Lumentum Holdings Inc. (LITE) saw its loss widen to $56 million, or $0.92 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $7.60 million, or $0.13 a share. On the other hand, adjusted net income for the quarter stood at $30.80 million, or $0.49 a share compared with $19.70 million or $0.32 a share, a year ago.
Revenue during the quarter grew 11.02 percent to $255.80 million from $230.40 million in the previous year period. Gross margin for the quarter expanded 484 basis points over the previous year period to 32.10 percent. Operating margin for the quarter period stood at positive 5.32 percent as compared to a negative 1 percent for the previous year period.
Operating income for the quarter was $13.60 million, compared with an operating loss of $2.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32.20 million compared to $20.30 million in the prior year period. At the same time, adjusted operating margin improved 378 basis points in the quarter to 12.59 percent from 8.81 percent in the last year period.
"During the third quarter we made solid progress on our strategic goals in each of our markets," said Alan Lowe, president and chief executive officer. "Our revenue from 100G QSFP28 transceivers targeting hyperscale datacenter applications picked up materially, we shipped record levels of next generation TrueFlex® ROADMs, our commercial lasers business returned to growth, and we made substantial progress on 3D sensing for mobile devices applications."
For the fourth-quarter, Lumentum expects revenue to be in the range of $220 million to $235 million. The company expects adjusted operating income to grow in the range of 9 percent to 11 percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.30 to $0.40.
Working capital increases sharply
Lumentum Holdings Inc. has recorded an increase in the working capital over the last year. It stood at $749.50 million as at Apr. 01, 2017, up 138.47 percent or $435.20 million from $314.30 million on Apr. 02, 2016. Current ratio was at 4.90 as on Apr. 01, 2017, up from 2.86 on Apr. 02, 2016. Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 70 days for the last year period. Days sales outstanding went down to 61 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding has decreased to 31 days for the quarter compared with 63 days for the previous year period. At the same time, days payable outstanding went down to 56 days for the quarter from 60 for the same period last year.
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