Lumentum's Earnings Call: Unpacking Contradictions in OCS Revenue, Production Timelines, and CapEx Strategy

Record Growth in Cloud and Networking Segment:
- Lumentum reported revenue of $56.6 million for the Industrial Tech segment, which was down 6% sequentially but up 6% year-on-year.
- The growth in the Industrial Tech segment was driven by strong demand from a leading tool supplier supporting high-volume solar cell manufacturing.

Optical Circuit Switch (OCS) Revenue and Expansion:
- Lumentum started recognizing revenue with its OCS product, with shipments to two hyperscale customers.
- The company is accelerating the expansion of its in-house OCS manufacturing capacity due to high demand, indicating significant growth potential in this area.

Strong EML Shipments and Capacity Expansion:
- The Cloud & Networking segment achieved 16% sequential and 67% year-on-year revenue growth, with EML shipments nearly doubling compared to the previous fiscal quarter.
- This growth was supported by the expansion of the wafer fab, enabling higher volumes of EMLs and other indium phosphide-based devices.

200G EML Orders and Future Demand:
- Lumentum received a substantial order for 200G lane speed EML chips, expected to be fulfilled in the December quarter.
- The increase in demand and orders for 200G EMLs highlights the potential for significant revenue contributions in the coming fiscal year.