MILPITAS, Calif., Aug. 9, 2017 /PRNewswire/ -- Lumentum Holdings
Inc. ("Lumentum" or the "Company") today reported results for its
fiscal fourth quarter and full year ended July 1, 2017.
Net revenue for the fiscal fourth quarter 2017 was $222.7 million, with GAAP net loss of
$(54.9) million, or $(0.90) per diluted share. Net revenue for fiscal
third quarter 2017 was $255.8
million, with GAAP net loss of $(56.0) million, or $(0.92) per diluted share. Net revenue for the
fiscal fourth quarter 2016 was $241.7
million, with GAAP net income of $14.3 million, or $0.23 per diluted share.
Non-GAAP net income for the fiscal fourth quarter 2017 was
$25.0 million or $0.39 per diluted share. Non-GAAP net income for
fiscal third quarter 2017 was $30.8
million, or $0.49 per diluted
share. Non-GAAP net income for the fiscal fourth quarter 2016 was
$25.4 million, or $0.41 per diluted share. The Company held
$555.3 million in total cash and
short-term investments at the end of the fiscal fourth quarter
2017.
Net revenue for fiscal year 2017 was $1,001.6 million, with GAAP net loss of
$(102.5) million, or $(1.69) per diluted share. Net revenue for fiscal
year 2016 was $903.0 million, with
GAAP net income of $9.3 million, or
$0.15 per diluted share.
Non-GAAP net income for fiscal year 2017 was $122.4 million or $1.94 per diluted share. Non-GAAP net
income for fiscal year 2016 was $78.9
million, or $1.29 per diluted
share.
"In our second fiscal year as a stand-alone public company, we
exceeded the $1 billion revenue mark
and increased non-GAAP net income by more than 50% year-over-year."
said Alan Lowe, president and CEO.
"We continue to make excellent progress on our strategic
initiatives. Revenue from our 100G QSFP28 transceivers nearly
doubled sequentially in the fourth quarter. We began ramping our 3D
sensing products to meet our strong customer demand and expect
volumes to increase monthly through the end of the calendar
year."
Financial Overview
– Fiscal Fourth Quarter Ended July 1, 2017
|
|
|
GAAP Results ($ in
millions)
|
|
Q4
|
|
Q3
|
|
Q4
|
|
Change
|
|
FY
2017
|
|
FY
2017
|
|
FY
2016
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$222.7
|
|
$255.8
|
|
$241.7
|
|
(12.9)%
|
|
(7.9)%
|
Gross
margin
|
30.2%
|
|
32.1%
|
|
32.9%
|
|
(190)bps
|
|
(270)bps
|
Operating
margin
|
1.8%
|
|
5.3%
|
|
4.2%
|
|
(350)bps
|
|
(240)bps
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Results
($ in millions)
|
|
Q4
|
|
Q3
|
|
Q4
|
|
Change
|
|
FY
2017
|
|
FY
2017
|
|
FY
2016
|
|
Q/Q
|
|
Y/Y
|
Net
revenue
|
$222.7
|
|
$255.8
|
|
$241.7
|
|
(12.9)%
|
|
(7.9)%
|
Gross
margin
|
32.9%
|
|
34.4%
|
|
34.1%
|
|
(150)bps
|
|
(120)bps
|
Operating
margin
|
9.2%
|
|
12.6%
|
|
11.6%
|
|
(340)bps
|
|
(240)bps
|
|
Net Revenue by
Segment ($ in millions)
|
|
Q4
|
|
%
of
|
|
Q3
|
|
Q4
|
|
Change
|
|
FY
2017
|
|
Net
Revenue
|
|
FY
2017
|
|
FY
2016
|
|
Q/Q
|
|
Y/Y
|
Optical
Communications
|
$186.8
|
|
83.9%
|
|
$216.1
|
|
$201.2
|
|
(13.6)%
|
|
(7.2)%
|
Lasers
|
35.9
|
|
16.1%
|
|
39.7
|
|
40.5
|
|
(9.6)%
|
|
(11.4)%
|
Total
|
$222.7
|
|
100.0%
|
|
$255.8
|
|
$241.7
|
|
(12.9)%
|
|
(7.9)%
|
Financial Overview
– Fiscal Year Ended July 1, 2017
|
|
|
GAAP Results ($ in
millions)
|
|
FY
