The chart attached above provides a breakdown of Lumentum Holdings Revenue by Segment. Lumentum is an industry leading provider of optical and photonic products defined by revenue and market share addressing a range of end-market applications including optical communications and commercial lasers.
They see the world as becoming more reliant on ever-increasing amounts of data flowing through optical networks and data centers, which demand new networks and data centers to be built to satisfy this insatiable demand for data. As higher levels of precision, new materials, factory and energy efficiency are being demanded by manufacturers, suppliers of manufacturing tools globally are turning more and more to laser-based approaches, including the types of lasers Lumentum supplies.
Laser based 3D sensing is a rapidly developing market. The technology enables computer vision applications that enhance security, safety, and new functionality in the electronic devices that people rely on every day. They believe the global markets in which Lumentum participates have fundamentally robust, long-term trends that increase the need for their photonics products and technologies.
During fiscal 2018, they made good progress on their key strategic objectives that accelerated growth, margin expansion, and customer and end-market diversification. They ramped new major product lines in 3D sensing for mobile devices and engaged numerous customers globally, which they believe will facilitate future product and customer expansion. The chart attached above provides a breakdown of Lumentum Holdings Revenue by Segment.
Lumentum Holdings Revenue by Segment
|Revenue By Segment||Q1 2018|
|Optical Communications||$207.9 million|
|Commercial Lasers||$35.3 million|
They have two operating segments, Optical Communications, which they refer to as OpComms, and Commercial Lasers, which they refer to as Lasers. Their OpComms products address the following markets: telecommunications (“Telecom”), data communications (“Datacom”), and consumer and industrial (“Consumer and Industrial”). The chart attached above provides a breakdown of Lumentum Holdings Revenue by Segment.
OpComms: Their OpComms products address the following markets: Telecom, Datacom and Consumer and Industrial.
Their OpComms products include a wide range of components, modules and subsystems to support and maintain customers including carrier networks for access (local), metro (intracity), long-haul (city-to-city and worldwide) and, submarine (undersea). Additionally, their products address enterprise, cloud, and data center applications, including SANs, LANs, and WANs. These products enable the transmission and transport of video, audio and text data over high-capacity fiber-optic cables.
They maintain leading positions in these fast growing OpComms markets through their extensive product portfolio, including ROADMs, tunable 10-gigabit small form-factor pluggable transceivers and tunable small form-factor pluggable transceivers. Their 10G, 40G legacy transceivers and a growing portfolio of 100G pluggable transceivers support LAN/SAN/WAN needs and the cloud for customers building enterprise and hyperscale data center networks. Additionally, they are engaging customers in the sale of laser chips for use in the manufacture of high-speed transceivers. The chart attached above provides a breakdown of Lumentum Holdings Revenue by Segment.
In the Consumer and Industrial market, their OpComms products include laser light sources, which are integrated into 3D sensing platforms being used in applications for mobile devices, gaming, computers, and other consumer electronics devices. New emerging applications include virtual and augmented reality, as well as automotive and industrial segments. Their products include VCSELs and edge emitting lasers which are used in 3D sensing depth imaging systems. These systems simplify the way people interact with technology by enabling the use of natural user interfaces. Systems are used for biometric identification, surveillance, and process efficiency, among numerous other application spaces. Emerging applications for this technology include various mobile device applications, autonomous vehicles, self-navigating robotics and drones in industrial applications and 3D capture of objects coupled with 3D printing. In addition, their industrial diode lasers are used primarily as pump sources for pulsed and CW Fiber Lasers.
Lasers: Their Lasers products serve their customers in markets and applications such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining such as drilling in printed circuit boards, wafer singulation, glass cutting and solar cell scribing.
Their Lasers products are used in a variety of OEM applications including diode-pumped solid-state, fiber, diode, direct-diode and gas lasers such as argon-ion and helium-neon lasers. Fiber lasers provide kW-class output powers combined with excellent beam quality and are used in sheet metal processing and metal welding applications. Diode-pumped solid-state lasers provide
excellent beam quality, low noise and exceptional reliability and are used in biotechnology, graphics and imaging, remote sensing, materials processing and precision machining applications. Diode and direct-diode lasers address a wide variety of applications, including laser pumping, thermal exposure, illumination, ophthalmology, image recording, printing, plastic welding and selective soldering. Gas lasers such as argon-ion and helium-neon lasers provide a stable, low-cost and reliable solution over a wide range of operating conditions, making them well suited for complex, high-resolution OEM applications such as flow cytometry, DNA sequencing, graphics and imaging and semiconductor inspection.
They also provide high-powered and ultrafast lasers for the industrial and scientific markets. Manufacturers use high-power, ultrafast lasers to create micro parts for consumer electronics and to process semiconductor, LED, and other types of chips. Use of ultrafast lasers for micromachining applications is being driven primarily by the increasing use of consumer electronics and connected devices globally.
They do not allocate research and development, sales and marketing, or general and administrative expenses to their segments because management does not include the information in its measurement of the performance of the operating segments. In addition, they do not allocate amortization and impairment of acquisition-related intangible assets, stock-based compensation and certain other charges impacting the gross margin of each segment because management does not include this information in its measurement of the performance of the operating segments.
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