10-QPeriod: Q2 FY2025

Lumentum Holdings Inc. Quarterly Report for Q2 Ended Dec 28, 2024

Filed February 6, 2025For Securities:LITE

Summary

Lumentum Holdings Inc. reported a net loss of $60.9 million for the three months ended December 28, 2024, which is an improvement compared to the $99.1 million net loss in the same period last year. Net revenue for the quarter increased by 9.7% year-over-year to $402.2 million, driven by a strong performance in the Cloud & Networking segment, which saw an 18.3% revenue increase. The Industrial Tech segment experienced a revenue decline of 21.3%, primarily due to increased competition in the consumer end-market. For the six-month period, the company also reported an improved net loss of $143.3 million compared to $167.0 million in the prior year. Net revenue for the six months increased by 8.0% to $739.1 million, with the Cloud & Networking segment growing by 20.4%. The Industrial Tech segment saw a significant 30.0% decrease in revenue. The company's gross margin improved substantially to 24.8% from 17.4% in the prior year's quarter, and from 20.6% to 24.0% for the six-month period, attributed to lower inventory charges and reduced acquisition-related costs. Financially, Lumentum ended the period with $479.7 million in cash and cash equivalents, and $417.0 million in short-term investments. The company's substantial long-term debt, primarily from convertible notes, remains a key financial consideration for investors.

Financial Statements
Beta

Key Highlights

  • 1Lumentum reported a narrower net loss of $60.9 million for the three months ended December 28, 2024, compared to a $99.1 million net loss in the prior year.
  • 2Net revenue increased by 9.7% to $402.2 million for the quarter, driven by a strong 18.3% growth in the Cloud & Networking segment.
  • 3The Industrial Tech segment's revenue decreased by 21.3% due to increased competition.
  • 4Gross margin significantly improved to 24.8% from 17.4% year-over-year, benefiting from reduced inventory charges and acquisition-related cost savings.
  • 5Cash and cash equivalents increased to $479.7 million, and the company ended the period with $417.0 million in short-term investments.
  • 6The company's Cloud & Networking segment profit more than doubled, increasing by 88.7% year-over-year, while Industrial Tech segment profit decreased significantly.
  • 7R&D expenses decreased by 5.2% for the quarter due to lower headcount and spending, while SG&A expenses also decreased by 10.3%.

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