Summary
Lumentum Holdings Inc. (LITE) reported a significant year-over-year decline in net revenue for the second quarter of fiscal year 2024, down 27.5% to $366.8 million. This revenue decrease was driven by both segments: Cloud & Networking (down 25.1%) and Industrial Tech (down 34.9%). The company attributed these declines primarily to customer inventory management actions, market competition, and a less favorable product mix. Consequently, gross margins contracted sharply to 17.4% from 32.8% in the prior year period, impacted by lower volumes, underutilization of manufacturing capacity, and elevated excess and obsolete inventory charges, particularly due to U.S. trade restrictions. The company reported a substantial net loss of $99.1 million for the quarter, a significant increase from the $31.7 million net loss in the same period last year. This was driven by lower gross profit and increased operating expenses, including research and development, as a percentage of revenue. The acquisition of Cloud Light in November 2023 contributed $59.5 million in revenue but also added to integration costs and R&D expenses. Despite the challenging revenue environment, Lumentum ended the quarter with $469.3 million in cash and cash equivalents, and its cash flow from operations was nearly breakeven ($3.8 million used), indicating a focus on managing cash amidst the downturn.
Financial Highlights
49 data points| Revenue | $366.80M |
| Gross Profit | $64.00M |
| R&D Expenses | $78.30M |
| SG&A Expenses | $85.10M |
| Operating Expenses | $169.20M |
| Operating Income | -$105.20M |
| Interest Expense | $9.70M |
| Net Income | -$99.10M |
| EPS (Basic) | $-1.47 |
| EPS (Diluted) | $-1.47 |
| Shares Outstanding (Basic) | 67.20M |
| Shares Outstanding (Diluted) | 67.20M |
Key Highlights
- 1Net revenue declined 27.5% year-over-year to $366.8 million, impacted by both Cloud & Networking and Industrial Tech segments.
- 2Gross margin significantly decreased to 17.4% from 32.8% in the prior year quarter, primarily due to lower volumes, underutilization, and inventory charges.
- 3The company reported a net loss of $99.1 million, a substantial increase from a $31.7 million loss in the prior year period.
- 4Operating expenses increased as a percentage of revenue, with R&D and SG&A rising due to the Cloud Light acquisition and integration efforts.
- 5The Cloud Light acquisition, completed in November 2023, contributed $59.5 million in revenue during the quarter.
- 6Cash used in operating activities was $3.8 million for the six-month period, showing a near breakeven operational cash flow.
- 7Cash and cash equivalents stood at $469.3 million at the end of the quarter, with $569.6 million remaining under the share buyback program.