VIAVI Announces Fiscal Fourth Quarter and Fiscal Year 2025 Results
VIAVI (NASDAQ: VIAV) reported strong fiscal Q4 and full-year 2025 results, demonstrating significant growth across key metrics. Q4 net revenue reached $290.5 million, up 15.3% year-over-year, with GAAP operating margin improving 760 bps to 5.3%. Full-year revenue grew 8.4% to $1.08 billion, while GAAP net income surged 234.9% to $34.8 million.
The company saw stabilization in core businesses and accelerated growth in data center ecosystem and aerospace & defense segments. Network and Service Enablement revenue increased 10.6% annually, while Optical Security and Performance Products grew 3.1%. VIAVI maintains a strong financial position with $429.0 million in cash and investments, generating $89.8 million in operating cash flow for FY2025.
Looking ahead, VIAVI projects Q1 FY2026 revenue between $290-298 million with non-GAAP EPS of $0.13-0.14, anticipating continued positive momentum through calendar year 2025.
VIAVI (NASDAQ: VIAV) ha riportato risultati solidi per il quarto trimestre fiscale e per l'intero anno 2025, mostrando una crescita significativa nei principali indicatori. Il fatturato netto del Q4 ha raggiunto 290,5 milioni di dollari, in aumento del 15,3% rispetto all'anno precedente, con un margine operativo GAAP migliorato di 760 punti base al 5,3%. Il fatturato dell'intero anno è cresciuto dell'8,4% arrivando a 1,08 miliardi di dollari, mentre l'utile netto GAAP è aumentato del 234,9% a 34,8 milioni di dollari.
L'azienda ha registrato una stabilizzazione nei settori principali e una crescita accelerata nei segmenti dell'ecosistema dei data center e dell'aerospazio e difesa. I ricavi da Network and Service Enablement sono aumentati del 10,6% su base annua, mentre i prodotti per Sicurezza e Prestazioni Ottiche sono cresciuti del 3,1%. VIAVI mantiene una solida posizione finanziaria con 429,0 milioni di dollari in liquidità e investimenti, generando 89,8 milioni di dollari di flusso di cassa operativo per l'anno fiscale 2025.
Guardando al futuro, VIAVI prevede per il primo trimestre dell'anno fiscale 2026 un fatturato tra 290 e 298 milioni di dollari con un utile per azione non-GAAP tra 0,13 e 0,14 dollari, anticipando un continuo slancio positivo durante il 2025 solare.
VIAVI (NASDAQ: VIAV) reportó resultados sólidos en el cuarto trimestre fiscal y en todo el año 2025, demostrando un crecimiento significativo en métricas clave. Los ingresos netos del Q4 alcanzaron los 290,5 millones de dólares, un aumento del 15,3% interanual, con un margen operativo GAAP que mejoró 760 puntos básicos hasta el 5,3%. Los ingresos anuales crecieron un 8,4% hasta 1,08 mil millones de dólares, mientras que la utilidad neta GAAP se disparó un 234,9% hasta 34,8 millones de dólares.
La compañía observó una estabilización en sus negocios principales y un crecimiento acelerado en los segmentos del ecosistema de centros de datos y aeroespacial y defensa. Los ingresos por Network and Service Enablement aumentaron un 10,6% anual, mientras que los productos de Seguridad y Rendimiento Óptico crecieron un 3,1%. VIAVI mantiene una posición financiera sólida con 429,0 millones de dólares en efectivo e inversiones, generando 89,8 millones de dólares en flujo de caja operativo para el año fiscal 2025.
De cara al futuro, VIAVI proyecta ingresos para el primer trimestre del año fiscal 2026 entre 290 y 298 millones de dólares con un BPA no GAAP de 0,13 a 0,14 dólares, anticipando un impulso positivo continuo durante el año calendario 2025.
