MILPITAS, Calif., May 2,
2018 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum" or the
"Company") today reported results for its fiscal third quarter
ended March 31, 2018.
Net revenue for the fiscal third quarter of 2018 was
$298.8 million, with GAAP net income
of $2.7 million, or $0.04 per diluted share. Net revenue for fiscal
second quarter of 2018 was $404.6
million, with GAAP net income of $204.8 million, or $3.05 per diluted share. Net revenue for the
fiscal third quarter of 2017 was $255.8
million, with GAAP net loss of $(56.0) million, or $(0.92) per diluted share.
Non-GAAP net income for the fiscal third quarter of 2018 was
$50.6 million, or $0.78 per diluted share. Non-GAAP net income for
fiscal second quarter of 2018 was $107.8
million, or $1.67 per diluted
share. Non-GAAP net income for the fiscal third quarter of 2017 was
$30.8 million, or $0.49 per diluted share.
The Company held $692.8 million in
total cash and short-term investments at the end of the fiscal
third quarter of 2018.
"Our strategy of investing in differentiated products and
technologies, focusing on close relationships with market leading
customers, and leveraging our technologies across multiple growing
end markets, is working. Driven by strong customer demand and
execution on capacity expansion, in the third quarter we achieved
new record Lasers revenues, which increased 18% sequentially, and
grew Telecom revenues by more than 11% sequentially, with notable
strength in ROADMs, which were up 27% sequentially," said
Alan Lowe, President and CEO.
"Though seasonally down, we made good progress on new 3D sensing
customer programs and are well positioned for new customer product
introductions during FY19. During the third quarter, we announced
reaching an agreement to acquire Oclaro and we continue to work
with Oclaro on this pending transaction."
Financial Overview
– Fiscal Third Quarter Ended March 31, 2018
|
|
|
|
GAAP Results ($ in
millions)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Change
|
|
FY
2018
|
|
FY
2018
|
|
FY
2017
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$298.8
|
|
$404.6
|
|
$255.8
|
|
(26.1)%
|
|
16.8%
|
Gross
margin
|
32.5%
|
|
42.3%
|
|
32.1%
|
|
(980)bps
|
|
40bps
|
Operating
margin
|
8.5%
|
|
22.4%
|
|
5.3%
|
|
(1,390)bps
|
|
320bps
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results
($ in millions)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Change
|
|
FY
2018
|
|
FY
2018
|
|
FY
2017
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$298.8
|
|
$404.6
|
|
$255.8
|
|
(26.1)%
|
|
16.8%
|
Gross
margin
|
36.3%
|
|
44.9%
|
|
34.4%
|
|
(860)bps
|
|
190bps
|
Operating
margin
|
16.5%
|
|
28.3%
|
|
12.6%
|
|
(1,180)bps
|
|
390bps
|
|
Net Revenue by
Segment ($ in millions)
|
|
Q3
|
|
%
of
|
|
Q2
|
|
Q3
|
|
Change
|
|
FY
2018
|
|
Net
Revenue
|
|
FY
2018
|
|
FY
2017
|
|
Q/Q
|
|
Y/Y
|
Optical
Communications
|
$246.3
|
|
82.4%
|
|
$360.1
|
|
$216.1
|
|
(31.6)%
|
|
14.0%
|
Lasers
|
52.5
|
|
17.6%
|
|
44.5
|
|
39.7
|
|
18.0%
|
|
32.2%
|
Total
|
$298.8
|
|
100.0%
|
|
$404.6
|
|
$255.8
|
|
(26.1)%
|
|
16.8%
|
The tables above provide comparisons of quarterly results to
prior periods, including sequential quarterly and year-over-year
changes. A reconciliation between GAAP and non-GAAP measures is
contained in this release under the section titled "Use of Non-GAAP
Financial Measures."
