Summary
Lumentum Holdings Inc. (LITE) reported its fiscal year 2022 results, highlighting a diversified business across Optical Communications (OpComms) and Lasers segments. The company experienced a slight decrease in overall net revenue year-over-year, primarily driven by a decline in the OpComms segment due to material and component shortages impacting Telecom and Datacom products, as well as lower average selling prices in Industrial and Consumer. However, the Lasers segment saw significant growth, driven by increased customer demand for kilowatt-class fiber lasers. Strategically, Lumentum has focused on technology leadership and customer relationships. A significant development during the reporting period was the completion of its acquisition of NeoPhotonics Corporation in August 2022, which is expected to expand Lumentum's reach in fast-growing cloud and telecom network infrastructure markets. Additionally, the company made another acquisition of a business focused on telecommunications and datacenter infrastructure, including DSPs and optical transceivers, further strengthening its OpComms segment. Despite supply chain challenges and COVID-19 related impacts, Lumentum remains committed to R&D investment and believes in long-term growth opportunities driven by increased demand for data and digitalization.
Financial Highlights
51 data points| Revenue | $1.71B |
| Gross Profit | $788.60M |
| R&D Expenses | $220.70M |
| SG&A Expenses | $265.70M |
| Operating Expenses | $485.30M |
| Operating Income | $303.30M |
| Interest Expense | $80.20M |
| Net Income | $198.90M |
| EPS (Basic) | $2.79 |
| EPS (Diluted) | $2.68 |
| Shares Outstanding (Basic) | 71.20M |
| Shares Outstanding (Diluted) | 74.20M |
Key Highlights
- 1Overall net revenue slightly decreased by 1.7% to $1.71 billion in fiscal year 2022 compared to fiscal year 2021.
- 2The OpComms segment, representing 88.7% of revenue, saw a 6.3% decrease in net revenue, impacted by supply chain constraints and lower average selling prices in consumer/industrial products.
- 3The Lasers segment demonstrated strong growth, with net revenue increasing by 59.0% due to recovering customer demand for kilowatt-class fiber lasers.
- 4Significant strategic development: Lumentum completed the acquisition of NeoPhotonics Corporation in August 2022 to expand its offerings in cloud and telecom network infrastructure.
- 5The company also completed another acquisition in August 2022 to bolster its OpComms segment with products for telecommunications and datacenter infrastructure.
- 6Apple remained a key customer, accounting for 28.7% of net revenue in fiscal year 2022.
- 7Supply chain constraints, particularly semiconductor component shortages, are expected to continue impacting the ability to meet demand at least through the second half of fiscal 2023, leading to increased procurement costs.