Lumentum Announces Fiscal Fourth Quarter and Full Year 2024 Results
Fiscal Fourth Quarter Highlights:
-
Net revenue of
$308.3 million - GAAP operating loss of 43.3%; Non-GAAP operating loss of 0.3%
-
GAAP diluted net loss per share of
$3.72 ; Non-GAAP diluted net income per share of$0.06
Fiscal Year 2024 Highlights:
-
Net revenue of
$1.36 billion - GAAP operating loss of 31.9%; Non-GAAP operating margin of 2.8%
-
GAAP diluted net loss per share of
$8.12 ; Non-GAAP diluted net income per share of$1.01
“We exceeded our guidance midpoints for both revenue and EPS in the fourth quarter. We booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market,” said
Fiscal Fourth Quarter Highlights:
Net revenue for the fiscal fourth quarter of 2024 was
Non-GAAP net income for fiscal fourth quarter of 2024 was
The Company held
Full Fiscal Year 2024 Highlights:
Net revenue for fiscal year 2024 was
Non-GAAP net income for fiscal year 2024 was
Cash from operations for the fiscal year of 2024 was
Financial Overview – Fiscal Fourth Quarter Ended |
|||||||||||||||
|
GAAP Results ($ in millions) |
||||||||||||||
|
Q4 |
|
Q3 |
|
Q4 |
|
Change |
||||||||
|
FY 2024 |
|
FY 2024 |
|
FY 2023 |
|
Q/Q |
|
Y/Y |
||||||
Net revenue |
$ |
308.3 |
|
|
$ |
366.5 |
|
|
$ |
370.8 |
|
|
(15.9)% |
|
(16.9)% |
GAAP gross margin |
|
16.6 |
% |
|
|
16.2 |
% |
|
|
24.2 |
% |
|
40bps |
|
(760)bps |
GAAP operating loss |
|
(43.3 |
)% |
|
|
(31.3 |
)% |
|
|
(15.1 |
)% |
|
(1,200)bps |
|
(2,820)bps |
|
Non-GAAP Results ($ in millions) |
||||||||||||||
|
Q4 |
|
Q3 |
|
Q4 |
|
Change |
||||||||
|
FY 2024 |
|
FY 2024 |
|
FY 2023 |
|
Q/Q |
|
Y/Y |
||||||
Net revenue |
$ |
308.3 |
|
|
$ |
366.5 |
|
|
$ |
370.8 |
|
|
(15.9)% |
|
(16.9)% |
Non-GAAP gross margin |
|
32.2 |
% |
|
|
32.6 |
% |
|
|
36.7 |
% |
|
(40)bps |
|
(450)bps |
Non-GAAP operating margin (loss) |
|
(0.3 |
)% |
|
|
4.1 |
% |
|
|
9.1 |
% |
|
(440)bps |
|
(940)bps |
Net Revenue by Segment ($ in millions) |
||||||||||||||||||||
|
Q4 |
|
% of |
|
Q3 |
|
Q4 |
|
Change |
|||||||||||
|
FY 2024 |
|
Net Revenue |
|
FY 2024 |
|
FY 2023 |
|
Q/Q |
|
Y/Y |
|||||||||
Cloud & Networking |
$ |
254.7 |
|
82.6 |
% |
|
$ |
313.8 |
|
$ |
286.5 |
|
(18.8 |
)% |
|
(11.1 |
)% |
|||
Industrial Tech |
|
53.6 |
|
|
17.4 |
% |
|
|
52.7 |
|
|
|
84.3 |
|
|
1.7 |
% |
|
(36.4 |
)% |
Total |
$ |
308.3 |
|
|
100.0 |
% |
|
$ |
366.5 |
|
|
$ |
370.8 |
|
|
(15.9 |
)% |
|
(16.9 |
)% |
Financial Overview – Fiscal Year Ended |
|||||||||
|
GAAP Results ($ in millions) |
||||||||
|
FY 2024 |
|
FY 2023 |
|
Change Y/Y |
||||
Net revenue |
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
|
(23.1)% |
Gross margin |
|
18.5 |
% |
|
|
32.2 |
% |
|
(1,370)bps |
Operating loss |
|
(31.9 |
)% |
|
|
(6.5 |
)% |
|
(2,540)bps |
|
Non-GAAP Results ($ in millions) |
||||||||
|
FY 2024 |
|
FY 2023 |
|
Change Y/Y |
||||
Net revenue |
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
|
(23.1)% |
Gross margin |
|
33.0 |
% |
|
|
43.2 |
% |
|
(1,020)bps |
Operating margin |
|
2.8 |
% |
|
|
19.2 |
% |
|
(1,640)bps |
|
Net Revenue by Segment ($ in millions) |
||||||||
|
FY 2024 |
|
FY 2023 |
|
Change Y/Y |
||||
Cloud & Networking |
$ |
1,084.9 |
|
$ |
1,322.5 |
|
(18.0)% |
||
Industrial Tech |
|
274.3 |
|
|
|
444.5 |
|
|
(38.3)% |
Total |
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
|
(23.1)% |
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
-
Net revenue in the range of
$315 million to$335 million - Non-GAAP operating margin of 0% - 3.0%
-
Non-GAAP diluted earnings per share of
$0.07 to$0.17
We have not provided reconciliations from GAAP to non-GAAP measures or the equivalent GAAP measure for non-GAAP measures in our outlook, as they cannot be provided without unreasonable effort. A large portion of non-GAAP adjustments, such as restructuring charges, stock-based compensation, non-GAAP income tax reconciling adjustments, acquisition related costs, 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.
