Lumentum reduces December-quarter revenue, operating margin and earnings guidance

Optical and photonic optical component and subsystem maker Lumentum Holdings Inc of Milpitas, CA, USA says that, based on a recent customer development, it has updated its business outlook for its fiscal second-quarter 2019 (to end-December). Compared with the prior guidance (given just on 1 November) guidance has been reduced for revenue from $405-430m to $335-355m (compared with fiscal Q1’s $354.1m), for non-GAAP operating margin from 28-30% to 23-25% (compared with Q1’s operating margin of 23.9%), and for net income per diluted share from $1.60-1.75 to $1.15-1.34 (compared with fiscal Q1’s $1.31).

“We recently received a request from one of our largest Industrial & Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter,” says president & CEO Alan Lowe.

Lumentum cited Apple as contributing 30% of its revenue in fiscal full-year 2018. Since Lumentum supplies 3D sensing laser diodes to Apple for the front-facing camera of its newer iPhone models (enabling FaceID and augmented reality functions), the announcement led to a slide in Apple’s share price following a report that it is pausing a boost in production of the new iPhone XR smartphone (launched in September), increasing speculation that iPhone demand is weakening approaching the holiday season.

“With our proven ability to deliver high volumes, years of experience, hundreds of millions of devices in the field, and new product and customer funnel, we remain confident in our leadership position in the nascent market for laser diodes for 3D sensing,” Lowe says.

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Lumentum’s quarterly revenue rises 45.6% year-on-year to $354.1m, driven by telecom and fiber-laser demand

Tags: Optical communications

Visit: www.lumentum.com