Lumentum Holdings Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joseph Lima Cardoso - JPMorgan Chase & Co, Research Division - Analyst : This is Joe Cardoso on for Samik Chatterjee. Yes. First question from me. Can you just give us some granularity relative to the underlying trends you're seeing in telecom? I think one of your peers in the space suggested it's seeing a bottom in the September quarter itself and expects it to begin to recover in subsequent quarters. And while another suggested that it's more of a mid-2024 phenomenon. Just curious where you are landing on that spectrum and what's driving your confidence there? And then I have a follow-up.

Question: Joseph Lima Cardoso - JPMorgan Chase & Co, Research Division - Analyst : Got it. I appreciate the color, Alan. And then just relative to the non-Cloud Light datacom business, you had been talking about ramping capacity there, including some rehiring of headcount. I believe you were moving to a larger wafer size, et cetera. So a bunch of moving pieces. I guess, can you just give us an update on how that is tracking? And then just whether with Cloud Light on the books now, does that help you accelerate some of these initiatives relative to what you were doing in terms of ramping capacity for the legacy piece of the datacom business?

Question: David Vogt - UBS Investment Bank, Research Division - Analyst : Great. I'm just going to try maybe triangulating again on this Cloud Light transaction. So I think Alan, in your prepared remarks, you suggested that the business should accelerate to about 30% growth in calendar year '24. If I just do some really quick math, does that assume your legacy business returns to growth in '24 based on sort of the disclosure that Cloud Light has about $200 million of revenue growing, obviously, relatively rapidly? And then in conjunction with that, from a margin perspective, I know you talked about it on the last call, as it being sort of a slightly accretive transaction with regards to the first 12 months post closing. But can you kind of maybe share with us sort of the margin profile of this business relative to the existing sort of Cloud and Networking part of the business pre the transaction?