Latest news with #MichaelHurlston
Business Wire
4 days ago
- Business
- Business Wire
Lumentum Announces Fourth Quarter and Full Fiscal Year 2025 Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. ('Lumentum' or the 'Company') today reported results for its fourth quarter and full fiscal year ended June 28, 2025. 'In our fiscal fourth quarter, we executed exceptionally well in meeting robust demand across our portfolio of cloud products supporting AI data centers,' said Michael Hurlston, Lumentum President and CEO. 'This solid performance, combined with sustained customer demand, drove our Q4 revenue above the high end of the upwardly revised guidance we provided in early June. The outperformance was broad-based across our cloud-focused business, with particular strength in components, specifically EML chips, pump lasers, and narrow linewidth laser assemblies for data center interconnect, as well as 800G modules. Looking ahead, we expect continued strong demand for our AI data center and long-haul solutions, giving us confidence in surpassing $600 million in quarterly revenue by June 2026 or earlier.' Fiscal Fourth Quarter Highlights: Net revenue for the fourth quarter of fiscal year 2025 was $480.7 million, with GAAP net income of $213.3 million, or $2.96 per diluted share. Net revenue for the third quarter of fiscal year 2025 was $425.2 million, with GAAP net loss of $44.1 million, or $0.64 per diluted share. Net revenue for the fourth quarter of fiscal year 2024 was $308.3 million, with GAAP net loss of $252.5 million, or $3.72 per diluted share. Non-GAAP net income for the fourth quarter of fiscal year 2025 was $63.3 million, or $0.88 per diluted share. Non-GAAP net income for the third quarter of fiscal year 2025 was $40.9 million, or $0.57 per diluted share. Non-GAAP net loss for the fourth quarter of fiscal year 2024 was $8.9 million, or $0.13 per diluted share. (1) The Company held $877.1 million in total cash, cash equivalents, and short-term investments at the end of the fourth quarter of fiscal year 2025, an increase of $10.4 million from the third quarter of fiscal year 2025. Full Fiscal Year 2025 Highlights: Net revenue for fiscal year 2025 was $1,645.0 million, with GAAP net income of $25.9 million, or $0.37 per diluted share. Net revenue for fiscal year 2024 was $1,359.2 million, with GAAP net loss of $546.5 million, or $8.12 per diluted share. Non-GAAP net income for fiscal year 2025 was $146.4 million, or $2.06 per diluted share. Non-GAAP net income for fiscal year 2024 was $29.8 million, or $0.44 per diluted share. (1) Financial Overview – Fiscal Fourth Quarter Ended June 28, 2025 Net Revenue by Segment ($ in millions) Q4 % of Q3 Q4 Change Industrial Tech 56.6 11.8 % 60.0 53.6 (5.7)% 5.6% Total $ 480.7 100.0 % $ 425.2 $ 308.3 13.1% 55.9% Expand Financial Overview – Fiscal Year Ended June 28, 2025 GAAP Results ($ in millions) FY 2025 FY 2024 Change Y/Y Net revenue $ 1,645.0 $ 1,359.2 21.0% GAAP Gross margin 28.0 % 18.5 % 950bps GAAP Operating loss (10.9 )% (31.9 )% 2,100bps Expand Non-GAAP Results ($ in millions) FY 2025 FY 2024 (1) Change Y/Y Net revenue $ 1,645.0 $ 1,359.2 21.0% Non-GAAP Gross margin 34.7 % 30.2 % 450bps Non-GAAP Operating margin (loss) 9.7 % (0.6 )% 1,030bps Expand Net Revenue by Segment ($ in millions) FY 2025 FY 2024 Change Y/Y Cloud & Networking $ 1,410.8 $ 1,084.9 30.0% Industrial Tech 234.2 274.3 (14.6)% Total $ 1,645.0 $ 1,359.2 21.0% Expand (1) During the first quarter of fiscal year 2025, the Company refined its methodology to report non-GAAP financial 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. Expand 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 financial measures is contained in this release under the section titled 'Use of Non-GAAP Financial Measures.' Business Outlook Lumentum expects the following for the first quarter of fiscal year 2026: Net revenue in the range of $510 million to $540 million Non-GAAP operating margin of 16.0% - 17.5% Non-GAAP diluted earnings per share of $0.95 to $1.10 We have not provided reconciliations from GAAP to non-GAAP financial measures or the equivalent GAAP measure for non-GAAP financial 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 12, 2025, at 2:00 pm PT / 5:00 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 To listen to the live conference call, dial (833) 470-1428 or (404) 975-4839 and reference the conference ID 554196. Supporting materials outlining the Company's latest financial results will be posted on 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 also 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 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 San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on LinkedIn, X (formerly known as Twitter), Facebook, Instagram and YouTube. 