VIAVI (NASDAQ: VIAV)는 2025 회계연도 4분기 및 연간 실적에서 주요 지표 전반에 걸쳐 상당한 성장을 보이며 강력한 실적을 보고했습니다. 4분기 순매출은 전년 대비 15.3% 증가한 2억 9,050만 달러를 기록했으며, GAAP 영업이익률은 760bps 개선된 5.3%를 나타냈습니다. 연간 매출은 8.4% 증가한 10억 8천만 달러를 기록했고, GAAP 순이익은 234.9% 급증한 3,480만 달러에 달했습니다.
회사는 핵심 사업 부문의 안정화와 데이터 센터 생태계 및 항공우주 방위 부문에서의 가속화된 성장을 경험했습니다. 네트워크 및 서비스 지원 매출은 연간 10.6% 증가했으며, 광학 보안 및 성능 제품은 3.1% 성장했습니다. VIAVI는 4억 2,900만 달러의 현금 및 투자 자산을 보유하며 강력한 재무 상태를 유지하고 있으며, 2025 회계연도 운영 현금 흐름은 8,980만 달러를 창출했습니다.
앞으로 VIAVI는 2026 회계연도 1분기 매출을 2억 9,000만~2억 9,800만 달러로 예상하며, 비GAAP 주당순이익은 0.13~0.14달러로 전망하고 있어 2025년 연중 긍정적인 모멘텀의 지속을 기대하고 있습니다.
VIAVI (NASDAQ : VIAV) a publié de solides résultats pour le quatrième trimestre fiscal et l'ensemble de l'année 2025, démontrant une croissance significative sur les indicateurs clés. Le chiffre d'affaires net du T4 a atteint 290,5 millions de dollars, en hausse de 15,3 % en glissement annuel, avec une marge opérationnelle GAAP en amélioration de 760 points de base à 5,3 %. Le chiffre d'affaires annuel a progressé de 8,4 % pour atteindre 1,08 milliard de dollars, tandis que le bénéfice net GAAP a bondi de 234,9 % à 34,8 millions de dollars.
L'entreprise a observé une stabilisation de ses activités principales et une croissance accélérée dans les segments de l'écosystème des centres de données ainsi que de l'aérospatial et de la défense. Les revenus du Network and Service Enablement ont augmenté de 10,6 % annuellement, tandis que les produits Optical Security and Performance ont progressé de 3,1 %. VIAVI maintient une solide position financière avec 429,0 millions de dollars en liquidités et investissements, générant 89,8 millions de dollars de flux de trésorerie opérationnel pour l'exercice 2025.
Pour l'avenir, VIAVI prévoit un chiffre d'affaires pour le premier trimestre de l'exercice 2026 compris entre 290 et 298 millions de dollars avec un BPA non-GAAP de 0,13 à 0,14 dollar, anticipant un élan positif continu tout au long de l'année civile 2025.
VIAVI (NASDAQ: VIAV) meldete starke Ergebnisse für das vierte Quartal und das Gesamtjahr 2025 und zeigte dabei ein signifikantes Wachstum bei wichtigen Kennzahlen. Der Nettoumsatz im vierten Quartal erreichte 290,5 Millionen US-Dollar, was einem Anstieg von 15,3 % gegenüber dem Vorjahr entspricht, während die GAAP-Betriebsmarge um 760 Basispunkte auf 5,3 % verbessert wurde. Der Jahresumsatz wuchs um 8,4 % auf 1,08 Milliarden US-Dollar, und der GAAP-Nettogewinn stieg um 234,9 % auf 34,8 Millionen US-Dollar.
Das Unternehmen verzeichnete eine Stabilisierung der Kernbereiche und ein beschleunigtes Wachstum in den Segmenten Datenzentrum-Ökosystem sowie Luft- und Raumfahrt & Verteidigung. Die Umsätze im Bereich Network and Service Enablement stiegen jährlich um 10,6 %, während die Umsätze mit Optical Security and Performance Products um 3,1 % wuchsen. VIAVI verfügt über eine starke finanzielle Position mit 429,0 Millionen US-Dollar an Barmitteln und Investitionen und generierte im Geschäftsjahr 2025 einen operativen Cashflow von 89,8 Millionen US-Dollar.
