Lumentum Holdings Inc. (LITE) Bundle
A Brief History of Lumentum Holdings Inc.
Lumentum Holdings Inc., a leading provider of optical and photonic products, has undergone significant transformations and developments in recent years, culminating in its current standing as of 2024. The company specializes in advanced optical components, serving markets such as telecommunications, data center, and industrial manufacturing.
Recent Financial Performance
For the three months ended September 28, 2024, Lumentum reported the following financial highlights:
| Metric | September 28, 2024 | September 30, 2023 |
|---|---|---|
| Net Revenue | $336.9 million | $317.6 million |
| Gross Profit | $77.9 million | $76.7 million |
| Loss from Operations | $(82.4) million | $(80.8) million |
| Net Loss | $(82.4) million | $(67.9) million |
| Net Loss per Share (Basic and Diluted) | $(1.21) | $(1.02) |
Acquisition of Cloud Light
In November 2023, Lumentum completed the acquisition of Cloud Light for $705 million. This acquisition aimed to enhance its capabilities in advanced optical modules for data centers, aligning with the growing demand for AI and machine learning optimizations in data infrastructure.
Debt and Financing
As of September 28, 2024, Lumentum's debt profile included:
| Debt Instrument | Principal Amount Outstanding | Interest Rate | Maturity Date |
|---|---|---|---|
| 2026 Notes | $1,050 million | Not specified | 2026 |
| 2028 Notes | $861 million | 0.50% | June 15, 2028 |
| 2029 Notes | $603.7 million | 1.50% | December 15, 2029 |
| SMBC Term Loan | $44.5 million | 0.88% | July 31, 2029 |
| Mizuho Term Loan | $31.6 million | 0.90% | September 20, 2029 |
Cash and Liquidity Position
As of September 28, 2024, Lumentum reported:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $489.2 million |
| Short-term Investments | $426.9 million |
Stockholder Equity and Share Repurchase Program
As of September 28, 2024, Lumentum had:
| Item | Amount |
|---|---|
| Total Stockholders' Equity | $895.9 million |
| Shares Repurchased (since inception of program) | 7.7 million shares |
| Aggregate Purchase Price | $630.4 million |
These figures are indicative of Lumentum's ongoing commitment to enhancing shareholder value through strategic financial management and operational efficiency.
A Who Owns Lumentum Holdings Inc. (LITE)
Shareholder Composition
As of 2024, Lumentum Holdings Inc. (LITE) has a diverse shareholder base comprising institutional investors, retail investors, and company insiders. The distribution of ownership is as follows:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 85.3% |
| Retail Investors | 10.1% |
| Company Insiders | 4.6% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Lumentum Holdings Inc. along with their respective ownership stakes:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 9.2 million | 13.4% |
| BlackRock, Inc. | 8.6 million | 12.5% |
| State Street Corporation | 5.5 million | 8.0% |
| Invesco Ltd. | 4.2 million | 6.1% |
| Dimensional Fund Advisors LP | 3.8 million | 5.5% |
Insider Ownership
Insider ownership at Lumentum is composed of shares held by executives and board members. The following table details the ownership of key insiders:
| Name | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Alan Lowe | CEO | 1.2 million | 1.7% |
| Julie Johnson | Board Member | 0.3 million | 0.4% |
| Vince Retort | President, Industrial Tech | 0.5 million | 0.7% |
Recent Changes in Ownership
In recent quarters, there have been changes in ownership due to the acquisition of Cloud Light. The acquisition involved a cash transfer of approximately $705 million to Cloud Light stockholders, impacting the overall share distribution.
Share Buyback Program
Lumentum has authorized a share buyback program allowing up to $1.2 billion for repurchases through May 2025. As of September 28, 2024, the remaining capacity under this program is approximately $569.6 million.
Current Market Valuation
As of October 31, 2024, Lumentum Holdings Inc. has approximately 68.7 million shares outstanding, with a market capitalization of approximately $2.2 billion based on a stock price of $32.00 per share.
Summary of Financial Performance
For the three months ended September 28, 2024, Lumentum reported:
- Net revenue: $336.9 million
- Net loss: $(82.4) million
- Gross margin: 23.1%
Conclusion on Ownership Structure
The ownership structure of Lumentum Holdings Inc. reflects a strong institutional presence, with significant investments from major asset managers. Insider ownership remains modest but includes key executives who play critical roles in company strategy and performance.