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, demand for our products, quarterly revenue, our ability to deliver at scale, 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 with respect to economic growth, inflationary pressures, changes in the political or economic environment, such as geopolitical conflicts, war, international trade regulation and restrictions (including tariffs, duties and export controls to be implemented by the U.S. and other countries), including for certain rare earth minerals, and the effect of such market disruptions on demand for our products, technology spending by our customers, our costs and expenses 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 our restructurings initiatives 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. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2025 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 28, 2025, which will be filed with the Securities and Exchange Commission, available at under the caption 'Risk Factors' and elsewhere. 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. Category: Financial The following financial tables are presented in accordance with GAAP, unless otherwise specified. LUMENTUM HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except per share data) (unaudited) June 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 520.7 $ 436.7 Short-term investments 356.4 450.3 Accounts receivable, net 250.0 194.7 Inventories 470.1 398.4 Prepayments and other current assets 120.1 110.0 Total current assets 1,717.3 1,590.1 Property, plant and equipment, net 726.4 572.5 Operating lease right-of-use assets, net 27.9 72.8 Goodwill 1,060.9 1,055.8 Other intangible assets, net 465.1 617.5 Deferred tax asset 210.3 10.7 Other non-current assets 10.8 12.5 Total assets $ 4,218.7 $ 3,931.9 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 225.2 $ 126.3 Accrued payroll and related expenses 57.9 36.1 Accrued expenses 34.6 52.4 Current portion of long-term debt 10.6 — Operating lease liabilities, current 11.4 13.4 Other current liabilities 53.1 41.1 Total current liabilities 392.8 269.3 Long-term debt 2,562.6 2,503.2 Operating lease liabilities, non-current 23.6 43.0 Deferred tax liability 7.2 55.7 Other non-current liabilities 97.8 103.4 Total liabilities 3,084.0 2,974.6 Stockholders' equity: Common stock, $0.001 par value, 990 authorized shares; 69.8 and 67.9 shares issued and outstanding as of June 28, 2025 and June 29, 2024, respectively 0.1 0.1 Additional paid-in capital 1,986.8 1,835.0 Accumulated deficit (861.2 ) (887.1 ) Accumulated other comprehensive income 9.0 9.3 Total stockholders' equity 1,134.7 957.3 Total liabilities and stockholders' equity $ 4,218.7 $ 3,931.9 Expand 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 financial 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, 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. Moreover, the non-GAAP financial measures we present may be different from non-GAAP financial measures used by other companies or may not be comparable to similarly titled measurements reported by other companies, limiting their usefulness for comparison purposes. We do not consider non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial measures, and 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. Our non-GAAP financial measures used in this press release exclude (i) stock-based compensation, (ii) acquisition related costs, (iii) integration related costs, (iv) amortization of acquired intangibles, (v) amortization of acquired inventory fair value adjustments, (vi) restructuring and related charges, (vii) intangible assets write-off, (viii) gain on sale of facility, (ix) foreign exchange losses (gains), net, (x) non-cash interest expense on convertible notes, (xi) non-GAAP income tax reconciling adjustments, and (xii) 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 2025 is 16.5%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments. 