Lumentum reported net revenue for the fiscal third quarter of 2018 of $298.8 million, with GAAP net income of $2.7 million, or $0.04 per diluted share.
Non-GAAP net income for the fiscal third quarter of 2018 was $50.6 million, or $0.78 per diluted share. Non-GAAP net income for fiscal second quarter of 2018 was $107.8 million, or $1.67 per diluted share. Non-GAAP net income for the fiscal third quarter of 2017 was $30.8 million, or $0.49 per diluted share.
"Our strategy of investing in differentiated products and technologies, focusing on close relationships with market leading customers, and leveraging our technologies across multiple growing end markets, is working. Driven by strong customer demand and execution on capacity expansion, in the third quarter we achieved new record Lasers revenues, which increased 18% sequentially, and grew Telecom revenues by more than 11% sequentially, with notable strength in ROADMs, which were up 27% sequentially," said Alan Lowe, President and CEO. "Though seasonally down, we made good progress on new 3D sensing customer programs and are well positioned for new customer product introductions during FY19. During the third quarter, we announced reaching an agreement to acquire Oclaro and we continue to work with Oclaro on this pending transaction."
Lumentum to acquire Oclaro for $1.8 billion
Lumentum agreed to acquire Oclaro for approximately $1.8 billion in cash and stock.Under the deal, Oclaro stockholders will be entitled to receive $5.60 in cash and 0.0636 of a share of Lumentum common stock for each share of Oclaro stock, representing a premium of 27% to Oclaro's closing price on March 9, 2018 and a premium of 40% to Oclaro's 30 day average closing price. Oclaro stockholders are expected to own approximately 16% of the combined company at closing.
The combined company is expected to have annual revenue of $1.733 billion and an operating margin of 19%, prior to synergies from the combination.
Lumentum, which is based in Milpitas, California, supplies a range of optical components and subsystems for telecom, enterprise, and data center networking equipment. The company was created in 2015 as a split off from JDSU.
Oclaro supplies optical components and modules for the long-haul, metro and data center markets. The company is based in San Jose, California.
