Summary
This Lumentum Holdings Inc. (LITE) 10-Q filing from November 17, 2015, primarily details the company's status as an "emerging growth company" and the implications of this designation on its reporting requirements. As an emerging growth company, Lumentum is exempt from certain Sarbanes-Oxley Act provisions, including the auditor's attestation report on internal controls, and can delay adopting new accounting standards. While these exemptions may make its filings different from larger public companies, Lumentum has elected not to delay adopting new accounting standards. The filing also addresses significant risks associated with its common stock, including potential stock price volatility due to various factors such as the upcoming sale of shares by Viavi (the former parent company), fluctuations in operating results, and overall market conditions. Furthermore, the company explicitly states that it does not currently expect to pay dividends, and any future dividend payments are at the discretion of the board and contingent upon its financial performance and subsidiaries' ability to distribute funds. The potential impact of Series A Preferred Stock obligations on common stockholders is also highlighted, along with corporate governance provisions designed to deter hostile takeovers.
Financial Highlights
47 data points| Revenue | $212.60M |
| Cost of Revenue | $144.00M |
| Gross Profit | $66.90M |
| R&D Expenses | $34.40M |
| SG&A Expenses | $34.00M |
| Operating Expenses | $69.40M |
| Operating Income | -$2.50M |
| Net Income | -$11.70M |
| Shares Outstanding (Basic) | 58.80M |
| Shares Outstanding (Diluted) | 58.80M |
Key Highlights
- 1Lumentum is operating as an "emerging growth company," benefiting from reduced reporting requirements under the JOBS Act.
- 2The company has elected to comply with new or revised accounting standards promptly, foregoing the extended transition period available to emerging growth companies.
- 3Significant potential for stock price volatility exists due to the planned sale of shares by Viavi and other market-related factors.
- 4Lumentum does not currently anticipate paying dividends on its common stock; future dividends are discretionary and dependent on financial performance.
- 5The Series A Preferred Stock held by Amada carries potential obligations that could negatively impact common stockholders' interests.
- 6Certain provisions in the company's charter and Delaware law (DGCL Section 203) are in place to hinder hostile takeover attempts.
- 7The company has established an exclusive forum provision in its bylaws for stockholder lawsuits, potentially limiting options for challenging company decisions.