MILPITAS, Calif., Nov. 1,
2018 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum" or the
"Company") today reported results for its fiscal first quarter
ended September 29, 2018.
Net revenue for the fiscal first quarter of 2019 was
$354.1 million, with GAAP net income
attributable to common stockholders of $46.1
million, or $0.72 per diluted
share. Net revenue for the fiscal fourth quarter of 2018 was
$301.1 million, with GAAP net income
attributable to common stockholders of $25.7
million, or $0.40 per diluted
share. Net revenue for the fiscal first quarter of 2018 was
$243.2 million, with GAAP net income
attributable to common stockholders of $2.9
million, or $0.04 per diluted
share.
Non-GAAP net income for the fiscal first quarter of 2019 was
$85.8 million, or $1.31 per diluted share. Non-GAAP net income for
the fiscal fourth quarter of 2018 was $61.6
million, or $0.95 per diluted
share. Non-GAAP net income for the fiscal first quarter of 2018 was
$27.8 million, or $0.43 per diluted share.
The Company held $734.3 million in
total cash and short-term investments at the end of the fiscal
first quarter of 2019.
"Strong telecom and fiber laser demand, along with 3D
sensing expansion across multiple customers and their products
drove solid first quarter results," said Alan Lowe, President and CEO. "Revenues were up
more than 45% relative to the prior year, and we saw new record
revenues in ROADMs and fiber lasers. Our strategic
investments in differentiated products targeting growth markets
reliant on photonics have proven successful and position us well
for the years to come."
Financial Overview – Fiscal First Quarter Ended
September 29, 2018
|
GAAP Results ($ in
millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Change
|
|
FY
2019
|
|
FY
2018
|
|
FY
2018
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$354.1
|
|
$301.1
|
|
$243.2
|
|
17.6%
|
|
45.6%
|
Gross
margin
|
35.6%
|
|
31.7%
|
|
28.2%
|
|
3.9%
|
|
7.4%
|
Operating
margin
|
16.1%
|
|
6.9%
|
|
1.1%
|
|
9.2%
|
|
15.0%
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results
($ in millions)
|
|
Q1
|
|
Q4
|
|
Q1
|
|
Change
|
|
FY
2019
|
|
FY
2018
|
|
FY
2018
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$354.1
|
|
$301.1
|
|
$243.2
|
|
17.6%
|
|
45.6%
|
Gross
margin
|
40.3%
|
|
37.2%
|
|
34.0%
|
|
3.1%
|
|
6.3%
|
Operating
margin
|
23.9%
|
|
17.8%
|
|
11.8%
|
|
6.1%
|
|
12.1%
|
|
|
Net Revenue by
Segment ($ in millions)
|
|
Q1
|
|
%
of
|
|
Q4
|
|
Q1
|
|
Change
|
|
FY
2019
|
|
Net
Revenue
|
|
FY
2018
|
|
FY
2018
|
|
Q/Q
|
|
Y/Y
|
Optical
Communications
|
$310.1
|
|
87.6%
|
|
$244.9
|
|
$207.9
|
|
26.6%
|
|
49.2%
|
Lasers
|
44.0
|
|
12.4%
|
|
56.2
|
|
35.3
|
|
(21.7)%
|
|
24.6%
|
Total
|
$354.1
|
|
100.0%
|
|
$301.1
|
|
$243.2
|
|
17.6%
|
|
45.6%
|
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."
On July 1, 2018, we adopted
Accounting Standards Update (ASU) 2014-09, Revenue from Contracts
with Customers (Topic 606) using the modified retrospective method
applied to all contracts that are not completed contracts at the
date of initial adoption(i.e., July 1,
2018). Results for reporting periods after July 1, 2018 are presented under Topic 606, while
prior period amounts are not adjusted and continue to be reported
in accordance with our historic accounting under Topic 605. The
adoption of Topic 606 did not have a material impact on the nature
and timing of our revenues, consolidated statements of operations,
cash flows, and balance sheet and therefore, we do not present
results for the three months ended September
29, 2018 under Topic 605.
