Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q2 FY2016 Earnings Presentation
18 slides from Viavi Solutions's earnings presentation, Feb 2, 2016
Slide 1: Fiscal 2Q 2016 Earnings Call Supplementary Slides
Fiscal 2Q 2016 Earnings Call Supplementary Slides February 2, 2016
Slide 2: Cautionary Language Concerning Forward-Looking Statements
2© 2016 Viavi Solutions Inc. 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 ma
Slide 3: Fiscal 2Q 2016 Financial Highlights
3© 2016 Viavi Solutions Inc. Fiscal 2Q 2016 Financial Highlights (Amounts non-GAAP and $millions) ▪ Revenue: $232.1 million (exceeded $212-$228 million guidance range). • NSE and OSP met or exceeded the high-end of revenue guidance. ▪ Gross margin: 63.7% (up 20 basis points Y/Y). • NE up 80 basis po
Slide 4: Income Statement
4© 2016 Viavi Solutions Inc. F2Q 2016 F1Q 2016 F2Q 2015 QoQ YoY Revenue $232.1 $229.7 $226.4 1.0% 2.5 % Gross Margin 63.7% 63.6% 63.5% 10 bps 20 bps Operating Expenses $117.4 $117.4 $124.6 0.0% (5.8)% Operating Margin 13.1% 12.5% 8.4% 60 bps 470 bps Net Income $25.0 $19.6 $11.3 27.6% 121.2 % EPS $0.
Slide 5: Revenue by Business Segment and Geographic Region
5© 2016 Viavi Solutions Inc. Revenue by Business Segment and Geographic Region (Amounts non-GAAP and $millions) F2Q 2016 F1Q 2016 F2Q 2015 QoQ YoY Segment Mix NE $136.4 58.8% $117.6 51.2% $129.0 57.0% 16.0% 5.7% SE $36.9 15.9% $47.9 20.9% $46.8 20.7% (23.0%) (21.2%) OSP $58.8 25.3% $64.2 27.9% $50.6
Slide 6: Revenue and Non-GAAP Diluted EPS Performance
6© 2016 Viavi Solutions Inc. Revenue and Non-GAAP Diluted EPS Performance (Amounts non-GAAP and $millions, except per share amounts) Revenue Non-GAAP Diluted EPS $300 $200 $100 $0 R ev en ue (m ill io ns ) $0.12 $0.11 $0.10 $0.09 $0.08 $0.07 $0.06 $0.05 $0.04 $0.03 $0.02 N on -G A A P D ilu te d EP
Slide 7: Revenue Growth Y/Y%
7© 2016 Viavi Solutions Inc. Revenue Growth Y/Y% (Amounts non-GAAP) Viavi NSE OSP 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% F1Q15 F2Q15 F3Q15 F4Q15 F1Q16 F2Q16 (1.1)% (7.3)% (2.1)% (11.3)% 6.7% 2.5%4.1% (7.3)% (1.1)% (17.5)% (3.8)% (1.4)% (17.5)% (7.3)% (5.3)% 18.5% 48.3% 16.2% y
Slide 8: Business Segment Results
8© 2016 Viavi Solutions Inc. Business Segment Results (Amounts non-GAAP and $millions) F2Q 2016 F1Q 2016 F2Q 2015 QoQ YoY Revenue NE $136.4 $117.6 $129.0 16.0% 5.7% SE $36.9 $47.9 $46.8 (23.0%) (21.2%) OSP $58.8 $64.2 $50.6 (8.4%) 16.2% Total $232.1 $229.7 $226.4 1.0% 2.5% Gross Margin NE 66.4% 64.4
Slide 9: Fiscal 2Q 2016 NSE Business Highlights
9© 2016 Viavi Solutions Inc. Fiscal 2Q 2016 NSE Business Highlights (Amounts non-GAAP and $millions) NE Segment Highlights ▪ Revenue at $136.4 million was up 5.7% Y/Y due to strength in both wireline and lab instruments. ▪ Gross margin at 66.4% increased 80 basis points Y/Y driven by improved operat
Slide 10: Fiscal 2Q 2016 Segment Highlights - OSP
10© 2016 Viavi Solutions Inc. Fiscal 2Q 2016 Segment Highlights - OSP (Amounts non-GAAP and $millions) ▪ Revenue at $58.8 million at the high end of the guidance range ($55-$59 million); operating margin at 38.3% exceeded the guidance range (34.5%-36.5%). ▪ Revenue up 16.2% Y/Y on higher anti-counte
Slide 11: Balance Sheet Highlights
11© 2016 Viavi Solutions Inc. F4Q 2015 F1Q 2016 F2Q 2016 Total Cash Balance* $825.6 $903.1 $926.0 Long-term Debt (Carrying Value)** $561.6 $568.2 $574.8 Cash from Operations $47.8 $(0.3) $(1.0) Short term Deferred Revenue $80.6 $80.5 $93.3 Balance Sheet Highlights ($ millions) *Includes cash and cas
Slide 12: F3Q 2016 Guidance
12© 2016 Viavi Solutions Inc. F3Q 2016 Guidance We expect third quarter revenue to be $210 million to $226 million, operating margin to be 10.7% to 12.7% and EPS to be $0.07 to $0.09. ▪ Business segment revenue guidance: • For NSE, we expect revenue to be $155 million to $167 million. • For OSP, we
Slide 13: Upcoming Investor Events
13© 2016 Viavi Solutions Inc. Upcoming Investor Events Mar. 1, 2016 Morgan Stanley Technology, Media and Telecom Conference San Francisco, CA
Slide 14: Appendix
14 Appendix
Slide 15: GAAP Income Statement
15© 2016 Viavi Solutions Inc. GAAP Income Statement Unaudited 1Q15F 2Q15F 3Q15F 4Q15F FY2015 1Q16F 2Q16F GAAP Income Statement Sep-14 Dec-14 Mar-15 Jun-15 Jun-15 Sep-15 Dec-15 ($ in millions, except per share amounts) Net revenue $ 215.3 $ 226.4 $ 212.4 $ 219.8 $ 873.9 $ 229.7 $ 232.1 Cost of revenu
Slide 16: Non-GAAP Income Statement
16© 2016 Viavi Solutions Inc. Non-GAAP Income Statement Unaudited 1Q15F 2Q15F 3Q15F 4Q15F FY2015 1Q16F 2Q16F Non-GAAP Income Statement Sep-14 Dec-14 Mar-15 Jun-15 Jun-15 Sep-15 Dec-15 ($ in millions, except per share amounts) Net revenue $ 215.3 $ 226.4 $ 212.4 $ 219.8 $ 873.9 $ 229.7 $ 232.1 Cost o
Slide 17: Financial Information by Segment and Geography
17© 2016 Viavi Solutions Inc. Financial Information by Segment and Geography Unaudited 1Q15F 2Q15F 3Q15F 4Q15F 1Q16F 2Q16F Segment Results ($ in millions) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Net revenue: Network Enablement $ 121.5 $ 129.0 $ 124.1 $ 132.2 $ 117.6 $ 136.4 Service Enablement 50.5
Slide 18: Balance Sheet
18© 2016 Viavi Solutions Inc. Balance Sheet Unaudited 4Q15F 2Q16F Balance Sheet (in millions) Jun-15 Dec-15 ASSETS Current assets: Cash and cash equivalents $ 334.5 $ 329.0 Short-term investments 464.9 585.5 Restricted cash 26.2 11.5 Accounts receivable, net 152.3 181.8 Inventories, net 53.8 57.6 Pr