Lumentum Announces Fiscal Fourth Quarter and Full Year 2024 Results
Lumentum Holdings Inc. (LITE) reported its fiscal fourth quarter and full year 2024 results. Q4 highlights include net revenue of $308.3 million, a GAAP operating loss of 43.3%, and non-GAAP diluted net income per share of $0.06. For the full fiscal year 2024, net revenue was $1.36 billion with a GAAP operating loss of 31.9% and non-GAAP diluted net income per share of $1.01.
The company reported record orders for datacom chips used in data center applications and noted positive trends in the traditional networking market. Lumentum's strategy focuses on broadening its cloud and AI customer base, aiming for accelerated growth in 2025. The company held $887.0 million in total cash and investments at the end of Q4 2024.
For Q1 2025, Lumentum expects net revenue between $315 million and $335 million, with a non-GAAP operating margin of 0% to 3.0% and non-GAAP diluted EPS of $0.07 to $0.17.
Lumentum Holdings Inc. (LITE) ha riportato i risultati del quarto trimestre fiscale e dell'intero anno 2024. Punti salienti del Q4 includono un fatturato netto di 308,3 milioni di dollari, una perdita operativa GAAP del 43,3% e un utile netto diluito non-GAAP per azione di 0,06 dollari. Per l'intero anno fiscale 2024, il fatturato netto è stato di 1,36 miliardi di dollari con una perdita operativa GAAP del 31,9% e un utile netto diluito non-GAAP per azione di 1,01 dollari.
L'azienda ha registrato ordini record per chip datacom utilizzati nelle applicazioni per centri dati e ha notato tendenze positive nel mercato delle reti tradizionali. La strategia di Lumentum si concentra sull'ampliamento della propria base di clienti nel cloud e nell'intelligenza artificiale, puntando a una crescita accelerata nel 2025. Alla fine del Q4 2024, l'azienda ha detenuto 887,0 milioni di dollari in totale di cassa e investimenti.
Per il Q1 2025, Lumentum prevede un fatturato netto compreso tra i 315 milioni e i 335 milioni di dollari, con un margine operativo non-GAAP dal 0% al 3,0% e un utile per azione diluito non-GAAP di 0,07 dollari a 0,17 dollari.
Lumentum Holdings Inc. (LITE) informó sobre los resultados del cuarto trimestre fiscal y del año completo 2024. Aspectos destacados del Q4 incluyen ingresos netos de 308,3 millones de dólares, una pérdida operativa GAAP del 43,3% y un ingreso neto diluido no-GAAP por acción de 0,06 dólares. Para el año fiscal completo 2024, los ingresos netos alcanzaron 1,36 mil millones de dólares, con una pérdida operativa GAAP del 31,9% y un ingreso neto diluido no-GAAP por acción de 1,01 dólares.
La compañía reportó órdenes récord de chips datacom utilizados en aplicaciones de centros de datos y destacó tendencias positivas en el mercado de redes tradicionales. La estrategia de Lumentum se centra en ampliar su base de clientes en la nube y en la inteligencia artificial, con el objetivo de un crecimiento acelerado en 2025. La empresa contaba con 887,0 millones de dólares en efectivo e inversiones al final del Q4 2024.
Para el Q1 2025, Lumentum espera ingresos netos entre 315 millones y 335 millones de dólares, con un margen operativo no-GAAP del 0% al 3,0% y un EPS diluido no-GAAP de 0,07 a 0,17 dólares.
Lumentum Holdings Inc. (LITE)는 2024 회계 연도 4분기 및 전체 연도 결과를 보고했습니다. 4분기 하이라이트에는 3억 830만 달러의 순매출, 43.3%의 GAAP 운영 손실, 0.06달러의 비GAAP 희석 주당 순이익이 포함됩니다. 2024 회계 연도 전체에서는 순매출이 13억 6천만 달러였으며 GAAP 운영 손실은 31.9%, 비GAAP 희석 주당 순이익은 1.01달러였습니다.
회사는 데이터 센터 애플리케이션에 사용되는 데이터 통신 칩에 대한 기록적인 주문을 보고하고 전통적인 네트워킹 시장에서도 긍정적인 추세를 언급했습니다. Lumentum의 전략은 클라우드 및 AI 고객 기반을 확대하는 데 초점을 맞추고 있으며, 2025년에는 빠른 성장을 목표로 하고 있습니다. 2024년 4분기 말 현재 회사는 총 8억 8천7백만 달러의 현금 및 투자를 보유하고 있었습니다.
2025년 1분기에는 Lumentum이 순매출을 3억 1천5백만 달러에서 3억 3천5백만 달러 사이로 예상하고 있으며, 비GAAP 운영 마진은 0%에서 3% 사이, 비GAAP 희석 주당 순이익은 0.07달러에서 0.17달러 사이로 전망하고 있습니다.
