Core Insights - VIAVI Solutions Inc. and 3-GIS have formed a partnership to enhance fiber fault location capabilities for businesses, leveraging existing Geographic Information System (GIS) investments [1][6] - The integrated solution has been successfully deployed at Windstream Wholesale, automating manual processes and improving network maintenance, reducing downtime, and increasing revenue [1][3][4] Industry Trends - There is a rising demand for fiber deployment across various sectors, including transport networks, data centers, and home broadband, driven by the need to support advanced technologies like AI/ML and high-performance computing [2] - Efficient fault identification and resolution are critical for network operators to maintain financial performance, as even minor degradations can significantly impact user experience [2] Company Solutions - The partnership integrates VIAVI's ONMSi Remote Fiber Test System (RFTS) with 3-GIS's geospatial capabilities, enabling faster identification and resolution of network issues [3][5] - The solution allows for rapid deployment on existing fiber, providing instant detection of impairments and reducing repair times by ensuring the right technician and equipment are dispatched [4][5] Customer Benefits - The collaboration enables service providers to maximize their GIS investments while enhancing fault location speed and accuracy, ultimately improving network operations and customer satisfaction [6] - Windstream Wholesale has reported significant operational cost reductions and service downtime improvements due to the automation of fiber fault detection and response [6]

Core Insights - VIAVI Solutions Inc. has launched its second-generation RSR Transcoder, designed to enhance operational capabilities in GPS/GNSS-denied environments [1][2] - The RSR Transcoder provides assured Position, Navigation, and Timing (PNT) outputs, facilitating upgrades to legacy systems [2][4] - The product addresses the increasing threat of GPS and GNSS jamming and spoofing, which are becoming common in electronic warfare [3][6] Product Features - The RSR Transcoder includes a GPS full constellation simulator and utilizes a patented algorithm for rapid conversion of assured inputs to Universal GPS signals [4] - It is ruggedized with IP68 enclosures suitable for various platforms and operates in a covert mode [5] - The device outputs at 100 Hz and offers multiple holdover oscillator options [5] Industry Context - The reliance on PNT technologies in modern military systems is growing, with adversaries increasingly capable of disrupting these systems [6] - The RSR Transcoder is positioned as a cost-effective solution for upgrading legacy systems to withstand such disruptions [6] Event Participation - The RSR Transcoder will be showcased at the 2025 Joint Navigation Conference, highlighting its capabilities in D3SOE navigation [6] - VIAVI will also present on various topics related to navigation and anti-jamming technologies during the conference [8]

Core Insights - Metanoia Communications Inc.'s JURA Open Radio Unit (O-RU) has successfully completed end-to-end over-the-air (OTA) validation at VIAVI's VALOR lab, marking the first product validated in the lab's new RF-shielded anechoic chamber [1][2][3] Group 1: Validation and Testing - The VALOR lab, funded by the National Telecommunications and Information Administration (NTIA) Public Wireless Supply Chain Innovation Fund, officially opened on October 7, 2024, and has since added an RF chamber and two additional customer labs [2] - The JURA O-RU underwent performance validation to ensure seamless integration into Open RAN networks, with tests conducted over the air in the RF chamber, evaluating key performance metrics under realistic radio conditions [3][4] - The validation process included O-RAN end-to-end functional and performance tests based on defined test cases, ensuring compliance with O-RAN architectural and performance requirements [3][4] Group 2: Technological Advancements - Metanoia's JURA O-RU is a 4T4R 24dbm 5G FR1 radio unit that operates in the sub-6 GHz bands using TDD duplexing, leveraging an advanced Software Defined Radio (SDR) platform for high-performance Open RAN solutions [4] - The VALOR RF chamber is the industry's first Test-as-a-Service offering for Massive MIMO and beamforming OTA validation, creating a controlled environment free from outside interference [5] - VALOR provides independent interoperability, performance, and security testing, utilizing VIAVI's NITRO Wireless Open RAN Test Suite and offering over 500 test cases compliant with O-RAN and 3GPP specifications [6] Group 3: Industry Impact - The successful validation of Metanoia's O-RU is seen as a significant milestone for both VIAVI and the VALOR lab, contributing to increased telecom innovation through Open RAN-based systems [4] - Metanoia Communications is recognized as a leading System-on-Chip (SoC) innovator, transforming the 5G NR ecosystem with its advanced 5G SoC featuring a future-proof SDR architecture [9]

