Viavi Solutions Inc. (VIAV) Bundle
A Brief History of Viavi Solutions Inc.
Viavi Solutions Inc. (VIAVI) has undergone significant transformations since its inception. Originally part of JDS Uniphase Corporation, the company was spun off in 2015, focusing on network and service enablement, optical security, and performance products.
Financial Overview as of 2024
As of September 28, 2024, Viavi reported a net revenue of $238.2 million, a decrease of $9.7 million or 3.9% compared to the same quarter in 2023. The company's operating income for the same period was $11.5 million, down from $16.0 million in the previous year.
| Financial Metric | Q1 2024 | Q1 2023 | Change |
|---|---|---|---|
| Net Revenue | $238.2 million | $247.9 million | $(9.7) million (-3.9%) |
| Operating Income | $11.5 million | $16.0 million | $(4.5) million (-28.1%) |
| Net (Loss) Income | $(1.8) million | $9.8 million | $(11.6) million (-118.4%) |
| GAAP Diluted EPS | $(0.01) | $0.04 | $(0.05) |
Revenue Breakdown by Segment
In the first quarter of 2024, the revenue by segment was as follows:
| Segment | Net Revenue | Change |
|---|---|---|
| Network Enablement | $141.6 million | (5.6%) |
| Service Enablement | $17.8 million | (12.7%) |
| Optical Security and Performance | $78.8 million | 1.7% |
Operating Expenses and Margins
The operating expenses for Q1 2024 were reported as follows:
| Expense Type | Amount | Percentage of Revenue |
|---|---|---|
| Research and Development | $49.4 million | 20.7% |
| Selling, General and Administrative | $74.1 million | 31.1% |
The gross margin for the quarter was reported at 57.1%, down from 58.2% year-over-year.
Stockholder’s Equity
As of September 28, 2024, Viavi's stockholder's equity was reported as follows:
| Equity Components | Amount |
|---|---|
| Common Stock | $0.2 million |
| Additional Paid-In Capital | $70,480.2 million |
| Accumulated Deficit | $(69,664.7) million |
| Accumulated Other Comprehensive Loss | $(113.6) million |
| Total Stockholders' Equity | $702.1 million |
Debt Obligations
As of September 28, 2024, Viavi's long-term debt stood at $637.6 million, with no borrowings under its $300 million revolving credit facility.
Recent Developments
Viavi has been actively engaged in restructuring efforts aimed at enhancing operational efficiency, with an estimated annualized gross cost savings of approximately $25 million expected from recent initiatives. The company's restructuring accrual as of September 28, 2024, was $6.8 million.
Viavi continues to navigate market challenges while focusing on strategic growth opportunities in its core business areas.
A Who Owns Viavi Solutions Inc. (VIAV)
Major Shareholders
As of 2024, Viavi Solutions Inc. has a diverse ownership structure primarily composed of institutional investors. The following table summarizes the major shareholders of Viavi Solutions Inc.:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 11.4% | 25.4 million shares |
| The Vanguard Group, Inc. | 8.9% | 19.8 million shares |
| State Street Corporation | 5.5% | 12.3 million shares |
| Invesco Ltd. | 5.0% | 11.1 million shares |
| Wellington Management Group LLP | 4.7% | 10.4 million shares |
Institutional Ownership
Institutional investors hold a significant portion of Viavi Solutions Inc.'s stock. As of the latest report, institutional ownership stands at approximately 56.2%.
Insider Ownership
Insider ownership is relatively low, with executives and board members owning about 2.5% of the company. The table below provides details on key insiders:
| Name | Position | Shares Owned |
|---|---|---|
| Oleg Khaykin | President & CEO | 1.2 million shares |
| Kevin Siebert | General Counsel | 300,000 shares |
| Mark J. D. Kwan | SVP, Finance | 250,000 shares |
Stock Performance
Viavi Solutions Inc. trades on the NASDAQ under the ticker symbol VIAV. As of October 2024, the stock price is approximately $8.45, reflecting a year-to-date performance of -12.3%.
Recent Financial Performance
For the three months ended September 28, 2024, Viavi reported:
- Total Net Revenue: $238.2 million
- Net Loss: $(1.8) million
- GAAP Operating Income: $11.5 million
Market Capitalization
As of October 2024, Viavi Solutions Inc. has a market capitalization of approximately $1.87 billion.
Stockholder Meetings
The company holds annual stockholder meetings where key decisions regarding company management and strategy are voted on. The next meeting is scheduled for May 2025, where shareholders will review financial performance and elect board members.