Lumentum Holdings Inc. (LITE) a annoncé ses résultats du quatrième trimestre fiscal et de l'année complète 2024. Points saillants du Q4 comprennent un chiffre d'affaires net de 308,3 millions de dollars, une perte d'exploitation GAAP de 43,3% et un bénéfice net dilué non-GAAP par action de 0,06 dollar. Pour l'année fiscale complète 2024, le chiffre d'affaires net s'est élevé à 1,36 milliard de dollars avec une perte d'exploitation GAAP de 31,9% et un bénéfice net dilué non-GAAP par action de 1,01 dollar.
L'entreprise a signalé des commandes record pour des puces datacom utilisées dans les applications de centre de données et a noté des tendances positives sur le marché des réseaux traditionnels. La stratégie de Lumentum vise à élargir sa base de clients dans le cloud et l'IA, avec un objectif de croissance accélérée en 2025. À la fin du Q4 2024, l'entreprise détenait 887,0 millions de dollars en liquidités et investissements.
Pour le Q1 2025, Lumentum prévoit un chiffre d'affaires net compris entre 315 millions et 335 millions de dollars, avec une marge d'exploitation non-GAAP de 0% à 3,0% et un bénéfice par action dilué non-GAAP de 0,07 à 0,17 dollar.
Lumentum Holdings Inc. (LITE) hat die Ergebnisse des vierten Quartals und des gesamten Geschäftsjahres 2024 veröffentlicht. Höhepunkte Q4 sind ein Nettoumsatz von 308,3 Millionen Dollar, ein GAAP-Betriebsverlust von 43,3% und ein nicht-GAAP verwässerter Gewinn je Aktie von 0,06 Dollar. Für das gesamte Geschäftsjahr 2024 betrugen die Nettoumsätze 1,36 Milliarden Dollar, mit einem GAAP-Betriebsverlust von 31,9% und einem nicht-GAAP verwässerten Gewinn je Aktie von 1,01 Dollar.
Das Unternehmen berichtete von Rekordbestellungen für Datacom-Chips, die in Rechenzentrumsanwendungen verwendet werden, und hob positive Trends im traditionellen Netzwerkmarkt hervor. Die Strategie von Lumentum konzentriert sich darauf, die Kundenbasis im Bereich Cloud und KI zu erweitern, mit dem Ziel eines beschleunigten Wachstums im Jahr 2025. Zum Ende des Q4 2024 verfügte das Unternehmen über 887,0 Millionen Dollar an liquiden Mitteln und Investitionen.
Für das Q1 2025 erwartet Lumentum einen Nettoumsatz zwischen 315 Millionen und 335 Millionen Dollar, mit einer nicht-GAAP-Betriebsmasse von 0% bis 3,0% und einem nicht-GAAP verwässerten EPS von 0,07 bis 0,17 Dollar.
- Record orders for datacom chips in data center applications
- Positive trends observed in the traditional networking market
- Q4 2024 results exceeded guidance for both revenue and EPS
- Cash position increased by $16.1 million from Q3 to Q4 2024
- Strategy focused on broadening cloud and AI customer base for future growth
- Q4 2024 net revenue decreased 16.9% year-over-year to $308.3 million
- GAAP operating loss widened to 43.3% in Q4 2024 from 15.1% in Q4 2023
- Full year 2024 net revenue declined 23.1% to $1.36 billion compared to 2023
- Non-GAAP operating margin for Q4 2024 turned negative at -0.3%
- GAAP net loss per share increased to $3.72 in Q4 2024 from $0.88 in Q4 2023
Insights
Lumentum's Q4 and FY2024 results paint a challenging picture. The company reported a significant year-over-year revenue decline of
However, there are some positive signs. Non-GAAP figures show a small profit, with EPS of
Investors should closely monitor Lumentum's strategy to broaden its cloud and AI customer base, which could be important for the projected growth in 2025. The Q1 FY2025 outlook suggests a slight sequential improvement in revenue, but margins remain tight.
Lumentum's performance reflects broader challenges in the tech hardware sector. The significant revenue decline in both Cloud & Networking (
However, the record orders for datacom chips used in data center applications is a bright spot. This aligns with the growing demand for AI and cloud computing infrastructure. Lumentum's focus on broadening its cloud and AI customer base is strategically sound, potentially positioning them for growth as these markets expand.
The company's ability to exceed guidance despite challenging conditions demonstrates effective management. Investors should watch for signs of market share gains and new product traction in the coming quarters, particularly in high-growth areas like AI-related networking solutions.
