Lumentum Announces Fiscal Fourth Quarter And Full Year 2018 Results
MILPITAS, Calif., Aug. 8, 2018 /PRNewswire/ -- Lumentum Holdings Inc. ("Lumentum" or the "Company") today reported results for its fiscal fourth quarter and full year ended June 30, 2018.
Net revenue for the fiscal fourth quarter 2018 was $301.1 million, with GAAP net income attributable to common stockholders of $25.7 million, or $0.40 per diluted share. Net revenue for fiscal third quarter 2018 was $298.8 million, with GAAP net income attributable to common stockholders of $2.4 million, or $0.04 per diluted share. Net revenue for the fiscal fourth quarter 2017 was $222.7 million, with GAAP net loss attributable to common stockholders of $(55.2) million, or $(0.90) per diluted share.
Non-GAAP net income for the fiscal fourth quarter 2018 was $61.6 million, or $0.95 per diluted share. Non-GAAP net income for fiscal third quarter 2018 was $50.6 million, or $0.78 per diluted share. Non-GAAP net income for the fiscal fourth quarter 2017 was $25.0 million, or $0.39 per diluted share.
The Company held $711.5 million in total cash and short-term investments at the end of the fiscal fourth quarter 2018.
Net revenue for fiscal year 2018 was $1,247.7 million, with GAAP net income attributable to common stockholders of $241.5 million, or $3.82 per diluted share. Net revenue for fiscal year 2017 was $1,001.6 million, with GAAP net loss attributable to common stockholders of $(103.4) million, or $(1.71) per diluted share.
Non-GAAP net income for fiscal year 2018 was $247.8 million or $3.82 per diluted share. Non-GAAP net income for fiscal year 2017 was $122.4 million, or $1.94 per diluted share.
"Record revenues in TrueFlex(®) ROADMs, commercial lasers, and industrial pump lasers drove strong fourth quarter results, capping off a record fiscal 2018 that saw 25% year over year growth and 19.7% operating margins," said Alan Lowe, President and CEO, "Our strategy of investing in differentiated products addressing multiple growing end-markets critically dependent on photonics drove our strong fiscal 2018 results and positions us well for the future."
Financial Overview - Fiscal Fourth Quarter Ended June 30, 2018
GAAP Results ($ in millions)
Q4 Q3 Q4 Change
FY 2018 FY 2018 FY 2017 Q/Q Y/Y
------- ------- ------- --- ---
Net revenue $301.1 $298.8 $222.7 0.8% 35.2%
Gross
margin 31.7% 32.5% 30.2% (80)bps 150bps
Operating
margin 6.9% 8.5% 1.8% (160)bps 510bps
Non-GAAP Results ($ in millions)
Q4 Q3 Q4 Change
FY 2018 FY 2018 FY 2017 Q/Q Y/Y
------- ------- ------- --- ---
Net revenue $301.1 $298.8 $222.7 0.8% 35.2%
Gross
margin 37.2% 36.3% 32.9% 90bps 430bps
Operating
margin 17.8% 16.5% 9.2% 130bps 860bps
Net Revenue by Segment ($ in millions)
Q4 % of Q3 Q4 Change
FY 2018 Net Revenue FY 2018 FY 2017 Q/Q Y/Y
------- ----------- ------- ------- --- ---
Optical Communications $244.9 81.3% $246.3 $186.8 (0.6)% 31.1%
Lasers 56.2 18.7% 52.5 35.9 7.0% 56.5%
Total $301.1 100.0% $298.8 $222.7 0.8% 35.2%
====== ====== ======
Financial Overview - Fiscal Year Ended June 30, 2018
GAAP Results ($ in millions)
FY 2018 FY 2017 Change Y/Y
------- ------- ----------
Net revenue $1,247.7 $1,001.6 24.6%
Gross margin 34.6% 31.8% 280bps
Operating
margin 11.2% 4.8% 640bps
Non-GAAP Results ($ in millions)
FY 2018 FY 2017 Change Y/Y
------- ------- ----------
Net revenue $1,247.7 $1,001.6 24.6%
Gross margin 38.9% 34.7% 420bps
Operating
margin 19.7% 12.4% 730bps
Net Revenue by Segment ($ in millions)
FY 2018 FY 2017 Change Y/Y
------- ------- ----------
Optical
Communications $1,059.2 $857.8 23.5%
Lasers 188.5 143.8 31.1%
-----
Total $1,247.7 $1,001.6 24.6%
======== ======== ====
The tables above provide comparisons of quarterly and annual 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
The Company expects the following for the fiscal first quarter 2019:
-- Net Revenue to be in the range of $340 million to $360 million
-- Non-GAAP Operating margin of 19% to 21%
-- Non-GAAP diluted earnings per share of $0.90 to $1.10
Note: Earnings per share based on approximately 65.5 million shares outstanding on a fully diluted basis
Our projection of 65.5 million shares outstanding does not include the potentially dilutive effect of the convertible notes, as we have the ability and intent to settle the face value in cash; and therefore, we use the treasury stock method for calculating the dilutive impact of the 2024 Notes. The notes will have an impact on our diluted earnings per share when the average price of our common stock exceeds the conversion price of $60.62. Our guidance does not include results from Oclaro or shares issued in connection with the closing of our acquisition of Oclaro as we are unable to predict the timing of the closing.
