• 400G OSFP

• 400G QSFP-DD

• 800G µICR, µMOD

Acq

uis

itio

ns

2013: Lapis Semi

• 100G Optical ICs

• InP and GaAs

• EML, Driver, PD

2015: Emcore TL

• Ultra Narrow Line

Width for >200G

2011: Santur

• 100G Modules

• InP, Tunables

Key Acquisitions Have Each Held Incremental Strategic Technology for Coherent Optics

2020201820162014201220102008

800G

Coherent

400ZR / ZR+

600G

Component

Coherent Suite

400G

Ultra-Narrow

Linewidth Laser

100/200G

Tunable

Laser

100G

Coherent

Receiver

40G

Coherent

Mixer

2010-2012

• 100G ICR

• 200G Type 2 ICR

What Is Changing?

9

Accelerating Growth of Demand for Bandwidth & Cloud Services

• Carriers and ICPs face bandwidth overload

• Infrastructure for Cloud services accelerating

• Pluggable transceiver modules for IP over DWDM is disruptive to traditional chassis-based

systems and proprietary protocols

• Networks become more flexible, lower cost and much more scalable

• DSPs are increasingly interoperable

• Module solutions expected to gain share of ports in 400ZR domain

Current Inflection from Telecommuting & On-line Entertainment

Market power may now shift from network equipment to pluggable modules and

components. High performance optics as the new differentiator.

10

New Bandwidth Solutions are Demanded by Carriers and ICPs in the Quarters Ahead

Imminent Surge in Investment in Bandwidth

Country or

State

Traffic

Change

DL Speed

Change

USA CA ↑47% ↑1%

USA NY/NJ ↑45% ↓6%

USA MI ↑38% ↓16%

UK ↑79% ↓30%

France ↑38% ↓14%

Japan ↑32% ↑10%

Italy ↑109% ↓14%

Spain ↑39% ↓8%

Global internet traffic has seen stepwise growth with people working remotely

Cloudflare: San Francisco Bay Area Traffic Changes during Pandemic

Source: Fastly.com

11

Insatiable Demand for The Highest Data Rates

Total Data Growth*(per month)

Driven by Cloud, Big Data, 5G, Artificial Intelligence, Internet of Things (IoT) and Machine Learning … and now remote working

44 Exabytes

2012

122 Exabytes

2017

396Exabytes

2022

* Cisco Visual Networking Index:

Our Highest Speed Over Distance Solutions Enable ICPs and Carriers to Deliver Bandwidth

12

High Speed Optical Ports As A Measure of SuccessTwo Ports Per Channel (or Wavelength)

OPTICAL PORT(2020 Market: 620K ports*)

• NeoPhotonics’ tunable lasers have narrowest line width and lowest phase noise (ultra pure color)

• High performance receivers decode phase and polarization

• Advanced modulators code signals that use large constellation modulation schemes

* Company Estimate:

Coherent Optical Ports Are the Metric of Our Business

COHERENT TRANSCEIVER / OPTICAL PORT(2020 Market: 620K ports*)

Electronics

Digital signal processor converts analog signals to digital

DSP

Electronics

Digital signal processor converts analog signals to digital

DSP

Control

electronics

The Optics

Sold integrated, in modules, or as components

RECEIVETRANSMIT

LaserModulator

Signal Out Signal In

Receiver

13

High Speed Market Growth – Cost per Bit Declines

Source: Company estimates

High Speed Coherent Is Technology of Choice

Rapid 100G+ Market Growth

Coherent Ports Are Growing – Even Faster Growth At Higher Data Rates

0

200

400

600

800

1000

1200

1400

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

100G 200G 400G+ 400ZR

+30%

CAGR

CO

HE

RE

NT

PO

RT

S S

HIP

PE

D

Total Ports in 2020 forecast is 620K

400ZR+CFP2-DCO

400ZR &400ZR+ OSFP

400ZRQSFP-DD

Maximizing Capacity in

IP over DWDM Networks

15

NeoPhotonics’ Sustainable Competitive Advantage: Our Laser

Silicon

OUR DESIGN

• A formidable competitor in

silicon

• Requires our high power

lasers

• Leading hybrid integration

• Superior laser design

• Low phase noise

• Narrow line width

No Need for Distorting Amplification

OUR INTEGRATIONLaser

We leverage ultra-pure light tunable lasers and optical integration to deliver highest speed over distance

