Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q3 2024 Earnings Presentation
17 slides from Viavi Solutions's earnings presentation, May 2, 2024
Slide 1: Fiscal 3Q 2024 Earnings Call Supplementary Slides
Fiscal 3Q 2024 Earnings Call Supplementary Slides May 2, 2024
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 3Q 2024 Financial Highlights
Fiscal 3Q 2024 Financial Highlights (Amounts in $millions, except per share amount) F3Q 2024 F2Q 2024 F3Q 2023 QoQ YoY GAAP Revenue NE $151.7 $155.5 $151.9 (2.4%) (0.1%) SE $18.1 $24.1 $25.4 (24.9%) (28.7%) OSP $76.2 $74.9 $70.5 1.7% 8.1% Total $246.0 $254.5 $247.8 (3.3%) (0.7%) Non-GAAP Gross Margi
Slide 4: Income Statement
Income Statement (Amounts in $millions, except per share amounts) F3Q 2024 F2Q 2024 F3Q 2023 QoQ YoY GAAP Revenue $246.0 $254.5 $247.8 (3.3%) (0.7%) Non-GAAP Gross Margin 57.9% 60.0% 59.7% (210) bps (180) bps Non-GAAP Operating Expenses $119.5 $119.1 $119.7 0.3% (0.2%) Non-GAAP Operating Profits $23
Slide 5: GAAP Revenue by Business Segment and Geographic Region
GAAP Revenue by Business Segment and Geographic Region (Amounts in $millions) F3Q 2024 F2Q 2024 F3Q 2023 QoQ YoY Segment Mix NE $151.7 61.6% $155.5 61.1% $151.9 61.2% (2.4%) (0.1%) SE $18.1 7.4% $24.1 9.5% $25.4 10.3% (24.9%) (28.7%) OSP $76.2 31.0% $74.9 29.4% $70.5 28.5% 1.7% 8.1% Total $246.0 100
Slide 6: Fiscal 3Q 2024 NSE Business Highlights
Fiscal 3Q 2024 NSE Business Highlights (Amounts in millions and other than revenue reflect non-GAAP) ▪ NSE revenue at $169.8 million was below the guidance range of $173-$179 million. ▪ Operating margin at (1.8%) was below the guidance range of 0.0%-3.0%. NE Segment Highlights ▪ Revenue at $151.7 mi
Slide 7: Fiscal 3Q 2024 OSP Business Highlights
Fiscal 3Q 2024 OSP Business Highlights (Amounts in millions and other than revenue reflect non-GAAP) ▪ Revenue at $76.2 million, exceeded the guidance range of $72-$74 million and was an increase of 8.1% Y/Y. ▪ Gross margin at 50.1% decreased 50 basis points Y/Y due to a reversal of variable incenti
Slide 8: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F3Q 2024 Total Cash Balance (1) $486.1 Long-term Debt (Carrying Value) (2) $634.4 GAAP Cash from Operations $19.5 (1) Includes cash and cash-equivalents, short-term investments and restricted cash. (2) Carrying value equals outstanding principal amount
Slide 9: Term Notes Summary
Term Notes Summary 2026 Convertible 2029 High-Yield Notes 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 $13.19 N/A Shares Unde
Slide 10: Fiscal 4Q 2024 Guidance
Fiscal 4Q 2024 Guidance (Amounts other than revenue reflect non-GAAP) We expect fourth quarter revenue to be approximately $246 million to $258 million, non-GAAP operating margin to be 9.5% to 11.8% and non-GAAP EPS to be $0.06 to $0.08. ▪ Business segment revenue guidance: • For NSE, we expect reve
Slide 11: Investor Events - F4Q24
Investor Events - F4Q24 Date Event Forum Jun. 04, 2024 Stifel 2024 Cross Sector Insight Conference Boston, MA Jun. 12, 2024 Rosenblatt’s 4th Annual Technology Summit Virtual Conference 10
Slide 12: Appendix
Appendix 11
Slide 13: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q323 Q423 Q124 Q224 Q324 Non-GAAP Income Statement Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 ($ in millions, except per share amounts) Net revenue $ 247.8 $ 263.6 $ 247.9 $ 254.5 $ 246.0 Cost of revenues 99.8 110
Slide 14: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q323 Q423 Q124 Q224 Q324 Gross Profit - GAAP to Non-GAAP Reconciliation Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 ($ in millions, except per share amounts) GAAP segment gross profit $ 141.0 $ 146.0 $ 144.4 $ 148
Slide 15: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q323 Q423 Q124 Q224 Q324 Segment Results ($ in millions) Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Net revenue: Network Enablement $ 151.9 $ 175.5 $ 150.0 $ 155.5 $ 151.7 Service Enablement 25.4 22.4 20.4 24.1 18.1 Network and Serv
Slide 16: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q323 Q423 Q124 Q224 Q324 GAAP Income Statement Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 ($ in millions, except per share amounts) Net revenue $ 247.8 $ 263.6 $ 247.9 $ 254.5 $ 246.0 Cost of revenues 100.9 111.7 100.
Slide 17: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q423 YTD Q324 YTD Balance Sheet (in millions) Jun 2023 Mar 2024 ASSETS Current assets: Cash and cash equivalents $ 506.5 $ 454.2 Short-term investments 14.6 28.4 Restricted cash 4.5 3.5 Accounts receivable, net 231.2 212.0 Inventories, net 116