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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