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Delaware
|
|
47-3108385
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
|
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|
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Emerging growth company
|
o
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, par value of $0.001 per share
|
LITE
|
Nasdaq Global Select Market
|
|
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TABLE OF CONTENTS
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|||
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Page
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|||
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|||
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|||
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Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Net revenue
|
$
|
432.9
|
|
|
$
|
298.8
|
|
|
$
|
1,160.7
|
|
|
$
|
946.6
|
|
Cost of sales
|
316.5
|
|
|
201.0
|
|
|
788.3
|
|
|
607.6
|
|
||||
Amortization of acquired intangibles
|
28.1
|
|
|
0.8
|
|
|
33.3
|
|
|
2.4
|
|
||||
Gross profit
|
88.3
|
|
|
97.0
|
|
|
339.1
|
|
|
336.6
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
57.7
|
|
|
38.2
|
|
|
135.1
|
|
|
118.3
|
|
||||
Selling, general and administrative
|
55.2
|
|
|
33.2
|
|
|
150.9
|
|
|
95.5
|
|
||||
Restructuring and related charges
|
21.1
|
|
|
0.1
|
|
|
30.2
|
|
|
3.8
|
|
||||
Impairment charge
|
30.7
|
|
|
—
|
|
|
30.7
|
|
|
—
|
|
||||
Total operating expenses
|
164.7
|
|
|
71.5
|
|
|
346.9
|
|
|
217.6
|
|
||||
Income/(loss) from operations
|
(76.4
|
)
|
|
25.5
|
|
|
(7.8
|
)
|
|
119.0
|
|
||||
Unrealized gain (loss) on derivative liability
|
—
|
|
|
(20.7
|
)
|
|
8.8
|
|
|
(8.6
|
)
|
||||
Interest and other income (expense), net
|
(6.1
|
)
|
|
(2.1
|
)
|
|
(13.2
|
)
|
|
(8.7
|
)
|
||||
Income/(loss) before income taxes
|
(82.5
|
)
|
|
2.7
|
|
|
(12.2
|
)
|
|
101.7
|
|
||||
Provision for (benefit from) income taxes
|
(8.2
|
)
|
|
—
|
|
|
(1.6
|
)
|
|
(112.9
|
)
|
||||
Net income/(loss)
|
$
|
(74.3
|
)
|
|
$
|
2.7
|
|
|
$
|
(10.6
|
)
|
|
$
|
214.6
|
|
|
|
|
|
|
|
|
|
||||||||
Items reconciling net income/(loss) to net income/(loss) attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Less: Cumulative dividends on Series A Preferred Stock
|
—
|
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
||||
Less: Earnings allocated to Series A Preferred Stock
|
—
|
|
|
(0.1
|
)
|
|
(1.2
|
)
|
|
(4.9
|
)
|
||||
Net income/(loss) attributable to common stockholders - Basic
|
$
|
(74.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(12.1
|
)
|
|
$
|
209.0
|
|
Add: Earnings allocated to Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Add/Less: Unrealized (gain) loss on derivative liability on Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Add: Cumulative dividends on Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income/(loss) attributable to common stockholders - Diluted
(a)
|
$
|
(74.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(12.1
|
)
|
|
$
|
209.0
|
|
|
|
|
|
|
|
|
|
||||||||
Net income/(loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.98
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.18
|
)
|
|
$
|
3.37
|
|
Diluted
|
$
|
(0.98
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.18
|
)
|
|
$
|
3.31
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used to compute net income/(loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
76.2
|
|
|
62.4
|
|
|
68.7
|
|
|
62.1
|
|
||||
Diluted
|
76.2
|
|
|
63.3
|
|
|
68.7
|
|
|
63.2
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Net income/(loss)
|
$
|
(74.3
|
)
|
|
$
|
2.7
|
|
|
$
|
(10.6
|
)
|
|
$
|
214.6
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Net change in cumulative translation adjustment
|
—
|
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
1.9
|
|
||||
Net change in unrealized gain (loss) on available-for-sale securities
|
1.3
|
|
|
(1.3
|
)
|
|
1.8
|
|
|
(2.0
|
)
|
||||
Net change in defined benefit obligation, net of tax
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
||||
Other comprehensive income (loss), net of tax
|
1.3
|
|
|
(1.4
|
)
|
|
1.1
|
|
|
(0.1
|
)
|
||||
Comprehensive income (loss), net of tax
|
$
|
(73.0
|
)
|
|
$
|
1.3
|
|
|
$
|
(9.5
|
)
|
|
$
|
214.5
|
|
|
March 30, 2019
|
|
June 30, 2018
|
||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
357.3
|
|
|
$
|
397.3
|
|
Short-term investments
|
340.2
|
|
|
314.2
|
|
||
Accounts receivable, net
|
302.9
|
|
|
197.1
|
|
||
Inventories
|
272.2
|
|
|
153.6
|
|
||
Prepayments and other current assets
|
107.0
|
|
|
65.0
|
|
||
Assets held-for-sale
|
38.5
|
|
|
—
|
|
||
Total current assets
|
1,418.1
|
|
|
1,127.2
|
|
||
Property, plant and equipment, net
|
390.6
|
|
|
306.9
|
|
||
Goodwill
|
359.8
|
|
|
11.3
|
|
||
Other intangible assets, net
|
412.3
|
|
|
7.0
|
|
||
Deferred income taxes
|
172.2
|
|
|
125.6
|
|
||
Other non-current assets
|
18.4
|
|
|
3.5
|
|
||
Total assets
|
$
|
2,771.4
|
|
|
$
|
1,581.5
|
|
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
204.1
|
|
|
$
|
126.5
|
|
Accrued payroll and related expenses
|
41.4
|
|
|
31.5
|
|
||
Accrued expenses
|
54.4
|
|
|
33.9
|
|
||
Term loan, current
|
5.0
|
|
|
—
|
|
||
Other current liabilities
|
46.7
|
|
|
22.1
|
|
||
Liabilities held-for-sale
|
6.4
|
|
|
—
|
|
||
Total current liabilities
|
358.0
|
|
|
214.0
|
|
||
Convertible notes
|
347.4
|
|
|
334.2
|
|
||
Term loan, non-current
|
484.9
|
|
|
—
|
|
||
Derivative liability
|
—
|
|
|
52.4
|
|
||
Deferred tax liability
|
55.8
|
|
|
0.3
|
|
||
Other non-current liabilities
|
21.4
|
|
|
18.7
|
|
||
Total liabilities
|
1,267.5
|
|
|
619.6
|
|
||
Commitments and contingencies (Note 18)
|
|
|
|
||||
Redeemable convertible preferred stock:
|
|
|
|
||||
Non-controlling interest redeemable convertible Series A Preferred Stock, $0.001 par value, 10,000,000 authorized shares; zero and 35,805 shares issued and outstanding as of March 30, 2019 and June 30, 2018, respectively
|
—
|
|
|
35.8
|
|
||
Total redeemable convertible preferred stock
|
—
|
|
|
35.8
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $0.001 par value, 990,000,000 authorized shares, 76,349,298 and 62,790,087 shares issued and outstanding as of March 30, 2019 and June 30, 2018, respectively
|
0.1
|
|
|
0.1
|
|
||
Additional paid-in capital
|
1,341.4
|
|
|
753.2
|
|
||
Retained earnings
|
154.9
|
|
|
166.4
|
|
||
Accumulated other comprehensive income
|
7.5
|
|
|
6.4
|
|
||
Total stockholders’ equity
|
1,503.9
|
|
|
926.1
|
|
||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity
|
$
|
2,771.4
|
|
|
$
|
1,581.5
|
|
|
|
|
|
|
Nine Month Period Ended March 30, 2019
|
|
||||||||||||||||||||||||
|
|
Non-Controlling Interest Redeemable Convertible Series A Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Common Stock
|
|
Additional Paid-In
|
|
|
|
Accumulated
Other Comprehensive Income/(Loss)
|
|
Total Invested Equity /
Total Stockholders' Equity
|
|||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
Retained Earnings
|
|
|
|||||||||||||||||
Balance as of June 30, 2018
|
|
—
|
|
|
$
|
35.8
|
|
|
62.8
|
|
|
$
|
0.1
|
|
|
$
|
753.2
|
|
|
$
|
166.4
|
|
|
$
|
6.4
|
|
|
$
|
926.1
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.4
|
|
|
—
|
|
|
47.4
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
||||||
Declared dividend for preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Issuance of shares pursuant to equity plans, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
||||||
Cumulative-effect adjustment for adoption of Topic 606