Für die Zukunft prognostiziert VIAVI für das erste Quartal des Geschäftsjahres 2026 einen Umsatz zwischen 290 und 298 Millionen US-Dollar mit einem Non-GAAP-Gewinn je Aktie von 0,13 bis 0,14 US-Dollar und erwartet einen anhaltend positiven Schwung im Kalenderjahr 2025.
- Net revenue grew 15.3% YoY to $290.5 million in Q4 FY2025
- GAAP net income increased 234.9% YoY to $34.8 million for FY2025
- Operating cash flow of $89.8 million generated in FY2025
- Strong cash position of $429.0 million in total cash and investments
- Network and Service Enablement segment revenue up 10.6% YoY
- GAAP operating margin improved 760 bps YoY in Q4
- GAAP gross margin declined 150 bps YoY in Q4 to 56.3%
- Q4 non-GAAP operating margin decreased 230 bps sequentially
- Substantial debt with $650 million in Senior Notes and Convertible Notes
Insights
VIAVI delivered strong Q4 and FY2025 results with substantial revenue growth and margin expansion across both business segments.
VIAVI has delivered impressive financial performance for both Q4 and full-year 2025, with notable improvements across key metrics. The company reported Q4 revenue of
The margin expansion story is particularly compelling. Non-GAAP operating margin in Q4 increased by
Looking at profitability, VIAVI's Q4 non-GAAP net income surged
The strength was broad-based across business segments. The Network and Service Enablement segment grew
VIAVI maintained solid cash generation with
Management's guidance for Q1 FY2026 suggests continued momentum, projecting revenue between
Fiscal Fourth Quarter
- Net revenue of
$290.5 million $38.5 million 15.3% year-over-year - GAAP operating margin of
5.3% , up 760 bps year-over-year - Non-GAAP operating margin of
14.4% , up 350 bps year-over-year - GAAP net income of
$8.0 million $29.7 million 136.9% year-over-year - Non-GAAP net income of
$29.7 million $12.6 million 73.7% year-over-year - GAAP diluted earnings per share (EPS) of
$0.04 $0.14 140.0% year-over-year - Non-GAAP diluted EPS of
$0.13 $0.05 62.5% year-over-year
Fiscal Year 2025
- Net revenue of
$1.08 billion $83.9 million 8.4% year-over-year - GAAP operating margin of
5.3% , up 320 bps year-over-year - Non-GAAP operating margin of
14.2% , up 270 bps year-over-year - GAAP net income of
$34.8 million $60.6 million 234.9% year-over-year - Non-GAAP net income of
$105.4 million $31.9 million 43.4% year-over-year - GAAP diluted EPS of
$0.15 225.0% year-over-year - Non-GAAP diluted EPS of
$0.47 $0.14 42.4% year-over-year
"VIAVI had a strong finish to Fiscal 2025,with fourth quarter performance at high end of our guidance. During the year, we saw stabilization in our base businesses, the service provider test and measurement segment and optical security pigments. Our recovery was further accelerated by the high growth in our data center ecosystem and aerospace & defense segments. We expect the positive momentum in our end markets to continue through calendar year 2025," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.
Financial Overview:
The tables below (in millions, except percentage, and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."
