Lumentum announces positive first quarter results

11 Nov 2015

JDSU spin-off reports Q1 2016 net revenue of $212.6m, non-GAAP gross margin 33%; and net income per share of $0.26.

Positive outlook: Lumentum's key figures from its first quarter's trading.

JDSU spin-off Lumentum Holdings, which became an independent company in August 2015, has reported results for its fiscal first quarter ended September 26, 2015, at the top end of its August forecast range. For the first five weeks of its first quarter’s trading, Lumentum was part of JDSU, which is now Viavi Solutions, and began operations as an independent public company on August 1, 2015.

Following the generally positive announcements, made at the company’s analysts and press conference in Milpitas, Ca, US, on 10 November 2015, the company’s share price immediately rose by approximately $3 to $19 per share from the previous week’s trend of approximately $16 (see chart below).

Lumentum’s non-GAAP net income for the fiscal first quarter 2016 was $15.3 million or $0.26 per share. Prior equivalent quarter non-GAAP net income was $8.9 million, or $0.15 per share. Fiscal first quarter 2015 non-GAAP net income was $16.7 million, or $0.28 per share. Included in first quarter 2016 non-GAAP results is approximately $2.0 million of non-recurring allocated cost from JDSU during the period from June 27, 2015 to July 31, 2015, prior to separation from JDSU.

’Solid results’

Alan Lowe, president and CEO commented, “Based on Lumentum's cost structure, had we been a stand-alone company for the entire first quarter, the non-GAAP operating margin would have been approximately 8.3%, and non-GAAP earnings per share would have been $0.29 per share.

The share price rose following Lumentum's first quarter's results.

“We delivered solid first quarter results with revenue and earnings above the mid-point of our guidance. Our TrueFlex ROADM revenue increased approximately 27% sequentially, and we expect continued growth of both our TrueFlex and 100G products into calendar 2016. I am excited about the opportunities in front of Lumentum as we embark upon a journey to grow our business and generate shareholder value.”

Outlook

The company held $142.1 million in total cash at the end of the quarter and remains debt-free. For the second quarter of fiscal 2016 ending December 26, 2015, Lumentum stated that it expects net revenue to be in the range of $212 million to $222 million and non-GAAP earnings per share to be $0.26 to $0.30 per share.

About the Author

Matthew Peach is a contributing editor to optics.org.