Summary
Lumentum Holdings Inc. (LITE) reported strong performance in its fiscal year ending June 30, 2018, driven by significant growth in its Optical Communications (OpComms) segment, particularly in 3D sensing applications, and continued strength in its Commercial Lasers segment. Net revenue saw a substantial increase of 24.6%, reaching $1.25 billion, supported by record revenues in key product areas. The company also highlighted progress on strategic objectives aimed at accelerating growth, improving margins, and diversifying its customer and end-market base. A major development during the year was the announcement of the acquisition of Oclaro, Inc. for approximately $1.8 billion, a strategic move expected to enhance Lumentum's position in the optical communications market. The company is actively managing its business in a dynamic market environment, facing competition and pricing pressures, but is investing in R&D to maintain technological leadership and is focused on adapting to evolving customer needs and industry trends.
Financial Highlights
54 data points| Revenue | $1.25B |
| Cost of Revenue | $812.40M |
| Gross Profit | $432.10M |
| R&D Expenses | $156.80M |
| SG&A Expenses | $128.20M |
| Operating Expenses | $292.20M |
| Operating Income | $139.90M |
| Interest Expense | $18.20M |
| Net Income | $248.10M |
| EPS (Basic) | $3.88 |
| EPS (Diluted) | $3.82 |
| Shares Outstanding (Basic) | 62.30M |
| Shares Outstanding (Diluted) | 63.30M |
Key Highlights
- 1Net revenue increased by 24.6% to $1.25 billion in fiscal year 2018, driven by strong performance in 3D sensing, ROADMs, and commercial lasers.
- 2The Optical Communications (OpComms) segment saw revenue growth of 23.5% to $1.06 billion, with Consumer and Industrial products (primarily 3D sensing) being a major contributor.
- 3The Commercial Lasers segment revenue grew by 31.1% to $188.5 million, led by increased sales of kilowatt-class fiber lasers.
- 4Lumentum announced a significant $1.8 billion agreement to acquire Oclaro, Inc., a move expected to strengthen its market position.
- 5Gross margin improved to 34.6% in fiscal 2018, up from 31.8% in fiscal 2017, attributed to higher-margin 3D sensing and laser products.
- 6The company is focused on technology leadership, investing heavily in R&D ($156.8 million in fiscal 2018) to drive innovation in optical communications and laser technologies.
- 7Customer concentration remains a factor, with Apple representing 30% of net revenue in fiscal 2018.