- Net revenue of $506.0
million
- GAAP gross margin of 32.8%; Non-GAAP gross margin of
44.9%
- GAAP operating loss of 4.3%; Non-GAAP operating margin of
23.1%
- GAAP diluted net loss per share of $0.46; Non-GAAP diluted net income per share of
$1.52
SAN
JOSE, Calif., Feb. 9, 2023
/PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum" or the
"Company") today reported results for its fiscal second quarter
ended December 31, 2022.
"Our second quarter financial and operational performance was
very strong, led by robust demand from our Telecom and Commercial
Lasers customers. Non-GAAP operating margin and Non-GAAP earnings
per share were both above the high end of our guidance range with
revenue above the midpoint," said Alan
Lowe, President and CEO. "These results reflect structural
improvement in the long-term operating costs of the company, as we
continue to execute on our synergy plan."
Fiscal Second Quarter Highlights:
Net revenue for the fiscal second quarter of 2023 was
$506.0 million, with GAAP
net loss of $31.7 million, or
$0.46 loss per diluted share. Net
revenue for the fiscal first quarter of 2023 was $506.8 million, with GAAP net loss of
$0.4 million, or $0.01 loss per diluted share. Net revenue for the
fiscal second quarter of 2022 was $446.7 million, with GAAP net income of
$56.7 million, or $0.75 per diluted share.
Non-GAAP net income for the fiscal second quarter of 2023 was
$104.1 million, or $1.52 per diluted share. Non-GAAP net income for
fiscal first quarter of 2023 was $119.2 million, or $1.69 per diluted share. Non-GAAP net
income for the fiscal second quarter of 2022 was $120.2 million, or $1.60 per diluted share.
The Company held $1,680.4 million
in total cash, cash equivalents, and short-term investments at the
end of the fiscal second quarter of 2023, up $55.5 million from the end of the fiscal
first quarter of 2023.
Financial Overview – Fiscal Second Quarter Ended
December 31, 2022
|
GAAP Results ($ in
millions)
|
|
Q2
|
|
Q1
|
|
Q2
|
|
Change
|
|
FY
2023
|
|
FY
2023
|
|
FY
2022
|
|
Q/Q
|
|
Y/Y
|
Net revenue
|
$506.0
|
|
$506.8
|
|
$446.7
|
|
(0.2) %
|
|
13.3 %
|
Gross margin
|
32.8 %
|
|
39.7 %
|
|
46.5 %
|
|
(690)bps
|
|
(1,370)bps
|
Operating
margin
|
(4.3) %
|
|
2.7 %
|
|
19.1 %
|
|
(700)bps
|
|
(2,340)bps
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results ($
in millions)
|
|
Q2
|
|
Q1
|
|
Q2
|
|
Change
|
|
FY
2023
|
|
FY
2023
|
|
FY
2022
|
|
Q/Q
|
|
Y/Y
|
Net revenue
|
$506.0
|
|
$506.8
|
|
$446.7
|
|
(0.2) %
|
|
13.3 %
|
Gross margin
|
44.9 %
|
|
48.2 %
|
|
51.0 %
|
|
(330)bps
|
|
(610)bps
|
Operating
margin
|
23.1 %
|
|
27.1 %
|
|
31.7 %
|
|
(400)bps
|
|
(860)bps
|
|
|
Net Revenue by
Segment ($ in millions)
|
|
Q2
|
|
% of
|
|
Q1
|
|
Q2
|
|
Change
|
|
FY
2023
|
|
Net
Revenue
|
|
FY
2023
|
|
FY
2022
|
|
Q/Q
|
|
Y/Y
|
Optical
Communications
|
$
448.8
|
|
88.7 %
|
|
$
453.4
|
|
$
397.4
|
|
(1.0) %
|
|
12.9 %
|
Lasers
|
57.2
|
|
11.3 %
|
|
53.4
|
|
49.3
|
|
7.1 %
|
|
16.0 %
|
Total
|
$
506.0
|
|
100.0 %
|
|
$
506.8
|
|
$
446.7
|
|
(0.2) %
|
|
13.3 %
|
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 third
quarter 2023:
- Net revenue in the range of $430
million to $460
million
- Non-GAAP operating margin of 17% to 19%
- Non-GAAP diluted earnings per share of $1.00 to $1.15
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-GAAP
income tax reconciling adjustments, acquisition related costs, 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.
