SAN JOSE, Calif., May 12,
2021 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum" or the
"Company") today reported results for its fiscal third quarter
ended April 3, 2021, which was a 14-week period.
Net revenue for the fiscal third quarter of 2021, which was
reduced by $14.8 million that was
deferred, was $419.5 million, with
GAAP net income of $225.5 million, or
$2.85 per diluted share. Net revenue
for the fiscal second quarter of 2021 was $478.8 million, with GAAP net income of
$83.2 million, or $1.06 per diluted share. Net revenue for the
fiscal third quarter of 2020 was $402.8
million, with GAAP net income of $43.4 million, or $0.56 per diluted share.
Non-GAAP net income for the fiscal third quarter of 2021 was
$110.6 million, or $1.40 per diluted share. Non-GAAP net income for
the fiscal second quarter of 2021 was $155.7
million, or $1.99 per diluted
share. Non-GAAP net income for the fiscal third quarter of 2020 was
$98.0 million, or $1.26 per diluted share.
The Company held $2,054.6 million
in total cash, cash equivalents, and short-term investments at the
end of the fiscal third quarter of 2021, up $354.3 million compared to the end of the fiscal
second quarter of 2021.
"The strong year on year margin improvements in our third
quarter results highlight a product portfolio increasingly rich in
new and differentiated products that are aligned with multi-year
favorable market trends and the impact of continuous improvement in
our operations," said Alan Lowe,
President and CEO. "Out of an abundance of caution, we deferred
$14.8 million of revenue due to
delays in 5G deployments in China,
which decreased our reported revenue accordingly. Despite the lower
revenue, due to the strength of our financial model we achieved
approximately 50% non-GAAP gross margin, and strong non-GAAP
operating margin and EPS, both of which were within our guidance
ranges. Between our product and technology portfolio, our
design-wins with market leading customers, and the positive changes
in our business model and the industry over the past several years,
I believe the future continues to be very bright at Lumentum."
"Based on confidence in our long-term outlook, and our cash
balance having increased by more than $600
million over the past 12 months through strong cash
generation, the Lumentum Board of Directors has approved a share
buyback program of up to $700 million
over the next two years," said Wajid
Ali, Executive Vice President and CFO. "Despite short-term
headwinds in our industry, our guidance is consistent with our
historical seasonality when normalizing for the revenue we deferred
and the recent 14-week quarter."
Financial Overview
– Fiscal Third Quarter Ended April 3, 2021
|
|
|
GAAP Results ($ in
millions)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Change
|
|
FY
2021
|
|
FY
2021
|
|
FY
2020
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$
|
419.5
|
|
$
|
478.8
|
|
$
|
402.8
|
|
(12.4)%
|
|
4.1%
|
Gross
margin
|
44.1%
|
|
48.0%
|
|
39.2%
|
|
(390)bps
|
|
490bps
|
Operating
margin
|
63.6%
|
|
24.1%
|
|
10.6%
|
|
3,950bps
|
|
5,300bps
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results
($ in millions)
|
|
Q3
|
|
Q2
|
|
Q3
|
|
Change
|
|
FY
2021
|
|
FY
2021
|
|
FY
2020
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$
|
419.5
|
|
$
|
478.8
|
|
$
|
402.8
|
|
(12.4)%
|
|
4.1%
|
Gross
margin
|
49.9%
|
|
53.4%
|
|
45.5%
|
|
(350)bps
|
|
440bps
|
Operating
margin
|
27.9%
|
|
35.5%
|
|
25.0%
|
|
(760)bps
|
|
290bps
|
|
|
Net Revenue by
Segment ($ in millions)
|
|
Q3
|
|
%
of
|
|
Q2
|
|
Q3
|
|
Change
|
|
FY
2021
|
|
Net
Revenue
|
|
FY
2021
|
|
FY
2020
|
|
Q/Q
|
|
Y/Y
|
Optical
Communications
|
$
|
387.9
|
|
92.5%
|
|
$
|
449.1
|
|
$
|
359.3
|
|
(13.6)%
|
|
8.0%
|
Lasers
|
31.6
|
|
7.5%
|
|
29.7
|
|
43.5
|
|
6.4%
|
|
(27.4)%
|
Total
|
$
|
419.5
|
|
100.0%
|
|
$
|
478.8
|
|
$
|
402.8
|
|
(12.4)%
|
|
4.1%
|
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
Lumentum expects the following for the fiscal fourth
quarter 2021:
- Net revenue in the range of $360
million to $400
million
- Non-GAAP operating margin of 22.5% to 25.0%
- Non-GAAP diluted earnings per share of $0.92 to $1.14
We have not provided reconciliations from GAAP to non-GAAP
measures for our outlook. A large portion of non-GAAP adjustments,
such as restructuring charges, stock-based compensation, non-cash
income tax expense and credits, integration related costs,
inventory write down due to plans to exit certain product lines 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.