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. June 28, 2025 March 29, 2025 June 29, 2024 (1) June 28, 2025 June 29, 2024 (1) Gross profit on GAAP basis $ 159.9 $ 122.5 $ 51.3 $ 459.9 $ 251.5 Stock-based compensation 8.8 9.2 8.2 36.9 31.7 Integration related costs 0.6 — 1.9 2.9 18.1 Amortization of acquired intangibles 19.3 19.0 22.1 82.2 83.9 Amortization of inventory fair value adjustments — — — — 8.3 Other charges, net (5) (7.0 ) (1.2 ) 2.1 (10.4 ) 16.6 Gross profit on non-GAAP basis $ 181.6 $ 149.5 $ 85.6 $ 571.5 $ 410.1 Gross margin on non-GAAP basis 37.8 % 35.2 % 27.8 % 34.7 % 30.2 % Research and development on GAAP basis $ 79.5 $ 75.9 $ 73.2 $ 303.9 $ 302.2 Stock-based compensation (11.4 ) (11.2 ) (8.0 ) (43.3 ) (38.1 ) Integration related costs — (0.3 ) — (0.3 ) (0.1 ) Amortization of acquired intangibles (0.4 ) (0.4 ) (0.4 ) (1.6 ) (1.5 ) Intangible assets write-off (0.1 ) (0.7 ) — (2.7 ) — Acquisition related costs — — — — (0.4 ) Other charges, net — — 0.1 — (1.1 ) Research and development on non-GAAP basis $ 67.6 $ 63.3 $ 64.9 $ 256.0 $ 261.0 Selling, general and administrative on GAAP basis $ 83.6 $ 112.0 $ 74.9 $ 348.2 $ 310.7 Stock-based compensation (2) (19.8 ) (42.4 ) (14.3 ) (97.0 ) (59.0 ) Acquisition related (costs) reversal (0.7 ) (0.5 ) 0.2 (1.2 ) (12.9 ) Integration related costs (0.7 ) (1.1 ) (2.2 ) (6.0 ) (8.8 ) Amortization of acquired intangibles (14.9 ) (15.0 ) (19.4 ) (65.9 ) (65.2 ) Other charges, net (5) (5.8 ) (12.9 ) (2.7 ) (22.7 ) (8.1 ) Selling, general and administrative on non-GAAP basis $ 41.7 $ 40.1 $ 36.5 $ 155.4 $ 156.7 Loss from operations on GAAP basis $ (8.4 ) $ (37.7 ) $ (133.4 ) $ (180.1 ) $ (434.0 ) Stock-based compensation (2) 40.0 62.8 30.5 177.2 128.8 Acquisition related costs (reversal) 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges (3) 5.2 7.2 36.6 22.8 72.6 Intangible assets write-off 0.1 0.7 — 2.7 — Gain on sale of facility (4) — (34.9 ) — (34.9 ) — Other charges, net (5) (1.2 ) 11.7 4.7 12.3 25.8 Income (loss) from operations on non-GAAP basis $ 72.3 $ 46.1 $ (15.8 ) $ 160.1 $ (7.6 ) Operating margin (loss) on non-GAAP basis 15.0 % 10.8 % (5.1 )% 9.7 % (0.6 )% Interest and other income, net on GAAP basis $ (3.0 ) $ (1.5 ) $ 5.9 $ 8.0 $ 28.3 Foreign exchange losses (gains), net 5.8 3.6 (1.2 ) 4.2 (0.7 ) Non-cash interest expense on convertible notes and other expenses 0.7 0.8 0.7 3.0 14.9 Interest and other income, net on non-GAAP basis $ 3.5 $ 2.9 $ 5.4 $ 15.2 $ 42.5 Loss before income taxes on GAAP basis $ (11.4 ) $ (39.2 ) $ (127.5 ) $ (172.1 ) $ (405.7 ) Stock-based compensation (2) 40.0 62.8 30.5 177.2 128.8 Acquisition related costs (reversal) 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges (3) 5.2 7.2 36.6 22.8 72.6 Gain on sale of facility (4) — (34.9 ) — (34.9 ) — Intangible assets write-off 0.1 0.7 — 2.7 — Foreign exchange losses (gains), net 5.8 3.6 (1.2 ) 4.2 (0.7 ) Non-cash interest expense on convertible notes and other expenses 0.7 0.8 0.7 3.0 14.9 Other charges, net (5) (1.2 ) 11.7 4.7 12.3 25.8 Income (loss) before income taxes on non-GAAP basis $ 75.8 $ 49.0 $ (10.4 ) $ 175.3 $ 34.9 Income tax provision (benefit) on GAAP basis $ (224.7 ) $ 4.9 $ 125.0 $ (198.0 ) $ 140.8 Non-GAAP income tax reconciling adjustments 237.2 3.2 (126.5 ) 226.9 (135.7 ) Income tax provision (benefit) on non-GAAP basis $ 12.5 $ 8.1 $ (1.5 ) $ 28.9 $ 5.1 Net income (loss) on GAAP basis $ 213.3 $ (44.1 ) $ (252.5 ) $ 25.9 $ (546.5 ) Stock-based compensation (2) 40.0 62.8 30.5 177.2 128.8 Acquisition related costs (reversal) 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges (3) 5.2 7.2 36.6 22.8 72.6 Intangible assets write-off 0.1 0.7 — 2.7 — Gain on sale of facility (4) — (34.9 ) — (34.9 ) — Foreign exchange losses (gains), net 5.8 3.6 (1.2 ) 4.2 (0.7 ) Non-cash interest expense on convertible notes and other expenses 0.7 0.8 0.7 3.0 14.9 Other charges, net (5) (1.2 ) 11.7 4.7 12.3 25.8 Non-GAAP income tax reconciling adjustments (237.2 ) (3.2 ) 126.5 (226.9 ) 135.7 Net income (loss) on non-GAAP basis $ 63.3 $ 40.9 $ (8.9 ) $ 146.4 $ 29.8 Net income (loss) per share on non-GAAP basis $ 0.88 $ 0.57 $ (0.13 ) $ 2.06 $ 0.44 Shares used in per share calculation - diluted on GAAP basis 72.0 69.3 67.8 69.6 67.3 Non-GAAP adjustment (6) — 2.9 — 1.6 0.4 Shares used in per share calculation - diluted on non-GAAP basis 72.0 72.2 67.8 71.2 67.7 Expand (1) During the first quarter of fiscal year 2025, the Company refined its methodology to report non-GAAP financial 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. (2) Stock-based compensation for the twelve months ended June 28, 2025 includes $28.2 million of stock-based compensation expense resulting from equity award modifications for our former President and Chief Executive Officer ('CEO'), which include RSUs and PSUs that were immediately expensed