2017
|
|
FY
2016
|
|
Change
Y/Y
|
Net
revenue
|
$1,001.6
|
|
$903.0
|
|
10.9%
|
Gross
margin
|
31.8%
|
|
30.7%
|
|
110bps
|
Operating
margin
|
4.8%
|
|
1.3%
|
|
350bps
|
|
|
|
|
|
|
|
Non-GAAP Results
($ in millions)
|
|
FY
2017
|
|
FY
2016
|
|
Change
Y/Y
|
Net
revenue
|
$1,001.6
|
|
$903.0
|
|
10.9%
|
Gross
margin
|
34.7%
|
|
33.0%
|
|
170bps
|
Operating
margin
|
12.4%
|
|
9.2%
|
|
320bps
|
|
|
|
|
|
|
|
Net Revenue by
Segment ($ in millions)
|
|
FY
2017
|
|
FY
2016
|
|
Change
Y/Y
|
Optical
Communications
|
$857.8
|
|
$761.3
|
|
12.7%
|
Lasers
|
143.8
|
|
141.7
|
|
1.5%
|
Total
|
$1,001.6
|
|
$903.0
|
|
10.9%
|
The tables above provide comparisons of quarterly results to
prior periods, including sequential quarterly and year-over-year
changes. A reconciliation between GAAP and non-GAAP measures is
contained in this release under the section titled "Use of Non-GAAP
Financial Measures."
Business Outlook
For the fiscal first quarter 2018, the Company expects net
revenue to be in the range of $245 million
to $265 million, non-GAAP operating margin to be 13.0% to
15.0%, and non-GAAP diluted earnings per share to be $0.50 to $0.60 per share, based on approximately
64.2 million shares outstanding on a fully diluted basis.
We have not provided reconciliations from GAAP to non-GAAP
measures for our outlook. A large portion of non-GAAP adjustments,
such as derivative liability adjustments, restructuring,
stock-based compensation, litigation, and other costs and
contingencies unrelated to current and future operations are by
their nature highly volatile and we have low visibility as to the
range that may be incurred in the future. For example, the
unrealized loss on the derivative liabilities for Convertible
Senior Notes and Series A Preferred Stock in our fiscal fourth
quarter of 2017 was a loss of $29.7
million, as compared to a loss of $56.6 million in the fiscal third quarter of
2017. On June 29, 2017, we met the
requirements to account for the conversion option of the
Convertible Senior Notes as equity and the conversion option will
no longer be marked to market. The unrealized loss on the
derivative liability for the conversion option of the Convertible
Senior Notes accounted for $24.2
million and $38.6 million of
the total unrealized loss on the derivative liabilities in the
fiscal fourth and third quarters of 2017, respectively. The Series
A Preferred Stock derivative liability is revalued based on the
fair market value of our common stock on the last day of each
fiscal quarter, which is difficult to predict and subject to
change.
Conference Call
Lumentum will host a conference call on August 9, 2017 at 5:30am
PT/8:30am ET. A live webcast
of the call and the replay will be available on the Lumentum
website at http://investor.lumentum.com through August 16, 2017 at 11:30am
ET. Supporting materials outlining the Company's latest
financial results will be posted on http://investor.lumentum.com
under the "Events and Presentations" section concurrently with this
earnings press release. This press release is being furnished as an
exhibit to a Current Report on Form 8-K with the Securities and
Exchange Commission and will be available at
http://www.sec.gov/.
