JD Fay – CFO:

Welcome to the NeoPhotonics 2011 Fourth Quarter and Year End 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 fourth quarter and full year of 2011. With me today are Tim Jenks, Chairman, President 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 Quarterly Report on Form 10-Q 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. NeoPhotonics will be presenting at the 24th Annual Roth Conference in Laguna Niguel, California on March 12th, and at the Harris & Harris “Meet the Portfolio Day” in New York City on March 13th. 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, update you on our acquisition of Santur Corporation, which we completed during the fourth quarter, and then talk about what we are seeing in the industry as a whole. NeoPhotonics delivered record revenue for the fourth quarter of 2011 at $57.2 million, significantly above our projected range of $45-$50 million provided in our third quarter conference call. We experienced increased demand across most of our business and in fact, some areas saw demand considerably strengthened. Moreover for NeoPhotonics, as a vertically integrated supplier of optical modules and subsystems, we are not at all dependent on partners in Thailand for any part of our supply chain. Thus, we represent an independent supply chain to our customers, and the flooding in Thailand did not have any direct adverse impact on our ability to produce products. Instead of seeing an anticipated slowing with our customers due to their other suppliers being impacted by flooding in Thailand, we experienced an increase in demand from some customers seeking additional supply. This incrementally positive effect was more notable for 10G products and tunable laser products, both of which are in our Speed and Agility product group. Further, demand from our largest customer was relatively strong in the fourth quarter and well above third quarter demand, though as is often the case this demand was not flat across the quarter, but was stronger in the latter part of the quarter. We delivered Non-GAAP gross margin above our projected range. Non-GAAP gross margin was 23.5% in the fourth quarter, compared to our projected range of 19-21% following the Santur acquisition and inclusive of the effects of annual price negotiations that were completed during the fourth quarter. Reflecting our higher…

Thank you, Tim, and good afternoon. I will review the financial results for the fourth fiscal quarter ended December 31, 2011, the full year of 2011, and conclude with our outlook for the first quarter of 2012. The fourth quarter results include operations of Santur and exclude operations of a small cable TV-related subsidiary in China we expect to sell and have classified as discontinued operations. We expect to close that business sale by the end of the second quarter of 2012. Accordingly, we have adjusted prior periods for comparability. For the fourth quarter of 2011, revenue was $57.2 million, an increase of approximately 33% from $42.8 million in the third quarter of 2011, and an increase of approximately 14% from $50.2 million in the fourth quarter of 2010. Our fourth quarter of 2011 was 14% higher than the top end of our projections and the highest recorded quarterly revenue in our history. GAAP gross margin for the fourth quarter of 2011 was 21.5%. Non-GAAP gross margin for the fourth quarter was 23.5% and above the top end of our projections, as compared to the previous quarter’s Non-GAAP gross margin of 27.8%, which excluded the impact of Santur’s operations. Non-GAAP gross margin for the fourth quarter of 2011 excludes amortization of purchased intangibles and other assets relating to the acquisition of Santur of $1.0 million, and stock based compensation and Santur’s pre-acquisition retention expenses of $0.1 million. Loss from continuing operations for the fourth quarter of 2011 was $22.8 million, as compared to a loss from continuing operations of $4.2 million in the third quarter and income from continuing operations of $0.5 million in the fourth quarter of 2010. Diluted loss per share from continuing operations for the fourth quarter was $0.92. Operating expenses for the fourth quarter of 2011…

Thank you for joining us today. 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, our customers and our employees for their dedication. We look forward to updating you on our progress in the future.