Conference Call
Lumentum will host a conference call today, May 12, 2021,
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 May 19,
2021, at 11:59 pm ET. To
listen to the live conference call, dial (844) 802-2439 or (412)
902-4275 and reference the passcode 10155696. To access the replay,
dial (877) 344-7529 or (412) 317-0088 and reference the passcode
10155696. 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. Lumentum has used, and intends to continue
to use, its Investor Relations website as means of disclosing
material nonpublic information and for complying with its
disclosure obligations under Regulation FD. 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
optical components and subsystems are part of virtually every type
of telecom, enterprise, and data center network. Lumentum
lasers enable advanced manufacturing techniques and diverse
applications including next-generation 3D sensing
capabilities. Lumentum is headquartered in San Jose, 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 include
statements regarding our expectations for our markets, any
anticipation or guidance as to demand for our products and
technology, and our guidance with respect to future net revenue,
earnings per share, and operating margins. 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) the COVID-19 pandemic and related impacts,
which may continue to adversely impact our business, financial
performance and results of operations; (b) quarter-over-quarter
product mix fluctuations which can materially impact profitability
measures due to the broad gross margin ranges across our portfolio;
(c) continued decline of average selling prices across our
businesses; (d) effects of seasonality; (e) the ability of our
suppliers and contract manufacturers to meet production and
delivery requirements for our forecasted demand; (f) inherent
uncertainty related to global markets, including the impact of the
COVID-19 pandemic, changes in the political or economic
environment, including trade and export restrictions and the
imposition of tariffs or other duties, and the effect of such
markets on demand for our products; (g) changes in customer demand;
(h) our ability to attract and retain new customers, particularly
in the 3D sensing market; and (i) the risk that Lumentum's
financing or operating strategies will not be successful. 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 April 3, 2021 to be filed
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.
Contact Information
Investors: Jim Fanucchi,
408-404-5400; investor.relations@lumentum.com
Media: Sean Ogarrio, 408-546-5405;
media@lumentum.com
Category: Financial
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
|
|
Nine Months
Ended
|
|
April 3,
2021
|
|
March 28,
2020
|
|
April 3,
2021
|
|
March 28,
2020
|
Net
revenue
|
$
|
419.5