Fiscal Fourth Quarter Ended June 28, 2025
GAAP Results | |||||||||
Q4 | Q3 | Q4 | Change | ||||||
FY 2025 | FY 2025 | FY 2024 | Q/Q | Y/Y | |||||
Net revenue | $ 290.5 | $ 284.8 | $ 252.0 | 2.0 % | 15.3 % | ||||
Gross margin | 56.3 % | 56.4 % | 57.8 % | (10) bps | (150) bps | ||||
Operating margin | 5.3 % | 3.0 % | (2.3) % | 230 bps | 760 bps | ||||
Income (loss) from operations | $ 15.3 | $ 8.5 | $ (5.7) | 80.0 % | 368.4 % | ||||
Net income (loss) per share | 0.04 | 0.09 | (0.10) | (55.6) % | 140.0 % | ||||
Non-GAAP Results | |||||||||
Q4 | Q3 | Q4 | Change | ||||||
FY 2025 | FY 2025 | FY 2024 | Q/Q | Y/Y | |||||
Gross margin | 60.1 % | 60.0 % | 59.6 % | 10 bps | 50 bps | ||||
Operating margin | 14.4 % | 16.7 % | 10.9 % | (230) bps | 350 bps | ||||
Income from operations | $ 41.9 | $ 47.7 | $ 27.5 | (12.2) % | 52.4 % | ||||
Earnings per share | 0.13 | 0.15 | 0.08 | (13.3) % | 62.5 % | ||||
Net Revenue by Segment | |||||||||
Q4 | Q3 | Q4 | Change | ||||||
FY 2025 | FY 2025 | FY 2024 | Q/Q | Y/Y | |||||
Network and Service Enablement | $ 209.1 | $ 208.2 | $ 182.2 | 0.4 % | 14.8 % | ||||
Optical Security and Performance Products | 81.4 | 76.6 | 69.8 | 6.3 % | 16.6 % | ||||
Total | $ 290.5 | $ 284.8 | $ 252.0 | 2.0 % | 15.3 % | ||||
Fiscal Year Ended June 28, 2025
GAAP Results | |||||
FY 2025 | FY 2024 | Change Y/Y | |||
Net revenue | $ 1,084.3 | $ 1,000.4 | 8.4 % | ||
Gross margin | 57.3 % | 57.6 % | (30) bps | ||
Operating margin | 5.3 % | 2.1 % | 320 bps | ||
Income from operations | $ 57.5 | $ 20.8 | 176.4 % | ||
Net income (loss) per share | 0.15 | (0.12) | 225.0 % | ||
Non-GAAP Results | |||||
FY 2025 | FY 2024 | Change Y/Y | |||
Gross margin | 60.1 % | 59.4 % | 70 bps | ||
Operating margin | 14.2 % | 11.5 % | 270 bps | ||
Income from operations | $ 153.9 | $ 115.0 | 33.8 % | ||
Earnings per share | 0.47 | 0.33 | 42.4 % | ||
Net Revenue by Segment | |||||
FY 2025 | FY 2024 | Change Y/Y | |||
Network and Service Enablement | $ 776.6 | $ 702.0 | 10.6 % | ||
Optical Security and Performance Products | 307.7 | 298.4 | 3.1 % | ||
Total | $ 1,084.3 | $ 1,000.4 | 8.4 % | ||
Americas ,Asia-Pacific and EMEA customers represented39.2% ,35.0% and25.8% , respectively, of total net revenue for the fiscal year ended June 28, 2025.- As of June 28, 2025, the Company held
$429.0 million - As of June 28, 2025, the Company had
$250 million 1.625% Senior Convertible Notes and$400 million 3.75% Senior Notes with a total net carrying value of$642.5 million - During the fiscal quarter and fiscal year ended June 28, 2025, the Company generated
$23.8 million $89.8 million
Business Outlook for the First Quarter of Fiscal 2026
For the first quarter of fiscal 2026 ending September 27, 2025, the Company expects net revenue to be between
With respect to our expectations above, the Company has not reconciled GAAP net income per share to non-GAAP EPS in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.
Conference Call
The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on August 7, 2025 in a live webcast, which will also be archived for replay on the Company's website at https://investor.viavisolutions.com. The Company will post supplementary slides outlining the Company's latest financial results on https://investor.viavisolutions.com under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.
About VIAVI Solutions
VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies for anti-counterfeiting, 3D sensing, government and aerospace, automotive and industrial applications.
Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our industry and customer base; (d) competitive pressures; (e) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) financial projections and expectations, including profitability of certain business units, synergies, benefits and other matters related to the acquisition of the high-speed ethernet, network security and channel emulation testing business lines of Spirent Communications plc; (k) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (l) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (m) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in
Contact Information
Investors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar@viavisolutions.com
Press:
Amit Malhotra
202-341-8624
amit.malhotra@viavisolutions.com
The following financial tables are presented in accordance with GAAP, unless otherwise specified.