Conference Call
About
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 include statements regarding: our belief and expectations with respect to our strategies, our technology, any anticipation or guidance as to demand for our products and technology from our customers and their end customers, including drivers of that demand and demand relative to supply, our product roadmaps and investments, our market opportunity and expectations for our markets our future revenue and revenue growth and trends in our markets, and our guidance with respect to future net revenue, non-GAAP diluted earnings per share, and non-GAAP operating margins, and related assumptions. 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) uncertainty and volatility in the global markets, including uncertainty and volatility in the macroeconomic environment, volatility and uncertainty in banking and financial services sectors, inflationary pressures, changes in the political or economic environment, such as geopolitical conflicts, war, trade and export restrictions and the imposition of tariffs or other duties, and the effect of such market disruptions on demand for our products, technology spending by our customers and our ability to obtain components for our products; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) decline of average selling prices across our businesses or increase in costs, either of which will also decrease our margins; (d) effects of seasonality; (e) the ability of our suppliers and contract manufacturers to meet production, quality, and delivery requirements for our forecasted demand; (f) changes in customer demand, including due to changes in inventory practices and end-customer demand; (g) our ability to attract and retain new customers, particularly in the cloud photonics and imaging and sensing markets; (h) the risk that our markets will not grow or develop as expected or that our strategies and ability to compete in those markets are not successful, (i) the risk that Lumentum’s financing or operating strategies will not be successful; (j) risks related to restructurings and changes to our operations; (k) failure to successfully integrate
The following financial tables are presented in accordance with GAAP, unless otherwise specified.
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(in millions, except per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
308.3 |
|
|
$ |
370.8 |
|
|
$ |
1,359.2 |
|
|
$ |
1,767.0 |
|
Cost of sales |
|
234.9 |
|
|
|
263.2 |
|
|
|
1,023.8 |
|
|
|
1,113.6 |
|
Amortization of acquired developed intangibles |
|
22.1 |
|
|
|
18.0 |
|
|
|
83.9 |
|
|
|
84.4 |
|
Gross profit |
|
51.3 |
|
|
|
89.6 |
|
|
|
251.5 |
|
|
|
569.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
73.2 |
|
|
|
73.9 |
|
|
|
302.2 |
|
|
|
307.8 |
|
Selling, general and administrative |
|
74.9 |
|
|
|
68.3 |
|
|
|
310.7 |
|
|
|
348.8 |
|
Restructuring and related charges |
|
36.6 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Total operating expenses |
|
184.7 |
|
|
|
145.5 |
|
|
|
685.5 |
|
|
|
684.7 |
|
Loss from operations |
|
(133.4 |
) |
|
|
(55.9 |
) |
|
|
(434.0 |
) |
|
|
(115.7 |
) |
Interest expense |
|
(5.4 |
) |
|
|
(9.4 |
) |
|
|
(33.8 |
) |
|
|
(35.5 |
) |
Other income, net |
|
11.3 |
|
|
|
19.9 |
|
|
|
62.1 |
|
|
|
48.8 |
|
Loss before income taxes |
|
