Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q1 2023 Earnings Presentation
18 slides from Viavi Solutions's earnings presentation, Nov 3, 2022
Slide 1: Fiscal 1Q 2023 Earnings Call Supplementary Slides
Fiscal 1Q 2023 Earnings Call Supplementary Slides November 3, 2022
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 1Q 2023 Financial Highlights
Fiscal 1Q 2023 Financial Highlights (Amounts reflect non-GAAP and in $millions, unless otherwise noted) Result Y/Y Performance Revenue $310.2 down (5.1)% (below $324M +/- $7M guidance range) Non-GAAP Gross Margin 62.3% down (30) basis points NE 64.4% down (40) basis points SE 66.7% up 280 basis poin
Slide 4: Income Statement
Income Statement (Amounts reflect non-GAAP and in $millions, except per share amounts) F1Q 2023 F4Q 2022 F1Q 2022 QoQ YoY Revenue $310.2 $335.3 $326.8 (7.5%) (5.1%) Non-GAAP Gross Margin 62.3% 62.5% 62.6% (20) bps (30) bps Non-GAAP Operating Expenses $126.0 $138.0 $130.2 (8.7%) (3.2%) Non-GAAP Opera
Slide 5: Revenue by Business Segment and Geographic Region
Revenue by Business Segment and Geographic Region (Amounts in $millions) F1Q 2023 F4Q 2022 F1Q 2022 QoQ YoY Segment Mix NE $194.9 62.9% $222.2 66.3% $204.9 62.7% (12.3%) (4.9%) SE $24.0 7.7% $24.0 7.1% $23.0 7.0% —% 4.3% OSP $91.3 29.4% $89.1 26.6% $98.9 30.3% 2.5% (7.7%) Total $310.2 100.0% $335.3
Slide 6: Business Segment Results
Business Segment Results (Amounts in $millions) F1Q 2023 F4Q 2022 F1Q 2022 QoQ YoY Revenue NE $194.9 $222.2 $204.9 (12.3%) (4.9%) SE $24.0 $24.0 $23.0 —% 4.3% OSP $91.3 $89.1 $98.9 2.5% (7.7%) Total $310.2 $335.3 $326.8 (7.5%) (5.1%) Non-GAAP Gross Margin NE 64.4% 64.2% 64.8% 20 bps (40 bps) SE 66.7
Slide 7: Fiscal 1Q 2023 NSE Business Highlights
Fiscal 1Q 2023 NSE Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ NSE revenue at $218.9 million was below the guidance range ($231-$241 million) due to lower demand for Field Instruments from Service Providers ▪ Operating margin at 13.2% was below the guidance range (14.0%-15.0%)
Slide 8: Fiscal 1Q 2023 OSP Business Highlights
Fiscal 1Q 2023 OSP Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ Revenue at $91.3 million, while a decrease of 7.7% Y/Y, exceeded the guidance range ($86-$90 million) due to higher 3D Sensing product sales ▪ Non-GAAP Gross margin at 56.7% decreased 100 basis points Y/Y due to hig
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F1Q 2023 Total Cash Balance (1) $517.1 Short-term Debt (Carrying Value) (2) $68.0 Long-term Debt (Carrying Value) (2) $616.9 GAAP Cash from Operations $26.6 (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 2Q 2023 Guidance
Fiscal 2Q 2023 Guidance (Amounts reflect non-GAAP) We expect second quarter revenue to be approximately $261 million to $281 million, non-GAAP operating margin to be 13.9% to 14.9% and non-GAAP EPS to be $0.10 to $0.12. ▪Business segment revenue guidance: •For NSE, we expect revenue to be $187 milli
Slide 12: Investor Events - F2Q23
Investor Events - F2Q23 Date Event Forum Nov. 15, 2022 Needham Virtual Security, Networking, and Communications Virtual Conference
Slide 13: Appendix
VIAVI Appendix
Slide 14: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q122 Q222 Q322 Q422 Q123 Non-GAAP Income Statement Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 ($ in millions, except per share amounts) Net revenue $ 326.8 $ 314.8 $ 315.5 $ 335.3 $ 310.2 Cost of revenues 122.3 11
Slide 15: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q122 Q222 Q322 Q422 Q123 Gross Profit - GAAP to Non-GAAP Reconciliation Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 ($ in millions, except per share amounts) GAAP segment gross profit $ 195.0 $ 190.5 $ 186.9 $ 201
Slide 16: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q122 Q222 Q322 Q422 Q123 Segment Results ($ in millions) Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Net revenue: Network Enablement $ 204.9 $ 214.4 $ 204.3 $ 222.2 $ 194.9 Service Enablement 23.0 29.8 26.5 24.0 24.0 Network and Serv
Slide 17: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q122 Q222 Q322 Q422 Q123 GAAP Income Statement Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 ($ in millions, except per share amounts) Net revenue $ 326.8 $ 314.8 $ 315.5 $ 335.3 $ 310.2 Cost of revenues 123.9 116.9 121.
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q422 YTD Q123 YTD Balance Sheet (in millions) Jun 2022 Sep 2022 ASSETS Current assets: Cash and cash equivalents $ 559.9 $ 512.6 Short-term investments 1.4 1.3 Restricted cash 3.6 3.2 Accounts receivable, net 260.9 246.3 Inventories, net 110.1