Fiscal Fourth Quarter Highlights:
-
Net revenue of
$308.3 million -
GAAP operating loss of
43.3% ; Non-GAAP operating loss of0.3% -
GAAP diluted net loss per share of
$3.72 $0.06
Fiscal Year 2024 Highlights:
-
Net revenue of
$1.36 billion -
GAAP operating loss of
31.9% ; Non-GAAP operating margin of2.8% -
GAAP diluted net loss per share of
$8.12 $1.01
“We exceeded our guidance midpoints for both revenue and EPS in the fourth quarter. We booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market,” said Alan Lowe, President and CEO. “We are making significant progress executing our strategy to broaden our cloud and AI customer base, which will lead to accelerated growth in calendar year 2025.”
Fiscal Fourth Quarter Highlights:
Net revenue for the fiscal fourth quarter of 2024 was
Non-GAAP net income for fiscal fourth quarter of 2024 was
The Company held
Full Fiscal Year 2024 Highlights:
Net revenue for fiscal year 2024 was
Non-GAAP net income for fiscal year 2024 was
Cash from operations for the fiscal year of 2024 was
Financial Overview – Fiscal Fourth Quarter Ended June 29, 2024 |
|||||||||||||||
|
GAAP Results ($ in millions) |
||||||||||||||
|
Q4 |
|
Q3 |
|
Q4 |
|
Change |
||||||||
|
FY 2024 |
|
FY 2024 |
|
FY 2023 |
|
Q/Q |
|
Y/Y |
||||||
Net revenue |
$ |
308.3 |
|
|
$ |
366.5 |
|
|
$ |
370.8 |
|
|
(15.9)% |
|
(16.9)% |
GAAP gross margin |
|
16.6 |
% |
|
|
16.2 |
% |
|
|
24.2 |
% |
|
40bps |
|
(760)bps |
GAAP operating loss |
|
(43.3 |
)% |
|
|
(31.3 |
)% |
|
|
(15.1 |
)% |
|
(1,200)bps |
|
(2,820)bps |
|
Non-GAAP Results ($ in millions) |
||||||||||||||
|
Q4 |
|
Q3 |
|
Q4 |
|
Change |
||||||||
|
FY 2024 |
|
FY 2024 |
|
FY 2023 |
|
Q/Q |
|
Y/Y |
||||||
Net revenue |
$ |
308.3 |
|
|
$ |
366.5 |
|
|
$ |
370.8 |
|
|
(15.9)% |
|
(16.9)% |
Non-GAAP gross margin |
|
32.2 |
% |
|
|
32.6 |
% |
|
|
36.7 |
% |
|
(40)bps |
|
(450)bps |
Non-GAAP operating margin (loss) |
|
(0.3 |
)% |
|
|
4.1 |
% |
|
|
9.1 |
% |
|
(440)bps |
|
(940)bps |
Net Revenue by Segment ($ in millions) |
||||||||||||||||||||
|
Q4 |
|
% of |
|
Q3 |
|
Q4 |
|
Change |
|||||||||||
|
FY 2024 |
|
Net Revenue |
|
FY 2024 |
|
FY 2023 |
|
Q/Q |
|
Y/Y |
|||||||||
Cloud & Networking |
$ |
254.7 |
|
82.6 |
% |
|
$ |
313.8 |
|
$ |
286.5 |
|
(18.8 |
)% |
|
(11.1 |
)% |
|||
Industrial Tech |
|
53.6 |
|
|
17.4 |
% |
|
|
52.7 |
|
|
|
84.3 |
|
|
1.7 |
% |
|
(36.4 |
)% |
Total |
$ |
308.3 |
|
|
100.0 |
% |
|
$ |
366.5 |
|
|
$ |
370.8 |
|
|
(15.9 |
)% |
|
(16.9 |
)% |
Financial Overview – Fiscal Year Ended June 29, 2024 |
|||||||||
|
GAAP Results ($ in millions) |
||||||||
|
FY 2024 |
|
FY 2023 |
|
Change Y/Y |
||||
Net revenue |
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
|
(23.1)% |
Gross margin |
|
18.5 |
% |
|
|
32.2 |
% |
|
(1,370)bps |
Operating loss |
|
(31.9 |
)% |
|
|
(6.5 |
)% |
|
(2,540)bps |
|
Non-GAAP Results ($ in millions) |
||||||||
|
FY 2024 |
|
FY 2023 |
|
Change Y/Y |
||||
Net revenue |
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
|
(23.1)% |
Gross margin |
|
33.0 |
% |
|
|
43.2 |
% |
|
(1,020)bps |
Operating margin |
|
2.8 |
% |
|
|
19.2 |
% |
|
(1,640)bps |
|
Net Revenue by Segment ($ in millions) |
||||||||
|
FY 2024 |
|
FY 2023 |
|
Change Y/Y |
||||
Cloud & Networking |
$ |
1,084.9 |
|
$ |
1,322.5 |
|
(18.0)% |
||
Industrial Tech |
|
274.3 |
|
|
|
444.5 |
|
|
(38.3)% |
Total |
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
|
(23.1)% |
The tables above provide comparisons of quarterly and annual results to prior periods, including sequential quarterly and year-over-year changes. A reconciliation between GAAP and non-GAAP measures is contained in this release under the section titled “Use of Non-GAAP Financial Measures.”