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
||||||
Balance as of September 29, 2018
|
|
—
|
|
|
35.8
|
|
|
63.3
|
|
|
0.1
|
|
|
763.5
|
|
|
213.0
|
|
|
6.9
|
|
|
983.5
|
|
||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.3
|
|
|
—
|
|
|
16.3
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
||||||
Declared dividend for preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||||
Issuance of shares pursuant to equity plans, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||||
Issuance of shares pursuant to merger agreement, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
11.0
|
|
|
—
|
|
|
460.1
|
|
|
—
|
|
|
—
|
|
|
460.1
|
|
||||||
ESPP shares issued
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.3
|
|
|
—
|
|
|
—
|
|
|
17.3
|
|
||||||
Conversion of preferred stock to common stock
|
|
—
|
|
|
(35.8
|
)
|
|
1.5
|
|
|
—
|
|
|
79.4
|
|
|
—
|
|
|
—
|
|
|
79.4
|
|
||||||
Balance as of December 29, 2018
|
|
—
|
|
|
—
|
|
|
76.1
|
|
|
0.1
|
|
|
1,324.2
|
|
|
229.2
|
|
|
6.2
|
|
|
1,559.7
|
|
||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(74.3
|
)
|
|
—
|
|
|
(74.3
|
)
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
||||||
Issuance of shares pursuant to equity plans, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
|
—
|
|
|
17.1
|
|
||||||
Balance as of March 30, 2019
|
|
—
|
|
|
$
|
—
|
|
|
76.3
|
|
|
$
|
0.1
|
|
|
$
|
1,341.4
|
|
|
$
|
154.9
|
|
|
$
|
7.5
|
|
|
$
|
1,503.9
|
|
|
|
|
|
|
Nine-Month Period Ended March 31, 2018
|
|
||||||||||||||||||||||||
|
|
Non-Controlling Interest Redeemable Convertible
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
Total Invested Equity /
|
||||||||||||||||
|
|
Series A Preferred Stock
|
|
Common Stock
|
|
Additional Paid-In
|
|
Retained Earnings
|
|
Other Comprehensive
|
|
Total Stockholders'
|
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
(Accumulated Deficit)
|
|
Income/(Loss)
|
|
Equity
|
||||||||||||||
Balance as of July 1, 2017
|
|
—
|
|
|
$
|
35.8
|
|
|
61.5
|
|
|
$
|
0.1
|
|
|
$
|
694.5
|
|
|
$
|
(83.2
|
)
|
|
$
|
7.4
|
|
|
$
|
618.8
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
|
7.1
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|
1.8
|
|
||||||
Declared dividend for preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Issuance of shares pursuant to equity plans, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
|
—
|
|
|
9.3
|
|
||||||
Cumulative effect of stock compensation accounting change
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
2.4
|
|
|
—
|
|
|
2.6
|
|
||||||
Balance as of September 30, 2017
|
|
—
|
|
|
35.8
|
|
|
62.0
|
|
|
0.1
|
|
|
705.7
|
|
|
(73.9
|
)
|
|
9.2
|
|
|
641.1
|
|
||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204.8
|
|
|
—
|
|
|
204.8
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||||
Declared dividend for preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Issuance of shares pursuant to equity plans, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
ESPP shares issued
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
14.7
|
|
||||||
Balance as of December 30, 2017
|
|
—
|
|
|
35.8
|
|
|
62.3
|
|
|
0.1
|
|
|
724.8
|
|
|
130.7
|
|
|
8.7
|
|
|
864.3
|
|
||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
2.7
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||||
Declared dividend for preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Issuance of shares pursuant to equity plans, net of tax withholdings
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
|
11.2
|
|
||||||
Balance as of March 31, 2018
|
|
—
|
|
|
$
|
35.8
|
|
|
62.6
|
|
|
$
|
0.1
|
|
|
$
|
736.0
|
|
|
$
|
133.2
|
|
|
$
|
7.3
|
|
|
$
|
876.6
|
|
|
Nine Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income/(loss)
|
$
|
(10.6
|
)
|
|
$
|
214.6
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation expense
|
74.7
|
|
|
53.3
|
|
||
Stock-based compensation
|
46.5
|
|
|
35.1
|
|
||
Unrealized (gain) loss on derivative liability
|
(8.8
|
)
|
|
8.6
|
|
||
Amortization of acquired intangibles
|
37.7
|
|
|
2.4
|
|
||
Impairment charges and others
|
30.7
|
|
|
0.5
|
|
||
Amortization of discount on 0.25% Convertible Notes due 2024
|
13.2
|
|
|
12.4
|
|
||
Amortization of deferred debt issuance cost on term loan
|
0.4
|
|
|
—
|
|
||
Amortization of inventory fair value adjustment in connection with Oclaro acquisition
|
15.8
|
|
|
—
|
|
||
Amortization of favorable/unfavorable leases
|
0.3
|
|
|
|
|||
Release of valuation allowance, net
|
—
|
|
|
(124.0
|
)
|
||
Others
|
(0.5
|
)
|
|
0.3
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(37.2
|
)
|
|
1.6
|
|
||
Inventories
|
14.0
|
|
|
1.1
|
|
||
Prepayments and other current and non-currents assets
|
(10.6
|
)
|
|
1.9
|
|
||
Income taxes, net
|
(5.1
|
)
|
|
(0.5
|
)
|
||
Accounts payable
|
15.7
|
|
|
(15.9
|
)
|
||
Accrued payroll and related expenses
|
(1.4
|
)
|
|
5.6
|
|
||
Accrued expenses and other current and non-current liabilities
|
27.6
|
|
|
12.9
|
|
||
Net cash provided by operating activities
|
202.4
|
|
|
209.9
|
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Payments for acquisition of property, plant and equipment
|
(80.5
|
)
|
|
(72.9
|
)
|
||
Payment for asset acquisition
|
(1.3
|
)
|
|
—
|
|
||
Payment for Oclaro acquisition, net of cash acquired
|
(619.8
|
)
|
|
—
|
|
||
Purchases of short-term investments
|
(196.1
|
)
|
|
(585.1
|
)
|
||
Proceeds from maturities and sales of short-term investments
|
172.4
|
|
|
349.3
|
|
||
Net cash used in investing activities
|
(725.3
|
)
|
|
(308.7
|
)
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Tax payments related to restricted stock
|
(2.4
|
)
|
|
—
|
|
||
Payment of dividends - Series A Preferred Stock
|
(0.7
|
)
|
|
(0.7
|
)
|
||
Payment of acquisition related holdback
|
(1.0
|
)
|
|
—
|
|
||
Proceeds from employee stock plans
|
4.7
|
|
|
4.4
|
|
||
Proceeds from term loan, net of debt issuance costs
|
490.8
|
|
|
—
|
|
||
Repayment of capital lease obligation
|
(6.1
|
)
|
|
(3.5
|
)
|
||
Proceeds from the exercise of stock options
|
0.1
|
|
|
1.7
|
|
||
Repayment of term loan
|
(1.3
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
484.1
|
|
|
1.9
|
|
||
Effect of exchange rates on cash and cash equivalents
|
(0.2
|
)
|
|
0.8
|
|
||
Increase (decrease) in cash and cash equivalents, including cash classified within assets held-for-sale
|
(39.0
|
)
|
|
(96.1
|
)
|
||
Cash and cash equivalents at beginning of period
|
397.3
|
|
|
272.9
|
|
||
Cash and cash equivalents at end of period
(1)
|
$
|
358.3
|
|
|
$
|
176.8
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for taxes
|
$
|
3.3
|
|
|
$
|
11.5
|
|
Cash paid for interest
|
8.7
|
|
|
1.2
|
|
||
|
|
|
|
||||
Supplemental disclosure of non-cash transactions:
|
|
|
|
||||
Unpaid property, plant and equipment in accounts payable and accrued expenses
|
$
|
26.0
|
|
|
$
|
10.5
|
|
Equipment acquired under capital lease
|
—
|
|
|
15.6
|
|
||
Issuance of common stock upon conversion of Series A Preferred Stock
|
79.4
|
|
|
—
|
|
||
Net transfer of assets from property plant and equipment to assets held-for-sale
|
31.4
|
|
|
—
|
|
||
Issuance of common stock and replacement awards in connection with Oclaro acquisition
|
460.1
|
|
|
—
|
|
•
|
identification of the contract, or contracts, with a customer;
|
•
|
identification of the performance obligations in the contract;
|
•
|
determination of the transaction price;
|
•
|
allocation of the transaction price to the performance obligations in the contract; and
|
•
|
recognition of revenues when, or as, the contractual performance obligations are satisfied.
