Lumentum Holdings Inc. reported net revenue of $336.9 million for the three months ended September 28, 2024, marking a 6.1% increase from $317.6 million in the same period of the previous year. The growth was primarily driven by a significant rise in the Cloud & Networking segment, which generated $282.3 million, up 22.9% from $229.7 million. This increase was attributed to heightened demand from cloud and AI/ML customers, including contributions from the recently acquired Cloud Light Technology Limited, which added $38.2 million to revenue.

Despite the revenue growth, Lumentum experienced a net loss of $82.4 million, compared to a loss of $67.9 million in the prior year. The loss per share increased to $(1.21) from $(1.02). Gross profit rose slightly to $77.9 million, but the gross margin decreased to 23.1% from 24.1%, impacted by a less profitable product mix and lower factory utilization. Total operating expenses increased to $160.3 million from $157.5 million, contributing to a loss from operations of $(82.4) million, compared to $(80.8) million in the previous year.

The company’s cash and cash equivalents increased to $489.2 million as of September 28, 2024, up from $436.7 million at the end of the previous quarter. Lumentum's total assets rose to $3.97 billion, while total liabilities increased to $3.07 billion, reflecting the impact of the Cloud Light acquisition, which was completed on November 7, 2023, for a total cash consideration of $705 million.

In terms of strategic developments, Lumentum incurred $9.6 million in acquisition-related costs during the fiscal year 2024, with $2.4 million recorded in the three months ended September 30, 2023. The company also reported restructuring charges of $9.7 million for the latest quarter, primarily due to asset write-offs and the discontinuation of in-house development of certain technologies.

Geographically, revenue from the Americas increased significantly to $102.2 million, while revenue from the Asia-Pacific region decreased to $204.1 million. The company continues to face challenges from global macroeconomic conditions, including inflation and supply chain dynamics, which have affected customer orders and inventory management.