MILPITAS, Calif., Feb. 5,
2019 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum" or the
"Company") today reported results for its fiscal second quarter
ended December 29, 2018.
Net revenue for the fiscal second quarter of 2019 was
$373.7 million, with GAAP net income
attributable to common stockholders of $5.4
million, or $0.08 per diluted
share. 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 second quarter of 2018 was
$404.6 million, with GAAP net income
attributable to common stockholders of $196.9 million, or $3.05 per diluted share.
Non-GAAP net income for the fiscal second quarter of 2019 was
$78.3 million, or $1.15 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 second quarter of 2018
was $107.8 million, or $1.67 per diluted share.
The Company held $684.1 million in
total cash and short-term investments at the end of the fiscal
second quarter of 2019.
"Our investments in new and differentiated products continue to
drive growth in our telecom and lasers product lines. ROADM and
fiber laser revenues more than doubled over the prior year and once
again achieved new record levels in the second quarter," said
Alan Lowe President and CEO.
"Strength in Telecom demand is expected to continue in the third
quarter, counter to historical seasonality. Second quarter 3D
sensing revenue came in as expected, and we continue to make
progress with new design wins with new and existing customers. The
closing of the Oclaro acquisition in December gives us a first
mover advantage in a consolidating industry and establishes
leadership positions based on fundamental photonic chip
capabilities across a broad range of products and technologies to
address the growing communications, industrial, and consumer
markets."
Financial Overview – Fiscal Second Quarter Ended
December 29, 2018
|
GAAP Results ($ in
millions)
|
|
Q2
|
|
Q1
|
|
Q2
|
|
Change
|
|
FY
2019
|
|
FY
2019
|
|
FY
2018
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$373.7
|
|
$354.1
|
|
$404.6
|
|
5.5%
|
|
(7.6)%
|
Gross
margin
|
33.4%
|
|
35.6%
|
|
42.3%
|
|
(220)bps
|
|
(890)bps
|
Operating
margin
|
3.1%
|
|
16.1%
|
|
22.4%
|
|
(1300)bps
|
|
(1930)bps
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results
($ in millions)
|
|
Q2
|
|
Q1
|
|
Q2
|
|
Change
|
|
FY
2019
|
|
FY
2019
|
|
FY
2018
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$373.7
|
|
$354.1
|
|
$404.6
|
|
5.5%
|
|
(7.6)%
|
Gross
margin
|
40.1%
|
|
40.3%
|
|
44.9%
|
|
(20)bps
|
|
(480)bps
|
Operating
margin
|
22.0%
|
|
23.9%
|
|
28.3%
|
|
(190)bps
|
|
(630)bps
|
|
Net Revenue by
Segment ($ in millions)
|
|
Q2
|
|
%
of
|
|
Q1
|
|
Q2
|
|
Change
|
|
FY
2019
|
|
Net
Revenue
|
|
FY
2019
|
|
FY
2018
|
|
Q/Q
|
|
Y/Y
|
Optical
Communications
|
$325.4
|
|
87.1%
|
|
$310.1
|
|
$360.1
|
|
4.9%
|
|
(9.6)%
|
Lasers
|
48.3
|
|
12.9%
|
|
44.0
|
|
44.5
|
|
9.8%
|
|
8.5%
|
Total
|
$373.7
|
|
100.0%
|
|
$354.1
|
|
$404.6
|
|
5.5%
|
|
(7.6)%
|
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 and six months ended December 29, 2018 under Topic 605.
Business Outlook
The Company expects the following for the fiscal third
quarter 2019:
- Net revenue to be in the range of $420 million to $440
million
- Non-GAAP operating margin of 16.0% to 18.0%
- Non-GAAP diluted earnings per share of $0.76 to $0.94
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, transferring product lines
to Thailand, amortization of fair
value adjustments 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 February 5, 2019,
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 February 12, 2019, 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 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.
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 demand for our products, 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 changes in the political or economic environment
and 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 synergies
and non-GAAP earnings accretion will not be realized or realized to
the extent anticipated; (i) the risk that Lumentum's financing or
operating strategies will not be successful; (j) litigation
relating to the merger; and (k) 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 quarter ended December 29, 2018, to be 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.
Contact
Information
|
|
|
|
Investors:
|
Chris Coldren,
408-404-0606; investor.relations@lumentum.com
|
|
Jim Fanucchi,
408-404-5400; investor.relations@lumentum.com
|
Media:
|
Greg Kaufman,
408-546-4593; media@lumentum.com
|
The following financial tables are presented in accordance with
GAAP, unless otherwise specified.