|
Contract balances
|
Balance sheet location
|
March 30, 2019
|
|
June 30, 2018
|
|
Change
|
|
Percentage Change
|
Accounts receivable, net
|
Accounts receivable, net
|
$302.9
|
|
$197.1
|
|
$105.8
|
|
53.7%
|
Deferred revenue and customer deposits
|
Other
current liabilities
|
$4.2
|
|
$2.8
|
|
$1.4
|
|
50.0%
|
|
June 30, 2018
|
|
Adjustments
|
|
July 1, 2018
|
||||||
Assets:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
197.1
|
|
|
$
|
0.6
|
|
|
$
|
197.7
|
|
Inventories
|
153.6
|
|
|
(1.2
|
)
|
|
152.4
|
|
|||
Stockholders’ equity:
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
166.4
|
|
|
$
|
(0.6
|
)
|
|
$
|
165.8
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Basic Earnings per Common Share
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income/(loss)
|
$
|
(74.3
|
)
|
|
$
|
2.7
|
|
|
$
|
(10.6
|
)
|
|
$
|
214.6
|
|
Less: Cumulative dividends on Series A Preferred Stock
|
—
|
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
||||
Less: Earnings allocated to Series A Preferred Stock
|
—
|
|
|
(0.1
|
)
|
|
(1.2
|
)
|
|
(4.9
|
)
|
||||
Net income/(loss) attributable to common stockholders - Basic
|
$
|
(74.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(12.1
|
)
|
|
$
|
209.0
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding including Series A Preferred Stock
|
76.2
|
|
|
63.9
|
|
|
69.4
|
|
|
63.6
|
|
||||
Less: Weighted average Series A Preferred Stock
|
—
|
|
|
(1.5
|
)
|
|
(0.7
|
)
|
|
(1.5
|
)
|
||||
Basic weighted average common shares outstanding
|
76.2
|
|
|
62.4
|
|
|
68.7
|
|
|
62.1
|
|
||||
Net income/(loss) per share attributable to common stockholders - Basic
|
$
|
(0.98
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.18
|
)
|
|
$
|
3.37
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted Earnings per Common Share
|
|
|
|
|
|
|
|
||||||||
Net income/(loss) attributable to common stockholders - Basic
|
$
|
(74.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(12.1
|
)
|
|
$
|
209.0
|
|
Add: Earnings allocated to Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Add/Less: Unrealized (gain) loss on derivative liability on Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Add: Cumulative dividends on Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income/(loss) attributable to common stockholders - Diluted
(a)
|
$
|
(74.3
|
)
|
|
$
|
2.4
|
|
|
$
|
(12.1
|
)
|
|
$
|
209.0
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding for basic earnings per common share
|
76.2
|
|
|
62.4
|
|
|
68.7
|
|
|
62.1
|
|
||||
Effect of dilutive securities from 2015 Equity Incentive Plan
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.1
|
|
||||
Effect of dilutive securities from Series A Preferred Stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Diluted weighted average common shares outstanding
|
76.2
|
|
|
63.3
|
|
|
68.7
|
|
|
63.2
|
|
||||
Net income/(loss) per share attributable to common stockholders - Diluted
|
$
|
(0.98
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.18
|
)
|
|
$
|
3.31
|
|
|
Foreign currency translation adjustments, net of tax
|
|
Defined benefit obligations, net of tax
(1)
|
|
Unrealized gain (loss) on available-for-sale securities, net of tax
|
|
Total
|
||||||||
Beginning balance as of June 30, 2018
|
$
|
10.3
|
|
|
$
|
(2.3
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
6.4
|
|
Other comprehensive income (loss)
|
(0.6
|
)
|
|
(0.1
|
)
|
|
1.8
|
|
|
1.1
|
|
||||
Ending balance as of March 30, 2019
|
$
|
9.7
|
|
|
$
|
(2.4
|
)
|
|
$
|
0.2
|
|
|
$
|
7.5
|
|
•
|
0.0636
of a share of Lumentum common stock, par value
$0.001
per share (the “Exchange Ratio”).
|
|
Shares
|
Per Share
|
Total Consideration
(in millions)
|
|||||
Cash paid for outstanding Oclaro common stock
|
|
|
$
|
964.8
|
|
|||
Lumentum common shares issued to Oclaro stockholders
|
10,941,436
|
|
$
|
41.80
|
|
457.4
|
|
|
Replacement equity awards for Oclaro equity awards
|
|
|
2.7
|
|
||||
Total consideration
|
|
|
$
|
1,424.9
|
|
|
Purchase Price Allocation
|
||||||||
|
Previously reported
|
Measurement period adjustments
|
As adjusted
|
||||||
Cash and cash equivalents
|
$
|
345.0
|
|
$
|
—
|
|
$
|
345.0
|
|
Accounts receivable, net
|
68.0
|
|
|
68.0
|
|
||||
Inventories
|
153.2
|
|
0.9
|
|
154.1
|
|
|||
Prepayments and other current assets
|
33.7
|
|
|
33.7
|
|
||||
Property, plant and equipment, net
|
128.6
|
|
6.7
|
|
135.3
|
|
|||
Intangibles
|
444.0
|
|
|
444.0
|
|
||||
Deferred income tax asset
|
54.1
|
|
|
54.1
|
|
||||
Other non-current assets
|
16.6
|
|
|
16.6
|
|
||||
Accounts payable
|
(57.8
|
)
|
|
(57.8
|
)
|
||||
Accrued payroll and related expenses
|
(11.4
|
)
|
|
(11.4
|
)
|
||||
Accrued expenses
|
(8.3
|
)
|
|
(8.3
|
)
|
||||
Other current liabilities
|
(8.1
|
)
|
|
(8.1
|
)
|
||||
Deferred tax liability
|
(55.8
|
)
|
(20.1
|
)
|
(75.9
|
)
|
|||
Other non-current liabilities
|
(10.3
|
)
|
(2.6
|
)
|
(12.9
|
)
|
|||
Goodwill
|
333.4
|
|
15.1
|
|
348.5
|
|
|||
Total purchase price
|
$
|
1,424.9
|
|
$
|
—
|
|
$
|
1,424.9
|
|
|
Nine Months Ended
|
||||||
|
March 30, 2019
|
|
March 31, 2018
|
||||
|
|
|
|
|
|||
Net revenue
|
$
|
1,374.8
|
|
|
$
|
1,368.8
|
|
Net income (loss)
|
(18.2
|
)
|
|
161.5
|
|
|
Optical Communications
|
|
Commercial Lasers
|
|
Total
|
||||||
Balance as of December 29, 2018
|
$
|
5.9
|
|
|
$
|
5.4
|
|
|
$
|
11.3
|
|
Acquisition of Oclaro
|
333.4
|
|
|
—
|
|
|
333.4
|
|
|||
Measurement period adjustments
(1)
|
15.1
|
|
|
—
|
|
|
15.1
|
|
|||
Balance as of March 30, 2019
|
$
|
354.4
|
|
|
$
|
5.4
|
|
|
$
|
359.8
|
|
Intangible
|
|
Fair value
(in millions)
|
|
Weighted average amortization period
(in years)
|
||
Acquired developed technologies
|
|
$
|
182.0
|
|
|
4.4 years
|
Customer relationships
|
|
145.0
|
|
|
8 years
|
|
In-process research and development
(1)
|
|
94.0
|
|
|
n/a
|
|
Order backlog
|
|
22.0
|
|
|
1 year
|
|
Total intangible assets
(1)
|
|
$
|
443.0
|
|
|
|
March 30, 2019:
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||
Acquired developed technologies
|
$
|
287.5
|
|
|
$
|
(113.8
|
)
|
|
$
|
173.7
|
|
Customer relationships and order backlog
|
171.3
|
|
|
(26.7
|
)
|
|
144.6
|
|
|||
In-process research and development
(1)
|
94.0
|
|
|
—
|
|
|
94.0
|
|
|||
Other intangibles
|
2.7
|
|
|
(2.7
|
)
|
|
—
|
|
|||
Total intangible assets
(1)
|
$
|
555.5
|
|
|
$
|
(143.2
|
)
|
|
$
|
412.3
|
|
June 30, 2018:
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||
Acquired developed technologies
|
$
|
105.5
|
|
|
$
|
(98.5
|
)
|
|
$
|
7.0
|
|
Customer relationships
|
4.3
|
|
|
(4.3
|
)
|
|
—
|
|
|||
Other intangibles
|
2.7
|
|
|
(2.7
|
)
|
|
—
|
|
|||
Total intangible assets
|
$
|
112.5
|
|
|
$
|
(105.5
|
)
|
|
$
|
7.0
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Cost of sales
|
$
|
28.1
|
|
|
$
|
0.8
|
|
|
$
|
33.3
|
|
|
$
|
2.4
|
|
Selling, general and administrative
|
3.6
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
||||
Total
|
$
|
31.7
|
|
|
$
|
0.8
|
|
|
$
|
37.7
|
|
|
$
|
2.4
|
|
Fiscal Years
|
|
||
Remainder of 2019
|
$
|
16.9
|
|
2020
|
71.9
|
|
|
2021
|
66.3
|
|
|
2022
|
63.6
|
|
|
Thereafter
|
99.6
|
|
|
Total
|
$
|
318.3
|
|
|
March 30, 2019
|
||
Principal
|
$
|
500.0
|
|
Repayment of principal
|
(1.3
|
)
|