|
|
|
$
|
402.8
|
|
|
$
|
1,350.7
|
|
|
$
|
1,310.5
|
|
Cost of
sales
|
218.7
|
|
|
231.2
|
|
|
684.6
|
|
|
757.2
|
|
Amortization of
acquired developed intangibles
|
15.8
|
|
|
13.9
|
|
|
45.8
|
|
|
38.8
|
|
Gross
profit
|
185.0
|
|
|
157.7
|
|
|
620.3
|
|
|
514.5
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
57.2
|
|
|
48.7
|
|
|
160.4
|
|
|
149.6
|
|
Selling, general and
administrative
|
65.5
|
|
|
61.3
|
|
|
183.1
|
|
|
180.4
|
|
Restructuring and related
charges
|
2.9
|
|
|
2.7
|
|
|
3.1
|
|
|
4.9
|
|
Merger termination fee and
related costs, net
|
(207.5)
|
|
|
—
|
|
|
(207.5)
|
|
|
—
|
|
Impairment charges
|
—
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
Total operating
expenses (income)
|
(81.9)
|
|
|
115.2
|
|
|
139.1
|
|
|
337.4
|
|
Income from
operations
|
266.9
|
|
|
42.5
|
|
|
481.2
|
|
|
177.1
|
|
Interest
expense
|
(16.4)
|
|
|
(15.6)
|
|
|
(48.7)
|
|
|
(45.3)
|
|
Other income
(expense), net
|
2.4
|
|
|
21.7
|
|
|
2.1
|
|
|
27.9
|
|
Income before income
taxes
|
252.9
|
|
|
48.6
|
|
|
434.6
|
|
|
159.7
|
|
Provision for income
taxes
|
27.4
|
|
|
5.2
|
|
|
58.8
|
|
|
19.6
|
|
Net income
|
$
|
225.5
|
|
|
$
|
43.4
|
|
|
$
|
375.8
|
|
|
$
|
140.1
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
2.97
|
|
|
$
|
0.58
|
|
|
$
|
4.97
|
|
|
$
|
1.84
|
|
Diluted
|
$
|
2.85
|
|
|
$
|
0.56
|
|
|
$
|
4.78
|
|
|
$
|
1.80
|
|
|
|
|
|
|
|
|
|
Shares used to
compute net income per share:
|
|
|
|
|
|
|
|
Basic
|
75.8
|
|
|
74.8
|
|
|
75.6
|
|
|
76.2
|
|
Diluted
|
79.2
|
|
|
77.5
|
|
|
78.6
|
|
|
77.7
|
|
LUMENTUM HOLDINGS
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in millions,
except per share data)
(unaudited)
|
|
|
April 3,
2021
|
|
June 27,
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
687.7
|
|
|
$
|
298.0
|
|
Short-term
investments
|
1,366.9
|
|
|
1,255.8
|
|
Accounts receivable,
net
|
224.8
|
|
|
233.5
|
|
Inventories
|
210.7
|
|
|
188.9
|
|
Prepayments and other
current assets
|
79.7
|
|
|
73.8
|
|
Total current
assets
|
2,569.8
|
|
|
2,050.0
|
|
Property, plant and
equipment, net
|
378.0
|
|
|
393.0
|
|
Operating lease
right-of-use assets, net
|
70.3
|
|
|
78.7
|
|
Goodwill
|
368.9
|
|
|
368.9
|
|
Other intangible
assets, net
|
263.2
|
|
|
316.8
|
|
Deferred income
taxes
|
89.9
|
|
|
81.2
|
|
Other non-current
assets
|
5.8
|
|
|
4.0
|
|
Total
assets
|
$
|
3,745.9
|
|
|
$
|
3,292.6
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
104.7
|
|
|
$
|
150.8
|
|
Accrued payroll and
related expenses
|
45.9
|
|
|
53.4
|
|
Accrued
expenses
|
39.5
|
|
|
23.7
|
|
Convertible notes,
current
|
385.3
|
|
|
—
|
|
Operating lease
liabilities, current
|
11.8
|
|
|
10.8
|
|
Other current
liabilities
|
87.0
|
|
|
44.3
|
|
Total current
liabilities
|
674.2
|
|
|
283.0
|
|
Convertible notes,
non-current
|
778.9
|
|
|
1,120.3
|
|
Operating lease
liabilities, non-current
