In This Article:
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Revenue: $425.2 million, above the high end of guidance.
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Non-GAAP EPS: $0.57, exceeding guidance expectations.
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GAAP Gross Margin: 28.8%.
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Non-GAAP Gross Margin: 35.2%, up 290 basis points sequentially.
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Non-GAAP Operating Margin: 10.8%, up 290 basis points sequentially.
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Non-GAAP Operating Profit: $46.1 million.
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Adjusted EBITDA: $71 million.
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Cloud and Networking Segment Revenue: $365.2 million, up 8% sequentially and 16% year-on-year.
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Industrial Tech Segment Revenue: $60 million, down 5% sequentially, up 14% year-on-year.
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CapEx Investment: $59.5 million, primarily for expanding clean room capacity and indium phosphide wafer production.
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Cash and Short-term Investments: Decreased by $30 million to $867 million.
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Q4 Revenue Guidance: $440 million to $470 million.
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Q4 Non-GAAP Operating Margin Guidance: 13% to 14%.
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Q4 Non-GAAP EPS Guidance: $0.70 to $0.80 per share.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lumentum Holdings Inc (NASDAQ:LITE) exceeded the high end of their guidance for both revenue and EPS in Q3, driven by strong demand from cloud customers.
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Revenue in the Cloud and Networking segment grew 8% sequentially and 16% year-over-year, fueled by robust demand from hyperscale cloud customers.
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The company set a record for EML chip shipments and remains on track to more than double this business by the end of calendar 2025.
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Lumentum Holdings Inc (NASDAQ:LITE) is ramping production in CW lasers for silicon photonics transceiver applications, with expectations of increased shipments.
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The company introduced the R300 optical circuit switch, which is expected to improve scalability and efficiency in AI clusters and intra data center networks.
Negative Points
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Industrial Tech segment revenue decreased 5% sequentially, reflecting ongoing macroeconomic headwinds impacting industrial laser demand.
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The company faces a 100 basis point reduction in overall gross margin due to higher material costs and tariffs on shipments to U.S. destinations.
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Despite ramping capacity, Lumentum Holdings Inc (NASDAQ:LITE) is unable to satisfy demand for narrow line width lasers for the balance of the calendar year.
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There is ongoing macroeconomic volatility, including tariff dynamics and export controls, presenting near-term challenges.
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The company is experiencing supply constraints in telecom products, which are expected to persist for the next several quarters.
Q & A Highlights
Q: How is Lumentum tracking towards the $500 million revenue target by the end of the calendar year? A: Michael E. Hurlston, CEO, confirmed that Lumentum is on track to achieve the $500 million revenue target by the end of the year. The company is guiding a quarter at a time but remains confident in reaching this goal.