LUMENTUM HOLDINGS
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in millions,
except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
December
29,
2018
|
|
December 30,
2017
|
|
December 29,
2018
|
|
December 30,
2017
|
Net
revenue
|
$
|
373.7
|
|
|
$
|
404.6
|
|
|
$
|
727.8
|
|
|
$
|
647.8
|
|
Cost of
sales
|
244.5
|
|
|
232.7
|
|
|
471.8
|
|
|
406.6
|
|
Amortization of
acquired intangibles
|
4.4
|
|
|
0.8
|
|
|
5.2
|
|
|
1.6
|
|
Gross
profit
|
124.8
|
|
|
171.1
|
|
|
250.8
|
|
|
239.6
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and development
|
42.8
|
|
|
43.8
|
|
|
77.4
|
|
|
80.1
|
|
Selling, general and administrative
|
62.7
|
|
|
35.7
|
|
|
95.7
|
|
|
62.3
|
|
Restructuring and related charges
|
7.8
|
|
|
0.8
|
|
|
9.1
|
|
|
3.7
|
|
Total operating
expenses
|
113.3
|
|
|
80.3
|
|
|
182.2
|
|
|
146.1
|
|
Income from
operations
|
11.5
|
|
|
90.8
|
|
|
68.6
|
|
|
93.5
|
|
Unrealized gain
(loss) on derivative liability
|
10.9
|
|
|
7.9
|
|
|
8.8
|
|
|
12.1
|
|
Interest and other
income (expense), net
|
(4.7)
|
|
|
(3.2)
|
|
|
(7.1)
|
|
|
(6.6)
|
|
Income before income
taxes
|
17.7
|
|
|
95.5
|
|
|
70.3
|
|
|
99.0
|
|
Provision for
(benefit from) income taxes
|
1.4
|
|
|
(109.3)
|
|
|
6.6
|
|
|
(112.9)
|
|
Net income
|
16.3
|
|
|
204.8
|
|
|
63.7
|
|
|
211.9
|
|
|
|
|
|
|
|
|
|
Items reconciling net
income to net income attributable to common
stockholders:
|
|
|
|
|
|
|
|
Less: Cumulative
dividends on Series A Preferred Stock
|
(0.1)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
|
(0.5)
|
|
Less: Earnings
allocated to Series A Preferred Stock
|
(0.1)
|
|
|
(4.7)
|
|
|
(1.2)
|
|
|
(4.9)
|
|
Net income
attributable to common stockholders - Basic
|
$
|
16.1
|
|
|
$
|
199.8
|
|
|
$
|
62.2
|
|
|
$
|
206.5
|
|
Add: Earnings
allocated to Series A Preferred Stock
|
0.1
|
|
|
4.7
|
|
|
1.2
|
|
|
4.9
|
|
Add/Less: Unrealized
(gain) loss on derivative liability on Series A Preferred
Stock
|
(10.9)
|
|
|
(7.9)
|
|
|
(8.8)
|
|
|
(12.1)
|
|
Add: Cumulative
dividends on Series A Preferred Stock
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
0.5
|
|
Net income
attributable to common stockholders - Diluted
(a)
|
$
|
5.4
|
|
|
$
|
196.9
|
|
|
$
|
54.9
|
|
|
$
|
199.8
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.24
|
|
|
$
|
3.21
|
|
|
$
|
0.96
|
|
|
$
|
3.34
|
|
Diluted
|
$
|
0.08
|
|
|
$
|
3.05
|
|
|
$
|
0.82
|
|
|
$
|
3.10
|
|
|
|
|
|
|
|
|
|
Shares used to
compute net income per share attributable to common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
66.8
|
|
|
62.2
|
|
|
65.0
|
|
|
61.9
|
|
Diluted
|
67.8
|
|
|
64.6
|
|
|
66.6
|
|
|
64.5
|
|
|
(a) For the three and
six months ended December 29, 2018 and December 30, 2017, our
diluted earnings per share attributable to common stockholders is
calculated using the two-class method because it is more dilutive
than using the treasury stock method.