Related Announcement and Conference Call
Lumentum will host a conference call today, February 9, 2023, at 5:30 am PT / 8:30 am
ET to discuss its fiscal second quarter results. A
live webcast of the call and the replay will be available in the
Investors section of the Lumentum website at
http://investor.lumentum.com through February 16, 2023, at 9:00
pm PT / 12:00 am ET. To listen
to the live conference call, dial (844) 200-6205 or (929) 526-1599
and reference the passcode 440258. To access the replay, dial (866)
813-9403 or (929) 458-6194 and reference the passcode 369158.
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 imaging and sensing
capabilities. Lumentum is headquartered in San Jose, California with R&D,
manufacturing, and sales offices worldwide. For more
information, visit www.lumentum.com and follow Lumentum on
LinkedIn, Twitter, Facebook, Instagram and YouTube.
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, customers
and industry, any anticipation or guidance as to demand for our
products and technology, statements regarding our expected market
share, our plans and expectations regarding the integration of our
recent acquisitions of NeoPhotonics and IPG's telecom transmission
product lines, including the benefits for our customers and our
business, trends in component supply, our expectations for revenue
growth rates, and our guidance with respect to future net revenue,
earnings per share, and operating margins, and related assumptions.
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) decline of average selling prices across
our businesses or increase in costs, either of which will also
decrease our margins; (d) effects of seasonality; (e) the ability
of our suppliers and contract manufacturers to meet production,
quality, and delivery requirements for our forecasted demand and
the effect of ongoing supply chain constraints, particularly in
semiconductors; (f) inherent uncertainty related to global markets,
including uncertainty and volatility in the macroeconomic
environment, inflationary pressures, changes in the political or
economic environment, such as geopolitical conflicts, war, trade
and export restrictions and the imposition of tariffs or other
duties, and the effect of such market disruptions on demand for our
products; (g) changes in customer demand; (h) our ability to
attract and retain new customers, particularly in the imaging
and sensing market; and (i) the risk that Lumentum's financing or
operating strategies will not be successful. For more information
on these risks, please refer to the "Risk Factors" section included
in the Company's Quarterly Report on Form 10-Q for the quarter
ended December 31, 2022 to be filed with the Securities and
Exchange Commission. In addition, the results contained in
this presentation are valid only as of today's date except where
otherwise noted. The forward-looking statements contained in this
presentation 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:
|
Kathy Ta, 408-750-3853;
investor.relations@lumentum.com
|
Media:
|
Christina Itzkowitz,
781-929-0565; 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
|
|
Six Months
Ended
|
|
December 31,
2022
|
|
January 1,
2022
|
|
December 31,
2022
|
|
January 1,
2022
|
Net revenue
|
$
506.0
|
|
$
446.7
|
|
$
1,012.8
|
|
$
895.1
|
Cost of
sales
|
315.1
|
|
223.3
|
|
597.7
|
|
423.7
|
Amortization of
acquired developed intangibles
|
24.7
|
|
15.9
|
|
47.7
|
|
31.7
|
Gross profit
|
166.2
|
|
207.5
|
|
367.4
|
|
439.7