Business Outlook
Lumentum expects the following for the fiscal first quarter of 2025:
-
Net revenue in the range of
$315 million $335 million -
Non-GAAP operating margin of
0% -3.0% -
Non-GAAP diluted earnings per share of
$0.07 $0.17
We have not provided reconciliations from GAAP to non-GAAP measures or the equivalent GAAP measure for non-GAAP measures in our outlook, as they cannot be provided without unreasonable effort. A large portion of non-GAAP adjustments, such as restructuring charges, stock-based compensation, non-GAAP income tax reconciling adjustments, acquisition related costs, and other costs and contingencies unrelated to current and future operations are by their nature highly volatile and we have low visibility as to the range that may be incurred in the future.
Conference Call
Lumentum will host a conference call today, August 14, 2024, at 2:30 pm PT / 5:30 pm ET to discuss its fiscal fourth quarter and full year results. A live webcast of the call will be available in the Investors section of the Lumentum website at http://investor.lumentum.com. To listen to the live conference call, dial (833) 470-1428 or (404) 975-4839 and reference the conference ID 819344. Supporting materials outlining the Company’s latest financial results will be posted on http://investor.lumentum.com under the “Events and Presentations” section concurrently with this earnings press release. Lumentum has used, and intends to continue to use, its Investor Relations website as means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. This press release is being furnished as an exhibit to a Current Report on Form 8-K filed with the Securities and Exchange Commission and will be available at http://www.sec.gov/.
About Lumentum
Lumentum (NASDAQ: LITE) is a market-leading designer and manufacturer of innovative optical and photonic products enabling optical networking and laser applications worldwide. Lumentum optical components and subsystems are part of virtually every type of telecom, enterprise, and data center network. Lumentum lasers enable advanced manufacturing techniques and diverse applications including next-generation imaging and sensing capabilities. Lumentum is headquartered in
Forward-Looking Statements
This press release 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, including drivers of that demand and demand relative to supply, our product roadmaps and investments, our market opportunity and expectations for our markets our future revenue and revenue growth and trends in our markets, and our guidance with respect to future net revenue, non-GAAP diluted earnings per share, and non-GAAP operating margins, and related assumptions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Among the factors that could cause actual results to differ from those contemplated are: (a) uncertainty and volatility in the global markets, including uncertainty and volatility in the macroeconomic environment, volatility and uncertainty in banking and financial services sectors, inflationary pressures, changes in the political or economic environment, such as geopolitical conflicts, war, trade and export restrictions and the imposition of tariffs or other duties, and the effect of such market disruptions on demand for our products, technology spending by our customers and our ability to obtain components for our products; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) decline of average selling prices across our businesses or increase in costs, either of which will also decrease our margins; (d) effects of seasonality; (e) the ability of our suppliers and contract manufacturers to meet production, quality, and delivery requirements for our forecasted demand; (f) changes in customer demand, including due to changes in inventory practices and end-customer demand; (g) our ability to attract and retain new customers, particularly in the cloud photonics and imaging and sensing markets; (h) the risk that our markets will not grow or develop as expected or that our strategies and ability to compete in those markets are not successful, (i) the risk that Lumentum’s financing or operating strategies will not be successful; (j) risks related to restructurings and changes to our operations; (k) failure to successfully integrate Cloud Light or other acquisitions into our business or that we will not achieve the expected benefits, and (l) our failure to accurately identify liabilities and risks in Cloud Light’s business. For more information on these and other risks, please refer to the "Risk Factors" section included in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2024 filed with the Securities and Exchange Commission, and in the Company’s other filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2024, which will be filed with the Securities and Exchange Commission. The forward-looking statements contained in this presentation are made as of the date hereof and the Company assumes no obligation to update such statements, except as required by applicable law.
The following financial tables are presented in accordance with GAAP, unless otherwise specified.