-SELECTED PRELIMINARY FINANCIAL DATA -
VIAVI SOLUTIONS INC. | |||||||
Three Months Ended | Years Ended | ||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||
Net revenue | $ 290.5 | $ 252.0 | $ 1,084.3 | $ 1,000.4 | |||
Cost of revenues | 120.2 | 103.0 | 443.7 | 410.7 | |||
Amortization of acquired technologies | 6.8 | 3.4 | 19.5 | 13.8 | |||
Gross profit | 163.5 | 145.6 | 621.1 | 575.9 | |||
Operating expenses: | |||||||
Research and development | 57.2 | 52.5 | 208.7 | 201.9 | |||
Selling, general and administrative | 89.7 | 83.1 | 349.4 | 333.3 | |||
Amortization of other intangibles | 1.5 | 1.3 | 4.8 | 6.3 | |||
Restructuring and related (benefits) charges | (0.2) | 14.4 | 0.7 | 13.6 | |||
Total operating expenses | 148.2 | 151.3 | 563.6 | 555.1 | |||
Income (loss) from operations | 15.3 | (5.7) | 57.5 | 20.8 | |||
Interest and other income, net | 1.8 | 3.7 | 11.1 | 21.7 | |||
Interest expense | (7.5) | (7.5) | (30.0) | (30.9) | |||
Income (loss) before income taxes and equity investment earnings | 9.6 | (9.5) | 38.6 | 11.6 | |||
Provision for income taxes | 2.2 | 12.2 | 4.4 | 37.4 | |||
Equity investment earnings | 0.6 | — | 0.6 | — | |||
Net income (loss) | $ 8.0 | $ (21.7) | $ 34.8 | $ (25.8) | |||
Net income (loss) per share: | |||||||
Basic | $ 0.04 | $ (0.10) | $ 0.16 | $ (0.12) | |||
Diluted | $ 0.04 | $ (0.10) | $ 0.15 | $ (0.12) | |||
Shares used in per share calculations: | |||||||
Basic | 223.2 | 222.9 | 222.5 | 222.6 | |||
Diluted | 227.0 | 222.9 | 225.7 | 222.6 | |||
The preliminary financial statements are estimated based on our current information. | |||||||
VIAVI SOLUTIONS INC. | |||
June 28, 2025 | June 29, 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 423.6 | $ 471.3 | |
Short-term investments | 1.7 | 19.9 | |
Restricted cash | 3.7 | 5.0 | |
Accounts receivable, net | 261.0 | 213.1 | |
Inventories, net | 117.9 | 96.5 | |
Prepayments and other current assets | 77.3 | 70.7 | |
Total current assets | 885.2 | 876.5 | |
Property, plant and equipment, net | 231.9 | 228.2 | |
Goodwill, net | 595.7 | 452.9 | |
Intangibles, net | 131.6 | 38.2 | |
Deferred income taxes | 87.2 | 82.5 | |
Other non-current assets | 62.2 | 58.0 | |
Total assets | $ 1,993.8 | $ 1,736.3 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 68.8 | $ 50.4 | |
Accrued payroll and related expenses | 63.6 | 48.2 | |
Deferred revenue | 74.1 | 65.7 | |
Accrued expenses | 28.7 | 25.3 | |
Short-term debt | 246.2 | — | |
Other current liabilities | 108.3 | 57.5 | |
Total current liabilities | 589.7 | 247.1 | |
Long-term debt | 396.3 | 636.0 | |
Other non-current liabilities | 227.6 | 171.6 | |
Total liabilities | 1,213.6 | 1,054.7 | |
Total stockholders' equity | 780.2 | 681.6 | |
Total liabilities and stockholders' equity | $ 1,993.8 | $ 1,736.3 | |
The preliminary financial statements are estimated based on our current information. | |||
VIAVI SOLUTIONS INC. | |||||||
Three Months Ended June 28, 2025 | |||||||
Network and | Optical Security | Other Items (1) | Consolidated | ||||
Net revenue | $ 209.1 | $ 81.4 | $ — | $ 290.5 | |||
Gross profit | $ 130.0 | $ 44.5 | $ (11.0) | $ 163.5 | |||
Gross margin | 62.2 % | 54.7 % | 56.3 % | ||||
Operating income | $ 9.8 | $ 32.1 | $ (26.6) | $ 15.3 | |||
Operating margin | 4.7 % | 39.4 % | 5.3 % | ||||
Three Months Ended June 29, 2024 | |||||||
Network and | Optical Security | Other Items (1) | Consolidated | ||||
Net revenue | $ 182.2 | $ 69.8 | $ — | $ 252.0 | |||
Gross profit | $ 113.2 | $ 37.0 | $ (4.6) | $ 145.6 | |||
