Lumentum Announces Fiscal Second Quarter 2025 Financial Results
Lumentum (LITE) reported fiscal Q2 2025 results with net revenue of $402.2 million, exceeding guidance expectations. The company achieved a GAAP gross margin of 24.8% and non-GAAP gross margin of 32.3%. Despite a GAAP operating loss of 12.8%, the non-GAAP operating margin was positive at 7.9%.
Quarter highlights include a GAAP net loss of $0.88 per diluted share and non-GAAP net income of $0.42 per diluted share. The Cloud & Networking segment generated $339.2 million (84.3% of revenue), while Industrial Tech contributed $63.0 million (15.7%). The company maintains $896.7 million in cash and equivalents.
Looking forward, Lumentum projects Q3 2025 revenue between $410-425 million with non-GAAP operating margin of 9.5-10.5% and earnings per share of $0.47-0.53. The company remains confident in reaching its $500 million quarterly revenue target by end of 2025.
Lumentum (LITE) ha riportato i risultati del secondo trimestre fiscale 2025 con un fatturato netto di $402,2 milioni, superando le aspettative previste. L'azienda ha raggiunto un margine lordo GAAP del 24,8% e un margine lordo non-GAAP del 32,3%. Nonostante una perdita operativa GAAP del 12,8%, il margine operativo non-GAAP è stato positivo al 7,9%.
I punti salienti del trimestre includono una perdita netta GAAP di $0,88 per azione diluita e un reddito netto non-GAAP di $0,42 per azione diluita. Il segmento Cloud & Networking ha generato $339,2 milioni (84,3% del fatturato), mentre la tecnologia industriale ha contribuito con $63,0 milioni (15,7%). L'azienda mantiene $896,7 milioni in liquidità e equivalenti.
Guardando al futuro, Lumentum prevede per il terzo trimestre 2025 un fatturato compreso tra $410-425 milioni, con un margine operativo non-GAAP del 9,5-10,5% e utili per azione di $0,47-0,53. L'azienda rimane fiduciosa di raggiungere il suo obiettivo di fatturato trimestrale di $500 milioni entro la fine del 2025.
Lumentum (LITE) informó los resultados del segundo trimestre fiscal de 2025 con ingresos netos de $402.2 millones, superando las expectativas de guía. La compañía logró un margen bruto GAAP del 24.8% y un margen bruto no-GAAP del 32.3%. A pesar de una pérdida operativa GAAP del 12.8%, el margen operativo no-GAAP fue positivo en 7.9%.
Los puntos destacados del trimestre incluyen una pérdida neta GAAP de $0.88 por acción diluida y un ingreso neto no-GAAP de $0.42 por acción diluida. El segmento de Cloud & Networking generó $339.2 millones (84.3% de los ingresos), mientras que la tecnología industrial contribuyó con $63.0 millones (15.7%). La compañía mantiene $896.7 millones en efectivo y equivalentes.
De cara al futuro, Lumentum proyecta ingresos para el tercer trimestre de 2025 entre $410-425 millones, con un margen operativo no-GAAP del 9.5-10.5% y ganancias por acción de $0.47-0.53. La empresa sigue confiando en alcanzar su objetivo de ingresos trimestrales de $500 millones para finales de 2025.
Lumentum (LITE)는 2025 회계년도 2분기 실적을 보고하며 순매출 $402.2 백만을 기록하여 예상치를 초과했습니다. 회사는 GAAP 총 마진 24.8%와 비-GAAP 총 마진 32.3%를 달성했습니다. GAAP 운영 손실이 12.8%였음에도 불구하고 비-GAAP 운영 마진은 7.9%로 긍정적이었습니다.
분기 주요 내용으로는 희석주당 GAAP 순 손실이 $0.88, 비-GAAP 순소득이 $0.42로 나타났습니다. Cloud & Networking 부문은 $339.2 백만(수익의 84.3%)을 창출했고, 산업 기술 부문은 $63.0 백만(15.7%)을 기여했습니다. 회사는 $896.7 백만의 현금 및 현금성 자산을 보유하고 있습니다.
앞으로 Lumentum은 2025년 3분기 매출을 $410-425 백만으로 예상하며 비-GAAP 운영 마진은 9.5-10.5%이고 주당 순이익은 $0.47-0.53로 예상하고 있습니다. 회사는 2025년 말까지 분기 매출 목표인 $500 백만에 도달할 것이라고 확신하고 있습니다.
Lumentum (LITE) a annoncé des résultats pour le deuxième trimestre fiscal 2025 avec un chiffre d'affaires net de $402,2 millions, dépassant les prévisions. La société a atteint une marge brute GAAP de 24,8 % et une marge brute non-GAAP de 32,3 %. En dépit d'une perte d'exploitation GAAP de 12,8 %, la marge d'exploitation non-GAAP était positive à 7,9 %.
Les points saillants du trimestre incluent une perte nette GAAP de $0,88 par action diluée et un revenu net non-GAAP de $0,42 par action diluée. Le segment Cloud & Networking a généré $339,2 millions (84,3 % du chiffre d'affaires), tandis que la technologie industrielle a contribué avec $63,0 millions (15,7 %). La société maintient $896,7 millions en liquidités et équivalents.
Pour l'avenir, Lumentum prévoit un chiffre d'affaires pour le troisième trimestre 2025 entre $410-425 millions, avec une marge d'exploitation non-GAAP de 9,5-10,5 % et des bénéfices par action de $0,47-0,53. La société reste confiante d'atteindre son objectif de chiffre d'affaires trimestriel de $500 millions d'ici la fin de 2025.
Lumentum (LITE) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Nettoumsatz von $402,2 Millionen, der die Erwartungen übertroffen hat. Das Unternehmen erreichte eine GAAP-Bruttomarge von 24,8 % und eine nicht-GAAP-Bruttomarge von 32,3 %. Trotz eines GAAP-Betriebsverlusts von 12,8 % war die nicht-GAAP-Betriebsmarge positiv bei 7,9 %.
Die Höhepunkte des Quartals umfassen einen GAAP-Nettoverlust von $0,88 pro verwässerter Aktie und ein nicht-GAAP-Nettoeinkommen von $0,42 pro verwässerter Aktie. Das Segment Cloud & Networking erzielte Einnahmen von $339,2 Millionen (84,3 % der Einnahmen), während die industrielle Technologie mit $63,0 Millionen (15,7 %) beisteuerte. Das Unternehmen hält $896,7 Millionen in Cash und Äquivalenten.
Für die Zukunft prognostiziert Lumentum für das dritte Quartal 2025 einen Umsatz zwischen $410-425 Millionen, mit einer nicht-GAAP-Betriebsmarge von 9,5–10,5 % und einem Gewinn pro Aktie von $0,47–0,53. Das Unternehmen ist zuversichtlich, bis Ende 2025 sein Ziel von $500 Millionen Quartalsumsatz zu erreichen.
- Revenue increased 19.4% quarter-over-quarter to $402.2 million
- Cloud & Networking segment grew 20.2% quarter-over-quarter to $339.2 million
- Non-GAAP operating margin improved to 7.9% from 3.0% in previous quarter
- Strong Q3 guidance with projected revenue growth to $410-425 million
- GAAP net loss of $60.9 million ($0.88 per share)
- Industrial Tech segment declined 21.3% year-over-year
- Cash position decreased by $19.4 million from previous quarter
- Operating loss on GAAP basis at 12.8%
Insights
Lumentum's Q2 FY2025 results reveal a compelling turnaround story, with revenue reaching
Several key metrics signal improving operational efficiency:
- Non-GAAP operating margin expanded significantly to
7.9% from3.0% sequentially - Non-GAAP EPS more than doubled to
$0.42 from$0.18 in Q1 - Gross margin improvement of 740 basis points year-over-year on a GAAP basis indicates better cost management
The Q3 guidance of
The cash position of
-
Net revenue of
$402.2 million -
GAAP gross margin of
24.8% ; Non-GAAP gross margin of32.3% -
GAAP operating loss of
12.8% ; Non-GAAP operating margin of7.9% -
GAAP diluted net loss per share of
$0.88 $0.42
“In the second quarter, we exceeded the high end of our guidance ranges for both revenue and earnings per share, driven by strong demand in the cloud end market. This is an exciting time for Lumentum as we position ourselves to capitalize on expanding cloud opportunities and the recovery of the broader networking market. Our foundational technologies enable us to win in these markets,” said Alan Lowe, President and CEO. “With our strong market position and improving industry trends, we remain confident in achieving our previously stated goal of reaching
“On a personal note, serving as Lumentum’s President and CEO over the last decade has been the highlight of my career, and I am deeply grateful to our talented team for their dedication. I look forward to continuing my role on the Lumentum Board and serving as an advisor to ensure a smooth transition to Michael Hurlston,” concluded Mr. Lowe.
