uploads///lumentum revenues

Huawei Ban Prompts US Supplier Lumentum to Cut Guidance

By

May. 21 2019, Published 5:49 p.m. ET

Huawei’s blacklisting

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.

Article continues below advertisement

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. 

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.