Lumentum Holdings Inc. (NASDAQ:LITE) has announced the results of its first fiscal of 2016 – and its first quarter as Lumentum, following its spin out from JDSU August 1 (see "Viavi Solutions, Lumentum begin life as JDSU is no more").
The quarter, which ended September 26, 2015, included first five weeks in which Lumentum was still part of JDSU. Nevertheless, the company likely sees it as a good first step. Revenues increased and GAAP net loss decreased sequentially, while revenues and non-GAAP income exceeded analysts' consensus estimates.
Lumentum reported net revenue for the quarter of $212.6 million and GAAP net loss of $0.4 million, or $0.01 per share. These figures showed improvement over the net revenue of $208.9 million and GAAP net loss of $15.8 million, or $(0.27) per share, for the prior quarter.
However, year-on-year the quarter came out behind. Net revenue for 1Q15 was $219.0 million, and GAAP net income was $4.3 million, or $0.07 per share.
On a non-GAAP basis, net income for the recently concluded quarter was $15.3 million ($0.26 per share), up from the prior quarter's $8.9 million ($0.15 per share). These figures also fell short of those from the year-ago quarter, when non-GAAP net income was $16.7 million ($0.28 per share).
The non-GAAP figures include approximately $2.0 million of non-recurring allocated cost from JDSU. Based on the company's current cost structure, Lumentum leadership believes that had they been operating independently for the entire quarter, non-GAAP earnings per share would have been $0.29 per share.
Non-GAAP gross margin was 32.8%, up from 32.0% in 4Q15 but down from the 33.8% of 1Q15.
Improved sales from the company's Laser group drove the sequential revenue uptick. In fact, sales from the Optical Communications operations declined slightly sequentially; they were slightly better than in fiscal 1Q15.
For the current quarter that ends December 26, 2015, Lumentum management expects continued success. They guided revenues up at $212 million to $222 million and non-GAAP earnings per share to be $0.26 to $0.30 per share.
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