Lumentum discontinues shipments to Huawei

Lumentum has discontinued all shipments to Huawei effective as of the date the licensing requirements went into effect and cannot predict when it will be able to resume shipments, a press release reads. The financial guidance ranges Lumentum provided for its fourth quarter 2019 did not contemplate this Department of Commerce order, the discontinuation of sales to Huawei, or the time required to repurpose manufacturing capacity to other customers. Accordingly, the Company is providing revised net revenue and non-GAAP operating margin expectations. Lumentum now expects net revenues of USD 375 millin to USD 390 million while the previous guidance was USD 405 million USD 425 million. the updated outlook for Non-GAAP operating margin sits at 15% to 17% compared to the prior 18% to 20%. For the fiscal year ended June 30, 2018, sales to Huawei represented 11% of total revenue. For the fiscal third quarter of 2019, ended March 30, 2019, sales to Huawei represented approximately 18% of total revenue and for fiscal year 2019 year to date sales to Huawei represented approximately 15% of total revenue.