|
LUMENTUM HOLDINGS
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in millions,
except share and per share data)
|
(unaudited)
|
|
|
December 29,
2018
|
|
June 30,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
371.3
|
|
|
$
|
397.3
|
|
Short-term
investments
|
312.8
|
|
|
314.2
|
|
Accounts receivable,
net
|
266.5
|
|
|
197.1
|
|
Inventories
|
303.2
|
|
|
153.6
|
|
Prepayments and other
current assets
|
103.1
|
|
|
65.0
|
|
Total current
assets
|
1,356.9
|
|
|
1,127.2
|
|
Property, plant and
equipment, net
|
444.7
|
|
|
306.9
|
|
Goodwill
|
344.7
|
|
|
11.3
|
|
Other intangible
assets, net
|
445.0
|
|
|
7.0
|
|
Deferred income
taxes
|
184.3
|
|
|
125.6
|
|
Other non-current
assets
|
21.0
|
|
|
3.5
|
|
Total
assets
|
$
|
2,796.6
|
|
|
$
|
1,581.5
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
199.2
|
|
|
$
|
126.5
|
|
Accrued payroll and
related expenses
|
41.2
|
|
|
31.5
|
|
Accrued
expenses
|
46.5
|
|
|
33.9
|
|
Term loan,
current
|
5.0
|
|
|
—
|
|
Other current
liabilities
|
33.6
|
|
|
22.1
|
|
Total current
liabilities
|
325.5
|
|
|
214.0
|
|
Convertible
notes
|
342.9
|
|
|
334.2
|
|
Term loan,
non-current
|
485.8
|
|
|
—
|
|
Derivative
liability
|
—
|
|
|
52.4
|
|
Deferred tax
liability
|
56.1
|
|
|
0.3
|
|
Other non-current
liabilities
|
26.6
|
|
|
18.7
|
|
Total
liabilities
|
1,236.9
|
|
|
619.6
|
|
Redeemable
convertible preferred stock:
|
|
|
|
Non-controlling
interest redeemable convertible Series A Preferred Stock, $0.001
par value, 10,000,000 authorized shares; zero and 35,805 shares
issued and outstanding as of December 29, 2018 and June 30, 2018,
respectively
|
—
|
|
|
35.8
|
|
Total redeemable
convertible preferred stock
|
—
|
|
|
35.8
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 990,000,000 authorized shares, 76,102,664 and 62,790,087
shares issued and outstanding as of December 29, 2018 and June 30,
2018, respectively
|
0.1
|
|
|
0.1
|
|
Additional paid-in
capital
|
1,324.2
|
|
|
753.2
|
|
Retained
earnings
|
229.2
|
|
|
166.4
|
|
Accumulated other
comprehensive income
|
6.2
|
|
|
6.4
|
|
Total stockholders'
equity
|
1,559.7
|
|
|
926.1
|
|
Total liabilities,
redeemable convertible preferred stock, and stockholders'
equity
|
$
|
2,796.6
|
|
|
$
|
1,581.5
|
|
Use of Non-GAAP Financial Measures
In this press release, Lumentum provides investors with gross
margin, gross profit, operating margin, operating income, income
(loss) before income taxes and certain expenses, 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 gross profit, non-GAAP expenses,
non-GAAP operating margin, non-GAAP operating income, non-GAAP
income (loss) before income taxes, non-GAAP net income, and
non-GAAP net income per share exclude (i) stock-based compensation,
(ii) acquisition related costs, (iii) inventory write-downs due to
cancelled programs and other costs and contingencies unrelated to
current and future operations, (iv) amortization of acquired
intangibles, (v) workforce related charges such as severance,
retention bonuses and employee relocation costs related to formal
restructuring plans, (vi) amortization of fair value adjustments,
(vii) non-cash interest expense, (viii) unrealized gain (loss) on
derivative liability, (ix) transferring product lines to
Thailand and (x) 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
|
|
Six Months
Ended
|
|
December 29,
2018
|
|
December 30,
2017
|
|
December 29,
2018
|
|