Core Insights - VIAVI Solutions Inc. is participating in the MORANE-2 project to test Future Railway Mobile Communication System (FRMCS) specifications, which is crucial for modernizing railway communication in Europe [1][3] - The current GSM-R system is set to phase out by 2030, with FRMCS emerging as its successor, supported by VIAVI's EVOIA Drive Test and EVOIA Assure solutions [2][3] - The MORANE-2 project will run for 34 months from 2024 to 2027 and aims to validate product development standards, enhancing interoperability in railway systems across Europe [3] Company Contributions - VIAVI is recognized for its expertise in mission-critical network testing and measurement, contributing to the MORANE-2 project by designing technical metrics and defining KPIs [3] - The company has showcased its test and monitoring solutions at significant industry events, including the UIC FRMCS Global Conference and InnoTrans [4] - VIAVI is actively involved in industry initiatives, hosting events like the Railway User Group and participating in the Public Safety Innovation Summit [5] Industry Context - The MORANE-2 project is a collaborative European initiative funded by Europe's Rail (EU-RAIL) and aims to enhance efficiency, sustainability, and digital connectivity in railway telecommunications [3] - The project will facilitate the inclusion of FRMCS specifications in the Technical Specifications for Interoperability (TSI), which are essential for ensuring the interoperability of railway systems [3]

PART I - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements for the three and nine months ended March 29, 2025 Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended March 29, 2025 | Three Months Ended March 30, 2024 | Nine Months Ended March 29, 2025 | Nine Months Ended March 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total net revenue** | $284.8 | $246.0 | $793.8 | $748.4 | | **Gross profit** | $160.7 | $137.9 | $457.6 | $430.3 | | **Income (loss) from operations** | $8.5 | $(11.9) | $42.2 | $26.5 | | **Net income (loss)** | $19.5 | $(24.6) | $26.8 | $(4.1) | | **Diluted EPS** | $0.09 | $(0.11) | $0.12 | $(0.02) | Consolidated Balance Sheets Highlights (in millions) | Metric | March 29, 2025 | June 29, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $374.2 | $471.3 | | **Total current assets** | $835.4 | $876.5 | | **Goodwill, net** | $585.4 | $452.9 | | **Total assets** | $1,933.2 | $1,736.3 | | **Total current liabilities** | $544.7 | $247.1 | | **Long-term debt** | $396.1 | $636.0 | | **Total liabilities** | $1,204.4 | $1,054.7 | | **Total stockholders' equity** | $728.8 | $681.6 | Consolidated Statements of Cash Flows Highlights (in millions) | Metric | Nine Months Ended March 29, 2025 | Nine Months Ended March 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $66.0 | $90.2 | | **Net cash used in investing activities** | $(140.7) | $(27.2) | | **Net cash used in financing activities** | $(23.5) | $(115.3) | | **Net increase in cash, cash equivalents and restricted cash** | $(99.1) | $(52.5) | [Note 5. Acquisitions](index=14&type=section&id=Note%205.%20Acquisitions) Details the recent acquisition of Inertial Labs and a planned acquisition of Spirent's business lines - On January 28, 2025, the Company acquired Inertial Labs, LLC for approximately **$134.4 million in cash** at closing, with up to an additional **$175.0 million in contingent consideration** based on revenue targets over four years[52](index=52&type=chunk)[53](index=53&type=chunk) - The Inertial Labs acquisition resulted in the recognition of **$129.7 million in goodwill** and **$117.6 million in identifiable intangible assets**[55](index=55&type=chunk)[57](index=57&type=chunk) - On March 2, 2025, the Company entered into an agreement to acquire Spirent Communications plc's high-speed ethernet and network security businesses for **$410 million in base consideration**, expected to close by July 31, 2025[64](index=64&type=chunk) [Note 11. Debt](index=24&type=section&id=Note%2011.