Slide 1: Q4 FY20 Conference Call
Q4 FY20 Conference Call August 11, 2020
Slide 2: Forward Looking Statements and Financial Presentation
Forward Looking Statements and Financial Presentation This presentation 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 statements include any anticipation or guidance as to future finan
Slide 3: Overview
Overview Completed fifth year as a standalone public company with record revenue, margins and earnings ▪ The world is accelerating its shift toward digital and virtual approaches to work, education, healthcare, entertainment, social interaction, and commerce ▪ Lumentum is focused on enabling these d
Slide 4: FY20 Key Points
FY20 Key Points ▪ Revenue up 7% Y/Y to $1.7 billion despite: – Approximately $100 million impact from COVID-19 – $90 million reduction Y/Y in low margin revenue from discontinued product lines – $62 million of revenue from discontinued product lines remained in FY20 ▪ Innovative new products & acqui
Slide 5: Financial Trends FY15 to FY20 (GAAP)
Financial Trends FY15 to FY20 (GAAP) Net Revenue (M) GAAP Gross Margin (% of revenue) $1,679 38.7% $1,565 $1,248 34.6% $1,002 $903 31.8% $837 30.8% 30.7% 27.2% FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 GAAP Earnings Per Share GAAP Operating Margin (% of revenue) 12.2% $3.82 11.2% $
Slide 6: Financial Trends FY15 to FY20 (Non-GAAP)
Financial Trends FY15 to FY20 (Non-GAAP) Net Revenue (M) Non-GAAP Gross Margin (% of revenue) $1,679 $1,565 46.5% $1,248 $1,002 $903 39.5% $837 38.9% 34.7% 32.5% 33.0% FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20 Non-GAAP Earnings Per Share Non-GAAP Operating Margin (% of revenue) $5.
Slide 7: Q4FY20 Key Points
Q4FY20 Key Points ▪ Strong market demand combined with solid execution against COVID-19 supply constraints drove performance above high-end of guidance on all metrics ▪ Strong non-GAAP gross margins despite COVID-19 impacted revenue levels – Expanded 170 bps Q/Q and 830 bps Y/Y – Improving product m
Slide 8: Q4 FY20 Results (GAAP)
Q4 FY20 Results (GAAP) $ in millions Q4 FY20 Q3 FY20 Q4 FY19 except for EPS, % of revenue Revenue $368.1 $402.8 $404.6 Gross Margin 135.7 36.9% 157.7 39.2% 86.8 21.5% Operating Expenses 108.7 29.5% 115.2 28.6% 100.6 24.9% Operating Income 27.0 7.3% 42.5 10.6% (13.8) (3.4)% (Loss) Diluted EPS $(0.06)
Slide 9: Q4 FY20 Results (Non-GAAP)
Q4 FY20 Results (Non-GAAP) $ in millions Q4 FY20 Q3 FY20 Q4 FY19 except for EPS, % of revenue Revenue $368.1 $402.8 $404.6 Gross Margin 173.9 47.2% 183.4 45.5% 157.4 38.9% Operating Expenses 82.5 22.4% 82.7 20.5% 80.7 19.9% Operating Income 91.4 24.8% 100.7 25.0% 76.7 19.0% Diluted EPS $1.18 $1.26 $
Slide 10: Q4 FY20 Segment Results
Q4 FY20 Segment Results Q4 FY20 Q3 FY20 Q4 FY19 $ in millions Revenue $368.1 $402.8 $404.6 Optical Communications $ 330.3 359.3 356.8 Telecom & Datacom 256.4 251.0 269.2 Industrial & Consumer(1) 73.9 108.3 87.6 Commercial Lasers 37.8 43.5 47.8 Gross Margin (Non-GAAP) 47.2 % 45.5% 38.9% Optical Commu
Slide 11: Balance Sheet
Balance Sheet Selected Items Q4 FY20 Q3 FY20 $ in millions Cash and Short-term Investments $1,553.8 $1,451.4 Working Capital(1) 213.2 224.9 Property, Plant & Equipment, net 393.0 410.1 Total Assets 3,292.6 3,268.7 Total Liabilities 1,543.4 1,534.5 Shareholder’s Equity 1,749.2 1,734.2 (1) Working cap
Slide 12: Q1 FY21 Guidance (Non-GAAP)
Q1 FY21 Guidance (Non-GAAP) Guidance is based on our expectations as of today and will not be updated or confirmed as of any other date Q4 FY20 Q1 FY21 $ in millions Actual Guidance except for EPS, % of revenue Revenue $368.1 $430 - $455 Operating Margin 24.8% 28.0% – 30.0% Diluted EPS $1.18 $1.40 -
Slide 13: Lumentum
ZLUMENTUM