December 30,
2017
|
|
|
|
|
|
|
|
|
Gross profit on
GAAP basis
|
$
|
124.8
|
|
|
$
|
171.1
|
|
|
$
|
250.8
|
|
|
$
|
239.6
|
|
Stock-based
compensation (2)
|
5.2
|
|
|
4.4
|
|
|
8.5
|
|
|
7.1
|
|
Other charges related
to non-recurring activities (1)
|
14.0
|
|
|
5.5
|
|
|
26.5
|
|
|
16.2
|
|
Amortization of
acquired intangibles
|
4.4
|
|
|
0.8
|
|
|
5.2
|
|
|
1.6
|
|
Amortization of fair
value adjustments (3)
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
|
Gross profit on
non-GAAP basis
|
$
|
149.7
|
|
|
$
|
181.8
|
|
|
$
|
292.3
|
|
|
$
|
264.5
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
$
|
42.8
|
|
|
$
|
43.8
|
|
|
$
|
77.4
|
|
|
$
|
80.1
|
|
Stock-based
compensation
|
(3.4)
|
|
|
(3.8)
|
|
|
(6.2)
|
|
|
(6.9)
|
|
Other charges related
to non-recurring activities
|
(0.1)
|
|
|
(1.1)
|
|
|
(0.3)
|
|
|
(1.8)
|
|
Research and
development on non-GAAP basis
|
$
|
39.3
|
|
|
$
|
38.9
|
|
|
$
|
70.9
|
|
|
$
|
71.4
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative on GAAP basis
|
$
|
62.7
|
|
|
$
|
35.7
|
|
|
$
|
95.7
|
|
|
$
|
62.3
|
|
Stock-based
compensation (2)
|
(21.1)
|
|
|
(6.6)
|
|
|
(25.8)
|
|
|
(10.1)
|
|
Acquisition related
costs
|
(12.0)
|
|
|
—
|
|
|
(13.1)
|
|
|
—
|
|
Other charges related
to non-recurring activities
|
(0.6)
|
|
|
(0.8)
|
|
|
(1.5)
|
|
|
(2.3)
|
|
Amortization of
acquired intangibles
|
(0.8)
|
|
|
—
|
|
|
(0.8)
|
|
|
—
|
|
Selling, general
and administrative on non-GAAP basis
|
$
|
28.2
|
|
|
$
|
28.3
|
|
|
$
|
54.5
|
|
|
$
|
49.9
|
|
|
|
|
|
|
|
|
|
Income from
operations on GAAP basis
|
$
|
11.5
|
|
|
$
|
90.8
|
|
|
$
|
68.6
|
|
|
$
|
93.5
|
|
Stock-based
compensation (2)
|
29.7
|
|
|
14.8
|
|
|
40.5
|
|
|
24.1
|
|
Acquisition related
costs
|
12.0
|
|
|
—
|
|
|
13.1
|
|
|
—
|
|
Other charges related
to non-recurring activities (1)
|
14.7
|
|
|
7.4
|
|
|
28.3
|
|
|
20.3
|
|
Amortization of
acquired intangibles
|
5.2
|
|
|
0.8
|
|
|
6.0
|
|
|
1.6
|
|
Amortization of fair
value adjustments (3)
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Restructuring and
related charges (2)
|
7.8
|
|
|
0.8
|
|
|
9.1
|
|
|
3.7
|
|
Income from
operations on non-GAAP basis
|
$
|
82.2
|
|
|
$
|
114.6
|
|
|
$
|
166.9
|
|
|
$
|
143.2
|
|
|
|
|
|
|
|
|
|
Interest and other
(expense) income, net on GAAP basis
|
$
|
(4.7)
|
|
|
$
|
(3.2)
|
|
|
$
|
(7.1)
|
|
|
$
|
(6.6)
|
|
Other interest and
(income) expense adjustments (4)
|
2.2
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
Non-cash interest
expense on convertible notes and term loan
|
4.5
|
|
|
4.1
|
|
|
8.8
|
|
|
8.2
|
|
Interest and other
(expense) income, net on non-GAAP basis
|
$
|
2.0
|
|
|
$
|
0.9
|
|
|
$
|
3.7
|
|
|
$
|
1.6
|
|
|
|
|
|
|
|
|
|
Income before
income taxes on GAAP basis
|
$
|
17.7
|
|
|
$
|
95.5
|
|
|
$
|
70.3
|
|
|
$
|
99.0
|
|
Stock-based
compensation (2)
|
29.7
|
|
|
14.8
|
|
|
40.5
|
|
|
24.1
|
|
Acquisition related
costs
|
12.0
|
|
|
—
|
|
|
13.1
|
|
|
—
|
|
Other charges related
to non-recurring activities (1)
|
14.7
|
|
|
7.4
|
|
|
28.3
|
|
|
20.3
|
|
Amortization of
acquired intangibles
|
5.2
|
|
|
0.8
|
|
|
6.0
|
|
|
1.6
|
|
Amortization of fair
value adjustments (3)
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Restructuring and
related charges (2)
|
7.8
|
|
|
0.8
|
|
|
9.1
|
|
|
3.7
|
|
Other interest and
(income) expense adjustments (4)
|
2.2
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
Non-cash interest