%20Debt) Outlines the company's debt structure, including senior notes and a revolving credit facility Debt Summary (in millions) | Debt Instrument | Principal Amount (March 29, 2025) | Classification | | :--- | :--- | :--- | | 1.625% Senior Convertible Notes (due 2026) | $250.0 | Short-term debt | | 3.75% Senior Notes (due 2029) | $400.0 | Long-term debt | - The company has a senior secured asset-based revolving credit facility of up to **$300 million**; as of March 29, 2025, there were no borrowings under this facility, and the available borrowing capacity was approximately **$165.6 million**[123](index=123&type=chunk)[126](index=126&type=chunk) [Note 13. Restructuring](index=28&type=section&id=Note%2013.%20Restructuring) Details ongoing restructuring plans to reduce costs, including workforce reductions and expected savings - The Fiscal 2024 Plan is expected to affect **7% of the global workforce** and result in annualized gross cost savings of approximately **$25.0 million**[134](index=134&type=chunk)[223](index=223&type=chunk) - The Fiscal 2023 Plan was completed in the first quarter of fiscal 2025, having impacted approximately **5% of the workforce**[135](index=135&type=chunk)[224](index=224&type=chunk) - As of March 29, 2025, the total restructuring accrual was **$4.5 million**[225](index=225&type=chunk) [Note 19. Operating Segments and Geographic Information](index=32&type=section&id=Note%2019.%20Operating%20Segments%20and%20Geographic%20Information) Provides a breakdown of company performance by operating segment and geographic region Net Revenue by Segment (in millions) | Segment | Three Months Ended March 29, 2025 | Nine Months Ended March 29, 2025 | | :--- | :--- | :--- | | Network Enablement (NE) | $188.0 | $508.6 | | Service Enablement (SE) | $20.2 | $58.9 | | Optical Security and Performance Products (OSP) | $76.6 | $226.3 | | **Total** | **$284.8** | **$793.8** | Net Revenue by Geographic Region (in millions) | Region | Three Months Ended March 29, 2025 | Nine Months Ended March 29, 2025 | | :--- | :--- | :--- | | Americas | $108.1 | $312.9 | | Asia-Pacific | $100.7 | $280.2 | | EMEA | $76.0 | $200.7 | | **Total** | **$284.8** | **$793.8** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Q3 FY2025 financial results, highlighting revenue growth driven by the NSE business recovery Q3 FY2025 Financial Highlights (YoY) | Metric | Q3 FY2025 | Change (YoY) | | :--- | :--- | :--- | | Net revenue | $284.8 million | +15.8% | | GAAP operating margin | 3.0% | +780 bps | | Non-GAAP operating margin | 16.7% | +740 bps | | GAAP diluted EPS | $0.09 | +$0.20 | | Non-GAAP diluted EPS | $0.15 | +$0.09 | - Revenue increase for Q3 was driven by higher spending from **Network Equipment Manufacturers (NEMs)**, and aerospace and defense customers[203](index=203&type=chunk) - The Network Enablement (NE) segment revenue **grew 23.9% YoY** in Q3, driven by higher volume in Lab and Production, Aerospace and Defense, and Fiber and Access Solutions[238](index=238&type=chunk) - The Optical Security and Performance Products (OSP) segment revenue **increased 0.5% YoY** in Q3, driven by Anti-Counterfeiting, offset by a decrease in 3D sensing revenue[244](index=244&type=chunk) - Cash provided by operating activities was **$66.0 million** for the nine months ended March 29, 2025, a decrease from $90.2 million in the prior year period[255](index=255&type=chunk) [Quantitative and Qualitative Disclosure About Market Risks](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risks) States no material changes to market risks since the last Annual Report on Form 10-K - The Company's market risk has **not changed materially** from the foreign exchange and interest rate risks disclosed in its most recent Annual Report on Form 10-K[270](index=270&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures with no material changes in internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective as of March 29, 2025**[271](index=271&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, the company's internal controls[272](index=272&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) Discloses that current legal proceedings are not expected to have a material adverse impact - The company is subject to a variety of claims and suits that arise from time to time in the ordinary course of its business, but management does not currently believe they will have a **material adverse impact**[274](index=274&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) Outlines significant risks including geopolitical tensions, technology changes, and cybersecurity threats - **Geopolitical conditions**, including the Russian invasion of Ukraine, conflict in the Middle East, and US-China tensions, could negatively impact business results through sanctions, tariffs, and market instability[276](index=276&type=chunk) - The company faces risks from **rapid technological change**, pricing pressure from competitors (especially from Asia), and a **highly