Lumentum(US:LITE) Huachuang Securities·2024-08-17 08:07Investment Rating - The report assigns a rating of "Hold" for Lumentum, indicating a cautious outlook on the company's performance in the near term while recognizing potential for long-term growth [2]. Core Insights - Lumentum's FY2024Q4 revenue was $308.3 million, a decrease of 15.9% quarter-over-quarter, with a GAAP net loss of $252.5 million. Non-GAAP net profit was $4 million, down 79.6% from the previous quarter, resulting in a diluted EPS of $0.06 [5][11]. - The company expects FY2025Q1 revenue to be between $315 million and $330 million, indicating year-over-year growth. The cloud computing and networking segments are anticipated to continue their growth trajectory, while industrial technology revenue is expected to remain flat [11][12]. - Lumentum's chip business has seen record bookings, with expectations of increased capacity and production in 2025, aiming for quarterly revenues of $500 million by the end of that year [12][20]. Summary by Sections 1. FY2024Q4 Operational Performance - Lumentum reported a revenue of $308.3 million for FY2024Q4, with a GAAP net loss of $252.5 million and a non-GAAP net profit of $4 million, reflecting a significant decline in profitability [5][15]. - The non-GAAP gross margin for Q4 was 32.2%, showing a decrease due to reduced revenue [14][15]. 2. Revenue by Segment - The cloud and networking segment generated $254.7 million, down 11.1% year-over-year, while the industrial technology segment brought in $53.6 million, a decline of 36.4% [8][15]. 3. FY2025Q1 Guidance - The company anticipates FY2025Q1 revenue between $315 million and $330 million, with non-GAAP operating margins projected between 0% and 3% [11][12]. - The growth in cloud computing and networking is attributed to improved telecom network demand, while industrial technology is expected to remain stable [11][12]. 4. Market and Technology Developments - Lumentum's 100G EML components have reached record shipment levels, and the company is positioned to become a key supplier for 1.6T optical modules [12][14]. - The company is expanding production capacity outside of China, particularly in Thailand, to meet growing demand for its products [12][20]. 5. Future Outlook - Lumentum aims to achieve quarterly revenues of $500 million by the end of 2025, driven by growth in cloud computing and AI-related opportunities [12][14]. - The company is focusing on enhancing its production capabilities and ensuring supply chain security to support its growth objectives [12][20].