Zhitong Finance App learned that optical communication device manufacturer Lumentum (LITE.US) has brought forward the financial report for the first quarter of fiscal year 2027, which was originally scheduled to be released after the market on November 5, until the US stock market on November 2 due to the official announcement that it was acquired by Maywell Technology (MRVL.US) on the same day. Financial reports showed that revenue for the quarter was $1,263 million, up 136.5% year over year, slightly higher than market expectations of about $1.25 billion; non-GAAP diluted earnings per share were $4.57, higher than the forecast of about $4.2 billion.
Non-GAAP gross margin of 53.2%, non-GAAP operating margin of 42.3%; GAAP net profit of $360 million was only $4.2 million in the same period last year.
By product, component business revenue was 754 million US dollars, up 98.9% year on year; system business revenue was 508 million US dollars, up 228.8% year on year. CEO Michael Helston said that pumped lasers and optical path switching (OCS) were the biggest growth drivers of the quarter; the company has received a second large-scale NPO/CPO (near package/co-package optics) order with related procurement commitments of more than 5 billion US dollars. The visibility of OCS demand has expanded significantly in recent months, and is expected to become a multi-billion dollar revenue source every year.
The company expects second-quarter revenue of $1,575 million to $1,625 million, an increase of approximately $350 million over the previous quarter; non-GAAP operating margin of 45% to 46%; and non-GAAP earnings per share of 5.90 to 6.20 dollars.
On the same day, MRVL.US (MRVL.US) announced the acquisition of Lumentum through an all-share transaction: Lumentum shareholders will receive 4.5 shares of Mywell's common shares, equivalent to approximately $1,132 per share, a premium of about 23.9% over the closing price unaffected by rumours of the acquisition on October 28. The transaction implied a corporate value of about US$115 billion.
This is the largest merger and acquisition deal of the year in terms of equity value, and the largest merger in the history of the global technology industry (not counting the SpaceX and xAI merger). Lumentum's laser and optical technology is used to transfer massive amounts of data between data centers at high speed and is the underlying support for AI infrastructure; Maywell had previously purchased laser technology from it and acquired photonic technology company Celestial AI earlier this year.
Nvidia (NVDA.US) also invested $2 billion in Lumentum in March of this year and launched a photonic technology partnership. Maywell also cooperated with Amazon (AMZN.US) cloud business and Microsoft (MSFT.US) to develop customized AI chips, and reached a TPU chip agreement with Google in August.
According to the data, as of the close of October 30, Lumentum's stock price was $840.70, with a cumulative increase of 128% during the year, with a market capitalization of about $76 billion; Mewell rose 131% during the year, with a market capitalization of $172.2 billion. The transaction is expected to be completed in the first half of 2028. After the merger, the company's target market size is expected to expand to US$550 billion, which is expected to achieve cost synergies of more than US$1 billion each year. Matt Murphy, Chairman and CEO of Maywell, will be in charge of the merged company.