concentrated customer base**, which can impact profitability[278](index=278&type=chunk)[280](index=280&type=chunk) - The company relies on a **strategic alliance with SICPA** for its banknote anti-counterfeiting products; a material reduction in sales or loss of this relationship could harm the business[290](index=290&type=chunk) - The business is exposed to **cybersecurity risks**, including sophisticated attacks that could lead to operational impairment, intellectual property theft, and reputational harm[310](index=310&type=chunk) - **Evolving ESG regulations** and expectations could lead to increased costs, and failure to meet goals could result in reputational damage and adverse financial performance[320](index=320&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no share repurchases in the quarter and the remaining authorization under the repurchase plan - **No shares were repurchased** during the three months ended March 29, 2025[339](index=339&type=chunk) - As of March 29, 2025, the company had a remaining authorization of **$198.4 million** for future share repurchases under its 2022 Repurchase Plan[142](index=142&type=chunk)[339](index=339&type=chunk) [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports no defaults upon senior securities during the period - None[340](index=340&type=chunk) [Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States that mine safety disclosures are not applicable to the company's operations - None[340](index=340&type=chunk) [Other Information](index=70&type=section&id=Item%205.%20Other%20Information) Discloses the establishment of a Rule 10b5-1 trading plan by the Chairman of the Board - On February 4, 2025, Richard E Belluzzo, Chairman of the Board, entered into a **Rule 10b5-1 trading plan** for the sale of **50,312 shares** of common stock, effective until October 31, 2025[341](index=341&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and agreements - Exhibits filed include CEO/CFO certifications (31.1, 31.2, 32.1, 32.2), an Asset Purchase Agreement dated March 2, 2025 (10.1), and various Inline XBRL files[343](index=343&type=chunk)

Core Viewpoint - Viavi Solutions Inc. reported strong third-quarter fiscal 2025 results, with revenues and net income exceeding expectations, driven by growth in the Network Enablement and Service Enablement segments, although macroeconomic challenges pose concerns for future spending [1][2]. Financial Performance - Net income on a GAAP basis was $19.5 million or 9 cents per share, a significant improvement from a net loss of $24.6 million or 11 cents per share in the prior year [2]. - Non-GAAP net income rose to $33.9 million or 15 cents per share, up from $13.2 million or 6 cents per share year-over-year, surpassing the Zacks Consensus Estimate by 3 cents [2]. Revenue Breakdown - Quarterly revenues reached $284.8 million, reflecting a 15.8% year-over-year increase, exceeding the Zacks Consensus Estimate of $282 million [3]. - The Network Enablement segment generated $188 million in net sales, a 23.9% increase from $151.7 million in the previous year, driven by strong demand from service providers and network equipment manufacturers [3]. - Service Enablement segment revenues were $20.2 million, up 11.6% year-over-year, supported by healthy demand trends [4]. - Optical Security and Performance Products revenues slightly increased to $76.6 million from $76.2 million, primarily due to strength in anti-counterfeiting products [4]. - Revenue contributions from different regions included $108.1 million from America, $100.7 million from Asia-Pacific, and $76 million from EMEA, showing respective increases from the previous year [5]. Margins and Operating Performance - Non-GAAP gross margin improved to 60%, up 210 basis points year-over-year, with the NE segment's gross margin at 63.4%, an increase of 190 basis points [6]. - Total non-GAAP operating margin increased by 740 basis points year-over-year to 16.7%, with the NSE business operating margin rising to 10.4% [7]. Cash Flow and Liquidity - The company generated $7.8 million in cash from operating activities during the quarter, a decrease from $19.5 million in the prior year [8]. - As of March 29, 2025, Viavi had $374.2 million in cash and cash equivalents and $396.1 million in long-term debt [8]. Outlook - For the fourth quarter of fiscal 2025, management anticipates revenues between $278 million and $290 million, with non-GAAP earnings per share expected to be between 10 cents and 13 cents [10]. - Projected revenues for the NSE business are between $203 million and $213 million, while the OSP segment is expected to generate revenues between $75 million and $77 million [10].

