LITE 10-Q filed 2026-11-03 | Key takeaways
LITE filed its 10-Q; the most relevant disclosure change is added Subsequent events: Lumentum entered into a definitive merger agreement with Marvell Technology, Inc. on November 1, 2026, under which each Lumentum common share will convert into 4.500 Marvell shares. The deal includes termination fees of $2.9 billion for Lumentum and $5.8 billi. Customer concentration: Customer A represented 37% of revenue; Customer B represented 11% of revenue.
Key takeaways
Merger with Marvell: On November 1, 2026, Lumentum entered into a definitive agreement to merge with Marvell Technology, with each Lumentum share converting into 4.500 Marvell shares; deal subject to $2.9 billion termination fee for Lumentum and $5.8 billion (or $3.2 billion regulatory) for Marvell.
Cash position: Cash and cash equivalents decreased to $1,272.2 million from $2,043.5 million at fiscal year end, due to $804.4 million used in financing activities and $234.6 million in investing activities.
Inventory: Inventories increased to $807.7 million from $691.6 million at fiscal year end, driven by inventory builds.
Accrued accounts receivable: $100.0 million recorded in Q1 FY2027 for a manufacturing capacity reservation agreement with a customer.
Goodwill: Goodwill increased slightly to $1,069.9 million from $1,069.3 million due to measurement period adjustment for Greensboro facility acquisition.
Key metrics
Customer concentration
Disclosure changes
- Subsequent events
Lumentum entered into a definitive merger agreement with Marvell Technology, Inc. on November 1, 2026, under which each Lumentum common share will convert into 4.500 Marvell shares. The deal includes termination fees of $2.9 billion for Lumentum and $5.8 billion (or $3.2 billion regulatory termination fee) for Marvell.
Material pending transaction that will result in Lumentum becoming a wholly-owned subsidiary of Marvell; represents transformative strategic combination - Customer concentration
Two end customers accounted for 37% and 11% of total net revenue in Q1 FY2027. As of September 26, 2026, three customers individually accounted for 33.4%, 13.7%, and 11.3% of gross accounts receivable.
Customer concentration increased significantly; top customer concentration jumped from 22% to 37% of revenue; accounts receivable concentration now includes three customers vs. two previously - Accrued accounts receivable
$100.0 million in accrued accounts receivable recorded for a manufacturing capacity reservation agreement with a customer, payable in two installments with first installment due upon execution.
New $100 million contract liability arrangement with customer represents significant forward commitment - Revenue recognition - contract balances
Deferred revenue and customer deposits - non-current increased to $109.5 million from $1.4 million, primarily due to $100.0 million contract liability to certain customer.
Significant increase in non-current deferred revenue reflects new customer prepayments - Other non-current liabilities
Other non-current liabilities increased to $246.4 million from $115.2 million, largely due to $100.0 million contract liability and increase in unrecognized tax benefits to $89.4 million from $67.2 million.
Significant increase in liabilities driven by customer prepayment and tax positions - Revenue - geographic concentration
Americas revenue grew to 42.0% of total from 33.0% YoY; Mexico revenue increased to 18.3% from 13.8% YoY; Asia-Pacific decreased to 54.2% from 60.2% YoY.
Significant geographic shift with Americas growing as percentage of revenue while Asia-Pacific declined
Primary source
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