Financial Performance - Fiscal Q4 2024 net revenue was $308.3 million, a decrease of 15.9% quarter-over-quarter and 16.9% year-over-year[5] - For the full fiscal year 2024, net revenue was $1.36 billion, a decline of 23.1% from $1.77 billion in fiscal year 2023[6] - Net revenue for the three months ended June 29, 2024, was $308.3 million, a decrease of 16.8% compared to $370.8 million for the same period in 2023[13] - GAAP net loss for fiscal year 2024 was $546.5 million, or $8.12 per diluted share, compared to a loss of $131.6 million, or $1.93 per diluted share in fiscal year 2023[4] - The net loss for the three months ended June 29, 2024, was $252.5 million, compared to a net loss of $60.2 million for the same period in 2023, representing a significant increase in losses[13] Operating Expenses - Total operating expenses increased to $184.7 million for the three months ended June 29, 2024, compared to $145.5 million in the same period last year, reflecting a rise of 26.9%[13] - Research and development expenses remained relatively stable at $73.2 million for the three months ended June 29, 2024, compared to $73.9 million in the prior year[13] - Selling, general and administrative expenses on GAAP basis for the three months ended March 30, 2024, were $77.7 million, compared to $68.3 million for the same period last year, indicating an increase of approximately 13.7%[18] - Research and development expenses on GAAP basis for the twelve months ended June 29, 2024, totaled $302.2 million, slightly down from $307.8 million in the previous year[18] Cash and Liquidity - Cash from operations for fiscal year 2024 was $24.7 million, with total cash and equivalents at $887.0 million at the end of Q4 2024[4][3] - Cash and cash equivalents decreased to $436.7 million as of June 29, 2024, down from $859.0 million as of July 1, 2023[14] - Total assets decreased to $3,931.9 million as of June 29, 2024, compared to $4,632.1 million as of July 1, 2023[14] - Total liabilities were $2,974.6 million as of June 29, 2024, a decrease from $3,276.3 million as of July 1, 2023[14] Future Outlook - The company expects Q1 2025 net revenue in the range of $315 million to $335 million, with a non-GAAP operating margin of 0% to 3.0%[8] - The company is focusing on expanding its cloud and AI customer base to drive growth in calendar year 2025[2] Profitability Metrics - Non-GAAP net income for Q4 2024 was $4.0 million, or $0.06 per diluted share, down from $19.6 million, or $0.29 per diluted share in Q3 2024[3] - Non-GAAP gross profit for the twelve months ended June 29, 2024, was $448.9 million, compared to $763.5 million for the previous year, reflecting a decrease of approximately 41.3%[18] - The total income (loss) from operations on a non-GAAP basis was $(0.8) million, with an operating margin of (0.3)%[20] Charges and Adjustments - Restructuring and related charges amounted to $35.8 million, including a $29.1 million write-off of in-process research and development assets[22] - Non-GAAP income tax reconciling adjustments included $139.8 million of income tax expense due to recognizing a valuation allowance against U.S. federal and state deferred tax assets[22] - Other charges, net for the three months ended June 29, 2024, included a $3.4 million one-time charge due to contract termination with a vendor[20] - Abnormal excess capacity for the three months ended June 29, 2024 was reported at $7.0 million, primarily due to a reduction in manufacturing production[20] Stock-Based Compensation - Stock-based compensation for the twelve months ended June 29, 2024, was $128.8 million, compared to $136.5 million in the previous year, showing a decrease of approximately 5.4%[18] - Stock-based compensation for the latest quarter was $30.5 million[20]

The Zacks Laser Systems and Components industry is suffering from challenging macroeconomic conditions globally, weak economic conditions in Europe and a sluggish economic environment in China. Continued economic uncertainty with low PMI numbers in Europe, North America and Japan is impacting industrial demand and capital investments. However, industry participants like Lumentum Holdings (LITE) and MicroVision (MVIS) benefit from upbeat demand from electric vehicles, electronics, semiconductors and healthca ...

