• Home
  • About Us
  • Contact Us
Semiconductor for You
  • Home
  • Semiconductor News
  • Technology
    • Automotive
    • Consumer Electronics
    • IoT
    • Lighting
    • Power Management
    • Wireless
    • Personal Electronics
    • Hardware & Software
    • Research
    • Medical Electronics
    • Embedded Design
    • Aerospace & Defence
    • Artificial Intelligence
  • DIY Projects
  • Market
  • Industries
    • Renesas Electronics
  • Knowledge Base
  • Events
  • Tools
    • Resistor Color Code Calculator
No Result
View All Result
  • Home
  • Semiconductor News
  • Technology
    • Automotive
    • Consumer Electronics
    • IoT
    • Lighting
    • Power Management
    • Wireless
    • Personal Electronics
    • Hardware & Software
    • Research
    • Medical Electronics
    • Embedded Design
    • Aerospace & Defence
    • Artificial Intelligence
  • DIY Projects
  • Market
  • Industries
    • Renesas Electronics
  • Knowledge Base
  • Events
  • Tools
    • Resistor Color Code Calculator
No Result
View All Result
Semiconductor for You
No Result
View All Result
Home Semiconductor News

Lumentum’s record quarterly revenue driven by VCSEL array ramp for 3D sensing in consumer mobile applications

Semiconductor For You by Semiconductor For You
February 15, 2018
in Semiconductor News
0
ADVERTISEMENT

For fiscal second-quarter 2018 (to 30 December 2017), optical and photonic optical component and subsystem maker Lumentum Holdings Inc of Milpitas, CA, USA has reported record revenue of $404.6m, up 66.4% on $243.2m last quarter and 52.7% on $265m a year ago (and well above the $345-375m guidance). Growth was driven by the ramp of 3D sensing vertical-cavity surface-emitting laser (VCSEL) arrays, telecom pump lasers and reconfigurable optical add-drop multiplexers (ROADMs), and strong demand for commercial lasers (both micro-machining and kilowatt laser products). There were record revenues for nearly all laser product lines.

Optical Communications revenue was $360.1m (89% of total revenue), up 73.2% on $207.9m (85.5% of total revenue) last quarter and up 52.2% on $236.6m a year ago.

Of this, Telecom revenue was $110.2m, flat sequentially and down 31% on $160.1m a year ago. However, revenue for ROADMs rebounded by 22% quarter-on-quarter (with North American customers having worked down their inventories from prior quarters, and China rising to about 20% of shipment volume). Also, Telecom pump laser sales achieved record revenue. Datacom revenue was $34.4m, down 24% on $45.2m last quarter and 49% on $68.1m a year ago (with coherent components and datacom transceivers declining sequentially). Consumer & Industrial revenue was $215.5m (including over $200m in 3D sensing – well above expectation, after rapidly expanded 3D sensing VCSEL capacity and production volumes). This is up 312% on $52.3m last quarter (about $40m in 3D sensing) and just $8.4m a year ago. This also includes record revenue for industrial diode lasers, driven by strong demand from customers building material processing tools (including kilowatt glass-fiber lasers using Lumentum’s pump lasers).

Commercial Lasers revenue was a record $44.5m (11% of total revenue), up 26.1% on $35.3m (14.5% of total revenue) last quarter and up 56.7% on $28.4m (10.7% of total revenue) a year ago, driven by both micro-machining and kilowatt laser products (due to strong demand from equipment used in the production of next-generation consumer electronic devices such as new smartphones and wearables, which are increasingly using components that require laser-based processing).

“The steep production ramp and our consistently high yields were enabled by our proprietary laser design and production capabilities that have taken us years to develop,” says president & CEO Alan Lowe. “We have irreplaceable learnings and volumes of field data from multiple high-volume 3D sensing ramps. This, along with our decades of experience supplying laser diodes into the industrial and subsea communication markets, allows us to produce high-performance, highly reliable volumes of lasers,” he adds. “Our laser chip and manufacturing processes are specifically designed to enable the short-design cycles and high-volume production ramps needed by the fast pace of consumer electronics customers. These requirements are quite different from those of other customers in the industrial and communications market. We spent nearly a decade developing unique capabilities to address the 3D sensing market.”

Gross margin (on a non-GAAP basis) was 44.9%, up from 34% last quarter and 36.9% a year ago. This was particularly due to the favorable product mix and improved operating leverage from higher volumes in Optical Communications, for which gross margin was 45%, up from 34.7% last quarter and 36.6% a year ago (driven by 3D sensing gross margin significantly above the historical corporate average). Commercial Lasers gross margin was 44.7%, up from 30% last quarter and 39.4% a year ago (returning to the mid-40% level, consistent the longer-term target of 50%).

