Summary
Lumentum Holdings Inc. (LITE) reported its financial results for the fiscal quarter ended October 2, 2021. The company experienced a slight decrease in net revenue, down 0.9% year-over-year to $448.4 million. This was primarily driven by a decline in Optical Communications (OpComms) revenue, which fell 5.3%, impacted by component shortages and slower 5G deployments. However, the Commercial Lasers segment saw significant growth, with revenue increasing by 77.4% due to recovering customer demand. Despite the revenue dip, Lumentum demonstrated strong profitability, with gross margin improving to 51.8% from 45.5% in the prior year, benefiting from a more favorable product mix and operational improvements. Net income increased to $81.5 million ($1.08 per diluted share) compared to $67.1 million ($0.86 per diluted share) in the same period last year. The company highlighted its strategic focus on technology and product leadership, continuing R&D investments, and ongoing efforts to optimize operations. Lumentum also repurchased approximately $91.7 million of its common stock during the quarter under its $700 million share buyback program, indicating a commitment to returning value to shareholders. The company noted that while COVID-19 did not materially impact the current quarter's results, ongoing semiconductor component shortages present a risk to future supply and revenue.
Financial Highlights
48 data points| Revenue | $448.40M |
| Gross Profit | $232.20M |
| R&D Expenses | $54.10M |
| SG&A Expenses | $63.30M |
| Operating Expenses | $116.30M |
| Operating Income | $115.90M |
| Interest Expense | $16.90M |
| Net Income | $81.50M |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.08 |
| Shares Outstanding (Basic) | 72.70M |
| Shares Outstanding (Diluted) | 75.40M |
Key Highlights
- 1Net revenue decreased slightly by 0.9% to $448.4 million, driven by a 5.3% decline in OpComms revenue, partially offset by a 77.4% surge in Commercial Lasers revenue.
- 2Gross margin significantly improved to 51.8% from 45.5% year-over-year, attributed to a more profitable product mix (including 3D sensing products) and operational efficiencies.
- 3Net income rose to $81.5 million from $67.1 million, with diluted EPS increasing to $1.08 from $0.86.
- 4R&D expenses increased by 7.3% to $54.1 million, reflecting continued investment in innovation and headcount growth.
- 5SG&A expenses increased by 12.4% to $63.3 million, mainly due to higher payroll costs and tax structure optimization.
- 6The company repurchased $91.7 million of its common stock in the quarter as part of its $700 million buyback program.
- 7Lumentum experienced significant customer concentration, with one customer accounting for 41% of total net revenue in the quarter.