LUMENTUM HOLDINGS INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in millions, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
Net revenue |
$ |
308.3 |
|
|
$ |
370.8 |
|
|
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
Cost of sales |
|
234.9 |
|
|
|
263.2 |
|
|
|
1,023.8 |
|
|
|
1,113.6 |
|
Amortization of acquired developed intangibles |
|
22.1 |
|
|
|
18.0 |
|
|
|
83.9 |
|
|
|
84.4 |
|
Gross profit |
|
51.3 |
|
|
|
89.6 |
|
|
|
251.5 |
|
|
|
569.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
73.2 |
|
|
|
73.9 |
|
|
|
302.2 |
|
|
|
307.8 |
|
Selling, general and administrative |
|
74.9 |
|
|
|
68.3 |
|
|
|
310.7 |
|
|
|
348.8 |
|
Restructuring and related charges |
|
36.6 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Total operating expenses |
|
184.7 |
|
|
|
145.5 |
|
|
|
685.5 |
|
|
|
684.7 |
|
Loss from operations |
|
(133.4 |
) |
|
|
(55.9 |
) |
|
|
(434.0 |
) |
|
|
(115.7 |
) |
Interest expense |
|
(5.4 |
) |
|
|
(9.4 |
) |
|
|
(33.8 |
) |
|
|
(35.5 |
) |
Other income, net |
|
11.3 |
|
|
|
19.9 |
|
|
|
62.1 |
|
|
|
48.8 |
|
Loss before income taxes |
|
(127.5 |
) |
|
|
(45.4 |
) |
|
|
(405.7 |
) |
|
|
(102.4 |
) |
Income tax provision |
|
125.0 |
|
|
|
14.8 |
|
|
|
140.8 |
|
|
|
29.2 |
|
Net loss |
$ |
(252.5 |
) |
|
$ |
(60.2 |
) |
|
$ |
(546.5 |
) |
|
$ |
(131.6 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(3.72 |
) |
|
$ |
(0.88 |
) |
|
$ |
(8.12 |
) |
|
$ |
(1.93 |
) |
Diluted |
$ |
(3.72 |
) |
|
$ |
(0.88 |
) |
|
$ |
(8.12 |
) |
|
$ |
(1.93 |
) |
|
|
|
|
|
|
|
|
||||||||
Shares used to compute net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
67.8 |
|
|
|
68.3 |
|
|
|
67.3 |
|
|
|
68.3 |
|
Diluted |
|
67.8 |
|
|
|
68.3 |
|
|
|
67.3 |
|
|
|
68.3 |
|
LUMENTUM HOLDINGS INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in millions, except per share data) |
|||||||
(unaudited) |
|||||||
|
June 29, 2024 |
|
July 1, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
436.7 |
|
|
$ |
859.0 |
|
Short-term investments |
|
450.3 |
|
|
|
1,154.6 |
|
Accounts receivable, net |
|
194.7 |
|
|
|
246.1 |
|
Inventories |
|
398.4 |
|
|
|
408.6 |
|
Prepayments and other current assets |
|
110.0 |
|
|
|
109.6 |
|
Total current assets |
|
1,590.1 |
|
|
|
2,777.9 |
|
Property, plant and equipment, net |
|
572.5 |
|
|
|
489.5 |
|
Operating lease right-of-use assets, net |
|
72.8 |
|
|
|
77.3 |
|
Goodwill |
|
1,055.8 |
|
|
|
695.1 |
|
Other intangible assets, net |
|
617.5 |
|
|
|
459.2 |
|
Deferred tax asset |
|
10.7 |
|
|
|
116.3 |
|
Other non-current assets |
|
12.5 |
|
|
|
16.8 |
|
Total assets |
$ |
3,931.9 |
|
|
$ |
4,632.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
126.3 |
|
|
$ |
169.4 |
|
Accrued payroll and related expenses |
|
36.1 |
|
|
|
39.4 |
|
Accrued expenses |
|
52.4 |
|
|
|
51.2 |
|
Convertible notes, current |
|
— |
|
|
|
311.6 |
|
Operating lease liabilities, current |
|
13.4 |
|
|
|
14.4 |
|
Other current liabilities |
|
41.1 |
|
|
|
47.8 |
|
Total current liabilities |
|
269.3 |
|
|
|
633.8 |
|
Convertible notes, non-current |
|
2,503.2 |
|
|
|
2,500.0 |
|
Operating lease liabilities, non-current |
|
43.0 |
|
|
|
47.7 |
|
Deferred tax liability |
|
55.7 |
|
|
|
3.4 |
|
Other non-current liabilities |
|
103.4 |
|
|
|
91.4 |
|
Total liabilities |
|
2,974.6 |
|
|
|
3,276.3 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
1,835.0 |
|
|
|
1,692.2 |
|
Accumulated deficit |
|
(887.1 |
) |
|
|
(340.6 |
) |
Accumulated other comprehensive income |
|
9.3 |
|
|
|
4.1 |
|
Total stockholders’ equity |
|
957.3 |
|
|
|
1,355.8 |
|
Total liabilities and stockholders’ equity |
$ |
3,931.9 |
|
|
$ |
4,632.1 |
|
Use of Non-GAAP Financial Measures
In this press release, Lumentum provides investors with certain non-GAAP financial measures: gross profit, gross margin, research and development expense, selling, general and administrative expense, operating margin (loss), income (loss) from operations, interest and other income (expense), net, income before income taxes, provision for income taxes, net income (loss), and net income (loss) per share on a non-GAAP basis, as well as the non-GAAP measures of EBITDA and Adjusted EBITDA. Lumentum believes this non-GAAP financial information provides additional insight into the Company’s on-going business operations and results, as well as cash generation, and has therefore chosen to provide this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons. In addition, the Company believes that providing certain of these measures allows investors to better understand the Company’s operating performance and cash flows and, importantly, to evaluate the methodology and information used by management to monitor, manage, evaluate and measure the Company’s business, results of operations, and cash flows. However, these measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The non-GAAP financial measures used in this press release should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future. Further, these non-GAAP financial measures may not be comparable to similarly titled measurements reported by other companies.