|
Unamortized value of the debt issuance costs
|
(8.8
|
)
|
|
Net carrying value
|
$
|
489.9
|
|
|
|
||
Term loan, current
|
$
|
5.0
|
|
Term loan, non-current
|
$
|
484.9
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Contractual interest expense
|
$
|
6.2
|
|
|
$
|
—
|
|
|
$
|
10.2
|
|
|
$
|
—
|
|
Amortization of the debt issuance costs
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Total interest expense
|
$
|
6.6
|
|
|
$
|
—
|
|
|
$
|
10.7
|
|
|
$
|
—
|
|
|
March 30, 2019
|
|
June 30, 2018
|
||||
Finished goods
|
$
|
94.9
|
|
|
$
|
98.2
|
|
Work in process
|
121.3
|
|
|
34.5
|
|
||
Raw materials and purchased parts
|
56.0
|
|
|
20.9
|
|
||
Inventories
(1) (2)
|
$
|
272.2
|
|
|
$
|
153.6
|
|
|
March 30, 2019
|
|
June 30, 2018
|
||||
Capitalized manufacturing overhead
|
$
|
14.1
|
|
|
$
|
20.5
|
|
Prepayments
|
28.8
|
|
|
19.5
|
|
||
Advances to contract manufacturers
|
8.3
|
|
|
14.0
|
|
||
Value added tax receivable
|
13.0
|
|
|
4.0
|
|
||
Vendor receivable
|
13.8
|
|
|
4.3
|
|
||
Other current assets
|
29.0
|
|
|
2.7
|
|
||
Prepayments and other current assets
|
$
|
107.0
|
|
|
$
|
65.0
|
|
|
March 30, 2019
|
|
June 30, 2018
|
||||
Land
|
$
|
10.6
|
|
|
$
|
10.6
|
|
Buildings and improvement
|
72.9
|
|
|
55.1
|
|
||
Machinery and equipment
(1)
|
502.7
|
|
|
463.6
|
|
||
Computer equipment and software
|
32.5
|
|
|
26.3
|
|
||
Furniture and fixtures
|
4.1
|
|
|
2.2
|
|
||
Leasehold improvements
|
31.4
|
|
|
25.8
|
|
||
Construction in progress
|
59.5
|
|
|
52.6
|
|
||
|
713.7
|
|
|
636.2
|
|
||
Less: Accumulated depreciation
(1)
|
(323.1
|
)
|
|
(329.3
|
)
|
||
Property, plant and equipment, net
(2)
|
$
|
390.6
|
|
|
$
|
306.9
|
|
|
March 30, 2019
|
|
June 30, 2018
|
||||
Warranty accrual
(1)
|
$
|
9.8
|
|
|
$
|
6.6
|
|
Restructuring accrual and related charges
(2)
|
18.0
|
|
|
1.9
|
|
||
Deferred revenue and customer deposits
|
4.2
|
|
|
2.8
|
|
||
Capital lease obligation
(3)
|
0.8
|
|
|
7.3
|
|
||
Income tax payable
(4)
|
8.5
|
|
|
0.7
|
|
||
Other current liabilities
|
5.4
|
|
|
2.8
|
|
||
Other current liabilities
(5)
|
$
|
46.7
|
|
|
$
|
22.1
|
|
|
March 30, 2019
|
|
June 30, 2018
|
||||
Asset retirement obligation
|
$
|
5.4
|
|
|
$
|
2.7
|
|
Pension and related accrual
(1)
|
6.4
|
|
|
3.5
|
|
||
Deferred rent
|
2.4
|
|
|
2.6
|
|
||
Unrecognized tax benefit
|
6.7
|
|
|
6.1
|
|
||
Capital lease obligation
|
0.1
|
|
|
0.4
|
|
||
Others
|
0.4
|
|
|
3.4
|
|
||
Other non-current liabilities
(2)
|
$
|
21.4
|
|
|
$
|
18.7
|
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
March 30, 2019:
|
|
|
|
|
|
|
|
||||||||
Cash
(1)
|
$
|
298.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
298.5
|
|
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
26.0
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
||||
Money market funds
|
10.3
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
||||
U.S. Treasury securities
|
23.5
|
|
|
—
|
|
|
—
|
|
|
23.5
|
|
||||
Total cash and cash equivalents
|
$
|
358.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
358.3
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
$
|
19.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19.3
|
|
Asset-backed securities
|
70.6
|
|
|
0.1
|
|
|
—
|
|
|
70.7
|
|
||||
Corporate debt securities
|
212.2
|
|
|
0.4
|
|
|
(0.3
|
)
|
|
212.3
|
|
||||
Municipal bonds
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
||||
Mortgage-backed securities
|
4.7
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
||||
Foreign government bonds
|
5.5
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
||||
U.S. Treasury securities
|
26.4
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
||||
Total short-term investments
|
$
|
340.0
|
|
|
$
|
0.5
|
|
|
$
|
(0.3
|
)
|
|
$
|
340.2
|
|
|
|
|
|
|
|
|
|
||||||||
June 30, 2018:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
103.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
103.6
|
|
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
3.0
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
||||
Commercial paper
|
112.1
|
|
|
—
|
|
|
—
|
|
|
112.1
|
|
||||
Money market funds
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
U.S. Treasury securities
|
143.6
|
|
|
—
|
|
|
—
|
|
|
143.6
|
|
||||
U.S. Agency securities
|
34.2
|
|
|
—
|
|
|
—
|
|
|
34.2
|
|
||||
Total cash and cash equivalents
|
$
|
397.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
397.3
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7.5
|
|
Commercial paper
|
10.5
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
||||
Asset-backed securities
|
68.0
|
|
|
—
|
|
|
(0.2
|
)
|
|
67.8
|
|
||||
Corporate debt securities
|
220.6
|
|
|
0.1
|
|
|
(1.5
|
)
|
|
219.2
|
|
||||
Municipal bonds
|
1.6
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
||||
Mortgage-backed securities
|
4.2
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
||||
Foreign government bonds
|
3.4
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
||||
Total short-term investments
|
$
|
315.8
|
|
|
$
|
0.1
|
|
|
$
|
(1.7
|
)
|
|
$
|
314.2
|
|
|
Less than 12 months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
March 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial paper
|
$
|
5.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.9
|
|
|
$
|
—
|
|
Asset-backed securities
|
13.1
|
|
|
—
|
|
|
15.9
|
|
|
—
|
|
|
29.0
|
|
|
—
|
|
||||||
Corporate debt securities
|
15.4
|
|
|
(0.1
|
)
|
|
84.8
|
|
|
(0.2
|
)
|
|
100.2
|
|
|
(0.3
|
)
|
||||||
Foreign government bonds
|
1.7
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
||||||
U.S. government bonds
|
14.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.8
|
|
|
—
|
|
||||||
Total
|
$
|
50.9
|
|
|
$
|
(0.1
|
)
|
|
$
|
102.8
|
|
|
$
|
(0.2
|
)
|
|
$
|
153.7
|
|
|
$
|
(0.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Certificates of deposit
|
$
|
5.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.4
|
|
|
$
|
—
|
|
Commercial paper
|
8.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
||||||
Asset-backed securities
|
66.6
|
|
|
(0.2
|
)
|
|
0.3
|
|
|
—
|
|
|
66.9
|
|
|
(0.2
|
)
|
||||||
Corporate debt securities
|
188.6
|
|
|
(1.5
|
)
|
|
2.0
|
|
|
—
|
|
|
190.6
|
|
|
(1.5
|
)
|
||||||
Municipal bonds
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||||
U.S. Agency securities
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
|
—
|
|
||||||
Foreign government bonds
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
||||||
Total
|
$
|
277.1
|
|
|
$
|
(1.7
|
)
|
|
$
|
2.3
|
|
|
$
|
—
|
|
|
$
|
279.4
|
|
|
$
|
(1.7
|
)
|
|
March 30, 2019
|
|
June 30, 2018
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Due in 1 year
|
$
|
186.1
|
|
|
$
|
186.0
|
|
|
$
|
150.1
|
|
|
$
|
149.6
|
|
Due in 1 year through 5 years
|
145.8
|
|
|
146.1
|
|
|
157.2
|
|
|
156.1
|
|
||||
Due in 5 years through 10 years
|
7.1
|
|
|
7.1
|
|
|
6.1
|
|
|
6.1
|
|
||||
Due after 10 years
|
1.0
|
|
|
1.0
|
|
|
2.4
|
|
|
2.4
|
|
||||
|
$
|
340.0
|
|
|
$
|
340.2
|
|
|
$
|
315.8
|
|
|
$
|
314.2
|
|
Level 1:
|
Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
|
Level 2:
|
Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.
|
Level 3:
|
Inputs are unobservable inputs based on our assumptions.
