Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q2 2025 Earnings Presentation
20 slides from Viavi Solutions's earnings presentation, Jan 30, 2025
Slide 1: Fiscal Q2 2025 Earnings Call Supplementary Slides
Fiscal Q2 2025 Earnings Call Supplementary Slides January 30, 2025
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 Q2 2025 Summary and Key Highlights
Fiscal Q2 2025 Summary and Key Highlights (Amounts in Millions and Other Than Revenue Reflect Non-GAAP) KEY METRICS HIGHLIGHTS ■ Revenue, Non-GAAP Operating Margin and Non- Revenue GAAP EPS came in above high end of our guidance $270.8M 6.4% Y/Y range. ■ Generated operating cash flow of $44.7 millio
Slide 4: Fiscal Q2 2025 NSE Highlights
Fiscal Q2 2025 NSE Highlights (Amounts in millions and other than revenue reflect non-GAAP) NSE NE SE Revenue Revenue Revenue $199.9M 11.3% Y/Y $179.0M 15.1% Y/Y $20.9M (13.3)% Y/Y Gross Margin Gross Margin Gross Margin 64.8% 140 bps Y/Y 64.5% 200 bps Y/Y 67.5% (140) bps Y/Y Operating Margin 8.7% 51
Slide 5: Fiscal Q2 2025 OSP Highlights
Fiscal Q2 2025 OSP Highlights (Amounts in millions and other than revenue reflect non-GAAP) OSP HIGHLIGHTS ■ Revenue at $70.9 million, slightly below guidance Revenue range of $71-$73 million, a decrease of 5.3% Y/Y. The $70.9M (5.3)% Y/Y Y/Y decrease is primarily due to weaker demand for 3D sensing
Slide 6: Fiscal Q3 2025 Business Outlook
Fiscal Q3 2025 Business Outlook SEGMENT BUSINESS OUTLOOK VIAVI $276 million to $288 million Revenue NSE $207 million, plus or minus $5 million OSP $75 million, plus or minus $1 million VIAVI 14.0%, plus or minus 100 bps Non-GAAP Operating Margin NSE 7.0%, plus or minus 100 bps OSP 33.0%, plus or min
Slide 7: Fiscal Q3 2025 Events
Fiscal Q3 2025 Events DATE EVENT LOCATION Feb 27, 2025 Susquehanna's 14th Annual Technology Conference New York Mar 3-6, 2025 Mobile World Conference Barcelona Mar 30-Apr 3, 2025 OFC San Francisco VIAVI//Public © 2025 Viavi Solutions Inc. 6
Slide 8: Additional Financial Information
Additional Financial Information
Slide 9: Fiscal Q2 2025 Financial Highlights
Fiscal Q2 2025 Financial Highlights (Amounts in $millions, except per share amount) FISCAL QUARTER Q2 2025 Q1 2025 Q2 2024 QOQ YOY GAAP Revenue NE $179.0 $141.6 $155.5 26.4% 15.1% SE $20.9 $17.8 $24.1 17.4% (13.3%) OSP $70.9 $78.8 $74.9 (10.0%) (5.3%) Total $270.8 $238.2 $254.5 13.7% 6.4% Non-GAAP G
Slide 10: Income Statement
Income Statement (Amounts in $millions, except per share amounts) FISCAL QUARTER Q2 2025 Q1 2025 Q2 2024 QOQ YOY GAAP Revenue $270.8 $238.2 $254.5 13.7% 6.4% Non-GAAP Gross Margin 61.1% 59.1% 60.0% 200 bps 110 bps Non-GAAP Operating Expenses $125.0 $116.8 $119.1 7.0% 5.0% Non-GAAP Operating Profits
Slide 11: Revenue by Business Segment and Geographic Region
Revenue by Business Segment and Geographic Region (Amounts in $millions) FISCAL QUARTER Q2 2025 Q1 2025 Q2 2024 QOQ YOY Segment Mix NE $179.0 66.1% $141.6 59.4% $155.5 61.1% 26.4% 15.1% SE $20.9 7.7% $17.8 7.5% $24.1 9.5% 17.4% (13.3%) OSP $70.9 26.2% $78.8 33.1% $74.9 29.4% (10.0%) (5.3%) Total $27
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) FISCAL QUARTER Q2 2025 Total Cash Balance (1) $512.8 Long-term Debt (Carrying Value) (2) $639.3 GAAP Cash from Operations $44.7 (1) Includes cash and cash-equivalents, short-term investments and short-term restricted cash. (2) Carrying value equals out
Slide 13: Term Notes Summary
Term Notes Summary (Amounts in $millions) 2026 CONVERTIBLE NOTES 2029 HIGH-YIELD NOTES Issue Size $250.0M $400.0M Current Outstanding * $250.0M $400.0M Coupon 1.625% 3.75% Final Maturity 3/15/2026 10/1/2029 Put Date N/A N/A Call Date 3/20/2025 10/1/2024 Call / Put Price (%) 100% N/A Conversion Price
Slide 14: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) UNAUDITED Q2 2025 Q1 2025 Q2 2024 QOQ YOY GAAP INCOME STATEMENT Net revenue $ 270.8 $ 238.2 $ 254.5 13.7 % 6.4 % Cost of revenues 106.7 98.8 103.1 8.0 % 3.5 % Amortization of acquired technologies 3.3 3.3 3.4 —% (2.9)% Total cost
Slide 15: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) UNAUDITED Q2 2025 Q1 2025 Q2 2024 QoQ YoY NON-GAAP INCOME STATEMENT Net revenue $ 270.8 $ 238.2 $ 254.5 13.7 % 6.4 % Cost of revenues 105.4 97.5 101.7 8.1 % 3.6 % Gross profit 165.4 140.7 152.8 17.6 % 8.2 % Operating expenses
Slide 16: Appendix
Appendix Oe
Slide 17: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) UNAUDITED Q2 2025 Q1 2025 Q2 2024 QOQ YOY Gross Profit - GAAP to Non-GAAP Reconciliation GAAP segment gross profit $ 160.8 $ 136.1 $ 148.0 18.1 % 8.6 % Stock-based compensation 1.3 1.2 1.2 8.3 % 8.3 % Amortization of intangi
Slide 18: Financial Information by Segment
Financial Information by Segment (Amounts in $millions and other than revenue reflect non-GAAP) UNAUDITED Q2 2025 Q1 2025 Q2 2024 QOQ YOY SEGMENT RESULTS ($ in millions) Net revenue: Network Enablement $ 179.0 $ 141.6 $ 155.5 26.4 % 15.1 % Service Enablement 20.9 17.8 24.1 17.4 % (13.3)% Network and
Slide 19: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) UNAUDITED Q4 2024 Q2 2025 BALANCE SHEET (in millions) ASSETS Current assets: Cash and cash equivalents $ 471.3 $ 488.0 Short-term investments 19.9 21.4 Restricted cash 5.0 3.4 Accounts receivable, net 213.1 212.5 Inventories, net 96.5 92.8 Prepayments a
Slide 20: VIAVI Solutions
VIAN I VIAVI Solutions viavisolutions.com