(127.5 |
) |
|
|
(45.4 |
) |
|
|
(405.7 |
) |
|
|
(102.4 |
) |
Income tax provision |
|
125.0 |
|
|
|
14.8 |
|
|
|
140.8 |
|
|
|
29.2 |
|
Net loss |
$ |
(252.5 |
) |
|
$ |
(60.2 |
) |
|
$ |
(546.5 |
) |
|
$ |
(131.6 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(3.72 |
) |
|
$ |
(0.88 |
) |
|
$ |
(8.12 |
) |
|
$ |
(1.93 |
) |
Diluted |
$ |
(3.72 |
) |
|
$ |
(0.88 |
) |
|
$ |
(8.12 |
) |
|
$ |
(1.93 |
) |
|
|
|
|
|
|
|
|
||||||||
Shares used to compute net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
67.8 |
|
|
|
68.3 |
|
|
|
67.3 |
|
|
|
68.3 |
|
Diluted |
|
67.8 |
|
|
|
68.3 |
|
|
|
67.3 |
|
|
|
68.3 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in millions, except per share data) |
|||||||
(unaudited) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
436.7 |
|
|
$ |
859.0 |
|
Short-term investments |
|
450.3 |
|
|
|
1,154.6 |
|
Accounts receivable, net |
|
194.7 |
|
|
|
246.1 |
|
Inventories |
|
398.4 |
|
|
|
408.6 |
|
Prepayments and other current assets |
|
110.0 |
|
|
|
109.6 |
|
Total current assets |
|
1,590.1 |
|
|
|
2,777.9 |
|
Property, plant and equipment, net |
|
572.5 |
|
|
|
489.5 |
|
Operating lease right-of-use assets, net |
|
72.8 |
|
|
|
77.3 |
|
|
|
1,055.8 |
|
|
|
695.1 |
|
Other intangible assets, net |
|
617.5 |
|
|
|
459.2 |
|
Deferred tax asset |
|
10.7 |
|
|
|
116.3 |
|
Other non-current assets |
|
12.5 |
|
|
|
16.8 |
|
Total assets |
$ |
3,931.9 |
|
|
$ |
4,632.1 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
126.3 |
|
|
$ |
169.4 |
|
Accrued payroll and related expenses |
|
36.1 |
|
|
|
39.4 |
|
Accrued expenses |
|
52.4 |
|
|
|
51.2 |
|
Convertible notes, current |
|
— |
|
|
|
311.6 |
|
Operating lease liabilities, current |
|
13.4 |
|
|
|
14.4 |
|
Other current liabilities |
|
41.1 |
|
|
|
47.8 |
|
Total current liabilities |
|
269.3 |
|
|
|
633.8 |
|
Convertible notes, non-current |
|
2,503.2 |
|
|
|
2,500.0 |
|
Operating lease liabilities, non-current |
|
43.0 |
|
|
|
47.7 |
|
Deferred tax liability |
|
55.7 |
|
|
|
3.4 |
|
Other non-current liabilities |
|
103.4 |
|
|
|
91.4 |
|
Total liabilities |
|
2,974.6 |
|
|
|
3,276.3 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
0.1 |
|
|
|
0.1 |
|
Additional paid-in capital |
|
1,835.0 |
|
|
|
1,692.2 |
|
Accumulated deficit |
|
(887.1 |
) |
|
|
(340.6 |
) |
Accumulated other comprehensive income |
|
9.3 |
|
|
|
4.1 |
|
Total stockholders’ equity |
|
957.3 |
|
|
|
1,355.8 |
|
Total liabilities and stockholders’ equity |
$ |
3,931.9 |
|
|
$ |
4,632.1 |
|
Use of Non-GAAP Financial Measures
In this press release,
Our non-GAAP measures used in this press release exclude (i) stock-based compensation, (ii) acquisition related stock-based compensation, (iii) acquisition related costs, (iv) amortization of acquired intangibles, (v) amortization of acquired inventory fair value adjustments, (vi) restructuring and related charges, (vii) foreign exchange (gains) losses, net, (viii) non-cash interest expense on convertible notes, (ix) gain on repurchase of convertible notes, (x) non-recurring expenses related to litigation matters, (xi) intangible assets write-off, (xii) integration related costs, (xiii) abnormal excess capacity, (xiv) foreign exchange gains and losses, (xv) non-GAAP income tax reconciling adjustments, and (xvi) other (gains) charges related to non-recurring activities.
