UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22874 Viavi Solutions Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation ...

VIAVI ANNOUNCES THIRD QUARTER FISCAL 2024 RESULTS Third Quarter Chandler, Arizona, May 2, 2024 — VIAVI (NASDAQ: VIAV) today reported results for its third fiscal quarter ended March 30, 2024. Third quarter of fiscal 2024 net revenue was $246.0 million. GAAP net loss was $(24.6) million, or $(0.11) per share. Non- GAAP net income was $13.2 million, or $0.06 per share. Second quarter of fiscal 2024 net revenue was $254.5 million. GAAP net income was $10.7 million, or $0.05 per share. Non- GAAP net income was ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22874 Viavi Solutions Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Viavi Solutions Inc. (NASDAQ:VIAV) Q2 2024 Results Conference Call February 1, 2024 4:30 PM ET Company Participants Ilan Daskal - CFO Oleg Khaykin - President and CEO Conference Call Participants Michael Genovese - Rosenblatt Tim Savageaux - Northland Capital Alex Henderson - Needham & Company Meta Marshall - Morgan Stanley Ruben Roy - Stifel Operator Hello, everyone. My name is Rob. Welcome to Viavi Solutions Second Quarter Fiscal Year 2024 Earnings Call [Operator Instructions]. I will now turn the line ov ...

