Lumentum reported revenue growth of over 70 percent in the third quarter of fiscal 2023

SAN JOSE, CA, USA, May 9, 2023 --Lumentum Holdings Inc. (" Lumentum "or the" Company ") announced financial results for its fiscal 2023 third quarter ended April 1, 2023.

Alan Lowe, President and Chief Executive Officer (CEO) of Lumentum, said, "Our third quarter results reflect the impact of customer inventory digestion and what we believe is a lack of demand in our current end markets. I am confident in our overall competitiveness and market position in optical communications and commercial lasers, and believe the medium to long term demand drivers are very strong. We are prioritizing expense control, accelerating acquisition synergies, and generating cash while meeting current needs, as we continue to deliver new product and technology roadmaps and improve customer satisfaction."

Results for the third quarter of fiscal 2023

Revenue was $383 million, down 24.2% sequentially from $506 million in the prior quarter and down 3.0% from $395 million in the prior year.

GAAP gross margin was 29.2% compared to 32.8% last quarter and 42.3% last year. Non-gaap gross margin was 40.8% compared to 44.9% last quarter and 49.5% last year.

GAAP net loss of $39.3 million compared to a net loss of $31.7 million last quarter and net income of $26 million in the same period last year. Non-gaap net income was $51.8 million, compared with net income of $104 million last quarter and net income of $88.9 million in the same period last year.

GAAP loss per diluted share of $0.57 compared to a loss of $0.46 per diluted share in the latest quarter and earnings of $0.35 per diluted share in the same period last year. Non-gaap diluted earnings per share were $0.75, compared to $1.52 per diluted share in the latest quarter and $1.19 per diluted share in the same period last year.

Lumentum's cash, cash equivalents and short-term investments totaled $1.667 billion at the end of the quarter.

Performance of each department

By segment, optical communications revenue was $335 million, down 25.3% sequentially and 2.6% year-over-year. Laser revenue of $48.3 million decreased 15.6% sequentially and 5.7% year-over-year.

Telecom and data communications: Revenue was up 20% year-over-year but down 24% sequentially due to delays in shipments as customers digested inventory. Tunable access modules for edge network applications set a quarterly record. ROADM revenue increased 10% year-over-year, driven by a more than 20% year-over-year increase in premium digital revenue. The shortage of IC supply has not significantly limited revenue.

Industrial and Consumer: As expected, revenues declined sequentially due to weaker demand for 3D sensing. Expanding opportunities for automotive Lidar /ADAA and Internet of Things. About $3 million from automotive lidar applications.

Lasers: Revenue fell 6 percent year-over-year due to lower shipments of fiber optics and solid-state lasers. Ultrafast laser revenues grew more than 70 percent year on year, driven by new applications.

Outlook for Q4 fiscal year 2023

Lumentum now expects revenue to be in the $350 million to $380 million range, with telecom and data communications revenue expected to grow slightly sequentially, industrial and consumer revenue to decline sequentially, and commercial laser revenue to be essentially flat sequentially. Non-gaap diluted earnings per share will be in the range of $0.45 to $0.65.

Source: ICC