Core Insights - VIAVI Solutions reported strong financial performance for the fiscal fourth quarter and fiscal year ended June 28, 2025, with net revenue reaching $290.5 million, a 15.3% increase year-over-year [4][6] - The company experienced stabilization in its core businesses and significant growth in the data center ecosystem and aerospace & defense segments, with expectations for continued positive momentum through calendar year 2025 [4][9] Fiscal Fourth Quarter - Net revenue for Q4 was $290.5 million, up from $252.0 million in Q4 FY 2024, representing a 15.3% increase [6][8] - GAAP operating margin improved to 5.3%, an increase of 760 basis points year-over-year, while non-GAAP operating margin was 14.4%, up 350 basis points [6][8] - GAAP net income was $8.0 million, a significant increase of 136.9% year-over-year, with diluted EPS of $0.04, up 140.0% [6][8] Fiscal Year 2025 - Total net revenue for FY 2025 was $1.08 billion, an increase of 8.4% from $1.00 billion in FY 2024 [8][6] - GAAP net income for the year was $34.8 million, up 234.9% year-over-year, with diluted EPS of $0.15, a 225.0% increase [6][8] - The company reported a non-GAAP operating margin of 14.2%, up 270 basis points year-over-year [8][6] Revenue by Segment - For FY 2025, the Network and Service Enablement segment generated $776.6 million, a 10.6% increase from FY 2024, while Optical Security and Performance Products generated $307.7 million, a 3.1% increase [8][7] - In Q4, the Network and Service Enablement segment contributed $209.1 million, and Optical Security and Performance Products contributed $81.4 million, reflecting year-over-year growth of 14.8% and 16.6%, respectively [7][6] Business Outlook - For Q1 FY 2026, the company expects net revenue to be between $290 million to $298 million and non-GAAP EPS to be between $0.13 to $0.14 [9]

Industry Overview - The Zacks Communication - Components industry is facing challenges due to raw material price volatility, high capital expenditure for infrastructure upgrades, and geopolitical conflicts, which have negatively impacted profitability [1][4][5] - The industry primarily includes companies providing telecom products and services for scalable network architecture, video solutions, and broadband access equipment [3] Current Challenges - High operating costs are driven by a shortage of chips, increased raw material prices, and technological obsolescence, which have escalated operational expenses [7] - Demand erosion is occurring as customers shift to lower-priced alternatives due to increased fees for network upgrades, compounded by trade tensions affecting business credibility [5][6] Future Prospects - Despite current challenges, companies like Corning, Viavi Solutions, and Ooma are expected to benefit from rising demand for scalable infrastructure driven by IoT, fiber densification, and 5G rollout [2][16][20] - The industry is adapting to a software-driven, data-centric approach, enhancing cloud architecture and user experience, positioning itself for growth in cloud networking [6] Performance Metrics - The Zacks Communication - Components industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, with a 66.1% increase over the past year compared to 20% and 28.9% for the S&P 500 and sector, respectively [11] - The industry currently trades at a trailing 12-month price-to-book (P/B) ratio of 4.13X, lower than the S&P 500's 7.37X and the sector's 10.68X [14] Company Highlights - **Corning**: Experienced a 69.1% stock surge over the past year, with a long-term earnings growth expectation of 18.2% and a focus on innovative optical connectivity products [16][17] - **Viavi Solutions**: Gained 35% in the past year, with a 27.8% upward revision in current earnings estimates, benefiting from the transition to 5G networks [20][21] - **Ooma**: Achieved a 31.5% stock increase, focusing on small business customers and delivering an earnings surprise of 18% on average in the trailing four quarters [25][26]