Operating expenses were $67.2m, up from $54.1m last quarter, due mainly to investments in new product programs, infrastructure investments to support growth, and variable incentive compensations. In particular, research & development (R&D) expenses rose from $35.4m to $38.9m and selling, general & administrative (SG&A) expenses rose from $23.5m to $28.3m. However, as a percentage of revenue, operating expenses been cut from 22.2% to 16.6%.

Demonstrating the strength of the firm’s operating model as volume increases, operating income was $114.6m (operating margin of 28.3% of revenue), up from $28.6m (11.8% margin) last quarter and $39m (14.7% margin) a year ago.

ADVERTISEMENT

Likewise, net income was a record $107.8m ($1.67 per diluted share), up from $27.8m ($0.43 per diluted share) last quarter and $35.9m ($0.57 per diluted share) a year ago.

Capital expenditure (CapEx) was $26m (level with last quarter but down from $35m a year ago). During the quarter, cash and short-term investments hence rose by $92m, from $532.5m to $624.5m.

During the quarter, Lumentum continued to book new 3D sensing orders and exited the quarter with a solid order backlog for deliveries through June.

However, given the firm’s consumer electronics-oriented 3D sensing customer mix, for the seasonally lower fiscal third-quarter 2018 (to end March) Lumentum expects revenue to fall to $280-305m, with 3D sensing down significantly. Non-3D sensing revenue should rise by $25m sequentially to $35m, including $20m growth for ROADMs and telecom pump lasers plus (with demand outstripping what the firm can supply) $5m growth for Commercial Lasers to exceed $50m (a target that’s been pursued for a long time). ROADM revenue will be up for both the USA and China.

Lumentum expects operating margin to fall to 15.5-18% and diluted earnings per share to fall to $0.65-0.80.

Revenue should include contributions from new 3D sensing customers in the Android space, including some who have designed in Lumentum’s newest high-performance edge-emitting lasers. “These new opportunities are in the early stages and are only expected to contribute a few million dollars,” notes Lowe. “These new customers are expected to drive far more business as we look to our fiscal 2019 and beyond,” he adds. “Our proven capabilities position us well for the future as demand for our industrial lasers and ROADMs is strengthening, and 3D sensing opportunities are broadening to more customers and end markets… Consumer electronic manufacturers throughout China, Korea and North America are looking to 3D sensing to enhance security, to enable augmented and virtual reality, and to add other new functionality. Given the volume that these manufacturers produce, it is not difficult to imagine the annual market for 3D sensing lasers exceeding $1bn in the next year or two. To capitalize on these market opportunities, we are rapidly ramping our R&D investment in 3D sensing and in additional manufacturing capacity for VCSELs and edge-emitting lasers. Given the lengthy qualification times, we are already in the process of qualifying new equipment to permit even higher production starts in our fourth quarter for first-half fiscal 2019 deliveries.”,

“We expect strong North American ROADM demand to continue in the quarters ahead. Chinese demand for ROADMs will grow throughout calendar year 2018 and 2019 as China continues its march towards large-scale domestic deployments [building out networks in many of the large cities],” says Lowe. “We are adding capacity for ROADMs today, so I would expect our ability to get a new peak level of ROADM revenue this year is very highly likely.”

Finally, demand continues to be strong for both micromachining and kilowatt fiber laser product lines, so Lumentum expects Commercial Lasers to be on a growth trajectory over the coming quarters.

Content Protection by DMCA.com
Semiconductor For You

Semiconductor For You

Browse by Category

  • Aerospace and Defence
  • Articles
  • Automotive
  • Consumer-Electronics
  • Hardware & Software
  • Interview
  • IoT
  • Knowledge Base
  • Lighting
  • Market
  • personal-electronics
  • Power Management
  • Research
  • Semiconductor Events
  • Semiconductor News
  • Technology
  • Wireless
Semiconductor for You

Semiconductor For You is a resource hub for electronics engineers and industrialist. With its blend of
technology features, news and new product information, Semiconductor For You keeps designers and
managers up to date with the fastest moving industry in the world.

Follow Us

Browse by Category

  • Aerospace and Defence
  • Articles
  • Automotive
  • Consumer-Electronics
  • Hardware & Software
  • Interview
  • IoT
  • Knowledge Base
  • Lighting
  • Market
  • personal-electronics
  • Power Management
  • Research
  • Semiconductor Events
  • Semiconductor News
  • Technology
  • Wireless

Recent News

Nordic-powered sensor detects the presence of methamphetamine in buildings

Nordic-powered sensor detects the presence of methamphetamine in buildings

November 25, 2023
Color-Keyed Thru-Hole Mount Test Points

Color-Keyed Thru-Hole Mount Test Points

November 23, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2022 Semiconductor For You

No Result
View All Result
  • Home
  • Semiconductor News
  • Technology
    • IoT
    • Wireless
    • Power Management
    • Automotive
    • Hardware & Software
  • Market
  • Knowledge Base
  • Tools
    • Resistor Color Code Calculator

© 2022 Semiconductor For You

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT