Citing an unexpected pause in orders from a major network equipment vender, Lumentum trimmed its financial outlook saying it now expects revenue for its fiscal third quarter 2023 to be in the range of $380 to $384 million, compared to the company’s previous expectation of $430 to $460 million.
“Late in our fiscal 2023 third quarter, a network equipment manufacturer who represented more than 10 percent of our fiscal second quarter revenue informed us that due to their inventory management, they would not take the shipments we had originally projected for the quarter,” said Alan Lowe, Lumentum President and CEO. “This shortfall is the primary reason that our fiscal 2023 third quarter revenue will be below the low end of our prior guidance range. Looking ahead, we expect a similar level of shipments to this customer in our fiscal Q4, as we saw in Q3. Nevertheless, our customer relationship remains strong, and we continue to work together closely to help them achieve success.”
Mr. Lowe continued, “We have confidence in our long-term strategy and operating model, and today we are announcing an increase in our share repurchase program.”
Lumentum’s board of directors recently approved an increase in its share repurchase program authorization to an aggregate amount of $1.2 billion and extended its duration through May 2025. Lumentum’s previously announced authorization was $1 billion through May 2024. As of April 1, 2023, Lumentum had used $615.5 million to repurchase 7.4 million shares. Lumentum expects to fund the repurchases under the extended share repurchase program out of its existing cash balance.
