$Lumentum(LITE)$ Back in May,

$Lumentum(LITE)$ Back in May, OCS was described as the biggest single tightrope, with supply gating both pace and slope. By Q4, that picture shifted: shipments doubled, and the first triple-digit OCS revenue quarter is now baked into guidance.

At $1.01B in revenue, the 50% gross margin threshold arrived at roughly half the $2B run rate originally required — management acknowledged it came quite a bit sooner than expectations. With the $1.25B revenue target reached one quarter ahead of schedule, new financial targets are being deferred to the next OFC.

Meanwhile, supply pressure has migrated to other areas. Pump lasers are now the new constraint, with demand running more than 30% above supply, triggering a fourfold ramp backed by 3-year take-or-pay agreements with NEMs. On high-power lasers, Hurlston noted they are very much further behind, and Yuen clarified the cause is demand acceleration, not execution.

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