The Zacks Laser Systems and Components industry is suffering from challenging macroeconomic conditions globally, weak economic conditions in Europe and a sluggish economic environment in China. Continued economic uncertainty with low PMI numbers in Europe, North America and Japan is impacting industrial demand and capital investments. However, industry participants like Lumentum Holdings (LITE) and MicroVision (MVIS) benefit from upbeat demand from electric vehicles, electronics, semiconductors and healthca ...

Financial Data and Key Metrics Changes - Third quarter revenue was $366.5 million, approximately flat sequentially and down 4.4% year-on-year [24] - Non-GAAP EPS for the third quarter was $0.29, with non-GAAP net income of $19.6 million [25][22] - GAAP gross margin for the third quarter was 16.2%, with a GAAP operating loss of 31.3% [24] - Non-GAAP gross margin was 32.6%, flat sequentially and down year-on-year [67] Business Line Data and Key Metrics Changes - Cloud & Networking segment revenue was $313.8 million, increasing 9.5% sequentially and 7.1% year-on-year, driven by strong data center demand and the Cloud Light acquisition [45] - Industrial Tech segment revenue was $52.7 million, down 34.2% sequentially and 41.7% year-on-year, impacted by seasonality and increased competition [39] Market Data and Key Metrics Changes - Demand for 400ZR and ZR+ modules for data center interconnect (DCI) is increasing, with a notable uptick in demand for tunable lasers in Q3 [18] - The telecom sector is experiencing an extended inventory correction, with slower spending from telco carriers impacting revenue [38] Company Strategy and Development Direction - The company is pursuing a three-pronged strategy to drive growth in cloud data center revenue, including expanding manufacturing capacity and focusing on innovative solutions for cloud and AI infrastructure [15][35] - The cloud photonics opportunity is projected to reach approximately $16 billion by 2028, with expectations to expand cloud revenue to multibillions in the coming years [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in significant growth for calendar 2025, driven by investments in new data center products and a recovery in the telecom industry [20] - The company anticipates a revenue range of $290 million to $315 million for the fourth quarter of fiscal '24, with expectations of a decline in Cloud & Networking due to telecom demand softness [26] Other Important Information - The company achieved a $51 million sequential reduction in overall inventory levels during Q3 [66] - The integration of the Cloud Light acquisition is expected to enhance capabilities in the rapidly-growing AI and ML photonics market [22] Q&A Session Summary Question: Clarification on the $40 million reduction in Cloud & Networking - The $40 million reduction is incremental to the previously discussed $30 million decline due to a product transition, reflecting a change in outlook for telecom spending [50] Question: Revenue generation through ZR and ZR-related sales - The narrow linewidth tunable lasers have seen a significant increase, with ZR and ZR+ still in single digits of overall revenue but expected to grow [52] Question: Manufacturing expansions in Thailand - The company is expanding manufacturing capacity in Thailand to meet customer demand, with a qualification line being set up [58] Question: Impact of the Cloud Light acquisition - The Cloud Light acquisition contributed positively to the quarter, with a full quarter of production compared to the prior partial quarter [22][113] Question: Timing of 200G laser shipments - The company expects to ramp up shipments of 200G lasers in the December quarter, with meaningful increases anticipated in calendar 2025 [92][106]

Lumentum (LITE) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.54%. A quarter ago, it was expected that this optical networking products maker would post earnings of $0.31 per share when it actually produced earnings of $0.32, delivering a surprise of 3.23%.Over the last four quar ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Lumentum's unaudited financial statements detail performance, including Cloud Light acquisition, net loss, and segment reporting changes [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net revenue and gross profit declined significantly, leading to a widened net loss for both the quarter and nine-month period Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended Mar 