VIAVI ANNOUNCES FISCAL FOURTH QUARTER AND FISCAL YEAR 2024 RESULTS

Fourth Quarter

• Web earnings of $252.0 million, i’m sick $11.6 million or 4.4% year-over-year
• GAAP working margin of (2.3)%, i’m sick 680 bps year-over-year
• Non-GAAP working margin of 10.9%, i’m sick 80 bps year-over-year
• GAAP Profits in line with proportion (EPS) of $(0.10), i’m sick $0.10 year-over-year
• Non-GAAP diluted EPS of $0.08, i’m sick $0.02 or 20.0% year-over-year

Fiscal 2024

• Web earnings of $1.0 billion, i’m sick $105.7 million or 9.6% year-over-year
• GAAP working margin of two.1%, i’m sick 530 bps year-over-year
• Non-GAAP working margin of eleven.5%, i’m sick 410 bps year-over-year
• GAAP EPS of $(0.12), i’m sick 0.23 or 209.1% year-over-year
• Non-GAAP diluted EPS of $0.33, i’m sick $0.22 or 40.0% year-over-year

CHANDLER, Ariz., Aug. 8, 2024 /PRNewswire/ — VIAVI (NASDAQ: VIAV) these days reported effects for its fourth quarter and financial 12 months ended June 29, 2024.

Fourth quarter of fiscal 2024 internet earnings was once $252.0 million. GAAP internet loss was once $(21.7) million, or $(0.10) in line with proportion. Non-GAAP internet source of revenue was once $17.1 million, or $0.08 in line with proportion.

3rd quarter of fiscal 2024 internet earnings was once $246.0 million. GAAP internet loss was once $(24.6) million, or $(0.11) in line with proportion. Non-GAAP internet source of revenue was once $13.2 million, or $0.06 in line with proportion.

Fourth quarter of fiscal 2023 internet earnings was once $263.6 million. GAAP internet loss was once $(0.1) million, or $— in line with proportion. Non-GAAP internet source of revenue was once $22.7 million, or $0.10 in line with proportion.

“Fiscal 2024 was a challenging year for VIAVI, as the end market spend environment continued to be anemic throughout the year. For the fourth quarter, our revenue came at the mid-point of our guidance, with slightly stronger OSP revenues offsetting softer NSE demand. We believe the decline in NSE demand is bottoming out and expect to see gradual recovery in the second half of fiscal 2025,” mentioned Oleg Khaykin, VIAVI’s President and Govt Officer.

Monetary Evaluate:

The tables underneath (in tens of millions, excluding proportion, and in line with proportion knowledge) serve comparisons of quarterly effects to prior classes, together with sequential quarterly and year-over-year adjustments. A complete reconciliation between the GAAP and non-GAAP measures incorporated within the tables is contained on this leave underneath the category titled “Use of Non-GAAP (Adjusted) Financial Measures.”

• Americas, Asia-Pacific and EMEA consumers represented 39.2%, 36.3% and 24.5%, respectively, of general internet earnings for the quarter ended June 29, 2024.
• As of June 29, 2024, the Corporate held $496.2 million in general coins, momentary investments and momentary limited coins.
• As of June 29, 2024, the Corporate had $250 million combination fundamental quantity of one.625% Senior Convertible Notes and $400 million combination fundamental quantity of three.75% Senior Notes with a complete internet sporting worth of $636.0 million.
• All through the fiscal quarter and financial 12 months ended June 29, 2024, the Corporate generated $26.2 million and $116.4 million, respectively, of money flows from operations.

Restructuring Plan

On June 13, 2024, the Corporate authorized a restructuring and group of workers aid plan (the “Fiscal 2024 Plan”) throughout numerous purposes supposed to toughen operational efficiencies and higher align the Corporate’s group of workers with up-to-date industry wishes. The Corporate expects roughly 6% of its international group of workers to be affected and estimates it is going to incur severance and termination advantages fees of roughly $15 million. The Corporate anticipates the Fiscal 2024 Plan to lead to roughly $25 million in annualized value financial savings and to be considerably entire by way of the tip of fiscal 2025.

Industry Outlook for the First Quarter of Fiscal 2025

For the primary quarter of fiscal 2025 finishing September 28, 2024, the Corporate expects internet earnings to be between $235 million to $245 million and non-GAAP EPS to be between $0.05 to $0.07.

With recognize to our expectancies above, the Corporate has no longer reconciled GAAP internet loss in line with proportion to non-GAAP EPS on this press leave as a result of it’s not able to serve a significant or correct estimate of sure reconciling pieces described within the “Use of Non-GAAP (Adjusted) Financial Measures” category underneath and the tips isn’t to be had with out unreasonable try because of the inherent issue of forecasting the timing and/or quantities of sure pieces, together with sure fees linked to restructuring, acquisition, integration and linked fees. As well as, the Corporate believes such reconciliations would suggest some extent of precision that can be complicated or deceptive to buyers.