|
50.5
|
|
|
57.6
|
|
Deferred tax
liability
|
31.6
|
|
|
46.5
|
|
Other non-current
liabilities
|
45.7
|
|
|
36.0
|
|
Total
liabilities
|
1,580.9
|
|
|
1,543.4
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 990 authorized shares, 75.8 and 75.1
shares issued and outstanding as of April 3, 2021 and June 27,
2020, respectively
|
0.1
|
|
|
0.1
|
|
Additional paid-in
capital
|
1,718.8
|
|
|
1,676.6
|
|
Retained
earnings
|
440.4
|
|
|
64.6
|
|
Accumulated other
comprehensive income
|
5.7
|
|
|
7.9
|
|
Total stockholders'
equity
|
2,165.0
|
|
|
1,749.2
|
|
Total liabilities and
stockholders' equity
|
$
|
3,745.9
|
|
|
$
|
3,292.6
|
|
Use of Non-GAAP Financial Measures
In this press release, Lumentum provides investors with gross
margin, gross profit, research and development expense, selling,
general and administrative expense, operating margin, operating
income, interest and other income (expense), net, income before
income taxes, provision for taxes, net income, and net income per
share on a non-GAAP basis as well as the non-GAAP measures of
EBITDA and Adjusted EBITDA. Lumentum believes this non-GAAP
financial information provides additional insight into the
Company's on-going business operations and results, as well as cash
generation, 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. In addition,
the Company believes that providing certain of these measures allow
investors to better understand the Company's cash flows and,
importantly, to evaluate the efficacy of the methodology and
information used by management to evaluate and measure such cash
flows. 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 before income taxes, non-GAAP net income, and non-GAAP net
income per share and Adjusted EBITDA exclude (i) stock-based
compensation, (ii) inventory write-downs and fixed asset impairment
due to cancelled programs, plans to exit certain lines of business
and other costs and contingencies unrelated to current and future
operations, (iii) acquisition and disposition related costs, (iv)
integration related costs, (v) amortization of acquired
intangibles, (vi) amortization of inventory fair value adjustments,
(vii) restructuring and related charges, (viii) non-cash interest
expense, (ix) foreign exchange (gains) losses, net, (x)
transferring product lines to Thailand, (xi) excess and obsolete inventory
charges driven by U.S. trade restrictions and the related decline
in demand from Huawei, (xii) non-cash income tax impacts and the
incremental cash income tax attributable to the Coherent
termination fee, net of transaction costs, and (xiii) the
termination fee we received in connection with the termination of
our proposed merger agreement with Coherent, net of acquisition
related charges. 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
|
|
|
April 3,
2021
|
|
