Lumentum completes divestiture to CIG

Lumentum completed its previously-announced divestiture of certain Lumentum datacom transceiver product lines to Cambridge Industries Group (CIG).

The products were originally developed and manufactured by Oclaro Japan.

CIG also entered into a long-term strategic supply agreement for Lumentum's photonic chips.

"The closing of the transaction with CIG is a key milestone in the shift in Lumentum's strategy to focus on photonic chips while continuing to participate in the anticipated large growth in datacom transceiver volumes driven by datacenter expansion and 5G wireless over the coming years," said Walter Jankovic, Lumentum's Senior Vice President and General Manager, Datacom. "We are highly focused on accelerating innovation at the photonic chip level and have a strong pipeline of new chip products."

As a result of the timing of the divestiture close, which occurred following the end of the fiscal third quarter, the divestiture will not impact Lumentum's financial results for the fiscal third quarter ended March 30, 2019.  Lumentum expects revenue from datacom transceivers will decline in the fiscal fourth quarter relative to the fiscal third quarter by approximately $20 million to $25 million, with approximately $20 million of the decline related to the divestiture and an additional $5 million due to continuing declines in remaining datacom transceiver revenues.