Lumentum reports third quarter fiscal 2024 financial results

SAN JOSE, Calif. - Lumentum Holdings Inc. ("Lumentum" or the "Company") today announced results for its fiscal third quarter ended March 30, 2024.

Alan Lowe, president and CEO, said: "Lumentum is well-positioned to capitalize on surging cloud data center demand driven by exponential growth in demand for artificial intelligence. We have made significant progress developing new products and customer programs and expanding capacity to Capitalizing on this exciting opportunity, we expect significant revenue growth in calendar years 2025 and beyond."

"Our third quarter revenue and EPS exceeded the midpoint of guidance, with data center revenue setting a record quarter. Revenue in the coming quarters will continue to be burdened by telecom customer inventory challenges as telecom spending slows," But we are confident in our market position and the future recovery and growth of our telecommunications business," Mr Lowe concluded.

Fiscal Year 2024 Third Quarter Results Highlights

Net revenue for the third quarter of fiscal 2024 was $366.5 million, and GAAP net loss was $127 million, or $1.88 per diluted share.

Net revenue for the second quarter of fiscal 2024 was $366.8 million, and GAAP net loss was $99.1 million, or $1.47 per diluted share.

Net revenue for the third quarter of fiscal 2023 was $383.4 million and GAAP net loss was $39.3 million, or $0.57 per diluted share.

In terms of segments, the Cloud & Networking segment had revenue of US$314 million, US$287 million in the previous quarter, and US$293 million in the same period last year; the Industrial Tech sector had revenue of US$52.7 million. Revenue last quarter was $80.1 million, compared with $90.4 million in the same period last year.

Non-GAAP net income for the third quarter of fiscal 2024 was $19.6 million, or $0.29 per diluted share.

Non-GAAP net income for the second quarter of fiscal 2024 was $21.7 million, or $0.32 per diluted share.

Non-GAAP net income for the third quarter of fiscal 2023 was $51.8 million, or $0.75 per diluted share.

As of the end of the third quarter of fiscal 2024, Lumentum held cash, cash equivalents and short-term investments totaling $870.9 million, a decrease of $353.1 million from the end of the second quarter of fiscal 2024. In March 2024, the company paid in full the remaining $323.1 million principal of the convertible notes due in 2024.

Cloud and Networking Segment Performance Analysis:

- Segment revenue increased 9% sequentially and 7% year-over-year, driven primarily by record cloud data center revenue but partially offset by weakness in telecoms

- Excellent progress on new significant data center opportunities driving calendar year 2025 revenue growth

- Investing in significant transceiver manufacturing capabilities in Thailand to meet growing demand from multiple customers

- Initial volume shipments of 200G/lane devices and associated 800G/1.6T transceivers are expected to begin in the second half of calendar year 2024

- Sample 800ZR/ZR+ DCI modules to core customers

- 130&200 GBaud coherent devices are gradually entering next-generation telecommunications systems for network equipment manufacturers

- As transmission approaches the Shannon limit, new integrated C+L band ROADMs supporting network capacity expansion are gaining popularity

Industrial Technology Sector Performance Analysis:

- Revenue fell 34% month-on-month and 42% year-on-year. The performance was consistent with expectations. The decline was mainly affected by seasonal factors in 3D sensing and inventory adjustments by industrial laser customers.

- As ultrafast lasers become increasingly widely used in integrated circuits, electric vehicles, PCBs and solar energy, their shipments increased 42% month-on-month

Fourth Quarter Fiscal Year 2024 Outlook

Lumentum currently expects revenue to be in the range of $290-315 million (with cloud and networking segment revenue declining sequentially and industrial technology segment revenue increasing slightly sequentially), with non-GAAP diluted earnings per share ranging from negative $0.05 to $0.10. between US dollars. These forecasts also exclude certain unusual charges, including underutilization of plant capacity due to plant mergers, transformations, restructurings, other synergy realization and integration activities, and inventory reductions related to previous acquisitions and the COVID-19 pandemic Activity. These charges relate to one-time events and the company expects these charges to decline in future quarters

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