30, 2024 | Three Months Ended Apr 1, 2023 | Nine Months Ended Mar 30, 2024 | Nine Months Ended Apr 1, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $366.5 | $383.4 | $1,050.9 | $1,396.2 | | **Gross profit** | $59.5 | $112.0 | $200.2 | $479.4 | | **Loss from operations** | $(114.6) | $(51.4) | $(300.6) | $(59.8) | | **Net loss** | $(127.0) | $(39.3) | $(294.0) | $(71.4) | | **Diluted net loss per share** | $(1.88) | $(0.57) | $(4.38) | $(1.05) | - Restructuring and related charges increased significantly to **$19.2 million** for the quarter and **$36.0 million** for the nine-month period, compared to **$1.6 million** and **$24.8 million** in the respective prior-year periods[10](index=10&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased due to reduced cash and investments, while goodwill and intangible assets rose significantly from the Cloud Light acquisition Condensed Consolidated Balance Sheet Highlights (in millions) | Metric | March 30, 2024 | July 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $425.0 | $859.0 | | **Short-term investments** | $445.9 | $1,154.6 | | **Total current assets** | $1,650.0 | $2,777.9 | | **Goodwill** | $1,055.9 | $695.1 | | **Other intangible assets, net** | $688.5 | $459.2 | | **Total assets** | $4,204.5 | $4,632.1 | | **Convertible notes, non-current** | $2,502.4 | $2,500.0 | | **Total liabilities** | $3,027.8 | $3,276.3 | | **Total stockholders' equity** | $1,176.7 | $1,355.8 | - The current portion of convertible notes decreased from **$311.6 million** to zero, reflecting the repayment of the 2024 Notes[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow shifted to a net use, investing activities focused on Cloud Light acquisition, and financing repaid convertible notes Cash Flow Summary (in millions) | Activity | Nine Months Ended Mar 30, 2024 | Nine Months Ended Apr 1, 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $(10.8) | $130.6 | | **Net cash used in investing activities** | $(86.8) | $(803.1) | | **Net cash used in financing activities** | $(336.4) | $(68.5) | | **Decrease in cash and cash equivalents** | $(434.0) | $(741.0) | | **Cash and cash equivalents at end of period** | $425.0 | $549.2 | - The acquisition of businesses, net of cash acquired, was a major use of cash in both periods, with **$700.9 million** spent in fiscal 2024 (Cloud Light) and **$861.6 million** in fiscal 2023 (NeoPhotonics)[18](index=18&type=chunk) - The company fully paid off its 0.25% Convertible Notes due 2024 with a payment of **$323.1 million**[18](index=18&type=chunk) [Note 4. Business Combinations](index=15&type=section&id=Note%204.%20Business%20Combinations) Lumentum acquired Cloud Light for **$728.5 million** to enhance its data center interconnect market position, recognizing significant goodwill and intangibles - Lumentum acquired Cloud Light Technology Limited on November 7, 2023, to strengthen its offerings for cloud and networking customers, especially in AI/ML infrastructure[46](index=46&type=chunk) Cloud Light Acquisition Purchase Price (in millions) | Consideration Type | Fair Value | | :--- | :--- | | Cash consideration | $705.0 | | Share-based consideration | $23.5 | | **Total purchase price** | **$728.5** | - The acquisition resulted in preliminary goodwill of **$360.8 million**, assigned to the Cloud & Networking segment, and is attributed to expected revenue growth and synergies[51](index=51&type=chunk) - For the three and nine months ended March 30, 2024, Cloud Light contributed **$84.6 million** and **$144.1 million** to consolidated net revenue, respectively[52](index=52&type=chunk) [Note 9. Debt](index=27&type=section&id=Note%209.%20Debt) Lumentum held **$2.50 billion** in non-current convertible notes and repaid **$323.1 million** of maturing 2024 notes during the quarter Net Carrying Amount of Convertible Notes (in millions) | Note Series | March 30, 2024 | July 1, 2023 | | :--- | :--- | :--- | | 2029 Notes | $599.1 | $598.6 | | 2028 Notes | $856.5 | $855.5 | | 2026 Notes | $1,046.8 | $1,045.9 | | 2024 Notes | — | $311.6 | | **Total** | **$2,502.4** | **$2,811.6** | - On March 15, 2024, the 2024 Notes matured, and the company fully repaid the remaining principal amount of **$323.1 million**[134](index=134&type=chunk) - In June 2023, the company issued **$603.7 million** of 1.50% Convertible Senior Notes due in 2029[99](index=99&type=chunk) [Note 11. Restructuring and Related Charges](index=34&type=section&id=Note%2011.