About Lumentum
Lumentum (NASDAQ: LITE) is a market-leading manufacturer of
innovative optical and photonic products enabling optical
networking and commercial laser customers worldwide. Lumentum's
optical components and subsystems are part of virtually every type
of telecom, enterprise, and data center network. Lumentum's
commercial lasers enable advanced manufacturing techniques and
diverse applications including next-generation 3D sensing
capabilities. Lumentum is headquartered in Milpitas, California with R&D,
manufacturing, and sales offices worldwide. For more
information, visit https://www.lumentum.com/en.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements include our expectations for our markets, including
future product shipments and associated revenue, any anticipation
or guidance as to future financial performance, including future
net revenue, earnings per share, and operating margins, number of
outstanding shares, anticipated sales trends and demand for our
products. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected. Among the factors that could cause actual
results to differ from those contemplated are:
(a) quarter-over-quarter product mix fluctuations which can
materially impact profitability measures due to the broad gross
margin ranges across our portfolio; (b) continued decline of
average selling prices across our businesses; (c) effects of
seasonality; (d) the ability of our suppliers and contract
manufacturers to meet production and delivery requirements to our
forecasted demand; and (e) inherent uncertainty related to
global markets and the effect of such markets on demand for our
products. For more information on these and other risks, please
refer to the "Risk Factors" section included in the Company's
Quarterly Report on Form 10-Q for the fiscal third quarter ended
April 1, 2017 filed with the Securities and Exchange
Commission, and the Company's other filings with the Securities and
Exchange Commission. The forward-looking statements and preliminary
financial results contained in this press release are made as of
the date hereof and the Company assumes no obligation to update
such statements, except as required by applicable law.
Contact Information
Investors: Chris Coldren,
408-404-0606; investor.relations@lumentum.com
Press: Greg Kaufman,
408-546-4593; media@lumentum.com
The following financial tables are presented in accordance with
GAAP, unless otherwise specified.
LUMENTUM HOLDINGS
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in millions,
except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
July 1,
2017
|
|
July 2,
2016
|
|
July 1,
2017
|
|
July 2,
2016
|
Net
revenue
|
$
|
222.7
|
|
|
$
|
241.7
|
|
|
$
|
1,001.6
|
|
|
$
|
903.0
|
|
Cost of
sales
|
154.0
|
|
|
160.5
|
|
|
677.0
|
|
|
618.9
|
|
Amortization of
acquired technologies
|
1.4
|
|
|
1.7
|
|
|
6.5
|
|
|
6.8
|
|
Gross
profit
|
67.3
|
|
|
79.5
|
|
|
318.1
|
|
|
277.3
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and development
|
35.4
|
|
|
36.4
|
|
|
148.3
|
|
|
141.1
|
|
Selling, general and administrative
|
26.0
|
|
|
29.5
|
|
|
110.2
|
|
|
117.3
|
|
Restructuring and related charges
|
2.0
|
|
|
3.5
|
|
|
12.0
|
|
|
7.4
|
|
Total operating
expenses
|
63.4
|
|
|
69.4
|
|
|
270.5
|
|
|
265.8
|
|
Income (loss) from
operations
|
3.9
|
|
|
10.1
|
|
|
47.6
|
|
|
11.5
|
|
Unrealized gain
(loss) on derivative liability
|
(29.7)
|
|
|
4.4
|
|
|
(104.2)
|
|
|
(0.6)
|
|
Interest and other
(expense) income, net
|
(1.8)
|
|
|
(0.1)
|
|
|
(3.2)
|
|
|
(1.2)
|
|
Income (loss) before
income taxes
|
(27.6)
|
|
|
14.4
|
|
|
(59.8)
|
|
|
9.7
|
|
Provision for
(benefit from) income taxes
|
27.3
|
|
|
0.1
|
|
|
42.7
|
|
|
0.4
|
|
Net income
(loss)
|
(54.9)
|
|
|
14.3
|
|
|
(102.5)
|
|
|
9.3
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.90)
|
|
|
$
|
0.24
|
|
|
$
|
(1.69)
|
|
|
$
|
0.16
|
|
Diluted
|
$
|
(0.90)
|
|
|
$
|
0.23
|
|
|
$
|
(1.69)
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
Items reconciling net
income (loss) to net income (loss) available to common
stockholders:
|
|
|
|
|
|
|
|
Cumulative dividends
on Series A preferred stock
|
(0.3)
|
|
|
(0.2)
|
|
|
(0.9)
|
|
|
(0.8)
|
|
Adjustment for Series
A preferred stock redemption value
