Summary
Lumentum Holdings Inc.'s (LITE) 2016 Form 10-K filing primarily addresses its internal controls and financial reporting. While management concluded that internal control over financial reporting was effective as of July 2, 2016, based on the COSO 2013 Framework, a significant disclosure control deficiency was identified due to an administrative error in the original filing. This error involved inadvertently repeating language from the prior year's report and omitting updated disclosures related to management's annual report on internal control and Section 302 certifications. As a direct result of this administrative error, management concluded that disclosure controls and procedures were not effective at a reasonable assurance level as of the evaluation date. The company has since implemented enhanced pre-filing review processes to mitigate such issues in the future. Investors should note that Lumentum is operating under the JOBS Act exemption for "emerging growth companies," which means an independent auditor's attestation report on internal control over financial reporting is not included in this filing.
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
- 1Disclosure controls and procedures were found to be not effective at a reasonable assurance level as of the evaluation date due to an administrative error in the previous filing.
- 2Management concluded that internal control over financial reporting was effective as of July 2, 2016, based on the COSO 2013 Framework.
- 3An administrative error led to the omission of updated disclosure required under Regulation S-K Item 308 and certain clauses in Section 302 certifications.
- 4The company has implemented additional pre-filing review controls to improve the effectiveness of disclosure controls and procedures going forward.
- 5Lumentum is an "emerging growth company" and is exempt from the JOBS Act requirement for an independent auditor's attestation report on internal control over financial reporting.
- 6No material changes in internal control over financial reporting occurred during the most recently completed fiscal quarter.