#United States #financial results #Chandler #Fiscal 2025 #VIAVI Solutions

VIAVI Reports Impressive Second Quarter Results for Fiscal 2025

VIAVI Solutions, traded on NASDAQ under the symbol VIAV, recently disclosed its financial performance for the second quarter of fiscal 2025, which concluded on December 28, 2024. The results illustrate a positive trajectory, with key metrics indicating growth and resilience despite previous market challenges.

Key Highlights

In the second quarter, VIAVI achieved net revenues amounting to $270.8 million, marking an increase of $16.3 million or 6.4% compared to the same period last year. This growth can largely be attributed to a rebound in demand for Network and Service Enablement solutions. In terms of profitability, the GAAP operating margin stood at 8.2%, reflecting a slight decline of 60 basis points year-over-year, but the non-GAAP operating margin improved to 14.9%, which is an increase of 170 basis points year-over-year.

The company reported a net income of $9.1 million, down by 15.0% year-over-year, yet the non-GAAP net income rose to $29.4 million, representing an increase of 24.1% compared to the prior year. The earnings per share (EPS) figures showcased a decline in GAAP EPS to $0.04 but an increase in non-GAAP EPS to $0.13, indicating a positive response from investors.

Market Recovery

Oleg Khaykin, the President and CEO of VIAVI, noted that the financial outcomes exceeded expectations primarily due to the resurgence in demand from their New Service Enablement (NSE) segment. He further expressed optimism regarding future growth, underscoring that market recovery within traditional service provider end markets, combined with expansion in new sectors such as data centers, aerospace, and defense, positions VIAVI well for long-term success.

Detailed Financial Performance

The following performance metrics provide insight into VIAVI's second quarter results:

• - Net Revenue: $270.8 million (up from $254.5 million in Q2 FY 2024)
• - GAAP Operating Margin: 8.2% (down from 8.8% in Q2 FY 2024)
• - Non-GAAP Operating Margin: 14.9% (up from 13.2% in Q2 FY 2024)
• - Net Income: $9.1 million (down from $10.7 million in Q2 FY 2024)
• - Non-GAAP Net Income: $29.4 million (up from $23.7 million in Q2 FY 2024)
• - GAAP EPS: $0.04 (down from $0.05 in Q2 FY 2024)
• - Non-GAAP EPS: $0.13 (up from $0.11 in Q2 FY 2024)

The revenue breakdown by segment revealed the following:

• - Network Enablement: $179.0 million, representing a growth of 15.1% year-over-year.
• - Service Enablement: $20.9 million, indicating a year-over-year decline of 13.3%.
• - Optical Security and Performance Products: $70.9 million, showing a decrease of 5.3% compared to the previous quarter.

Future Prospects

Looking forward to the third quarter of fiscal 2025, which will conclude on March 29, 2025, VIAVI anticipates a net revenue range between $276 million to $288 million and non-GAAP EPS between $0.10 and $0.13. The company remains focused on navigating the anticipated challenges and opportunities within its operational landscape, as it continues to capitalize on positive market trends.

Conclusion

VIAVI’s second quarter results showcase a robust growth trajectory, revealing resilience in the face of external pressures and a strategic focus on diversifying its market presence. As the company advances, its commitment to innovative solutions across multiple sectors positions it favorably for sustained growth in the coming periods.

For more detailed information, including financial tables and full reconciliations of GAAP to non-GAAP measures, visit VIAVI's Investor Relations.