UPDATE: Needham Downgrades NeoPhotonics On Accounting Visibility Issues

In a report published Friday, Needham analyst Alex Henderson downgraded NeoPhotonics

from a Strong Buy to a Buy and lowered the price target from $13.00 to $10.00. In the report, Needham says "NeoPhotonics announced it could not complete its financial statements in a timely fashion and offered only partial information on the September quarterly results. It also offered Revenue and GM guidance for CY4Q. While the results were in line with management's guidance for the quarter, they were a hair light from our forecast and as a result we are trimming our forecasts to reflect the guidance. We are also lowering our rating to Buy from Strong Buy and our target price from $13 to $10 to reflect the accounting visibility issue. We are still constructive on the stock but think investors need the full reported financial to invest, and that may take some time to deliver." NeoPhotonics closed on Thursday at $5.89.