Short answer
Lumentum Holdings Inc (LITE) filed its fiscal 2018 10-K annual report with the SEC on Aug 28, 2018. It reported revenue of $1.2B (+24.6% year over year) and net income of $248M.
- Top risk flagged: U.S.-China tariffs: 2018 tariffs on China-manufactured products threatening costs, sales and profit margins
FY2018 key financial metrics · XBRL
- Revenue
- $1.2B
- +24.6% YoY
- Net income
- $248M
- +342.0% YoY
- Operating margin
- 11.2%
- +6.5 pp YoY
- Gross margin
- 34.6%
- +2.9 pp YoY
- EPS (diluted)
- $3.82
- +323.4% YoY
- ROE
- 26.8%
- +43.4 pp YoY
- Operating cash flow
- $248M
- +191.2% YoY
Source: XBRL data from the Lumentum Holdings Inc (LITE) FY2018 10-K on SEC EDGAR. USD.
Lumentum Holdings Inc FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Optical and photonic components for OEMs, spanning Optical Communications and Commercial Lasers
- Consumer and Industrial surged to 34.7% of revenue from 4.5%, driven by 3D-sensing laser adoption
- $1.8B agreement to acquire Oclaro, expanding optical communications scale and portfolio
- International shipments reached 90.8% of revenue, up from 85.2% in fiscal 2017
- Backlog increased to $370.6M from $218.4M, while R&D spending rose to $156.8M
Management Discussion & Analysis
- Revenue $1,247.7M, up $246.1M or 24.6% YoY, driven by 3D sensing, commercial lasers and industrial diode lasers
- Net income $248.1M, net margin 19.9% vs (10.2)%; gross margin 34.6% vs 31.8%; operating margin 11.2% vs 4.8%
- Best segment: OpComms revenue $1,059.2M, up 23.5%, margin 38.0% vs 33.5%; Lasers revenue $188.5M, up 31.1%
- Operating cash flow $247.5M; capital expenditures $93.2M; cash balance $397.3M
- Oclaro acquisition expected at $1.7B, funded with $700M stock, $500M debt and cash; China antitrust approval remained pending
Risk Factors
- U.S.-China tariffs: 2018 tariffs on China-manufactured products threatening costs, sales and profit margins
- China contract manufacturers: sole-source exposure, labor strike disruption and costly production transfers to Thailand
- Optical communications commoditization: Asia-based entrants intensifying price pressure alongside competitors II-VI and Finisar
- Oclaro merger financing: approximately $416 million cash consideration plus up to $550 million senior secured term loans
- Customer concentration: significant sales, especially 3D sensing, tied to customers without volume purchase commitments
Generated from the filing text; verify against the original. How to read a 10-K
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