expense on convertible notes and term loan
|
4.5
|
|
|
4.1
|
|
|
8.8
|
|
|
8.2
|
|
Unrealized (gain)
loss on derivative liability
|
(10.9)
|
|
|
(7.9)
|
|
|
(8.8)
|
|
|
(12.1)
|
|
Income before
income taxes on non-GAAP basis
|
$
|
84.2
|
|
|
$
|
115.5
|
|
|
$
|
170.6
|
|
|
$
|
144.8
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes on GAAP basis
|
$
|
1.4
|
|
|
$
|
(109.3)
|
|
|
$
|
6.6
|
|
|
$
|
(112.9)
|
|
Income tax
adjustments
|
4.5
|
|
|
117.0
|
|
|
(0.1)
|
|
|
122.1
|
|
Provision for
(benefit from) income taxes on non-GAAP basis
(5)
|
$
|
5.9
|
|
|
$
|
7.7
|
|
|
$
|
6.5
|
|
|
$
|
9.2
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
$
|
16.3
|
|
|
$
|
204.8
|
|
|
$
|
63.7
|
|
|
$
|
211.9
|
|
Stock-based
compensation (2)
|
29.7
|
|
|
14.8
|
|
|
40.5
|
|
|
24.1
|
|
Acquisition related
costs
|
12.0
|
|
|
—
|
|
|
13.1
|
|
|
—
|
|
Other charges related
to non-recurring activities (1)
|
14.7
|
|
|
7.4
|
|
|
28.3
|
|
|
20.3
|
|
Amortization of
acquired intangibles
|
5.2
|
|
|
0.8
|
|
|
6.0
|
|
|
1.6
|
|
Amortization of fair
value adjustments (3)
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
Restructuring and
related charges (2)
|
7.8
|
|
|
0.8
|
|
|
9.1
|
|
|
3.7
|
|
Other interest and
(income) expense adjustments (4)
|
2.2
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
Non-cash interest
expense on convertible notes and term loan
|
4.5
|
|
|
4.1
|
|
|
8.8
|
|
|
8.2
|
|
Unrealized (gain)
loss on derivative liability
|
(10.9)
|
|
|
(7.9)
|
|
|
(8.8)
|
|
|
(12.1)
|
|
Income tax
adjustments
|
(4.5)
|
|
|
(117.0)
|
|
|
0.1
|
|
|
(122.1)
|
|
Net income on
non-GAAP basis
|
$
|
78.3
|
|
|
$
|
107.8
|
|
|
$
|
164.1
|
|
|
$
|
135.6
|
|
|
|
|
|
|
|
|
|
Net income per
share on non-GAAP basis
|
$
|
1.15
|
|
|
$
|
1.67
|
|
|
$
|
2.46
|
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - diluted on GAAP and non-GAAP
basis
|
67.8
|
|
|
64.6
|
|
|
66.6
|
|
|
64.5
|
|
|
(1) Other charges
related to non-recurring activities for the three and six months
ended December 29, 2018, primarily costs of transferring product
lines to Thailand of $14.5 million and $27.2 million, respectively.
Other charges related to non-recurring activities for the three and
six months ended December 30, 2017, primarily include set-up costs
for our facility in Thailand of $3.1 million, which we incurred
during our second quarter of fiscal 2018, as well as inventory
write-downs due to canceled programs not allocated to the segments
of $7.0 million.
|
|
(2) In connection
with the acquisition of Oclaro, we recorded $20.9 million in
restructuring and stock-based compensation expense in our condensed
consolidated statements of operations, primarily attributable to
severance and employee related benefits associated with Oclaro's
executive severance and retention agreements.
|
|
(3) In connection
with the acquisition of Oclaro, we recorded a fair value
adjustment of $60.3 million to inventory, resulting in $1.3 million
of amortization expense of the fair value adjustment during the
three and six months ended December 29, 2018.
|
|
(4) For the three and
six months ended December 29, 2018, interest expense includes a
one-time charge of $2.3 million and $2.7 million, respectively,
related to a ticking fee to Deutsche bank.
|
View original
content:http://www.prnewswire.com/news-releases/lumentum-announces-fiscal-second-quarter-2019-results-300789793.html
SOURCE Lumentum