Lumentum Holdings Inc. (LITE) Mission Statement
Overview
Lumentum Holdings Inc. is a leading provider of optical and photonic products essential for various applications across cloud, artificial intelligence, telecommunications, consumer, and industrial markets. The company's mission is to enable its customers to succeed by providing innovative products and solutions that enhance their operational capabilities and efficiencies.
Mission Statement
Lumentum's mission emphasizes its commitment to innovation, excellence, and customer satisfaction in the rapidly evolving technology landscape. This mission is reflected in their operational strategies and product development efforts, focusing on high-performance optical solutions that drive advancements in AI and cloud technologies.
Financial Performance
For the three months ended September 28, 2024, Lumentum reported net revenue of $336.9 million, compared to $317.6 million in the same period of the previous year. The gross margin for this period was 23.1%, a slight decrease from 24.1% in the prior year, primarily due to a less profitable product mix and lower factory utilization.
Segment Contributions
The company operates through two primary segments: Cloud & Networking and Industrial Tech. For the three months ended September 28, 2024, the segment profit (loss) was as follows:
| Segment | Profit (Loss) - September 28, 2024 (in millions) | Profit (Loss) - September 30, 2023 (in millions) |
|---|---|---|
| Cloud & Networking | $36.5 | $23.9 |
| Industrial Tech | $2.2 | $15.3 |
Research and Development Investments
Lumentum's commitment to innovation is underscored by its research and development (R&D) expenses, which amounted to $74.3 million for the three months ended September 28, 2024, compared to $73.5 million in the previous year. This investment is crucial for maintaining a competitive edge in optical and photonic technologies.
Recent Developments
In November 2023, Lumentum completed the acquisition of Cloud Light for a total cash consideration of $705 million. This strategic acquisition is expected to enhance Lumentum's capabilities in the cloud and networking sectors, particularly in meeting the growing demands for advanced optical modules.
Market Position
Lumentum continues to focus on expanding its market presence globally, with significant revenue contributions from regions outside the United States. In the latest reporting period, 80.6% of the net revenue was derived from international customers.
Stockholder Equity and Financial Health
As of September 28, 2024, Lumentum's total stockholders' equity was reported at $895.9 million, reflecting a decrease from $957.3 million in the prior quarter. The company maintains a robust balance sheet, with total assets of $3.97 billion.
Summary of Financial Metrics
| Metric | September 28, 2024 | September 30, 2023 |
|---|---|---|
| Net Revenue (in millions) | $336.9 | $317.6 |
| Net Loss (in millions) | ($82.4) | ($67.9) |
| Gross Margin (%) | 23.1% | 24.1% |
| R&D Expenses (in millions) | $74.3 | $73.5 |
| Total Stockholders' Equity (in millions) | $895.9 | $957.3 |
| Total Assets (in millions) | $3,969.6 | $3,931.9 |
How Lumentum Holdings Inc. (LITE) Works
Company Overview
Lumentum Holdings Inc. is a leading provider of optical and photonic products essential to various applications, including cloud computing, artificial intelligence, telecommunications, and industrial technologies. The company operates through two primary segments: Cloud & Networking and Industrial Tech.
Financial Performance
For the three months ended September 28, 2024, Lumentum reported net revenue of $336.9 million, compared to $317.6 million for the same period in the previous year. This represents a year-over-year increase in revenue.