Business Outlook
The Company expects the following for the fiscal fourth
quarter 2018:
- Net Revenue to be in the range of $275 million to $300
million
- Non-GAAP Operating margin of 14.0% to 16.0%
- Non-GAAP diluted earnings per share of $0.55 to $0.75
Note: Earnings per share
based on approximately 65.3 million shares outstanding on a fully
diluted basis
Our projection of 65.3 million shares outstanding does not
include the potentially dilutive effect of the convertible notes,
as we have the ability and intent to settle the face value in cash;
and therefore, we use the treasury stock method for calculating the
dilutive impact of the 2024 Notes. The notes will have an impact on
our diluted earnings per share when the average price of our common
stock exceeds the conversion price of $60.62.
We have not provided reconciliations from GAAP to non-GAAP
measures for our outlook. A large portion of non-GAAP adjustments,
such as derivative liability adjustments, restructuring charges,
stock-based compensation, litigation, acquisition related costs,
non-cash income tax expense and credits, and other costs and
contingencies unrelated to current and future operations are by
their nature highly volatile and we have low visibility as to the
range that may be incurred in the future. For example, in the
fiscal second quarter of 2018, we had a credit of $207.0 million primarily related to a release of
a U.S. valuation allowance, which was offset by a write-down of
deferred tax assets in the amount of $83.0
million due to the lower corporate tax rate enacted under
the 2017 "Tax Cuts and Jobs Act" reform.
Conference Call
Lumentum will host a conference call on May 2, 2018 at
5:30am PT/8:30am ET. A live webcast of the call and the
replay will be available on the Lumentum website at
http://investor.lumentum.com through May 9, 2018, 8:59pm PT/11:59pm
ET. Supporting materials outlining the Company's latest
financial results will be posted on http://investor.lumentum.com
under the "Events and Presentations" section concurrently with this
earnings press release. This press release is being furnished as an
exhibit to a Current Report on Form 8-K filed with the Securities
and Exchange Commission and will be available at
http://www.sec.gov/.
About Lumentum
Lumentum (NASDAQ: LITE) is a market-leading manufacturer of
innovative optical and photonic products enabling optical
networking and commercial laser customers worldwide. Lumentum's
optical components and subsystems are part of virtually every type
of telecom, enterprise, and data center network. Lumentum's
commercial 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 https://www.lumentum.com/en.
Forward-Looking Statements
This press release 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. These
statements include our expectations for our markets, including
future product shipments and associated revenue, any anticipation
or guidance as to future financial performance, including future
net revenue, earnings per share, and operating margins, number of
outstanding shares, our proposed acquisition of Oclaro, including
the anticipated closing date, anticipated sales trends across our
businesses, customer plans and demand for our products, our ability
to effectively and efficiently design products, and our ability to
scale production on our various products and the 3D sensing market
and our position in that market. These forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from those projected. Among the factors that
could cause actual results to differ from those contemplated are:
(a) quarter-over-quarter product mix fluctuations which can
materially impact profitability measures due to the broad gross
margin ranges across our portfolio; (b) continued decline of
average selling prices across our businesses; (c) effects of
seasonality; (d) the ability of our suppliers and contract
manufacturers to meet production and delivery requirements to our
forecasted demand; (e) inherent uncertainty related to global
markets and the effect of such markets on demand for our products;
(f) changes in customer demand; and (g) our ability to attract and
retain new customers, particularly in the 3D sensing market, (h)
the risk that the Oclaro transaction does not close, due to the
failure of one or more conditions to closing or the failure of the
businesses (including personnel) to be integrated successfully
after closing; (i) the risk that synergies and non-GAAP earnings
accretion will not be realized or realized to the extent
anticipated; (j) uncertainty as to the market value of the Lumentum
merger consideration to be paid in the merger; (k) the risk that
required governmental or Oclaro stockholder approvals of the merger
(including U.S. or China antitrust approvals) will not be obtained
or that such approvals will be delayed beyond current expectations;
(l) the risk that following this transaction, Lumentum's financing
or operating strategies will not be successful; (m) litigation in
respect of either company or the merger; and (n) disruption from
the merger making it more difficult to maintain customer, supplier,
key personnel and other strategic relationships. For more
information on these and other risks, please refer to the "Risk
Factors" section included in the Company's Quarterly Report on Form
10-Q for the fiscal third quarter ended March 31, 2018 filed
with the Securities and Exchange Commission, in the S-4 to be filed
by Lumentum with the Securities and Exchange Commission at a future
date in connection with the Oclaro transaction and in the documents
which are incorporated by reference therein, and in the Company's
other filings with the Securities and Exchange Commission. The
forward-looking statements and preliminary financial results
contained in this press release are made as of the date hereof and
the Company assumes no obligation to update such statements, except
as required by applicable law.