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and development
|
75.8
|
|
53.2
|
|
148.5
|
|
107.3
|
Selling, general and administrative
|
98.4
|
|
69.0
|
|
204.1
|
|
132.3
|
Restructuring and related charges
|
13.9
|
|
0.1
|
|
23.2
|
|
(1.0)
|
Total operating
expenses
|
188.1
|
|
122.3
|
|
375.8
|
|
238.6
|
Income (loss) from
operations
|
(21.9)
|
|
85.2
|
|
(8.4)
|
|
201.1
|
Interest
expense
|
(8.9)
|
|
(17.1)
|
|
(17.4)
|
|
(34.0)
|
Other income,
net
|
3.7
|
|
1.0
|
|
17.5
|
|
1.6
|
Income (loss) before
income taxes
|
(27.1)
|
|
69.1
|
|
(8.3)
|
|
168.7
|
Provision for income
taxes
|
4.6
|
|
12.4
|
|
23.8
|
|
30.5
|
Net income
(loss)
|
$
(31.7)
|
|
$
56.7
|
|
$
(32.1)
|
|
$
138.2
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.46)
|
|
$
0.78
|
|
$
(0.47)
|
|
$
1.91
|
Diluted
|
$
(0.46)
|
|
$
0.75
|
|
$
(0.47)
|
|
$
1.83
|
|
|
|
|
|
|
|
|
Shares used to compute
net income (loss) per share:
|
|
|
|
|
|
|
|
Basic
|
68.3
|
|
72.3
|
|
68.2
|
|
72.5
|
Diluted
|
68.3
|
|
75.3
|
|
68.2
|
|
75.4
|
LUMENTUM HOLDINGS INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (in millions, except per
share data) (unaudited)
|
|
|
December 31,
2022
|
|
July 2,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
592.1
|
|
$
1,290.2
|
Short-term
investments
|
1,088.3
|
|
1,258.8
|
Accounts receivable,
net
|
330.5
|
|
262.0
|
Inventories
|
366.9
|
|
250.1
|
Prepayments and other
current assets
|
114.8
|
|
78.1
|
Total current
assets
|
2,492.6
|
|
3,139.2
|
Property, plant and
equipment, net
|
487.7
|
|
360.5
|
Operating lease
right-of-use assets, net
|
84.9
|
|
73.6
|
Goodwill
|
698.2
|
|
368.9
|
Other intangible
assets, net
|
539.9
|
|
155.7
|
Deferred tax
asset
|
100.1
|
|
27.0
|
Other non-current
assets
|
14.7
|
|
37.3
|
Total
assets
|
$
4,418.1
|
|
$
4,162.2
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
205.6
|
|
$
156.7
|
Accrued payroll and
related expenses
|
60.7
|
|
54.6
|
Accrued
expenses
|
62.1
|
|
44.7
|
Short-term
debt
|
420.7
|
|
409.9
|
Operating lease
liabilities, current
|
14.0
|
|
11.2
|
Other current
liabilities
|
51.2
|
|
39.4
|
Total current
liabilities
|
814.3
|
|
716.5
|
Long-term
debt
|
1,900.3
|
|
1,466.1
|
Operating lease
liabilities, non-current
|
57.0
|
|
48.8
|
Deferred tax
liability
|
25.8
|
|
12.9
|
Other non-current
liabilities
|
77.1
|
|
42.9
|
Total
liabilities
|
2,874.5
|
|
2,287.2
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 990 authorized shares, 68.4 and 68.0 shares issued and
outstanding as of December 31, 2022 and July 2, 2022,
respectively
|
0.1
|
|
0.1
|
Additional paid-in
capital
|
1,641.4
|
|
2,003.6
|
Accumulated
deficit
|
(101.3)
|
|
(129.1)
|
Accumulated other
comprehensive income
|
3.4
|
|
0.4
|
Total stockholders'
equity
|
1,543.6
|
|
1,875.0
|
Total liabilities and
stockholders' equity
|
$
4,418.1
|
|
$
4,162.2
|
Use of Non-GAAP Financial Measures
In this press release, Lumentum provides investors with certain
non-GAAP financial measures: gross profit, gross margin, research
and development expense, selling, general and administrative
expense, operating margin, income from operations, interest and
other income (expense), net, income before income taxes, provision
for income taxes, net income (loss), and net income (loss) 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 ongoing 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 ongoing operations and
enable more meaningful period to period comparisons. In addition,
the Company believes that providing certain of these measures
allows 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.