New, competitive nano- and C++ LASERTM products target high capacity applications

• Low phase noise

16

Two Methods to Increase Capacity in Fiber / Transmission Distance

1. Increase the capacity in each channel (per wavelength)

– A. Increase baud rate (i.e., symbol rate)

increase transmission distance for the same net data rate

Example: Ciena WL5 (95Gbaud) for 400G long-haul

– B. Increase (higher) modulation order (i.e., denser constellation)

Increase spectral efficiency

Example: 400ZR DCI links uses 16QAM modulations; 600G DCI links uses 64QAM modulations.

2. Expand the available optical spectrum

– Add new spectrum by extending the C-band to “C++ BandTM” or to C-band and L-band

Using Coherent Systems, capacity is expanded by:

Wider Spectrum

Higher order modulation

High baud (symbol) rate

17

(1A) Increase capacity in each channel by increased baud (symbol) rate

Increased baud rate (i.e. symbol rate) allows a lower modulation for give data rate

CoherentTX

CoherentRXTransmission fiber

with chromatic dispersion

TunableLaser (local

oscillator)

Laser phasefluctuation

Above issue is a well-known transmission impairment in coherent metro and long-haul systems.

Laser phase noise performance is critical for receive signals (even more than transmit).

Objective is clear, consistent pulses.

With a long pulse, fluctuating laser phase

noise causes DSP processing errors.

The more stable (lower) phase noise gives

better system performance.

After a transmission in fiber, the transmitted pulse is broadened as shown below:

High baud (symbol) rate

18

Maximizing capacity of fiber by increasing bits per symbol, or modulation order, in addition to increasing (symbol) baud rate

(1B) Increase capacity in each channel by higher modulation order

• High order modulation is efficient – it increases data rates on a signal.

• With higher phase noise from the laser, there are more phase rotations in high order modulation Coherent Systems

Cannot differentiate constellation points (each

point represents a data symbol)

Higher Symbol Error Rate

16-QAM 64-QAM

LaserPhaseNoiseHigh

LaserPhaseNoiseLow

Higher order modulation

19

(2) More Capacity Over the Same Fiber: Expanded Spectrum

Maximize speed in every channel – and increase the capacity of each channel Speed per Channel

~60 - 100Channels

(wavelengths or colors per fiber)

1Fiber

10G

100G

200G

400G

600G

800G

1.2T

Expanded spectrum

Expanded spectrum

Expanding the spectrum to C++

spectrum increases number of

channels or Increases capacity of

each channel. Capacity increases

from 4.0 ~ 4.8 THz to 6.0 ~ 6.5 THz.

Wider Spectrum

Increasing capacity per channel

leverages spectrum + wavelength

capacity to reduce cost per bit

20

C++ LASERTM and ModuleIllustration of Capacity Benefits: More “Pipes” or “Bigger Pipes”

FEATURESWider bandwidth = more pipes (THz)Broader channel spacing = bigger pipes (GHz) C++ LaserTM enables more, bigger pipes

BENEFITSAllows data center or carrier to better leverage fiber plant investment Maximize capacity in existing cable / terminal equipment investment C++ TransceiversTM allow higher capacity per fiber