Additional Information and Where to Find It
This press release references a proposed business combination
involving Lumentum Holdings Inc. and Oclaro, Inc. In connection
with the proposed transaction, Lumentum will file with the
Securities and Exchange Commission a Registration Statement on Form
S-4 that includes the preliminary proxy statement of Oclaro and
that will also constitute a prospectus of Lumentum. The information
in the preliminary proxy statement/prospectus is not complete and
may be changed. Lumentum may not sell the common stock referenced
in the proxy statement/prospectus until the Registration Statement
on Form S-4 filed with the Securities and Exchange Commission
becomes effective. The preliminary proxy statement/prospectus and
this press release are not offers to sell Lumentum securities, are
not soliciting an offer to buy Lumentum securities in any state
where the offer and sale is not permitted and are not a
solicitation of any vote or approval. The definitive proxy
statement/prospectus will be mailed to stockholders of Oclaro.
LUMENTUM AND OCLARO URGE INVESTORS AND SECURITY HOLDERS TO READ
THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION CAREFULLY AND IN THEIR
ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders will be able to obtain these
materials (when they are available) and other documents filed with
the Securities and Exchange Commission free of charge at the
Securities and Exchange Commission's website, www.sec.gov. Copies
of documents filed with the Securities and Exchange Commission by
Lumentum (when they become available) may be obtained free of
charge on Lumentum's website at www.lumentum.com or by directing a
written request to Lumentum Holdings Inc., Investor Relations, 400
North McCarthy Boulevard, Milpitas,
CA 95035. Copies of documents filed with the Securities and
Exchange Commission by Oclaro (when they become available) may be
obtained free of charge on Oclaro's website at www.oclaro.com or by
directing a written request to Oclaro, Inc. Investor Relations, 225
Charcot Avenue, San Jose, CA
95131.
Participants in the Merger Solicitation
Each of Lumentum Holdings Inc., Oclaro, Inc. and their
respective directors, executive officers and certain other members
of management and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information regarding these persons who may, under the rules of the
Securities and Exchange Commission, be considered participants in
the solicitation of Oclaro stockholders in connection with the
proposed transaction is set forth in the proxy statement/prospectus
described above filed with the Securities and Exchange Commission.
Additional information regarding Lumentum's executive officers and
directors is included in Lumentum's definitive proxy statement,
which was filed with the Securities and Exchange Commission on
September 19, 2017. Additional information regarding Oclaro's
executive officers and directors is included in Oclaro's definitive
proxy statement, which was filed with the Securities and Exchange
Commission on September 27, 2017. You can obtain free copies
of these documents using the information in the paragraph
immediately above.
Contact Information
Investors: Chris Coldren,
408-404-0606; investor.relations@lumentum.com
Press: Greg Kaufman,
408-546-4593; media@lumentum.com
The following financial tables are presented in accordance with
GAAP, unless otherwise specified.