We utilize a long-term projected non-GAAP tax rate to compute our non-GAAP income tax provision. The long-term projected non-GAAP tax rate is based on a multi-year projection of our estimated annual GAAP income tax forecast, adjusted to account for the tax effect of non-GAAP pretax adjustments as well as the effects of significant non-recurring and period specific tax items. Our non-GAAP tax provision for fiscal year 2024 is 14.5%. The difference between our GAAP income tax provision and our non-GAAP income tax provision is presented as non-GAAP income tax reconciling adjustments.
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.
|
|||||||||||||||||||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES |
|||||||||||||||||||
(in millions, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit on GAAP basis |
$ |
51.3 |
|
|
$ |
59.5 |
|
|
$ |
89.6 |
|
|
$ |
251.5 |
|
|
$ |
569.0 |
|
Stock-based compensation |
|
8.2 |
|
|
|
8.5 |
|
|
|
11.0 |
|
|
|
31.7 |
|
|
|
30.1 |
|
Integration related costs |
|
4.6 |
|
|
|
6.4 |
|
|
|
2.6 |
|
|
|
24.5 |
|
|
|
12.1 |
|
Amortization of acquired intangibles |
|
22.1 |
|
|
|
22.3 |
|
|
|
18.0 |
|
|
|
83.9 |
|
|
|
84.4 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
6.8 |
|
|
|
— |
|
|
|
6.8 |
|
Other charges, net (2) |
|
6.0 |
|
|
|
5.8 |
|
|
|
8.1 |
|
|
|
28.3 |
|
|
|
43.3 |
|
Gross profit on non-GAAP basis |
$ |
99.2 |
|
|
$ |
119.3 |
|
|
$ |
136.1 |
|
|
$ |
448.9 |
|
|
$ |
763.5 |
|
Gross margin on non-GAAP basis |
|
32.2 |
% |
|
|
32.6 |
% |
|
|
36.7 |
% |
|
|
33.0 |
% |
|
|
43.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development on GAAP basis |
$ |
73.2 |
|
|
$ |
77.2 |
|
|
$ |
73.9 |
|
|
$ |
302.2 |
|
|
$ |
307.8 |
|
Stock-based compensation |
|
(8.0 |
) |
|
|
(9.8 |
) |
|
|
(10.2 |
) |
|
|
(38.1 |
) |
|
|
(41.4 |
) |
Integration related costs |
|
— |
|
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.7 |
) |
|
|
(1.9 |
) |
Amortization of acquired intangibles |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(1.5 |
) |
|
|
— |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
(1.4 |
) |
|
|
— |
|
|
|
(12.9 |
) |
Acquisition related costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.4 |
) |
|
|
— |
|
Other charges, net |
|
0.1 |
|
|
|
(0.4 |
) |
|
|
— |
|
|
|
(1.1 |
) |
|
|
(2.6 |
) |
Research and development on non-GAAP basis |
$ |
64.9 |
|
|
$ |
66.2 |
|
|
$ |
61.7 |
|
|
$ |
260.4 |
|
|
$ |
249.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative on GAAP basis |
$ |
74.9 |
|
|
$ |
77.7 |
|
|
$ |
68.3 |
|
|
$ |
310.7 |
|
|
$ |
348.8 |
|
Stock-based compensation |
|
(14.3 |
) |
|
|
(13.3 |
) |
|
|
(10.9 |
) |
|
|
(59.0 |
) |
|
|
(65.0 |
) |
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11.9 |
) |
Acquisition related (costs) reversal |
|
0.2 |
|
|
|
(0.5 |
) |
|
|
4.7 |
|
|
|
(12.9 |
) |
|
|
(11.5 |
) |
Integration related costs |
|
(2.8 |
) |
|
|
(3.4 |
) |
|
|
(6.2 |
) |
|
|
(11.9 |
) |
|
|
(14.6 |
) |
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7.8 |
) |
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
(1.6 |
) |
|
|
— |
|
|
|
(1.6 |
) |
Amortization of acquired intangibles |
|
(19.4 |
) |
|
|
(19.4 |
) |
|
|
(11.4 |
) |
|
|
(65.2 |
) |
|
|
(43.3 |
) |
Other charges, net (2) |
|
(3.5 |
) |
|
|
(3.0 |
) |
|
|
(2.2 |
) |
|
|
(11.0 |
) |
|
|
(17.8 |
) |
Selling, general and administrative on non-GAAP basis |
$ |
35.1 |
|
|
$ |
38.1 |
|
|
$ |
40.7 |
|
|
$ |
150.7 |
|
|
$ |
175.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from operations on GAAP basis |