Business Outlook
The Company expects the following for the fiscal second
quarter 2019:
- Net revenue to be in the range of $405 million to $430
million
- Non-GAAP operating margin of 28.0% to 30.0%
- Non-GAAP diluted earnings per share of $1.60 to $1.75
Note: Earnings per share based on approximately 65.9
million shares outstanding on a fully diluted basis
Our projection of 65.9 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. Our guidance does not include
results from Oclaro or shares issued in connection with the closing
of our acquisition of Oclaro as we are unable to predict the timing
of the closing.
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 November 1, 2018,
at 5:30 am PT/8:30 am ET. A live webcast of the call and the
replay will be available on the Lumentum website at
http://investor.lumentum.com through November 8, 2018, at
11:59 pm 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 strategies and our expectations with regard to
such strategies, our expectations for our markets, any anticipation
or guidance as to future financial performance, including the
general trends in our business and the industries in which we
operate, future net revenue, earnings per share, and operating
margins, and anticipated trends in our markets. 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 for our forecasted demand; (e) inherent
uncertainty related to global markets, including the imposition of
tariffs or other duties, and the effect of such markets on demand
for our products; (f) changes in customer demand; (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 shares to be issued as consideration in the Oclaro merger;
(k) the risk that required governmental approvals of the Oclaro
merger (including China antitrust approvals) will not be obtained
or that such approvals will be delayed beyond current expectations;
(l) the risk that following the Oclaro transaction, Lumentum's
financing or operating strategies will not be successful; (m)
litigation in respect of Lumentum or Oclaro or the merger; and (n)
disruption from the Oclaro 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 first
quarter ended September 29, 2018, filed with the Securities
and Exchange Commission, in the S-4, as amended, filed by Lumentum
with the Securities and Exchange Commission which was declared
effective May 31, 2018, 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, including the Company's Annual Report on Form 10-K for
the fiscal year ended June 30, 2018, filed by Lumentum with the
Securities and Exchange Commission on August 28, 2018. 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.
No Offer or Solicitation
This communication is for informational purposes only and not
intended to and does not constitute an offer to subscribe for, buy
or sell, the solicitation of an offer to subscribe for, buy or sell
or an invitation to subscribe for, buy or sell any securities or
the solicitation of any vote or approval in any jurisdiction
pursuant to or in connection with the proposed Oclaro transaction
or otherwise, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in contravention of applicable law.
No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended, and otherwise in accordance with
applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction between Lumentum
Holdings Inc. ("Lumentum") and Oclaro, Inc. ("Oclaro"), Lumentum
filed a registration statement on Form S-4 with the Securities and
Exchange Commission (the "SEC"), which includes a proxy statement
of Oclaro that also constitutes a prospectus of Lumentum. The
registration statement was declared effective by the SEC on
May 31, 2018, and Oclaro commenced
mailing the definitive joint proxy statement/prospectus to
stockholders of Oclaro on or about June 4,
2018, and the special meeting of the stockholders of Oclaro
was held on July 10, 2018.
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 BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION.
Investors and security holders may obtain these materials 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.
