Rockley Photonics Holdings Ltd. (RKLY) stock tumbled down by 18.56% in the after-hours on December 21. The stock fell after the company announced the discontinuation of the sale related to its joint venture.
In the regular session, RKLY stock gained just a small 0.96% at the closing price of $5.28 at 299.4K shares. Following the news, the stock plunged deep in the after-hours to reach $4.30.
The developer of integrated silicon photonics chipsets, Rockley Photonics Holdings Ltd. Was founded in 2021. Currently, the 127.22 million outstanding shares of the company trade at a market capitalization of $665.36 million.
Recent News
On December 21, the company announced to discontinue its data-communications-related technical sale to Hengtong Rockley Technology Co. Ltd, under the current situation. Hengtong Rockely is RKLY’s joint venture (JV) with Jiangsu Hengtong Optic-Electric Co., Ltd. (Hengtong). Furthermore, the basis of this decision was Hengtong and its affiliates’ placement on the BIS Entity List by the U.S. Bureau of Industry Security. According to this, without prior authorization companies are not allowed to provide products and technologies to Hengtong. Moreover, the effective date for the placement was December 17 for Hengtong.
Currently, RKLY is analyzing the situation and its relation with the JV. Further, the company expects to take proper measures based on its findings.
RKLY’s Revised Financial Outlook
Due to the situation with the JV, the company has updated its financial outlook for the full years 2021 and 2022. According to Founder and CEO of RKLY, Andrew Rickman, while the current situation will have a negative near-term impact, RKLY expects no effects on its long-term outlook.
Hence, the company expects to generate revenue between $7 million and $8 million in 2021.
Moreover, the expected revenue for the full year 2022 is between $25 million and $30 million.
RKLY’s Q3 Financials
On November 16, the company declared its financial results for the third quarter of 2021, which ended on September 30, 2021.
According to the report, RKLY generated a revenue of $1.8 million in the third quarter of 2021. Comparatively, the revenue was $2.2 million in the previous quarter of the same year.
Moreover, the non-GAAP net loss in the third quarter of 2021, was $51.4 million, against $27.4 million in the previous quarter. Subsequently, the non-GAAP net loss per share was $0.48 in Q3 of 2021, against $0.33 in Q2 of 2021.
