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Here are 1-2 brief analogies to describe Lumentum (LITE):

• Qualcomm for 3D sensing: Lumentum provides the critical laser components that enable features like facial recognition in smartphones and LiDAR for autonomous vehicles, similar to Qualcomm's role in mobile chipsets.
• Broadcom for optical networking: Lumentum supplies essential optical components and lasers that power high-speed internet and data centers, akin to Broadcom's foundational role in networking semiconductors.

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• Optical Communications Products: Provides components and subsystems, such as transceivers and tunable lasers, enabling high-speed fiber optic networks for telecommunications and data center applications.
• Commercial Lasers: Manufactures industrial lasers, including fiber, diode, and ultrafast lasers, utilized for precision materials processing, medical applications, and scientific research.
• 3D Sensing and Lidar Components: Develops Vertical-Cavity Surface-Emitting Lasers (VCSELs) and other optical components essential for 3D sensing in consumer electronics and LiDAR systems for autonomous vehicles.

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Lumentum (symbol: LITE) primarily sells its products to other companies (B2B).

Its major customers include:

• Apple Inc. (AAPL) - Apple has been a significant customer for Lumentum, particularly for its 3D sensing components used in consumer electronics, accounting for 10% or more of Lumentum's net revenue in recent fiscal years.
• Cisco Systems, Inc. (CSCO) - Cisco is a major, long-standing customer that purchases Lumentum's optical components and modules for its networking equipment, including routers and switches used in telecom networks and data centers.

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Michael Hurlston, President and Chief Executive Officer

Michael Hurlston joined Lumentum as President and Chief Executive Officer in 2025. He brings over 30 years of senior leadership experience within the technology industry. Prior to Lumentum, he served as President and Chief Executive Officer at Synaptics, Inc. Before Synaptics, Hurlston was the Chief Executive Officer of Finisar Corporation, where he oversaw the company's agreement to be acquired by II-VI. He also held various senior leadership positions across sales, marketing, and general management functions at Broadcom Limited. Hurlston has served on the Board of Directors and the Audit Committee of Flex Ltd. since September 2020 and is also a member of the Board and Compensation Committee for Astera Labs, Inc.

Wajid Ali, Executive Vice President and Chief Financial Officer

Wajid Ali joined Lumentum in February 2019 and is responsible for overseeing the company's overall financial operations. He is a seasoned public company CFO with over 20 years of experience in the technology industry. Prior to Lumentum, Ali was the Senior Vice President and Chief Financial Officer at Synaptics. Before Synaptics, he was Vice President and Controller at Teledyne Technologies. He also served as Chief Financial Officer at DALSA Corp., a semiconductor company that was acquired by Teledyne in 2011. Ali held key financial management positions at AMD and ATI, overseeing finance functions for large business groups.

Michael Brooker, Executive Vice President, Chief Transformation Officer

Michael Brooker joined Lumentum in March 2025, bringing 20 years of senior leadership experience in leveraging information technology to drive business transformation and operational excellence. Before joining Lumentum, he spent a decade in key leadership roles at Synaptics, where he served as Senior Vice President of Information Technology and Chief Information Officer, and most recently as Chief Transformation Officer.

Vince Retort, Executive Vice President, Module Business Unit R&D and Product Development

Vince Retort has been with Lumentum since 2015 and is an industry veteran with over 35 years of experience in the high-tech sector. Prior to his current role, Retort served as President of Lumentum's Industrial Tech Platform and Chief Business Officer. He also oversaw and set strategic direction for all Lumentum business units as Executive Vice President and Chief Operating Officer. Earlier in his career, he had an 11-year tenure at Read-Rite Corporation, leading Product Engineering, Test Development, Failure Analysis, and Program Management.

Wupen Yuen, President, Global Business Units

Wupen Yuen serves as President, Global Business Units at Lumentum.

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The key risks to Lumentum's business include:

1. Customer Concentration: Lumentum is heavily reliant on a limited number of hyperscale customers. Any reduction in orders, shift to competitors, or financial challenges faced by these key customers could significantly impact Lumentum's revenue and market position.
2. Supply Chain Constraints and Manufacturing Capacity: While demand often outstrips supply, prolonged supply chain constraints or challenges in expanding manufacturing capacity in a timely manner could hinder growth and the company's ability to meet aggressive targets for new product adoption.
3. Intense Market Competition and Pricing Pressure: Lumentum operates in a highly competitive market characterized by rapid technological advancements and aggressive pricing strategies. This can lead to pricing pressures and margin compression, requiring continuous innovation and cost efficiencies to maintain market position.

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Lumentum Holdings Inc. (LITE) participates in several significant addressable markets through its core product and service offerings:

• Optical Communications: This segment includes high-performance lasers, modulators, detectors, optical amplifiers, passive components, and coherent optical components used in telecom, datacom, cloud networking, and AI infrastructure.