$ |
(133.4 |
) |
|
$ |
(114.6 |
) |
|
$ |
(55.9 |
) |
|
$ |
(434.0 |
) |
|
$ |
(115.7 |
) |
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
136.5 |
|
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.9 |
|
Acquisition related costs (reversal) |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges (3) |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Other charges, net (2) |
|
9.4 |
|
|
|
9.2 |
|
|
|
10.3 |
|
|
|
40.4 |
|
|
|
63.7 |
|
Income (loss) from operations on non-GAAP basis |
$ |
(0.8 |
) |
|
$ |
15.0 |
|
|
$ |
33.7 |
|
|
$ |
37.8 |
|
|
$ |
339.2 |
|
Operating margin (loss) on non-GAAP basis |
|
(0.3 |
)% |
|
|
4.1 |
% |
|
|
9.1 |
% |
|
|
2.8 |
% |
|
|
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and other income, net on GAAP basis |
$ |
5.9 |
|
|
$ |
7.2 |
|
|
$ |
10.5 |
|
|
$ |
28.3 |
|
|
$ |
13.3 |
|
Foreign exchange gains, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
(2.6 |
) |
|
|
(0.7 |
) |
|
|
(7.0 |
) |
Gain on repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Non-cash interest expense on convertible notes and other expenses |
|
0.7 |
|
|
|
4.5 |
|
|
|
6.4 |
|
|
|
14.9 |
|
|
|
24.3 |
|
Interest and other income, net on non-GAAP basis |
$ |
5.4 |
|
|
$ |
8.0 |
|
|
$ |
13.3 |
|
|
$ |
42.5 |
|
|
$ |
29.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss before income taxes on GAAP basis |
$ |
(127.5 |
) |
|
$ |
(107.4 |
) |
|
$ |
(45.4 |
) |
|
$ |
(405.7 |
) |
|
$ |
(102.4 |
) |
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
136.5 |
|
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.9 |
|
Acquisition related costs (reversal) |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges (3) |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Foreign exchange gains, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
(2.6 |
) |
|
|
(0.7 |
) |
|
|
(7.0 |
) |
Gain on repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Non-cash interest expense on convertible notes and other expenses |
|
0.7 |
|
|
|
4.5 |
|
|
|
6.4 |
|
|
|
14.9 |
|
|
|
24.3 |
|
Other charges, net (2) |
|
9.4 |
|
|
|
9.2 |
|
|
|
10.3 |
|
|
|
40.4 |
|
|
|
63.7 |
|
Income before income taxes on non-GAAP basis |
$ |
4.6 |
|
|
$ |
23.0 |
|
|
$ |
47.0 |
|
|
$ |
80.3 |
|
|
$ |
368.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision on GAAP basis |
$ |
125.0 |
|
|
$ |
19.6 |
|
|
$ |
14.8 |
|
|
$ |
140.8 |
|
|
$ |
29.2 |
|
Non-GAAP income tax reconciling adjustments (4) |
|
(124.4 |
) |
|
|
(16.2 |
) |
|
|
(8.0 |
) |
|
|
(129.2 |
) |
|
|
24.3 |
|
Income tax provision on non-GAAP basis |
$ |
0.6 |
|
|
$ |
3.4 |
|
|
$ |
6.8 |
|
|
$ |
11.6 |
|
|
$ |
53.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss on GAAP basis |
$ |
(252.5 |
) |
|
|
(127.0 |
) |
|
|
(60.2 |
) |
|
$ |
(546.5 |
) |
|
$ |
(131.6 |
) |
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
136.5 |
|
Stock-based compensation - acquisition related |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11.9 |
|
Acquisition related costs (reversal) |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Litigation matters |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges (3) |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Abnormal excess capacity (1) |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Foreign exchange gains, net |
|
(1.2 |
) |
|
|
(3.7 |
) |
|
|
(2.6 |
) |
|
|
(0.7 |
) |
|
|
(7.0 |
) |
Gain on repurchase of convertible notes |
|