SP

EC

TR

UM

1524nm 1572nm

Expanded C++TM Band6.0-6.5 THz

…

C-Band4 THz Width

1530nm 1562nm

…

1530nm 1568nm

…

Extended C-Band4.8 THz Width

CA

PA

CIT

Y

DATA

50GHz channel spacing

50 GHz bandwidth “pipes” are standard for 100/200Gbpsbut restrict data flow at 400Gbps

DATA

75GHz or 100GHz channel spacing

More data flows at 400 Gbps requiring a “bigger pipe” (75 GHz or 100 GHz)

21

COHERENT

IP over DWDM reduces cost per bit; Laser Technology Is Essential

Coherent100G+ Networks

Creates detectable,

error-free signal, each color

(wavelength) transmitted must be

much purer than for lower speeds

The New

On/Off Keying10G WDM Networks

Signal muddied /

impaired at higher speeds

The Old

The Best in Coherent Optics Technology

Low phase noise

High symbol rate

Higher order modulation

Wider Spectrum

NeoPhotonics High Capacity Solutions for Speed Over Distance

Achieving the Highest Speeds

23

Speed Over Distance: Huge Opportunity for ZR and ZR+

Near Term

Suburb or campus

Urban data center

OPEN LINE

SYSTEM

ROUTER COMPACT

MOD

400ZRSRSR

ROUTERCOMPACT

MOD

400ZR SR SR

Future

Urban data center

Suburb or campus

ROUTER ROUTER

OPEN LINE

SYSTEM

400ZR 400ZR

Can extend to 800ZR

SR = short reach transceiver

IP over DWDM will be displacing DWDM proprietary boxes with disaggregated 400ZR interconnections

ZR Architecture offers significant potential for cost savings and flexibility, including in Metro and Regional telcos with ZR+ reach.

NeoPhotonics is sampling or shipping all three 400ZR modules

400ZR & 800G OSFP

400ZR QSFP-DD

400ZR CFP2-DCO

24

NeoPhotonics: Well Positioned for Accelerating Growth

• 400G/600G & Beyond Major Wave globally

• DCI and Metro markets surging

• Strength in 100G/200G in China market

• 5G Rollout to 50 Cities in China

• Launch of 400ZR in 2020 with Ramp in 2021

MARKET DRIVERS

2020 2021 2022 2023

TOTAL ADDRESSABLE MARKETCoherent Module / Linecard Market

100/200G

400G+$3.2B

$3.6B$4.3B

$5.4B

Positioned to Gain Share in Growing Markets

OUR POSITION

High performance components

enabling highest

PERFORMANCE modules

New Drivers Moves Leading

CUSTOMERS to Our Solutions

Pervasive in Next Gen Coherent

ECOSYSTEM

NeoPhotonics Tunable Lasers Drive Inter-Data Center Today;

Will Drive Connectivity with 400ZR Tomorrow

Major Growth in Served MarketSource: Company estimates

FINANCIAL VIEW

Beth Eby, CFO

May 2020

26

NeoPhotonics: Turnaround Complete(Non GAAP, $M)

0%

5%

10%

15%

20%

25%

30%

35%

0

100

200

300

400

Q1'18 TTM Q1'19 TTM Q1'20 TTM

Revenue & Gross Margin %

Revenue Non-GAAP GM%

-20%

-15%

-10%

-5%

0%

5%

10%

-40

-30

-20

-10

0

10

20

30

Q1'18 TTM Q1'19 TTM Q1'20 TTM

Operating Profit

non-GAAP OpInc $ non-GAAP OpInc %

NOTES:

Trailing 12 Months includes Q1 of the named year through Q2 of the previous year.

Q1’20 Non-GAAP Operating Profit excludes stock-based compensation expense of

$2.5M and acquisition related intangibles amortization of $0.2M

2019 Non GAAP Operating Profit excludes (to be consistent) $12.5M Stock

Compensation Expense, $3.6M EOL Inventory Write-downs; $2.3M Accelerated

Depreciation (Client Module) ($0.9M); (Gain) on Sale of Assets; $0.9M Amortization

of Intangibles; $0.4M Asset Sale Related Costs (Neo Russia sale); $0.3M

Restructuring (from 2018 restructuring)

/

Our focus on gross margin and cash over the last three years has positioned us well for the next inflection point.

0

20

40

60

80

100

120

Q1'18 Q1'19 Q1'20

Cash and Debt

Cash, Restricted Cash & Short Term Investments Total Debt (LT, ST and Notes)

$Mil

$Mil

$Mil

27

• Non GAAP Earnings per share of $0.17/share as all

metrics exceeded our Outlook, on outstanding execution.

• Revenue up 23% year-over-year, with strong demand in

China. Huawei demand for non-EAR products grew to

52% of and China grew to 60% of revenue.

• Non-GAAP gross margin at 31% on slightly higher than

expected factory utilization.

• Operating expenses were unusually low, on an expected

R&D license credit and Covid-19 related lack of spending

that will push to future quarters.

• FX drove good news of $1.3M.

Q1’20 Financial Summary

Note:

Q1’20 Non-GAAP EPS excludes stock-based compensation expense of $2.5M, amortization of $0.2M and small non-GAAP tax and other adjustments

0%

5%

10%

15%

20%

25%

30%

35%

0

30

60

90

120

Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19Q2'19Q3'19Q4'19Q1'20Q2'20MidEst

Revenue & Gross Margin

Revenue Gross Margin %

$Mil

28

Q1’20 P&L Performance (Non-GAAP)

(% of Revenue) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20Target

Model

Revenue $ $79.4M $81.7M $92.4M $103.4M $97.4M 100%

Product Margin % 27% 32% 34% 37% 36%

Mfg. Inefficiencies (4)% (5)% (4)% (4)% (4)%

Other COGS (1)% (1)% (1)% (2)% (1)%

Gross Margin % 22% 26% 29% 31% 31% 35%

R&D 17% 16% 14% 14% 11%

S&M 5% 4% 4% 3% 3%

G&A 8% 7% 7% 6% 6%

TOTAL OPEX 30% 27% 24% 24% 21% 25%

Operating Margin (8)% (1)% 5% 7% 10% 10%

EBITDA (1)% 8% 15% 12% 18% 15%

Note:

Q1’20 Non-GAAP EPS excludes stock-based compensation expense of $2.5M, amortization of $0.2M of acquisition related intangibles and

small non-GAAP tax and other adjustments

29

Outlook for Q2’20

• Q2’20 Non-GAAP Gross Margin reflects continued improvement in product margins partially offset by under-utilization charges as a result of supply chain constraints

• Tariff charges for products shipped from the U.S. to China have been eliminated for most of our products (was 0.7 points in Q1’20)

• On 26 May the Company announced that it does not anticipate any material impact on its near-term financial prospects as a result of recent BIS actions announcing the intention to put FiberHome Technologies Group on the Entity List.

Notes: Q2’20 Non-GAAP outlook excludes $3.3M of anticipated stock-based compensation expense, $0.2M of amortization of acquisition related intangibles and small non-GAAP tax and other adjustments

Non-GAAP EPS outlook assumes approximately 54.2 million fully diluted shares outstanding

GAAP Non-GAAP

Revenue $94M to $102M

Gross Margin 29% to 33% 30% to 34%

Operating Expenses

$27M to $28M $24M to $25M

EPS ($0.02) to $0.08 $0.05 to $0.15

Demand for network bandwidth capacity continues to be strong.

Q2 Revenue includes approximately $10 million of Covid-19 related identified supply chain risks.

Operating Expenses include pushes from an unusually low Q1’20 Operating Expense.

Q2 2020 results are expected to be in the upper half of the range, inclusive of the impact of recent

Commerce Department BIS announcements.

30

Our Priorities Are Clear

Markets

• Expanding customer base serving ICPs with DCI solutions, as well as telecom NEMs and their supply chain partners

Products

• Clear leadership in high speed optical components, coherent lasers and leveraging integration

• Product suite for highest performance and speed (Indium Phosphide) and cost benefit (Active Silicon platform)

• A profitable, growth solutions business path serving fast growing 400G modules

Operating financial performance

• Maximizing revenue and gross margin for every unit of production capacity

• Gain market share with feature and performance differentiation

• Insource key components for cost and time to market

• Continue to rationalize excess capacity and infrastructure

We are pursuing a path to deliver increased revenue growth and consistent higher profitability

See also:

www.neophotonics.com/blog/

and

ir.neophotonics.com

Reference

32

Serving Customers From a Global Footprint

Headcount by Geography

North America ~270

China (~400 contract) ~1,200

Japan ~260

ROW ~15

Total (~800 IDL) ~1,730

Comprehensive Vertical Integration for Multi-Material Hybrid Integration of Optical Solutions

San Jose, CA,

USA• PLC Fab• Corporate HQ

& Manufacturing

Fremont, CA,

USA • InP Fab• Lasers, arrays

Hachioji, Japan• All Functions• InP/GaAs Fab

Dongguan,

China• Volume

Manufacturing Site

Shenzhen, China

• All Functions• Volume

Manufacturing Site

CM: Thailand• Volume

Manufacturing Site

CM: Taiwan • Volume

Manufacturing Site

CM: Japan• Volume

Manufacturing Site

Ottawa, Canada• R&D Site

Wuhan, China• R&D Site

33

Q1’20 P&L Performance (Non-GAAP)

($ Millions) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

Revenue $ $79.4 $81.7 $92.4 $103.4 $97.4

Product Margin $ 21.5 26.3 31.8 38.0 34.8

Mfg. Inefficiencies (2.7) (4.4) (3.5) (4.6) (4.2)

Other COGS (1.0) (1.0) (1.5) (1.5) (0.2)

Gross Margin $ 17.8 20.9 26.8 31.9 30.4

R&D 13.8 13.0 12.9 14.7 11.1

S&M 3.9 3.0 3.2 3.5 3.1

G&A 6.6 6.1 6.2 6.2 6.1

TOTAL OPEX 24.2 22.1 22.3 24.3 20.3

Operating Margin ($6.5) ($1.2) $4.4 $7.6 $10.1

Adj. EBITDA ($0.8) $6.8 $14.2 $12.5 $17.8

Q1’20 GAAP Financial Measures to Non-GAAP

Reconciliation

GAAP Net Income $6.3M

Stock-based compensation expense 2.5

Amortization 0.2

Income tax effect of Non-GAAP

Adjustment & others $0.1

Non-GAAP Net Income $9.1M

34

Q1’20 P&L Performance (GAAP)

($ Millions) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

Revenue $ $79.4 $81.7 $92.4 $103.4 $97.4

Product Margin $ 21.5 26.3 31.8 38.0 34.8

Mfg. Inefficiencies (1.4) (4.4) (3.5) (4.6) (4.2)

Period Costs (2.4) (1.0) (1.5) (1.5) (0.2)

Other Charges (2.0) (5.2) (0.6) (0.7) (0.7)

Gross Margin $ 15.7 15.7 26.2 31.2 29.7

R&D 14.7 13.8 13.7 15.5 11.9

S&M 4.6 3.6 3.8 4.0 3.6

G&A 7.8 7.2 7.4 7.4 6.8

Other

Charges0.6 (0.7) - - -

TOTAL OPEX 27.7 23.9 24.9 26.9 22.3

Operating Margin $(11.9) $(8.2) $1.3 $4.3 $7.4

35

Q1’20 Balance Sheet

($ Millions) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20

Cash & Equivalents $79 $74 $80 $89 $109

Working Capital 111 108 114 122 133

Total Assets $344 $319 $325 $335 $342

Total Debt 56 48 48 42 41

Total Liabilities 192 171 175 174 173

Shareholders’ Equity 153 148 150 160 169

36

End of File