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 charges, stock-based compensation, litigation, acquisition related costs, non-cash income tax expense and credits, 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, in the fiscal second quarter of 2018, we had a credit of $207.0 million primarily related to a release of a U.S. valuation allowance, which was offset by a write-down of deferred tax assets in the amount of $83.0 million due to the lower corporate tax rate enacted under the 2017 "Tax Cuts and Jobs Act" reform.
Conference Call
Lumentum will host a conference call on August 8, 2018 at 5:30 am PT/8:30 am ET. A live webcast of the call and the replay will be available on the Lumentum website at http://investor.lumentum.com through August 15, 2018 at 11:59 pm 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, our proposed acquisition of Oclaro, including the anticipated closing date, our investment strategy, and anticipated trends in our markets. 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; (e) inherent uncertainty related to global markets and the effect of such markets on demand for our products; (f) changes in customer demand; (g) our ability to attract and retain new customers, particularly in the 3D sensing market; (h) the risk that the Oclaro transaction does not close, due to the failure of one or more conditions to closing or the failure of the businesses (including personnel) to be integrated successfully after closing; (i) the risk that synergies and non-GAAP earnings accretion will not be realized or realized to the extent anticipated; (j) uncertainty as to the market value of the Lumentum merger consideration to be paid in the merger; (k) the risk that required governmental approvals of the merger (including China antitrust approvals) will not be obtained or that such approvals will be delayed beyond current expectations; (l) the risk that following this transaction, Lumentum's financing or operating strategies will not be successful; (m) litigation in respect of either company or the merger; and (n) disruption from the merger making it more difficult to maintain customer, supplier, key personnel and other strategic relationships. 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 March 31, 2018 filed with the Securities and Exchange Commission, in the S-4 filed by Lumentum with the Securities and Exchange Commission on May 17, 2018, as amended on May 31, 2018, in connection with the Oclaro transaction and in the documents which are incorporated by reference therein, and in the Company's other filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2018 which will be filed within sixty days of our fiscal year end. 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.
No Offer or Solicitation
This communication is for informational purposes only and not intended to and does not constitute an offer to subscribe for, buy or sell, the solicitation of an offer to subscribe for, buy or sell or an invitation to subscribe for, buy or sell any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction between Lumentum Holdings, Inc. ("Lumentum") and Oclaro, Inc. ("Oclaro"), Lumentum filed a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC"), which includes a proxy statement of Oclaro that also constitutes a prospectus of Lumentum. The registration statement was declared effective by the SEC on May 31, 2018, and Oclaro commenced mailing the definitive joint proxy statement/prospectus to stockholders of Oclaro on or about June 4, 2018, and the special meeting of the stockholders of Oclaro was held on July 10, 2018.
LUMENTUM AND OCLARO URGE INVESTORS AND SECURITY HOLDERS TO READ THE DEFINITIVE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Investors and security holders may obtain these materials and other documents filed with the Securities and Exchange Commission free of charge at the Securities and Exchange Commission's website, www.sec.gov. Copies of documents filed with the Securities and Exchange Commission by Lumentum (when they become available) may be obtained free of charge on Lumentum's website at www.lumentum.com or by directing a written request to Lumentum Holdings Inc., Investor Relations, 400 North McCarthy Boulevard, Milpitas, CA 95035. Copies of documents filed with the Securities and Exchange Commission by Oclaro (when they become available) may be obtained free of charge on Oclaro's website at www.oclaro.com or by directing a written request to Oclaro, Inc. Investor Relations, 225 Charcot Avenue, San Jose, CA 95131.
