Lumentum Holdings Inc (NASDAQ:LITE) stock surges 14.42% (As on August 15, 11:26:18 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fiscal fourth-quarter results and issued upbeat guidance. Non-GAAP net income for fiscal fourth quarter of 2024 was $4.0 million compared to Non-GAAP net income for the fiscal fourth quarter of 2023 was $40.2 million while Non-GAAP net income for fiscal third quarter of 2024 was $19.6 million. The Company held $887.0 million in total cash, cash equivalents, and short-term investments at the end of the fiscal fourth quarter of 2024, an increase of $16.1 million from the third quarter of 2024. Cash from operations for the fiscal year of 2024 was $24.7 million. The Company held $887.0 million in total cash, cash equivalents, and short-term investments at the end of the fiscal fourth quarter of 2024, an increase of $16.1 million from the third quarter of 2024. The company has booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market. The company is making significant progress executing our strategy to broaden our cloud and AI customer base, which will lead to accelerated growth in calendar year 2025.

Moreover, the company has invested $43 million in the fab capacity, with incremental capacity expected in the first half of 2025. On the transceiver side, the initial line in Thailand is operational this quarter, with volume shipments expected in early 2025. The company plans to achieve $500 million per quarter by the end of 2025. The company is seeing strength in new products like 130 gigabaud coherent components and narrow linewidth tunable lasers.

LITE in the fourth quarter of FY 24 has reported the adjusted earnings per share of 6 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue of $308.3 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $301.14 million. Lumentum’s non-GAAP gross margin contracted to 32.2% in Q4 from 36.7% a year ago.

For the first quarter of fiscal 2025, Lumentum expects revenue between $315 million and $335 million, above analyst projections of $311.4 million. The company also forecast adjusted EPS of $0.07 to $0.17, compared to the $0.12 consensus estimate. Q1 FY 25 Non-GAAP operating margin is expected to be in the range of 0% – 3.0%.