Our non-GAAP measures used in this press release exclude (i)
stock-based compensation, (ii) acquisition related costs,
(iii) amortization of acquired intangibles, (iv) amortization of
acquired inventory fair value adjustments, (v) restructuring and
related charges, (vi) foreign exchange (gains) losses, net, (vii)
non-cash interest expense on convertible notes and other expenses,
(viii) non-recurring expenses related to litigation matters, (ix)
inventory and fixed assets write down due to product line exits,
(x) integration related costs, (xi) non-GAAP income tax reconciling
adjustments, and (xii) other (gains) charges related to
non-recurring activities.
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 31,
2022
|
|
October 1,
2022
|
|
January 1,
2022
|
|
December 31,
2022
|
|
January 1,
2022
|
|
|
|
|
|
|
|
|
|
|
Gross profit on GAAP
basis
|
$
166.2
|
|
$ 201.2
|
|
$ 207.5
|
|
$
367.4
|
|
$ 439.7
|
Stock-based
compensation
|
6.7
|
|
5.5
|
|
5.2
|
|
12.2
|
|
9.8
|
Amortization of
acquired intangibles
|
24.8
|
|
22.9
|
|
15.9
|
|
47.7
|
|
31.7
|
Amortization of
acquired inventory fair value adjustments
|
9.6
|
|
4.6
|
|
—
|
|
14.2
|
|
—
|
Integration related
costs
|
2.8
|
|
—
|
|
—
|
|
2.8
|
|
—
|
Inventory and fixed
asset write down due to product line exits
|
—
|
|
—
|
|
0.1
|
|
—
|
|
0.1
|
Other (gains) charges,
net (1)
|
16.9
|
|
9.9
|
|
(0.7)
|
|
26.8
|
|
(6.6)
|
Gross profit on
non-GAAP basis
|
$
227.0
|
|
$ 244.1
|
|
$ 228.0
|
|
$
471.1
|
|
$ 474.7
|
Gross margin on
non-GAAP basis
|
44.9 %
|
|
48.2 %
|
|
51.0 %
|
|
46.5 %
|
|
53.0 %
|
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
$
75.8
|
|
$
72.7
|
|
$
53.2
|
|
$
148.5
|
|
$ 107.3
|
Stock-based
compensation
|
(10.6)
|
|
(9.6)
|
|
(5.4)
|
|
(20.2)
|
|
(10.4)
|
Integration related
costs
|
(0.8)
|
|
—
|
|
—
|
|
(0.8)
|
|
—
|
Other
charges
|
—
|
|
(2.3)
|
|
—
|
|
(2.3)
|
|
(0.1)
|
Research and
development on non-GAAP basis
|
$
64.4
|
|
$
60.8
|
|
$
47.8
|
|
$
125.2
|
|
$
96.8
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative on GAAP basis
|
$
98.4
|
|
$ 105.7
|
|
$
69.0
|
|
$
204.1
|
|
$ 132.3
|
Stock-based
compensation
|
(19.3)
|
|
(19.6)
|
|
(16.7)
|
|
(38.9)
|
|
(31.9)
|
Stock-based
compensation - acquisition related (2)
|
—
|
|
(11.9)
|
|
—
|
|
(11.9)
|
|
—
|
Amortization of
acquired intangibles
|
(11.3)
|
|
(9.3)
|
|
(5.6)
|
|
(20.6)
|
|
(11.2)
|
Acquisition related
costs (3)
|
—
|
|
(16.2)
|
|
—
|
|
(16.2)
|
|
—
|
Integration related
costs
|
(4.4)
|
|
(0.6)
|
|
—
|
|
(5.0)
|
|
—
|
Litigation matters
(5)
|
(7.8)
|
|
—
|
|
—
|
|
(7.8)
|
|
—
|
