Q4 FY24 Conference Call August 14, 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 and their end customers, inc ...

Lumentum Holdings Inc. (NASDAQ:LITE) Q4 2024 Earnings Conference Call August 14, 2024 5:30 PM ET Company Participants Kathy Ta - Vice President, Investor Relations Alan Lowe - President & Chief Executive Officer Wajid Ali - Executive Vice President & Chief Financial Officer Chris Coldren - Senior Vice President, Chief Strategy & Corporate Development Officer Conference Call Participants Samik Chatterjee - JP Morgan Alex Henderson - Needham and Company Simon Leopold - Raymond James. George Notter - Jefferies ...

Lumentum (LITE) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this optical networking products maker would post earnings of $0.26 per share when it actually produced earnings of $0.29, delivering a surprise of 11.54%. Over the last four quar ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number 001-36861 Lumentum Holdings Inc. (Exact name of Registrant as specified in its charter) Delaware 47-3108385 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 March 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (State or other jurisdi ...

Q3 FY24 Conference Call 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 markets, customers and industry, any anticipation or guidance as to demand for our products and technology from our customers and their end customers, including drivers of that demand and the timing of the increased capex spending ...