Our non-GAAP measures used in this press release exclude (i) stock-based compensation, (ii) acquisition related stock-based compensation, (iii) acquisition related costs, (iv) amortization of acquired intangibles, (v) amortization of acquired inventory fair value adjustments, (vi) restructuring and related charges, (vii) foreign exchange (gains) losses, net, (viii) non-cash interest expense on convertible notes, (ix) gain on repurchase of convertible notes, (x) non-recurring expenses related to litigation matters, (xi) intangible assets write-off, (xii) integration related costs, (xiii) abnormal excess capacity, (xiv) foreign exchange gains and losses, (xv) non-GAAP income tax reconciling adjustments, and (xvi) other (gains) charges related to non-recurring activities.
We utilize a long-term projected non-GAAP tax rate to compute our non-GAAP income tax provision. The long-term projected non-GAAP tax rate is based on a multi-year projection of our estimated annual GAAP income tax forecast, adjusted to account for the tax effect of non-GAAP pretax adjustments as well as the effects of significant non-recurring and period specific tax items. Our non-GAAP tax provision for fiscal year 2024 is
A quantitative reconciliation between GAAP and non-GAAP financial data with respect to historical periods is included in the supplemental financial table attached to this press release.
LUMENTUM HOLDINGS INC. |
|||||||||||||||||||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES |
|||||||||||||||||||
(in millions, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
June 29,
|
|
March 30,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit on GAAP basis |
$ |
51.3 |
|
|
$ |
59.5 |
|
|
$ |
89.6 |
|
|
$ |
251.5 |
|
|
$ |
569.0 |
|
Stock-based compensation |
|
8.2 |
|
|
|
8.5 |
|
|
|
11.0 |
|
|
|
31.7 |
|
|
|
30.1 |
|
Integration related costs |
|
4.6 |
|
|
|
6.4 |
|
|
|
2.6 |
|
|
|
24.5 |
|
|
|
12.1 |
|
Amortization of acquired intangibles |
|
22.1 |
|
|
|
22.3 |
|
|
|
18.0 |
|
|
|
83.9 |
|
|
|
84.4 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
6.8 |
|
|
|
— |
|
|
|
6.8 |
|
Other charges, net (2) |
|
6.0 |
|
|
|
5.8 |
|
|
|
8.1 |
|
|
|
28.3 |
|
|
|
43.3 |
|
Gross profit on non-GAAP basis |
$ |
99.2 |
|
|
$ |
119.3 |
|
|
$ |
136.1 |
|
|
$ |
448.9 |
|
|
$ |
763.5 |
|
Gross margin on non-GAAP basis |
|
32.2 |
% |
|
|
32.6 |
% |
|
|
36.7 |
% |
|
|
33.0 |
% |
|
|
43.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development on GAAP basis |
$ |
73.2 |
|
|
$ |
77.2 |
|
|
$ |
73.9 |
|
|
$ |
302.2 |
|
|
$ |
307.8 |
|
Stock-based compensation |
|
(8.0 |
) |
|
|
(9.8 |
) |
|
|
(10.2 |
) |
|
|
(38.1 |
) |
|
|
(41.4 |
) |
Integration related costs |
|
— |
|
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.7 |
) |
|
|
(1.9 |
) |
Amortization of acquired intangibles |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(1.5 |
) |
|
|
— |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
(1.4 |
) |
|
|
— |
|
|
|
(12.9 |
) |
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
Other charges, net |
|
0.1 |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
(1.1 |
) |
|
|
(2.6 |
) |
Research and development on non-GAAP basis |
$ |
64.9 |
|
|
$ |
66.2 |
|
|
$ |
61.7 |
|
|
$ |
260.4 |
|
|
$ |
249.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative on GAAP basis |
$ |
74.9 |
|
|
$ |
77.7 |
|
|
$ |
68.3 |
|
|
$ |
310.7 |
|
|
$ |
348.8 |
|
Stock-based compensation |
|
(14.3 |
) |
|
|
(13.3 |
) |
|
|
(10.9 |
) |
|
|
(59.0 |
) |
|
|
(65.0 |
) |
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11.9 |
) |
Acquisition related (costs) reversal |
|
0.2 |
|
|
|
(0.5 |
) |
|
|
4.7 |
|
|
|
(12.9 |
) |
|
|
(11.5 |
) |
Integration related costs |
|
(2.8 |
) |
|
|
(3.4 |
) |
|
|
