The net income of lumentum Q4 was 422.1 million US dollars, and the laser sales

On August 16, lumentum, a leading innovative optical and photonic product design and manufacturer, announced its fourth quarter results and full year results of 2022 as of July 2.
The financial report shows that the strong investment in new products and capabilities has promoted the business growth of the company. In the fourth quarter of fiscal 2022, the net income of lumentum reached US $422.1 million, compared with us $392.1 million in the same period last year. GAAP diluted earnings per share was US $0.49. The gross profit margin was 43% (year-on-year increase of 0.7%), and the GAAP operating profit margin was 13.1% (year-on-year increase of 1.3%).

By the end of the fourth quarter of fiscal year 2022, the total amount of cash, cash equivalents and short-term investments held by the company was US $2549 million, a decrease of US $15.1 million from the third quarter of 2022 and an increase of US $603 million from the fourth quarter of 2021.

(photo source: lumentum financial report)

Business segment analysis
In the fourth fiscal quarter of 2022, the revenue of optical communication business accounted for 87.8%, and the revenue of laser business accounted for about 12.2%.
Lumentum's optical communication business income was 371 million US dollars, up 7% year-on-year and 4% month on month. Among them, the revenue of telecommunication and data communication business was US $282.1 million, driven by the improvement of integrated circuit supply and strong demand, and the quarterly revenue increased by 16%; Industrial and consumer grade business is 89 million US dollars. In this quarter, the company increased its investment in tunable transceivers, coherent components and EMLs. Driven by 400g + products, the revenue of coherent components increased 2.5 times year-on-year.
The commercial laser business income for advanced manufacturing was US $51.2 million, with a year-on-year increase of 39%, mainly due to the continuous growth of new applications and the expansion of customer base. In the quarter, lumentum's revenue from fiber lasers, ultrafast lasers and services increased by 59% year-on-year.

Lumentum recorded record revenues in data communications EML, coherent components, pump lasers, tunable products and subsea components during the quarter. The following is the profit of each business segment:

(photo source: lumentum financial report)

Fy2022 summary and fy2023 outlook

Overall, lumentum achieved a net revenue of US $1712.6 million in fiscal year 2022, with a diluted share of US $2.68. In the past two fiscal years, lumentum bought back 9.1 million shares and expressed confidence in the long-term opportunities to realize shareholder value.
Alan Lowe, President and CEO, said: "in fy2022, we achieved record revenue in data communication EMLs, coherent components, pump lasers, tunable products and subsea components, and the company's profitability exceeded our target model (i.e., 50% gross profit margin and 30% operating profit margin) 。 Revenue in the fourth quarter was higher than our midpoint, and operating profit margin and earnings per share exceeded the guidance ceiling. In addition, we have made significant progress in alleviating the shortage of components in the telecommunications business. "

He added that: "On August 3, we completed the acquisition of neophotonics, and yesterday we announced the acquisition of IPG's Telecom transmission product line. These two acquisitions enable us to create more value for our cloud and network customers. Our guidance for the first quarter of next year and the outlook for fiscal year 2023 reflect the normalization of the share of smartphone 3D sensing discussed earlier. As we have completed a healthy year and positioned the company's growth through these investments Long term, we expect that the business fundamentals will promote the mixed transfer of our telecom, data communication and commercial laser businesses, and support double-digit revenue growth in fy2023 and beyond. "

It is estimated that lumentum expects the net income in the first quarter of fiscal year 2023 to be between us $490 million and US $520 million, and the non GAAP operating profit margin is 25% - 27%. Among them, telecom, data communication and laser revenue are expected to increase by 50% in fiscal year 2023.

(outlook for fiscal year 2023, photo source: lumentum financial report)

(outlook for the first quarter of fiscal year 2023, photo source: lumentum financial report)

About lumentum
Headquartered in San Jose, California, lumentum is a market leader in the design and manufacture of innovative optical and photonic products. With R & D, manufacturing and sales offices around the world, lumentum is committed to promoting its optical network and laser applications. Lumentum's optical components and subsystems are actually part of a variety of telecommunications, enterprise and data center networks. Lumentum's laser products realize advanced manufacturing technology and a variety of applications, including the next generation 3D sensing function.

Source: OFweek