SAN JOSE, CA – Lumentum Holdings Inc . (NASDAQ:LITE), a leading manufacturer of communications equipment, announced changes to its executive compensation and corporate governance following the Annual Meeting of Stockholders held on Monday. The company, headquartered in San Jose, California, disclosed the updates in a recent 8-K filing with the U.S. Securities and Exchange Commission.
The stockholders approved an amendment to the company's Amended and Restated 2015 Equity Incentive Plan ("2015 Plan"), extending the plan's expiration date to June 23, 2026. This extension, initially approved by the board of directors, was subject to stockholder approval. The detailed summary of the 2015 Plan was included in the company’s proxy statement filed on October 3, 2024.
During the Annual Meeting, shareholders also voted on several key proposals. Harold L. Covert, Pamela F. Fletcher, Isaac H. Harris, Penelope A. Herscher, Julia S. Johnson, Brian J. Lillie, Alan S. Lowe, and Ian S. Small were all elected or re-elected to the board of directors with a significant majority.
Additionally, the compensation of Lumentum's named executive officers received a non-binding advisory approval, and Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending June 28, 2025.
The approval of the Amended and Restated 2015 Equity Incentive Plan met with more mixed results, passing with a narrower margin compared to the other voting items.
The 8-K filing also included the full text of the amended 2015 Plan as Exhibit 10.1.
This news is based on a press release statement and provides investors with the latest governance decisions from Lumentum, a company incorporated in Delaware with its fiscal year ending on June 28.
In other recent news, Lumentum Holdings has reported a successful first quarter for fiscal year 2025, with revenues reaching $336.9 million and non-GAAP earnings per share (EPS) at $0.18, surpassing its initial guidance. This surge in earnings is attributed to a record number of Datacom laser chip orders, driven by increasing demands from cloud and AI customers. The company has also projected double-digit sequential revenue growth in Q2 and has set a target of achieving $500 million in quarterly revenue by the end of 2025.
Furthermore, Lumentum has confirmed plans to initiate shipping to a new hyperscale transceiver customer in the first half of 2025, emphasizing a robust pipeline of cloud engagements and a promising outlook for growth in cloud and AI sectors. However, the company's Industrial Tech segment witnessed a year-over-year decline of 38%.
In terms of future expectations, the company anticipates Q2 fiscal 2025 revenue to be between $380 million and $400 million, with non-GAAP operating margins projected between 5.5% to 7.5%. Lumentum is also expanding its production capacity outside China, particularly in Thailand, to meet increased demand and enhance supply chain resilience. Despite these positive trends, the company acknowledges that constraints on laser capacity are affecting product integration timelines and the adoption of 3D sensing in augmented reality and automotive applications is slower than expected.
InvestingPro Insights
Lumentum's recent governance decisions come amid a period of strong market performance for the company. According to InvestingPro data, Lumentum has seen impressive price returns, with a 96.53% total return over the past year and an 88.2% return over the last six months. The stock is currently trading near its 52-week high, with its price at 94.59% of the highest point in the past year.
Despite these positive market indicators, InvestingPro Tips reveal that Lumentum was not profitable over the last twelve months. However, analysts predict the company will be profitable this year, which could explain the recent stock performance and investor optimism. The company's market capitalization stands at $5.88 billion, reflecting its significant presence in the communications equipment sector.
It's worth noting that 15 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Lumentum's financial performance. This aligns with the company's efforts to maintain strong corporate governance and executive compensation practices, as evidenced by the recent stockholder meeting decisions.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Lumentum, providing deeper insights into the company's financial health and market position.
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