🚨 $LITE CEO: NO CUSTOMER HAS ASKED TO DELAY AN ORDER SINCE RATES JUMPED. COMMITMENTS ARE "TO A LARGE DEGREE NON-CANCELABLE," AND 2027-28 GROWTH RIDES ON DATA CENTERS SWITCHING FROM ELECTRICAL TO OPTICAL On Oct. 16, Lumentum ($LITE) chief executive Michael Hurlston said no customer has slowed, delayed or asked to renegotiate an order since interest rates started rising, and that the company has made it "a lot more difficult for customers to walk away." He spoke to Liz Claman on the first episode of Fox Business's "Claman's Power Players," in a week that closed with the 10-year Treasury yield above 5%. - Commitments: "The purchase commitments we have are, to a large degree, non-cancelable, so they can't walk away quickly" - Why: Lumentum runs its own fabs, "sort of the TSMC of laser chips," and invests "3 years ahead of when we might see demand," so it pushes part of that risk onto customers - Rates: asked whether any customer had slowed, delayed or asked to renegotiate, he said, "We haven't, in fact," and expects hyperscalers to report higher capex this cycle - Demand: "every day we build, our customers seem to want more" - 2027-28: even in "a world where data center build outs do slow significantly," he sees "very little impact," because Lumentum's numbers "in '27 and certainly in 2028" will be governed by "that conversion from electrical to optical" - China: about 70% of transceiver supply comes from China; Lumentum and "one or two other U.S. names" make up 30%, and a U.S. ban would be "a double-edged sword"