Viavi Solutions(VIAV) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenue for Q2 FY 2025 was $270.8 million, an increase of $16.3 million or 6.4% year-over-year[4] - GAAP net income was $9.1 million, a decrease of $1.6 million or 15.0% year-over-year, whereas non-GAAP net income rose to $29.4 million, an increase of $5.7 million or 24.1% year-over-year[4] - Net revenue for the three months ended December 28, 2024, was $270.8 million, up from $254.5 million for the same period last year, representing a growth of 6.3%[22] - For the six months ended December 28, 2024, net revenue was $509.0 million, compared to $502.4 million in the same period last year, showing a modest increase of 1.3%[22] Profitability Metrics - GAAP operating margin was 8.2%, down 60 basis points year-over-year, while non-GAAP operating margin improved to 14.9%, up 170 basis points year-over-year[4] - The company reported a GAAP diluted EPS of $0.04, down $0.01 or 20.0% year-over-year, while non-GAAP diluted EPS was $0.13, up $0.02 or 18.2% year-over-year[4] - Gross profit increased to $160.8 million, with a gross margin of 59.4%, compared to $148.0 million and a gross margin of 58.2% in the prior year[22] - Operating income for the three months ended December 28, 2024, was $22.2 million, reflecting an operating margin of 8.2%, compared to $22.4 million and an operating margin of 8.8% in the same period last year[22] - Non-GAAP operating income for the six months ended December 28, 2024, was $33.7 million, reflecting a non-GAAP operating margin of 6.6%[22] - Non-GAAP measures for net income for the three months ended December 28, 2024, were $29.4 million, with an EPS of $0.13, compared to $23.7 million and $0.11 for the same period in 2023[32] Cash Flow and Assets - Cash flows from operations for the quarter ended December 28, 2024, were $44.7 million[11] - As of December 28, 2024, the company held $512.8 million in total cash, short-term investments, and short-term restricted cash[11] - Total assets decreased to $1,725.1 million from $1,736.3 million, a decline of 0.9%[19] - Total current liabilities remained stable at $248.0 million, slightly up from $247.1 million[19] - Long-term debt increased to $639.3 million from $636.0 million, indicating a slight rise in leverage[19] Segment Performance - The Network Enablement segment generated $179.0 million in revenue, a 26.4% increase quarter-over-quarter[4] - Americas, Asia-Pacific, and EMEA customers represented 42.9%, 34.6%, and 22.5% of total net revenue, respectively[11] Acquisitions and Charges - The acquisition of Inertial Labs, Inc. was completed on January 28, 2025, enhancing the company's capabilities[5] - The company incurred acquisition and integration-related charges of $2.8 million for the three months ended December 28, 2024[32] Other Financial Metrics - Adjusted EBITDA for the three months ended December 28, 2024, was $50.1 million, compared to $43.0 million for the same period in 2023[37] - Stock-based compensation for the six months ended December 28, 2024, amounted to $26.4 million, compared to $23.7 million for the same period in 2023[37] - The change in fair value of contingent liability for the six months ended December 28, 2024, was $(7.4) million, compared to $(8.4) million for the same period in 2023[37] - Total related to cost of revenue and operating expenses for the three months ended December 28, 2024, was $18.2 million, representing 6.7% of revenue, compared to $11.3 million and 4.4% for the same period in 2023[32]