10-K annual report · filed Aug 27, 2019

Lumentum Holdings Inc (LITE) FY2019 10-K Annual Report

Short answer

Lumentum Holdings Inc (LITE) filed its fiscal 2019 10-K annual report with the SEC on Aug 27, 2019. It reported revenue of $458M (−63.3% year over year) and net income of −$36M.

  • Top risk flagged: Huawei Entity List restrictions: Huawei represented 15.2% of fiscal 2019 revenue, limiting shipments under U.S. EAR rules

FY2019 key financial metrics · XBRL

Revenue
$458M
−63.3% YoY
Net income
−$36M
−114.7% YoY
Operating margin
-4.7%
−15.9 pp YoY
Gross margin
93.0%
+58.4 pp YoY
EPS (diluted)
−$0.54
−114.1% YoY
ROE
-2.4%
−29.2 pp YoY
Operating cash flow
$330M
+33.4% YoY

Source: XBRL data from the Lumentum Holdings Inc (LITE) FY2019 10-K on SEC EDGAR. USD.

Lumentum Holdings Inc FY2019 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Optical and photonic components, modules and lasers sold primarily to OEMs across communications, consumer sensing and industrial manufacturing markets
  • Oclaro merger completed December 10, 2018, adding indium phosphide, photonic integrated circuit and coherent optical capabilities
  • Strategic pivot from Datacom transceiver modules toward higher-margin optical chips, with transceiver sales expected to reach zero in fiscal 2020
  • International shipments reached 93.6% of revenue, up from 90.8%, while fiscal 2019 revenue rose to $1,565.3 million
  • Major portfolio rationalization: $30.7 million asset impairment and $20.8 million inventory write-down tied to Datacom and Lithium Niobate exits

Management Discussion & Analysis

  • Revenue $1,565.3M, up $317.6M or 25.5% YoY, primarily from Oclaro acquisition and Telecom growth
  • Gross margin 27.2% vs 34.6%; operating margin -1.4% vs 11.2%, reflecting acquisition amortization and product-exit charges
  • Best segment OpComms: revenue $1,370.2M, up 29.4%, margin 39.0%; Lasers revenue $195.1M, up 3.5%, margin 43.3%
  • Operating cash flow $330.1M; capex $166.0M; Oclaro acquisition payments $619.8M; term-loan proceeds $490.8M
  • Outlook: cash sufficient for at least 12 months; risks include demand, tariffs, customer concentration, acquisitions and higher capital expenditures

Risk Factors

  • Huawei Entity List restrictions: Huawei represented 15.2% of fiscal 2019 revenue, limiting shipments under U.S. EAR rules
  • U.S.-China tariffs: China-based contract manufacturing and Asian suppliers exposed to higher costs and reduced customer demand
  • Manufacturing concentration: Sole-source contract manufacturers and China-to-Shenzhen/Thailand production transfers risk supply interruptions
  • Optical communications commoditization: Asia-based entrants and II-VI’s announced Finisar acquisition intensifying pricing pressure
  • Debt burden: $500 million Term Loan Facility plus $450 million 2024 Notes limiting operating flexibility and requiring substantial cash service

Generated from the filing text; verify against the original. How to read a 10-K

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