Technology Stocks

Lumentum Holdings Inc. (NASDAQ:LITE) Expects Smartphone Manufactures To Launch Devices With 3D Sensing Technology

Lumentum Holdings Inc. (NASDAQ:LITE) gained 2.43% in the last trading session to close at $45.52.

Lumentum Holdings Inc. (NASDAQ:LITE) has indicated that they expect Android smartphone manufacturers to launch mobiles devices that use the facial recognition technology in 2019 even after Apple Inc. supplier projections indicate that they expect slightly lower revenue for this quarter.

Reducing dependence on Apple

According to Lementum Holdings the securing of contracts for their 3D sensing facial recognition technology for most Android manufacturers will reduce the dependence of the company on Apple that has already issued a warning about slowing of sales in China. Samsung is adopting the 3D sensing technology in its latest S10 5G smartphones.

The California based company lost 4% on Tuesday joining AMS and Infineon who had also projected slowing sales.

Alex Henderson Needham and Co analysts stated that Android seemed to be strong but it is nonetheless still small when it comes to Apple. However, orders and design wins seem to be strong for android for the front and world facing.

Lementum usually receives over 80% of their revenue from the optical communication products that are forayed into smart devices market that have the vertical-cavity surface –emitting lasers used to power the Face ID as well as the portrait and animoji mode feature on the latest iPhones.

In 2018 the company acquired Oclaro to enhance their position against competitor Finisa Corp that also is in the business of supplying Apple with 3D sensing laser.

2019 prospects

Alan Lowe, the CEO, stated that in 2019 based on the current customer engagements they expect the existing and new customers to unveil additional 3D sensing products. Lowe said that most of the opportunities will bring new functionality to the company and they expect to expand their content per devices which includes then world facing capabilities.

Lementum expects its third-quarter revenue to be approximately $420 million and $440 million. Their total revenue dropped 7.6% to $373.7 exceeding the analysts’ projections of around $359.6 million. The common shares plunged to $0.8 per share in the second quarter down from $3.05 the previous year.

Leave a Comment

Your email address will not be published.