Lumentum Hldgs Inc Stock Price, News & Analysis

Lumentum Holdings reported preliminary results for the fiscal second quarter of 2021, revealing net revenue of approximately $478.8 million. The GAAP operating margin ranged from 22.6% to 24.1%, with diluted net income per share between $0.98 and $1.06. Non-GAAP figures showed operating margins from 34.0% to 35.5% and diluted net income per share of $1.91 to $1.99. The final results are subject to revision as they are based on preliminary unaudited information. A conference call discussing these results will be held on February 2, 2021.

Lumentum Holdings and Coherent have signed a definitive agreement for Lumentum to acquire Coherent in a cash and stock deal valued at $5.7 billion. Each Coherent shareholder will receive $100.00 in cash plus 1.1851 shares of Lumentum stock. Upon closing, Coherent shareholders will own 27% of the combined entity. This merger aims to enhance Lumentum's presence in the photonics market, estimated at over $10 billion, by merging operations and R&D capabilities across multiple industries, including telecommunications and aerospace.

Lumentum Holdings is set to acquire Coherent for $5.7 billion, offering Coherent shareholders $100 in cash and 1.1851 shares of Lumentum stock per share. This merger is expected to enhance Lumentum's market presence in the photonics industry, uniting capabilities in lasers, microelectronics, and aerospace sectors. The combined entity will target a $10 billion market outside traditional segments and is projected to generate over $150 million in synergies within 24 months, benefiting shareholders with accretive earnings in the first year post-merger.

Lumentum Holdings Inc. announced its participation in the European Conference on Optical Communications (ECOC) virtual event from December 7-9, 2020. The company will showcase its advanced optical communications products, including TrueFlex® ROADM solutions, datacom laser chips, and coherent transmission solutions. Notably, Lumentum revealed its 96 Gbaud HB-CDM and 69 Gbaud TROSA, both designed to enhance network bandwidth and efficiency. These innovations aim to meet the growing demands for higher capacity in optical networks.

Lumentum has launched the 100G PAM4 DML, a new directly-modulated laser for hyperscale data centers, enhancing its datacom laser chip portfolio. This product aims to meet the rising demand for high-speed, reliable intra-data center connections. The 100G PAM4 DML offers a cost-effective solution for 400G DR4 modules while supporting future 800G PSM8 applications. Senior VP Walter Jankovic emphasized its potential to decrease module costs significantly, leveraging advanced InP technology for optimal performance.

Lumentum will present at the European Conference on Optical Communications (ECOC) from December 7-9, 2020. The presentations will cover industry trends and advanced solutions, including ROADM networks and Indium Phosphide (InP) innovations for high-speed fiber optics. Key presentations include discussions on QoT-E for line control, 100-Gbaud operation for transceivers, and ROADM technologies. Lumentum is a leader in optical networking solutions and is traded under the ticker LITE.

Lumentum Holdings Inc. will participate in various virtual investor events in December 2020, providing insights into its operations and future outlook. Key events include:

• Nasdaq 43rd Investor Conference: December 1, 2020, at 11:30 AM ET
• Raymond James Virtual Technology Investors Conference: December 7, 2020, at 9:40 AM ET
• Barclays Global Technology Conference: December 10, 2020, at 9:30 AM ET
• D.A. Davidson Conference: December 15, 2020, from 9:00 AM to 2:45 PM ET
• MKM Partners Conference: December 16, 2020, at 11:10 AM ET

Webcasts will be accessible on the investor relations section of Lumentum's website.

Lumentum has acquired specific technology assets from TriLumina, which includes patents and intellectual property related to innovative flip-chip, back-emitting VCSEL arrays. These technologies will enhance Lumentum's capabilities in 3D sensing, automotive safety, driver assistance systems, and LiDAR applications. The financial terms of the transaction have not been disclosed. This acquisition solidifies Lumentum's position in the optical and photonic product market, enabling advancements in various sectors.

Lumentum Holdings reported strong fiscal Q1 2021 results, achieving net revenue of $452.4 million, a 22.9% increase from Q4 2020. GAAP net income was $67.1 million, or $0.86 per diluted share, compared to a loss of $(4.6) million in the previous quarter. Non-GAAP net income rose to $139.2 million, or $1.78 per diluted share. The company expects Q2 2021 revenue between $465 million and $485 million, with a non-GAAP operating margin of 32.0% to 34.0%. Cash and short-term investments totaled $1,610.7 million.