Q3 2024 Lumentum Holdings Inc Earnings Call Transcript
Key Points
- Lumentum Holdings Inc (LITE) reported a 9% sequential and 7% year-over-year growth in Cloud & Networking revenue, driven by strong data center demand and contributions from the Cloud Light acquisition.
- The company is expanding its product offerings with multiple waves of product releases planned, including new 1.6 terabit intra data center optical transceivers and 800G coherent pluggables, which are expected to drive significant growth.
- Lumentum Holdings Inc (LITE) is increasing its manufacturing capacity to meet strong demand from cloud customers, with plans well underway for expansion in Thailand to support volume production.
- The company has begun product sampling with key customers for its 800ZR and 800ZR+ coherent transceivers, which offer differentiated performance and power consumption, critical for data center applications.
- Lumentum Holdings Inc (LITE) is actively engaging with multiple cloud and AI infrastructure customers on innovative solutions to scale data center infrastructure, which is expected to drive future revenue growth.
- Revenue from the Industrial Tech segment was down 34% sequentially and 42% year-over-year, primarily due to increased competition in the 3D sensing business and inventory consumption at a major industrial laser customer.
- The company faces challenges from telecom customer inventory issues, with a slower pace of telco carrier spending than anticipated, which is expected to continue affecting revenue in the coming quarters.
- Lumentum Holdings Inc (LITE) is experiencing a transition period with the Cloud Light business, which has led to a temporary reduction in datacom module revenue.
- The company reported a GAAP operating loss of 31.3% and a GAAP diluted net loss per share of $1.88 for the third quarter, influenced by acquisition-related charges and restructuring costs.
- There are uncertainties related to the supply chain, particularly third-party suppliers of DSPs and other components, which could impact the timing and success of new product ramps.
Good day, everyone, and welcome to the Lumentum Holdings Third Quarter Fiscal Year 2024 Earnings Call. (Operator Instructions) Please also note, today's event is being recorded for replay purposes. At this time, I would now like to turn the conference call over to Kathy Ta, Vice President of Investor Relations. Ms. Ta, please go ahead.
Thank you, and welcome to Lumentum's Fiscal Third Quarter 2024 Earnings Call. This is Kathy Ta, Lumentum's Vice President of Investor Relations. Joining me today are Alan Lowe, President and Chief Executive Officer; Wajid Ali, Executive Vice President and Chief Financial Officer; and Chris Coldren, Senior Vice President and Chief Strategy and Corporate Development Officer.
Today's call will include forward-looking statements, including statements regarding our expectations and beliefs regarding recent acquisitions, including Cloud Light and NeoPhotonics; macroeconomic trends; trends and expectations for our products and technologies; our end markets; market opportunities and
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