December 26,
2020
|
|
March 28,
2020
|
|
|
April 3,
2021
|
|
March 28,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit on
GAAP basis
|
$
|
185.0
|
|
|
$
|
229.6
|
|
|
$
|
157.7
|
|
|
|
$
|
620.3
|
|
|
$
|
514.5
|
|
|
Stock-based
compensation
|
5.3
|
|
|
4.8
|
|
|
4.3
|
|
|
|
13.8
|
|
|
12.6
|
|
|
Inventory and fixed
asset write down due to product line exits (1)
|
—
|
|
|
0.1
|
|
|
2.3
|
|
|
|
0.4
|
|
|
6.0
|
|
|
Integration related
costs
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
|
—
|
|
|
3.1
|
|
|
Amortization of
acquired intangibles
|
15.8
|
|
|
15.0
|
|
|
13.9
|
|
|
|
45.8
|
|
|
38.8
|
|
|
Amortization of
inventory fair value adjustments
|
—
|
|
|
—
|
|
|
1.5
|
|
|
|
—
|
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other charges
(2)
|
3.1
|
|
|
6.4
|
|
|
4.0
|
|
|
|
20.0
|
|
|
25.5
|
|
|
Gross profit on
non-GAAP basis
|
$
|
209.2
|
|
|
$
|
255.9
|
|
|
$
|
183.4
|
|
|
|
$
|
700.3
|
|
|
$
|
606.3
|
|
|
Gross margin on
non-GAAP basis
|
49.9
|
%
|
|
53.4
|
%
|
|
45.5
|
%
|
|
|
51.8
|
%
|
|
46.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
$
|
57.2
|
|
|
$
|
52.8
|
|
|
$
|
48.7
|
|
|
|
$
|
160.4
|
|
|
$
|
149.6
|
|
|
Stock-based
compensation
|
(5.3)
|
|
|
(5.1)
|
|
|
(4.2)
|
|
|
|
(14.8)
|
|
|
(12.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
charges
|
(0.6)
|
|
|
0.1
|
|
|
(0.2)
|
|
|
|
(0.6)
|
|
|
(0.1)
|
|
|
Research and
development on non-GAAP basis
|
$
|
51.3
|
|
|
$
|
47.8
|
|
|
$
|
44.3
|
|
|
|
$
|
145.0
|
|
|
$
|
137.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative on GAAP basis
|
$
|
65.5
|
|
|
$
|
61.3
|
|
|
$
|
61.3
|
|
|
|
$
|
183.1
|
|
|
$
|
180.4
|
|
|
Stock-based
compensation
|
(14.5)
|
|
|
(14.2)
|
|
|
(10.7)
|
|
|
|
(40.1)
|
|
|
(31.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration related
costs
|
(0.2)
|
|
|
(0.2)
|
|
|
(5.0)
|
|
|
|
(0.7)
|
|
|
(11.1)
|
|
|
Amortization of
acquired intangibles
|
(6.2)
|
|
|
(5.9)
|
|
|
(6.1)
|
|
|
|
(17.8)
|
|
|
(18.6)
|
|
|
Other
charges
|
(3.8)
|
|
|
(2.8)
|
|
|
(1.1)
|
|
|
|
(8.7)
|
|
|
(5.8)
|
|
|
Selling, general
and administrative on non-GAAP basis
|
$
|
40.8
|
|
|
$
|
38.2
|
|
|
$
|
38.4
|
|
|
|
$
|
115.8
|
|
|
$
|
113.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations on GAAP basis
|
$
|
266.9
|
|
|
$
|
115.3
|
|
|
$
|
42.5
|
|
|
|
$
|
481.2
|
|
|
$
|
177.1
|
|
|
Stock-based
compensation
|
25.1
|
|
|
24.1
|
|
|
19.2
|
|
|
|
68.7
|
|
|
56.1
|
|
|
Inventory and fixed
asset write down due to product line exits (1)
|
—
|
|
|
0.1
|
|
|
2.3
|
|
|
|
0.4
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration related
costs
|
0.2
|
|
|
0.2
|
|
|
4.7
|
|
|
|
0.7
|
|
|
14.2
|
|
|
Amortization of
acquired intangibles
|
22.0
|
|
|
20.9
|
|
|
20.0
|
|
|
|
63.6
|
|
|
57.4
|
|
|
Amortization of
inventory fair value adjustments
|
—
|
|
|
—
|
|
|
1.5
|
|
|
|
—
|
|
|
5.8
|
|