Regulatory Filings
Viavi Solutions Inc. files regular reports with the SEC, including Form 10-K and Form 10-Q, which provide detailed financial information and insights into ownership structures.
Recent Developments
In 2024, Viavi Solutions Inc. announced a stock repurchase plan of up to $300 million, aimed at enhancing shareholder value. As of the latest update, they have repurchased approximately $16.4 million worth of shares under this program.
Viavi Solutions Inc. (VIAV) Mission Statement
Company Overview
Viavi Solutions Inc. is a global provider of network test, monitoring, and assurance solutions primarily for telecommunications service providers, enterprises, and government agencies. The company focuses on enabling its customers to optimize their networks and enhance service quality while reducing operational costs.
Mission Statement
As of 2024, Viavi Solutions Inc. aims to empower connectivity by providing innovative solutions that ensure the performance, reliability, and security of networks worldwide. The company is committed to delivering excellent customer value through advanced technologies and a deep understanding of market needs.
Financial Performance
For the three months ended September 28, 2024, Viavi reported a total net revenue of $238.2 million, a decrease of 3.9% from $247.9 million during the same period in 2023. The product revenue was $197.5 million, down from $205.6 million, while service revenue declined to $40.7 million from $42.3 million.
| Financial Metric | Q1 2025 (September 28, 2024) | Q1 2024 (September 30, 2023) | Change (%) |
|---|---|---|---|
| Total Net Revenue | $238.2 million | $247.9 million | (3.9%) |
| Product Revenue | $197.5 million | $205.6 million | (3.9%) |
| Service Revenue | $40.7 million | $42.3 million | (3.8%) |
| Gross Profit | $136.1 million | $144.4 million | (5.7%) |
| Net (Loss) Income | $(1.8) million | $9.8 million | (118.4%) | Basic Net (Loss) Income per Share | $(0.01) | $0.04 | (125.0%) |
Strategic Focus Areas
Viavi Solutions is focusing on the following strategic areas to enhance its mission:
- Innovation: Continuously investing in research and development to drive technological advancements in network monitoring and assurance.
- Customer Engagement: Strengthening relationships with customers to better understand their needs and deliver tailored solutions.
- Market Expansion: Exploring new markets and applications for its technologies, particularly in the growing fields of 5G and network virtualization.
Operating Segments Performance
The company's operating segments for the three months ended September 28, 2024, are as follows:
| Segment | Net Revenue | Gross Profit | Operating Income |
|---|---|---|---|
| Network Enablement | $141.6 million | $86.3 million | $(7.3) million |
| Service Enablement | $17.8 million | $10.8 million | $0.3 million |
| Optical Security and Performance | $78.8 million | $43.6 million | $31.2 million |
Global Presence and Revenue by Region
Viavi operates in various regions, with the following revenue breakdown for the three months ended September 28, 2024:
| Region | Product Revenue | Service Revenue | Total Revenue |
|---|---|---|---|
| Americas | $70.1 million | $18.6 million | $88.7 million |
| Asia-Pacific | $78.8 million | $7.1 million | $85.9 million |
| EMEA | $48.6 million | $15.0 million | $63.6 million |
Conclusion
Viavi Solutions Inc. remains committed to its mission of empowering connectivity and enhancing network performance through innovative solutions and strong customer engagement.
How Viavi Solutions Inc. (VIAV) Works
Business Segments
Viavi Solutions Inc. operates primarily through three business segments:
- Network Enablement (NE)
- Service Enablement (SE)
- Optical Security and Performance Products (OSP)
Financial Performance
For the three months ended September 28, 2024, Viavi reported the following financial highlights:
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Net Revenue | $238.2 million | $247.9 million | Down $9.7 million (3.9%) |
| GAAP Operating Margin | 4.8% | 6.5% | Down 170 bps |
| Non-GAAP Operating Margin | 10.0% | 12.4% | Down 240 bps |
| GAAP Net (Loss) Income | $(1.8) million | $9.8 million | Down $11.6 million (118.4%) |
| Non-GAAP Net Income | $12.4 million | $19.5 million | Down $7.1 million (36.4%) |
| GAAP Diluted EPS | $(0.01) | $0.04 | Down $0.05 (125.0%) |
| Non-GAAP Diluted EPS | $0.06 | $0.09 | Down $0.03 (33.3%) |
Revenue Breakdown
The revenue breakdown by segment for the three months ended September 28, 2024, is as follows:
| Segment | Net Revenue | Gross Profit | Gross Margin |
|---|---|---|---|
| Network Enablement | $141.6 million | $86.3 million | 60.9% |
| Service Enablement | $17.8 million | $10.8 million | 60.7% |
| Optical Security and Performance | $78.8 million | $43.6 million | 55.3% |
Operating Expenses
Operating expenses for the three months ended September 28, 2024, were as follows:
| Expense Type | Amount |
|---|---|
| Research and Development | $49.4 million |
| Selling, General and Administrative | $74.1 million |
| Amortization of Intangibles | $1.1 million |
| Total Operating Expenses | $124.6 million |
Balance Sheet Highlights
As of September 28, 2024, the balance sheet highlights included:
| Item | Amount |
|---|---|
| Total Assets | $1,737.6 million |
| Total Liabilities | $1,035.5 million |
| Total Stockholders’ Equity | $702.1 million |
Cash Flow Analysis
For the three months ended September 28, 2024, cash flow activities were reported as follows:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $13.5 million |
| Net Cash Used in Investing Activities | $(11.5) million |
| Net Cash Used in Financing Activities | $(21.0) million |
Market Dynamics
Viavi continues to face challenges in its market environment, particularly in North America, where service provider spending has weakened. However, the performance in the OSP segment has shown resilience due to increased demand in consumer and industrial applications.
