Viavi Solutions Inc. · NASDAQ:VIAV
Viavi Solutions — Q3 2023 Earnings Presentation
18 slides from Viavi Solutions's earnings presentation, May 2, 2023
Slide 1: Fiscal 3Q 2023 Earnings Call Supplementary Slides
Fiscal 3Q 2023 Earnings Call Supplementary Slides May 2, 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 3Q 2023 Financial Highlights
Fiscal 3Q 2023 Financial Highlights (Amounts reflect non-GAAP and in $millions, except per share amounts) Result Y/Y Performance GAAP Revenue $247.8 down (21.5)% Non-GAAP Gross Margin 59.7% down (230) basis points NE 62.0% down (180) basis points SE 70.4% up 130 basis points OSP 50.6% down (490) bas
Slide 4: Income Statement
Income Statement (Amounts reflect non-GAAP and in $millions, except per share amounts) F3Q 2023 F2Q 2023 F3Q 2022 QoQ YoY GAAP Revenue $247.8 $284.5 $315.5 (12.9%) (21.5%) Non-GAAP Gross Margin 59.7% 61.1% 62.0% (140) bps (230) bps Non-GAAP Operating Expenses $119.7 $127.9 $127.9 (6.4%) (6.4%) Non-G
Slide 5: GAAP Revenue by Business Segment and Geographic Region
GAAP Revenue by Business Segment and Geographic Region (Amounts in $millions) F3Q 2023 F2Q 2023 F3Q 2022 QoQ YoY Segment Mix NE $149.6 60.3% $179.7 63.2% $204.3 64.8% (16.8%) (26.8%) SE $27.7 11.2% $27.4 9.6% $26.5 8.4% 1.1% 4.5% OSP $70.5 28.5% $77.4 27.2% $84.7 26.8% (8.9%) (16.8%) Total $247.8 10
Slide 6: Business Segment Results
Business Segment Results (Amounts in $millions) F3Q 2023 F2Q 2023 F3Q 2022 QoQ YoY GAAP Revenue NE $149.6 $179.7 $204.3 (16.8%) (26.8%) SE $27.7 $27.4 $26.5 1.1% 4.5% OSP $70.5 $77.4 $84.7 (8.9%) (16.8%) Total $247.8 $284.5 $315.5 (12.9%) (21.5%) Non-GAAP Gross Margin NE 62.0% 64.1% 63.8% (210 bps)
Slide 7: Fiscal 3Q 2023 NSE Business Highlights
Fiscal 3Q 2023 NSE Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ NSE revenue at $177.3 million was below the initial guidance range ($189-$205 million) due to higher than expected pullback in demand for Lab products. ▪ Operating margin at 1.4% below the initial guidance range (7.
Slide 8: Fiscal 3Q 2023 OSP Business Highlights
Fiscal 3Q 2023 OSP Business Highlights (Amounts reflect non-GAAP and in $millions) ▪ Revenue at $70.5 million, was above the midpoint of the initial guidance range ($67-$71 million) although, was a decrease of 16.8% Y/Y due to lower Anti-Counterfeiting and 3D Sensing product sales. ▪ Non-GAAP Gross
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights (Amounts in $millions) F3Q 2023 Total Cash Balance (1) $586.6 Short-term Debt (Carrying Value) (2) $164.2 Long-term Debt (Carrying Value) (2) $627.9 GAAP Cash from Operations $17.8 (1) Includes cash and cash-equivalents, short-term investments and restricted cash. (2) Carryi
Slide 10: Term Notes Summary
Term Notes Summary 2023 Convertible 2024 Convertible 2026 Convertible 2029 High-Yield Notes Notes Notes Notes Issue Size $225.0M $460.0M $250.0M $400.0M Current Outstanding * $68.1M $96.4M $250.0M $400.0M Coupon 1.75% 1.00% 1.625% 3.75% Final Maturity 6/1/2023 3/1/2024 3/15/2026 10/1/2029 Put Date N
Slide 11: Fiscal 4Q 2023 Guidance
Fiscal 4Q 2023 Guidance (Amounts reflect non-GAAP) We expect fourth quarter revenue to be approximately $242 million to $262 million, non-GAAP operating margin to be 10.0% to 12.4% and non-GAAP EPS to be $0.07 to $0.09. ▪ Business segment revenue guidance: • For NSE, we expect revenue to be $179 mil
Slide 12: Investor Events - F4Q23
Investor Events - F4Q23 Date Event Forum June 08, 2023 Rosenblatt’s Virtual Tech Summit Virtual Conference 12
Slide 13: Appendix
VIAVI Appendix
Slide 14: Non-GAAP Income Statement
Non-GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q322 Q422 Q123 Q223 Q323 Non-GAAP Income Statement Mar 2022 Jun 2022 Sep 2022 Dec 2022 Apr 2023 ($ in millions, except per share amounts) Net revenue $ 315.5 $ 335.3 $ 310.2 $ 284.5 $ 247.8 Cost of revenues 119.9 12
Slide 15: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (Amounts in $millions) Unaudited Q322 Q422 Q123 Q223 Q323 Gross Profit - GAAP to Non-GAAP Reconciliation Mar 2022 Jun 2022 Sep 2022 Dec 2022 Apr 2023 ($ in millions, except per share amounts) GAAP segment gross profit $ 186.9 $ 201.1 $ 184.8 $ 167
Slide 16: Financial Information by Segment
Financial Information by Segment (Amounts in $millions) Unaudited Q322 Q422 Q123 Q223 Q323 Segment Results ($ in millions) Mar 2022 Jun 2022 Sep 2022 Dec 2022 Apr 2023 Net revenue: Network Enablement $ 204.3 $ 222.2 $ 194.9 $ 179.7 $ 149.6 Service Enablement 26.5 24.0 24.0 27.4 27.7 Network and Serv
Slide 17: GAAP Income Statement
GAAP Income Statement (Amounts in $millions, except per share amounts) Unaudited Q322 Q422 Q123 Q223 Q323 GAAP Income Statement Mar 2022 Jun 2022 Sep 2022 Dec 2022 Apr 2023 ($ in millions, except per share amounts) Net revenue $ 315.5 $ 335.3 $ 310.2 $ 284.5 $ 247.8 Cost of revenues 121.2 126.9 118.
Slide 18: Condensed Balance Sheet
Condensed Balance Sheet (Amounts in $millions) Unaudited Q422 YTD Q323 YTD Balance Sheet (in millions) Jun 2022 Apr 2023 ASSETS Current assets: Cash and cash equivalents $ 559.9 $ 580.6 Short-term investments 1.4 1.5 Restricted cash 3.6 4.5 Accounts receivable, net 260.9 220.1 Inventories, net 110.1