Summary
Lumentum Holdings Inc. (LITE) has filed its 2016 Form 10-K, detailing its financial performance and operational overview as an independent entity following its separation from JDS Uniphase (now Viavi) in August 2015. The company operates two primary segments: Optical Communications (OpComms) and Commercial Lasers. Fiscal year 2016 saw a notable increase in net revenue, primarily driven by the OpComms segment, fueled by demand in Telecom and 100G Datacom products. Despite revenue growth, the company faces ongoing challenges including managing inventory, potential price sensitivity in competitive markets, and the need for continued investment in Research and Development to maintain its competitive edge. Lumentum is also navigating its status as an "emerging growth company," leveraging certain exemptions from regulatory requirements while diligently working to establish and refine its internal controls over financial reporting. The company's financial strategy indicates a focus on reinvesting earnings for business development, with no current plans for dividend payments. Investors should monitor the company's ability to manage its product mix, competitive pressures, and ongoing strategic investments.
Financial Highlights
50 data points| Revenue | $903.00M |
| Cost of Revenue | $458.40M |
| Gross Profit | $277.30M |
| R&D Expenses | $141.10M |
| SG&A Expenses | $117.30M |
| Operating Expenses | $265.80M |
| Operating Income | $11.50M |
| Interest Expense | $100K |
| Net Income | $9.30M |
| EPS (Basic) | $-0.05 |
| EPS (Diluted) | $-0.05 |
| Shares Outstanding (Basic) | 59.10M |
| Shares Outstanding (Diluted) | 59.10M |
Key Highlights
- 1Net revenue increased by 7.9% to $903.0 million in fiscal year 2016, primarily driven by the Optical Communications (OpComms) segment.
- 2The OpComms segment revenue grew 9.7% due to increased demand for Telecom and 100G Datacom products.
- 3Lumentum reported a net income of $9.3 million for fiscal year 2016, a significant turnaround from a net loss of $3.4 million in fiscal year 2015.
- 4The company is operating as an "emerging growth company" and is taking advantage of exemptions from certain SEC reporting requirements.
- 5Lumentum has not paid any dividends and currently intends to retain future earnings for business development and growth.
- 6The company has a significant portion of its revenue ($82% in FY16) generated from customers outside the United States, with Asia-Pacific being the largest region.
- 7The Series A Preferred Stock issued to Viavi has potential future implications on common stockholders due to conversion options and dividend accrual.