Core Insights - Viavi Solutions Inc. reported strong fourth-quarter fiscal 2025 results, with revenues and net income exceeding expectations, driven by growth in the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments [1][4][10] - The company faces challenges due to a constrained spending environment influenced by macroeconomic factors [1] Financial Performance - GAAP net income for the quarter was $8 million or 4 cents per share, a significant improvement from a net loss of $21.7 million or 10 cents per share in the same quarter last year [2] - Non-GAAP net income rose to $29.7 million or 13 cents per share, up from $17.1 million or 8 cents per share year-over-year, surpassing the Zacks Consensus Estimate by a penny [2] - For fiscal 2025, GAAP net income was $34.8 million or 15 cents per share compared to a net loss of $25.8 million or 12 cents per share in fiscal 2024 [3] - Non-GAAP net income for fiscal 2025 was $105.4 million or 47 cents per share, an increase from $73.5 million or 33 cents per share in fiscal 2024 [3] Revenue Breakdown - Quarterly revenues reached $290.5 million, reflecting a 15.3% year-over-year increase, driven by strong demand in the NSE and OSP segments [4][10] - NSE segment revenues were $209.1 million, up from $182.2 million, marking a 14.8% growth due to demand for fiber lab and production products [5] - OSP revenues increased to $81.4 million from $69.8 million, primarily due to strength in anti-counterfeiting products [5] - Revenue contributions from different regions included $112.3 million from America, $99.4 million from Asia-Pacific, and $78.8 million from EMEA [6] Margins and Operating Performance - Non-GAAP gross margin for the quarter was 60.1%, up 50 basis points from the prior year [7] - Non-GAAP operating margin improved by 350 basis points year-over-year to 14.4%, with NSE operating margin at 4.7% and OSP operating margin at 39.4% [8][10] Cash Flow and Liquidity - Viavi generated $89.8 million in cash from operating activities, with a free cash flow of $62 million [11] - As of June 30, 2025, the company had $423.6 million in cash and cash equivalents, with long-term debt of $396.1 million [11] Outlook - For the first quarter of fiscal 2026, management expects revenues between $290 million and $298 million, with non-GAAP earnings per share projected between 13 cents and 14 cents [12]

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].

Keysight Technologies Inc. (KEYS) recently introduced the Next-Generation Embedded Security Testbench, a solution engineered to address growing security challenges of modern chips and embedded devices. Built on a modular framework, the solution uses high-speed PXIe architecture, which enables faster and precise security testing. The solution’s versatility and compatibility allow enterprises to use it with their existing test services. It boasts a user-friendly interface comprising smart algorithms developed ...