Fiscal Second Quarter Highlights:
Net revenue for the fiscal second quarter of 2025 was
Non-GAAP net income for the fiscal second quarter of 2025 was
The Company held
Financial Overview – Fiscal Second Quarter Ended December 28, 2024
|
GAAP Results ($ in millions) |
||||||||||||||
|
Q2 |
|
Q1 |
|
Q2 |
|
Change |
||||||||
|
FY 2025 |
|
FY 2025 |
|
FY 2024 |
|
Q/Q |
|
Y/Y |
||||||
Net revenue |
$ |
402.2 |
|
|
$ |
336.9 |
|
|
$ |
366.8 |
|
|
|
|
|
GAAP gross margin |
|
24.8 |
% |
|
|
23.1 |
% |
|
|
17.4 |
% |
|
170 bps |
|
740 bps |
GAAP operating loss |
|
(12.8 |
)% |
|
|
(24.5 |
)% |
|
|
(28.7 |
)% |
|
1,170 bps |
|
1,590 bps |
|
|
|
|
|
|
|
|
|
|
||||||
|
Non-GAAP Results ($ in millions) |
||||||||||||||
|
Q2 |
|
Q1 |
|
Q2 |
|
Change |
||||||||
|
FY 2025 |
|
FY 2025 |
|
FY 2024 (1) |
|
Q/Q |
|
Y/Y |
||||||
Net revenue |
$ |
402.2 |
|
|
$ |
336.9 |
|
|
$ |
366.8 |
|
|
|
|
|
Non-GAAP gross margin |
|
32.3 |
% |
|
|
32.8 |
% |
|
|
31.4 |
% |
|
(50) bps |
|
90 bps |
Non-GAAP operating margin |
|
7.9 |
% |
|
|
3.0 |
% |
|
|
1.9 |
% |
|
490 bps |
|
600 bps |
|
Net Revenue by Segment ($ in millions) |
||||||||||||||||
|
Q2 |
|
% of |
|
Q1 |
|
Q2 |
|
Change |
||||||||
|
FY 2025 |
|
Net Revenue |
|
FY 2025 |
|
FY 2024 |
|
Q/Q |
|
Y/Y |
||||||
Cloud & Networking |
$ |
339.2 |
|
84.3 |
% |
|
$ |
282.3 |
|
$ |
286.7 |
|
20.2 |
% |
|
18.3 |
% |
Industrial Tech |
|
63.0 |
|
15.7 |
% |
|
|
54.6 |
|
|
80.1 |
|
15.4 |
% |
|
(21.3 |
)% |
Total |
$ |
402.2 |
|
100.0 |
% |
|
$ |
336.9 |
|
$ |
366.8 |
|
19.4 |
% |
|
9.7 |
% |
(1) During the first fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures presented in this press release have been recast to conform to the current presentation. |
The tables above provide comparisons of quarterly 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 third quarter 2025:
-
Net revenue in the range of
$410 million $425 million -
Non-GAAP operating margin of
9.5% to10.5% -
Non-GAAP diluted earnings per share of
$0.47 $0.53
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.
Related Announcement and Conference Call
Lumentum will host a conference call today, February 6, 2025, at 2:00 pm PT / 5:00 pm ET to discuss its fiscal second quarter 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 360050. 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 markets, including the cloud end market and the broader networking market, customers and industry, any anticipation or guidance as to demand for our products and technology from our customers, statements regarding our quarterly revenue goal, 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; and (j) failure to successfully integrate Cloud Light into our business or that we will not achieve the expected benefits. For more information on these and other risks, please refer to the "Risk Factors" section included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2024 filed with the Securities and Exchange Commission (the “SEC) and the Company’s other filings with the SEC, including the Quarterly Report on Form 10-Q for the fiscal quarter ended December 28, 2024 to be filed with the SEC. The forward-looking statements contained in this press release are made as of the date hereof and the Company assumes no obligation to update such statements, except as required by applicable law.