Company Performance - Viav Solutions reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.06 per share a year ago, representing an earnings surprise of 25% [1] - The company posted revenues of $284.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.96%, and up from $246 million in the same quarter last year [2] - Over the last four quarters, Viav Solutions has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Market Comparison - Viav Solutions shares have increased approximately 4.8% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $295.3 million, and for the current fiscal year, it is $0.44 on revenues of $1.09 billion [7] - The estimate revisions trend for Viav Solutions is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Communication - Components industry, to which Viav Solutions belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Ooma, is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year change of +28.6% [9]

Financial Data and Key Metrics Changes - Net revenue for Q3 fiscal year 2025 was $284.8 million, exceeding the midpoint of guidance range of $276 million to $288 million, representing a sequential increase of 5.2% and a year-over-year increase of 15.8% [6] - Operating margin for the quarter was 16.7%, above the high end of guidance range of 13% to 15%, and increased by 1.8% sequentially and 7.4% year-over-year [6][7] - EPS was $0.15, above the high end of guidance range of $0.10 to $0.13, with a sequential increase of $0.02 and a year-over-year increase of $0.09 [7] Business Segment Data and Key Metrics Changes - NSE revenue for Q3 was $208.2 million, slightly above the midpoint of guidance range of $200 million to $212 million, with a year-over-year increase of 22.6% [7][8] - NE revenue for the quarter was $188 million, a year-over-year increase of 23.9%, driven by strong demand for fiber-led and production products [8] - SE revenue was $20.2 million, an increase of 11.6% year-over-year, in line with expectations [9] - NSE gross margin was 63.1%, up 1.7% year-over-year, while NE gross margin was 63.4%, an increase of 190 basis points [9] - OSP revenue for Q3 was $76.6 million, just above the high end of guidance range, with a year-over-year increase of 0.5% [10] Market Data and Key Metrics Changes - The aerospace and defense business segment is expected to be a strong multiyear growth driver, particularly due to the acquisition of Inertia Labs [16] - Demand for fiber monitoring by hyperscale data center operators is expected to continue through calendar year 2025 [16] - The wireless business segment is seeing stronger demand for 5G field instruments, indicating a potential recovery in the overall wireless segment [17] Company Strategy and Development Direction - The company is prioritizing capital allocation towards M&A, specifically the acquisition of Spirent's high-speed Ethernet and network security business lines [12] - The company plans to finance the acquisition with additional debt while maintaining financial discipline, targeting less than four times gross leverage [12] - The company is assessing the potential impact of global tariffs on overall demand and timing of orders, with a cautious outlook for the fourth quarter [13][18] Management's Comments on Operating Environment and Future Outlook - Management noted that the March quarter was unseasonably strong, continuing the recovery and growth momentum from fiscal Q2 [15] - There are concerns about potential delays in customer orders due to recently imposed tariffs, but no cancellations have been reported [22][24] - Management expects some orders may be delayed or reduced in volume as customers adjust to tariff impacts [26][70] Other Important Information - Total cash and short-term investments at the end of Q3 were $400.2 million, down from $512.8 million in the previous quarter, primarily due to the Inertia Labs acquisition [11] - The company did not purchase any shares during the quarter, focusing on M&A instead [12] Q&A Session Summary Question: Concerns about tariff impacts on revenue - Management indicated that while there are concerns about delays in approved POs, no orders have been canceled, and customers are accepting tariff increases [22][24] Question: Exposure to tariffs from manufacturing locations - Approximately 15% of revenue is subject to tariffs, with China being the most affected region, but management expects to mitigate this impact within three to six months [27][28] Question: Strength in NSE business and service provider spending - Management believes the demand from service providers is healthy and not indicative of a pull-forward, with expectations of gradual recovery in spending [60][62] Question: Update on the aerospace and defense business - The aerospace and defense segment is experiencing strong growth, particularly in positioning, navigation, and timing due to demand for drones and anti-jamming technologies [84] Question: Size of the fiber lab and production business - Management estimates that fiber lab and production may account for around 20% of NSE revenue, with expectations of strong growth driven by data center demand [88][90]

