Lumentum Holdings Inc. Q1 FY2025 earnings call

• Three-pronged strategy for cloud and AI data centers: expand customer opportunities, scale manufacturing capacity outside China, and deliver innovative technologies. • Exceeded high end of guidance for revenue and earnings per share in first quarter. • Set new record for Datacom laser chip orders, including 200-gig EML chips. • Expect double-digit sequential revenue growth in second quarter. • Progress in expanding customer opportunities, scaling manufacturing capacity, and delivering innovative technologies for data center needs.

Cloud and Networking segment revenue was $282.3 million, increasing 11% sequentially and 23% year-over-year. Industrial Tech segment revenue was $54.6 million, up 2% sequentially and down 38% year-over-year.

• Fiscal second quarter 2025 net revenue expected to be in the range of $380 million to $400 million. • Non-GAAP operating margin projected to be in the range of 5.5% to 7.5%. • Diluted net income per share expected to be in the range of $0.30 to $0.40. • Assumes non-GAAP annual effective tax rate of 16.5% and approximate share count of 69.6 million shares.

Q: Samik Chatterjee asked about parsing the cloud and networking growth and where the improvement is coming from.

A: Alan Lowe said it's a mix of Datacom chip growth, telecom, and Datacom modules improvement.

Q: Simon Leopold asked about Cloud Light and the market for 1.6 terabit devices.

A: Alan Lowe said Cloud Light is coming in as expected and 1.6T devices have interest from customers with 1.6T ramping significantly by end of next calendar year.

Q: Karan Juvekar asked about vertical integration with Cloud Light and telecom side growth.

A: Alan Lowe said no real change to vertical integration timeline and telecom side growth is seen in ZR products and hyperscale growth outside data centers.

Q: Ananda Baruah asked about tariff positioning and EML lasers pricing.

A: Alan Lowe said strategy to be U.S. headquartered with manufacturing outside China is unchanged and looking at price optimization on EMLs.

Q: Mike Genovese asked about telecom market visibility and optical switches in data centers.

A: Alan Lowe said telecom carrier network spending visibility is not great but data center interconnect market is strong, and Chris Coldren explained optical switches in data centers enable more efficient scaling and low latency.