  The global datacom optical components market is projected to reach $16 billion in 2025, with the broader optical transceiver market expected to grow at a 13.7% annual rate to $25.7 billion by 2030.

• 3D Sensing: Lumentum is a leading provider of Vertical-Cavity Surface-Emitting Lasers (VCSELs) for 3D sensing applications such as facial recognition in mobile devices, LiDAR for autonomous driving, and other applications in consumer electronics, automotive, and industrial sectors.

  The global 3D sensors market is projected to increase from US$ 7.09 billion in 2025 to US$ 19.9 billion by 2032, demonstrating a compound annual growth rate (CAGR) of 16.1%. Another estimate indicates the global 3D imaging and sensing market will grow from $6.8 billion in 2020 to $15 billion in 2026, at a CAGR of 14.5%.

• Commercial Lasers: This segment encompasses fiber lasers, diode lasers, and solid-state lasers utilized in precision manufacturing, medical, and scientific applications.

  The global laser technology market, which includes commercial lasers, was valued at USD 16.83 billion in 2023 and is anticipated to reach USD 34.07 billion by 2033, growing at a CAGR of 7.31%. More specifically, the industrial laser market is forecasted to grow by USD 3.53 billion during 2024-2029, with an acceleration at a CAGR of 8.5%.

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Lumentum (LITE) Future Revenue Growth Drivers (Next 2-3 Years)

1. Strong Demand for Cloud Transceivers: Lumentum anticipates sustained and accelerating growth in its cloud transceiver business. This is a critical component for the ongoing expansion of cloud infrastructure and the rapidly increasing demands of Artificial Intelligence (AI) applications. The company expects this upward trajectory to accelerate over the next four to five quarters, with a target of $250 million in quarterly transceiver revenue.
2. Expansion into Optical Circuit Switches (OCS): Optical Circuit Switches are identified by Lumentum as a key "next major growth engine." While meaningful revenue contributions were not expected in the immediate next quarter (Q2 FY2026), these products are integral to the company's longer-term strategy for high-performance AI infrastructure and are expected to ramp up.
3. Emergence of Co-Packaged Optics (CPO): Co-Packaged Optics represent another significant future growth driver for Lumentum. The CPO industry is approaching a critical breakthrough, with mass production anticipated by 2025 and a substantial market shift expected by 2027. CPO technology offers performance benefits by integrating optical engines and switch chips, driven by the increasing computing power demands of AI, and is projected to yield profit margins exceeding those of traditional transceivers.
4. Overall Growth in Cloud and AI Infrastructure: An overarching driver for Lumentum is the insatiable demand from the cloud and AI infrastructure sectors. The company estimates that over 60% of its total revenue is now derived from cloud and AI infrastructure, both directly from hyperscale customers and indirectly through network equipment and optical transceiver manufacturers. This robust demand fuels the need for Lumentum's laser chips, optical transceivers, and other optical components that enable scalable and energy-efficient AI systems.

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Share Repurchases

• In March 2022, Lumentum's Board of Directors authorized an increase to its share repurchase program to $1 billion, superseding a $700 million program announced in May 2021. This program was set to expire in May 2024.
• The company utilized cash for common stock repurchases under its share buyback program in fiscal year 2023.
• Share repurchases were part of Lumentum's financial strategies, as noted in their May 2025 10-Q filing.

Share Issuance

• In June 2023, Lumentum issued $603.7 million in aggregate principal amount of convertible notes due in 2029.
• In November 2023, stockholders approved an amendment to the 2015 Equity Incentive Plan, increasing the number of shares reserved for issuance by an additional 3,000,000 shares.
• As of June 29, 2024, Lumentum had 4,549,358 securities to be issued under outstanding equity plans and 4,311,568 securities remaining available for future issuance, including shares reserved under the Cloud Light Share Option Scheme.

Outbound Investments

• In October 2023, Lumentum acquired Cloud Light Technology, a Hong Kong-based manufacturer of optical modules and sensors, for $750 million.
• Lumentum completed its acquisition of NeoPhotonics Corporation in August 2022, with NeoPhotonics stockholders receiving $16.00 in cash per share. This acquisition was initially valued at $918 million in November 2021 and was expected to generate over $50 million in annual run-rate synergies within 24 months.

Capital Expenditures

• Lumentum's cash used in investing activities for fiscal year 2023 was $874.0 million.
• In August 2025, Lumentum announced a significant capacity expansion of its U.S.-based semiconductor facility, investing in high-power laser production to support the U.S. AI infrastructure supply chain. This investment aims to expand EML production capacity, with demand anticipated to exceed supply for the next five years.
• For the fiscal year ending June 30, 2025, cash flow from investing activities was reported as -$84.1 million.