Convention Name

The Corporate will talk about those effects and alternative linked issues at 1:30 p.m. Pacific Presen on August 8, 2024 in a reside webcast, which can be archived for replay at the Corporate’s site at https://investor.viavisolutions.com. The Corporate will put up additional slides outlining the Corporate’s fresh monetary effects on https://investor.viavisolutions.com underneath the “Quarterly Results” category at the same time as with this profits press leave. This press leave is being furnished as a Wave Record on Method 8-Okay with the Securities and Trade Fee, and shall be to be had at www.sec.gov. 

About VIAVI Answers

VIAVI (NASDAQ: VIAV) is a world supplier of community take a look at, tracking and oath answers for telecommunications, cloud, enterprises, first responders, army, aerospace and railway. VIAVI may be a pacesetter in shiny control applied sciences for 3-D sensing, anti-counterfeiting, client electronics, business, car, govt and aerospace programs.

Be told extra about VIAVI at www.viavisolutions.com. Practice us on VIAVI Views, LinkedIn and YouTube.

Ahead-Taking a look Statements

This press leave incorporates forward-looking statements throughout the which means of Category 27A of the Securities Occupation of 1933 and Category 21E of the Securities Trade Occupation of 1934. Those statements come with any expectation, probability or steering as to past monetary efficiency, together with past earnings, rude margin, working expense, working margin, profitability goals, coins stream and alternative monetary metrics, in addition to the affect and length of sure developments and marketplace place and statuses, together with marketplace stabilization and healing. Those forward-looking statements contain dangers and uncertainties that would motive latest effects to vary materially from the ones projected. Particularly, the Corporate’s talent to expect past monetary efficiency remains to be tricky because of, amongst alternative issues: (a) proceeding normal restricted visibility throughout lots of our product traces; (b) quarter-over-quarter product combine fluctuations, which will materially affect profitability measures because of the vast rude margin levels throughout our portfolio; (c) consolidations in our business and buyer bottom; (d) aggressive pressures; (e) unexpected adjustments or deceleration within the call for for up-to-date and unused merchandise, applied sciences, services and products, delays or unexpected occasions within the roll-out of unused business platforms or evolving era reminiscent of 3-D sensing and buyer buying delays because of macroeconomic statuses, tightening of expenditures or as they assess or transition to such unused applied sciences and/or architectures, all of which restrict near-term call for visibility, and may negatively affect doable earnings; (f) persevered subside of reasonable promoting costs throughout our companies; (g) noteceable seasonality and an important degree of in-quarter book-and-ship industry; (h) numerous product and production transfers, website consolidations, product discontinuances and restructuring and group of workers aid plans, together with expected value financial savings related to such plans; (i) demanding situations in execution of industrial technique; (j) demanding situations integrating the companies  the Corporate has bought and knowing the entire anticipated advantages and financial savings; (okay) provide chain and fabrics constraints and the facility of our providers and assurance producers to satisfy manufacturing and supply necessities to our forecasted call for; (l) doable disruptions or delays to our production and operations because of surrounding statuses and herbal screw ups within the areas the place we perform, reminiscent of wildfires, drought statuses and linked aqua shortages in Arizona, in addition to wildfires in Northern California and linked blackouts and gear outages in that area; (m) the unsure and ongoing affect to our provide chain of army conflicts, reminiscent of the continuing warfare between Russia and Ukraine and the armed warfare between Israel and Hamas, price lists, sanctions and alternative industry measures imposed by way of home and overseas governments, hostile movements and escalating tensions with overseas governments, together with China, and the potential of escalation of “trade wars,” cyber-attacks, and retaliatory measures; (n) the affect of infectious problem outbreaks, epidemics, and pandemics on our monetary effects, revenues, buyer call for, industry operations and production and at the industry operations of our consumers, assurance producers and providers; and (o) inherent unsureness linked to international markets, together with inflationary pressures, recessions, tightening financial coverage and liquidity, and the impact of such markets on call for for our merchandise. Those forward-looking statements contain dangers and uncertainties that would motive latest effects to vary materially from the ones projected. For more info at the dangers and uncertainties related to the Corporate’s industry, please please see the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” categories of the Corporate’s filings with the Securities and Trade Fee, together with, however no longer restricted to, its annual document on Method 10-Okay and quarterly studies on Method 10-Q. The forward-looking statements contained on this press leave are made as of the while thereof and the Corporate assumes incorrect legal responsibility to replace such statements. We’ve no longer filed our Method 10-Okay for the 12 months ended June 29, 2024. Consequently, all monetary effects described on this profits leave will have to be regarded as initial, and are topic to switch to replicate any vital changes or adjustments in accounting estimates, which are recognized previous to the date we record the Method 10-Okay.