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.7)
|
|
Net income (loss)
available to common stockholders
|
$
|
(55.2)
|
|
|
$
|
14.1
|
|
|
$
|
(103.4)
|
|
|
$
|
(3.2)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common stockholders per share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.90)
|
|
|
$
|
0.24
|
|
|
$
|
(1.71)
|
|
|
$
|
(0.05)
|
|
Diluted
|
$
|
(0.90)
|
|
|
$
|
0.23
|
|
|
$
|
(1.71)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
Basic
|
61.3
|
|
|
59.4
|
|
|
60.6
|
|
|
59.1
|
|
Diluted net income
per share
|
61.3
|
|
|
61.8
|
|
|
60.6
|
|
|
61.2
|
|
Diluted net income
available to common stockholders
|
61.3
|
|
|
61.8
|
|
|
60.6
|
|
|
59.1
|
|
LUMENTUM HOLDINGS
INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(in millions,
except share and per share data)
|
(unaudited)
|
|
|
July 1,
2017
|
|
July 2,
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
272.9
|
|
|
$
|
157.1
|
|
Short-term
investments
|
282.4
|
|
|
—
|
|
Accounts receivable,
net
|
166.3
|
|
|
170.5
|
|
Inventories
|
145.2
|
|
|
100.6
|
|
Prepayments and other
current assets
|
63.5
|
|
|
61.3
|
|
Total current
assets
|
930.3
|
|
|
489.5
|
|
Property, plant and
equipment, net
|
273.5
|
|
|
183.4
|
|
Goodwill and
intangibles, net
|
21.5
|
|
|
19.9
|
|
Deferred income
taxes, net
|
3.9
|
|
|
31.9
|
|
Other non-current
assets
|
3.7
|
|
|
1.6
|
|
Total
assets
|
$
|
1,232.9
|
|
|
$
|
726.3
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
114.8
|
|
|
$
|
118.3
|
|
Accrued payroll and
related expenses
|
27.5
|
|
|
26.5
|
|
Income taxes
payable
|
0.7
|
|
|
1.9
|
|
Accrued
expenses
|
19.3
|
|
|
14.9
|
|
Other current
liabilities
|
21.9
|
|
|
12.1
|
|
Total current
liabilities
|
184.2
|
|
|
173.7
|
|
Convertible
note
|
317.5
|
|
|
—
|
|
Derivative
liability
|
51.6
|
|
|
10.3
|
|
Other non-current
liabilities
|
25.0
|
|
|
9.1
|
|
Total
liabilities
|
578.3
|
|
|
193.1
|
|
|
|
|
|
Redeemable
convertible preferred stock:
|
|
|
|
Non-controlling interest redeemable convertible Series A preferred
stock, $0.001 par value, 10,000,000 authorized shares; 35,805
shares issued and outstanding as of July 1, 2017 and July 2,
2016
|
35.8
|
|
|
35.8
|
|
Total redeemable convertible
preferred stock
|
35.8
|
|
|
35.8
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value, 990,000,000 authorized shares, 61,476,103 and 59,580,596
shares issued and outstanding as of July 1, 2017 and July 2, 2016,
respectively
|
0.1
|
|
|
0.1
|
|
Additional paid-in
capital
|
694.5
|
|
|
467.7
|
|
Retained
earnings
|
(83.2)
|
|
|
20.2
|
|
Accumulated other
comprehensive income
|
7.4
|
|
|
9.4
|
|
Total stockholders'
equity
|
618.8
|
|
|
497.4
|
|
Total liabilities and
stockholders' equity
|
$
|
1,232.9
|
|
|
$
|
726.3
|
|
Use of Non-GAAP Financial Measures
In this press release, Lumentum provides investors with gross
margin, operating margin, net income, and net income (loss) per
share on a non-GAAP basis. Lumentum believes this non-GAAP
financial information provides additional insight into the
Company's on-going performance and has therefore chosen to provide
this information to investors for a more consistent basis of
comparison and to help them evaluate the results of the Company's
on-going operations and enable more meaningful period to period
comparisons. Specifically, the Company believes that providing this
information allows investors to better understand the Company's
financial performance and, importantly, to evaluate the efficacy of
the methodology and information used by management to evaluate and
measure such operating performance. However, these measures
may be different from non-GAAP measures used by other companies,
limiting their usefulness for comparison purposes. The non-GAAP
financial measures used in this press release should not be
considered in isolation from measures of financial performance
prepared in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. In particular, many of
the adjustments to our GAAP financial measures reflect the
exclusion of items that are recurring and will be reflected in our
financial results for the foreseeable future. Further, these
non-GAAP financial measures may not be comparable to similarly
titled measurements reported by other companies.