Gross margin | 62.1 % | 53.0 % | 57.8 % | ||||
Operating income (loss) | $ 3.2 | $ 24.3 | $ (33.2) | $ (5.7) | |||
Operating margin | 1.8 % | 34.8 % | (2.3) % | ||||
Year Ended June 28, 2025 | |||||||
Network and | Optical Security | Other Items (1) | Consolidated | ||||
Net revenue | $ 776.6 | $ 307.7 | $ — | $ 1,084.3 | |||
Gross profit | $ 487.9 | $ 163.5 | $ (30.3) | $ 621.1 | |||
Gross margin | 62.8 % | 53.1 % | 57.3 % | ||||
Operating income | $ 41.6 | $ 112.3 | $ (96.4) | $ 57.5 | |||
Operating margin | 5.4 % | 36.5 % | 5.3 % | ||||
Year Ended June 29, 2024 | |||||||
Network and | Optical Security | Other Items (1) | Consolidated | ||||
Net revenue | $ 702.0 | $ 298.4 | $ — | $ 1,000.4 | |||
Gross profit | $ 439.6 | $ 154.9 | $ (18.6) | $ 575.9 | |||
Gross margin | 62.6 % | 51.9 % | 57.6 % | ||||
Operating income | $ 8.0 | $ 107.0 | $ (94.2) | $ 20.8 | |||
Operating margin | 1.1 % | 35.9 % | 2.1 % | ||||
(1) | See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items. |
The preliminary financial schedules are estimated based on our current information. |
Use of Non-GAAP (Adjusted) Financial Measures
The Company provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS financial measures as supplemental information regarding the Company's operational performance and believes providing this additional information allows investors to see Company results through the eyes of management, and better to evaluate more clearly and consistently the Company's core operational performance and expenses and evaluate the efficacy of the methodology used by management to measure such performance. The Company uses the measures disclosed in this Annual Report on Form 10-K to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represents its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition related intangibles, amortization expense related to acquisition related inventory step-up, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities, certain investing and acquisition related expenses and other activities and income tax expenses or benefits that management believes are not reflective of such ordinary, ongoing and core operating activities. The non-GAAP adjustments are outlined below.
Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, plant and equipment and intangibles, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans with a specific and defined term, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) amortization expense related to acquisition related inventory step-up, (vii) changes in fair value of contingent consideration liabilities, (viii) acquisition related transaction and integration costs related to acquired entities, (ix) litigation and legal settlements and (x) other charges unrelated to our core operating performance comprised mainly of other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP operating margin, non-GAAP net income and non-GAAP EPS.
Non-cash interest expense and other expense: The Company excludes certain investing expenses, including accretion of debt discount, and other non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, when calculating non-GAAP net income and non-GAAP EPS.
Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as (i) the utilization of net operating losses (NOLs) where valuation allowances were released, (ii) intra-period tax allocation benefit and (iii) the tax effect for amortization of non-tax deductible intangible assets, in calculating non-GAAP net income and non-GAAP EPS.
Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in
VIAVI SOLUTIONS INC. | |||||||||||||||
The following tables reconcile GAAP measures to non-GAAP measures: | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | Gross Profit | Gross Margin | ||||||||
GAAP measures | $ 163.5 | 56.3 % | $ 145.6 | 57.8 % | $ 621.1 | 57.3 % | $ 575.9 | 57.6 % | |||||||
Stock-based compensation | 1.2 | 0.4 % | 1.2 | 0.5 % | 5.7 | 0.5 % | 4.9 | 0.5 % | |||||||
Other charges (benefits) unrelated to core operating performance | 0.4 | 0.1 % | — | — % | 0.8 | 0.1 % | (0.1) | — % | |||||||
Amortization of acquisition related inventory step-up | 2.6 | 0.9 % | — | — % | 4.3 | 0.4 % | — | — % | |||||||
Amortization of intangibles | 6.8 | 2.4 % | 3.4 | 1.3 % | 19.5 | 1.8 % | 13.8 | 1.3 % | |||||||
Total related to Cost of Revenues | 11.0 | 3.8 % | 4.6 | 1.8 % | 30.3 | 2.8 % | 18.6 | 1.8 % | |||||||
Non-GAAP measures | $ 174.5 | 60.1 % | $ 150.2 | 59.6 % | $ 651.4 | 60.1 % | $ 594.5 | 59.4 % | |||||||
Three Months Ended | Years Ended | ||||||||||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
Operating Income | Operating Margin | Operating (Loss) Income | Operating Margin | Operating Income | Operating Margin | Operating Income | Operating Margin | ||||||||
GAAP measures | $ 15.3 | 5.3 % | $ (5.7) | (2.3) % | $ 57.5 | 5.3 % | $ 20.8 | 2.1 % | |||||||
Stock-based compensation | 12.6 | 4.4 % | 12.8 | 5.1 % | 53.1 | 4.9 % | 49.4 | 4.9 % | |||||||
Change in fair value of contingent liability | (3.4) | (1.2) % | (1.7) | (0.7) % | (8.3) | (0.8) % | (9.5) | (0.9) % | |||||||
Acquisition and integration related charges | 5.6 | 1.9 % | 1.5 | 0.6 % | 22.3 | 2.1 % | 18.1 | 1.8 % | |||||||
Other charges unrelated to core operating performance (1) | 1.1 | 0.4 % | 1.5 | 0.6 % | 1.3 | 0.1 % | 2.5 | 0.2 % | |||||||
Amortization of acquisition related inventory step-up | 2.6 | 0.9 % | — | — % | 4.3 | 0.4 % | — | — % | |||||||
Amortization of intangibles | 8.3 | 2.8 % | 4.7 | 1.9 % | 24.3 | 2.2 % | 20.1 | 2.0 % | |||||||
Restructuring and related (benefits) charges | (0.2) | (0.1) % | 14.4 | 5.7 % | 0.7 | 0.1 % | 13.6 | 1.4 % | |||||||
Litigation settlement | — | — % | — | — % | (1.3) | (0.1) % | — | — % | |||||||
Total related to Cost of Revenues and Operating Expenses | 26.6 | 9.1 % | 33.2 | 13.2 % | 96.4 | 8.9 % | 94.2 | 9.4 % | |||||||
Non-GAAP measures | $ 41.9 | 14.4 % | $ 27.5 | 10.9 % | $ 153.9 | 14.2 % | $ 115.0 | 11.5 % | |||||||
Three Months Ended | Years Ended | ||||||||||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||||||||||
Net Income | Diluted EPS | Net (Loss) Income | Diluted EPS | Net Income | Diluted EPS | Net (Loss) Income | Diluted EPS | ||||||||
GAAP measures | $ 8.0 | $ 0.04 | $ (21.7) | $ (0.10) | $ 34.8 | $ 0.15 | $ (25.8) | $ (0.12) | |||||||
Items reconciling GAAP Net Income (Loss) and EPS to Non-GAAP Net Income and EPS: | |||||||||||||||
Stock-based compensation | 12.6 | 0.05 | 12.8 | 0.06 | 53.1 | 0.24 | 49.4 | 0.22 | |||||||
