Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q1 FY2016 Earnings Presentation
17 slides from Viavi Solutions's earnings presentation, Nov 12, 2015
Slide 1: Fiscal 1Q 2016 Earnings Call Supplementary Slides
Fiscal 1Q 2016 Earnings Call Supplementary Slides November 2, 2015
Slide 2: Cautionary Language Concerning Forward-Looking Statements
2© 2015 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 1Q 2016 Financial Highlights
3© 2015 Viavi Solutions Inc. Fiscal 1Q 2016 Financial Highlights (Amounts non-GAAP and $millions) ▪ Completed separation of the Communications and Commercial Optical Products business segment ("CCOP") and WaveReady product line on August 1, 2015 with the spin-off of Lumentum and the renaming of JDSU
Slide 4: Income Statement
4© 2015 Viavi Solutions Inc. Income Statement (Amounts non-GAAP and $millions) F1Q 2016 F4Q 2015 F1Q 2015 Revenue $229.7 $219.8 $215.3 Gross Margin 63.6% 62.6% 64.2% Operating Expenses $117.4 $120.8 $125.3 Operating Margin 12.5% 7.7% 6.0% Net Income (Continuing Operations) $19.6 $10.4 $7.4 EPS (Cont
Slide 5: Operating Performance Trends
5© 2015 Viavi Solutions Inc. Operating Performance Trends (Amounts non-GAAP and $millions) F1Q 2015 F2Q 2015 F3Q 2015 F4Q 2015 FY 2015 Revenue $215.3 $226.4 $212.4 $219.8 $873.9 Gross Margin 64.2% 63.5% 64.8% 62.6% 63.8% Operating Margin 6.0% 8.4% 8.9% 7.7% 7.8%
Slide 6: Revenue by Business Segment and Geographic Region
6© 2015 Viavi Solutions Inc. Revenue by Business Segment and Geographic Region (Amounts non-GAAP and $millions) F1Q 2016 F4Q 2015 F1Q 2015 Segment Mix NE $117.6 51.2% $132.2 60.1% $121.5 56.4% SE $47.9 20.9% $37.1 16.9% $50.5 23.5% OSP $64.2 27.9% $50.5 23.0% $43.3 20.1% Total $229.7 100.0% $219.8 1
Slide 7: Business Segment Results
7© 2015 Viavi Solutions Inc. Business Segment Results (Amounts non-GAAP and $millions) F1Q 2016 F4Q 2015 F1Q 2015 Revenue NE $117.6 $132.2 $121.5 SE $47.9 $37.1 $50.5 OSP $64.2 $50.5 $43.3 Total $229.7 $219.8 $215.3 Gross Margin NE 64.4% 65.0 % 66.0 % SE 69.7% 63.6 % 69.3 % OSP 57.6% 55.8 % 53.3 % T
Slide 8: Fiscal 1Q 2016 NSE Business Highlights
8© 2015 Viavi Solutions Inc. Fiscal 1Q 2016 NSE Business Highlights (Amounts non-GAAP and $millions) NE Segment Highlights ▪ Revenue at $117.6 million was down 3.2% Y/Y due to declines in wireline (i.e. cable) field instruments offset by growth in lab and wireless field instruments. ▪ Gross margin a
Slide 9: Fiscal 1Q 2016 Segment Highlights - OSP
9© 2015 Viavi Solutions Inc. Fiscal 1Q 2016 Segment Highlights - OSP (Amounts non-GAAP and $millions) ▪ Revenue at $64.2 million exceeded the guidance range ($59-$63 million); operating margin at 41.0% was at the high-end of the guidance range (39.0%-41.0%). ▪ Revenue up 48.3% Y/Y on higher anti-cou
Slide 10: F2Q 2016 Guidance
10© 2015 Viavi Solutions Inc. F2Q 2016 Guidance We expect second quarter revenue to be $212 million to $228 million, non-GAAP operating margin to be 9.5% to 11.5% and non-GAAP EPS to be $0.06 to $0.08. ▪ Business segment revenue guidance: • For NSE we expect revenue to be $157 million to $169 millio
Slide 11: Upcoming Investor Events
11© 2015 Viavi Solutions Inc. Upcoming Investor Events Nov 17, 2015 Viavi 2015 Annual Shareholders Meeting Milpitas, CA Nov 18, 2015 UBS Global Technology Conference San Francisco, CA Dec 10, 2015 William Blair Optical Bus Tour Milpitas, CA
Slide 12: Appendix
12 Appendix
Slide 13: GAAP Income Statement
13© 2015 Viavi Solutions Inc. GAAP Income Statement Unaudited 1Q15F 4Q15F 1Q16F GAAP Income Statement Sep-14 Jun-15 Sep-15 ($ in millions, except per share amounts) Net revenue $ 215.3 $ 219.8 $ 229.7 Cost of revenues 78.3 83.1 84.9 Amortization of acquired technologies 8.1 5.6 4.3 Total cost of rev
Slide 14: Non-GAAP Income Statement
14© 2015 Viavi Solutions Inc. Non-GAAP Income Statement Unaudited 1Q15F 4Q15F 1Q16F Non-GAAP Income Statement Sep-14 Jun-15 Sep-15 ($ in millions, except per share amounts) Net revenue $ 215.3 $ 219.8 $ 229.7 Cost of revenues 77.0 82.1 83.6 Gross profit 138.3 137.7 146.1 Operating expenses: Research
Slide 15: Selected Financial Data Trends
15© 2015 Viavi Solutions Inc. Selected Financial Data Trends Unaudited 1Q15F 2Q15F 3Q15F 4Q15F 1Q16F GAAP Selected Financial Data From Continuing Operations Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Net revenue $ 215.3 $ 226.4 $ 212.4 $ 219.8 $ 229.7 Cost of revenues 78.3 84.1 76.4 83.1 84.9 Amortization o
Slide 16: Financial Information by Segment and Geography
16© 2015 Viavi Solutions Inc. Financial Information by Segment and Geography Unaudited 1Q15F 2Q15F 3Q15F 4Q15F 1Q16F Segment Results ($ in millions) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Net revenue: Network Enablement $ 121.5 $ 129.0 $ 124.1 $ 132.2 $ 117.6 Service Enablement 50.5 46.8 39.9 37.1 47.9
Slide 17: Balance Sheet
17© 2015 Viavi Solutions Inc. Balance Sheet Unaudited 4Q15F 1Q16F Balance Sheet (in millions) Jun-15 Sep-15 ASSETS Current assets: Cash and cash equivalents $ 334.5 $ 350.0 Short-term investments 464.9 541.9 Restricted cash 26.2 11.2 Accounts receivable, net 152.3 157.2 Inventories, net 53.8 58.1 Pr