LUMENTUM HOLDINGS
INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in
millions, except per share
data) (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March 31,
2018
|
|
April 1,
2017
|
|
March 31,
2018
|
|
April 1,
2017
|
Net
revenue
|
$
|
298.8
|
|
|
$
|
255.8
|
|
|
$
|
946.6
|
|
|
$
|
778.9
|
|
Cost of
sales
|
201.0
|
|
|
172.0
|
|
|
607.6
|
|
|
523.0
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
1.7
|
|
|
2.4
|
|
|
5.1
|
|
Gross
profit
|
97.0
|
|
|
82.1
|
|
|
336.6
|
|
|
250.8
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and development
|
38.2
|
|
|
37.3
|
|
|
118.3
|
|
|
112.9
|
|
Selling, general and administrative
|
33.2
|
|
|
28.1
|
|
|
95.5
|
|
|
84.2
|
|
Restructuring and related charges
|
0.1
|
|
|
3.1
|
|
|
3.8
|
|
|
10.0
|
|
Total operating
expenses
|
71.5
|
|
|
68.5
|
|
|
217.6
|
|
|
207.1
|
|
Income from
operations
|
25.5
|
|
|
13.6
|
|
|
119.0
|
|
|
43.7
|
|
Unrealized loss on
derivative liabilities
|
(20.7)
|
|
|
(56.6)
|
|
|
(8.6)
|
|
|
(74.5)
|
|
Interest and other
income (expense), net
|
(2.1)
|
|
|
(1.4)
|
|
|
(8.7)
|
|
|
(1.4)
|
|
Income (loss) before
income taxes
|
2.7
|
|
|
(44.4)
|
|
|
101.7
|
|
|
(32.2)
|
|
Provision for
(benefit from) income taxes
|
—
|
|
|
11.6
|
|
|
(112.9)
|
|
|
15.4
|
|
Net income
(loss)
|
2.7
|
|
|
(56.0)
|
|
|
214.6
|
|
|
(47.6)
|
|
|
|
|
|
|
|
|
|
Items reconciling net
income (loss) to net income (loss) attributable to common
stockholders:
|
|
|
|
|
|
|
|
Cumulative dividends
on Series A Preferred Stock
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.7)
|
|
|
(0.6)
|
|
Earnings allocated to
Series A Preferred Stock
|
(0.1)
|
|
|
—
|
|
|
(4.9)
|
|
|
—
|
|
Net income (loss)
attributable to common stockholders
|
$
|
2.4
|
|
|
$
|
(56.2)
|
|
|
$
|
209.0
|
|
|
$
|
(48.2)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.04
|
|
|
$
|
(0.92)
|
|
|
$
|
3.37
|
|
|
$
|
(0.80)
|
|
Diluted
|
$
|
0.04
|
|
|
$
|
(0.92)
|
|
|
$
|
3.31
|
|
|
$
|
(0.80)
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
Basic
|
62.4
|
|
|
61.0
|
|
|
62.1
|
|
|
60.4
|
|
Diluted shares
attributable to common stockholders
|
63.3
|
|
|
61.0
|
|
|
63.2
|
|
|
60.4
|
|
LUMENTUM HOLDINGS
INC. CONSOLIDATED BALANCE SHEETS (in millions,
except share and per share
data) (unaudited)
|
|
|
|
|
|
March 31,
2018
|
|
July 1,
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
176.8
|
|
|
$
|
272.9
|
|
Short-term
investments
|
516.0
|
|
|
282.4
|
|
Accounts receivable,
net
|
164.7
|
|
|
166.3
|
|
Inventories
|
144.2
|
|
|
145.2
|
|
Prepayments and other
current assets
|
63.0
|
|
|
63.5
|
|
Total current
assets
|
1,064.7
|
|
|
930.3
|
|
Property, plant and
equipment, net
|
301.8
|
|
|
273.5
|
|
Goodwill and
intangibles, net
|
19.9
|
|
|
21.5
|
|
Deferred income
taxes, net
|
128.2
|
|
|
3.9
|
|
Other non-current
assets
|
3.6
|
|
|
3.7
|
|
Total
assets
|
$
|
1,518.2
|
|
|
$
|
1,232.9
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
100.9
|
|
|
$
|
114.8
|
|
Accrued payroll and
related expenses
|
33.2
|
|
|
27.5
|
|
Income taxes
payable
|
0.1
|
|
|
0.7
|
|
Accrued
expenses
|
36.3
|
|
|
19.3
|
|
Other current
liabilities
|
21.0
|
|
|
21.9
|
|
Total current
liabilities
|
191.5
|
|
|
184.2
|
|
Convertible
notes
|
329.9
|
|
|
317.5
|
|
Derivative
liability
|
60.2
|
|
|
51.6
|
|
Other non-current
liabilities
|
24.2
|
|
|
25.0
|
|
Total
liabilities
|
605.8
|
|
|
578.3
|
|
|
|
|
|
Redeemable
convertible preferred stock:
|
|
|
|
Non-controlling
interest redeemable convertible Series A Preferred Stock, $0.001
par value, 10,000,000 authorized shares; 35,805 shares issued and
outstanding as of March 31, 2018 and July 1, 2017
