Accessibility StatementSkip Navigation VIAVI assured PNT solutions will be integrated at NTIA-funded VALORâ"¢ and ORCID Labs to test and demonstrate their ability to protect cellular networks CHANDLER, Ariz., Nov. 19, 2025 /PRNewswire/ -- VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) has received an award from the U.S. Department of Transportation (DOT) through its Complementary Positioning, Navigation, and Timing (CPNT) Action Plan Rapid Phase II. VIAVI will integrate and test its SecureTime altGNSS GEO-L ...

Group 1 - The 2025 Annual Meeting of Stockholders of Viavi Solutions Inc. was called to order by Richard Belluzzo, Chair of the Board of Directors [1] - The meeting included attendance from various members of the Board of Directors and executive team, including the President and CEO, CFO, and General Counsel [2] - The rules of procedures for the virtual meeting were posted on the meeting website to ensure orderly participation from stockholders and proxy holders [3]

Core Insights - VIAVI Solutions Inc. has partnered with Calnex Solutions plc to provide test solutions for Open RAN products, enhancing compliance with O-RAN ALLIANCE and 3GPP standards [1][2][3] - The shift towards Open RAN and AI-RAN in 5G and 6G systems is expanding the telecom infrastructure market, allowing more companies, including startups, to participate [2] - The partnership aims to simplify and reduce costs associated with in-house Open RAN testing, enabling immediate setup without debugging [1][4] Company Overview - VIAVI Solutions is a global provider of network test, monitoring, and assurance solutions across various sectors, including telecommunications and cloud computing [5] - Calnex Solutions specializes in test and measurement instrumentation for validating telecom and cloud infrastructure performance [6] Testing Solutions - The partnership offers three immediate testbeds for manufacturers of O-RU, O-DU, and O-CU equipment, with additional testbeds in development [3] - The integrated systems support full O-RAN and 3GPP conformance testing, emulating realistic network impairments such as jitter and delay [4] - Key testing capabilities include S-plane resilience and advanced scenarios like multi-cell handovers, along with cybersecurity vulnerability testing [4]

Group 1 - Viavi Solutions Inc. experienced a significant stock price increase of 28.7% week-on-week, driven by positive investor sentiment and a bullish business outlook [1][2] - The company anticipates strong ongoing demand for its data center ecosystem and aerospace and defense technologies [1][3] - In the first quarter of fiscal year 2026, Viavi Solutions reported a revenue increase of 25% to $299.1 million compared to $238.2 million in the same period last year, although net loss expanded by 1,089% to $21.4 million from $1.8 million year-on-year [3] Group 2 - For the second quarter of the fiscal period, Viavi Solutions targets revenues between $360 million and $370 million [3] - Investment firm Stifel raised its price target for Viavi Solutions to $18 from $15 while maintaining a "buy" recommendation [4]

Core Insights - Viavi Solutions Inc. (NASDAQ:VIAV) reached a new 52-week high of $17.43, closing at $17.10, reflecting a 22.32% increase in a single trading session [1][3] - Investment firm Stifel raised its price target for Viavi Solutions from $15 to $18 while maintaining a "buy" recommendation [2][3] - The company's first quarter fiscal year 2026 revenues increased by 25% to $299.1 million compared to $238.2 million in the same period last year [2][3] - Despite revenue growth, Viavi Solutions reported a significant increase in net loss, expanding by 1,089% to $21.4 million from $1.8 million year-on-year [3] - For the second quarter of the fiscal period, Viavi Solutions targets revenues between $360 million and $370 million [3]