as of the separation date. (3) Restructuring charges for the three months ended June 28, 2025 primarily relate to $3.0 million of employee severance, $2.2 million primarily related to write-off of right-of-use assets as well as charges for other contractual commitments associated with site closures. Restructuring charges for the twelve months ended June 28, 2025 include $14.6 million of assets written off, including property, plant and equipment, right-of-use assets, prepayments and other current assets as well as charges for other contractual commitments associated with site closures, and $4.3 million of employee severance primarily due to efforts to consolidate our sites and focus on other market opportunities, including cloud and AI markets. In addition, we also recorded $3.0 million of charges related to the discontinuation of our in-house development of coherent Digital Signal Processors ('DSPs') and Radio Frequency Integrated Circuits ('RFICs'). (4) Gain on sale of facility for the twelve months ended June 28, 2025 represents a gain for net assets sold in an entity in Shenzhen, China, which consist primarily of building, building improvements and land rights. (5) Other charges, net for the three months ended June 28, 2025 mainly includes a credit of $5.2 million associated with indirect taxes reserve released due to the settlement of an audit, and a credit of $1.8 million related to units sold that were previously written down, offset by $5.7 million of legal and professional fees primarily related to non-ordinary course legal matters. Other charges, net for the twelve months ended June 28, 2025 mainly includes $12.2 million of legal and professional fees primarily related to non-ordinary course legal matters, $6.2 million of CEO transition costs, and $3.2 million of bad debt reserve related to the remaining unpaid balances due from Huawei associated with the trade restrictions, offset by a credit of $5.2 million associated with indirect taxes reserve released due to the settlement of an audit and a $5.0 million credit related to units sold that were previously written down. (6) 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. Expand Three Months Ended Twelve Months Ended June 28, 2025 March 29, 2025 June 29, 2024 (1) June 28, 2025 June 29, 2024 (1) GAAP net income (loss) $ 213.3 $ (44.1 ) $ (252.5 ) $ 25.9 $ (546.5 ) Interest and other income, net 3.0 1.5 (5.9 ) (8.0 ) (28.3 ) Income tax provision (benefit) (224.7 ) 4.9 125.0 (198.0 ) 140.8 Depreciation 26.4 25.0 28.2 104.3 110.6 Amortization of acquired intangibles 34.6 34.4 41.9 149.7 150.6 EBITDA 52.6 21.7 (63.3 ) 73.9 (172.8 ) Amortization of inventory fair value adjustments — — — — 8.3 Restructuring and related charges 5.2 7.2 36.6 22.8 72.6 Stock-based compensation 40.0 62.8 30.5 177.2 128.8 Acquisition related costs 0.7 0.5 (0.2 ) 1.2 13.3 Integration related costs 1.3 1.4 4.1 9.2 27.0 Intangible assets write-off 0.1 0.7 — 2.7 — Gain on sale of facility — (34.9 ) — (34.9 ) — Other charges, net (1.2 ) 11.6 3.2 12.1 17.9 Adjusted EBITDA $ 98.7 $ 71.0 $ 10.9 $ 264.2 $ 95.1 Expand (1) During the first quarter of fiscal year 2025, the Company refined its methodology to report non-GAAP financial 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. Expand
Business Wire
07-08-2025
- Business
- Business Wire
Lumentum Expands U.S. Manufacturing for AI-Driven Co-Packaged Optics
SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. ("Lumentum"), a global leader in optical and photonic technology, today announced a significant milestone in its commitment to innovation and U.S.-based manufacturing. The company will fund a major capacity expansion of its U.S.-based semiconductor facility. This initiative is expected to generate additional high-skilled engineering and manufacturing jobs, further strengthening the U.S. position in the global AI supply chain. Lumentum is a primary supplier to the industry of ultra-high-power (UHP) lasers, essential components in Co-Packaged Optics (CPO) platforms. The UHP laser—an ultra-reliable indium phosphide product—is designed and manufactured at Lumentum's Rose Orchard Way semiconductor facility in San Jose, California. Backed by decades of experience in high-power telecom lasers, the UHP laser supports low-power, highly resilient optical networking systems that are foundational to modern AI data centers. 'This investment is a testament to our leadership in laser and photonic technologies,' said Michael Hurlston, president and CEO of Lumentum. 