6 April 2023
Lumentum reduces March-quarter revenue guidance from $430-460m to $380-384m
For its fiscal third-quarter 2023 (ended 1 April), Lumentum Holdings Inc of San Jose, CA, USA (which designs and makes optical and photonic products for optical networks and lasers for industrial and consumer markets) has reduced its revenue guidance from the prior $430-460m to $380-384m (down on $395.4m a year previously).
“Late in our fiscal 2023 third quarter, a network equipment manufacturer who represented more than 10% of our fiscal second-quarter revenue informed us that, due to their inventory management, they would not take the shipments we had originally projected for the quarter. This shortfall is the primary reason that our fiscal 2023 third-quarter revenue will be below the low end of our prior guidance range,” says president & CEO Alan Lowe. “Looking ahead, we expect a similar level of shipments to this customer in our fiscal Q4, as we saw in Q3. Nevertheless, our customer relationship remains strong, and we continue to work together closely to help them achieve success,” he adds.
“We have confidence in our long-term strategy and operating model, and today we are announcing an increase in our share repurchase program,” Lowe continues.
Lumentum’s board of directors recently approved an increase in its share repurchase program authorization to an aggregate $1.2bn and extended its duration through May 2025. The firm’s previously announced authorization was $1bn through May 2024. As of 1 April, $615.5m had been used to repurchase 7.4 million shares. Lumentum expects to fund the repurchases under the extended share repurchase program out of its existing cash balance.