Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q4 2023 Earnings Presentation
20 slides from Viavi Solutions's earnings presentation, Aug 10, 2023
Slide 1: Fiscal 4Q 2023 Earnings Call Supplementary Slides
Fiscal 4Q 2023 Earnings Call Supplementary Slides August 10, 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 4Q 2023 Financial Highlights
Fiscal 4Q 2023 Financial Highlights (Amounts reflect non-GAAP and in $millions, except per share amounts) Result Y/Y Performance GAAP Revenue $263.6 down (21.4)% Non-GAAP Gross Margin 58.2% down (430) basis points NE 61.5% down (270) basis points SE 66.3% down (500) basis points OSP 46.6% down (930)
Slide 4: Income Statement
Income Statement (Amounts reflect non-GAAP and in $millions, except per share amounts) F4Q 2023 F3Q 2023 F4Q 2022 QoQ YoY GAAP Revenue $263.6 $247.8 $335.3 6.4% (21.4%) Non-GAAP Gross Margin 58.2% 59.7% 62.5% (150) bps (430) bps Non-GAAP Operating Expenses $122.7 $119.7 $138.0 2.5% (11.1%) Non-GAAP
Slide 5: Fiscal 2023 Financial Highlights
Fiscal 2023 Financial Highlights (Amounts reflect non-GAAP and in $millions, unless otherwise noted) Result Y/Y Performance Revenue $1,106.1 down (14.4)% Non-GAAP Gross Margin 60.5% down (210) basis points NE 63.1% down (120) basis points SE 67.6% down (160) basis points OSP 52.0% down (440) basis p
Slide 6: Three-Year Fiscal Summary
Three-Year Fiscal Summary (Amounts reflect non-GAAP and $millions, except per share amounts) FY 2023 FY 2022 FY 2021 Revenue $1,106.1 $1,292.4 $1,198.9 Non-GAAP Gross Margin 60.5% 62.6 % 62.7 % Non-GAAP Operating Expenses $496.3 $521.9 $498.7 Non-GAAP Operating Margin 15.6 % 22.2 % 21.1 % Non-GAAP N
Slide 7: GAAP Revenue by Business Segment and Geographic Region
GAAP Revenue by Business Segment and Geographic Region (Amounts in $millions) F4Q 2023 F3Q 2023 F4Q 2022 QoQ YoY Segment Mix NE $173.3 65.8% $149.6 60.3% $222.2 66.3% 15.8% (22.0%) SE $24.6 9.3% $27.7 11.2% $24.0 7.1% (11.2%) 2.5% OSP $65.7 24.9% $70.5 28.5% $89.1 26.6% (6.8%) (26.3%) Total $263.6 1
Slide 8: Business Segment Results
Business Segment Results (Amounts in $millions) F4Q 2023 F3Q 2023 F4Q 2022 QoQ YoY GAAP Revenue NE $173.3 $149.6 $222.2 15.8% (22.0%) SE $24.6 $27.7 $24.0 (11.2%) 2.5% OSP $65.7 $70.5 $89.1 (6.8%) (26.3%) Total $263.6 $247.8 $335.3 6.4% (21.4%) Non-GAAP Gross Margin NE 61.5% 62.0% 64.2% (50 bps) (27
Slide 9: Fiscal 4Q 2023 NSE Business Highlights
Fiscal 4Q 2023 NSE Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ NSE revenue at $197.9 million exceeded the guidance range ($179-$195 million). ▪ Operating margin at 5.8% was above the midpoint of the guidance range (3.0%-6.0%). NE Segment Highlights ▪ Revenue at $173.3 million d
Slide 10: Fiscal 4Q 2023 OSP Business Highlights
Fiscal 4Q 2023 OSP Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ Revenue at $65.7 million, was above the midpoint of the guidance range ($63-$67 million) although, was a decrease of 26.3% Y/Y due to lower Anti-Counterfeiting and 3D Sensing product sales. ▪ Non-GAAP Gross margin a
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F4Q 2023 Total Cash Balance (1) $525.6 Short-term Debt (Carrying Value) (2) $96.2 Long-term Debt (Carrying Value) (2) $629.5 GAAP Cash from Operations $23.5 (1) Includes cash and cash-equivalents, short-term investments and restricted cash. (2) Carryin
Slide 12: Term Notes Summary
Term Notes Summary 2024 Convertible 2026 Convertible 2029 High-Yield Notes Notes Notes Issue Size $460.0M $250.0M $400.0M Current Outstanding * $96.4M $250.0M $400.0M Coupon 1.00% 1.625% 3.75% Final Maturity 3/1/2024 3/15/2026 10/1/2029 Put Date N/A N/A N/A Call Date N/A 3/20/2025 10/1/2024 Call / P
Slide 13: Fiscal 1Q 2024 Guidance
Fiscal 1Q 2024 Guidance (Amounts reflect non-GAAP) We expect first quarter revenue to be approximately $240 million to $260 million, non-GAAP operating margin to be 12.7% to 14.2% and non-GAAP EPS to be $0.09 to $0.11. ▪ Business segment revenue guidance: • For NSE, we expect revenue to be $167 mill
Slide 14: Investor Events - F1Q24
Investor Events - F1Q24 Date Event Forum August 22-24, 2023 Rosenblatt’s Virtual Tech Summit Virtual Conference October 2-4, Conference, Deutsche Bank – Leveraged Finance Conference 2023 Scottsdale Arizona 13
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q422 Q123 Q223 Q323 Q423 Non-GAAP Income Statement Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 ($ in millions, except per share amounts) Net revenue $ 335.3 $ 310.2 $ 284.5 $ 247.8 $ 263.6 Cost of revenues 125.8 11
Slide 17: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q422 Q123 Q223 Q323 Q423 Gross Profit - GAAP to Non-GAAP Reconciliation Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 ($ in millions, except per share amounts) GAAP segment gross profit $ 201.1 $ 184.8 $ 167.0 $ 141
Slide 18: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q422 Q123 Q223 Q323 Q423 Segment Results ($ in millions) Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Net revenue: Network Enablement $ 222.2 $ 194.9 $ 179.7 $ 149.6 $ 173.3 Service Enablement 24.0 24.0 27.4 27.7 24.6 Network and Serv
Slide 19: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q422 Q123 Q223 Q323 Q423 GAAP Income Statement Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 ($ in millions, except per share amounts) Net revenue $ 335.3 $ 310.2 $ 284.5 $ 247.8 $ 263.6 Cost of revenues 126.9 118.3 111.
Slide 20: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q422 YTD Q423 YTD Balance Sheet (in millions) Jun 2022 Jun 2023 ASSETS Current assets: Cash and cash equivalents $ 559.9 $ 506.5 Short-term investments 1.4 14.6 Restricted cash 3.6 4.5 Accounts receivable, net 260.9 231.2 Inventories, net 110.