Lumentum expands optical circuit switch lineup with new R64 platform

SAN JOSE - Lumentum Holdings Inc. (NASDAQ:LITE), whose stock has surged nearly 170% over the past year and currently trades near its 52-week high of $173.38, announced the expansion of its Optical Circuit Switch (OCS) product line with the new R64 platform, a 64x64-port product designed for lower-port-count applications in AI data centers. According to InvestingPro data, the company has shown robust revenue growth of 21% in the last twelve months, positioning it well in the expanding AI infrastructure market.

The R64 OCS complements the company’s existing R300 OCS 300x300 port product and leverages the same MEMS technology that Lumentum has developed over decades for telecom applications. According to the company’s press release, the new platform consumes less than 150 W while capable of carrying over 100Tbps of optical traffic, representing an 80% power reduction compared to packet-based switches. With a strong liquidity position reflected in its current ratio of 4.37, Lumentum appears well-equipped to support its product innovation initiatives. Discover more financial insights and 15+ additional ProTips with InvestingPro.

"The R64 now brings our proven MEMS technology in a smaller scale to help bring the advantages of OCS to even more applications within AI data center networks," said Peter Roorda, Lumentum general manager, Cloud & Networking.

The 2RU form factor device features low insertion loss, minimal polarization dependence, and operates in both O-band and C-band applications. The platform allows scaling to 72x72 ports and supports both uni-directional and bi-directional operation with full any-to-any fiber connectivity.

Lumentum claims its proprietary MEMS design is inherently stable over product lifetimes and requires no feedback mechanism, which avoids control loop dither noise and reduces system complexity.

The company will showcase the new product at the ECOC exhibition in Copenhagen, Denmark, from September 29-October 1. Customer sampling is expected to begin in calendar Q4 2025, with general availability planned for the second half of 2026. For investors tracking Lumentum’s progress, the company’s next earnings announcement is scheduled for November 5, 2025, with analysts maintaining positive growth expectations for the upcoming period.

In other recent news, Lumentum Holdings Inc. has priced a $1.1 billion convertible senior notes offering, set to mature in 2032. The offering is directed at qualified institutional buyers, with an interest rate of 0.375% per year, payable semi-annually. Additionally, the company has provided initial purchasers a 13-day option to acquire an extra $165 million in notes. Alongside this, Rosenblatt has raised its price target for Lumentum to $225 from $150, maintaining a Buy rating and highlighting the company as a top pick for 2025. Furthermore, BofA Securities has upgraded Lumentum’s stock from Underperform to Neutral, increasing its price target to $135 from $78. This upgrade was influenced by Lumentum’s potential to achieve its medium-term revenue run-rate of $600 million per quarter sooner than anticipated. These developments reflect significant financial maneuvers and analyst adjustments for the company.

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