Group 1 - Viavi Solutions Inc. will announce its fiscal fourth quarter and fiscal 2025 financial results on August 7, 2025, after market close [1] - The earnings call will take place at 1:30 p.m. PT / 4:30 p.m. ET, with a live webcast available on the VIAVI website [2] - A replay of the earnings call will be accessible from August 7, 2025, 4:30 p.m. PT to August 14, 2025, 8:59 p.m. PT [3] Group 2 - VIAVI Solutions is a global provider of network test, monitoring, and assurance solutions across various sectors including telecommunications, cloud, and military [4] - The company is also a leader in light management technologies for applications in 3D sensing, anti-counterfeiting, and consumer electronics [4]

Core Insights - VIAVI Solutions Inc. has introduced colocation capabilities to its VALOR Automated Lab-as-a-Service for Open RAN, responding to the growing demand for comprehensive testing from Open RAN customers [1][4] - The colocation model offers customers more flexibility and capacity, allowing for longer access periods and comprehensive testing throughout the product lifecycle [2][3] Company Developments - The VALOR facility is based in Chandler, Arizona, and is funded by the U.S. National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund (PWSCIF) [1][4] - The colocation framework enhances the NTIA PWSCIF model, aiming to accelerate the development of open, secure wireless ecosystems by leveraging federal spending to attract private investment [4] Service Offerings - VALOR provides a highly automated Lab-as-a-Service suite for Open RAN interoperability, performance, and security, including a state-of-the-art RF chamber for Massive MIMO and beamforming over-the-air validation [4] - The lab utilizes VIAVI's NITRO Wireless Open RAN Test Suite and VAMOS unified framework, enabling vendors to test products without significant upfront investment, thus reducing risks and accelerating time to market [5]

Core Insights - VIAVI Solutions Inc. has been selected by Netomnia to provide its ONMSi Remote Fiber Test System to enhance network installation and maintenance as Netomnia expands in the UK [1][4][5] Company Overview - VIAVI Solutions is a global provider of network test, monitoring, and assurance solutions across various sectors including telecommunications and aerospace [6] - Netomnia is the UK's second-largest alternative network operator, with a serviceable reach of 2.5 million premises and a goal to expand to five million by the end of 2027, supported by over £1.5 billion in funding [3][7] Business Growth and Strategy - Netomnia aims to connect 3 million premises by the end of 2025 and five million by 2027, with an annual build rate of one million premises [3] - The ONMSi system will facilitate end-to-end certification testing and ongoing network health monitoring, which are critical for achieving Netomnia's ambitious rollout plans [4][5] Partnership Significance - The collaboration between VIAVI and Netomnia is positioned as a strategic partnership that will leverage VIAVI's technology to support Netomnia's growth and network quality objectives [5]

Core Insights - Viavi Solutions Inc. is being monitored for its potential to leverage its optical testing capabilities and military positioning for sustainable growth [1] Company Analysis - The company has shown signs of progress in translating its strengths into durable growth during the past quarter [1] - Viavi Solutions operates in sectors that include technology, infrastructure, and internet services, focusing on strong fundamentals and growth potential [1] Analyst Background - The analysis is conducted by a financial analyst with a background in petroleum and gas engineering, emphasizing a long-term investment perspective [1]

Core Insights - VIAVI Solutions Inc. has entered into a Memorandum of Understanding with Hanyang University to collaborate on AI-RAN, 5G, and 6G research at the university's Beyond-G Global Innovation Center [1][2] - The partnership aims to advance next-generation communication technologies and foster talent in this field [5][6] Collaboration Details - VIAVI will provide wireless lab test solutions and expertise, while Hanyang University will become a VIAVI 6G Forward academic partner [1][4] - The Beyond-G Global Innovation Center was selected for the Global Innovation Research Center Support Project, receiving over KRW 5 billion annually for 10 years to support top research initiatives [3] Technological Contributions - VIAVI will contribute its NITRO® Wireless test and optimization suite, which includes a 6G testbed used by leading network equipment manufacturers and research institutions [4] - The technology will enable validation of AI-RAN, 5G, 6G, and quantum technologies, facilitating the planning and implementation of network changes [4][6] Educational Impact - The partnership will provide students with hands-on experience in cutting-edge test environments, laying the foundation for impactful research in 6G and AI-RAN [5]

