VIAVI Announces Third Quarter Fiscal 2025 Results

Core Viewpoint - VIAVI Solutions reported strong financial results for the third quarter of fiscal 2025, driven by growth in both Network Service Enablement (NSE) and Optical Security and Performance (OSP) segments, with optimism for continued recovery in end markets [3][5]. Financial Overview - Net revenue reached $284.8 million, an increase of $38.8 million or 15.8% year-over-year [5][6]. - GAAP operating margin was 3.0%, up 780 basis points year-over-year, while non-GAAP operating margin was 16.7%, up 740 basis points year-over-year [5][6]. - GAAP net income was $19.5 million, a significant increase of $44.1 million or 179.3% year-over-year [5][6]. - Non-GAAP net income was $33.9 million, up $20.7 million or 156.8% year-over-year [5][6]. - GAAP diluted earnings per share (EPS) was $0.09, up $0.20 or 181.8% year-over-year, while non-GAAP diluted EPS was $0.15, up $0.09 or 150.0% year-over-year [5][6]. Segment Performance - Network Enablement segment generated $188.0 million in revenue, up 23.9% year-over-year [4][5]. - Service Enablement segment revenue was $20.2 million, an increase of 11.6% year-over-year [4][5]. - Optical Security and Performance Products segment revenue was $76.6 million, showing a slight increase of 0.5% year-over-year [4][5]. Cash and Debt Position - As of March 29, 2025, the company held $400.2 million in total cash, short-term investments, and short-term restricted cash [6]. - The company had $250 million in 1.625% Senior Convertible Notes and $400 million in 3.75% Senior Notes, with a total net carrying value of $640.9 million [6]. Business Outlook - For the fourth quarter of fiscal 2025, the company expects net revenue to be between $278 million and $290 million, with non-GAAP EPS projected between $0.10 and $0.13 [8].