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Lumentum To Sell Certain Optical Transceiver Product Lines To CIG

- Lumentum to sell certain optical transceiver product lines developed and manufactured by Lumentum's subsidiary Oclaro Japan, Inc. to Cambridge Industries Group (CIG)

- As part of transaction, Lumentum and CIG enter into a long-term strategic supply agreement for Lumentum's photonic chips

- Transaction is expected to close in the second quarter of calendar year 2019

MILPITAS, Calif. and SANTA CLARA, Calif., March 4, 2019 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum"), a leading provider of photonics products for optical networking and lasers for industrial and consumer markets, and Cambridge Industries USA, Inc., with its holding company Cambridge Industries Group. ("CIG"), a leading ODM/JDM/EMS supplier for the Information and Communication Technology or ICT industry, today announced they have entered into a strategic agreement and partnership whereby CIG will acquire certain optical transceiver product lines from Lumentum and enter into a long-term strategic supply agreement for Lumentum's photonic chips. The transceiver product lines to be acquired by CIG are developed and manufactured by Lumentum's subsidiary Oclaro Japan, Inc.

"I am pleased to partner with CIG and leverage our respective strengths to better address the market opportunity created by the highly anticipated growth in high-speed datacom and telecom client-side transceiver volumes driven by datacenter expansion and 5G wireless over the coming years," said Walter Jankovic, Lumentum's Senior Vice President and General Manager, Datacom. "This transaction enables Lumentum to become more commercially focused on its differentiated Indium Phosphide photonic chip capabilities and brings a new customer that is well positioned to compete in the datacom transceiver market."

"With this acquisition and on-going partnership with Lumentum for supply of their industry leading photonic chips, together with CIG's proven quality and volume JDM and ODM capabilities, CIG expands its capabilities with industry leading optical transceiver products and technology spanning the range of 10G, 25G to 400G serving many long-standing Tier 1 customers," said Gerald Wong, CIG's President and CEO. "We believe with the combination of CIG's strengths in cost effective high-volume manufacturing, and Lumentum's optical transceiver team in Japan with their decades of experience in high performance datacom and telecom transmission, we are well positioned to address customer needs in the datacom and telecom client-side transceiver market."

The transaction is expected to close in the second calendar quarter of 2019 and is subject to certain customary closing conditions for a transaction of this type. The sale is not expected to impact the guidance ranges provided on February 5, 2019 for Lumentum's third fiscal quarter, ending March 30, 2019. Revenue attributable to the products to be sold in the proposed transaction is approximately $20 million of the $50 million to $55 million of datacom revenues previously included in Lumentum's guidance for the third fiscal quarter of 2019.

About Lumentum

Lumentum (LITE) is a market-leading designer and manufacturer of innovative optical and photonic products enabling optical networking and laser applications worldwide. Lumentum's optical components and subsystems are part of virtually every type of telecom, enterprise, and data center network. Lumentum's lasers enable advanced manufacturing techniques and diverse applications including next-generation 3D sensing capabilities. Lumentum is headquartered in Milpitas, California with R&D, manufacturing, and sales offices worldwide. For more information, visit www.lumentum.com.

About Cambridge Industries Group (CIG)

Cambridge Industries Group (CIG), founded in 2005 and registered in Delaware, is now a public company (Shanghai SE: 603083) in Shanghai, China with major R&D and Sales/Marketing presence in Silicon Valley, China and Japan and state-of-the-art manufacturing facilities in China, Japan and Malaysia. CIG is an industry leading ODM / JDM / OEM company focusing on Wired Access, Wireless Access, Carrier Ethernet, Home Networking, and Optical Modules markets. As a part of its core business, CIG has a "two-engine drive" model, which provides high quality R&D and manufacturing collaborative services to the Information and Communication Technology or ICT industry. This model results in competitive advantages in technology leadership and innovation. Millions of CIG's products have been deployed globally by our partners with some of the largest service providers.
Additional information is available at http://www.cigtech.com/

Cautionary Note Regarding Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Lumentum's expectations, strategy, plans or intentions, in particular, statements regarding the expected market opportunity, the expected benefits of the proposed transaction, the proposed closing date of the transaction and Lumentum's guidance for the third fiscal quarter of 2019, including the effect of the proposed transaction on guidance. Lumentum's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

The forward-looking statements contained in this communication are also subject to other risks and uncertainties, including the risks related to our ability to complete the transaction, the development of markets as we expect and other important factors that could cause the results of the transaction to differ materially, as well as those risks more fully described in our filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the year ended June 30, 2018 and our Quarterly Report on Form 10-Q for the fiscal quarter ended December 29, 2018. The forward-looking statements in this press release are based on information available to Lumentum as of the date hereof, and Lumentum disclaims any obligation to update any forward-looking statements, except as required by law.

Contact Information



Lumentum:

Investors:

Chris Coldren, 408-404-0606; investor.relations@lumentum.com


Jim Fanucchi, 408-404-5400; jim@darrowir.com

Press:

Greg Kaufman, 408-546-4593; media@lumentum.com


Cambridge Industries Group:

Investors:

Anne Marie Gorman +1 (510) 479-6975; AM.Gorman@cigtech.com


Xie Chong +86 135 1101 6566; xiechong@cigtech.com

Press:

Alexander Leibovich + 1 (408) 638-4885; aleibovich@cigtech.com

 

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