Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q2 2023 Earnings Presentation
18 slides from Viavi Solutions's earnings presentation, Feb 2, 2023
Slide 1: Fiscal 2Q 2023 Earnings Call Supplementary Slides
Fiscal 2Q 2023 Earnings Call Supplementary Slides February 2, 2023
Slide 2: Cautionary Language Concerning Forward-Looking Statements
Cautionary Language Concerning Forward-Looking Statements This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking
Slide 3: Fiscal 2Q 2023 Financial Highlights
Fiscal 2Q 2023 Financial Highlights (Amounts reflect non-GAAP and in $millions, unless otherwise noted) Result Y/Y Performance GAAP Revenue $284.5 down (9.6)% (exceeded $271M +/- $10M guidance range) Non-GAAP Gross Margin 61.1% down (210) basis points NE 64.1% down (30) basis points SE 66.8% down (5
Slide 4: Income Statement
Income Statement (Amounts reflect non-GAAP and in $millions, except per share amounts) F2Q 2023 F1Q 2023 F2Q 2022 QoQ YoY GAAP Revenue $284.5 $310.2 $314.8 (8.3%) (9.6%) Non-GAAP Gross Margin 61.1% 62.3% 63.2% (120) bps (210) bps Non-GAAP Operating Expenses $127.9 $126.0 $125.8 1.5% 1.7% Non-GAAP Op
Slide 5: GAAP Revenue by Business Segment and Geographic Region
GAAP Revenue by Business Segment and Geographic Region (Amounts in $millions) F2Q 2023 F1Q 2023 F2Q 2022 QoQ YoY Segment Mix NE $179.7 63.2% $194.9 62.8% $214.4 68.1% (7.8%) (16.2%) SE $27.4 9.6% $24.0 7.8% $29.8 9.5% 14.2% (8.1%) OSP $77.4 27.2% $91.3 29.4% $70.6 22.4% (15.2%) 9.6% Total $284.5 100
Slide 6: Business Segment Results
Business Segment Results (Amounts in $millions) F2Q 2023 F1Q 2023 F2Q 2022 QoQ YoY GAAP Revenue NE $179.7 $194.9 $214.4 (7.8%) (16.2%) SE $27.4 $24.0 $29.8 14.2% (8.1%) OSP $77.4 $91.3 $70.6 (15.2%) 9.6% Total $284.5 $310.2 $314.8 (8.3%) (9.6%) Non-GAAP Gross Margin NE 64.1% 64.4% 64.4% (30 bps) (30
Slide 7: Fiscal 2Q 2023 NSE Business Highlights
Fiscal 2Q 2023 NSE Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ NSE revenue at $207.1 million exceeded the guidance range ($187-$203 million) due to stabilization of demand in NSE. ▪ Operating margin at 8.9% exceeded the guidance range (5.5%-6.5%) driven primarily by higher than
Slide 8: Fiscal 2Q 2023 OSP Business Highlights
Fiscal 2Q 2023 OSP Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ Revenue at $77.4 million, an increase of 9.6% Y/Y, above the midpoint of the guidance range ($74-$78 million) due to higher Anti-Counterfeiting and 3D Sensing product sales ▪ Non-GAAP Gross margin at 52.3% decreased
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F2Q 2023 Total Cash Balance (1) $489.7 Short-term Debt (Carrying Value) (2) $68.0 Long-term Debt (Carrying Value) (2) $617.2 GAAP Cash from Operations $46.2 (1) Includes cash and cash-equivalents, short-term investments and restricted cash. (2) Carryin
Slide 10: Term Notes Summary
Term Notes Summary 2024 Convertible 2023 Convertible 2029 High-Yield Notes Notes Notes Issue Size $460.0M $225.0M $400.0M Current Outstanding * $223.9M $68.1M $400.0M Coupon 1.00% 1.75% 3.75% Final Maturity 3/1/2024 6/1/2023 10/1/2029 Put Date N/A N/A N/A Call Date N/A 6/1/2021 10/1/2024 Call / Put
Slide 11: Fiscal 3Q 2023 Guidance
Fiscal 3Q 2023 Guidance (Amounts reflect non-GAAP) We expect third quarter revenue to be approximately $256 million to $276 million, non-GAAP operating margin to be 13.0% to 14.2% and non-GAAP EPS to be $0.10 to $0.12. ▪ Business segment revenue guidance: • For NSE, we expect revenue to be $189 mill
Slide 12: Investor Events - F3Q23
Investor Events - F3Q23 Date Event Forum Feb. 27, 2023 MWC Barcelona, Spain Mar. 06, 2023 Morgan Stanley TMT Conference San Francisco,CA Mar. 08, 2023 OFC Conference San Diego,CA 12
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q222 Q322 Q422 Q123 Q223 Non-GAAP Income Statement Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 ($ in millions, except per share amounts) Net revenue $ 314.8 $ 315.5 $ 335.3 $ 310.2 $ 284.5 Cost of revenues 115.7 11
Slide 15: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q222 Q322 Q422 Q123 Q223 Gross Profit - GAAP to Non-GAAP Reconciliation Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 ($ in millions, except per share amounts) GAAP segment gross profit $ 190.5 $ 186.9 $ 201.1 $ 184
Slide 16: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q222 Q322 Q422 Q123 Q223 Segment Results ($ in millions) Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Net revenue: Network Enablement $ 214.4 $ 204.3 $ 222.2 $ 194.9 $ 179.7 Service Enablement 29.8 26.5 24.0 24.0 27.4 Network and Serv
Slide 17: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q222 Q322 Q422 Q123 Q223 GAAP Income Statement Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 ($ in millions, except per share amounts) Net revenue $ 314.8 $ 315.5 $ 335.3 $ 310.2 $ 284.5 Cost of revenues 116.9 121.2 126.
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q422 YTD Q223 YTD Balance Sheet (in millions) Jun 2022 Dec 2022 ASSETS Current assets: Cash and cash equivalents $ 559.9 $ 484.1 Short-term investments 1.4 1.4 Restricted cash 3.6 4.2 Accounts receivable, net 260.9 223.7 Inventories, net 110.1