|
35.8
|
|
|
35.8
|
|
Total redeemable
convertible preferred stock
|
35.8
|
|
|
35.8
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 990,000,000 authorized shares, 62,588,096 and 61,476,103
shares issued and outstanding as of March 31, 2018 and July 1,
2017, respectively
|
0.1
|
|
|
0.1
|
|
Additional paid-in
capital
|
736.0
|
|
|
694.5
|
|
Retained
earnings
|
133.2
|
|
|
(83.2)
|
|
Accumulated other
comprehensive income
|
7.3
|
|
|
7.4
|
|
Total stockholders'
equity
|
876.6
|
|
|
618.8
|
|
Total liabilities,
redeemable convertible preferred stock, and stockholders'
equity
|
$
|
1,518.2
|
|
|
$
|
1,232.9
|
|
Use of Non-GAAP Financial Measures
In this press release, Lumentum provides investors with gross
margin, operating margin, net income, and net income (loss) per
share on a non-GAAP basis. Lumentum believes this non-GAAP
financial information provides additional insight into the
Company's on-going performance and has therefore chosen to provide
this information to investors for a more consistent basis of
comparison and to help them evaluate the results of the Company's
on-going operations and enable more meaningful period to period
comparisons. Specifically, the Company believes that providing this
information allows investors to better understand the Company's
financial performance and, importantly, to evaluate the efficacy of
the methodology and information used by management to evaluate and
measure such operating performance. However, these measures
may be different from non-GAAP measures used by other companies,
limiting their usefulness for comparison purposes. The non-GAAP
financial measures used in this press release should not be
considered in isolation from measures of financial performance
prepared in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. In particular, many of
the adjustments to our GAAP financial measures reflect the
exclusion of items that are recurring and will be reflected in our
financial results for the foreseeable future. Further, these
non-GAAP financial measures may not be comparable to similarly
titled measurements reported by other companies.
Non-GAAP gross margin, non-GAAP operating margin, non-GAAP net
income, and non-GAAP net income per share, Adjusted EBITDA,
non-GAAP gross profit, non-GAAP operating income, non-GAAP income
(loss) before income taxes and non-GAAP expenses exclude (i)
workforce related charges such as severance, retention bonuses and
employee relocation costs related to formal restructuring plans,
(ii) costs for facilities not required for ongoing operations, and
costs related to the relocation of certain equipment from these
facilities and/or contract manufacturer facilities, (iii)
stock-based compensation, (iv) amortization of acquired developed
technologies, (v) non-cash interest expense, (vi) unrealized loss
on derivative liability, (vii) warranty charges related to our
vendor quality issues with expected future recoveries, (viii)
release of a U.S. valuation allowance and the write down of
deferred tax assets due to the 2017 "Tax Cuts and Jobs Act", and
(ix) other charges comprised mainly of inventory write-downs due to
cancelled programs, as well as, acquisition, integration,
litigation and other costs and contingencies unrelated to current
and future operations. Management does not believe that these
non-GAAP items are reflective of the Company's underlying operating
performance. The presentation of these and other similar items in
Lumentum's non-GAAP financial results should not be interpreted as
implying that these items are non-recurring, infrequent or
unusual.