|
Restructuring and
related charges
|
2.9
|
|
|
0.2
|
|
|
2.7
|
|
|
|
3.1
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger termination
fee and related costs, net (3)
|
(207.5)
|
|
|
—
|
|
|
—
|
|
|
|
(207.5)
|
|
|
—
|
|
|
Impairment charges
(4)
|
—
|
|
|
—
|
|
|
2.5
|
|
|
|
—
|
|
|
2.5
|
|
|
Other
charges
|
7.5
|
|
|
9.1
|
|
|
5.3
|
|
|
|
29.3
|
|
|
31.4
|
|
|
Income from
operations on non-GAAP basis
|
$
|
117.1
|
|
|
$
|
169.9
|
|
|
$
|
100.7
|
|
|
|
$
|
439.5
|
|
|
$
|
355.4
|
|
|
Operating margin on
non-GAAP basis
|
27.9
|
%
|
|
35.5
|
%
|
|
25.0
|
%
|
|
|
32.5
|
%
|
|
27.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense), net on GAAP basis
|
$
|
(14.0)
|
|
|
$
|
(17.2)
|
|
|
$
|
6.1
|
|
|
|
$
|
(46.6)
|
|
|
$
|
(17.4)
|
|
|
|
Other (income)
expense adjustments
|
—
|
|
|
—
|
|
|
(2.0)
|
|
|
|
—
|
|
|
(2.0)
|
|
|
Gain on sale of
product lines
|
—
|
|
|
(0.1)
|
|
|
(13.8)
|
|
|
|
(0.5)
|
|
|
(13.8)
|
|
|
Foreign exchange
(gains) losses, net
|
(1.3)
|
|
|
2.8
|
|
|
(0.7)
|
|
|
|
3.8
|
|
|
0.3
|
|
|
Non-cash interest
expense on convertible notes and term loan
|
14.8
|
|
|
14.7
|
|
|
14.0
|
|
|
|
43.9
|
|
|
33.3
|
|
|
Interest and other
income (expense), net on non-GAAP basis
|
$
|
(0.5)
|
|
|
$
|
0.2
|
|
|
$
|
3.6
|
|
|
|
$
|
0.6
|
|
|
$
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes on GAAP basis
|
$
|
252.9
|
|
|
$
|
98.1
|
|
|
$
|
48.6
|
|
|
|
$
|
434.6
|
|
|
$
|
159.7
|
|
|
Stock-based
compensation
|
25.1
|
|
|
24.1
|
|
|
19.2
|
|
|
|
68.7
|
|
|
56.1
|
|
|
Inventory and fixed
asset write down due to product line exits (1)
|
—
|
|
|
0.1
|
|
|
2.3
|
|
|
|
0.4
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration related
costs
|
0.2
|
|
|
0.2
|
|
|
4.7
|
|
|
|
0.7
|
|
|
14.2
|
|
|
Amortization of
acquired intangibles
|
22.0
|
|
|
20.9
|
|
|
20.0
|
|
|
|
63.6
|
|
|
57.4
|
|
|
Amortization of
inventory fair value adjustments
|
—
|
|
|
—
|
|
|
1.5
|
|
|
|
—
|
|
|
5.8
|
|
|
Restructuring and
related charges
|
2.9
|
|
|
0.2
|
|
|
2.7
|
|
|
|
3.1
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger termination
fee and related costs, net (3)
|
(207.5)
|
|
|
—
|
|
|
—
|
|
|
|
(207.5)
|
|
|
—
|
|
|
Impairment charges
(4)
|
—
|
|
|
—
|
|
|
2.5
|
|
|
|
—
|
|
|
2.5
|
|
|
Other (income)
expense adjustments
|
—
|
|
|
—
|
|
|
(2.0)
|
|
|
|
—
|
|
|
(2.0)
|
|
|
Gain on sale of
product lines
|
—
|
|
|
(0.1)
|
|
|
(13.8)
|
|
|
|
(0.5)
|
|
|
(13.8)
|
|
|
Foreign exchange
(gains) losses, net
|
(1.3)
|
|
|
2.8
|
|
|
(0.7)
|
|
|
|
3.8
|
|
|
0.3
|
|
|
Non-cash interest
expense on convertible notes and term loan
|
14.8
|
|
|
14.7
|
|
|
14.0
|
|
|
|
43.9
|
|
|
33.3
|
|
|
Other
charges
|
7.5
|
|
|
9.1
|
|
|
5.3
|
|
|
|
29.3
|
|
|
31.4
|
|
|
Income before
income taxes on non-GAAP basis
|
$
|
116.6
|
|
|
$
|
170.1
|
|
|
$
|
104.3
|
|
|
|
$
|
440.1
|
|
|
$
|