Core Insights - The 2025/2026 State of the Network study indicates that 79% of enterprise organizations are expected to increase their reliance on packet capture to enhance mean times to detection (MTTD) and resolution (MTTR) this year [1][8]. Group 1: Study Findings - The study, conducted with insights from 750 global professionals, reveals a shift towards deeper network observability and increased reliance on packet capture due to hybrid infrastructure and cloud complexity [2][9]. - Organizations with strong packet capture capabilities reported double the improvement in MTTD compared to those without, and were four times more likely to resolve issues in under an hour [3][9]. - The research highlights a 125% increase in collaborative monitoring models driven by the shift towards multi-cloud environments [9]. Group 2: Industry Trends - 42% of organizations implementing NetSecOps models reported enhanced security benefits, indicating a growing trend towards operational alignment between network and security operations [9]. - Despite challenges, 92% of organizations reported having sufficient budgets for their needs, although 78% acknowledged the necessity for more support to address rising network security threats [9]. - Investment in IT solutions is set to increase across all examined categories, reflecting a positive outlook for organizations aiming to improve uptime and operational efficiency [6].

Core Insights - Viavi Solutions Inc. has launched a Visual-Aided Inertial Navigation System (VINS) to enhance the navigation capabilities of aircraft and UAVs in the absence of GPS/GNSS signals, addressing the increasing incidents of GPS jamming and spoofing [1][10] Group 1: VINS Technology and Features - VINS utilizes Maxar Raptor 3D vision-based positioning software, allowing UAVs to perform long-range missions under challenging GNSS conditions, achieving horizontal positioning accuracy within 35 meters and vertical accuracy within 5 meters in GNSS-denied environments [3] - When GNSS is active, VINS significantly improves accuracy, offering horizontal positioning within 1 meter and heading accuracy of 0.1 degrees [3] - The system is designed for low-altitude operations and integrates various components, including processing and sensor modules, GNSS or CRPA antennas, and optional features like data transmission radios and M-code GNSS receivers [4][10] Group 2: Market Context and Demand - The U.S. Department of Transportation reports up to 700 GPS jamming incidents globally each day, with conflict zones like Lithuanian airspace experiencing over 800 cases in the last quarter of 2024, impacting communication networks and emergency services [2] - Viavi's recent third-quarter fiscal 2025 results exceeded expectations, driven by strong demand from service providers and network equipment manufacturers, particularly in the wireless and fiber markets [7] Group 3: Future Outlook - For the fourth quarter of fiscal 2025, Viavi anticipates revenues between $278 million and $290 million, with non-GAAP earnings per share projected between 10 cents and 13 cents, although macroeconomic challenges may pose risks [8] - The VINS will be showcased at the 2025 Joint Navigation Conference, highlighting its relevance in military operations and degraded environments [5]

Core Insights - Viavi Solutions, Inc. is collaborating with 3-GIS to enhance fiber fault detection capabilities for enterprises, addressing the operational challenges of maintaining fiber infrastructure as it becomes critical for data communications [1][4] - The integration of Viavi's ONMSi Remote Fiber Test System with 3-GIS' geospatial capabilities aims to automate network issue detection and resolution, improving service quality and minimizing downtime [2][3] Industry Context - The demand for high-quality fiber connections is increasing as service providers face pressure to deliver consistent services for AI workloads and high-performance computing, making intelligent automated systems essential in the telecommunications industry [4] - Viavi's strategy includes expanding its product portfolio across various markets, which is expected to yield long-term benefits, particularly with the acquisition of Spirent Communications' high-speed ethernet and network security business [5] Company Performance - Viavi's stock has increased by 21.8% over the past year, although this is below the industry's growth of 35.4% [6]