A quantitative reconciliation between GAAP and non-GAAP
financial data with respect to historical periods is included in
the supplemental financial table attached to this press
release.
LUMENTUM HOLDINGS
INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP
MEASURES (in millions, except per share
data) (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March 31,
2018
|
|
April 1,
2017
|
|
March 31,
2018
|
|
April 1,
2017
|
|
|
|
|
|
|
|
|
Gross profit on
GAAP basis
|
$
|
97.0
|
|
|
$
|
82.1
|
|
|
$
|
336.6
|
|
|
$
|
250.8
|
|
Stock-based
compensation
|
2.4
|
|
|
1.9
|
|
|
9.5
|
|
|
6.0
|
|
Other charges related
to non-recurring activities (a)
|
8.3
|
|
|
2.2
|
|
|
24.5
|
|
|
12.1
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
1.7
|
|
|
2.4
|
|
|
5.1
|
|
Gross profit on
non-GAAP basis
|
$
|
108.5
|
|
|
$
|
87.9
|
|
|
$
|
373.0
|
|
|
$
|
274.0
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
$
|
38.2
|
|
|
$
|
37.3
|
|
|
$
|
118.3
|
|
|
$
|
112.9
|
|
Stock-based
compensation
|
(3.6)
|
|
|
(3.0)
|
|
|
(10.5)
|
|
|
(8.8)
|
|
Other charges related
to non-recurring activities
|
0.4
|
|
|
(0.1)
|
|
|
(1.4)
|
|
|
(0.7)
|
|
Research and
development on non-GAAP basis
|
$
|
35.0
|
|
|
$
|
34.2
|
|
|
$
|
106.4
|
|
|
$
|
103.4
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative on GAAP basis
|
$
|
33.2
|
|
|
$
|
28.1
|
|
|
$
|
95.5
|
|
|
$
|
84.2
|
|
Stock-based
compensation
|
(5.0)
|
|
|
(3.2)
|
|
|
(15.1)
|
|
|
(10.1)
|
|
Other charges related
to non-recurring activities
|
(4.1)
|
|
|
(3.3)
|
|
|
(6.4)
|
|
|
(7.1)
|
|
Amortization of
acquired developed technologies
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.3)
|
|
Selling, general
and administrative on non-GAAP basis
|
$
|
24.1
|
|
|
$
|
21.5
|
|
|
$
|
74.0
|
|
|
$
|
66.7
|
|
|
|
|
|
|
|
|
|
Income from
operations on GAAP basis
|
$
|
25.5
|
|
|
$
|
13.6
|
|
|
$
|
119.0
|
|
|
$
|
43.7
|
|
Stock-based
compensation
|
11.0
|
|
|
8.1
|
|
|
35.1
|
|
|
24.9
|
|
Other charges related
to non-recurring activities (a)
|
12.0
|
|
|
5.6
|
|
|
32.3
|
|
|
19.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
1.8
|
|
|
2.4
|
|
|
5.4
|
|
Restructuring and
related charges
|
0.1
|
|
|
3.1
|
|
|
3.8
|
|
|
10.0
|
|
Income from
operations on non-GAAP basis
|
$
|
49.4
|
|
|
$
|
32.2
|
|
|
$
|
192.6
|
|
|
$
|
103.9
|
|
|
|
|
|
|
|
|
|
Interest and other
(expense) income, net on GAAP basis
|
$
|
(2.1)
|
|
|
$
|
(1.4)
|
|
|
$
|
(8.7)
|
|
|
$
|
(1.4)
|
|
Non-cash other income
(expense)
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.3)
|
|
Effective interest
expense on convertible notes
|
4.2
|
|
|
1.0
|
|
|
12.4
|
|
|
1.0
|
|
Interest and other
(expense) income, net on non-GAAP basis
|
$
|
2.0
|
|
|
$
|
(0.5)
|
|
|
$
|
3.6
|
|
|
$
|
(0.7)