Category: Financial
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 |
|
Six Months Ended |
||||||||||||
|
December 28, 2024 |
|
December 30, 2023 |
|
December 28, 2024 |
|
December 30, 2023 |
||||||||
Net revenue |
$ |
402.2 |
|
|
$ |
366.8 |
|
|
$ |
739.1 |
|
|
$ |
684.4 |
|
Cost of sales |
|
281.2 |
|
|
|
281.3 |
|
|
|
517.7 |
|
|
|
504.2 |
|
Amortization of acquired developed intangibles |
|
21.4 |
|
|
|
21.5 |
|
|
|
43.9 |
|
|
|
39.5 |
|
Gross profit |
|
99.6 |
|
|
|
64.0 |
|
|
|
177.5 |
|
|
|
140.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
74.2 |
|
|
|
78.3 |
|
|
|
148.5 |
|
|
|
151.8 |
|
Selling, general and administrative |
|
76.3 |
|
|
|
85.1 |
|
|
|
152.6 |
|
|
|
158.1 |
|
Restructuring and related charges |
|
0.7 |
|
|
|
5.8 |
|
|
|
10.4 |
|
|
|
16.8 |
|
Total operating expenses |
|
151.2 |
|
|
|
169.2 |
|
|
|
311.5 |
|
|
|
326.7 |
|
Loss from operations |
|
(51.6 |
) |
|
|
(105.2 |
) |
|
|
(134.0 |
) |
|
|
(186.0 |
) |
Interest expense |
|
(5.6 |
) |
|
|
(9.7 |
) |
|
|
(11.1 |
) |
|
|
(19.4 |
) |
Other income, net |
|
14.9 |
|
|
|
13.4 |
|
|
|
23.6 |
|
|
|
34.6 |
|
Loss before income taxes |
|
(42.3 |
) |
|
|
(101.5 |
) |
|
|
(121.5 |
) |
|
|
(170.8 |
) |
Income tax provision (benefit) |
|
18.6 |
|
|
|
(2.4 |
) |
|
|
21.8 |
|
|
|
(3.8 |
) |
Net loss |
$ |
(60.9 |
) |
|
$ |
(99.1 |
) |
|
$ |
(143.3 |
) |
|
$ |
(167.0 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.88 |
) |
|
$ |
(1.47 |
) |
|
$ |
(2.09 |
) |
|
$ |
(2.49 |
) |
Diluted |
$ |
(0.88 |
) |
|
$ |
(1.47 |
) |
|
$ |
(2.09 |
) |
|
$ |
(2.49 |
) |
|
|
|
|
|
|
|
|
||||||||
Shares used to compute net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
68.9 |
|
|
|
67.2 |
|
|
|
68.6 |
|
|
|
67.0 |
|
Diluted |
|
68.9 |
|
|
|
67.2 |
|
|
|
68.6 |
|
|
|
67.0 |
|
LUMENTUM HOLDINGS INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in millions, except per share data) |
|||||||
(unaudited) |
|||||||
|
December 28, 2024 |
|
June 29, 2024 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
479.7 |
|
|
$ |
436.7 |
|
Short-term investments |
|
417.0 |
|
|
|
450.3 |
|
Accounts receivable, net |
|
226.9 |
|
|
|
194.7 |
|
Inventories |
|
402.3 |
|
|
|
398.4 |
|
Prepayments and other current assets |
|
125.5 |
|
|
|
110.0 |
|
Total current assets |
|
1,651.4 |
|
|
|
1,590.1 |
|
Property, plant and equipment, net |
|
663.4 |
|
|
|
572.5 |
|
Operating lease right-of-use assets, net |
|
32.9 |
|
|
|
72.8 |
|
Goodwill |
|
1,060.9 |
|
|
|
1,055.8 |
|
Other intangible assets, net |
|
534.9 |
|
|
|
617.5 |
|
Deferred tax asset |
|
11.0 |
|
|
|
10.7 |
|
Other non-current assets |
|
11.6 |
|
|
|
12.5 |
|
Total assets |
$ |
3,966.1 |
|
|
$ |
3,931.9 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
184.7 |
|
|
$ |
126.3 |
|
Accrued payroll and related expenses |
|
40.1 |
|
|
|
36.1 |
|
Accrued expenses |
|
46.2 |
|
|
|
52.4 |
|
Current portion of long-term debt |
|
9.8 |
|
|
|
— |
|