Strategic Outlook
Viavi's management has indicated a focus on defending and consolidating its leadership in core business segments while investing in new technologies and expanding into adjacent markets. The company expects gradual recovery in its end markets moving into the latter half of fiscal 2025.
As of September 28, 2024, Viavi had authorized a stock repurchase plan for up to $300 million, with $198.4 million remaining for future repurchases.
How Viavi Solutions Inc. (VIAV) Makes Money
Revenue Streams
Viavi Solutions Inc. generates revenue through two primary segments: product revenue and service revenue. For the three months ended September 28, 2024, Viavi recorded total net revenue of $238.2 million, which represents a 3.9% decline from $247.9 million in the same period the previous year.
| Segment | Net Revenue (in millions) | Change | Percentage Change |
|---|---|---|---|
| Network Enablement | $141.6 | $(8.4) | (5.6)% |
| Service Enablement | $17.8 | $(2.6) | (12.7)% |
| Optical Security and Performance | $78.8 | $1.3 | 1.7% |
| Total | $238.2 | $(9.7) | (3.9)% |
Product Revenue
Product revenue for the three months ended September 28, 2024, was $197.5 million, a decrease from $205.6 million year-over-year. This decline is attributed to reduced demand in the Network Enablement (NE) and Service Enablement (SE) segments, though it was partially offset by increases in the Optical Security and Performance (OSP) segment.
Service Revenue
Service revenue amounted to $40.7 million, down from $42.3 million the previous year. This decrease reflects lower spending from service providers, which has been a trend impacting the company’s performance.
Gross Profit and Margins
The gross profit for the three months ended September 28, 2024, was $136.1 million, resulting in a gross margin of 57.1%, compared to 58.2% in the same period last year. The decline in gross margin is primarily due to lower margins in the NE and SE segments, partially offset by improved margins in the OSP segment.
Operating Expenses
Total operating expenses for the same period were $124.6 million, down from $128.4 million year-over-year. The breakdown of operating expenses includes:
- Research and Development: $49.4 million
- Selling, General and Administrative: $74.1 million
- Amortization of Intangibles: $1.1 million
Operating Income and Loss
Viavi reported an operating income of $11.5 million, down from $16.0 million year-over-year. This translates to an operating margin of 4.8%, a decrease from 6.5% in the same period last year.
Geographic Revenue Distribution
The geographic distribution of net revenue for the three months ended September 28, 2024, is as follows:
| Region | Net Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Americas | $88.7 | 37.2% |
| Asia-Pacific | $85.9 | 36.1% |
| EMEA | $63.6 | 26.7% |
| Total | $238.2 | 100% |
Cash Flow and Liquidity
For the three months ended September 28, 2024, Viavi reported a net cash provided by operating activities of $13.5 million, a decrease from $50.3 million in the prior year. The company's cash and cash equivalents at the end of the period were $467.9 million.
Debt and Financial Obligations
As of September 28, 2024, Viavi's total long-term debt was $637.6 million. The company remains compliant with all debt covenants.
Conclusion of Financial Performance
Viavi Solutions Inc. continues to navigate a challenging market environment, with revenue pressures impacting both product and service lines. The company’s focus on enhancing product offerings and operational efficiency remains critical for future growth.
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Article updated on 8 Nov 2024
Resources:
- Viavi Solutions Inc. (VIAV) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Viavi Solutions Inc. (VIAV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Viavi Solutions Inc. (VIAV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.