On August 14, 2024, Lumentum Holdings Inc (LITE, Financial) released its 8-K filing detailing the financial results for its fiscal fourth quarter and full year ended June 29, 2024. The California-based technology firm, known for its optical and photonic products, reported mixed results amidst a challenging market environment.
Company Overview
Lumentum Holdings Inc is a leading designer and manufacturer of innovative optical and photonic products. The company's offerings include optical components for telecommunications networking equipment and commercial lasers for various applications. The firm operates through two segments: OpComms and Lasers, with the OpComms segment generating the majority of its revenue.
Fiscal Fourth Quarter Highlights
For the fiscal fourth quarter of 2024, Lumentum reported net revenue of $308.3 million, surpassing the analyst estimate of $300.80 million. However, the company posted a GAAP net loss of $252.5 million, or $3.72 per diluted share, significantly higher than the estimated loss of $1.21 per share. On a non-GAAP basis, the company achieved a diluted net income per share of $0.06.
Comparatively, the fiscal third quarter of 2024 saw net revenue of $366.5 million and a GAAP net loss of $127.0 million, or $1.88 per diluted share. The fiscal fourth quarter of 2023 reported net revenue of $370.8 million and a GAAP net loss of $60.2 million, or $0.88 per diluted share.
Fiscal Year 2024 Highlights
For the full fiscal year 2024, Lumentum reported net revenue of $1.36 billion, slightly above the annual estimate of $1.352 billion. The GAAP net loss for the year was $546.5 million, or $8.12 per diluted share, compared to the estimated loss of $5.59 per share. On a non-GAAP basis, the company reported a diluted net income per share of $1.01.
Performance and Challenges
Lumentum's performance highlights the company's resilience in a challenging market. The firm booked record orders for datacom chips used in data center applications and observed positive trends in the broader traditional networking market. However, the company faced significant challenges, including a decline in net revenue and increased operating losses compared to previous periods.
“We exceeded our guidance midpoints for both revenue and EPS in the fourth quarter. We booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market,” said Alan Lowe, President and CEO.
Financial Achievements
Despite the challenges, Lumentum made significant progress in executing its strategy to broaden its cloud and AI customer base, which is expected to drive accelerated growth in 2025. The company held $887.0 million in total cash, cash equivalents, and short-term investments at the end of the fiscal fourth quarter of 2024, an increase of $16.1 million from the third quarter of 2024.
Key Financial Metrics
| Metric | Q4 FY 2024 | Q3 FY 2024 | Q4 FY 2023 | Change Q/Q | Change Y/Y |
|---|---|---|---|---|---|
| Net Revenue ($M) | 308.3 | 366.5 | 370.8 | (15.9)% | (16.9)% |
| GAAP Gross Margin (%) | 16.6 | 16.2 | 24.2 | 40 bps | (760) bps |
| GAAP Operating Loss (%) | (43.3) | (31.3) | (15.1) | (1,200) bps | (2,820) bps |
Analysis
Lumentum's financial results reflect the company's ability to navigate a complex market environment. The decline in net revenue and increased operating losses highlight the challenges faced by the company. However, the record orders for datacom chips and positive trends in the networking market indicate potential for future growth. The company's strategic focus on expanding its cloud and AI customer base is expected to drive accelerated growth in the coming years.
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Explore the complete 8-K earnings release (here) from Lumentum Holdings Inc for further details.