Operating lease liabilities, current |
|
11.2 |
|
|
|
13.4 |
|
Other current liabilities |
|
54.9 |
|
|
|
41.1 |
|
Total current liabilities |
|
346.9 |
|
|
|
269.3 |
|
Long-term debt |
|
2,561.2 |
|
|
|
2,503.2 |
|
Operating lease liabilities, non-current |
|
26.1 |
|
|
|
43.0 |
|
Deferred tax liability |
|
45.4 |
|
|
|
55.7 |
|
Other non-current liabilities |
|
114.2 |
|
|
|
103.4 |
|
Total liabilities |
|
3,093.8 |
|
|
|
2,974.6 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
1,892.4 |
|
|
|
1,835.0 |
|
Accumulated deficit |
|
(1,030.4 |
) |
|
|
(887.1 |
) |
Accumulated other comprehensive income |
|
10.2 |
|
|
|
9.3 |
|
Total stockholders’ equity |
|
872.3 |
|
|
|
957.3 |
|
Total liabilities and stockholders’ equity |
$ |
3,966.1 |
|
|
$ |
3,931.9 |
|
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, income 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, 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 importantly, to evaluate the methodology and information used by management to monitor, manage, evaluate and measure the Company’s business and results of operations. 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 costs, (iii) amortization of acquired intangibles, (iv) amortization of acquired inventory fair value, (v) restructuring and related charges, (vi) foreign exchange (gains) losses, net, (vii) non-cash interest expense on convertible notes, (viii) intangible assets write-off, (ix) integration related costs, (x) non-GAAP income tax reconciling adjustments, and (xi) other charges or income 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 2025 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 |
|
Six Months Ended |
||||||||||||||||
|
December 28,
|
|
September 28,
|
|
December 30,
|
|
December 28,
|
|
December 30,
|
||||||||||
Gross profit on GAAP basis |
$ |
99.6 |
|
|
$ |
77.9 |
|
|
$ |
64.0 |
|
|
$ |
177.5 |
|
|
$ |
140.7 |
|
Stock-based compensation |
|
9.2 |
|
|
|
9.7 |
|
|
|
9.0 |
|
|
|
18.9 |
|
|
|
15.0 |
|
Amortization of acquired intangibles |
|
21.4 |
|
|
|
22.5 |
|
|
|
21.5 |
|
|
|
43.9 |
|
|
|
39.5 |
|
Amortization of acquired inventory fair value adjustments |
|
— |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
Integration related costs |
|
1.1 |
|
|
|
1.2 |
|
|
|
8.3 |
|
|
|
2.3 |
|
|
|
11.6 |
|
Other charges (income), net |
|
(1.3 |
) |
|
|
(0.9 |
) |
|
|
8.9 |
|
|
|
(2.2 |
) |
|
|
9.2 |
|
Gross profit on non-GAAP basis |
$ |
130.0 |
|
|
$ |
110.4 |
|
|
$ |
115.1 |
|
|
$ |
240.4 |
|
|
$ |
219.4 |
|
Gross margin on non-GAAP basis |
|
32.3 |
% |
|
|
32.8 |
% |
|
|
31.4 |
% |
|
|
32.5 |
% |
|
|
32.1 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development on GAAP basis |
$ |
74.2 |
|
|
$ |
74.3 |
|
|
$ |
78.3 |
|
|
$ |
148.5 |
|
|
|
151.8 |
|
Stock-based compensation |
|
(11.4 |
) |
|
|
(9.3 |
) |
|
|
(10.0 |
) |
|
|
(20.7 |
) |
|
|
(20.3 |
) |
Amortization of acquired intangibles |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
