Lumentum Holdings has warned investors of a weaker March quarter after the cancellation of a major order.
The San Jose-based optical and photonic products maker lowered its fiscal 3Q revenue range to between $380 and $384 million, compared to the company’s previous expectation of $430 to $460 million.
"Late in our fiscal 2023 third quarter, a network equipment manufacturer who represented more than 10% of our fiscal second quarter revenue informed us that due to their inventory management, they would not take the shipments we had originally projected for the quarter," said Alan Lowe, Lumentum CEO, in a statement.
"This shortfall is the primary reason that our fiscal 2023 third quarter revenue will be below the low end of our prior guidance range.”
Shares of Lumentum were down more than 10% in early Thursday trading in New York.
Looking ahead, Lowe said the company is expecting “a similar level of shipments to this customer” in its fiscal 4Q as compared to 3Q.
“Nevertheless, our customer relationship remains strong, and we continue to work together closely to help them achieve success,” Lowe added.
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