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
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017
------------- ------------ ------------- ------------
Net revenue $301.1 $222.7 $1,247.7 $1,001.6
Cost of sales 204.8 154.0 812.4 677.0
Amortization of
acquired developed
technologies 0.8 1.4 3.2 6.5
Gross profit 95.5 67.3 432.1 318.1
---- ---- ----- -----
Operating expenses:
Research and
development 38.5 35.4 156.8 148.3
Selling, general and
administrative 32.7 26.0 128.2 110.2
Restructuring and
related charges 3.4 2.0 7.2 12.0
Total operating
expenses 74.6 63.4 292.2 270.5
Income from
operations 20.9 3.9 139.9 47.6
Unrealized gain
(loss) on
derivative
liabilities 7.8 (29.7) (0.8) (104.2)
Interest and other
(expense) income,
net (1.0) (1.8) (9.7) (3.2)
Income (loss) before
income taxes 27.7 (27.6) 129.4 (59.8)
Provision for
(benefit from)
income taxes (5.8) 27.3 (118.7) 42.7
Net income (loss) 33.5 (54.9) 248.1 (102.5)
==== ===== ===== ======
Items reconciling net income (loss)
to net income (loss) attributable
to common stockholders:
Cumulative dividends
on Series A
Preferred Stock (0.2) (0.3) (0.9) (0.9)
Earnings allocated
to Series A
Preferred Stock (0.8) $ - (5.7) $ -
Net income (loss)
attributable to
common stockholders
-Basic $32.5 $(55.2) $241.5 $(103.4)
===== ====== ====== =======
Add: Earnings
allocated to Series
A Preferred Stock 0.8 - - -
Add/Less:
Unrealized (gain)
loss on derivative
liability on Series
A Preferred Stock (7.8) - - -
Add: Cumulative
dividends on Series
A Preferred Stock 0.2 - - -
Net income (loss)
attributable to
common stockholders
-Diluted (a) $25.7 $(55.2) $241.5 $(103.4)
===== ====== ====== =======
Net income (loss) per share
attributable to common
stockholders:
Basic $0.52 $(0.90) $3.88 $(1.71)
Diluted $0.40 $(0.90) $3.82 $(1.71)
Shares used to compute net income
(loss) per share attributable to
common stockholders:
Basic 62.7 61.3 62.3 60.6
Diluted 65.0 61.3 63.3 60.6
(a) For the three months ended
June 30, 2018, our diluted
earnings per share attributable
to common stockholders is
calculated using the "if-
converted" method because it is
more dilutive, whereas for the
twelve months ended June 30,
2018, our diluted earnings per
share attributable to common
stockholders is calculated
using "two-class" method.
LUMENTUM HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
(unaudited)
June 30, 2018 July 1, 2017
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $397.3 $272.9
Short-term investments 314.2 282.4
Accounts receivable, net 197.1 166.3
Inventories 153.6 145.2
Prepayments and other current
assets 65.0 63.5
Total current assets 1,127.2 930.3
Property, plant and equipment,
net 306.9 273.5
Goodwill and intangibles, net 18.3 21.5
Deferred income taxes, net 125.6 3.9
Other non-current assets 3.5 3.7
Total assets $1,581.5 $1,232.9
======== ========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK, AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $126.5 $114.8
Accrued payroll and related
expenses 31.5 27.5
Accrued expenses 33.9 19.3
Other current liabilities 22.1 22.6
----
Total current liabilities 214.0 184.2
Convertible notes 334.2 317.5
Derivative liability 52.4 51.6
Other non-current liabilities 19.0 25.0
Total liabilities 619.6 578.3
----- -----
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 June 30,
2018 and July 1, 2017 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,
62,790,087 and 61,476,103
shares issued and outstanding
as of June 30, 2018 and July
1, 2017, respectively 0.1 0.1
Additional paid-in capital 753.2 694.5
Retained earnings 166.4 (83.2)
Accumulated other comprehensive
income 6.4 7.4
Total stockholders' equity 926.1 618.8
===== =====
Total liabilities, redeemable
convertible preferred stock,