Touch Data

Buyers:
Vibhuti Nayar
408-404-6305
[email protected] 

Press:
Amit Malhotra
202-341-8624
[email protected] 

Refer to monetary tables are introduced based on GAAP, except in a different way specified.

-SELECTED PRELIMINARY FINANCIAL DATA –

Importance of Non-GAAP (Adjusted) Monetary Measures

The Corporate supplies non-GAAP rude margin, non-GAAP working margin, non-GAAP internet source of revenue, non-GAAP EPS, EBITDA and altered EBITDA monetary measures as supplemental data in regards to the Corporate’s operational efficiency. The Corporate makes use of the measures disclosed on this leave to guage the Corporate’s historic and potential monetary efficiency, in addition to its efficiency relative to its competition. Particularly, control makes use of these things to additional its personal figuring out of the Corporate’s core working efficiency, which the Corporate believes constitute its efficiency within the common, ongoing and common process its operations. Accordingly, control excludes from core working efficiency pieces reminiscent of the ones in terms of sure acquire value accounting changes, amortization of acquisition-related intangibles, stock-based repayment, felony settlements, restructuring, adjustments in truthful worth of contingent attention liabilities and sure making an investment and acquisition linked bills and alternative actions that control believes don’t seem to be reflective of such common, ongoing and core working actions.

The Corporate believes offering this backup data lets in buyers to look Corporate effects during the perceptible of control. The Corporate additional believes that offering this knowledge lets in buyers to higher perceive the Corporate’s monetary efficiency and, importantly, to guage the efficacy of the method and knowledge old by way of control to guage and measure such efficiency.

The non-GAAP changes described on this leave are excluded by way of the Corporate from its GAAP monetary measures since the Corporate believes except for these things allows buyers to guage extra obviously and persistently the Corporate’s core operational efficiency. The non-GAAP changes are defined underneath.

Price of revenues, prices of analysis and building and prices of marketing, normal and administrative: The Corporate’s GAAP presentation of rude margin and working bills might come with (i) backup depreciation and amortization from adjustments in estimated helpful moment and the write-down of sure quality, apparatus and intangibles which were recognized for disposal however remained in significance till the while of disposal, (ii) fees reminiscent of severance, advantages and outplacement prices linked to restructuring plans, (iii) prices for amenities no longer required for ongoing operations, and prices linked to the relocation of sure apparatus from those amenities and/or assurance producer amenities, (iv) stock-based repayment, (v) amortization expense linked to bought intangibles, (vi) adjustments in truthful worth of contingent attention liabilities and (vii) alternative fees unrelated to our core working efficiency comprised principally of acquisition linked transaction prices, integration prices linked to bought entities, litigation and felony settlements and alternative prices and contingencies unrelated to up-to-date and past operations, together with transformational projects reminiscent of the implementation of simplified computerized processes, website consolidations, and reorganizations. The Corporate excludes these things in calculating non-GAAP rude margin, non-GAAP working margin, non-GAAP internet source of revenue, non-GAAP EPS, EBITDA and altered EBITDA.

Non-cash pastime expense and alternative expense: The Corporate excludes sure making an investment bills, together with accretion of debt cut price, and alternative non-cash actions that control believes don’t seem to be reflective of such common, ongoing and core working actions, when calculating non-GAAP internet source of revenue and non-GAAP EPS.

Source of revenue tax expense or receive advantages: The Corporate excludes sure non-cash tax expense or receive advantages pieces, such because the usage of internet working losses the place valuation allowances have been exempted, intra-period tax allocation receive advantages and the tax impact for amortization of non-tax deductible intangible belongings, when calculating non-GAAP internet source of revenue and non-GAAP EPS.

Hobby, taxes, depreciation, amortization and alternative changes: The Corporate’s EBITDA calculation basically excludes pastime source of revenue and alternative source of revenue (expense), pastime expense, taxes, depreciation and amortization, and alternative pieces that don’t seem to be a part of its core working efficiency described above. The Corporate’s adjusted EBITDA excludes pieces along with the pieces excluded from the EBITDA calculation, reminiscent of stock-based repayment, restructuring, achieve or loss on sale of to be had for-sale investments, adjustments in truthful worth of contingent attention liabilities bobbing up from prior acquisitions and alternative fees linked to actions that don’t seem to be a part of its core working efficiency described above. Control believes adjusted EBITDA is a useful indicator of the Corporate’s core operational coins stream.

Non-GAAP monetary measures don’t seem to be based on, preferable to, or an spare for, in most cases approved accounting ideas in the US. The GAAP measure maximum without delay related to non-GAAP internet source of revenue is internet source of revenue. The GAAP measure maximum without delay related to non-GAAP EPS is internet source of revenue in line with proportion. The Corporate believes those GAAP measures lonely don’t seem to be absolutely indicative of its core working bills and function and that offering non-GAAP monetary measures along side GAAP measures supplies worthy supplemental data in regards to the Corporate’s total efficiency.

SOURCE VIAVI Financials