UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36861 Lumentum Holdings Inc. (Exact name of Registrant as specified in its charter) Delaware 47-3108385 (State or other jur ...

Q1 FY25 Conference Call November 7, 2024 / LUMENTUM Forward Looking Statements and Financial Presentation This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements regarding: our belief and expectations with respect to our strategies, our technology, any anticipation or guidance as to demand for our products and technology from our customers, including drivers of that ...

NEWS RELEASE LUMENTUM ANNOUNCES FISCAL FIRST QUARTER 2025 FINANCIAL RESULTS • Net revenue of $336.9 million • GAAP gross margin of 23.1%; Non-GAAP gross margin of 32.8% • GAAP operating loss of 24.5%; Non-GAAP operating margin of 3.0% • GAAP diluted net loss per share of $1.21; Non-GAAP diluted net income per share of $0.18 San Jose, Calif., November 7, 2024 – Lumentum Holdings Inc. ("Lumentum" or the "Company") today reported results for its fiscal first quarter ended September 28, 2024. "In the first quar ...

CONFERENCE CALL FOR INVESTORS NOVEMBER 7, 2024, AT 1:00 PM EDT Third Quarter Fiscal 2024 Highlights Revenue of US$3.8 million, a 14% Increase Over the Year Ago Period Adjusted EBITDA(1) of approximately US$187,000 Free Cash Flow(1) of approximately US$636,000 Strong Balance Sheet; US$2.6 million in Cash and No Debt Outstanding Bookings of US$3.9 million, Book-to-Bill Ratio of 1.03 Year To Date Fiscal 2024 Highlights Revenue of US$12.4 million, an Increase of 36% Over the Year Ago Period Adjusted EBITDA(1) o ...

Following my coverage on Lumentum Holdings (NASDAQ: LITE ) in Feb'24, which I recommended a buy rating on due to my expectation that the inventory headwind was not a structural issue and that the long-term growth outlook remained I take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propen ...

Ecosystem Enables Cloud Operators to Optimally Scale Regional Data Center Connectivity for the AI Era SANTA CLARA, Calif., Sept. 5, 2024 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, Lumentum Holdings Inc., a market-leading designer and manufacturer of innovative optical and photonic products, and Coherent Corp., a leader in compound semiconductors and high-speed optical networking technology today announced the successful interoperability ...

