Lumentum Holdings Inc. Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Q2 FY22 revenue reached $446.7M, slightly above midpoint guidance. This was flat quarter-over-quarter and down 7% year-over-year.
  • The company experienced strong demand across Telecom, Datacom, and Commercial Lasers, but supply-chain constraints—particularly semiconductors—restricted revenue by roughly $50M in Q2 and are expected to have >$65M impact in Q3.
  • Lumentum expects supply shortages to begin easing late calendar year 2022 and supports an outlook for double‑digit revenue growth in FY23 and beyond (excluding the pending NeoPhotonics acquisition).
  • Integration planning for NeoPhotonics continues on track with U.S. antitrust clearance received and shareholder approval completed. Closing remains expected in 2H 2022.

Key Financial Results (Q2 FY22)

  • Net Revenue: $446.7M (flat QoQ, -7% YoY).
  • Non‑GAAP Gross Margin: 51% (down QoQ and YoY due to product mix).
  • Non‑GAAP Operating Margin: 31.7% (down QoQ and YoY).
  • Non‑GAAP EPS: $1.60.
  • Cash & Short‑Term Investments: ~$2B, up $178M sequentially.
  • Share Repurchases: 330,000 shares for ~$30M in Q2 (total $363M repurchased under authorization).

Segment Results

Optical Communications (Telecom + Datacom)
  • Revenue: $397.4M (-2% QoQ; strong Telecom/Datacom growth offset seasonal Consumer declines).
  • Gross Margin: 50.8% (down QoQ/YoY due to mix).

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Operator: Good day, everyone, and welcome to the Lumentum Holdings Second Quarter Fiscal Year 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] At this time, I’d like to hand the conference call over to Kathy Ta, Vice President of Investor Relations. Ms. Ta, please go ahead. Kathy Ta: Thank you, operator. Welcome to Lumentum’s Fiscal Second Quarter 2022 Earnings Call. This is Kathy Ta, Lumentum’s Vice President of Investor Relations. Joining me today are Alan Lowe, President and Chief Executive Officer; Wajid Ali, Chief Financial Officer; and Chris Coldren, Senior Vice President and Chief Strategy and Corporate Development Officer. Today’s call will include forward-looking statements, including statements regarding our expectations regarding the pending acquisition of NeoPhotonics, including market opportunity, expected synergies, financial and operating results and expectations regarding accretion, time to close, strategies of the combined company and benefits to customers in the markets in which we operate as well as the impact of COVID-19 on our business and continuing uncertainty in this regard. Trends and expectations for our products and technology, our markets, market opportunity and customers and our expected financial performance, including our guidance as well as statements regarding our future revenues, our financial model and our margin targets. These statements are subject to risks and uncertainties that could cause actua

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