Lumentum Holdings (LITE), which makes optical components and modules for communication networks, reported a 7.6% decline in second-quarter net revenue to $373.7 million. The top line surpassed the street projection of $356.41 million.
Earnings, adjusted for one-time items, were $1.15 per share, one cent shy of what analysts were expecting. On a reported basis, net income attributable to common shareholders plunged to 8 cents per share from $3.05 per share in the same quarter last year.
LITE shares fell 5.3% during pre-market trading post the earnings announcement. The stock has gained 16% in the trailing 12 months.
For Q3, the company expects net revenue in the range of $420 million to $440 million. Adjusted earnings per share is projected to be between $0.76 to $0.94 during this period.
CEO Alan Lowe said, “Strength in Telecom demand is expected to continue in the third quarter, counter to historical seasonality. Second quarter 3D sensing revenue came in as expected, and we continue to make progress with new design wins with new and existing customers.”
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He added, “The closing of the Oclaro acquisition in December gives us a first mover advantage in a consolidating industry and establishes leadership positions based on fundamental photonic chip capabilities across a broad range of products and technologies.”
The Milpitas, California-based company acquired optics firm Oclaro Inc in December, expecting an estimated $60 million in synergies in the 12-24 months. Under the terms of the merger agreement, Oclaro stockholders received $5.60 in cash and 0.0636 of a share of Lumentum common stock for each share of Oclaro common stock.