CEO Michael Hurlston stated in the earnings report that while the nearly 90% revenue growth rate is certainly impressive, the most remarkable achievement this quarter lies in the continuous expansion of profit margins. The 32.2% non-GAAP operating profit margin this quarter is already far above the typical 15%-20% level of traditional optical component companies, fully demonstrating the strong pricing power and economies of scale of the high-end optical chip business during the AI demand boom. Key factors driving margin expansion, besides the high-margin product mix optimization brought by the large-scale shipment of EML lasers, also include the outstanding performance of the "scale expansion" components (pump lasers and narrow-linewidth laser components). Management expects that as the two major mid-to-long-term core growth engines, CPO (Co-Packaged Optics) and OCS (Optical Circuit Switch), begin to contribute substantially to revenue in the coming quarters, the company's profit center is expected to shift further upward.

Will take a closer look later. Storage is so scary 😂 Back to the previous feeling.

$Lumentum(LITE.US)