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
March 30, 2019:
(1)
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
$
|
—
|
|
|
$
|
26.0
|
|
|
$
|
—
|
|
|
$
|
26.0
|
|
Money market funds
|
10.3
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
||||
U.S. Treasury securities
|
23.5
|
|
|
—
|
|
|
—
|
|
|
23.5
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Commercial paper
|
—
|
|
|
19.3
|
|
|
—
|
|
|
19.3
|
|
||||
Asset-backed securities
|
—
|
|
|
70.7
|
|
|
—
|
|
|
70.7
|
|
||||
Corporate debt securities
|
—
|
|
|
212.3
|
|
|
—
|
|
|
212.3
|
|
||||
Municipal bonds
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
||||
Mortgage-backed securities
|
—
|
|
|
4.7
|
|
|
—
|
|
|
4.7
|
|
||||
Foreign government bonds
|
—
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
||||
U.S. Treasury securities
|
26.4
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
||||
Total assets
|
$
|
60.2
|
|
|
$
|
339.8
|
|
|
$
|
—
|
|
|
$
|
400.0
|
|
Other current liabilities:
|
|
|
|
|
|
|
|
||||||||
Acquisition contingencies
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.7
|
|
|
$
|
2.7
|
|
Total other accrued liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.7
|
|
|
$
|
2.7
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
June 30, 2018:
(1)
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
$
|
—
|
|
|
$
|
3.0
|
|
|
$
|
—
|
|
|
$
|
3.0
|
|
Commercial paper
|
—
|
|
|
112.1
|
|
|
—
|
|
|
112.1
|
|
||||
Money market funds
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
U.S. Treasury securities
|
143.6
|
|
|
—
|
|
|
—
|
|
|
143.6
|
|
||||
U.S. Agency securities
|
—
|
|
|
34.2
|
|
|
—
|
|
|
34.2
|
|
||||
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
—
|
|
|
7.5
|
|
|
—
|
|
|
7.5
|
|
||||
Commercial paper
|
—
|
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
||||
Asset-backed securities
|
—
|
|
|
67.8
|
|
|
—
|
|
|
67.8
|
|
||||
Corporate debt securities
|
—
|
|
|
219.2
|
|
|
—
|
|
|
219.2
|
|
||||
Municipal bonds
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
||||
Mortgage-backed securities
|
—
|
|
|
4.2
|
|
|
—
|
|
|
4.2
|
|
||||
Foreign government bonds
|
—
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
||||
Total assets
|
$
|
144.4
|
|
|
$
|
463.5
|
|
|
$
|
—
|
|
|
$
|
607.9
|
|
Other accrued liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
52.4
|
|
|
$
|
52.4
|
|
Acquisition contingencies
|
—
|
|
|
—
|
|
|
2.7
|
|
|
2.7
|
|
||||
Total other accrued liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55.1
|
|
|
$
|
55.1
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Balance as of beginning of period
|
$
|
—
|
|
|
$
|
(39.5
|
)
|
|
$
|
52.4
|
|
|
$
|
(51.6
|
)
|
Unrealized (gain) loss on the Series A Preferred Stock derivative liability up through the conversion date
|
—
|
|
|
(20.7
|
)
|
|
(8.8
|
)
|
|
(8.6
|
)
|
||||
Settlement of the derivative liability upon conversion of Series A Preferred Stock
|
—
|
|
|
—
|
|
|
(43.6
|
)
|
|
—
|
|
||||
Balance as of end of period
|
$
|
—
|
|
|
$
|
(60.2
|
)
|
|
$
|
—
|
|
|
$
|
(60.2
|
)
|
Liability component:
|
March 30, 2019
|
|
June 30, 2018
|
||||
Principal
|
$
|
450.0
|
|
|
$
|
450.0
|
|
Unamortized debt discount
|
(102.6
|
)
|
|
(115.8
|
)
|
||
Net carrying amount of the liability component
|
$
|
347.4
|
|
|
$
|
334.2
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Contractual interest expense
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.9
|
|
|
$
|
0.9
|
|
Amortization of the debt discount
|
4.5
|
|
|
4.2
|
|
|
13.2
|
|
|
12.4
|
|
||||
Total interest expense
|
$
|
4.8
|
|
|
$
|
4.5
|
|
|
$
|
14.1
|
|
|
$
|
13.3
|
|
Effective interest rate on the liability component
|
5.4
|
%
|
|
5.4
|
%
|
|
5.4
|
%
|
|
5.4
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Balance as of beginning of period
|
$
|
3.5
|
|
|
$
|
0.4
|
|
|
$
|
1.9
|
|
|
$
|
3.8
|
|
Charges
|
21.1
|
|
|
0.1
|
|
|
30.2
|
|
|
3.8
|
|
||||
Payments
|
(6.6
|
)
|
|
(0.5
|
)
|
|
(14.1
|
)
|
|
(7.6
|
)
|
||||
Balance as of end of period
|
$
|
18.0
|
|
|
$
|
—
|
|
|
$
|
18.0
|
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Impairment charges
|
$
|
30.7
|
|
|
$
|
—
|
|
|
$
|
30.7
|
|
|
$
|
—
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Cost of sales
|
$
|
3.2
|
|
|
$
|
2.4
|
|
|
$
|
11.7
|
|
|
$
|
9.5
|
|
Research and development
|
4.5
|
|
|
3.6
|
|
|
10.7
|
|
|
10.5
|
|
||||
Selling, general and administrative
|
8.3
|
|
|
5.0
|
|
|
34.1
|
|
|
15.1
|
|
||||
|
$
|
16.0
|
|
|
$
|
11.0
|
|
|
$
|
56.5
|
|
|
$
|
35.1
|
|
|
Stock Options
|
|
Restricted Stock Units
|
|
Restricted Stock Awards
|
|
Performance Stock Units
|
||||||||||||||||||||
|
Number of Shares
|
|
Weighted-Average Exercise Price
|
|
Number of Shares
|
|
Weighted-Average Grant Date Fair Value per Share
|
|
Number of Shares
|
|
Weighted-Average Grant Date Fair Value per Share
|
|
Number of Shares
(1)
|
|
Weighted-Average Grant Date Fair Value per Share
|
||||||||||||
Balance at beginning of period
|
—
|
|
|
$
|
—
|
|
|
1.7
|
|
|
$
|
43.1
|
|
|
0.1
|
|
|
$
|
32.5
|
|
|
0.1
|
|
|
$
|
52.0
|
|
Assumed in Oclaro merger
|
*
|
|
|
34.3
|
|
|
1.0
|
|
|
41.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Granted
|
—
|
|
|
—
|
|
|
1.0
|
|
|
60.6
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
55.9
|
|
||||
Vested/Exercised
|
*
|
|
|
20.5
|
|
|
(0.9
|
)
|
|
40.6
|
|
|
(0.1
|
)
|
|
32.5
|
|
|
(0.1
|
)
|
|
48.3
|
|
||||
Canceled
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
51.4
|
|
|
*
|
|
|
32.8
|
|
|
*
|
|
|
53.8
|
|
||||
Balance at end of period
|
*
|
|
|
$
|
36.1
|
|
|
2.5
|
|
|
$
|
50.9
|
|
|
*
|
|
|
$
|
32.5
|
|
|
0.2
|
|
|
$
|
55.8
|
|
|
Awards Available for Grant
|
|
Balance as of beginning of period
|
5.6
|
|
Replacement awards in connection with Oclaro acquisition
|
(1.0
|
)
|
Granted
|
(1.2
|
)
|
Canceled
|
0.3
|
|
Balance as of end of period
|
3.7
|
|
|
March 30, 2019
|
|
March 31, 2018
|
||
Expected term (years)
|
0.5
|
|
|
0.5
|
|
Expected volatility
|
71.3
|
%
|
|
49.9
|
%
|
Risk-free interest rate
|
2.52
|
%
|
|
1.42
|
%
|
Dividend yield
|
—
|
%
|
|
—
|
%
|
Fiscal Years
|
|
||
Remainder of 2019
|
$
|
5.2
|
|
2020
|
18.0
|
|
|
2021
|
15.2
|
|
|
2022
|
14.1
|
|
|
2023
|
12.8
|
|
|
Thereafter
|
39.9
|
|
|
Total minimum operating lease payments
|
$
|
105.2
|
|
Fiscal Years
|
|
||
Remainder of 2019
|
$
|
2.7
|
|
2020
|
0.5
|
|
|
2021
|
0.1
|
|
|
Total minimum capital lease payments
|
$
|
3.3
|
|
Less: amount representing interest
|
$
|
(0.1
|
)
|
Present value of capital lease obligation
|
$
|
3.2
|
|
Fiscal Years
|
|
||
Remainder of 2019
|
$
|
7.4
|
|
2020
|
29.2
|
|
|
2021
|
29.0
|
|
|
2022
|
28.7
|
|
|
2023
|
28.5
|
|
|
Thereafter
|
533.9
|
|
|
Total term loan payments
|
$
|
656.7
|
|
Fiscal Years
|
|
||
Remainder of 2019
|
$
|
—
|
|