PART I - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Viavi Solutions reported Q1 FY24 net revenue of $247.9 million, a 20.1% decrease year-over-year, with net income of $9.8 million, total assets of $1.80 billion, and positive operating cash flow of $50.3 million Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Oct 1, 2022 | | :--- | :--- | :--- | | **Total net revenue** | $247.9 million | $310.2 million | | **Gross profit** | $144.4 million | $184.8 million | | **Income from operations** | $16.0 million | $49.8 million | | **Net income** | $9.8 million | $32.6 million | | **Diluted EPS** | $0.04 | $0.14 | Consolidated Balance Sheet Highlights (Unaudited) | Metric | As of Sep 30, 2023 | As of July 1, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $520.6 million | $506.5 million | | **Total current assets** | $916.1 million | $945.0 million | | **Goodwill, net** | $449.6 million | $455.2 million | | **Total assets** | $1,802.1 million | $1,850.5 million | | **Total current liabilities** | $310.9 million | $343.5 million | | **Long-term debt** | $631.1 million | $629.5 million | | **Total stockholders' equity** | $675.2 million | $690.8 million | Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Oct 1, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $50.3 million | $26.6 million | | **Net cash used in investing activities** | ($12.6) million | ($29.7) million | | **Net cash used in financing activities** | ($16.1) million | ($26.8) million | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail acquisitions like Jackson Labs, significant debt management, ongoing Fiscal 2023 restructuring affecting 5% of the workforce, and segment reporting adjustments - On October 5, 2022, the Company acquired Jackson Labs Technologies, a specialist in Position, Navigation and Timing (PNT) solutions, for approximately **$49.9 million** in cash at closing and up to **$117.0 million** in contingent consideration[37](index=37&type=chunk)[38](index=38&type=chunk) - As of September 30, 2023, the company's remaining performance obligations were valued at **$226.6 million**, with approximately **88%** expected to be recognized as revenue within the next 12 months[51](index=51&type=chunk) - The Fiscal 2023 restructuring plan is expected to affect approximately **5%** of the global workforce and is anticipated to be substantially complete by the end of Q2 fiscal 2024[111](index=111&type=chunk)[112](index=112&type=chunk) - In September 2022, the Board authorized a new stock repurchase plan for up to **$300 million**. During the three months ended September 30, 2023, the company repurchased **1.0 million shares** for **$10.0 million**[118](index=118&type=chunk) - Effective in Q1 fiscal 2024, management moved certain products from the Service Enablement (SE) segment to the Network Enablement (NE) segment to align with operational strategies, with prior period balances recast[150](index=150&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a challenging quarter with a 20.1% revenue decline to $247.9 million due to weak service provider spending and lower anti-counterfeiting demand, anticipating recovery in calendar 2024 - The end-market spending environment was challenging, particularly with North American service providers, creating headwinds for Fiber, Cable, and Wireless Lab product revenues in the NSE segment[163](index=163&type=chunk) - OSP revenues were impacted by weaker demand for anti-counterfeiting products as tight fiscal policies slowed customer inventory consumption[163](index=163&type=chunk) - For Q2 fiscal 2024, revenue is expected to be relatively flat sequentially due to slow recovery in service provider spending and lower anti-counterfeiting demand as customers adjust year-end inventories[166](index=166&type=chunk) - Anticipated recovery drivers for calendar year 2024 include: recovery in Wireless Lab products (5G/6G), increased demand for avionics/military/PNT products, recovery in Fiber and Lab/Production demand, and increased SE product demand[168](index=168&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Total net revenue decreased **20.1%** year-over-year to **$247.9 million**, driven by product revenue decline and gross margin contraction to **58.2%**, despite reduced operating expenses Segment Net Revenue (YoY Change) | Segment | Q1 FY24 Revenue | YoY Change | YoY % Change | | :--- | :--- | :--- | :--- | | **NE** | $150.0 M | ($46.5 M) | (23.7)% | | **SE** | $20.4 M | ($2.0 M) | (8.9)% | | **OSP** | $77.5 M | ($13.8 M) | (15.1)% | | **Total** | **$247.9 M** | **($62.3 M)** | **(20.1)%** | - Gross margin decreased to **58.2%** from **59.6%** in the prior year, primarily due to margin reduction in the NE and OSP segments[190](index=190&type=chunk) - R&D expense decreased by **$2.7 million (5.1%)** due to restructuring benefits and variable expense reductions[192](index=192&type=chunk) - SG&A expense decreased by **$3.0 million (3.7%)** due to restructuring, lower commissions, and favorable fair value adjustments of contingent consideration[194](index=194&type=chunk) - Interest and other income, net, increased by **$9.1 million**, primarily driven by a **$7.3 million** legal settlement and higher interest income[199](index=199&type=chunk) [Operating Segment Information](index=41&type=section&id=Operating%20Segment%20Information) NE segment revenue declined **23.7%** to **$150.0 million** with gross margin at **63.1%**, while SE revenue decreased **8.9%** to **$20.4 million** with improved gross margin, and OSP revenue dropped **15.1%** to **$77.5 million** with gross margin at **52.5%** Segment Performance (YoY Change) | Segment | Q1 FY24 Revenue | Q1 FY24 Gross Margin | Q1 FY24 Operating Margin | | :--- | :--- | :--- | :--- | | **NE** | $150.0 M (-23.7%) | 63.1% (-1.4 pts) | N/A | | **SE** | $20.4 M (-8.9%) | 67.2% (+1.1 pts) | N/A | | **NSE (Combined)** | $170.4 M (-22.2%) | N/A | 0.9% (-12.3 pts) | | **OSP** | $77.5 M (-15.1%) | 52.5% (-4.2 pts) | 37.8% (-4.5 pts) | - NE revenue decrease was driven by lower volumes in Wireless, Field Instruments and Lab and Production, partially offset by PNT revenue[206](index=206&type=chunk) - OSP revenue decrease was primarily driven by lower anti-counterfeiting and consumer and industrial revenue[210](index=210&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2023, the company held **$527.9 million** in cash, generated **$50.3 million** from operations, used **$12.6 million** in investing, and **$16.1 million** in financing, with **$152.1 million** available on its revolving credit facility - Cash provided by operating activities was **$50.3 million**, a significant increase from **$26.6 million** in the same period last year[17](index=17&type=chunk)[220](index=220&type=chunk) - Cash used in financing activities included **$10.0 million** for common stock repurchases and **$9.1 million** for withholding tax payments on vested stock awards[222](index=222&type=chunk) - As of September 30, 2023, the company had no borrowings under its **$300 million** revolving credit facility and had an available borrowing capacity of approximately **$152.1 million**[103](index=103&type=chunk)[218](index=218&type=chunk) [Quantitative and Qualitative Disclosure About Market Risks](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risks) The company states that its market risk, including foreign exchange and interest rate risks, has not materially changed from the disclosures made in its Annual Report on Form 10-K for the fiscal year ended July 1, 2023 - There have been no material changes to the Company's market risk related to foreign exchange and interest rates since the last Annual Report on Form 10-K[241](index=241&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of September 30, 2023 - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[242](index=242&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[243](index=243&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various claims and lawsuits that arise in the ordinary course of business, with management not currently believing they will have a material adverse impact - The company is subject to a variety of claims and suits from time to time in the ordinary course of business[246](index=246&type=chunk) - Management believes that resolving current claims will not have a material adverse impact, but acknowledges that these matters have inherent uncertainties[246](index=246&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company faces key risks including geopolitical instability, rapid technological change, reliance on limited customers, operational challenges, evolving regulatory compliance, and significant debt management - Geopolitical conditions, including the Russian invasion of Ukraine, conflict between Israel and Hamas, and U.S.-China tensions, could negatively impact business results through supply chain pressure, inflation, and market instability[248](index=248&type=chunk) - The company's profitability is subject to risks from uncertain telecom spending, adverse product mix changes, pricing pressure, and component shortages[252](index=252&type=chunk)[255](index=255&type=chunk) - Reliance on a limited number of customers, including a strategic alliance with SICPA for anti-counterfeiting products, exposes the company to risks of order reductions and increased pricing pressure[262](index=262&type=chunk)[263](index=263&type=chunk) - The business faces significant cybersecurity risks, including phishing, malware, and ransomware, which could lead to business disruption, data loss, and financial penalties[281](index=281&type=chunk)[282](index=282&type=chunk) - The company's significant debt load could affect its ability to obtain financing, require dedication of cash flow to debt service, and limit operational flexibility[293](index=293&type=chunk)[295](index=295&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended September 30, 2023, the company repurchased 1.0 million shares of its common stock for approximately $10.0 million under the 2022 Repurchase Plan Stock Repurchase Activity (Q1 FY24) | Period | Total Shares Purchased | Average Price Paid per Share | Total Value (approx.) | Remaining Authorization | | :--- | :--- | :--- | :--- | :--- | | Aug 27 - Sep 30, 2023 | 1.0 million | $9.86 | $10.0 million | $224.8 million | [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) On September 12, 2023, EVP Paul A. McNab entered into a prearranged Rule 10b5-1 trading plan for the potential sale of up to 8,374 shares of common stock - On September 12, 2023, EVP Paul A. McNab entered into a Rule 10b5-1 trading plan to sell up to **8,374 shares** of common stock[309](index=309&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and Inline XBRL data files