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $284.8 million, exceeding the guidance range of $276 million to $288 million, representing a sequential increase of 5.2% and a year-over-year increase of 15.8% [6][7] - Operating margin for the quarter was 16.7%, above the guidance range of 13% to 15%, and increased by 1.8% sequentially and 7.4% year-over-year [6][7] - EPS was $0.15, above the guidance range of $0.10 to $0.13, and increased by $0.02 sequentially and $0.09 year-over-year [7] Business Segment Data and Key Metrics Changes - NSE revenue was $208.2 million, slightly above the guidance range of $200 million to $212 million, with a year-over-year increase of 22.6% [7][8] - NE revenue was $188 million, up 23.9% year-over-year, driven by strong demand for fiber lab and production products [7][8] - SE revenue was $20.2 million, an increase of 11.6% year-over-year, aligning with expectations [8] - NSE gross margin was 63.1%, up 1.7% year-over-year, while NE gross margin was 63.4%, an increase of 190 basis points [8] - OSP revenue was $76.6 million, slightly above the guidance range, with a year-over-year increase of 0.5% [9] Market Data and Key Metrics Changes - The demand for fiber monitoring systems is being driven by service providers and hyperscale data center operators, indicating a strong recovery in the market [16] - The aerospace and defense segment is expected to be a multiyear growth driver, particularly due to the acquisition of Inertia Labs [16][45] - Wireless business demand is recovering, particularly for 5G field instruments, although infrastructure test products continue to show weakness [16] Company Strategy and Development Direction - The company is focusing on M&A, with plans to acquire Spirent's high-speed Ethernet and network security business lines, financing this with additional debt while maintaining financial discipline [12] - The company expects to realign its supply chain to mitigate tariff impacts within six months [29] - The strategy includes passing on tariff costs to customers, which is being accepted without significant pushback [34][37] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for Q4 due to potential delays in customer orders related to tariffs, although no orders have been canceled [22][25] - The company anticipates that the overall demand will remain flat relative to Q3, with specific segments like NSE taking a more prudent outlook [13][18] - Management noted that the demand for wireless field instruments is a leading indicator for the resumption of 5G network build-out [16] Other Important Information - Total cash and short-term investments at the end of Q3 were $400.2 million, down from $512.8 million in the previous quarter, primarily due to the Inertia Labs acquisition [11] - CapEx for the quarter was $6.8 million, compared to $3.2 million in the same period last year [12] Q&A Session Summary Question: Concerns about tariff impacts on revenue - Management noted that while there are concerns about delays in approved POs, no orders have been canceled, and customers are accepting tariff increases [22][23][25] Question: Revenue sourced from regions with high tariffs - Approximately 15% of revenue is subject to tariffs, with 3% directly impacted by current tariffs, but the company is working to mitigate this through supply chain adjustments [28][29] Question: Technology domains for future growth - The data center ecosystem is expected to drive strong growth, particularly in fiber lab and production, along with aerospace and defense segments [44][46] Question: OSP business outlook - The OSP business is expected to remain stable, with strength in anti-counterfeiting products offsetting seasonal weaknesses [53][54] Question: Service provider spending trends - Management believes there is a healthy demand from service providers, with a gradual return to normal spending patterns [60][62]

Note: Amounts presented in all slides are on a continuing operations basis unless otherwise noted. Fiscal Q3 2025 Earnings Call Supplementary Slides May 1, 2025 Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking statements include, among other things, financial g ...