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes on GAAP basis
|
$
|
2.7
|
|
|
$
|
(44.4)
|
|
|
$
|
101.7
|
|
|
$
|
(32.2)
|
|
Stock-based
compensation
|
11.0
|
|
|
8.1
|
|
|
35.1
|
|
|
24.9
|
|
Other charges related
to non-recurring activities (a)
|
12.0
|
|
|
5.6
|
|
|
32.3
|
|
|
19.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
1.8
|
|
|
2.4
|
|
|
5.4
|
|
Restructuring and
related charges
|
0.1
|
|
|
3.1
|
|
|
3.8
|
|
|
10.0
|
|
Non-cash other income
(expense)
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.3)
|
|
Effective interest
expense on convertible notes
|
4.2
|
|
|
1.0
|
|
|
12.4
|
|
|
1.0
|
|
Unrealized loss on
derivative liabilities
|
20.7
|
|
|
56.6
|
|
|
8.6
|
|
|
74.5
|
|
Income before
income taxes on non-GAAP basis
|
$
|
51.4
|
|
|
$
|
31.7
|
|
|
$
|
196.2
|
|
|
$
|
103.2
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes on GAAP basis
|
$
|
—
|
|
|
$
|
11.6
|
|
|
$
|
(112.9)
|
|
|
$
|
15.4
|
|
Impact of non-GAAP
income tax (benefit) expense (b)
|
0.8
|
|
|
(10.7)
|
|
|
122.9
|
|
|
(9.6)
|
|
Provision for
income taxes on non-GAAP basis
|
$
|
0.8
|
|
|
$
|
0.9
|
|
|
$
|
10.0
|
|
|
$
|
5.8
|
|
|
|
|
|
|
|
|
|
Net income (loss)
on GAAP basis
|
$
|
2.7
|
|
|
$
|
(56.0)
|
|
|
$
|
214.6
|
|
|
$
|
(47.6)
|
|
Stock-based
compensation
|
11.0
|
|
|
8.1
|
|
|
35.1
|
|
|
24.9
|
|
Other charges related
to non-recurring activities (a)
|
12.0
|
|
|
5.6
|
|
|
32.3
|
|
|
19.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
1.8
|
|
|
2.4
|
|
|
5.4
|
|
Restructuring and
related charges
|
0.1
|
|
|
3.1
|
|
|
3.8
|
|
|
10.0
|
|
Non-cash other income
(expense)
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.3)
|
|
Effective interest
expense on convertible notes
|
4.2
|
|
|
1.0
|
|
|
12.4
|
|
|
1.0
|
|
Unrealized loss on
derivative liabilities
|
20.7
|
|
|
56.6
|
|
|
8.6
|
|
|
74.5
|
|
Impact of non-GAAP
income tax benefit (expense) (b)
|
(0.8)
|
|
|
10.7
|
|
|
(122.9)
|
|
|
9.6
|
|
Net income on
non-GAAP basis
|
$
|
50.6
|
|
|
$
|
30.8
|
|
|
$
|
186.2
|
|
|
$
|
97.4
|
|
|
|
|
|
|
|
|
|
Net income per
share on non-GAAP basis
|
$
|
0.78
|
|
|
$
|
0.49
|
|
|
$
|
2.88
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - diluted on GAAP basis
|
63.3
|
|
|
61.0
|
|
|
63.2
|
|
|
60.4
|
|
Non-GAAP adjustment
(c)
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.0
|
|
Effect of diluted
securities from Series A Preferred Stock (d)
|
1.5
|
|
|
1.5
|
|
|
1.5
|
|
|
1.5
|
|
Shares used in per
share calculation - diluted on non-GAAP basis
|
64.8
|
|
|
63.4
|
|
|
64.7
|
|
|
62.9
|
|
|
|
(a)
|
The increase during
the nine months ended March 31, 2018 primarily relates to set-up
costs of our Thailand facility, including costs of transferring
product lines to Thailand, as well as inventory write-downs due to
cancelled programs.