355.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes on GAAP basis
|
$
|
27.4
|
|
|
$
|
14.9
|
|
|
$
|
5.2
|
|
|
|
$
|
58.8
|
|
|
$
|
19.6
|
|
|
Income tax
adjustments
|
(21.4)
|
|
|
(0.5)
|
|
|
1.1
|
|
|
|
(24.2)
|
|
|
7.4
|
|
|
Provision for
income taxes on non-GAAP basis
|
$
|
6.0
|
|
|
$
|
14.4
|
|
|
$
|
6.3
|
|
|
|
$
|
34.6
|
|
|
$
|
27.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
$
|
225.5
|
|
|
$
|
83.2
|
|
|
$
|
43.4
|
|
|
|
$
|
375.8
|
|
|
$
|
140.1
|
|
|
Stock-based
compensation
|
25.1
|
|
|
24.1
|
|
|
19.2
|
|
|
|
68.7
|
|
|
56.1
|
|
|
Inventory and fixed
asset write down due to product line exits (1)
|
—
|
|
|
0.1
|
|
|
2.3
|
|
|
|
0.4
|
|
|
6.0
|
|
|
Acquisition related
costs
|
—
|
|
|
1.1
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Integration related
costs
|
0.2
|
|
|
0.2
|
|
|
4.7
|
|
|
|
0.7
|
|
|
14.2
|
|
|
Amortization of
acquired intangibles
|
22.0
|
|
|
20.9
|
|
|
20.0
|
|
|
|
63.6
|
|
|
57.4
|
|
|
Amortization of
inventory fair value adjustments
|
—
|
|
|
—
|
|
|
1.5
|
|
|
|
—
|
|
|
5.8
|
|
|
Restructuring and
related charges
|
2.9
|
|
|
0.2
|
|
|
2.7
|
|
|
|
3.1
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger termination
fee and related costs, net (3)
|
(207.5)
|
|
|
—
|
|
|
—
|
|
|
|
(207.5)
|
|
|
—
|
|
|
Impairment charges
(4)
|
—
|
|
|
—
|
|
|
2.5
|
|
|
|
—
|
|
|
2.5
|
|
|
Other (income)
expense adjustments
|
—
|
|
|
—
|
|
|
(2.0)
|
|
|
|
—
|
|
|
(2.0)
|
|
|
Gain on sale of
product lines
|
—
|
|
|
(0.1)
|
|
|
(13.8)
|
|
|
|
(0.5)
|
|
|
(13.8)
|
|
|
Foreign exchange
(gains) losses, net
|
(1.3)
|
|
|
2.8
|
|
|
(0.7)
|
|
|
|
3.8
|
|
|
0.3
|
|
|
Non-cash interest
expense on convertible notes and term loan
|
14.8
|
|
|
14.7
|
|
|
14.0
|
|
|
|
43.9
|
|
|
33.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
adjustments
|
21.4
|
|
|
0.5
|
|
|
(1.1)
|
|
|
|
24.2
|
|
|
(7.4)
|
|
|
Other
charges
|
7.5
|
|
|
8.0
|
|
|
5.3
|
|
|
|
29.3
|
|
|
31.4
|
|
|
|
Net income on
non-GAAP basis
|
$
|
110.6
|
|
|
$
|
155.7
|
|
|
$
|
98.0
|
|
|
|
$
|
405.5
|
|
|
$
|
328.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share on non-GAAP basis
|
$
|
1.40
|
|
|
$
|
1.99
|
|
|
$
|
1.26
|
|
|
|
$
|
5.16
|
|
|
$
|
4.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation -
diluted on GAAP and non-GAAP basis
|
79.2
|
|
|
78.4
|
|
|
77.5
|
|
|
|
78.6
|
|
|
77.7
|
|
|
|
|
(1) For the three
months ended December 26, 2020 and March 28, 2020, we
recorded inventory and fixed asset write down charges of $0.1
million and $2.3 million, respectively, related to the decision to
exit the Datacom module and Lithium Niobate product lines. For the
nine months ended April 3, 2021 and March 28, 2020, we recorded
inventory and fixed asset write down charges of $0.4 million and
$6.0 million, respectively, related to the decision to exit the
Datacom module and Lithium Niobate product lines.