Non-GAAP gross margin, non-GAAP operating margin, non-GAAP net
income, and non-GAAP net income per share, Adjusted EBITDA,
non-GAAP gross profit, non-GAAP operating income, non-GAAP income
(loss) before income taxes and non-GAAP expenses exclude (i)
workforce related charges such as severance, retention bonuses and
employee relocation costs related to formal restructuring plans,
(ii) costs for facilities not required for ongoing operations, and
costs related to the relocation of certain equipment from these
facilities and/or contract manufacturer facilities, (iii)
stock-based compensation, (iv) amortization of intangibles,
(v)amortization of acquired developed technologies, (vi) non-cash
interest expense, (vii) unrealized loss on derivative liabilities,
and (viii) warranty charges related to our vendor quality issues
with expected future recoveries and (ix) other charges comprising
mainly of one-time provision for excess and obsolete inventory,
acquisition, integration, litigation and other costs and
contingencies unrelated to current and future operations including
post-separation activities such as small site consolidations,
reorganizations, insourcing or outsourcing of activities, severance
related costs and transition related costs for the separation from
Viavi Solutions Inc. (formerly JDS Uniphase Corporation) on
July 31, 2015. In the fiscal third
quarter of 2017, the Company issued $450
million in aggregate principal amount of convertible senior
notes (the "convertible notes"). During the fourth quarter of 2017,
prior to the satisfaction of certain conditions set forth more
fully in the indenture governing the convertible notes (the "TMA
settlement condition"), the Company would have been required to
satisfy its conversion obligation solely in cash. Accordingly, the
conversion option of the convertible notes was accounted for as a
derivative liability under GAAP and thus, fluctuated with the fair
market value of the stock price until the Company satisfied the TMA
settlement condition on June 29,
2017. As of the last day of the fourth quarter of 2017, the
Company met the requirements to account for the conversion option
as equity and the conversion option will no longer be marked to
market. Management does not believe that these non-GAAP items are
reflective of the Company's underlying operating performance. The
presentation of these and other similar items in Lumentum's
non-GAAP financial results should not be interpreted as implying
that these items are non-recurring, infrequent or unusual.
A quantitative reconciliation between GAAP and non-GAAP
financial data with respect to historical periods is included in
the supplemental financial table attached to this press
release.
LUMENTUM HOLDINGS
INC.
|
RECONCILIATION OF
GAAP MEASURES TO NON-GAAP MEASURES
|
(in millions,
except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
July 1,
2017
|
|
July 2,
2016
|
|
July 1,
2017
|
|
July 2,
2016
|
|
|
|
|
|
|
|
|
Gross profit on
GAAP basis
|
$
|
67.3
|
|
|
$
|
79.5
|
|
|
$
|
318.1
|
|
|
$
|
277.3
|
|
Stock-based
compensation
|
1.5
|
|
|
1.2
|
|
|
7.5
