Lumentum debuts new L-band modules for fiber networks

SAN JOSE, Calif. - Lumentum Holdings Inc. (NASDAQ: LITE), a provider of optical and photonic solutions with a market capitalization of $4.3 billion, has started limited sampling of its latest 400/800G ZR+ L-band pluggable modules. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.76, indicating robust operational flexibility. This development comes alongside the announcement of the general availability of the 800G ZR+ C-band module. These advancements aim to enhance fiber capacity for data center interconnects, metro, and long-haul networks.

The new L-band modules are designed to double the usable wavelength range, offering expanded fiber capacity. They support 800G data rates for data center and metro applications and 400G for long-haul deployments, using quadrature phase shift keying (QPSK) to optimize reach and performance. While the company’s stock has experienced a 12.3% decline over the past week, 13 analysts have revised their earnings upwards for the upcoming period, suggesting confidence in Lumentum’s technological roadmap.

At the 2025 Optical Fiber Communications Conference and Exhibition in San Francisco, Lumentum will demonstrate these modules, including the 400G ZR++ L-band module paired with the TrueFlex® Micro Twin 2x34 integrated C and L Wavelength Selective Switch (WSS). This pairing is intended to showcase a system-level solution that is both comprehensive and cost-effective.

Marc Stiller, Vice President of Product Line Management at Lumentum, stated that the company’s high-performance optics and integration expertise are now applied to the L-band to assist customers in scaling their networks efficiently. The goal is to meet the increasing demands of AI and cloud-based applications by unlocking greater capacity on existing fiber infrastructures.

Lumentum’s pluggable modules facilitate direct router-to-router connectivity, simplifying system complexity and reducing costs. The introduction of both L-band and C-band modules is a response to the growing global fiber shortage and the need for rapid scaling of network transmission capacity due to the surge in data traffic from artificial intelligence (AI) and machine learning (ML).

Lumentum (NASDAQ: LITE), headquartered in San Jose, California, operates globally, offering optical components and subsystems for various telecom, enterprise, and data center networks, as well as lasers for advanced manufacturing and diverse applications like 3D sensing. This announcement is based on a press release statement.

In other recent news, Lumentum Holdings Inc. reported fiscal second-quarter results that exceeded expectations, with adjusted earnings per share at $0.42, surpassing the analyst estimate of $0.35. The company also reported revenue of $402.2 million, which was higher than the consensus forecast of $388.86 million and represented a 9.7% increase year-over-year. Despite these positive results, Lumentum’s shares experienced a decline, possibly due to high investor expectations. Looking ahead, the company anticipates third-quarter revenue between $410 million and $425 million, and adjusted EPS of $0.47 to $0.53, both aligning closely with market expectations.

Additionally, Lumentum has been selected as a major partner in NVIDIA’s silicon photonics project, supplying high-power indium phosphide lasers for NVIDIA’s Spectrum-X Photonics networking switches. This partnership aims to address power consumption challenges in AI infrastructure scaling. In another development, Jefferies resumed coverage of Lumentum with a Buy rating and set a price target of $100.00, citing the company’s potential in the electro-absorption modulated laser market, which is seeing high demand. The firm highlighted Lumentum’s strategic positioning in the laser market, particularly as the industry shifts towards higher-speed solutions.

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