Companies /Technology

Viavi Solutions Inc

NASDAQ: VIAV Communication Equipment
$47.10
▲ $2.32 (+5.18%) today
Markets closed · 2:36am ET

Q1 2025 Earnings

Reported Oct 31, 2024, 4:07pm ET · SEC source
$0.06
Beat +0.00%
EPS · est. $0.06
$238.2M
Miss −0.79%
Revenue · est. $240.1M
−1.0%
Trailing market
VIAV vs S&P since report
8 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+4%+8%Oct 31Nov 1report 4:07pm ETearnings+0.3%+6.8%
0+4%+8%Oct 31Nov 1earnings+0.3%+6.8%
VIAV +6.8%S&P 500 +0.3%
0+4%+8%Oct 31Nov 1report 4:07pm ETearnings+0.5%+6.8%
0+4%+8%Oct 31Nov 1earnings+0.5%+6.8%
VIAV +6.8%NASDAQ +0.5%
−5%0+5%Oct 30Nov 8report 4:07pm ETearnings+5.1%+7.4%
−5%0+5%Oct 30Nov 8earnings+5.1%+7.4%
VIAV +7.4%S&P 500 +5.1%
−5%0+5%Oct 30Nov 8report 4:07pm ETearnings+6.1%+7.4%
−5%0+5%Oct 30Nov 8earnings+6.1%+7.4%
VIAV +7.4%NASDAQ +6.1%
+6.94%
Day of report
−2.84%
Next session
+6.80%
One week
+5.38%
30 days

S&P 500 over the same 30 days: +6.41%.

Did VIAV Beat Earnings? Q1 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$70.0M$140.0M$210.0M$247.9M$238.2MRevenue$142.3M$136.1MGross Profit$13.8M$11.5MOperating Income
$0$70.0M$140.0M$210.0MRevenueGross ProfitOperating Income

VIAV Revenue by Segment

Network and Service Enablement
Network Enablement$141.6M−5.6%
Optical Security and Performance Products$78.8M+1.7%
Service Enablement$17.8M−12.7%

VIAV Revenue by Geography

Americas$88.6M
Asia Pacific$86.0M
EMEA$63.6M

Figures from SEC filings and company reports. Not investment advice.