|
|
|
6.1
|
|
Other charges related
to non-recurring activities
|
3.0
|
|
|
—
|
|
|
15.1
|
|
|
7.5
|
|
Amortization of
acquired developed technologies
|
1.4
|
|
|
1.7
|
|
|
6.5
|
|
|
6.8
|
|
Gross profit on
non-GAAP basis
|
$
|
73.2
|
|
|
$
|
82.4
|
|
|
$
|
347.2
|
|
|
$
|
297.7
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
$
|
35.4
|
|
|
$
|
36.4
|
|
|
$
|
148.3
|
|
|
$
|
141.1
|
|
Stock-based
compensation
|
(2.8)
|
|
|
(2.3)
|
|
|
(11.6)
|
|
|
(9.0)
|
|
Other charges related
to non-recurring activities
|
(0.3)
|
|
|
(0.1)
|
|
|
(1.0)
|
|
|
(0.7)
|
|
Research and
development on non-GAAP basis
|
$
|
32.3
|
|
|
$
|
34.0
|
|
|
$
|
135.7
|
|
|
$
|
131.4
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative on GAAP basis
|
$
|
26.0
|
|
|
$
|
29.5
|
|
|
$
|
110.2
|
|
|
$
|
117.3
|
|
Stock-based
compensation
|
(3.5)
|
|
|
(2.5)
|
|
|
(13.6)
|
|
|
(11.8)
|
|
Other charges related
to non-recurring activities
|
(2.0)
|
|
|
(6.5)
|
|
|
(9.1)
|
|
|
(21.9)
|
|
Amortization of
acquired developed technologies
|
—
|
|
|
(0.1)
|
|
|
(0.3)
|
|
|
(0.4)
|
|
Selling, general
and administrative on non-GAAP basis
|
$
|
20.5
|
|
|
$
|
20.4
|
|
|
$
|
87.2
|
|
|
$
|
83.2
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations on GAAP basis
|
$
|
3.9
|
|
|
$
|
10.1
|
|
|
$
|
47.6
|
|
|
$
|
11.5
|
|
Stock-based
compensation
|
7.8
|
|
|
6.0
|
|
|
32.7
|
|
|
26.9
|
|
Other charges related
to non-recurring activities
|
5.3
|
|
|
6.6
|
|
|
25.2
|
|
|
30.1
|
|
Amortization of
acquired developed technologies
|
1.4
|
|
|
1.8
|
|
|
6.8
|
|
|
7.2
|
|
Restructuring and
related charges
|
2.0
|
|
|
3.5
|
|
|
12.0
|
|
|
7.4
|
|
Income (loss) from
operations on non-GAAP basis
|
$
|
20.4
|
|
|
$
|
28.0
|
|
|
$
|
124.3
|
|
|
$
|
83.1
|
|
|
|
|
|
|
|
|
|
Interest and other
(expense) income, net on GAAP basis
|
$
|
(1.8)
|
|
|
$
|
(0.1)
|
|
|
$
|
(3.2)
|
|
|
$
|
(1.2)
|
|
Non-cash other
income
|
(1.4)
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
Effective interest
expense on convertible debt
|
4.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Interest and other
(expense) income, net on non-GAAP basis
|
$
|
0.9
|
|
|
$
|
(0.1)
|
|
|
$
|
0.2
|
|
|
$
|
(1.2)
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes on GAAP basis
|
$
|
(27.6)
|
|
|
$
|
14.4
|
|
|
$
|
(59.8)
|
|
|
$
|
9.7
|
|
Stock-based
compensation
|
7.8
|
|
|
6.0
|
|
|
32.7
|
|
|
26.9
|
|
Other charges related
to non-recurring activities
|
5.3
|
|
|
6.6
|
|
|
25.2
|
|
|
30.1
|
|
Amortization of
acquired developed technologies
|
1.4
|
|
|
1.8
|
|
|
6.8
|
|
|
7.2
|
|
Restructuring and
related charges
|
2.0
|
|
|
3.5
|
|
|
12.0
|
|
|
7.4
|
|
Non-cash other
income
|
(1.4)
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
Effective interest
expense on convertible debt
|
4.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Unrealized (gain)
loss on derivative liability
|
29.7
|
|
|
(4.4)
|
|
|
104.2
|
|
|
0.6
|
|
Income (loss)
before income taxes on non-GAAP basis
|
$
|
21.3
|
|
|
$
|
27.9
|
|
|
$
|
124.5
|
|
|
$
|
81.9
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes on GAAP basis
|
$
|
27.3
|
