This table sets forth selected financial data of Lumentum (in millions, except share and per share amounts) for the periods indicated. This data should be read in conjunction with the discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Item 7 of this Annual Report and our audited consolidated financial statements included in Item 8 of this Annual Report. The selected data in this section are not intended to replace the Consolidated Financial Statements included in this Annual Report.
Our historical consolidated financial statements for the fiscal years ended July 2, 2016 and June 27, 2015, include allocations of expenses arising from shared services and infrastructure provided by Viavi to us, including costs of information technology, human resources, accounting, legal, real estate and facilities, corporate marketing, insurance, treasury and other corporate and infrastructure services. The financial information included here may not necessarily reflect our financial position and results of operations or what our financial position and results of operations would have been had we been an independent, publicly-traded company during the entirety of the periods presented or be indicative of our future performance as an independent company. There were no allocations of expenses from Viavi for the fiscal years ended June 29, 2019, June 30, 2018, or July 1, 2017.
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| Years Ended | | | | | | | | | | | | | | | | | | |
| June 29, 2019 (1) | | | | June 30, 2018 (2) | | | | July 1, 2017 (3) | | | | July 2, 2016 | | | | June 27, 2015 (4) | | |
| Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | |
| Net revenue | $ | 1,565.3 | | | $ | 1,247.7 | | | $ | 1,001.6 | | | $ | 903.0 | | | $ | 837.1 | |
| Gross profit | 425.9 | | | | 432.1 | | | | 318.1 | | | | 277.3 | | | | 257.9 | | |
| Income (loss) from operations | (21.6 | | ) | | 139.9 | | | | 47.6 | | | | 11.5 | | | | (23.4 | | ) |
| Net (loss) income | (36.4 | | ) | | 248.1 | | | | (102.5 | | ) | | 9.3 | | | | (3.4 | | ) |
| Cumulative dividends on Series A Preferred Stock | (0.3 | | ) | | (0.9 | | ) | | (0.9 | | ) | | (0.8 | | ) | | — | | |
| Accretion of Series A Preferred Stock | — | | | | — | | | | — | | | | (11.7 | | ) | | — | | |
| Earnings allocated to Series A Preferred Stock | (1.2 | | ) | | (5.7 | | ) | | — | | | | — | | | | — | | |
| Net income (loss) attributable to common stockholders | $ | (37.9 | ) | | $ | 241.5 | | | $ | (103.4 | ) | | $ | (3.2 | ) | | $ | (3.4 | ) |
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| Net income (loss) per share attributable to common stockholders (5): | | | | | | | | | | | | | | | | | | | |
| Basic | $ | (0.54 | ) | | $ | 3.88 | | | $ | (1.71 | ) | | $ | (0.05 | ) | | $ | (0.06 | ) |
| Diluted | $ | (0.54 | ) | | $ | 3.82 | | | $ | (1.71 | ) | | $ | (0.05 | ) | | $ | (0.06 | ) |
| Shares used to compute net income (loss) per share attributable to common stockholders (5): | | | | | | | | | | | | | | | | | | | |
| Basic | 70.7 | | | | 62.3 | | | | 60.6 | | | | 59.1 | | | | 58.8 | | |
| Diluted | 70.7 | | | | 63.3 | | | | 60.6 | | | | 59.1 | | | | 58.8 | | |
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| Balance as of | | | | | | | | | | | | | | | | | | |
| June 29, 2019 (1) | | | | June 30, 2018 (2) | | | | July 1, 2017 (3) | | | | July 2, 2016 | | | | June 27, 2015 (4) | | |
| Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | $ | 432.6 | | | $ | 397.3 | | | $ | 272.9 | | | $ | 157.1 | | | $ | 14.5 | |
| Total assets | 2,716.6 | | | | 1,581.5 | | | | 1,232.9 | | | | 726.3 | | | | 512.6 | | |
| Convertible notes | 351.9 | | | | 334.2 | | | | 317.5 | | | | — | | | | — | | |
| Term loan, non-current | 484.0 | | | | — | | | | — | | | | — | | | | — | | |
| Derivative liability | — | | | | 52.4 | | | | 51.6 | | | | 10.3 | | | | — | | |
| Other non-current liabilities | 33.7 | | | | 19.0 | | | | 25.0 | | | | 9.1 | | | | 9.8 | | |
| Total redeemable convertible preferred stock | — | | | | 35.8 | | | | 35.8 | | | | 35.8 | | | | — | | |
| Total stockholders’ equity | 1,497.1 | | | | 926.1 | | | | 618.8 | | | | 497.4 | | | | 380.6 | | |
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| (1) | On December 10, 2018, we completed the acquisition of Oclaro, a provider of optical components and modules for the long-haul, metro and data center markets, for $1.4 billion, which was funded through the issuance of Lumentum common stock, new debt, and cash balances of the combined company. Refer to “Note 5. Business Combination” in the notes to consolidated financial statements for further discussion of the merger. Results of operations and financial position of the business acquired have been included in our consolidated financial statements subsequent to the date of acquisition. |
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| (2) | During the second quarter of fiscal 2018, we had a credit of $207.0 million primarily related to a release of a U.S. valuation allowance, which was offset by a write-down of deferred tax assets in the amount of $83.0 million due to the lower corporate tax rate enacted under the 2017 “Tax Cuts and Jobs Act” reform. |
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| (3) | During the third quarter of fiscal 2017, we completed the acquisition of a privately held company. Results of operations and financial position of the business acquired have been included in our consolidated financial statements subsequent to the date of acquisition. |
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| (4) | In fiscal 2015, we settled an audit in a non-U.S. jurisdiction which resulted in the recognition of a $21.8 million tax benefit. In addition, we recognized $14.1 million of additional deferred tax assets which were fully offset by a corresponding increase in the deferred tax valuation allowance. |
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| (5) | On August 1, 2015, JDSU distributed 47.1 million shares, or 80.1% of the outstanding shares of Lumentum common stock to existing holders of JDSU common stock. JDSU was renamed Viavi and at the time of distribution, retained 11.7 million shares, or 19.9% of Lumentum’s outstanding shares. Basic and diluted net income (loss) per share for all periods through June 27, 2015 is calculated using the shares of Lumentum common stock outstanding on August 1, 2015. |
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