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
|
|
September 29,
2018
|
|
September 30,
2017
|
Net
revenue
|
$
|
354.1
|
|
|
$
|
243.2
|
|
Cost of
sales
|
227.3
|
|
|
173.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
0.8
|
|
Gross
profit
|
126.0
|
|
|
68.5
|
|
Operating
expenses:
|
|
|
|
Research and development
|
34.6
|
|
|
36.3
|
|
Selling, general and administrative
|
33.0
|
|
|
26.6
|
|
Restructuring and related charges
|
1.3
|
|
|
2.9
|
|
Total operating
expenses
|
68.9
|
|
|
65.8
|
|
Income from
operations
|
57.1
|
|
|
2.7
|
|
Unrealized gain
(loss) on derivative liability
|
(2.1)
|
|
|
4.2
|
|
Interest and other
income (expense), net
|
(2.4)
|
|
|
(3.4)
|
|
Income before income
taxes
|
52.6
|
|
|
3.5
|
|
Provision for
(benefit from) income taxes
|
5.2
|
|
|
(3.6)
|
|
Net income
|
47.4
|
|
|
7.1
|
|
|
|
|
|
Items reconciling net
income to net income attributable to common
stockholders:
|
|
|
|
Cumulative dividends
on Series A Preferred Stock
|
(0.2)
|
|
|
(0.2)
|
|
Earnings allocated to
Series A Preferred Stock
|
(1.1)
|
|
|
(0.2)
|
|
Net income
attributable to common stockholders - Basic
|
$
|
46.1
|
|
|
$
|
6.7
|
|
Add: Earnings
allocated to Series A Preferred Stock
|
—
|
|
|
0.2
|
|
Add/Less:
Unrealized (gain) loss on derivative liability on Series A
Preferred Stock
|
—
|
|
|
(4.2)
|
|
Add: Cumulative
dividends on Series A Preferred Stock
|
—
|
|
|
0.2
|
|
Net income
attributable to common stockholders - Diluted
(a)
|
$
|
46.1
|
|
|
$
|
2.9
|
|
|
|
|
|
Net income per share
attributable to common stockholders:
|
|
|
|
Basic
|
$
|
0.73
|
|
|
$
|
0.11
|
|
Diluted
|
$
|
0.72
|
|
|
$
|
0.04
|
|
|
|
|
|
Shares used to
compute net income per share attributable to common
stockholders:
|
|
|
|
Basic
|
63.1
|
|
|
61.7
|
|
Diluted
|
63.9
|
|
|
64.5
|
|
|
|
(a)
|
For the three months
ended September 30, 2017, our diluted earnings per share
attributable to common stockholders is calculated using the
if-converted method because it is more dilutive, whereas for the
three months ended September 29, 2018, our diluted earnings per
share attributable to common stockholders is calculated using the
treasury stock method.
|
LUMENTUM HOLDINGS
INC. CONSOLIDATED BALANCE SHEETS (in millions,
except share and per share
data) (unaudited)
|
|
|
|
|
|
September 29,
2018
|
|
June 30,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
459.4
|
|
|
$
|
397.3
|
|
Short-term
investments
|
274.9
|
|
|
314.2
|
|
Accounts receivable,
net
|
239.6
|
|
|
197.1
|
|
Inventories
|
136.6
|
|
|
153.6
|
|
Prepayments and other
current assets
|
70.6
|
|
|
65.0
|
|
Total current
assets
|
1,181.1
|
|
|
1,127.2
|
|
Property, plant and
equipment, net
|
318.6
|
|
|
306.9
|
|
Goodwill and
intangibles, net
|
17.6
|
|
|
18.3
|
|
Deferred income
taxes
|
122.0
|
|
|
125.6
|
|
Other non-current
assets
|
5.7
|
|
|
3.5
|
|
Total
assets
|
$
|
1,645.0
|
|
|
$
|
1,581.5
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
127.6
|
|
|
$
|
126.5
|
|
Accrued payroll and
related expenses
|
30.3
|
|
|
31.5
|
|
Accrued
expenses
|
35.0
|
|
|
33.9
|
|
Other current
liabilities
|
21.0
|
|
|
22.1
|
|
Total current
liabilities
|
213.9
|
|
|
214.0
|
|
Convertible
notes
|
338.5
|
|
|
334.2
|
|
Derivative
liability
|
