VIAVI Announces First Quarter Fiscal 2025 Results

CHANDLER, Ariz., Oct. 31, 2024 /PRNewswire/ – VIAVI (NASDAQ: VIAV) today reported results for its first quarter ended September 28, 2024. The company announced net revenue of $238.2 million, a decrease of $9.7 million or 3.9% year-over-year. GAAP operating margin was 4.8%, a decline from the 5.6% reported in the same period last year.

“We are pleased to announce our first quarter fiscal 2025 results, which were in line with our expectations,” said Oleg Khaykin, VIAVI’s President and Chief Executive Officer. “Despite the challenges posed by the ongoing pandemic and supply chain disruptions, we saw continued demand for our products and services, particularly in the areas of 5G, cloud computing, and cybersecurity.”

Key Highlights:

Net revenue of $238.2 million, down $9.7 million or 3.9% year-over-year
GAAP operating margin of 4.8%, a decline from the 5.6% reported in the same period last year
Non-GAAP operating margin of 10.1%, down from 12.1% in the first quarter of fiscal 2024
GAAP net income of $13.8 million, compared to $19.4 million in the same period last year
Non-GAAP net income of $27.9 million, down from $36.5 million in the first quarter of fiscal 2024
Adjusted EBITDA of $41.8 million, a decline of 13.9% year-over-year

Segment Performance:

Network Enablement: Net revenue decreased 6.5% year-over-year to $147.2 million. GAAP operating margin was 5.8%, down from 7.4% in the same period last year.
Service Enablement: Net revenue increased 3.9% year-over-year to $60.9 million. GAAP operating margin was 12.1%, up from 9.5% in the same period last year.
Optical Security and Performance Products: Net revenue decreased 13.4% year-over-year to $30.1 million. GAAP operating margin was 16.8%, down from 23.2% in the same period last year.

Outlook:

VIAVI expects second quarter fiscal 2025 net revenue to be in the range of $240 million to $260 million, with GAAP operating margin in the range of 5.5% to 7.5%. The company also expects non-GAAP operating margin to be in the range of 10.5% to 12.5%.

“We remain confident in our long-term growth prospects, driven by the ongoing investments in 5G, cloud computing, and cybersecurity,” said Khaykin. “We are committed to delivering innovative solutions that meet the evolving needs of our customers and creating value for our shareholders.”

Conclusion:

VIAVI’s first quarter fiscal 2025 results reflect the company’s ongoing efforts to navigate the challenges posed by the pandemic and supply chain disruptions. Despite the decline in revenue and operating margin, the company remains optimistic about its long-term growth prospects, driven by the increasing demand for its products and services in key areas such as 5G, cloud computing, and cybersecurity. With a strong portfolio of solutions and a commitment to innovation, VIAVI is well-positioned to capitalize on the growing needs of the market and deliver value for its shareholders.