Other charges,
net
|
(9.7)
|
|
(2.2)
|
|
(8.1)
|
|
(11.9)
|
|
(11.8)
|
Selling, general and
administrative on non-GAAP basis
|
$
45.9
|
|
$
45.9
|
|
$
38.6
|
|
$
91.8
|
|
$
77.4
|
|
|
|
|
|
|
|
|
|
|
Income from
operations on GAAP basis
|
$
(21.9)
|
|
$
13.5
|
|
$
85.2
|
|
$
(8.4)
|
|
$ 201.1
|
Stock-based
compensation
|
36.6
|
|
34.7
|
|
27.3
|
|
71.3
|
|
52.1
|
Stock-based
compensation - acquisition related (2)
|
—
|
|
11.9
|
|
—
|
|
11.9
|
|
—
|
Amortization of
acquired intangibles
|
36.1
|
|
32.2
|
|
21.5
|
|
68.3
|
|
42.9
|
Amortization of
acquired inventory fair value adjustments
|
9.6
|
|
4.6
|
|
—
|
|
14.2
|
|
—
|
Acquisition related
costs (3)
|
—
|
|
16.2
|
|
—
|
|
16.2
|
|
—
|
Integration related
costs
|
8.0
|
|
0.6
|
|
|
|
8.6
|
|
—
|
Restructuring and
related charges (4)
|
13.9
|
|
9.3
|
|
0.1
|
|
23.2
|
|
(1.0)
|
Litigation matters
(5)
|
7.8
|
|
—
|
|
—
|
|
7.8
|
|
—
|
Inventory and fixed
asset write down due to product line exits
|
—
|
|
—
|
|
0.1
|
|
—
|
|
0.1
|
Other charges,
net
|
26.6
|
|
14.4
|
|
7.4
|
|
41.0
|
|
5.3
|
Income from
operations on non-GAAP basis
|
$
116.7
|
|
$ 137.4
|
|
$ 141.6
|
|
$
254.1
|
|
$ 300.5
|
Operating margin on
non-GAAP basis
|
23.1 %
|
|
27.1 %
|
|
31.7 %
|
|
25.1 %
|
|
33.6 %
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense), net on GAAP basis
|
$
(5.2)
|
|
$
5.3
|
|
$ (16.1)
|
|
$
0.1
|
|
$ (32.4)
|
Foreign exchange
(gains) losses, net
|
4.1
|
|
(9.0)
|
|
(0.7)
|
|
(4.9)
|
|
(0.6)
|
Non-cash interest
expense on convertible notes and other expenses
|
6.2
|
|
5.7
|
|
15.8
|
|
11.9
|
|
31.1
|
Interest and other
income (expense), net on non-GAAP basis
|
$
5.1
|
|
$
2.0
|
|
$
(1.0)
|
|
$
7.1
|
|
$
(1.9)
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes on GAAP basis
|
$
(27.1)
|
|
$
18.8
|
|
$
69.1
|
|
$
(8.3)
|
|
$ 168.7
|
Stock-based
compensation
|
36.6
|
|
34.7
|
|
27.3
|
|
71.3
|
|
52.1
|
Stock-based
compensation - acquisition related (2)
|
—
|
|
11.9
|
|
—
|
|
11.9
|
|
—
|
Acquisition related
costs (3)
|
—
|
|
16.2
|
|
—
|
|
16.2
|
|
—
|
Integration related
costs
|
8.0
|
|
0.6
|
|
—
|
|
8.6
|
|
—
|
Amortization of
acquired intangibles
|
36.1
|
|
32.2
|
|
21.5
|
|
68.3
|
|
42.9
|
Amortization of
acquired inventory fair value adjustments
|
9.6
|
|
4.6
|
|
—
|
|
14.2
|
|
—
|
Restructuring and
related charges (4)
|
13.9
|
|
9.3
|
|
0.1
|
|
23.2
|
|
(1.0)
|
Litigation matters
(5)
|
7.8
|
|
—
|
|
—
|
|
7.8
|
|
—
|
Foreign exchange
(gains) losses, net
|
4.1
|
|
(9.0)
|
|
(0.7)
|
|
(4.9)
|
|
(0.6)
|
Non-cash interest
expense on convertible notes and other expenses
|
6.2
|