54.5
|
|
|
52.4
|
|
Other non-current
liabilities
|
18.8
|
|
|
19.0
|
|
Total
liabilities
|
625.7
|
|
|
619.6
|
|
|
|
|
|
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 September 29, 2018 and June 30, 2018
|
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, 63,346,678 and 62,790,087
shares issued and outstanding as of September 29, 2018 and June 30,
2018, respectively
|
0.1
|
|
|
0.1
|
|
Additional paid-in
capital
|
763.5
|
|
|
753.2
|
|
Retained
earnings
|
213.0
|
|
|
166.4
|
|
Accumulated other
comprehensive income
|
6.9
|
|
|
6.4
|
|
Total stockholders'
equity
|
983.5
|
|
|
926.1
|
|
Total liabilities,
redeemable convertible preferred stock, and stockholders'
equity
|
$
|
1,645.0
|
|
|
$
|
1,581.5
|
|
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, non-GAAP gross profit,
non-GAAP operating income, non-GAAP income (loss) before income
taxes and non-GAAP expenses exclude (i) stock-based compensation,
(ii) acquisition related costs, (iii) other charges comprised
mainly of 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 and other costs and contingencies unrelated
to current and future operations, (iv) amortization of acquired
developed technologies, (v) workforce related charges such as
severance, retention bonuses and employee relocation costs related
to formal restructuring plans, (vi) non-cash interest expense,
(vii) unrealized gain (loss) on derivative liability, and (viii)
non-cash income tax provision impacts, for example, a release of a
U.S. valuation allowance, and the write down of deferred tax assets
due to the 2017 Tax Cuts and Jobs Act. 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
|
|
September
29, 2018
|
|
September
30, 2017
|
|
|
|
|
Gross profit on
GAAP basis
|
$
|
126.0
|
|
|
$
|
68.5
|
|
Stock-based
compensation
|
3.3
|
|
|
2.7
|
|
Other charges related
to non-recurring activities (1)
|
12.5
|
|
|
10.7
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
0.8
|
|
Gross profit on
non-GAAP basis
|
$
|
142.6
|
|
|
$
|
82.7
|
|
|
|
|
|
Research and
development on GAAP basis
|
$
|
34.6
|
|
|
$
|
36.3
|
|
Stock-based
compensation
|
(2.8)
|
|
|
(3.1)
|
|
Other charges related
to non-recurring activities
|
(0.2)
|
|
|
(0.7)
|
|
Research and
development on non-GAAP basis
|
$
|
31.6
|
|
|
$
|
32.5
|
|
|
|
|
|
Selling, general
and administrative on GAAP basis
|
$
|
33.0
|
|
|
$
|
26.6
|
|
Stock-based
compensation
|
(4.7)
|
|
|
(3.5)
|
|
Acquisition related
costs
|
(1.1)
|
|
|
—
|
|
Other charges related
to non-recurring activities
|
(0.9)
|
|
|
(1.5)
|
|
Amortization of
acquired developed technologies
|
—
|
|
|
—
|
|
Selling, general
and administrative on non-GAAP basis
|
$
|
26.3
|
|
|
$
|
21.6
|
|
|
|
|
|
Income from
operations on GAAP basis
|
$
|
57.1
|
|
|
$
|
2.7
|
|
Stock-based
compensation
|
10.8
|
|
|
9.3
|
|
Acquisition related
costs
|
1.1
|
|
|
—
|
|
Other charges related
to non-recurring activities
|
13.6
|
|
|
12.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
0.8
|
|
Restructuring and
related charges
|
1.3
|
|
|
2.9
|
|
Income from
operations on non-GAAP basis
|
$
|
84.7
|
|
|
$
|
28.6
|
|
|
|
|
|
Interest and other
(expense) income, net on GAAP basis
|
$
|
(2.4)
|
|
|
$
|
(3.4)
|
|
Other interest and