and stockholders' equity $1,581.5 $1,232.9
======== ========
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) stock-based compensation,(ii) acquisition related costs, (iii) other charges comprised mainly of set-up costs of our Thailand facility, including costs of transferring product lines to Thailand, as well as inventory write-downs due to cancelled programs and other costs and contingencies unrelated to current and future operations, (iv) amortization of acquired developed technologies, (v) workforce related charges such as severance, retention bonuses and employee relocation costs related to formal restructuring plans, (vi) non-cash interest expense, (vii) unrealized gain (loss) on derivative liability, (viii) non-cash income tax provision impacts, for example, a release of a U.S. valuation allowance, and the write down of deferred tax assets due to the 2017 Tax Cuts and Jobs Act. 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
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017
------------- ------------ ------------- ------------
Gross profit on GAAP
basis $95.5 $67.3 $432.1 $318.1
Stock-based compensation 3.1 1.5 12.6 7.5
Other charges related to
non-recurring
activities (a) 12.7 3.0 37.2 15.1
Amortization of acquired
developed technologies 0.8 1.4 3.2 6.5
--- --- --- ---
Gross profit on non-GAAP
basis $112.1 $73.2 $485.1 $347.2
====== ===== ====== ======
Research and development
on GAAP basis $38.5 $35.4 $156.8 $148.3
Stock-based compensation (3.7) (2.8) (14.2) (11.6)
Other charges related to
non-recurring
activities (0.6) (0.3) (2.0) (1.0)
Research and development
on non-GAAP basis $34.2 $32.3 $140.6 $135.7
===== ===== ====== ======
Selling, general and
administrative on GAAP
basis $32.7 $26.0 $128.2 $110.2
Stock-based compensation (4.9) (3.5) (20.0) (13.6)
Acquisition related costs (2.1) - (4.8) -
Other charges related to
non-recurring
activities (1.4) (2.0) (5.1) (9.1)
Amortization of acquired
developed technologies - - - (0.3)
Selling, general and
administrative on non-
GAAP basis $24.3 $20.5 $98.3 $87.2
===== ===== ===== =====
Income from operations on
GAAP basis $20.9 $3.9 $139.9 $47.6
Stock-based compensation 11.7 7.8 46.8 32.7
Acquisition related costs 2.1 - 4.8 -
Other charges related to
non-recurring
activities (a) 14.7 5.3 44.3 25.2
Amortization of acquired
developed technologies 0.8 1.4 3.2 6.8
Restructuring and related
charges 3.4 2.0 7.2 12.0
Income from operations on
non-GAAP basis $53.6 $20.4 $246.2 $124.3
===== ===== ====== ======
Interest and other
(expense) income, net on
GAAP basis $(1.0) $(1.8) $(9.7) $(3.2)
Non-cash other (income)
expense - (1.4) (0.1) (1.7)
Effective interest
expense on convertible
notes 4.3 4.1 16.7 5.1
Interest and other
(expense) income, net on
non-GAAP basis $3.3 $0.9 $6.9 $0.2
==== ==== ==== ====
Income (loss) before
income taxes on GAAP
basis $27.7 $(27.6) $129.4 $(59.8)
Stock-based compensation 11.7 7.8 46.8 32.7
Acquisition related costs 2.1 - 4.8 -
Other charges related to
non-recurring
activities (a) 14.7 5.3 44.3 25.2
Amortization of acquired
developed technologies 0.8 1.4 3.2 6.8
Restructuring and related
charges 3.4 2.0 7.2 12.0
Non-cash other (income)
expense - (1.4) (0.1) (1.7)
Effective interest
expense on convertible
notes 4.3 4.1 16.7 5.1
Unrealized (gain) loss on
derivative liabilities (7.8) 29.7 0.8 104.2
Income before income
taxes on non-GAAP basis $56.9 $21.3 $253.1 $124.5
===== ===== ====== ======
Provision for (benefit
from) income taxes on
GAAP basis $(5.8) $27.3 $(118.7) $42.7
Income tax adjustments
(b) 1.1 (31.0) 124.0 (40.6)
Provision for (benefit
from) income taxes on
non-GAAP basis $(4.7) $(3.7) $5.3 $2.1
===== ===== ==== ====
Net income (loss) on GAAP
basis $33.5 $(54.9) $248.1 $(102.5)
Stock-based compensation 11.7 7.8 46.8 32.7