Viavi Solutions, Inc. (NASDAQ:VIAV) Q1 2024 Earnings Call Transcript November 2, 2023 4:30 PM ET Company Participants Pam Avent - Viavi Solutions Interim CFO Oleg Khaykin - President, CEO & Director Conference Call Participants Mehdi Hosseini - Susquehanna Michael Genovese - Rosenblatt Securities Timothy Savageaux - Northland Capital Markets Alexander Henderson - Needham & Company Operator Hello, everyone. My name is Alexis. Welcome to the Viavi Solutions First Quarter Full Year 2024 Earnings Call. [Operato ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22874 Viavi Solutions Inc. (Exact name of Registrant as specified in its charter) Delaware 94-2579683 Indicate by check mark if the regis ...

Financial Data and Key Metrics Changes - Fiscal Q4 revenue was $263.6 million, slightly above the guidance range of $242 million to $262 million, up 6.4% sequentially but down 21.4% year-over-year [6] - Operating profit margin was 11.7%, near the high end of the guidance range, increasing by 30 basis points from the prior quarter but decreasing 9.6% from the previous year [6] - EPS was $0.10, above the guidance range of $0.07 to $0.09, up $0.02 sequentially but down $0.14 year-over-year [6] - Full year revenues decreased from $1.3 billion in 2022 to $1.1 billion in 2023, down 14.4% [7] - Full year 2023 EPS was $0.55, a decrease of 42.1% from $0.95 in 2022 [9] Business Segment Data and Key Metrics Changes - NSE segment revenue for Q4 was $197.9 million, exceeding expectations, but down 19.6% year-over-year [12] - OSP segment revenue for Q4 was $65.7 million, slightly above guidance but down 26.3% year-over-year [14] - NSE gross profit margin was 62.1%, down 280 basis points year-over-year [13] - OSP gross profit margin was 46.6%, down 9.3% year-over-year [14] Market Data and Key Metrics Changes - NSE full year revenue was $801.2 million, down 15.6% year-over-year [7] - OSP revenue decreased from $343.3 million in 2022 to $304.9 million in 2023, down 11.2% [7] - Demand for lab and production test equipment from wireless and fiber NEMs and semiconductor companies saw gradual recovery [22] Company Strategy and Development Direction - The company is focusing on capital allocation strategies, including share repurchase programs and acquisitions [10] - Continued investment in new technologies and applications, expanding into higher growth markets [27] - The restructuring program is expected to result in net operating expense savings of $28 million annually [11] Management's Comments on Operating Environment and Future Outlook - Management noted initial signs of stabilization and gradual recovery in the service provider spend [21] - The demand environment for OSP remains challenging, but there is stronger demand for anti-counterfeiting products [24] - Management expects the first fiscal quarter 2024 revenue to be in the range of $240 million to $260 million [19] Other Important Information - The company repurchased 1 million shares for $10 million in Q4 and a total of 7.3 million shares for $83.9 million in fiscal 2023 [18] - The ending balance of cash and short-term investments was $525.6 million, down $39.3 million compared to the prior year [16] Q&A Session Summary Question: Visibility on service providers' spending - Management indicated there are signs of life and multiple discussions with service providers, with expectations of increased spending on network maintenance and optimization [29][30] Question: Catalysts for service provider upgrades - Management acknowledged that while there is plenty of existing equipment, ongoing operational needs will drive demand for upgrades [34][35] Question: Reconciliation of stabilization and Q1 guidance - Management explained that traditional seasonality is returning, with expectations of lower demand in the September and March quarters [38][40] Question: Trends in high-speed connectivity - Management noted interest in 800-gig connectivity, particularly among fiber operators, but current demand is primarily for 400-gig [44] Question: Improvement in customer conversations - Management reported broad-based improvement in conversations across various customer segments, particularly with cable and Tier 2 telecom providers [78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 1, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22874 Viavi Solutions Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation o ...

Viavi Solutions Inc. (NASDAQ:VIAV) Q3 2023 Results Conference Call May 2, 2023 4:30 PM ET Company Participants Sagar Hebbar - Head of Investor Relations Henk Derksen - Chief Financial Officer Oleg Khaykin - President & Chief Executive Officer Conference Call Participants Michael Genovese - Rosenblatt Securities Tim Savageaux - Northland Securities Meta Marshall - Morgan Stanley & Co. LLC Operator Hello. My name is John Louis. Welcome to the Viavi Solutions 3Q 2023 Earnings Conference Call. All lines have be ...