Economic and Market Risks - The company's business operations are subject to risks including unfavorable economic conditions, reliance on limited suppliers, and supply chain constraints[64] - Global macroeconomic volatility, inflation, and geopolitical instability continue to adversely impact the company's operating results[67] - Customer demand for the company's products may be impacted by weak economic conditions, inflation, and rising interest rates[73] - Inflation and increased borrowing costs could impact the company's cash flows and profitability by raising overall costs and interest rates[79] - The company's backlog may not be a reliable indicator of future revenues due to changing customer behaviors and macroeconomic factors[81] - Spending on optical communication and laser products is cyclical, leading to unpredictable financial results and potential stock price volatility[146] - Stock price volatility may be influenced by economic conditions, market speculation, and fluctuations in operating results[181] Supply Chain and Manufacturing Risks - Supply chain disruptions have led to increased costs and harmed the company's ability to meet customer demand, affecting revenue and profitability[68] - The company depends on a limited number of suppliers, and any failure or delay by these suppliers could adversely affect its business and results[69] - Supply chain constraints, including semiconductor shortages, have led to extended lead times and reduced revenue recognition[85] - Accelerated ordering by customers has resulted in inventory backlog, leading to reduced ordering and unpredictable revenue patterns[85] - Supply chain disruptions have increased shipping costs and delayed component deliveries[99] - Manufacturing facilities in China, Japan, Thailand, UK, and San Jose are critical, with some components and finished goods being sole-sourced[104] - Reliance on contract manufacturers poses risks including reduced control over delivery schedules, quality assurance, and data security breaches[105] - Natural disasters, health crises, and labor unrest could severely impact manufacturing operations and contract manufacturers[108] - Non-cancellable purchase commitments with contract manufacturers may lead to increased costs if customer forecasts do not materialize[109] - Suppliers in China are subject to changing laws and regulations, potentially increasing costs and requiring operational changes[110] Regulatory and Compliance Risks - The company's ability to sell products to Huawei has been restricted due to U.S. export regulations, negatively impacting revenue and financial condition[74][75] - Export controls and licensing requirements could restrict the company's ability to sell products in certain countries, potentially reducing revenue[163][164] - The company is unable to supply products to Huawei due to U.S. regulatory restrictions, impacting business operations[165] - Compliance with environmental, social, and governance (ESG) regulations may increase costs and complexity in the supply chain[168] - Climate change regulations could lead to increased capital expenditures and higher costs for raw materials[170][171] - The company is subject to stringent data protection laws, including GDPR, CCPA, and CPRA, which may require significant compliance costs[176] - AI-related regulatory frameworks in the US, EU, and China could increase business costs and compliance risks, potentially impacting financial condition[178] - Legal and regulatory changes may increase monitoring and compliance costs, risking non-compliance and potential sanctions[180] Financial and Operational Risks - Disruptions in access to bank deposits or lending commitments due to bank failures could materially affect the company's liquidity and financial condition[80] - Gross margins and operating margins are expected to vary due to factors like demand fluctuations, product mix changes, and increased price competition[82][83] - Component cost increases, logistics costs, and pricing pressure have negatively impacted gross margins[84] - Rapid technological change and intense competition require continuous innovation to maintain revenue and profitability[87] - Customer concentration remains a risk, with a small number of customers accounting for a significant portion of sales[91] - International operations face risks from currency fluctuations, trade tensions, and geopolitical unrest[95][98] - Pricing pressure in the optical communications market has intensified due to commoditization and competition[90] - New product introductions require significant investment, with risks of delays and uncertain market acceptance[87] - Risks related to pandemics and epidemics could disrupt operations in Asia, affecting travel, product distribution, and facility closures[100] - Product defects could lead to significant costs, diversion of resources, and loss of customers[114] - Tariffs and trade policies between the US and China could materially impact the company's business and results of operations[115] - Strategic transactions, including acquisitions, carry risks such as regulatory hurdles, litigation, and integration challenges[118] - Challenges in integrating acquisitions include preserving customer relationships, completing R&D projects, and managing unexpected liabilities[120] - Manufacturing yield reductions due to changes in customer specifications and increased rejection rates can negatively impact gross margins[124] - Restructuring activities, including workforce reductions, may result in special charges and disrupt business operations[125] - International restructuring in fiscal 2023 may face tax authority challenges, potentially increasing the effective tax rate[127] - The Inflation Reduction Act introduces a 15% corporate alternative minimum tax and a 1% excise tax on stock repurchases, which could impact financial results[129] - Foreign currency fluctuations, particularly in the U.K. pound sterling, Chinese yuan, and Thai baht, could materially affect operating results[133] - A widespread health crisis, such as COVID-19, could significantly reduce demand for products and disrupt supply chains[136] - Information technology infrastructure failures or security breaches could adversely impact business operations[141] - The company relies on third-party providers for IT infrastructure, including ERP systems, and any failure in these services could materially harm the business[143] - Cybersecurity threats, including hacking and ransomware, have increased due to remote work and geopolitical tensions, posing risks to the company's systems and data[143] - The company faces compliance challenges with new data protection laws like GDPR, CCPA, and China's Personal Information Protection Law, increasing compliance costs[143] - The company's intellectual property protection efforts may not prevent misappropriation or competition, especially in regions with weaker IP laws[147] - The company may face significant costs and liabilities from cybersecurity breaches, including reputational damage and legal claims[144][145] - The company's reliance on third-party technology licenses could impact product development and revenue if licenses become unavailable or costly[156][157] - The company faces litigation risks, including patent and trademark infringement claims, which could result in significant expenses and operational disruptions[152][153] - The company must maintain effective internal controls over financial reporting to comply with Sarbanes-Oxley Act and Nasdaq listing requirements[158] - Failure to maintain financial reporting controls could lead to delayed reporting, regulatory investigations, and loss of investor confidence[159] - 31% of the company's U.S. workforce consists of foreign nationals who are not U.S. citizens or permanent residents[161] - The company faces intense competition for highly qualified engineers and specialized sales personnel, particularly in Silicon Valley[160] - Changes in immigration laws and procedures could negatively impact the company's ability to hire and retain foreign workers[162] - The company faces reputational risks if it fails to meet ESG-related initiatives or commitments[169] - Export restrictions on customers and suppliers could disrupt the company's supply chain and increase costs[166] Financial Performance and Capital Structure - The company issued $603.7 million in aggregate principal amount of 2029 Notes in June 2023 to support business growth[134] - Foreign exchange gains of $0.8 million in fiscal 2024, $7.0 million in fiscal 2023, and losses of $6.1 million in fiscal 2022 due to currency fluctuations[302] - Convertible notes issued with principal amounts of $603.7 million (2029 Notes), $861.0 million (2028 Notes), and $1,050.0 million (2026 Notes)[304] - Cash, cash equivalents, and short-term investments totaled $887.0 million as of June 29, 2024[305] - A 1% interest rate change would impact the fair value of the investment portfolio by approximately $2.4 million[305] - Unrestricted cash in operating accounts amounted to $196.9 million as of June 29, 2024[306] - Potential dilution of common stock ownership if convertible notes are converted into shares[185] - No current plans to pay dividends on common stock, with future decisions dependent on financial condition and other factors[186]