(income) expense adjustments
|
(0.2)
|
|
|
—
|
|
Effective interest
expense on convertible notes
|
4.3
|
|
|
4.1
|
|
Interest and other
(expense) income, net on non-GAAP basis
|
$
|
1.7
|
|
|
$
|
0.7
|
|
|
|
|
|
Income before
income taxes on GAAP basis
|
$
|
52.6
|
|
|
$
|
3.5
|
|
Stock-based
compensation
|
10.8
|
|
|
9.3
|
|
Acquisition related
costs
|
1.1
|
|
|
—
|
|
Other charges related
to non-recurring activities
|
13.6
|
|
|
12.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
0.8
|
|
Restructuring and
related charges
|
1.3
|
|
|
2.9
|
|
Other interest and
(income) expense adjustments
|
(0.2)
|
|
|
—
|
|
Effective interest
expense on convertible notes
|
4.3
|
|
|
4.1
|
|
Unrealized (gain)
loss on derivative liability
|
2.1
|
|
|
(4.2)
|
|
Income before
income taxes on non-GAAP basis
|
$
|
86.4
|
|
|
$
|
29.3
|
|
|
|
|
|
Provision for
(benefit from) income taxes on GAAP basis
|
$
|
5.2
|
|
|
$
|
(3.6)
|
|
Income tax
adjustments
|
(4.6)
|
|
|
5.1
|
|
Provision for
(benefit from) income taxes on non-GAAP basis
|
$
|
0.6
|
|
|
$
|
1.5
|
|
|
|
|
|
Net income on GAAP
basis
|
$
|
47.4
|
|
|
$
|
7.1
|
|
Stock-based
compensation
|
10.8
|
|
|
9.3
|
|
Acquisition related
costs
|
1.1
|
|
|
—
|
|
Other charges related
to non-recurring activities
|
13.6
|
|
|
12.9
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
0.8
|
|
Restructuring and
related charges
|
1.3
|
|
|
2.9
|
|
Other interest and
(income) expense adjustments
|
(0.2)
|
|
|
—
|
|
Effective interest
expense on convertible notes
|
4.3
|
|
|
4.1
|
|
Unrealized (gain)
loss on derivative liability
|
2.1
|
|
|
(4.2)
|
|
Income tax
adjustments
|
4.6
|
|
|
(5.1)
|
|
Net income on
non-GAAP basis
|
$
|
85.8
|
|
|
$
|
27.8
|
|
|
|
|
|
Net income per
share on non-GAAP basis
|
$
|
1.31
|
|
|
$
|
0.43
|
|
|
|
|
|
Shares used in per
share calculation - diluted on GAAP basis
|
63.9
|
|
|
64.5
|
|
Effect of diluted
securities from Series A Preferred Stock (2)
|
1.5
|
|
|
—
|
|
Shares used in per
share calculation - diluted on non-GAAP basis
|
65.4
|
|
|
64.5
|
|
|
|
(1)
|
For the three months
ended September 29, 2018, other charges related to non-recurring
activities primarily include set-up costs of our facility in
Thailand, including costs of transferring product lines to Thailand
of $12.7 million. For the three months ended September 30, 2017,
other charges related to non-recurring activities primarily include
set-up costs of our facility in Thailand of $3.1 million, as well
as inventory write-downs due to canceled programs not allocated to
the segments of $7.0 million.
|
|
|
(2)
|
For the three months
ended September 29, 2018, 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
EBITDA (in millions) (unaudited)
|
|
|
|
Three Months
Ended
|
|
September 29,
2018
|
|
September 30,
2017
|
GAAP net
income
|
$
|
47.4
|
|
|
$
|
7.1
|
|
Interest and other
expense (income), net
|
2.4
|
|
|
3.4
|
|
Provision for
(benefit from) income taxes
|
5.2
|
|
|
(3.6)
|
|
Depreciation
|
19.7
|
|
|
16.7
|
|
Amortization of
acquired developed technologies
|
0.8
|
|
|
0.8
|
|
EBITDA
|
$
|
75.5
|
|
|
$
|
24.4
|
|
View original
content:http://www.prnewswire.com/news-releases/lumentum-announces-fiscal-first-quarter-2019-results-300741988.html
SOURCE Lumentum