Integration related costs |
|
— |
|
|
|
— |
|
|
|
0.7 |
|
|
|
— |
|
|
|
0.3 |
|
Intangible asset write-off |
|
— |
|
|
|
(1.9 |
) |
|
|
— |
|
|
|
(1.9 |
) |
|
|
— |
|
Other income (charges), net |
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.8 |
) |
Research and development on non-GAAP basis |
$ |
62.4 |
|
|
$ |
62.7 |
|
|
$ |
68.4 |
|
|
$ |
125.1 |
|
|
$ |
129.9 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative on GAAP basis |
$ |
76.3 |
|
|
$ |
76.3 |
|
|
$ |
85.1 |
|
|
$ |
152.6 |
|
|
$ |
158.1 |
|
Stock-based compensation |
|
(18.2 |
) |
|
|
(16.6 |
) |
|
|
(15.6 |
) |
|
|
(34.8 |
) |
|
|
(31.4 |
) |
Amortization of acquired intangibles |
|
(17.2 |
) |
|
|
(18.8 |
) |
|
|
(15.7 |
) |
|
|
(36.0 |
) |
|
|
(26.4 |
) |
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
(8.9 |
) |
|
|
— |
|
|
|
(12.6 |
) |
Integration related costs |
|
(2.0 |
) |
|
|
(2.2 |
) |
|
|
(1.6 |
) |
|
|
(4.2 |
) |
|
|
(3.9 |
) |
Other (charges) income, net |
|
(3.0 |
) |
|
|
(1.0 |
) |
|
|
(3.5 |
) |
|
|
(4.0 |
) |
|
|
(3.2 |
) |
Selling, general and administrative on non-GAAP basis |
$ |
35.9 |
|
|
$ |
37.7 |
|
|
$ |
39.8 |
|
|
$ |
73.6 |
|
|
$ |
80.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from operations on GAAP basis |
$ |
(51.6 |
) |
|
$ |
(82.4 |
) |
|
$ |
(105.2 |
) |
|
$ |
(134.0 |
) |
|
$ |
(186.0 |
) |
Stock-based compensation |
|
38.8 |
|
|
|
35.6 |
|
|
|
34.6 |
|
|
|
74.4 |
|
|
|
66.7 |
|
Amortization of acquired intangibles |
|
39.0 |
|
|
|
41.7 |
|
|
|
37.6 |
|
|
|
80.7 |
|
|
|
66.6 |
|
Amortization of acquired inventory fair value adjustments |
|
— |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
— |
|
|
|
13.0 |
|
Integration related costs |
|
3.1 |
|
|
|
3.4 |
|
|
|
9.2 |
|
|
|
6.5 |
|
|
|
15.2 |
|
Restructuring and related charges |
|
0.7 |
|
|
|
9.7 |
|
|
|
5.8 |
|
|
|
10.4 |
|
|
|
16.8 |
|
Intangible asset write-off |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Other charges, net |
|
1.7 |
|
|
|
0.1 |
|
|
|
12.5 |
|
|
|
1.8 |
|
|
|
13.2 |
|
Income from operations on non-GAAP basis |
$ |
31.7 |
|
|
$ |
10.0 |
|
|
$ |
6.9 |
|
|
$ |
41.7 |
|
|
$ |
8.9 |
|
Operating margin on non-GAAP basis |
|
7.9 |
% |
|
|
3.0 |
% |
|
|
1.9 |
% |
|
|
5.6 |
% |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other income, net on GAAP basis |
$ |
9.3 |
|
|
$ |
3.2 |
|
|
$ |
3.7 |
|
|
$ |
12.5 |
|
|
$ |
15.2 |
|
Foreign exchange (gains) losses, net |
|
(5.9 |
) |
|
|
0.7 |
|
|
|
3.8 |
|
|
|
(5.2 |
) |
|
|
4.2 |
|
Non-cash interest expense on convertible notes and other income and expenses, net |
|
0.8 |
|
|
|
0.7 |
|
|
|
4.8 |
|
|
|
1.5 |
|
|
|
9.7 |
|
Interest and other income, net on non-GAAP basis |
$ |
4.2 |
|
|
$ |
4.6 |
|
|
$ |
12.3 |
|
|
$ |
8.8 |
|
|
$ |
29.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss before income taxes on GAAP basis |
$ |
(42.3 |
) |
|
$ |
(79.2 |
) |
|
$ |
(101.5 |
) |
|
$ |
(121.5 |
) |
|
$ |
(170.8 |