2020
|
1.1
|
|
|
2021
|
1.1
|
|
|
2022
|
1.1
|
|
|
2023
|
1.1
|
|
|
Thereafter
|
451.2
|
|
|
Total 2024 Notes payments
|
$
|
455.6
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Balance as of beginning of period
|
$
|
9.7
|
|
|
$
|
9.9
|
|
|
$
|
6.6
|
|
|
$
|
9.7
|
|
Warranties assumed in Oclaro acquisition
|
—
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
||||
Provision for warranty
|
1.5
|
|
|
2.0
|
|
|
3.4
|
|
|
4.9
|
|
||||
Utilization of reserve
|
(1.4
|
)
|
|
(4.9
|
)
|
|
(4.0
|
)
|
|
(7.6
|
)
|
||||
Balance as of end of period
|
$
|
9.8
|
|
|
$
|
7.0
|
|
|
$
|
9.8
|
|
|
$
|
7.0
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
||||||||
OpComms
|
$
|
377.9
|
|
|
$
|
246.3
|
|
|
$
|
1,013.4
|
|
|
$
|
814.3
|
|
Lasers
|
55.0
|
|
|
52.5
|
|
|
147.3
|
|
|
132.3
|
|
||||
Net revenue
|
$
|
432.9
|
|
|
$
|
298.8
|
|
|
$
|
1,160.7
|
|
|
$
|
946.6
|
|
Gross profit:
|
|
|
|
|
|
|
|
||||||||
OpComms
|
143.5
|
|
|
83.1
|
|
|
397.5
|
|
|
317.1
|
|
||||
Lasers
|
25.3
|
|
|
25.4
|
|
|
63.6
|
|
|
55.9
|
|
||||
Total segment gross profit
|
168.8
|
|
|
108.5
|
|
|
461.1
|
|
|
373.0
|
|
||||
Unallocated corporate items:
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation
|
(3.2
|
)
|
|
(2.4
|
)
|
|
(11.7
|
)
|
|
(9.5
|
)
|
||||
Amortization of intangibles
|
(28.1
|
)
|
|
(0.8
|
)
|
|
(33.3
|
)
|
|
(2.4
|
)
|
||||
Amortization of inventory step up
|
(14.5
|
)
|
|
—
|
|
|
(15.8
|
)
|
|
—
|
|
||||
Inventory write down due to product line exit
|
(19.4
|
)
|
|
—
|
|
|
(19.4
|
)
|
|
(7.0
|
)
|
||||
Integration related costs
|
(2.8
|
)
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
||||
Other charges
(1)
|
(12.5
|
)
|
|
(8.3
|
)
|
|
(39.0
|
)
|
|
(17.5
|
)
|
||||
Gross profit
|
$
|
88.3
|
|
|
$
|
97.0
|
|
|
$
|
339.1
|
|
|
$
|
336.6
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||||||||||
OpComms:
|
$
|
377.9
|
|
87.3
|
%
|
|
$
|
246.3
|
|
82.4
|
%
|
|
$
|
1,013.4
|
|
87.3
|
%
|
|
$
|
814.3
|
|
86.0
|
%
|
Telecom
|
243.4
|
|
56.3
|
%
|
|
122.6
|
|
41.0
|
%
|
|
558.8
|
|
48.1
|
%
|
|
343.2
|
|
36.3
|
%
|
||||
Datacom
|
57.3
|
|
13.2
|
%
|
|
36.3
|
|
12.1
|
%
|
|
124.9
|
|
10.8
|
%
|
|
115.9
|
|
12.2
|
%
|
||||
Consumer and Industrial
|
77.2
|
|
17.8
|
%
|
|
87.4
|
|
29.3
|
%
|
|
329.7
|
|
28.4
|
%
|
|
355.2
|
|
37.5
|
%
|
||||
Lasers
|
$
|
55.0
|
|
12.7
|
%
|
|
$
|
52.5
|
|
17.6
|
%
|
|
$
|
147.3
|
|
12.7
|
%
|
|
$
|
132.3
|
|
14.0
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
$
|
29.7
|
|
|
6.9
|
%
|
|
$
|
26.8
|
|
|
9.0
|
%
|
|
$
|
72.3
|
|
|
6.2
|
%
|
|
$
|
86.3
|
|
|
9.1
|
%
|
Mexico
|
53.5
|
|
|
12.4
|
%
|
|
41.7
|
|
|
14.0
|
%
|
|
164.8
|
|
|
14.2
|
%
|
|
97.1
|
|
|
10.3
|
%
|
||||
Other Americas
|
0.9
|
|
|
0.2
|
%
|
|
1.5
|
|
|
0.5
|
%
|
|
2.7
|
|
|
0.2
|
%
|
|
5.7
|
|
|
0.6
|
%
|
||||
Total Americas
|
$
|
84.1
|
|
|
19.4
|
%
|
|
$
|
70.0
|
|
|
23.5
|
%
|
|
$
|
239.8
|
|
|
20.6
|
%
|
|
$
|
189.1
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asia-Pacific:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Hong Kong
|
$
|
124.1
|
|
|
28.6
|
%
|
|
$
|
38.7
|
|
|
13.0
|
%
|
|
$
|
289.6
|
|
|
25.0
|
%
|
|
$
|
133.3
|
|
|
14.1
|
%
|
Japan
|
50.0
|
|
|
11.6
|
%
|
|
34.1
|
|
|
11.4
|
%
|
|
129.2
|
|
|
11.1
|
%
|
|
157.6
|
|
|
16.6
|
%
|
||||
South Korea
|
23.6
|
|
|
5.5
|
%
|
|
28.8
|
|
|
9.6
|
%
|
|
154.9
|
|
|
13.3
|
%
|
|
126.3
|
|
|
13.3
|
%
|
||||
Other Asia-Pacific
|
98.4
|
|
|
22.7
|
%
|
|
103.9
|
|
|
34.8
|
%
|
|
234.4
|
|
|
20.2
|
%
|
|
266.1
|
|
|
28.1
|
%
|
||||
Total Asia-Pacific
|
$
|
296.1
|
|
|
68.5
|
%
|
|
$
|
205.5
|
|
|
68.8
|
%
|
|
$
|
808.1
|
|
|
69.6
|
%
|
|
$
|
683.3
|
|
|
72.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EMEA
|
$
|
52.7
|
|
|
12.2
|
%
|
|
$
|
23.3
|
|
|
7.8
|
%
|
|
$
|
112.8
|
|
|
9.7
|
%
|
|
$
|
74.2
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net revenue
|
$
|
432.9
|
|
|
|
|
$
|
298.8
|
|
|
|
|
$
|
1,160.7
|
|
|
|
|
$
|
946.6
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||
Customer A
|
18.4
|
%
|
|
11.9
|
%
|
|
15.3
|
%
|
|
11.1
|
%
|
Customer B
|
13.4
|
%
|
|
24.9
|
%
|
|
22.7
|
%
|
|
33.3
|
%
|
Customer C
|
12.0
|
%
|
|
12.9
|
%
|
|
13.9
|
%
|
|
9.3
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||
Vendor A
|
60.0
|
%
|
|
48.0
|
%
|
|
54.0
|
%
|
|
42.0
|
%
|
Vendor B
|
14.0
|
%
|
|
19.0
|
%
|
|
19.0
|
%
|
|
19.0
|
%
|
Vendor C
|
11.0
|
%
|
|
18.0
|
%
|
|
12.0
|
%
|
|
23.0
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||
Segment net revenue:
|
|
|
|
|
|
|
|
||||
OpComms
|
87.3
|
%
|
|
82.4
|
%
|
|
87.3
|
%
|
|
86.0
|
%
|
Lasers
|
12.7
|
|
|
17.6
|
|
|
12.7
|
|
|
14.0
|
|
Net revenue
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
Cost of sales
|
73.1
|
|
|
67.3
|
|
|
67.9
|
|
|
64.2
|
|
Amortization of acquired developed technologies
|
6.5
|
|
|
0.3
|
|
|
2.9
|
|
|
0.3
|
|
Gross profit
|
20.4
|
|
|
32.4
|
|
|
29.2
|
|
|
35.5
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||
Research and development
|
13.3
|
|
|
12.8
|
|
|
11.6
|
|
|
12.5
|
|
Selling, general and administrative
|
12.8
|
|
|
11.1
|
|
|
13.0
|
|
|
10.1
|
|
Restructuring and related charges
|
4.9
|
|
|
—
|
|
|
2.6
|
|
|
0.4
|
|
Impairment charge
|
7.0
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
Total operating expenses
|
38.0
|
|
|
23.9
|
|
|
29.9
|
|
|
23.0
|
|
Income/(loss) from operations
|
(17.6
|
)
|
|
8.5
|
|
|
(0.7
|
)
|
|
12.5
|
|
Unrealized gain (loss) on derivative liability
|
—
|
|
|
(6.9
|
)
|
|
0.8
|
|
|
(0.9
|
)
|
Interest and other income (expense), net
|
(1.4
|
)
|
|
(0.7
|
)
|
|
(1.1
|
)
|
|
(0.9
|
)
|
Income/(loss) before income taxes
|
(19.0
|
)
|
|
0.9
|
|
|
(1.0
|
)
|
|
10.7
|
|
Provision for (benefit from) income taxes
|
(1.9
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(11.9
|
)
|
Net income/(loss)
|
(17.1
|
)%
|
|
0.9
|
%
|
|
(0.9
|
)%
|
|
22.6
|
%
|
|
Three Months Ended
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
||||||||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
Change
|
|
Percentage Change
|
|
March 30, 2019
|
|
March 31, 2018
|
|
Change
|
|
Percentage Change
|
||||||||||||||
Segment net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
OpComms
|
$
|
377.9
|
|
|
$
|
246.3
|
|
|
$
|
131.6
|
|
|
53.4
|
%
|
|
$
|
1,013.4
|
|
|
$
|
814.3
|
|
|
$
|
199.1
|
|
|
24.5
|
%
|
Lasers
|
55.0
|
|
|
52.5
|
|
|
2.5
|
|
|
4.8
|
|
|
147.3
|
|
|
132.3
|
|
|
15.0
|
|
|
11.3
|
|
||||||
Net revenue
|
$
|
432.9
|
|
|
$
|
298.8
|
|
|
$
|
134.1
|
|
|
44.9
|
%
|
|
$
|
1,160.7
|
|
|
$
|
946.6
|
|
|
$
|
214.1
|
|
|
22.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross profit
|
$
|
88.3
|
|
|
$
|
97.0
|
|
|
$
|
(8.7
|
)
|
|
(9.0
|
)%
|
|
$
|
339.1
|
|
|
$
|
336.6
|
|
|
$
|
2.5
|
|
|
0.7
|
%
|
Gross margin
|
20.4
|
%
|
|
32.5
|
%
|
|
|
|
|
|
29.2
|
%
|
|
35.6