(6.2 |
) |
|
|
(11.9 |
) |
|
|
(14.6 |
) |
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7.8 |
) |
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
(1.6 |
) |
|
|
— |
|
|
|
(1.6 |
) |
Amortization of acquired intangibles |
|
(19.4 |
) |
|
|
(19.4 |
) |
|
|
(11.4 |
) |
|
|
(65.2 |
) |
|
|
(43.3 |
) |
Other charges, net (2) |
|
(3.5 |
) |
|
|
(3.0 |
) |
|
|
(2.2 |
) |
|
|
(11.0 |
) |
|
|
(17.8 |
) |
Selling, general and administrative on non-GAAP basis |
$ |
35.1 |
|
|
$ |
38.1 |
|
|
$ |
40.7 |
|
|
$ |
150.7 |
|
|
$ |
175.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from operations on GAAP basis |
$ |
(133.4 |
) |
|
$ |
(114.6 |
) |
|
$ |
(55.9 |
) |
|
$ |
(434.0 |
) |
|
$ |
(115.7 |
) |
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
136.5 |
|
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.9 |
|
Acquisition related costs (reversal) |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges (3) |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Other charges, net (2) |
|
9.4 |
|
|
|
9.2 |
|
|
|
10.3 |
|
|
|
40.4 |
|
|
|
63.7 |
|
Income (loss) from operations on non-GAAP basis |
$ |
(0.8 |
) |
|
$ |
15.0 |
|
|
$ |
33.7 |
|
|
$ |
37.8 |
|
|
$ |
339.2 |
|
Operating margin (loss) on non-GAAP basis |
|
(0.3 |
)% |
|
|
4.1 |
% |
|
|
9.1 |
% |
|
|
2.8 |
% |
|
|
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other income, net on GAAP basis |
$ |
5.9 |
|
|
$ |
7.2 |
|
|
$ |
10.5 |
|
|
$ |
28.3 |
|
|
$ |
13.3 |
|
Foreign exchange gains, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
(2.6 |
) |
|
|
(0.7 |
) |
|
|
(7.0 |
) |
Gain on repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Non-cash interest expense on convertible notes and other expenses |
|
0.7 |
|
|
|
4.5 |
|
|
|
6.4 |
|
|
|
14.9 |
|
|
|
24.3 |
|
Interest and other income, net on non-GAAP basis |
$ |
5.4 |
|
|
$ |
8.0 |
|
|
$ |
13.3 |
|
|
$ |
42.5 |
|
|
$ |
29.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss before income taxes on GAAP basis |
$ |
(127.5 |
) |
|
$ |
(107.4 |
) |
|
$ |
(45.4 |
) |
|
$ |
(405.7 |
) |
|
$ |
(102.4 |
) |
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
136.5 |
|
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.9 |
|
Acquisition related costs (reversal) |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges (3) |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Foreign exchange gains, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
(2.6 |
) |
|
|
(0.7 |
) |
|
|
(7.0 |
) |
Gain on repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Non-cash interest expense on convertible notes and other expenses |
|
0.7 |
|
|
|
4.5 |
|
|
|
6.4 |
|
|
|
14.9 |
|
|
|
24.3 |
|
Other charges, net (2) |
|
9.4 |
|
|
|
9.2 |
|
|
|
10.3 |
|
|
|
40.4 |
|
|
|
63.7 |
|
Income before income taxes on non-GAAP basis |
$ |
4.6 |
|
|
$ |
23.0 |
|
|
$ |
47.0 |
|
|
$ |
80.3 |
|
|
$ |
368.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision on GAAP basis |
$ |
125.0 |
|
|
$ |
19.6 |
|
|
$ |
14.8 |
|
|
$ |
140.8 |
|
|
$ |
29.2 |
|
Non-GAAP income tax reconciling adjustments (4) |
|
(124.4 |
) |
|
|
(16.2 |
) |
|
|
(8.0 |
) |
|
|
(129.2 |
) |
|
|
24.3 |
|
Income tax provision on non-GAAP basis |
$ |
0.6 |
|
|
$ |
3.4 |
|
|
$ |
6.8 |
|
|
$ |
11.6 |
|
|
$ |
53.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss on GAAP basis |
$ |
(252.5 |
) |
|
|
(127.0 |
) |
|
|
(60.2 |
) |
|
$ |
(546.5 |
) |
|
$ |
(131.6 |
) |
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
136.5 |
|
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.9 |
|
Acquisition related costs (reversal) |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges (3) |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Foreign exchange gains, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