) |
Stock-based compensation |
|
38.8 |
|
|
|
35.6 |
|
|
|
34.6 |
|
|
|
74.4 |
|
|
|
66.7 |
|
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
— |
|
|
|
13.0 |
|
Integration related costs |
|
3.1 |
|
|
|
3.4 |
|
|
|
9.2 |
|
|
|
6.5 |
|
|
|
15.2 |
|
Amortization of acquired intangibles |
|
39.0 |
|
|
|
41.7 |
|
|
|
37.6 |
|
|
|
80.7 |
|
|
|
66.6 |
|
Amortization of acquired inventory fair value adjustments |
|
— |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
Restructuring and related charges |
|
0.7 |
|
|
|
9.7 |
|
|
|
5.8 |
|
|
|
10.4 |
|
|
|
16.8 |
|
Intangible asset write-off |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Foreign exchange (gains) losses, net |
|
(5.9 |
) |
|
|
0.7 |
|
|
|
3.8 |
|
|
|
(5.2 |
) |
|
|
4.2 |
|
Non-cash interest expense on convertible notes and other income and expenses, net |
|
0.8 |
|
|
|
0.7 |
|
|
|
4.8 |
|
|
|
1.5 |
|
|
|
9.7 |
|
Other charges, net |
|
1.7 |
|
|
|
0.1 |
|
|
|
12.5 |
|
|
|
1.8 |
|
|
|
13.2 |
|
Income before income taxes on non-GAAP basis |
$ |
35.9 |
|
|
$ |
14.6 |
|
|
$ |
19.2 |
|
|
$ |
50.5 |
|
|
$ |
38.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision (benefit) on GAAP basis |
$ |
18.6 |
|
|
$ |
3.2 |
|
|
$ |
(2.4 |
) |
|
$ |
21.8 |
|
|
$ |
(3.8 |
) |
Non-GAAP income tax reconciling adjustments |
|
(12.7 |
) |
|
|
(0.8 |
) |
|
|
5.2 |
|
|
|
(13.5 |
) |
|
|
9.3 |
|
Income tax provision on non-GAAP basis |
$ |
5.9 |
|
|
$ |
2.4 |
|
|
$ |
2.8 |
|
|
$ |
8.3 |
|
|
$ |
5.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss on GAAP basis |
$ |
(60.9 |
) |
|
$ |
(82.4 |
) |
|
$ |
(99.1 |
) |
|
$ |
(143.3 |
) |
|
$ |
(167.0 |
) |
Stock-based compensation |
|
38.8 |
|
|
|
35.6 |
|
|
|
34.6 |
|
|
|
74.4 |
|
|
|
66.7 |
|
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
— |
|
|
|
13.0 |
|
Integration related costs |
|
3.1 |
|
|
|
3.4 |
|
|
|
9.2 |
|
|
|
6.5 |
|
|
|
15.2 |
|
Amortization of acquired intangibles |
|
39.0 |
|
|
|
41.7 |
|
|
|
37.6 |
|
|
|
80.7 |
|
|
|
66.6 |
|
Amortization of acquired inventory fair value adjustments |
|
— |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
Restructuring and related charges |
|
0.7 |
|
|
|
9.7 |
|
|
|
5.8 |
|
|
|
10.4 |
|
|
|
16.8 |
|
Intangible asset write-off |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Foreign exchange (gains) losses, net |
|
(5.9 |
) |
|
|
0.7 |
|
|
|
3.8 |
|
|
|
(5.2 |
) |
|
|
4.2 |
|
Non-cash interest expense on convertible notes and other income and expenses, net |
|
0.8 |
|
|
|
0.7 |
|
|
|
4.8 |
|
|
|
1.5 |
|
|
|
9.7 |
|
Non-GAAP income tax reconciling adjustments |
|
12.7 |
|
|
|
0.8 |
|
|
|
(5.2 |
) |
|
|
13.5 |
|
|
|
(9.3 |
) |
Other charges, net |
|
1.7 |
|
|
|
0.1 |
|
|
|
12.5 |
|
|
|
1.8 |
|
|
|
13.2 |
|
Net income on non-GAAP basis |
$ |
30.0 |
|
|
$ |
12.2 |
|
|
$ |
16.4 |
|
|
$ |
42.2 |
|
|
$ |
32.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share on non-GAAP basis |
$ |
0.42 |
|
|
$ |
0.18 |