Core Viewpoint - Lumentum Holdings has experienced a significant rebound in stock price following its fiscal fourth-quarter earnings report, despite reporting a year-on-year revenue decline and an operating loss in GAAP terms [1][2]. Financial Performance - Lumentum reported a revenue of $308.3 million for Q4 FY24, down 16.9% year-on-year, with a non-GAAP earnings of $0.06 per share and a GAAP diluted net loss of $3.72 per share [2][3]. - The company’s revenue from the cloud and networking segment was $254.7 million, down from $286.5 million in Q4 FY23, while industrial tech revenue was $53.6 million, down from $84.3 million in the same period [3]. Segment Insights - The cloud and networking segment showed a profit margin of 10.1% in Q4 FY24, down from 17.7% in Q4 FY23, indicating a decline in profitability [3]. - Lumentum is focusing on expanding its cloud customer base and scaling up component and module capacity for AI solutions, which is expected to drive future growth [2][3]. Future Guidance - For Q1 FY25, Lumentum is guiding net revenue between $315 million and $335 million, with a non-GAAP operating margin projected to be between 0% and 3% [4][5]. - Management anticipates improved gross margins due to better manufacturing utilization driven by an improved telecom outlook and increased Datacom laser shipments [4][5]. Market Opportunities - The company sees Datacom as a potential revenue driver, with initial shipments from Thailand expected to start in the current quarter [7]. - Telecom demand is recovering faster than expected, with strong demand for new ROADM products and initial shipments of Coherent components [8]. Competitive Positioning - Lumentum is viewed favorably in terms of valuation compared to peers like Infinera and F5, although it has underperformed in stock momentum [9].

证 券 研 究 报 告 会议纪要 通信 2024 年 08 月 17 日 | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------| | | Lumentum （ LITE ） FY24Q4 业绩点评及业绩说明会纪要 100G EML 出货量创历史新高，磷化铟产能 紧张 | 会议时间： 2024.8.15 会议地点：线上 | | | 事项： | 华创证券研究所 | | | 2024 年 ...

Lumentum Holdings Inc. LITE shares are trading higher after the company reported fourth-quarter results and several analysts raised the price target on the stock. On Wednesday, the company reported net revenue of $308.3 million, beating the consensus of $300.8 million, and adjusted EPS of $0.06, which surpassed the street view of $0.03. Lumentum expects first-quarter net revenue of $315 million – $335 million (vs. consensus of $312.57 million), adjusted operating margin of 0% – 3%, and adjusted EPS of $0.07 ...