'Our commitment to expanding domestic manufacturing not only supports a robust AI infrastructure supply chain but also reinforces America's role in global technology leadership.' Lumentum has long been at the forefront of photonic innovation, advancing telecommunications, data centers, and industrial applications. With a foundation rooted in laser and optical technologies, the company enables the world's most advanced systems, meeting the evolving demands of artificial intelligence, machine learning, and real-time data processing in an era of rapid technological change. Lumentum is working with NVIDIA on advanced networking technologies for AI infrastructure. 'With AI transforming every industry, the demand for high-performance, energy-efficient optical interconnects is growing rapidly,' said Gilad Shainer, senior vice president, Networking, NVIDIA. 'NVIDIA is working closely with industry innovators like Lumentum to deliver improved power efficiency and network resiliency for the AI factories of the future.' 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 3D sensing capabilities. Lumentum is headquartered in San Jose, California, with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on Bluesky, Facebook, Instagram, LinkedIn, X, and YouTube. Category: Financial
Yahoo
11-07-2025
- Business
- Yahoo
This Underrated Artificial Intelligence (AI) Stock Is Crushing the Market, and It Could Skyrocket Higher
Surging demand for optical components in AI data centers has helped Lumentum record solid growth. Analysts expect Lumentum to maintain healthy growth levels over the next couple of years. Despite the stock's strong recent gains, it continues to trade at an attractive valuation. 10 stocks we like better than Lumentum › The tech-heavy Nasdaq Composite index has been in turnaround mode for the past three months -- up an impressive 31% over that span after a rocky start to the year. That's not surprising, as strong quarterly results from major technology companies seem to have boosted investor confidence in the sector. Lumentum Holdings (NASDAQ: LITE) has been one of the beneficiaries of the tech stock rally. Shares of the company, which sells optical and photonic products that go into data centers and telecom networks to enable fast data transmission, have shot up by an impressive 75% in the past three months, putting them back within 10% of the peak they reached in January. The good part is that Lumentum's rebound wasn't just a function of the broader market's rally, but also because of the company's healthy growth, which is being powered by its customers' increasing investments in artificial intelligence (AI) infrastructure. Better still, this stock is likely to deliver more upside to investors. Lumentum is witnessing terrific demand for its externally modulated lasers (EMLs), which are widely deployed in high-speed optical communications applications such as data centers and telecom networks. Their ability to transmit data over long distances at high speeds makes them ideal for deployment in AI data centers. On Lumentum's May earnings call, CEO Michael Hurlston noted: "We set another record for EML chip set shipments this quarter and remain on track to more than double this business by the end of calendar 2025." At the same time, the company is going to further expand its production capacity of EMLs in an effort to meet the end-market demand. That's the smart thing to do, considering that according to market research firm LightCounting, the optical transceiver market is expected to generate $10 billion in revenue in 2026 -- as compared to $5 billion in 2024 -- before rising to $20 billion in 2030. The company's revenue in its fiscal 2025 third quarter increased by 16% year over year to $425.2 million. Its adjusted earnings per share jumped by more than 500% -- from $0.09 to $0.57 -- on the back of an improvement in manufacturing utilization rates as well as the higher margins of its laser components deployed in AI servers. Analysts' consensus estimates are for a 20% increase in Lumentum's revenue this year to $1.6 billion. Importantly, its top-line growth is expected to remain solid next year as well, thanks to the improving demand for AI-focused optical components. Even better, that top-line growth is expected to filter down to the bottom line as well. The analysts are forecasting a 94% increase in earnings in the current fiscal year to $1.96 per share. That won't be surprising when we take into account the margin gains that its laser components deployed in AI data centers are delivering. What's