Lumentum(US:LITE)2025-05-06 20:26Financial Performance - Net revenue for Q3 FY 2025 was $425.2 million, representing a 5.7% increase quarter-over-quarter and a 16.0% increase year-over-year[4]. - GAAP net loss for Q3 FY 2025 was $44.1 million, or $0.64 per diluted share, an improvement from a net loss of $127.0 million, or $1.88 per diluted share in Q3 FY 2024[4][16]. - Non-GAAP net income for Q3 FY 2025 was $40.9 million, or $0.57 per diluted share, compared to $30.0 million, or $0.42 per diluted share in Q2 FY 2025[5]. - GAAP gross margin for Q3 FY 2025 was 28.8%, up from 24.8% in Q2 FY 2025, while non-GAAP gross margin was 35.2%, up from 32.3%[6][7]. - The company expects Q4 FY 2025 net revenue to be in the range of $440 million to $470 million, with non-GAAP operating margin projected at 13.0% to 14.0%[12]. - Gross profit on a GAAP basis for the three months ended March 29, 2025, was $122.5 million, up from $99.6 million in the previous quarter, reflecting a 22.9% increase[25]. - Non-GAAP gross profit for the same period was $149.5 million, compared to $130.0 million, indicating a 15% increase[25]. - Adjusted EBITDA for the three months ended March 29, 2025, was $71.0 million, an increase from $57.6 million in the previous quarter[31]. - GAAP net loss for the three months ended March 29, 2025, was $44.1 million, compared to a loss of $60.9 million for the previous quarter[31]. - Non-GAAP net income for the same period was $40.9 million, with a net income per share of $0.57, up from $30.0 million and $0.42 per share in the prior quarter[31]. Operational Efficiency - Lumentum's operating loss improved to 8.9% in Q3 FY 2025 from 12.8% in Q2 FY 2025, indicating better operational efficiency[6][7]. - Loss from operations on a GAAP basis was $37.7 million, an improvement from a loss of $51.6 million in the previous quarter[25]. - Non-GAAP income from operations was $46.1 million, compared to $31.7 million in the previous quarter, showing a 45.8% increase[25]. Cash and Assets - Total cash, cash equivalents, and short-term investments at the end of Q3 FY 2025 were $866.7 million, a decrease of $30.0 million from Q2 FY 2025[5]. - Total assets increased to $3,975.0 million as of March 29, 2025, up from $3,931.9 million on June 29, 2024, representing a growth of 1.1%[18]. - Total current assets rose to $1,667.3 million, compared to $1,590.1 million, marking a 4.9% increase[18]. - Total liabilities increased to $3,095.5 million from $2,974.6 million, reflecting a rise of 4.1%[18]. Expenses and Charges - Research and development expenses on a GAAP basis were $75.9 million for the quarter, slightly up from $74.2 million[25]. - Selling, general and administrative expenses on a GAAP basis totaled $112.0 million, compared to $76.3 million in the previous quarter, a significant increase of 46.7%[25]. - Stock-based compensation for the three months ended March 29, 2025, included $62.8 million, reflecting expenses from equity award modifications for the former CEO[27]. - Restructuring charges for the three months ended March 29, 2025, amounted to $7.2 million, primarily related to asset write-offs and site closures[27]. - Other charges, net for the three months ended March 29, 2025, totaled $11.6 million, including executive transition costs and bad debt reserves[28]. - Integration related costs for the three months ended March 29, 2025, were $1.4 million, consistent with ongoing integration efforts[31]. Future Outlook - The company anticipates continued financial momentum driven by AI-driven cloud growth despite macroeconomic volatility[3]. - The company’s long-term projected non-GAAP tax rate for fiscal 2025 is set at 16.5%[21]. - The company is focused on innovations in optics and electronics to support AI data center scaling and cloud growth[2][3]. Methodology and Reporting - The company refined its methodology for reporting non-GAAP measures, with no impact on financial position or cash flows[31]. - Shares used in per share calculation - diluted on GAAP basis were 69.3 million for the three months ended March 29, 2025[31].