Lumentum Holdings shares extended their decline Monday, on news of the telecom equipment maker lowering its outlook on current quarter revenue.
The company announced that it halted shipments to telecom/electronics giant Huawei, and currently expects revenues for the three months ending in June to range between $375 million and $390 million – below its prior predicted range of $405 million and $425 million.
Lumentum has also slashed its earnings per share guidance to a range of 65 cents to 77 cents a share, compared to the previous estimated range of 85 cents to $1.00.
Indicating that it aims to comply with the U.S. export regulations vis-a-vis license requirements, the company said, "Lumentum has discontinued all shipments to Huawei effective as of the date the licensing requirements went into effect and cannot predict when it will be able to resume shipments".