worth noting is that Lumentum is trading at an incredibly attractive valuation despite the impressive growth that it has been clocking. It has a forward earnings multiple of 24, which is lower than the tech-laden Nasdaq-100 index's average forward price-to-earnings ratio of 29. Even assuming Lumentum continues to trade at a discount to the broader index after a couple of years, if it delivers the healthy earnings growth that analysts are anticipating, its stock could fly higher. Based on a P/E ratio of 24, its projected earnings of $5.21 per share in its fiscal 2027 point toward a stock price of $125. That would be 37% above the current level. However, don't be surprised to see this AI stock jumping higher than that, as the market could reward it with a premium multiple thanks to its strong earnings growth. That's why even after its impressive rebound over the past three months, investors should consider buying Lumentum before it possibly flies even higher. Before you buy stock in Lumentum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lumentum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends Lumentum. The Motley Fool has a disclosure policy. This Underrated Artificial Intelligence (AI) Stock Is Crushing the Market, and It Could Skyrocket Higher was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-02-2025
- Business
- Yahoo
Synaptics Inc (SYNA) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $267.2 million, up 13% year over year and 4% sequentially. Non-GAAP Gross Margin: 53.6%, slightly above the midpoint of guidance. Non-GAAP EPS: $0.92, an increase of 61% year over year and 14% sequentially. Core IoT Product Revenue: Increased 63% year over year to $61 million. Enterprise and Automotive Product Revenue: Improved 17% year over year and 8% sequentially. Mobile Touch Product Revenue: Down 25% year over year and 7% sequentially. Non-GAAP Operating Margin: 17.3%, up 360 basis points year over year and 60 basis points sequentially. Cash and Cash Equivalents: $596 million at the end of the quarter. Share Repurchases: $74.5 million, approximately 1 million shares repurchased. Cash Flow from Operations: $24 million. Convertible Notes Issuance: $450 million with a 0.75% coupon due in 2031. Term Loan B Retirement: Fully retired $582 million term loan. Capital Expenditures: $4.7 million. Depreciation: $7.4 million. Inventory: $119.5 million, with 87 days of inventory. Warning! GuruFocus has detected 6 Warning Signs with SYNA. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Synaptics Inc (NASDAQ:SYNA) reported a 13% year-over-year revenue increase to $267 million, slightly above the midpoint of their guidance. The company announced a strategic agreement with Broadcom, expected to generate over $40 million in annualized sales and slightly accretive to non-GAAP EPS. Core IoT product sales increased by 63% year-over-year, driven by growth in both processor and wireless products. Synaptics Inc (NASDAQ:SYNA) has a strong leadership position in several markets, being either the number one or number two player in enterprise, automotive, and mobile touch markets. The company successfully retired its term loan B, reducing total debt and cash interest expense, while returning approximately $75 million to shareholders through share repurchases. The departure of CEO Michael Hurlston introduces uncertainty, as the company is in the process of searching for a new CEO. Mobile touch product revenue decreased by 25% year-over-year due to the end of life of product shipments to a large US customer. The automotive segment is experiencing sluggishness, with most exposure to US and European customers, potentially impacting future growth. Non-GAAP operating expenses increased due to the inclusion of the Packet Craft acquisition and incremental variable expenses. The company has not yet seen a significant refresh cycle in the enterprise space, which could impact future revenue growth. Q: Can you provide more details on the $40 million in annualized sales from the Broadcom transaction? Is it more related to the core IoT segment or mobile? A: The $40 million in annualized sales from the Broadcom transaction will fall into the core IoT segment as it primarily involves wireless technologies. - Ken Rizvi, Interim CEO & CFO Q: Are there specific areas driving the improvement in bookings and orders within the enterprise segment? A: The improvement is fairly broad, with good traction on the peripheral side. Overall, we have lean inventories and see a path for sequential growth