(2.6 |
) |
|
|
(0.7 |
) |
|
|
(7.0 |
) |
Gain on repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Non-cash interest expense on convertible notes and other expenses |
|
0.7 |
|
|
|
4.5 |
|
|
|
6.4 |
|
|
|
14.9 |
|
|
|
24.3 |
|
Other charges, net (2) |
|
9.4 |
|
|
|
9.2 |
|
|
|
10.3 |
|
|
|
40.4 |
|
|
|
63.7 |
|
Non-GAAP income tax reconciling adjustments (4) |
|
124.4 |
|
|
|
16.2 |
|
|
|
8.0 |
|
|
|
129.2 |
|
|
|
(24.3 |
) |
Net income on non-GAAP basis |
$ |
4.0 |
|
|
$ |
19.6 |
|
|
$ |
40.2 |
|
|
$ |
68.7 |
|
|
$ |
315.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share on non-GAAP basis |
$ |
0.06 |
|
|
$ |
0.29 |
|
|
$ |
0.59 |
|
|
$ |
1.01 |
|
|
$ |
4.56 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in per share calculation - diluted on GAAP basis |
|
67.8 |
|
|
|
67.5 |
|
|
|
68.3 |
|
|
|
67.3 |
|
|
|
68.3 |
|
Non-GAAP adjustment (5) |
|
0.5 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.8 |
|
Shares used in per share calculation - diluted on non-GAAP basis |
|
68.3 |
|
|
|
68.1 |
|
|
|
68.6 |
|
|
|
67.7 |
|
|
|
69.1 |
|
| (1) Abnormal excess capacity for the three and twelve months ended June 29, 2024 represents excess capacity attributable to a near-term reduction in our manufacturing production, primarily driven by our non-recurring inventory reduction effort following the disruptions in the supply chain due to the COVID-19 pandemic and factory consolidation efforts. | |
| (2) Other charges, net for the three months ended June 29, 2024 primarily relate to a |
|
| Other charges, net for the twelve months ended June 29, 2024 primarily relate to |
|
| (3) We discontinued in-house development of coherent digital signal processors (“DSPs”) and radio-frequency integrated circuits (“RFICs”). As a result, we recorded |
|
| (4) The non-GAAP income tax reconciling adjustments for the three months ended June 29, 2024 include |
|
| (5) Shares used for net income per share on non-GAAP basis include incremental dilutive shares that would occur upon conversion of our convertible notes assuming we settle the face value of the notes in cash as the Company intends, and shares related to restricted stock units (“RSUs”) and shares issuable under our Employee Stock Purchase Plan that are anti-dilutive on GAAP basis. | |
LUMENTUM HOLDINGS INC. |
|||||||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA |
|||||||||||||||||||
(in millions, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
June 29,
|
|
March 30,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
||||||||||
GAAP net loss |
$ |
(252.5 |
) |
|
$ |
(127.0 |
) |
|
$ |
(60.2 |
) |
|
$ |
(546.5 |
) |
|
$ |
(131.6 |
) |
Interest and other income, net |
|
(5.9 |
) |
|
|
(7.2 |
) |
|
|
(10.5 |
) |
|
|
(28.3 |
) |
|
|
(13.3 |
) |
Income tax provision |
|
125.0 |
|
|
|
19.6 |
|
|
|
14.8 |
|
|
|
140.8 |
|
|
|
29.2 |
|
Depreciation |
|
28.2 |
|
|
|
27.0 |
|
|
|
28.0 |
|
|
|
110.6 |
|
|
|
106.6 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
EBITDA |
|
(63.3 |
) |
|
|
(45.5 |
) |
|
|
1.5 |
|
|
|
(172.8 |
) |
|
|
118.6 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
148.4 |
|
Acquisition related costs |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Abnormal excess capacity |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Other charges, net |
|
7.9 |
|
|
|
8.2 |
|
|
|
8.0 |
|
|
|
32.5 |
|
|
|
57.4 |
|
Adjusted EBITDA |
$ |
25.9 |
|
|
$ |
41.0 |
|
|
$ |
59.4 |
|
|
$ |
140.5 |
|
|
$ |
431.7 |
|
Category: Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814894445/en/
Investors: Kathy Ta, (408) 750-3853; investor.relations@lumentum.com
Media: Noël Bilodeau, 408-439-2140; noel.bilodeau@lumentum.com
Source: Lumentum
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