|
5.7
|
|
15.8
|
|
11.9
|
|
31.1
|
Inventory and fixed
asset write down due to product line exits
|
—
|
|
—
|
|
0.1
|
|
—
|
|
0.1
|
Other charges,
net
|
26.6
|
|
14.4
|
|
7.4
|
|
41.0
|
|
5.3
|
Income before income
taxes on non-GAAP basis
|
$
121.8
|
|
$ 139.4
|
|
$ 140.6
|
|
$
261.2
|
|
$ 298.6
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes on GAAP basis
|
$
4.6
|
|
$
19.2
|
|
$
12.4
|
|
$
23.8
|
|
$
30.5
|
Non-GAAP income tax
reconciling adjustments
|
13.1
|
|
1.0
|
|
8.0
|
|
14.1
|
|
12.8
|
Provision for income
taxes on non-GAAP basis
|
$
17.7
|
|
$
20.2
|
|
$
20.4
|
|
$
37.9
|
|
$
43.3
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) on
GAAP basis
|
$
(31.7)
|
|
$
(0.4)
|
|
$
56.7
|
|
$
(32.1)
|
|
$ 138.2
|
Stock-based
compensation
|
36.6
|
|
34.7
|
|
27.3
|
|
71.3
|
|
52.1
|
Stock-based
compensation - acquisition related (2)
|
—
|
|
11.9
|
|
—
|
|
11.9
|
|
—
|
Inventory and fixed
asset write down due to product line exits
|
—
|
|
—
|
|
0.1
|
|
—
|
|
0.1
|
Acquisition related
costs (3)
|
—
|
|
16.2
|
|
—
|
|
16.2
|
|
—
|
Integration related
costs
|
8.0
|
|
0.6
|
|
—
|
|
8.6
|
|
—
|
Amortization of
acquired intangibles
|
36.1
|
|
32.2
|
|
21.5
|
|
68.3
|
|
42.9
|
Amortization of
acquired inventory fair value adjustments
|
9.6
|
|
4.6
|
|
—
|
|
14.2
|
|
—
|
Restructuring and
related charges (4)
|
13.9
|
|
9.3
|
|
0.1
|
|
23.2
|
|
(1.0)
|
Litigation matters
(5)
|
7.8
|
|
—
|
|
—
|
|
7.8
|
|
—
|
Foreign exchange
(gains) losses, net
|
4.1
|
|
(9.0)
|
|
(0.7)
|
|
(4.9)
|
|
(0.6)
|
Non-cash interest
expense on convertible notes and other expenses
|
6.2
|
|
5.7
|
|
15.8
|
|
11.9
|
|
31.1
|
Non-GAAP income tax
reconciling adjustments
|
(13.1)
|
|
(1.0)
|
|
(8.0)
|
|
(14.1)
|
|
(12.8)
|
Other charges,
net
|
26.6
|
|
14.4
|
|
7.4
|
|
41.0
|
|
5.3
|
Net income on
non-GAAP basis
|
$
104.1
|
|
$ 119.2
|
|
$ 120.2
|
|
$
223.3
|
|
$ 255.3
|
|
|
|
|
|
|
|
|
|
|
Net income per share
on non-GAAP basis
|
$
1.52
|
|
$
1.69
|
|
$
1.60
|
|
$
3.20
|
|
$
3.39
|
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - diluted on GAAP basis
|
68.3
|
|
68.1
|
|
75.3
|
|
68.2
|
|
75.4
|
Non-GAAP adjustment
(6)
|
0.3
|
|
2.5
|
|
—
|
|
1.5
|
|
—
|
Shares used in per
share calculation - diluted on non-GAAP basis
|
68.6
|
|
70.6
|
|
75.3
|
|
69.7
|
|
75.4
|
|
|
(1)
|
Other gains (charges)
excluded in deriving non-GAAP gross profit for the three and six
months ended December 31, 2022 primarily relate to
$11.7 million and $19.0 million, respectively, of
incremental charges to acquire components from various brokers to
satisfy customer demand.