%20Restructuring%20and%20Related%20Charges) Significant restructuring charges were incurred for cost reduction and manufacturing site consolidation, including factory shutdowns and facility consolidation Restructuring and Related Charges (in millions) | Period | Charges Incurred | | :--- | :--- | | Three Months Ended Mar 30, 2024 | $19.2 | | Three Months Ended Apr 1, 2023 | $1.6 | | Nine Months Ended Mar 30, 2024 | $36.0 | | Nine Months Ended Apr 1, 2023 | $24.8 | - Restructuring efforts include shutting down factories in China from the NeoPhotonics acquisition, ramping up production in Thailand, and consolidating wafer fabrication facilities in Japan[142](index=142&type=chunk) [Note 15. Operating Segments and Geographic Information](index=41&type=section&id=Note%2015.%20Operating%20Segments%20and%20Geographic%20Information) Lumentum reorganized into Cloud & Networking and Industrial Tech segments, both experiencing revenue and profit declines, with Asia-Pacific remaining a key market - The company changed its organizational structure and reportable segments to Cloud & Networking and Industrial Tech in Q1 2024. Prior period data has been recast[186](index=186&type=chunk)[188](index=188&type=chunk) Segment Net Revenue and Profit (in millions) | Segment | Nine Months Ended Mar 30, 2024 | Nine Months Ended Apr 1, 2023 | | :--- | :--- | :--- | | **Net Revenue** | | | | Cloud & Networking | $830.2 | $1,036.0 | | Industrial Tech | $220.7 | $360.2 | | **Total Net Revenue** | **$1,050.9** | **$1,396.2** | | **Segment Profit** | | | | Cloud & Networking | $98.9 | $262.6 | | Industrial Tech | $25.3 | $140.6 | | **Total Segment Profit** | **$124.2** | **$403.2** | - For the nine months ended March 30, 2024, one customer (Customer C) accounted for **12.1%** of total net revenue, and another (Customer A) accounted for **18.7%**[201](index=201&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant revenue and profitability declines due to market conditions, trade restrictions, and restructuring efforts, partially offset by the Cloud Light acquisition [Results of Operations](index=51&type=section&id=Results%20of%20Operations) Net revenue decreased **24.7%** YoY, impacting both segments, while gross margin contracted sharply due to lower sales and unfavorable product mix - Nine-month net revenue decreased by **$345.3 million** (**24.7%**) YoY, driven by a **$205.8 million** decrease in Cloud & Networking and a **$139.5 million** decrease in Industrial Tech[231](index=231&type=chunk) - The revenue decline was primarily caused by customers managing down their inventory levels and increased market competition, partially offset by **$144.1 million** in revenue from the newly acquired Cloud Light[231](index=231&type=chunk) - Nine-month gross margin decreased from **34.3%** to **19.1%** YoY, impacted by a less profitable product mix, lower sales volumes, and **$13.7 million** of abnormal excess capacity charges related to manufacturing synergy plans and reduced demand[238](index=238&type=chunk) - SG&A expense for the nine-month period decreased by **$44.7 million** (**15.9%**) YoY, primarily due to reduced payroll from restructuring, lower consultant costs, and lower stock-based compensation[248](index=248&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and investments significantly decreased due to the Cloud Light acquisition and convertible note repayment, though liquidity is deemed sufficient - Cash and cash equivalents decreased by **$434.0 million** during the nine months ended March 30, 2024, primarily due to cash used in financing (**$336.4M**), investing (**$86.8M**), and operating activities (**$10.8M**)[275](index=275&type=chunk) - Major uses of cash included **$700.9 million** for the Cloud Light acquisition and **$323.1 million** for the repayment of the 2024 convertible notes[278](index=278&type=chunk)[280](index=280&type=chunk) - As of March 30, 2024, the company had **$569.6 million** remaining under its share buyback program, with no repurchases made during the nine-month period[272](index=272&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Lumentum faces foreign exchange, equity price, and interest rate risks, with a **1%** rate change impacting its investment portfolio by **$2.7 million** - The company faces foreign currency exchange risk as a portion of its expenses are denominated in currencies such as the Chinese Yuan, Thai Baht, and Japanese Yen[283](index=283&type=chunk) - The fixed-income investment portfolio is subject to interest