VISN Q4 Earnings Miss Estimates, Top Line Increase Y/Y

Core Insights - Vistance Networks, Inc. (VISN) reported disappointing fourth-quarter results, with both net income and revenues falling short of the Zacks Consensus Estimate, primarily due to the divestiture of the Connectivity and Cable Solutions (CCS) segment [1][9] - Excluding the CCS impact, the company experienced year-over-year revenue growth driven by strong demand across multiple segments [1] Financial Performance - In the fourth quarter, VISN reported a net income of $1.34 billion or $6.05 per share, compared to a net loss of $9.8 million or a loss of $0.04 per share in the previous year. Non-GAAP net income was $48.4 million or $0.17 per share, up from $37.3 million or $0.14 per share year-over-year, but still below the Zacks Consensus Estimate of $0.45 [2] - For the year 2025, VISN reported a GAAP net income of $2.21 billion or $9.63 per share, a significant recovery from a net loss of $380.7 million or $1.78 per share in 2024. Non-GAAP net income was $211.8 million or $0.77 per share, compared to $26.7 million or $0.10 per share in 2024 [3] Revenue Analysis - Consolidated revenues for the fourth quarter improved to $514.5 billion from $415.2 billion year-over-year, driven by stronger sales across all segments, although it fell short of the consensus estimate of $1.5 billion [4] - In 2025, VISN reported revenues of $1.93 billion, reflecting a year-over-year increase of 39.7% [4] Segment Performance - Sales in the Ruckus segment increased by 8.9% year-over-year to $167.1 million, supported by strong WiFi 7 upgrades in U.S. sports stadiums and luxury hotels in Europe and the Middle East [5] - The Aurora segment saw sales of $347.4 million, up from $261.8 million in the year-ago quarter, marking a 32.7% year-over-year growth driven by growing DOCSIS 4.0 shipments and FDX deployments [5] Regional Performance - Revenue in the United States increased by 32.1% year-over-year to $363.1 million, while Europe, the Middle East, and Africa reported revenues of $63.6 million, up 26.2% year-over-year [6] - Asia Pacific revenues were $40.5 million, up 4.1% year-over-year, while Caribbean and Latin American revenues fell by 16.4% year-over-year to $24.4 million [6] Profitability and Expenses - Adjusted gross profit improved to $234.5 million from $176.9 million in the year-ago quarter due to higher revenues, while total adjusted operating expenses rose to $181.8 million from $159.8 million, attributed to increased SG&A and R&D costs [7] - Non-GAAP adjusted EBITDA more than doubled to $64.7 million from $27.5 million year-over-year [7] Cash Flow and Liquidity - In the fourth quarter, VISN generated $281.3 million in cash from operations, compared to $277.8 million in the prior year. For 2025, cash flow was $322.9 million, up from $273.1 million year-over-year [8] Future Outlook - For 2026, VISN expects adjusted EBITDA in the range of $350-400 million, with Ruckus net sales projected to grow in the mid-teens [11] - Operating income is anticipated to be between $178-222 million, although declining net sales from legacy operations and customer concentration may pose challenges for Aurora Networks [11]