Change in fair value of contingent liability | (3.4) | (0.01) | (1.7) | (0.01) | (8.3) | (0.03) | (9.5) | (0.04) | |||||||
Acquisition and integration related charges | 5.6 | 0.02 | 1.5 | 0.01 | 22.3 | 0.10 | 18.1 | 0.08 | |||||||
Other charges unrelated to core operating performance (1) | 1.1 | — | 1.5 | 0.01 | 1.3 | 0.01 | 2.5 | 0.01 | |||||||
Amortization of acquisition related inventory step-up | 2.6 | 0.01 | — | — | 4.3 | 0.02 | — | — | |||||||
Amortization of intangibles | 8.3 | 0.04 | 4.7 | 0.02 | 24.3 | 0.11 | 20.1 | 0.09 | |||||||
Restructuring and related (benefits) charges | (0.2) | — | 14.4 | 0.06 | 0.7 | — | 13.6 | 0.06 | |||||||
Litigation settlement | — | — | — | — | (1.3) | (0.01) | (6.3) | (0.02) | |||||||
Non-cash interest expense and other expense | 1.2 | 0.01 | 1.2 | 0.01 | 4.7 | 0.02 | 4.9 | 0.02 | |||||||
(Benefit from) provision for income taxes | (6.1) | (0.03) | 4.4 | 0.02 | (30.5) | (0.14) | 6.5 | 0.03 | |||||||
Total related to Net Income and EPS | 21.7 | 0.09 | 38.8 | 0.18 | 70.6 | 0.32 | 99.3 | 0.45 | |||||||
Non-GAAP measures | $ 29.7 | $ 0.13 | $ 17.1 | $ 0.08 | $ 105.4 | $ 0.47 | $ 73.5 | $ 0.33 | |||||||
Shares used in per share calculation for Non-GAAP EPS | 227.0 | 224.2 | 225.7 | 224.1 | |||||||||||
Note: Certain totals may not add due to rounding. | |
(1) | Included in the year ended June 28, 2025 is a gain of |
The preliminary financial schedules are estimated based on our current information. |
VIAVI SOLUTIONS INC. | |||||||
Three Months Ended | Years Ended | ||||||
June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | ||||
GAAP Net Income (Loss) | $ 8.0 | $ (21.7) | $ 34.8 | $ (25.8) | |||
Interest and other income, net (1) | (1.8) | (3.7) | (11.1) | (21.7) | |||
Interest expense | 7.5 | 7.5 | 30.0 | 30.9 | |||
Provision for income taxes | 2.2 | 12.2 | 4.4 | 37.4 | |||
Equity investment earnings | (0.6) | — | (0.6) | — | |||
Depreciation | 9.6 | 9.5 | 38.4 | 38.6 | |||
Amortization | 8.3 | 4.7 | 24.3 | 20.1 | |||
EBITDA | 33.2 | 8.5 | 120.2 | 79.5 | |||
Restructuring and related (benefits) charges | (0.2) | 14.4 | 0.7 | 13.6 | |||
Stock-based compensation | 12.6 | 12.8 | 53.1 | 49.4 | |||
Change in fair value of contingent liability | (3.4) | (1.7) | (8.3) | (9.5) | |||
Acquisition and integration related charges | 5.6 | 1.5 | 22.3 | 18.1 | |||
Other charges (benefits) unrelated to core operating performance (2) | 0.9 | 1.4 | (0.4) | 1.9 | |||
Amortization of acquisition related inventory step-up | 2.6 | — | 4.3 | — | |||
Adjusted EBITDA | $ 51.3 | $ 36.9 | $ 191.9 | $ 153.0 | |||
Note: Certain totals may not add due to rounding. | |
(1) | Includes |
(2) | Included in the year ended June 28, 2025 is a gain on litigation settlement of |
The preliminary financial schedules are estimated based on our current information. |
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SOURCE VIAVI Financials
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