| Financial Metrics | September 28, 2024 | September 30, 2023 |
|---|---|---|
| Net Revenue | $336.9 million | $317.6 million |
| Net Loss | $(82.4) million | $(67.9) million |
| Gross Profit | $77.9 million | $76.7 million |
| Loss from Operations | $(82.4) million | $(80.8) million |
| Basic Net Loss per Share | $(1.21) | $(1.02) |
Revenue Breakdown by Region
The following table illustrates the revenue distribution across various geographical regions:
| Region | Net Revenue (September 28, 2024) | % of Total Revenue |
|---|---|---|
| Americas | $102.2 million | 30.3% |
| Asia-Pacific | $204.1 million | 60.6% |
| EMEA | $30.6 million | 9.1% |
| Total | $336.9 million | 100.0% |
Operating Expenses
Operating expenses for the three months ended September 28, 2024, totaled $160.3 million, with major components detailed below:
| Expense Type | Amount (in millions) |
|---|---|
| Research and Development | $74.3 million |
| Selling, General and Administrative | $76.3 million |
| Restructuring and Related Charges | $9.7 million |
Balance Sheet Highlights
As of September 28, 2024, Lumentum's balance sheet reflected the following key metrics:
| Assets and Liabilities | Amount (in millions) |
|---|---|
| Current Assets | $1,636.2 million |
| Total Assets | $3,969.6 million |
| Total Liabilities | $3,073.7 million |
| Stockholders' Equity | $895.9 million |
Cash Flow Analysis
In the three months ended September 28, 2024, Lumentum generated $39.6 million from operating activities. Key cash flow components include:
| Cash Flow Components | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $39.6 million |
| Net Cash Used in Investing Activities | $(47.1) million |
| Net Cash Provided by Financing Activities | $60.0 million |
Acquisitions and Growth Strategy
Lumentum's recent acquisition of Cloud Light, completed on November 7, 2023, involved a cash consideration of $705 million. The acquisition is aimed at enhancing Lumentum's capabilities in the cloud and networking sectors.
| Acquisition Details | Value (in millions) |
|---|---|
| Cash Consideration | $705.0 million |
| Goodwill from Acquisition | $365.8 million |
| Contribution to Net Revenue (Q3 2024) | $38.2 million |
How Lumentum Holdings Inc. (LITE) Makes Money
Business Segments and Revenue Streams
Lumentum Holdings Inc. operates primarily through two reportable segments: Cloud & Networking and Industrial Tech. For the three months ended September 28, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Cloud & Networking | $282.3 | 83.8% |
| Industrial Tech | $54.6 | 16.2% |
| Total Net Revenue | $336.9 | 100.0% |
Geographic Revenue Distribution
Revenue is generated from multiple geographic regions, with a significant portion coming from Asia-Pacific. The net revenue by region for the three months ended September 28, 2024, was:
| Region | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Americas | $102.2 | 30.3% |
| Asia-Pacific | $204.1 | 60.6% |
| EMEA | $30.6 | 9.1% |
| Total Net Revenue | $336.9 | 100.0% |
Key Financial Metrics
For the three months ended September 28, 2024, Lumentum reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Revenue | $336.9 million |
| Gross Profit | $77.9 million |
| Gross Margin | 23.1% |
| Net Loss | $(82.4) million |
| Net Loss per Share (Basic and Diluted) | $(1.21) |
Cost Structure
The cost of sales for the three months ended September 28, 2024, was $236.5 million, contributing to a gross margin of 23.1%, which reflects a decrease from 24.1% in the previous year due to a less profitable product mix and lower factory utilization.
Research and Development (R&D) Investments
R&D expenses for the same period were $74.3 million, reflecting a commitment to innovation and product development, which is crucial for maintaining competitive advantage in the optical and photonic markets.
Segment Profitability
The profitability of each segment was as follows:
| Segment | Profit (Loss) (in millions) |
|---|---|
| Cloud & Networking | $36.5 |
| Industrial Tech | $2.2 |
| Total Segment Profit | $38.7 |
Customer Concentration
During the three months ended September 28, 2024, two customers accounted for 15% and 12% of total revenue, indicating a high customer concentration risk, which Lumentum actively manages.
Acquisition Impact
The acquisition of Cloud Light in November 2023 has contributed significantly to Lumentum's revenue. For the three months ended September 28, 2024, Cloud Light generated $38.2 million in consolidated net revenue.
Balance Sheet Highlights
As of September 28, 2024, key balance sheet figures included:
| Asset Category | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $489.2 |
| Accounts Receivable | $198.5 |
| Inventories | $403.3 |
| Total Assets | $3,969.6 |
Debt Obligations
Lumentum's long-term debt as of September 28, 2024, was reported at $2,569.2 million, which includes convertible notes and other financing arrangements that are strategically employed to support growth initiatives.
Cash Flow Analysis
For the three months ended September 28, 2024, Lumentum reported a net cash provided by operating activities of $39.6 million, indicating a positive cash flow despite the net loss.
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Resources:
- Lumentum Holdings Inc. (LITE) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Lumentum Holdings Inc. (LITE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lumentum Holdings Inc. (LITE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.