|
|
$
|
0.1
|
|
|
$
|
42.7
|
|
|
$
|
0.4
|
|
Impact of non-GAAP
income tax (benefit) expense
|
(31.0)
|
|
|
2.4
|
|
|
(40.6)
|
|
|
2.6
|
|
Provision
(benefit) for income taxes on non-GAAP basis
|
$
|
(3.7)
|
|
|
$
|
2.5
|
|
|
$
|
2.1
|
|
|
$
|
3.0
|
|
|
|
|
|
|
|
|
|
Net income (loss)
on GAAP basis
|
$
|
(54.9)
|
|
|
$
|
14.3
|
|
|
$
|
(102.5)
|
|
|
$
|
9.3
|
|
Stock-based
compensation
|
7.8
|
|
|
6.0
|
|
|
32.7
|
|
|
26.9
|
|
Other charges related
to non-recurring activities
|
5.3
|
|
|
6.6
|
|
|
25.2
|
|
|
30.1
|
|
Amortization of
acquired developed technologies
|
1.4
|
|
|
1.8
|
|
|
6.8
|
|
|
7.2
|
|
Restructuring and
related charges
|
2.0
|
|
|
3.5
|
|
|
12.0
|
|
|
7.4
|
|
Non-cash other
income
|
(1.4)
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
Effective interest
expense on convertible debt
|
4.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Unrealized (gain)
loss on derivative liability
|
29.7
|
|
|
(4.4)
|
|
|
104.2
|
|
|
0.6
|
|
Impact of non-GAAP
income tax (benefit) expense
|
31.0
|
|
|
(2.4)
|
|
|
40.6
|
|
|
(2.6)
|
|
Net income on
non-GAAP basis
|
$
|
25.0
|
|
|
$
|
25.4
|
|
|
$
|
122.4
|
|
|
$
|
78.9
|
|
|
|
|
|
|
|
|
|
Net income per
share on non-GAAP basis
|
$
|
0.39
|
|
|
$
|
0.41
|
|
|
$
|
1.94
|
|
|
$
|
1.29
|
|
|
|
|
|
|
|
|
|
Shares used in per
share calculation - diluted on GAAP basis
|
61.3
|
|
|
61.8
|
|
|
60.6
|
|
|
61.2
|
|
Non-GAAP adjustment
(a)
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Shares used in per
share calculation - diluted on non-GAAP basis
|
63.8
|
|
|
61.8
|
|
|
63.1
|
|
|
61.2
|
|
|
(a) This adjustment
represents weighted-average potentially dilutive securities
excluded from the computation of diluted net loss per share
attributable to common stockholders on a GAAP basis because the
effect would have been antidilutive. This adjustment amount is
added for the computation of diluted net income per share on a
non-GAAP basis as we had net income on a non-GAAP basis for all
periods presented.
|
LUMENTUM HOLDINGS
INC.
|
RECONCILIATION OF
GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
|
(in
millions)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
July 1,
2017
|
|
July 2,
2016
|
|
July 1,
2017
|
|
July 2,
2016
|
GAAP net income
(loss)
|
$
|
(54.9)
|
|
|
$
|
14.3
|
|
|
$
|
(102.5)
|
|
|
$
|
9.3
|
|
Interest and other
expense (income), net
|
1.8
|
|
|
0.1
|
|
|
3.2
|
|
|
1.2
|
|
Provision for income
taxes
|
27.3
|
|
|
0.1
|
|
|
42.7
|
|
|
0.4
|
|
Depreciation
|
15.1
|
|
|
12.3
|
|
|
54.2
|
|
|
47.4
|
|
Amortization
|
1.4
|
|
|
1.8
|
|
|
6.8
|
|
|
7.2
|
|
EBITDA
|
(9.3)
|
|
|
28.6
|
|
|
4.4
|
|
|
65.5
|
|
Restructuring and
related charges
|
2.0
|
|
|
3.5
|
|
|
12.0
|
|
|
7.7
|
|
Stock-based
compensation
|
7.8
|
|
|
6.0
|
|
|
32.7
|
|
|
26.9
|
|
Other charges related
to non-recurring activities
|
5.3
|
|
|
6.6
|
|
|
25.2
|
|
|
29.8
|
|
Unrealized
(gain) loss on derivative liability
|
29.7
|
|
|
(4.4)
|
|
|
104.2
|
|
|
0.6
|
|
Adjusted
EBITDA
|
$
|
35.5
|
|
|
$
|
40.3
|
|
|
$
|
178.5
|
|
|
$
|
130.5
|
|
View original
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SOURCE Lumentum