Viavi Solutions (VIAV) Q1 2025 Earnings
How Did VIAV Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.41%.
Did VIAV Beat Earnings? Q1 2025 Results
Yes. Viavi Solutions reported Q1 2025 earnings of $0.06 a share on Oct 31, 2024, beating the $0.06 consensus estimate by 0.0%. Revenue was $238.2M against a $240.1M estimate.
VIAVI Solutions posted a mixed first quarter for fiscal 2025, matching earnings expectations while falling just short on revenue, as persistent softness in its core networking business weighed on results. The company reported non-GAAP EPS of $0.06, in line with the consensus estimate, while revenue of $238.20 million trailed the $240.10 million analyst forecast by 0.79% and declined 3.9% from the year-ago period. The primary drag came from the Network and Service Enablement segment, where combined revenue slipped to $159.40 million from $170.40 million a year earlier and the segment swung to a GAAP operating loss of $7.30 million. Partially offsetting that weakness, the Optical Security and Performance Products segment delivered $78.80 million in revenue with a robust 39.6% operating margin. CEO Oleg Khaykin pointed to improving order momentum in advanced fiber products, including 800G and 1.6Tb offerings, as a signal of better days ahead, with the company guiding Q2 revenue of $255 million to $265 million and non-GAAP EPS of $0.09 to $0.11.
- Weaker demand in NSE segment partially offset by stronger OSP performance
- OSP segment grew 1.7% YoY with 39.6% operating margin
- NSE combined revenue declined due to lower network and service enablement demand
- Gross margin compression of 110 bps YoY to 57.1%
“VIAVI's Q1FY25 revenue came in slightly below the midpoint of our guidance, with weaker demand in NSE partially offset by stronger OSP performance. On a positive side, we are starting to see a pickup in the NSE order momentum with our advanced fiber products such as 800G and recently announced 1.6Tb, being particularly strong. This aligns with our expectations for the beginning of NSE demand recovery in second half of FY25.”
Viavi Solutions CEO, on the earnings call
What Was Viavi Solutions's Outlook in Q1 2025?
For Q2 FY2025 ending December 28, 2024, VIAVI expects net revenue of $255 million to $265 million and non-GAAP EPS of $0.09 to $0.11. Management expects NSE demand recovery to begin in the second half of FY2025, with improving order momentum particularly in advanced fiber products such as 800G and 1.6Tb.
VIAV YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $238.2M | $247.9M | −3.9% |
| Gross Profit | $136.1M | $142.3M | −4.4% |
| Operating Income | $11.5M | $13.8M | −16.7% |
VIAV Revenue by Segment
VIAV Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.