|
|
(2) Other charges
excluded from gross profit on non-GAAP basis for the three and nine
months ended April 3, 2021 include costs of transferring product
lines to new production facilities, including Thailand of $1.4
million and $6.5 million, respectively. We also incurred excess and
obsolete inventory charges driven by U.S. trade restrictions and
the related decline in demand from Huawei of $1.0 million and
$7.7 million during the three and nine months ended April 3,
2021, respectively. Our excess and obsolete inventory charges
related to Huawei were offset by $2.1 million of sale of inventory
previously written down during the three and nine months ended
April 3, 2021. During the nine months ended April 3, 2021, there
was also a $5.0 million impairment charge associated with
excess capacity related to our Fiber laser business.
|
|
Other charges
excluded from gross profit on non-GAAP basis for the three months
ended December 26, 2020 include costs of transferring product lines
to new production facilities, including Thailand of $0.4 million,
excess and obsolete inventory charges driven by U.S. trade
restrictions and the related decline in demand from Huawei of $0.8
million, and impairment charges associated with excess capacity
related to our Fiber laser business of $4.6 million.
|
|
(3) For each of the
three and nine months ended April 3, 2021, we recorded $217.6
million gain related to the receipt of a termination fee from
Coherent in March 2021 as a result of the termination of our merger
agreement. This gain was offset by $10.1 million of Coherent
acquisition related charges.
|
|
(4) For each of the
three and nine months ended March 28, 2020, we recorded impairment
charges of $2.5 million of property, plant and equipment related to
the decision to exit the Datacom module product line.
|
|
LUMENTUM HOLDINGS
INC.
RECONCILIATION OF
GAAP NET INCOME TO ADJUSTED EBITDA (in millions, except
per share data)
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
April 3,
2021
|
|
December 26,
2020
|
|
March 28,
2020
|
|
April 3,
2021
|
|
March 28,
2020
|
GAAP Net
income
|
$
|
225.5
|
|
$
|
83.2
|
|
$
|
43.4
|
|
$
|
375.8
|
|
$
|
140.1
|
Interest and other
expense (income), net
|
14.0
|
|
17.2
|
|
(6.1)
|
|
46.6
|
|
17.4
|
Provision for income
taxes
|
27.4
|
|
14.9
|
|
5.2
|
|
58.8
|
|
19.6
|
Depreciation
|
22.8
|
|
23.8
|
|
27.5
|
|
70.4
|
|
87.8
|
Amortization of
acquired intangibles
|
22.0
|
|
20.9
|
|
20.0
|
|
63.6
|
|
57.4
|
EBITDA
|
311.7
|
|
160.0
|
|
90.0
|
|
615.2
|
|
322.3
|
Amortization of
inventory fair value adjustments
|
—
|
|
—
|
|
1.5
|
|
—
|
|
5.8
|
Restructuring and
related charges
|
2.9
|
|
0.2
|
|
2.7
|
|
3.1
|
|
4.9
|
Stock-based
compensation
|
25.1
|
|
24.1
|
|
19.2
|
|
68.7
|
|
56.1
|
|
|
|
|
|
|
|
|
|
|
Inventory and fixed
asset write down due to product line exits
|
—
|
|
0.1
|
|
2.3
|
|
0.4
|
|
6.0
|
Integration related
costs
|
0.2
|
|
0.2
|
|
4.7
|
|
0.7
|
|
14.2
|
Merger termination
fee and related costs, net
|
(207.5)
|
|
—
|
|
—
|
|
(207.5)
|
|
—
|
Impairment
charges
|
—
|
|
—
|
|
2.5
|
|
—
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
Other
charges
|
7.5
|
|
9.1
|
|
5.3
|
|
29.3
|
|
31.4
|
Adjusted
EBITDA
|
$
|
139.9
|
|
$
|
193.7
|
|
$
|
128.2
|
|
$
|
509.9
|
|
$
|
443.2
|
View original
content:http://www.prnewswire.com/news-releases/lumentum-announces-fiscal-third-quarter-2021-financial-results-301289340.html
SOURCE Lumentum