Summary
Lumentum Holdings Inc. operates as a leading provider of optical and photonic products, serving the telecommunications (Telecom), data communications (Datacom), and commercial laser markets. The company's business is structured into two main segments: Optical Communications (OpComms) and Commercial Lasers. For the fiscal year ended July 1, 2017, Lumentum reported net revenue of $1,001.6 million, a 10.9% increase from the previous year, driven primarily by its OpComms segment, which saw growth in both Telecom and Datacom product lines. Despite revenue growth, Lumentum reported a net loss of $102.5 million for fiscal year 2017, a significant shift from the previous year's net income of $9.3 million. This loss was substantially impacted by a $104.2 million unrealized loss on derivative liabilities related to its Series A Preferred Stock and Convertible Senior Notes, as well as a $42.7 million provision for income taxes. The company's balance sheet shows a healthy cash position of $272.9 million, bolstered by the issuance of $450 million in Convertible Senior Notes in March 2017.
Financial Highlights
53 data points| Revenue | $1.00B |
| Cost of Revenue | $677.00M |
| Gross Profit | $318.10M |
| R&D Expenses | $148.30M |
| SG&A Expenses | $110.20M |
| Operating Expenses | $270.50M |
| Operating Income | $47.60M |
| Interest Expense | $5.50M |
| Net Income | -$102.50M |
| EPS (Basic) | $-1.71 |
| EPS (Diluted) | $-1.71 |
| Shares Outstanding (Basic) | 60.60M |
| Shares Outstanding (Diluted) | 60.60M |
Key Highlights
- 1Net revenue increased by 10.9% to $1,001.6 million in fiscal year 2017, primarily driven by the Optical Communications segment.
- 2The company reported a net loss of $102.5 million for fiscal year 2017, compared to a net income of $9.3 million in fiscal year 2016.
- 3A significant factor in the net loss was a $104.2 million unrealized loss on derivative liabilities associated with the Series A Preferred Stock and Convertible Senior Notes.
- 4Cash and cash equivalents increased to $272.9 million as of July 1, 2017, largely due to the proceeds from the issuance of $450 million in Convertible Senior Notes.
- 5The Optical Communications segment represented 85.6% of net revenue, with Telecom being the largest sub-segment at 61.0%.
- 6The Commercial Lasers segment saw a slight revenue increase of 1.5% but experienced a decrease in gross margin.
- 7The company experienced significant customer concentration, with three customers accounting for a substantial portion of net revenue in fiscal year 2017.