rate risk. A hypothetical **1%** (100 basis points) change in interest rates would result in a **$2.7 million** change in the portfolio's fair value[287](index=287&type=chunk) - The company is exposed to equity price risk through the conversion options embedded in its outstanding convertible notes (2026, 2028, and 2029 series)[284](index=284&type=chunk)[285](index=285&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Based on an evaluation as of March 30, 2024, the Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective[290](index=290&type=chunk) - No changes occurred during the quarter ended March 30, 2024, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[291](index=291&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal claims, with a **$15.3 million** settlement approved for the Oclaro Merger Litigation - In March 2024, the court approved a settlement of **$15.3 million** for the Karri Lawsuit related to the 2018 Oclaro merger. The company has recorded this amount as an accrued expense[182](index=182&type=chunk)[183](index=183&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) Lumentum faces numerous risks including macroeconomic conditions, supply chain, competition, U.S.-China trade restrictions, and acquisition integration challenges - Key business risks include unfavorable economic conditions, reliance on a limited number of suppliers and customers, supply chain challenges, and intense competition[299](index=299&type=chunk)[302](index=302&type=chunk)[304](index=304&type=chunk) - U.S. trade restrictions, particularly those affecting customers like Huawei, have significantly limited business and negatively impacted revenue. The company stopped the majority of product shipments to its historically largest networking customer in China in early 2024 due to new export regulations[307](index=307&type=chunk)[308](index=308&type=chunk)[310](index=310&type=chunk) - The company faces significant risks related to the integration of its recent acquisition of Cloud Light, including potential difficulties, unforeseen liabilities, and challenges with employee and customer retention[301](index=301&type=chunk)[417](index=417&type=chunk) - The company's ability to service its outstanding convertible notes depends on future performance, and the debt could limit operational flexibility[409](index=409&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Lumentum made no share repurchases during the quarter, with **$569.6 million** remaining available under its buyback program - The company did not repurchase any of its common stock during the third quarter of fiscal 2024[423](index=423&type=chunk) - As of March 30, 2024, **$569.6 million** remains available under the company's share buyback program, which is authorized through May 2025[423](index=423&type=chunk)

Fiscal Third Quarter Highlights: NEWS RELEASE LUMENTUM ANNOUNCES FISCAL THIRD QUARTER 2024 FINANCIAL RESULTS San Jose, Calif., May 6, 2024 – Lumentum Holdings Inc. ("Lumentum" or the "Company") today reported results for its fiscal third quarter ended March 30, 2024. "Lumentum is well-positioned to capitalize on surging cloud data center demand driven by the exponentially increasing requirements of artificial intelligence," said Alan Lowe, President and CEO. "We are making significant strides in developing ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Lumentum (LITE) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 6. On the othe ...

[Table_PicQuote] 股 票 研 究 [Table_MainInfo] [Table_Title] LUMENTUM（LITE） | --- | --- | |----------------------------|------------| | | 信息技术 | | [Table_Invest 评级： ] | 增持 | | 当前价格（美元）： | 47.17 | | | 2024.03.01 | 整体略低预期，下一代产品将受益 | --- | --- | --- | --- | --- | |----------|-----------------------|----------------------|--------------------------------------|---------------| | | 王彦龙 ( 分析师 ) | 黎明聪 ( 分析师 ) | 交易数据 \n52 周内股价区间（美元） | 45.38-60.99 | | | 010-83939775 | 0755-23976500 | 当前股本（百万股） | | | | wangyanlong@gtjas.c ...

Lumentum Holdings Inc. (NASDAQ:LITE) Q2 2024 Earnings Conference Call February 8, 2024 8:30 AM ET Company Participants Kathy Ta - Vice President of Investor Relations Alan Lowe - President and Chief Executive Officer Wajid Ali - Executive Vice President and Chief Financial Officer Chris Coldren - Senior Vice President and Chief Strategy and Corporate Development Officer Conference Call Participants Simon Leopold - Raymond James Alex Henderson - Needham & Company Samik Chatterjee - J.P. Morgan Christopher Ro ...