Acquisition related costs 2.1 - 4.8 -
Other charges related to
non-recurring
activities (a) 14.7 5.3 44.3 25.2
Amortization of acquired
developed technologies 0.8 1.4 3.2 6.8
Restructuring and related
charges 3.4 2.0 7.2 12.0
Non-cash other (income)
expense - (1.4) (0.1) (1.7)
Effective interest
expense on convertible
notes 4.3 4.1 16.7 5.1
Unrealized (gain) loss on
derivative liabilities (7.8) 29.7 0.8 104.2
Income tax adjustments
(b) (1.1) 31.0 (124.0) 40.6
Net income on non-GAAP
basis $61.6 $25.0 $247.8 $122.4
===== ===== ====== ======
Net income per share on
non-GAAP basis $0.95 $0.39 $3.82 $1.94
Shares used in per share
calculation -diluted on
GAAP basis 65.0 61.3 63.3 60.6
Non-GAAP adjustment (c) - 1.0 - 1.0
Effect of diluted
securities from Series A
Preferred Stock(d) - 1.5 1.5 1.5
Shares used in per share
calculation - diluted
on non-GAAP basis 65.0 63.8 64.8 63.1
==== ==== ==== ====
(a) The increase during the
fiscal year ended June 30, 2018
primarily relates to set-up
costs of our Thailand facility,
including costs of transferring
product lines to Thailand, as
well as inventory write-downs
due to cancelled programs.
(b) The change during the fiscal
year ended June 30, 2018 is
primarily attributable to a
credit of $207.0 million
related to a release of a U.S.
valuation allowance, which was
offset by the write down of
deferred tax assets due to the
2017 "Tax Cuts and Jobs Act"
reform in the amount of $83.0
million.
(c) This adjustment represents
weighted-average potentially
dilutive securities from our
stock-based benefit plans
excluded from the computation
of diluted net loss per share
attributable to common
stockholders on a GAAP basis
because the effect would have
been anti-dilutive. This
adjustment amount is added for
the computation of diluted net
income per share on a non-GAAP
basis as we had a net income on
a non-GAAP basis.
(d) 1.5 million shares related
to the potential conversion of
the Series A Preferred Stock
were added to the calculation
of diluted shares available on
a non-GAAP basis because their
inclusion results in more
dilutive earnings per share.
LUMENTUM HOLDINGS INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
(in millions)
(unaudited)
Three Months Ended Twelve Months Ended
June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017
------------- ------------ ------------- ------------
GAAP net income (loss) $33.5 $(54.9) $248.1 $(102.5)
Interest and other
expense (income), net 1.0 1.8 9.7 3.2
Provision for (benefit
from) income taxes
(b) (5.8) 27.3 (118.7) 42.7
Depreciation 20.7 15.1 74.0 54.2
Amortization of
acquired developed
technologies 0.8 1.4 3.2 6.8
---
EBITDA 50.2 (9.3) 216.3 4.4
Restructuring and
related charges 3.4 2.0 7.2 12.0
Stock-based
compensation 11.7 7.8 46.8 32.7
Acquisition related
costs 2.1 - 4.8 -
Other charges related
to non-recurring
activities (a) 14.7 5.3 44.3 25.2
Unrealized (gain) loss
on derivative
liabilities (7.8) 29.7 0.8 104.2
---- ---- --- -----
Adjusted EBITDA $74.3 $35.5 $320.2 $178.5
===== ===== ====== ======
(a) The increase during the
fiscal year ended June 30,
2018 primarily relates to
set-up costs of our Thailand
facility, including costs of
transferring product lines to
Thailand, as well as
inventory write-downs due to
cancelled programs.
(b) The change during the
fiscal year ended June 30,
2018 is primarily
attributable to a credit of
$207.0 million related to a
release of a U.S. valuation
allowance, which was offset
by the write down of deferred
tax assets due to the 2017
"Tax Cuts and Jobs Act"
reform in the amount of $83.0
million.
View original content:http://www.prnewswire.com/news-releases/lumentum-announces-fiscal-fourth-quarter-and-full-year-2018-results-300693936.html
SOURCE Lumentum