|
|
$ |
0.24 |
|
|
$ |
0.60 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in per share calculation - diluted on GAAP basis |
|
68.9 |
|
|
|
68.3 |
|
|
|
67.2 |
|
|
|
68.6 |
|
|
|
67.0 |
|
Non-GAAP adjustment (2) |
|
2.7 |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
|
1.8 |
|
|
|
0.3 |
|
Shares used in per share calculation - diluted on non-GAAP basis |
|
71.6 |
|
|
|
69.1 |
|
|
|
67.4 |
|
|
|
70.4 |
|
|
|
67.3 |
|
(1) During the first fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures and the associated GAAP to non-GAAP reconciliations presented in this press release have been recast to conform to the current presentation. |
(2) The adjustment represents the dilutive impact of equity-based compensation awards in accordance with the treasury stock method and dilutive shares from our convertible debt instruments under the if-converted method, which are anti-dilutive for GAAP purposes as we recognized a GAAP net loss. |
LUMENTUM HOLDINGS INC. |
|||||||||||||||||||
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA |
|||||||||||||||||||
(in millions, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
December 28,
|
|
September 28,
|
|
December 30,
|
|
December 28,
|
|
December 30,
|
||||||||||
GAAP net loss |
$ |
(60.9 |
) |
|
$ |
(82.4 |
) |
|
$ |
(99.1 |
) |
|
$ |
(143.3 |
) |
|
$ |
(167.0 |
) |
Interest and other expense, net |
|
(9.3 |
) |
|
|
(3.2 |
) |
|
|
(3.7 |
) |
|
|
(12.5 |
) |
|
|
(15.2 |
) |
Income tax provision (benefit) |
|
18.6 |
|
|
|
3.2 |
|
|
|
(2.4 |
) |
|
|
21.8 |
|
|
|
(3.8 |
) |
Depreciation |
|
25.9 |
|
|
|
27.0 |
|
|
|
27.2 |
|
|
|
52.9 |
|
|
|
55.4 |
|
Amortization of acquired intangibles |
|
39.0 |
|
|
|
41.7 |
|
|
|
37.6 |
|
|
|
80.7 |
|
|
|
66.6 |
|
EBITDA |
|
13.3 |
|
|
|
(13.7 |
) |
|
|
(40.4 |
) |
|
|
(0.4 |
) |
|
|
(64.0 |
) |
Amortization of inventory fair value adjustments |
|
— |
|
|
|
— |
|
|
|
3.4 |
|
|
|
— |
|
|
|
3.4 |
|
Restructuring and related charges |
|
0.7 |
|
|
|
9.7 |
|
|
|
5.8 |
|
|
|
10.4 |
|
|
|
16.8 |
|
Stock-based compensation |
|
38.8 |
|
|
|
35.6 |
|
|
|
34.6 |
|
|
|
74.4 |
|
|
|
66.7 |
|
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
9.0 |
|
|
|
— |
|
|
|
13.0 |
|
Integration related costs |
|
3.1 |
|
|
|
3.4 |
|
|
|
9.2 |
|
|
|
6.5 |
|
|
|
15.2 |
|
Intangible asset write-off |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
Other charges (gains), net |
|
1.7 |
|
|
|
0.1 |
|
|
|
11.3 |
|
|
|
1.8 |
|
|
|
7.8 |
|
Adjusted EBITDA |
$ |
57.6 |
|
|
$ |
37.0 |
|
|
$ |
32.9 |
|
|
$ |
94.6 |
|
|
$ |
58.9 |
|
(1) During the first fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures and the associated GAAP to non-GAAP reconciliations presented in this press release have been recast to conform to the current presentation. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206910132/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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