Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Lumentum Holdings Inc. | lite_ex991xq1fy18.htm |
| 8-K - 8-K - Lumentum Holdings Inc. | lumentum_8kxq1fy18.htm |
Q1 FY18 Conference Call
November 1, 2017
© 2017 Lumentum Operations LLC
Forward Looking Statement and Financial Presentation
This presentation 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 any anticipation or guidance as to future financial
performance, including future revenue, earnings per share, gross margin, operating expense, operating margin, profitability, cash flow
and other financial metrics, anticipated trends for our products including new orders and delivery timing, technologies and the
markets in which we operate as well as our strategies and position in our markets. These forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company’s ability to
predict future financial performance continues to be difficult due to, among other things: (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, quality and delivery requirements for our forecasted demand; (e) inherent uncertainty
related to global markets and the effect of such markets on demand for our products; and (f) changes in customer needs and
forecasts. All forward-looking statements involve risks and uncertainties that could cause actual events and terms to differ materially
from those set forth herein, including those related to our business and growth opportunities. 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 September
30, 2017 as filed with the Securities and Exchange Commission, and our other filings 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.
Unless otherwise stated, all financial results and projections are on a non-GAAP basis. Our GAAP results, details about our non-
GAAP financial measures, and a reconciliation between GAAP and non-GAAP results can be found in our fiscal first quarter 2018
earnings press release which is available on our web site, www.lumentum.com, under the investors section. 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, stock-based compensation, litigation, 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.
2
© 2017 Lumentum Operations LLC
Q1 FY18 Results (GAAP)
$ in millions
except for EPS, % of revenue
Q1 FY18 Q4 FY17 Q1 FY17
Revenue $243.2 $222.7 $258.1
Gross Margin 68.5 28.2% 67.3 30.2% 81.7 31.7%
Operating Expenses 65.8 27.1% 63.4 28.5% 64.9 25.1%
Operating Income 2.7 1.1% 3.9 1.8% 16.8 6.5%
Diluted EPS $0.11 $(0.90) $(0.06)
Diluted Shares-M 64.5 61.3 59.9
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© 2017 Lumentum Operations LLC
Q1 FY18 Results (Non-GAAP)
$ in millions
except for EPS, % of revenue
Q1 FY18 Q4 FY17 Q1 FY17
Revenue $243.2 $222.7 $258.1
Gross Margin 82.7 34.0% 73.2 32.9% 88.2 34.2%
Operating Expenses 54.1 22.2% 52.8 23.7% 55.5 21.5%
Operating Income 28.6 11.8% 20.4 9.2% 32.7 12.7%
Diluted EPS $0.43 $0.39 $0.49
Diluted Shares-M 64.5 63.8 62.4
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© 2017 Lumentum Operations LLC
Q1 FY18 Segment Results (Non-GAAP)
$ in millions
Q1 FY18 Q4 FY17 Q1 FY17
Revenue $243.2 $222.7 $258.1
Optical Communications 207.9 186.8 218.3
Telecom 110.4 120.2 165.6
Datacom 45.2 50.1 44.2
Industrial & Consumer(1) 52.3 16.5 8.5
Commercial Lasers 35.3 35.9 39.8
Gross Margin 34.0% 32.9% 34.2%
Optical Communications 34.7% 31.1% 32.5%
Commercial Lasers 30.0% 42.1% 43.2%
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(1) Industrial & Consumer contains 3D sensing revenues as well as diode lasers sold into industrial applications.
© 2017 Lumentum Operations LLC
Balance Sheet
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Selected Items - $ in millions
Q1 FY18
Q4 FY17
Cash and Short-term Investments $532.5 $555.3
Working Capital(1) 212.8 190.8
Property, Plant & Equipment, net 293.7 273.5
Total Assets 1,248.4 1,232.9
Total Liabilities 571.5 578.3
Shareholder’s Equity(2) 676.9 654.6
(1) Working capital excluding cash and short-term investments.
(2) Includes convertible preferred stock of $35.8M.
© 2017 Lumentum Operations LLC
Q2 FY18 Guidance (Non-GAAP)
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$ in millions
except for EPS, % of revenue
Q1 FY18
Actual
Q2 FY18
Estimate
Revenue $243.2M $345.0M - $375.0M
Operating Margin 11.8% 21.0% – 23.0%
Diluted EPS $0.43 $1.05 – $1.25
Guidance provided is based on our expectations as of today and will not be updated or confirmed as of
any other date.
