Lumentum Holdings Inc Q3 2023 Earnings Call Transcript

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

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : I guess, Alan, you mentioned even in the last response in your prepared remarks that you believe you're under-shipping to demand. And I wanted to get your thoughts around sort of how do you think about sort of the right run rate. What is the sort of right level of demand right now? How much do you believe you're under-shipping related to that? And maybe just extending that, you're saying second half will have a recovery. Is that essentially the math that you're doing in terms of how much you're under-shipping and how much inventory you're digesting gets you to that sort of second half recovery? Or is that what your customers are telling you? And I have a follow-up.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Okay. Got it. And just a follow-up on industrial and consumer. Based on your guidance for the fourth quarter, you're implying most of the sequential decline in revenue at your midpoint comes from that segment. That would put you at one of the lowest revenues you've done in that segment sort of going back quite a few years. Is that -- again, you're thinking about sort of in sell-through for the primary customer you have being weaker? Or is this more again a reflection of inventory digestion even at this customer that's probably impacting you in that -- in the coming -- in this quarter and the fiscal fourth quarter?