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Research and development
|
$
|
57.7
|
|
|
$
|
38.2
|
|
|
$
|
19.5
|
|
|
51.0
|
%
|
|
$
|
135.1
|
|
|
$
|
118.3
|
|
|
$
|
16.8
|
|
|
14.2
|
%
|
Percentage of net revenue
|
13.3
|
%
|
|
12.8
|
%
|
|
|
|
|
|
11.6
|
%
|
|
12.5
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Selling, general and administrative
|
$
|
55.2
|
|
|
$
|
33.2
|
|
|
$
|
22.0
|
|
|
66.3
|
%
|
|
$
|
150.9
|
|
|
$
|
95.5
|
|
|
$
|
55.4
|
|
|
58.0
|
%
|
Percentage of net revenue
|
12.8
|
%
|
|
11.1
|
%
|
|
|
|
|
|
13.0
|
%
|
|
10.1
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Restructuring and related charges
|
$
|
21.1
|
|
|
$
|
0.1
|
|
|
$
|
21.0
|
|
|
n/a
|
|
$
|
30.2
|
|
|
$
|
3.8
|
|
|
$
|
26.4
|
|
|
n/a
|
||
Percentage of net revenue
|
4.9
|
%
|
|
—
|
%
|
|
|
|
|
|
2.6
|
%
|
|
0.4
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Impairment charge
|
$
|
30.7
|
|
|
—
|
|
|
30.7
|
|
|
100.0
|
%
|
|
30.7
|
|
|
—
|
|
|
30.7
|
|
|
100.0
|
%
|
|||||
Percentage of net revenue
|
7.0
|
%
|
|
N/A
|
|
|
|
|
|
|
2.6
|
%
|
|
N/A
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||
Customer A
|
18.4
|
%
|
|
11.9
|
%
|
|
15.3
|
%
|
|
11.1
|
%
|
Customer B
|
13.4
|
%
|
|
24.9
|
%
|
|
22.7
|
%
|
|
33.3
|
%
|
Customer C
|
12.0
|
%
|
|
12.9
|
%
|
|
13.9
|
%
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||||||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
$
|
29.7
|
|
|
6.9
|
%
|
|
$
|
26.8
|
|
|
9.0
|
%
|
|
$
|
72.3
|
|
|
6.2
|
%
|
|
$
|
86.3
|
|
|
9.1
|
%
|
Mexico
|
53.5
|
|
|
12.4
|
|
|
41.7
|
|
|
14.0
|
|
|
164.8
|
|
|
14.2
|
|
|
97.1
|
|
|
10.3
|
|
||||
Other Americas
|
0.9
|
|
|
0.2
|
|
|
1.5
|
|
|
0.5
|
|
|
2.7
|
|
|
0.2
|
|
|
5.7
|
|
|
0.6
|
|
||||
Total Americas
|
$
|
84.1
|
|
|
19.4
|
%
|
|
$
|
70.0
|
|
|
23.5
|
%
|
|
$
|
239.8
|
|
|
20.6
|
%
|
|
$
|
189.1
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asia-Pacific:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Hong Kong
|
$
|
124.1
|
|
|
28.6
|
%
|
|
$
|
38.7
|
|
|
13.0
|
%
|
|
$
|
289.6
|
|
|
25.0
|
%
|
|
$
|
133.3
|
|
|
14.1
|
%
|
Japan
|
50.0
|
|
|
11.6
|
|
|
34.1
|
|
|
11.4
|
|
|
129.2
|
|
|
11.1
|
|
|
157.6
|
|
|
16.6
|
|
||||
South Korea
|
23.6
|
|
|
5.5
|
|
|
28.8
|
|
|
9.6
|
|
|
154.9
|
|
|
13.3
|
|
|
126.3
|
|
|
13.3
|
|
||||
Other Asia-Pacific
|
98.4
|
|
|
22.7
|
|
|
103.9
|
|
|
34.8
|
|
|
234.4
|
|
|
20.2
|
|
|
266.1
|
|
|
28.1
|
|
||||
Total Asia-Pacific
|
$
|
296.1
|
|
|
68.4
|
%
|
|
$
|
205.5
|
|
|
68.8
|
%
|
|
$
|
808.1
|
|
|
69.6
|
%
|
|
$
|
683.3
|
|
|
72.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EMEA
|
$
|
52.7
|
|
|
12.2
|
%
|
|
$
|
23.3
|
|
|
7.8
|
%
|
|
$
|
112.8
|
|
|
9.7
|
%
|
|
$
|
74.2
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total net revenue
|
$
|
432.9
|
|
|
|
|
|
$
|
298.8
|
|
|
|
|
|
$
|
1,160.7
|
|
|
|
|
|
$
|
946.6
|
|
|
|
|
|
Gross Profit
|
|
Gross Margin
|
|
Gross Profit
|
|
Gross Margin
|
||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||||||
OpComms
|
$
|
143.5
|
|
|
$
|
83.1
|
|
|
38.0
|
%
|
|
33.7
|
%
|
|
$
|
397.5
|
|
|
$
|
317.1
|
|
|
39.2
|
%
|
|
38.9
|
%
|
Lasers
|
25.3
|
|
|
25.4
|
|
|
46.0
|
%
|
|
48.4
|
%
|
|
63.6
|
|
|
55.9
|
|
|
43.2
|
%
|
|
42.3
|
%
|
||||
Segment total
|
$
|
168.8
|
|
|
$
|
108.5
|
|
|
39.0
|
%
|
|
36.3
|
%
|
|
$
|
461.1
|
|
|
$
|
373.0
|
|
|
39.7
|
%
|
|
39.4
|
%
|
Unallocated corporate items
(1)
|
(80.5
|
)
|
|
(11.5
|
)
|
|
|
|
|
|
(122.0
|
)
|
|
(36.4
|
)
|
|
|
|
|
||||||||
Total
|
$
|
88.3
|
|
|
$
|
97.0
|
|
|
20.4
|
%
|
|
32.5
|
%
|
|
$
|
339.1
|
|
|
$
|
336.6
|
|
|
29.2
|
%
|
|
35.6
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Interest expense
|
$
|
(11.3
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
(24.9
|
)
|
|
$
|
(13.6
|
)
|
Foreign exchange gains (losses), net
|
(1.0
|
)
|
|
(0.1
|
)
|
|
(1.0
|
)
|
|
(0.8
|
)
|
||||
Interest income
|
3.9
|
|
|
2.5
|
|
|
10.0
|
|
|
5.7
|
|
||||
Other income (expense), net
|
2.3
|
|
|
0.1
|
|
|
2.7
|
|
|
—
|
|
||||
Interest and other income (expense), net
|
$
|
(6.1
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
(13.2
|
)
|
|
$
|
(8.7
|
)
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
March 30, 2019
|
|
March 31, 2018
|
|
March 30, 2019
|
|
March 31, 2018
|
||||||||
Provision for (benefit from) income taxes
|
$
|
(8.2
|
)
|
|
$
|
—
|
|
|
$
|
(1.6
|
)
|
|
$
|
(112.9
|
)
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
Less than 1 year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
More than 5 years
|
||||||||||
Contractual Obligations
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition contingencies
(1)
|
$
|
3.0
|
|
|
$
|
3.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Asset retirement obligations
|
5.4
|
|
|
—
|
|
|
1.0
|
|
|
0.6
|
|
|
3.8
|
|
|||||
Capital lease obligations
(2)
|
3.3
|
|
|
3.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|||||
Operating lease obligations
(2)
|
105.2
|
|
|
18.7
|
|
|
30.4
|
|
|
41.4
|
|
|
14.7
|
|
|||||
Pension plan contributions
(3)
|
2.4
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Purchase obligations
(4)
|
208.0
|
|
|
206.0
|
|
|
1.9
|
|
|
0.1
|
|
|
—
|
|
|||||
Term loan - principal
(5)
|
498.7
|
|
|
5.0
|
|
|
10.0
|
|
|
10.0
|
|
|
473.7
|
|
|||||
Term loan - interest
(5)
|
158.0
|
|
|
24.3
|
|
|
47.8
|
|
|
46.9
|
|
|
39.0
|
|
|||||
Convertible notes - principal
(6)
|
450.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
450.0
|
|
|||||
Convertible notes - interest
(7)
|
5.6
|
|
|
1.2
|
|
|
2.2
|
|
|
2.2
|
|
|
—
|
|
|||||
Total
|
$
|
1,439.6
|
|
|
$
|
263.8
|
|
|
$
|
93.4
|
|
|
$
|
101.2
|
|
|
$
|
981.2
|
|
•
|
global economic conditions which affect demand for our products and services and impact the financial stability of our suppliers and customers;
|
•
|
changes in accounts receivable, inventory or other operating assets and liabilities, which affect our working capital;
|
•
|
increase in capital expenditures to support our business and growth;
|
•
|
the tendency of customers to delay payments or to negotiate favorable payment terms to manage their own liquidity positions;
|
•
|
timing of payments to our suppliers;
|
•
|
factoring or sale of accounts receivable;
|
•
|
volatility in fixed income and credit, which impact the liquidity and valuation of our investment portfolios;
|
•
|
volatility in foreign exchange markets, which impacts our financial results;
|
•
|
possible investments or acquisitions of complementary businesses, products or technologies, or other strategic transactions or partnerships;
|
•
|
issuance of debt or equity securities, or other financing transactions, including bank debt;
|
•
|
potential funding of pension liabilities either voluntarily or as required by law or regulation; and
|
•
|
the settlement of any conversion or redemption of the 2024 Notes in cash.