Financial Performance - Net revenue for the first quarter of fiscal 2026 was $299.1 million, an increase of $60.9 million or 25.6% year-over-year[174]. - GAAP net loss was $21.4 million, an increase of $19.6 million or 1,088.9% year-over-year, while non-GAAP net income was $33.1 million, up $20.7 million or 166.9% year-over-year[174]. - Non-GAAP diluted EPS was $0.15, an increase of $0.09 or 150.0% year-over-year, compared to GAAP diluted EPS of $(0.10), down $0.09 or 900.0% year-over-year[174]. - Total net revenue for the three months ended September 27, 2025, was $299.1 million, an increase of $60.9 million or 25.6% compared to $238.2 million for the same period in 2024[186]. - NSE segment net revenue increased by $56.6 million or 35.5% to $216.0 million, while OSP segment net revenue rose by $4.3 million or 5.5% to $83.1 million[186]. - Product revenues increased by $59.9 million or 30.3%, while service revenues increased by $1.0 million or 2.5% during the same period[187]. - Gross profit for the period was $169.0 million, reflecting a 24.2% increase from $136.1 million, with a gross margin of 56.5%[186]. Expenses and Margins - Research and Development (R&D) expenses rose by $6.6 million or 13.4%, totaling $56.0 million, which is 18.7% of net revenue[196]. - Selling, General and Administrative (SG&A) expenses increased by $30.1 million or 40.6%, amounting to $104.2 million, representing 34.8% of net revenue[198]. - Non-GAAP operating margin improved to 15.7%, up 570 bps year-over-year, while GAAP operating margin decreased to 2.5%, down 230 bps year-over-year[174]. Acquisitions and Growth - The acquisition of Inertial Labs contributed $18.7 million in net revenue during the first quarter of fiscal 2026[169]. - The company expects continued growth in the NSE segment driven by the data center ecosystem and aerospace and defense markets[171]. - The company aims to extend its technologies into adjacent markets to expand its total addressable market (TAM)[173]. Cash Flow and Financing - Cash provided by operating activities was $31.0 million, consisting of a net loss of $21.4 million adjusted for non-cash charges totaling $62.3 million[230]. - Cash used in investing activities was $8.3 million, primarily for capital expenditures of $8.5 million and the acquisition of Inertial Labs[231]. - Cash provided by financing activities was $97.7 million, primarily from proceeds of $149.1 million from the issuance of the 2031 Notes[232]. - As of September 27, 2025, the combined balance of cash and cash equivalents and restricted cash increased by $120.0 million to $552.1 million from $432.1 million as of June 28, 2025[229]. - The company repurchased and retired 2.7 million shares of common stock for $30.0 million during the three months ended September 27, 2025, with remaining authorization of $168.4 million for future repurchases[233]. Tax and Liabilities - The income tax provision for the three months ended September 27, 2025, was $19.0 million, up from $9.0 million in the same period last year, reflecting a 111.1% increase[209]. - The pension plans were under-funded by $51.2 million as of September 27, 2025, with the fair value of plan assets decreasing approximately 5.0% since June 28, 2025[238]. Market and Risk Factors - The company's market risk related to foreign exchange and interest rates has not changed materially from previous disclosures[246]. - The company's consolidated financial statements are prepared in accordance with U.S. GAAP, requiring management to make significant judgments and estimates that affect reported amounts of assets and liabilities[243]. - The fair value of contingent purchase consideration liabilities is remeasured at each reporting period, with significant judgment involved in the estimates used[244]. - A 50-basis point change in the discount rate would result in a corresponding increase or decrease in the post-retirement benefit obligation (PBO) of approximately $4.0 million based on data as of June 28, 2025[245]. - The company is analyzing ways to mitigate the impact of tariffs on operations and supply chain strategies[171].

Core Insights - Viavi Solutions Inc. (VIAV) reported strong first-quarter fiscal 2026 results, with revenues and net income exceeding Zacks Consensus Estimates, driven by growth in the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments [1][4][10] Financial Performance - The company recorded a GAAP net loss of $21.4 million, or a loss of 10 cents per share, compared to a net loss of $1.8 million, or a loss of 1 cent per share in the same quarter last year [2] - Non-GAAP net income rose to $33.1 million, or 15 cents per share, from $12.4 million, or 6 cents per share in the prior-year quarter, surpassing the Zacks Consensus Estimate by 2 cents [3] Revenue Breakdown - Quarterly revenues reached $299.1 million, reflecting a 25.6% year-over-year increase, driven by strong demand in the NSE and OSP segments, and beating the consensus estimate of $294 million [4][10] - NSE segment sales were $216 million, up from $159.4 million, marking a 35.5% growth due to demand for fiber lab and production products, as well as aerospace and defense products [5] - OSP revenues increased to $83.1 million from $78.8 million, primarily due to strength in anti-counterfeiting products [5] - Revenue contributions from different regions included $128.8 million from America, $92.1 million from Asia-Pacific, and $78.2 million from EMEA, with respective year-over-year increases [6] Margins and Operating Performance - Non-GAAP gross margin for the quarter was 60%, up 90 basis points from the prior year, with NSE segment gross margin at 63%, up 210 basis points, while OSP segment gross margin decreased to 52.3%, down 300 basis points [7] - Total non-GAAP operating margin increased by 570 basis points year-over-year to 15.7%, with NSE operating margin rising 1,210 basis points to 7.5%, while OSP operating margin decreased by 250 basis points to 37.1% due to higher manufacturing costs [8] Cash Flow and Liquidity - Viavi generated $31 million in cash from operating activities, with free cash flow of $22.5 million, and had $543.8 million in cash and cash equivalents against $640.5 million in long-term debt as of September 27, 2025 [9] Future Outlook - For the second quarter of fiscal 2026, management anticipates revenues between $360 million and $370 million, with non-GAAP earnings per share expected to be between 18 cents and 20 cents [11] - NSE segment revenues are projected to be between $283 million and $293 million, with a non-GAAP operating margin of 13.6%, while OSP segment revenues are expected to be approximately $77 million, with a non-GAAP operating margin of 34% [11]

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Core Insights - Viav Solutions (VIAV) reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.06 per share a year ago, resulting in an earnings surprise of +15.38% [1] - The company achieved revenues of $299.1 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.60% and up from $238.2 million year-over-year [2] - Viav Solutions has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The immediate price movement of Viav Solutions' stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $302.5 million, and for the current fiscal year, it is $0.57 on revenues of $1.2 billion [7] Industry Context - The Communication - Components industry, to which Viav Solutions belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Net revenue for Q1 fiscal 2026 was $299.1 million, exceeding guidance of $290 million to $298 million, representing a 3% sequential increase and a 25.6% year-over-year increase [4] - Operating margin for the quarter was 15.7%, above guidance of 14.6% to 15.4%, and increased by 130 basis points sequentially and 570 basis points year-over-year [4] - EPS was $0.15, above guidance of $0.13 to $0.14, and increased by $0.02 sequentially and $0.09 year-over-year [4] Business Segment Data and Key Metrics Changes - NSC revenue was $216 million, above guidance of $208 million to $214 million, with a year-over-year increase of 35.5% driven by strong demand in the data center ecosystem and the acquisition of Inertia Labs [5][6] - OSP revenue was $83.1 million, in line with guidance of $82 million to $84 million, with a year-over-year increase of 5.5% primarily due to strength in anti-counterfeiting products [7] - NSC gross margin was 63%, up 210 basis points year-over-year, while OSP gross margin was 52.3%, down 300 basis points year-over-year due to unfavorable product mix [6][7] Market Data and Key Metrics Changes - The data center ecosystem is driving strong demand for lab and production products, particularly in support of AI data center build-outs [13] - Aerospace and defense business saw strong growth, with continued high demand for positioning, navigation, and timing products [14] - The service providers' business remained stable, with a gradual recovery in fiber offset by soft demand for wireless products [14] Company Strategy and Development Direction - The company plans to leverage the complementary product portfolio from the Spirent acquisition and report NSC as one business segment going forward [11] - The focus is on increasing exposure to the data center ecosystem, which is expected to surpass traditional service provider revenue in the near future [19][20] - The company aims to enhance operational efficiency and expand margins through integration of the Spirent business [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand from the data center ecosystem and aerospace and defense sectors throughout fiscal 2026 [15] - The company anticipates a seasonal decline in OSP revenue in Q2 due to lower demand for anti-counterfeiting and 3D sensing products [10] - Management highlighted the potential for significant operating leverage as the business recovers, with EPS potentially reaching close to $1 if wireless demand rebounds [32] Other Important Information - Total cash and short-term investments at the end of Q1 were $549.1 million, up from $429 million in the previous quarter [8] - The company successfully refinanced $250 million in convertible notes and repurchased approximately 2.7 million shares for about $30 million [8] Q&A Session Summary Question: Update on revenue mix between core telecom service provider and new products - Management indicated a shift in revenue mix to approximately 45% service provider, 40% data center ecosystem, and 15% aerospace and defense post-Spirent acquisition [19] Question: Growth breakdown between data center and aerospace and defense - Management noted strong demand for field instruments from the data center ecosystem and gradual growth in aerospace and defense, with wireless remaining a weak segment [24][25] Question: Operating margin guidance for NSC - Management expects NSC operating margins to improve with Spirent's contribution, projecting around $165 million in quarterly run rate [27] Question: Impact of wireless recovery on earnings - Management acknowledged that a recovery in wireless could significantly enhance earnings, as it has been a lagging segment [32] Question: Margin profile of the Spirent business - Management confirmed that Spirent's business has a higher gross margin than the average NSC and is expected to be accretive post-integration [66][67] Question: Trends in large service providers' wireline networks - Management observed a gradual recovery in fiber spending among major service providers, with expectations for increased purchasing in the coming year [60]