VIAVI Announces Second Quarter Fiscal 2025 Results

Core Insights - VIAVI's financial performance for the second quarter ended December 28, 2024, exceeded expectations, driven by recovering demand in the Network Service Enablement (NSE) sector and diversification into new markets such as data centers and aerospace [3][4][5] Financial Overview - Net revenue reached $270.8 million, an increase of $16.3 million or 6.4% year-over-year [5][6] - 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 [5][6] - GAAP net income was $9.1 million, a decrease of 15.0% year-over-year, whereas non-GAAP net income increased by 24.1% to $29.4 million [5][6] - GAAP diluted earnings per share (EPS) was $0.04, down 20.0% year-over-year, while non-GAAP diluted EPS rose to $0.13, an increase of 18.2% year-over-year [5][6] Segment Performance - Revenue from the Network Enablement segment was $179.0 million, up 26.4% quarter-over-quarter and 15.1% year-over-year [4][5] - Service Enablement revenue was $20.9 million, reflecting a 17.4% increase quarter-over-quarter but a 13.3% decline year-over-year [4][5] - Optical Security and Performance Products revenue was $70.9 million, down 10.0% quarter-over-quarter and 5.3% year-over-year [4][5] Business Outlook - For the third quarter of fiscal 2025, the company expects net revenue to be between $276 million and $288 million, with non-GAAP EPS projected between $0.10 and $0.13 [8][9] Acquisition Update - VIAVI completed the acquisition of Inertial Labs, Inc. on January 28, 2025, which is expected to enhance its capabilities in the aerospace and defense sectors [7]