|
•
|
changes in general IT spending;
|
•
|
the imposition of government controls, inclusive of critical infrastructure protection;
|
•
|
changes in or limitations imposed by trade protection laws or other regulatory orders or requirements in the United States or in other countries, including tariffs, sanctions, or other costs or requirements which may affect our ability to, or increase our costs associated with the, import or export our products from various countries, including government action to restrict our ability to sell to foreign customers where sales of products may require export licenses (such as the U.S. Department of Commerce prohibition of export and sale of certain products to ZTE Corporation in early 2018);
|
•
|
varying and potentially conflicting laws and regulations;
|
•
|
fluctuations in local economies;
|
•
|
wage inflation or a tightening of the labor market;
|
•
|
political developments of foreign nations; and
|
•
|
the impact of the following on service provider and government spending patterns as well as our contract and internal manufacturing: political considerations, unfavorable changes in tax treaties or laws, unfavorable events that affect foreign currencies, natural disasters, epidemic disease, labor unrest, earnings expatriation restrictions, misappropriation of intellectual property, military actions, acts of terrorism, political and social unrest and difficulties in staffing and managing international operations.
|
•
|
diversion of management’s attention from normal daily operations of the business;
|
•
|
unforeseen expenses, delays or conditions imposed upon the acquisition or transaction, including due to required regulatory approvals or consents;
|
•
|
unanticipated changes in the combined business due to potential divestitures or other requirements imposed by antitrust regulators;
|
•
|
unanticipated changes in the acquired business, including due to regulatory action or changes in the operating results or financial condition of the business;
|
•
|
the ability to retain and obtain required regulatory approvals, licenses and permits;
|
•
|
difficulties and costs in integrating the operations, technologies, products, IT and other systems, facilities and personnel of the purchased businesses;
|
•
|
loss of customers, suppliers or partners;
|
•
|
potential difficulties in completing projects associated with in-process R&D;
|
•
|
an acquisition or strategic transaction may not further our business strategy as we expected or we may overpay for, or otherwise not realize the expected return on, our investments;
|
•
|
we may face unanticipated liabilities or our exposure for known contingencies and liabilities may exceed our estimates;
|
•
|
insufficient net revenue to offset increased expenses associated with acquisitions;
|
•
|
potential loss of key employees of the acquired companies or difficulty maintaining our company culture;
|
•
|
difficulty forecasting revenues and margins;
|
•
|
dilution of our current stockholders as a result of any issuance of equity securities as acquisition consideration;
|
•
|
expenditure of cash that would otherwise be available to operate our business;
|
•
|
incurrence of indebtedness on terms that are unfavorable to us, limit our operational flexibility or that we are unable to repay;
|
•
|
incurrence or assumption of contingent liabilities, known or unknown, including potential lawsuits, infringement actions or similar liabilities; and
|
•
|
incurrence of impairment charges related to goodwill or other intangibles.
|
•
|
unexpected losses of key employees of the acquired company;
|
•
|
conforming the acquired company’s standards, processes, procedures and controls with our operations, including integrating Enterprise Resource Planning (“ERP”) systems and other key business applications;
|
•
|
coordinating new product and process development;
|
•
|
increasing complexity from combining operations;
|
•
|
increasing the scope, geographic diversity and complexity of our operations;
|
•
|
difficulties in consolidating facilities and transferring processes and know-how; and
|
•
|
diversion of management’s attention from other business concerns.
|
•
|
use a signification portion of our available cash;
|
•
|
issue equity securities, which would dilute current stockholders’ percentage ownership;
|
•
|
incur significant debt;
|
•
|
incur or assume contingent liabilities, known or unknown, including potential lawsuits, infringement actions or similar liabilities;
|
•
|
incur impairment charges related to goodwill or other intangibles; and
|
•
|
face antitrust or other regulatory inquiries or actions.
|
•
|
actual or anticipated fluctuations in our quarterly or annual operating results;
|
•
|
changes in earnings estimates by securities analysts or our ability to meet those estimates;
|
•
|
the operating and stock price performance of other comparable companies;
|
•
|
a shift in our investor base;
|
•
|
the financial performance of other companies in our industry, including our customers;
|
•
|
success or failure of our business strategy;
|
•
|
credit market fluctuations which could negatively impact our ability to obtain financing as needed;
|
•
|
changes to the regulatory and legal environment in which we operate;
|
•
|
announcements by us, competitors, customers, or our contract manufacturers of significant acquisitions or dispositions, including our recently completed merger with Oclaro;
|
•
|
investor perception of us and our industry;
|
•
|
changes in accounting standards, policies, guidance, interpretations or principles;
|
•
|
litigation or disputes in which we may become involved;
|
•
|
overall market fluctuations; sales of our shares by our officers, directors, or significant stockholders;
|
•
|
the timing and amount of dividends and share repurchases, if any; and
|
•
|
general economic and market conditions and other external factors.
|
•
|
make it more difficult for us to satisfy our debt obligations, including the 2024 Notes and the Term Loan Facility;
|
•
|
increase our vulnerability to general adverse economic and industry conditions;
|
•
|
require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital and other general corporate purposes;
|
•
|
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
|
•
|
restrict us from exploiting business opportunities;
|
•
|
place us at a competitive disadvantage compared to our competitors that have less indebtedness; and
|
|
|
|
|
Incorporated by Reference
|
|
|
|
|
|
Filed
|
Exhibit No.
|
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
Herewith
|
10.1*
|
|
|
|
|
|
|
|
|
|
X
|
31.1
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation
|
|
|
|
|
|
|
|
X
|
|
|
LUMENTUM HOLDINGS INC.
|
|
|
|
|
|
Date:
|
May 7, 2019
|
By: /s/ Wajid Ali
|
|
|
|
By: Wajid Ali
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
|
|
•
|
Title- Executive Vice President (E300 level)
|
•
|
Base Salary- $500,000
|
•
|
Target Incentive Opportunity- 80% of base salary ($400,000)
|
o
|
Your TIO payout will be pursuant to the FY19 cash incentive plan, provided however that for the FY19 2
nd
Half bonus, you will be paid no less than $250K
|
•
|
Total Target Cash- $900,000
|
•
|
On or after the 15
th
day of the month following your employment start date, you will receive the following grants:
|
o
|
New Hire Restricted Stock Units- in an approximate value of $1,000,000, which 1/3 shall vest on or around the first anniversary of the vesting start date and the remaining shares shall vest quarterly over the following two years thereafter, assuming your continued employment through each vesting date.
|
o
|
Replacement Restricted Stock Units- in an approximate value of $5,000,000 with the following vesting schedule, assuming your continued employment through each vesting date:
|
§
|
15% of the shares will vest December 15, 2019
|
§
|
25% of the shares will vest February 15, 2020
|
§
|
The
remaining shares will vest quarterly over the following two years thereafter.
|
•
|
You will receive a $1,000,000 sign on bonus payable within 30 days of your start date, subject to repayment pursuant to the agreement attached as Exhibit A
|
•
|
You will be eligible for a focal stock grant (August 2019) and the Company’s annual merit process (October 2019).
|
o
|
We will recommend to the Compensation Committee that your focal stock award will be in an approximate value of $2,875,000 and will be a combination of RSUs and PSUs as approved by the Compensation Committee at the August Comp Committee meeting.
|
•
|
Successful completion of a background screen, including prior employment, education, and criminal history
|
•
|
Pursuant to federal law, please bring with you on your first day of work original documentation of your right to work in the United States (proof of citizenship or work visa), and be prepared to sign the verification form required by Federal law (DHS Form I-9); your right to work in the U.S. will be confirmed by E-Verify, as required by the Department of Homeland Security for government contractors
|
•
|
U.S. export control laws require that Lumentum obtain a government export license prior to releasing technologies to certain persons. This offer and your employment may be conditioned upon Lumentum's ability to satisfy U.S. export control laws. The decision to pursue an export license, if required, is at the sole election of Lumentum
|
•
|
Sign the Company’s Employee Proprietary Information and Inventions Agreement
|
/s/ ALAN LOWE
|
|
Alan Lowe
President and Chief Executive Officer
(Principal Executive Officer)
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|
/s/ WAJID ALI
|
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Wajid Ali
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
/s/ ALAN LOWE
|
|
Alan Lowe
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
/s/ WAJID ALI
|
|
Wajid Ali
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|