of about $10 million throughout the calendar year, despite a slower growth economic environment. The automotive space remains sluggish. - Ken Rizvi, Interim CEO & CFO Q: Can you elaborate on the potential of the Broadcom transaction in the Android and AR/VR markets? Are there designs in progress? A: The transaction strengthens our core IoT segment, especially in wireless. We expect to ramp revenue with existing and new customers, particularly in calendar years 2026 and 2027. We acquired advanced technologies like WiFi 8 combo chipsets and UWB IP, which will help us in these markets. - Ken Rizvi, Interim CEO & CFO Q: With the Broadcom acquisition, do you see any synergy between your high-end touch position and the Android wireless opportunity? A: We have a strong presence in the high-end Android market, and the Broadcom acquisition allows us to offer complementary WiFi technology. This presents an opportunity to expand our presence among Android OEMs. - Ken Rizvi, Interim CEO & CFO Q: How does the Google collaboration impact your Astra platform and revenue projections? A: The Google collaboration validates our Astra platform but does not change our fiscal '27 ramp forecast. It strengthens our position in the AI edge ecosystem, and we expect sequential growth of about $10 million per quarter, with Broadcom contributing to this growth. - Ken Rizvi, Interim CEO & CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Associated Press
06-02-2025
- Business
- Associated Press
Lumentum Announces Fiscal Second Quarter 2025 Financial Results
Lumentum Holdings Inc. ('Lumentum' or the 'Company') today reported results for its fiscal second quarter ended December 28, 2024. '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 $500 million in quarterly revenue by the end of calendar year 2025.' '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 $402.2 million, with GAAP net loss of $60.9 million, or $0.88 per diluted share. Net revenue for the fiscal first quarter of 2025 was $336.9 million, with GAAP net loss of $82.4 million, or $1.21 per diluted share. Net revenue for the fiscal second quarter of 2024 was $366.8 million, with GAAP net loss of $99.1 million, or $1.47 per diluted share. Non-GAAP net income for the fiscal second quarter of 2025 was $30.0 million, or $0.42 per diluted share. Non-GAAP net income for the fiscal first quarter of 2025 was $12.2 million, or $0.18 per diluted share . Non-GAAP net income for the second quarter of 2024 was $16.4 million, or $0.24 per diluted share (1). The Company held $896.7 million in total cash, cash equivalents, and short-term investments at the end of the fiscal second quarter of 2025, down $19.4 million from the end of the fiscal first quarter of 2025. Financial Overview – Fiscal Second Quarter Ended December 28, 2024 GAAP Results ($ in millions) Q2 Q1 Q2 Change FY 2025 FY 2025 FY 2024 Q/Q Y/Y Net revenue $ 402.2 $ 336.9 $ 366.8 19.4% 9.7% 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 19.4% 9.7% 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 to $425 million Non-GAAP operating margin of 9.5% to 10.5% Non-GAAP diluted earnings per share of $0.47 to $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 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 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 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 San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on LinkedIn, X (formerly known as Twitter), Facebook, Instagram and YouTube. 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. 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, $0.001 par value, 990 authorized shares, 69.1 and 67.9 shares issued and outstanding as of December 28, 2024 and June 29, 2024, respectively 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 16.5%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments. 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, 2024 September 28, 2024 December 30, 2023 (1) December 28, 2024 December 30, 2023 (1) 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, 2024 September 28, 2024 December 30, 2023 (1) December 28, 2024 December 30, 2023 (1) 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 Investors: Kathy Ta, (408) 750-3853; [email protected]: Noël Bilodeau, 408-439-2140; [email protected] KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: ENGINEERING TECHNOLOGY MANUFACTURING TELECOMMUNICATIONS NETWORKS INTERNET HARDWARE SOURCE: Lumentum Copyright Business Wire 2025. PUB: 02/06/2025 04:03 PM/DISC: 02/06/2025 04:03 PM
