Summary
Lumentum Holdings Inc. (LITE) reported a significant revenue increase in the third quarter of fiscal year 2019, driven by strong performance in its Optical Communications (OpComms) segment, largely due to the acquisition of Oclaro. Total net revenue grew by 44.9% year-over-year, reaching $432.9 million, with OpComms contributing $377.9 million. The company experienced a substantial net loss of $74.3 million for the quarter, a notable decline from the $2.7 million net income in the prior year's same quarter. This loss was primarily attributed to significant restructuring and impairment charges, including $21.1 million in restructuring costs and a $30.7 million impairment charge related to the discontinuation of certain Datacom transceiver product lines. These factors, combined with increased operating expenses and amortization from the Oclaro acquisition, impacted profitability. Despite the quarterly loss, the nine-month performance showed growth in revenue, though net loss widened compared to the prior year period. The company continues to invest in R&D for future growth opportunities.
Financial Highlights
51 data points| Revenue | $432.90M |
| Cost of Revenue | $316.50M |
| Gross Profit | $88.30M |
| R&D Expenses | $57.70M |
| SG&A Expenses | $55.20M |
| Operating Expenses | $164.70M |
| Operating Income | -$76.40M |
| Interest Expense | $11.30M |
| Net Income | -$74.30M |
| EPS (Basic) | $-0.98 |
| EPS (Diluted) | $-0.98 |
| Shares Outstanding (Basic) | 76.20M |
| Shares Outstanding (Diluted) | 76.20M |
Key Highlights
- 1Net revenue increased by 44.9% to $432.9 million in Q3 FY19 compared to Q3 FY18, primarily driven by the Oclaro acquisition and growth in the Telecom sector.
- 2The Optical Communications (OpComms) segment saw a revenue increase of 53.4% to $377.9 million, largely due to the Oclaro acquisition and strong sales in ROADM products.
- 3The company reported a net loss of $74.3 million ($0.98 per share) for Q3 FY19, a significant decrease from a net income of $2.7 million ($0.04 per share) in Q3 FY18.
- 4Gross margin decreased significantly to 20.4% in Q3 FY19 from 32.5% in Q3 FY18, impacted by amortization related to the Oclaro acquisition and inventory write-downs.
- 5Restructuring and related charges totaled $21.1 million for the quarter, largely due to severance and employee benefits related to discontinuing certain product lines.
- 6An impairment charge of $30.7 million was recorded due to the discontinuation of Datacom transceiver products.
- 7The company maintained a strong cash position, with cash and cash equivalents of $358.3 million as of March 30, 2019.