Lumentum Holdings (LITE) - Get Lumentum Holdings Inc. Report shares traded lower Monday after the chipmaker, and key Apple (AAPL) - Get Apple Inc. Report supplier, cut its current quarter revenue outlook after saying it discontinued all shipments to China's Huawei Technologies.
Lumentum said it now sees revenues for the three months ending in June in the region of $375 million to $390 million, down from its prior forecast of $405 million to $425 million issued on May 7. The cut will hit earnings, as well, Lumentum said, with EPS now guided in the range of 65 cents to 77 cents a share, down from 85 cents to $1.00.
Lumentum "intends to fully comply with the recent United States Department of Commerce imposed license requirements for the export, reexport and/or in-country transfer of all items subject to U.S. export control regulations to Huawei Technologies Co., Ltd. and designated affiliates of Huawei," the company said in a statement. "Lumentum has discontinued all shipments to Huawei effective as of the date the licensing requirements went into effect and cannot predict when it will be able to resume shipments."
Lumentum shares were down 3.2% to $44.86 in trading Monday.
Lumentum, which also supplies 3D chips for Apple iPhone's facial recognition system, was also pressured by the iPhone maker's pre-market decline of 2.6% following a price target cut from HSBC.