As we’ve discussed, Chinese smartphone maker Huawei has been blacklisted. Its addition to the Bureau of Industry and Security Entity List prohibits US companies from selling products to the Chinese company without getting a license. Donald Trump has reportedly identified Huawei as a national security risk.
Lumentum slashes its revenue guidance
After Trump’s blocking of Huawei, US optical and photonic manufacturer Lumentum (LITE) discontinued all shipments to the company, joining NeoPhotonics, Skyworks, Qorvo, and others. Lumentum stock fell 4.1% yesterday to $44.42.
Lumentum also slashed its revenue guidance for the current quarter yesterday, by 7.4% to $375 million from $405 million—it has significant exposure to Huawei and cannot predict when it can resume shipments to the company. Lumentum derived ~18% of its total revenue from Huawei in its latest quarter.