Lumentum Holdings Inc (LITE) Reports Mixed Fiscal Q1 2024 Results
Lumentum Holdings Inc (NASDAQ:LITE) reports a net revenue of $317.6 million, a 37.3% decrease year-over-year.
GAAP gross margin stood at 24.1%, while non-GAAP gross margin was reported at 34.9%.
The company experienced a GAAP operating loss of 25.4% but maintained a non-GAAP operating margin of 3.3%.
Non-GAAP diluted net income per share was $0.35, surpassing the midpoint of the company's guidance.
Lumentum Holdings Inc (NASDAQ:LITE) disclosed its financial results for the fiscal first quarter of 2024 on November 8, 2023, revealing a challenging period marked by a significant year-over-year revenue decline. The company's net revenue of $317.6 million represented a 37.3% decrease compared to the same quarter in the previous fiscal year. Despite the revenue downturn, Lumentum's non-GAAP diluted net income per share of $0.35 exceeded the midpoints of their guidance, indicating effective cost management and operational efficiency.
Financial Performance Overview
The company's GAAP gross margin contracted to 24.1%, a substantial decrease from the 39.7% reported in the fiscal first quarter of 2023. The non-GAAP gross margin also saw a decline to 34.9% from the previous year's 48.2%. Operating margins reflected a similar trend, with GAAP operating margin reporting a loss of 25.4% and non-GAAP operating margin at 3.3%, both showing declines from the prior year.
Lumentum's GAAP diluted net loss per share worsened to $1.02 from $0.01 in the fiscal first quarter of 2023. However, the non-GAAP figures tell a different story, with net income reaching $23.4 million, or $0.35 per diluted share, although this is lower than the $119.2 million, or $1.69 per diluted share, reported in the same period last year.
Balance Sheet and Cash Flow
The company ended the quarter with $1,944.3 million in total cash, cash equivalents, and short-term investments, a decrease from the previous quarter. This decline in liquid assets is indicative of the broader financial challenges faced during the period.
Segment Performance
Lumentum's new operating segments, Cloud & Networking and Industrial Tech, were introduced to better align with market trends and customer product mix. Cloud & Networking, which now includes Telecom and Datacom product lines, contributed 72.3% of the net revenue, while Industrial Tech accounted for 27.7%. The Cloud & Networking segment experienced a 36.2% year-over-year decline, while Industrial Tech saw a 40.1% decrease.
Business Outlook and Commentary
Looking ahead to the fiscal second quarter of 2024, Lumentum expects net revenue in the range of $350 million to $380 million and a non-GAAP operating margin between 2.0% and 4.0%. The non-GAAP diluted earnings per share are projected to be between $0.25 and $0.35, inclusive of the recently completed acquisition of Cloud Light Technology Limited.
"We are thrilled to welcome the talented Cloud Light team to Lumentum. In calendar 2024, we expect cloud applications will drive over 30 percent of our Cloud & Networking revenue, both within data centers and for data center interconnect. We anticipate year-over-year Cloud & Networking growth in calendar 2024, driven by accelerating AI compute requirements," said Alan Lowe, President and CEO.
Lumentum's management remains focused on delivering on product roadmaps and synergy attainment, maintaining tight cost controls, and navigating the evolving market landscape.
Investor and Analyst Communications
Lumentum will host a conference call to discuss its fiscal first quarter results, providing an opportunity for investors and analysts to gain further insights into the company's performance and future expectations. The call will be available for replay on the Lumentum website.
For detailed financial tables and a reconciliation of GAAP to non-GAAP measures, investors are encouraged to review the full earnings release and filings. As Lumentum continues to adapt to market conditions and execute its strategic initiatives, investors and potential GuruFocus.com members can find comprehensive coverage and analysis of Lumentum's financial developments on GuruFocus.com.
Explore the complete 8-K earnings release (here) from Lumentum Holdings Inc for further details.
This article first appeared on GuruFocus.
