Apple supplier Lumentum slashes outlook after large customer requests shipment cut

Lumentum Holdings Inc. today announced updated business outlook for its fiscal second quarter 2019 based on a recent customer development.

“We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter,” said Alan Lowe, President and CEO, in a statement. “With our proven ability to deliver high volumes, years of experience, hundreds of millions of devices in the field, and new product and customer funnel, we remain confident in our leadership position in the nascent market for laser diodes for 3D sensing.”

Revised Net revenue, non-GAAP operating margin, and non-GAAP diluted earnings per share expectations along with the prior guidance range provided in the Company’s fiscal first quarter earnings release and earnings conference call on November 1, 2018 are provided in the table below.

Lumentum updated outlook Q219

More info here.

MacDailyNews Note: While Lumentum didn’t name the customer, its fiscal 2018 annual report in June listed Apple as its largest customer, accounting for 30% of Lumentum’s revenue.

Lumentum is one of the primary suppliers of Apple’s TrueDepth Camera system. Huawei and Ciena are Lumentum’s other two major customers, with each accounting for 11% of its revenue.

In pre-market trading following the news, shares of Apple (AAPL) dropped $4.81, (-2.26%) to $199.66.

Gene Munster: Apple has cornered the market in VCSELs, further expanding their AR lead – August 8, 2018
Piper Jaffray: Buy Apple-supplier Lumentum because demand for its 3D sensors will surge – July 2, 2018
Austria’s AMS AG, maker of Apple TrueDepth components, warns of short-term demand difficulties – April 24, 2018
Bernstein: AMS AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018


  1. The constant rumors of iPhone cuts have put Apple’s share price completely in the toilet from it’s high of around $230 or so. Apple had better be buying back stock at this drop below $200 a share. Same with Warren Buffett as he’s always claiming he wants to own more of Apple. Apple had definitely been buying back shares recently as the outstanding shares number is at 4.75B. Not a big drop but decreasing just the same.

    There doesn’t seem to be anything holding up Apple’s share price as the bottom looks ready to drop out. When it rains, it pours for Apple. I’m not worried, though. There are just those big investors who like to panic whenever things look a bit down for iPhone sales.

  2. there is also this in other articles today on Lumentum: :
    “Lumentum’s slashed guidance comes after some analysts have speculated that orders for Apple’s iPhone XR have been weaker than expected. On the other hand, analysts have said there could be market share shifts among Lumentum, Finisar and II-VI as suppliers to Apple.

    II-VI said it’s shipments of 3D sensors popped 200% in the September quarter. The company reported earnings on Nov. 1 and upped guidance.

    II-VI last week agreed to buy Finisar for $3.2 billion in a cash-and-stock deal.

    Apple invested $390 million in Finisar in December 2017 so it could ramp up manufacturing of 3D sensors in a new plant.”

  3. Woke up to this morning, with two different contradict news.
    1) Apple (AAPL) was the top-selling mobile phone brand during Alibaba’s record-breaking 24-hour Singles Day shopping event, beating its Chinese rivals. Chinese players Huawei and Xiaomi were second and third, respectively.
    2) then Apple slips after supplier cuts guidance.
    It’s so much fun to see analysts getting dizzy on spin around on the reports.

  4. AAPL shares are getting absolutely b!tchslapped now, -$9.75 and still dropping. Massive, wholesale liquidation of shares going on.

    Trading is extremely high volume, 17.3 million shares traded the first hour, vs 34 million average per day.

    Relentless selling of AAPL.

    Nice job Pipeline. You must be so proud of yourself.

  5. Again, market manipulation. Just before Christmas…

    Hop in and wait for the next earning.

    I have to admit, the Xr should’ve been the SE in size and then the sales would’ve gone woooof!

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