|
(b)
|
The change during the
nine months ended March 31, 2018 is primarily attributable to a
credit of $207.0 million related to a release of a U.S. valuation
allowance, which was offset by the write down of deferred tax
assets due to the 2017 "Tax Cuts and Jobs Act" reform in the amount
of $83.0 million.
|
(c)
|
This adjustment
represents weighted-average potentially dilutive securities from
our stock-based benefit plans excluded from the computation of
diluted net loss per share attributable to common stockholders on a
GAAP basis because the effect would have been antidilutive. This
adjustment amount is added for the computation of diluted net
income per share on a non-GAAP basis as we had a net income on a
non-GAAP basis for all periods presented.
|
(d)
|
For all periods
presented, 1.5 million shares related to the potential conversion
of the Series A Preferred Stock were added to the calculation of
diluted shares available on a non-GAAP basis because their
inclusion results in more dilutive earnings per share.
|
LUMENTUM HOLDINGS
INC. RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED
EBITDA (in millions) (unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March 31,
2018
|
|
April 1,
2017
|
|
March 31,
2018
|
|
April 1,
2017
|
GAAP net income
(loss)
|
$
|
2.7
|
|
|
$
|
(56.0)
|
|
|
$
|
214.6
|
|
|
$
|
(47.6)
|
|
Interest and other
expense (income), net
|
2.1
|
|
|
1.4
|
|
|
8.7
|
|
|
1.4
|
|
Provision for
(benefit from) income taxes (a)
|
—
|
|
|
11.6
|
|
|
(112.9)
|
|
|
15.4
|
|
Depreciation
|
18.4
|
|
|
14.1
|
|
|
53.3
|
|
|
39.1
|
|
Amortization
|
0.8
|
|
|
1.8
|
|
|
2.4
|
|
|
5.4
|
|
EBITDA
|
24.0
|
|
|
(27.1)
|
|
|
166.1
|
|
|
13.7
|
|
Restructuring and
related charges
|
0.1
|
|
|
3.1
|
|
|
3.8
|
|
|
10.0
|
|
Stock-based
compensation
|
11.0
|
|
|
8.1
|
|
|
35.1
|
|
|
24.9
|
|
Other charges related
to non-recurring activities (b)
|
12.0
|
|
|
5.6
|
|
|
32.3
|
|
|
19.9
|
|
Unrealized loss on derivative liabilities
|
20.7
|
|
|
56.6
|
|
|
8.6
|
|
|
74.5
|
|
Adjusted
EBITDA
|
$
|
67.8
|
|
|
$
|
46.3
|
|
|
$
|
245.9
|
|
|
$
|
143.0
|
|
|
|
(a)
|
The change during the
nine months ended March 31, 2018 is primarily attributable to a
credit of $207.0 million related to a release of a U.S. valuation
allowance, which was offset by the write-down of deferred tax
assets due to the 2017 "Tax Cuts and Jobs Act" reform in the amount
of $83.0 million.
|
(b)
|
The change during the
nine months ended March 31, 2018 primarily relates to set-up costs
of our Thailand facility, including costs of transferring product
lines to Thailand, as well as inventory write-downs due to
cancelled programs.
|
View original
content:http://www.prnewswire.com/news-releases/lumentum-announces-fiscal-third-quarter-2018-results-300641029.html
SOURCE Lumentum