|
|
|
(2)
|
In connection with the
NeoPhotonics merger, certain equity awards for NeoPhotonics
employees were accelerated. The total stock-based compensation
associated with the acceleration was $11.9 million for the six
months ended December 31, 2022, of which $9.0 million was
settled in cash.
|
|
|
(3)
|
Acquisition related
costs of $16.2 million during the six months ended December
31, 2022 mainly include professional, advisory and legal service
fees related to the merger with NeoPhotonics and the acquisition of
IPG Photonics' telecom transmission product lines during the fiscal
first quarter of 2023.
|
|
|
(4)
|
During the three months
ended December 31, 2022, we recorded restructuring and related
charges of $13.9 million in our condensed consolidated statements
of operations, which was primarily due to company-wide integration
efforts as a result of the merger with NeoPhotonics, as well as our
cost reduction initiatives.
|
|
|
|
During the six months
ended December 31, 2022, we recorded restructuring and related
charges of $23.2 million in our condensed consolidated statements
of operations, which was primarily attributable to company-wide
integration efforts as a result of the merger with NeoPhotonics,
our cost reduction initiatives, as well as severance and
employee-related benefits associated with NeoPhotonics' executive
severance and retention agreements. These agreements provide for
payments and benefits upon an involuntary termination of employment
under certain circumstances.
|
|
|
(5)
|
During the three months
ended December 31, 2022, we recorded a charge of $7.8 million
with respect to the settlement of certain non-ordinary course
litigation matters.
|
|
|
(6)
|
Shares used for net
income per share on non-GAAP basis include incremental dilutive
shares that would occur upon conversion of our convertible notes
assuming we settle the face value of the notes in cash as the
Company intends, and shares related to restricted stock units
("RSUs") and shares issuable under our Employee Stock Purchase Plan
that are anti-dilutive on GAAP basis.
|
LUMENTUM HOLDINGS
INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA (in millions, except per share
data) (unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
December 31,
2022
|
|
October 1,
2022
|
|
January 1,
2022
|
|
December 31,
2022
|
|
January 1,
2022
|
GAAP net income
(loss)
|
$
(31.7)
|
|
$
(0.4)
|
|
$
56.7
|
|
$
(32.1)
|
|
$
138.2
|
Interest and other
expense, net
|
5.2
|
|
(5.3)
|
|
16.1
|
|
(0.1)
|
|
32.4
|
Provision for income
taxes
|
4.6
|
|
19.2
|
|
12.4
|
|
23.8
|
|
30.5
|
Depreciation
|
26.4
|
|
24.5
|
|
20.6
|
|
50.9
|
|
41.0
|
Amortization of
acquired intangibles
|
36.1
|
|
32.2
|
|
21.5
|
|
68.3
|
|
42.9
|
EBITDA
|
40.6
|
|
70.2
|
|
127.3
|
|
110.8
|
|
285.0
|
Amortization of
inventory fair value adjustments
|
9.6
|
|
4.6
|
|
—
|
|
14.2
|
|
—
|
Restructuring and
related charges
|
13.9
|
|
9.3
|
|
0.1
|
|
23.2
|
|
(1.0)
|
Stock-based
compensation
|
36.6
|
|
46.6
|
|
27.3
|
|
83.2
|
|
52.1
|
Acquisition related
costs
|
—
|
|
16.2
|
|
—
|
|
16.2
|
|
—
|
Inventory and fixed
asset write down due to product line exits
|
—
|
|
—
|
|
0.1
|
|
—
|
|
0.1
|
Integration related
costs
|
8.0
|
|
0.6
|
|
—
|
|
8.6
|
|
—
|
Other charges,
net
|
24.7
|
|
14.4
|
|
7.6
|
|
39.1
|
|
5.7
|
Adjusted
EBITDA
|
$
133.4
|
|
$
161.9
|
|
$
162.4
|
|
$
295.3
|
|
$
341.9
|
View original
content:https://www.prnewswire.com/news-releases/lumentum-announces-fiscal-second-quarter-2023-financial-results-301742844.html
SOURCE Lumentum