— |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Non-cash interest expense on convertible notes and other expenses |
|
0.7 |
|
|
|
4.5 |
|
|
|
6.4 |
|
|
|
14.9 |
|
|
|
24.3 |
|
Other charges, net (2) |
|
9.4 |
|
|
|
9.2 |
|
|
|
10.3 |
|
|
|
40.4 |
|
|
|
63.7 |
|
Non-GAAP income tax reconciling adjustments (4) |
|
124.4 |
|
|
|
16.2 |
|
|
|
8.0 |
|
|
|
129.2 |
|
|
|
(24.3 |
) |
Net income on non-GAAP basis |
$ |
4.0 |
|
|
$ |
19.6 |
|
|
$ |
40.2 |
|
|
$ |
68.7 |
|
|
$ |
315.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share on non-GAAP basis |
$ |
0.06 |
|
|
$ |
0.29 |
|
|
$ |
0.59 |
|
|
$ |
1.01 |
|
|
$ |
4.56 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in per share calculation - diluted on GAAP basis |
|
67.8 |
|
|
|
67.5 |
|
|
|
68.3 |
|
|
|
67.3 |
|
|
|
68.3 |
|
Non-GAAP adjustment (5) |
|
0.5 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.8 |
|
Shares used in per share calculation - diluted on non-GAAP basis |
|
68.3 |
|
|
|
68.1 |
|
|
|
68.6 |
|
|
|
67.7 |
|
|
|
69.1 |
|
(1) Abnormal excess capacity for the three and twelve months ended |
|
(2) Other charges, net for the three months ended |
|
Other charges, net for the twelve months ended |
|
(3) We discontinued in-house development of coherent digital signal processors (“DSPs”) and radio-frequency integrated circuits (“RFICs”). As a result, we recorded |
|
(4) The non-GAAP income tax reconciling adjustments for the three months ended |
|
(5) Shares used for net income per share on non-GAAP basis include incremental dilutive shares that would occur upon conversion of our convertible notes assuming we settle the face value of the notes in cash as the Company intends, and shares related to restricted stock units (“RSUs”) and shares issuable under our Employee Stock Purchase Plan that are anti-dilutive on GAAP basis. |
|
|||||||||||||||||||
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA |
|||||||||||||||||||
(in millions, except per share data) |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net loss |
$ |
(252.5 |
) |
|
$ |
(127.0 |
) |
|
$ |
(60.2 |
) |
|
$ |
(546.5 |
) |
|
$ |
(131.6 |
) |
Interest and other income, net |
|
(5.9 |
) |
|
|
(7.2 |
) |
|
|
(10.5 |
) |
|
|
(28.3 |
) |
|
|
(13.3 |
) |
Income tax provision |
|
125.0 |
|
|
|
19.6 |
|
|
|
14.8 |
|
|
|
140.8 |
|
|
|
29.2 |
|
Depreciation |
|
28.2 |
|
|
|
27.0 |
|
|
|
28.0 |
|
|
|
110.6 |
|
|
|
106.6 |
|
Amortization of acquired intangibles |
|
41.9 |
|
|
|
42.1 |
|
|
|
29.4 |
|
|
|
150.6 |
|
|
|
127.7 |
|
EBITDA |
|
(63.3 |
) |
|
|
(45.5 |
) |
|
|
1.5 |
|
|
|
(172.8 |
) |
|
|
118.6 |
|
Amortization of inventory fair value adjustments |
|
— |
|
|
|
4.9 |
|
|
|
— |
|
|
|
8.3 |
|
|
|
17.8 |
|
Restructuring and related charges |
|
36.6 |
|
|
|
19.2 |
|
|
|
3.3 |
|
|
|
72.6 |
|
|
|
28.1 |
|
Stock-based compensation |
|
30.5 |
|
|
|
31.6 |
|
|
|
32.1 |
|
|
|
128.8 |
|
|
|
148.4 |
|
Acquisition related costs |
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(4.7 |
) |
|
|
13.3 |
|
|
|
11.5 |
|
Integration related costs |
|
7.4 |
|
|
|
10.2 |
|
|
|
9.4 |
|
|
|
37.1 |
|
|
|
28.6 |
|
Intangible asset write-off |
|
— |
|
|
|
— |
|
|
|
9.8 |
|
|
|
— |
|
|
|
21.3 |
|
Abnormal excess capacity |
|
7.0 |
|
|
|
11.9 |
|
|
|
— |
|
|
|
20.7 |
|
|
|
— |
|
Other charges, net |
|
7.9 |
|
|
|
8.2 |
|
|
|
8.0 |
|
|
|
32.5 |
|
|
|
57.4 |
|
Adjusted EBITDA |
$ |
25.9 |
|
|
$ |
41.0 |
|
|
$ |
59.4 |
|
|
$ |
140.5 |
|
|
$ |
431.7 |
|
Category: Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814894445/en/
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