Apple supplier Lumentum slashes outlook after large customer requests shipment cut

Lumentum Holdings Inc. today announced updated business outlook for its fiscal second quarter 2019 based on a recent customer development.
“We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter,” said Alan Lowe, President and CEO, in a statement. “With our proven ability to deliver high volumes, years of experience, hundreds of millions of devices in the field, and new product and customer funnel, we remain confident in our leadership position in the nascent market for laser diodes for 3D sensing.”
Revised Net revenue, non-GAAP operating margin, and non-GAAP diluted earnings per share expectations along with the prior guidance range provided in the Company’s fiscal first quarter earnings release and earnings conference call on November 1, 2018 are provided in the table below.

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MacDailyNews Note: While Lumentum didn’t name the customer, its fiscal 2018 annual report in June listed Apple as its largest customer, accounting for 30% of Lumentum’s revenue.
Lumentum is one of the primary suppliers of Apple’s TrueDepth Camera system. Huawei and Ciena are Lumentum’s other two major customers, with each accounting for 11% of its revenue.
In pre-market trading following the news, shares of Apple (AAPL) dropped $4.81, (-2.26%) to $199.66.
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Austria’s AMS AG, maker of Apple TrueDepth components, warns of short-term demand difficulties – April 24, 2018
Bernstein: AMS AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018