Shares of Lumentum Holdings Inc. (LITE - Get Report) tumbled nearly 30% on Monday after the optical equipment maker cut its fiscal second-quarter revenue and earnings outlook due to a request from one of its largest customers to "materially reduce shipments" for previously placed orders.
The Milpitas, California-based company cut the guidance range for adjusted earnings to $1.15 to $1.34 a share from $1.60 to $1.75. The revenue outlook was reduced to $335 million to $355 million from $405 million to $430 million.
"We recently received a request from one of our largest Industrial and Consumer customers for laser diodes for 3D sensing to materially reduce shipments to them during our fiscal second quarter for previously placed orders that were originally scheduled for delivery during the quarter," Alan Lowe, president and CEO, said in a statement.
Lumentum Holdings Inc. didn't identify the customer that reduced the shipments.