VIAV
Viavi Solutions Inc.17.28
-0.60-3.36%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q2 '26
DC mix hits 45%; field tools boom
Q&A illuminated NSE's mix shift to 45% data center ecosystem from 40% last quarter, with service providers steady at under 40% and aerospace/defense at 15%, fueled by surging field instrument demand—now a third from hyperscalers monitoring every fiber strand for AI data centers. Management detailed hyperscalers' push for resilient networks, pressuring service providers, plus emerging PNT timing needs in data centers. Restructuring targets slower segments for $30M savings, with reinvestment eyed for data center and A&D growth. Data centers demand pristine fiber. No walk-backs; executives confidently affirmed Q3 guide amid counter-seasonal strength, what investors will track next is mix durability and savings deployment.
Key Stats
Market Cap
3.86BP/E (TTM)
288.00Basic EPS (TTM)
0.06Dividend Yield
0%Recent Filings
10-Q
Q2 FY2026 results
Viavi's Q2 FY2026 revenue jumped 36% y/y to $369.3M (derived), with NSE up 46% y/y to $291.5M on Spirent HSE/CE acquisition closed Oct 2025 for $399.3M cash (recognizing $111.3M goodwill, $314.2M intangibles over 2-9 years) and Inertial Labs, while gross margin slipped to 57.0% from amortization. Operating income fell to $11.4M from $22.2M y/y on higher R&D/SG&A, but cash swelled to $765.5M on $73.5M OCF minus $14.1M capex (FCF $59.4M derived); debt climbed to $1,275.1M including $600M Term Loan B at 6.39% due 2032, with $183.7M revolver availability. Net loss of $48.1M vs $9.1M profit swung on $38.7M convertible note extinguishment—far exceeding $11.4M operating income—plus taxes/interest. Acquisitions fuel NSE momentum. Geopolitical tensions risk supply chains.
8-K
Q2 revenue surges 36%; restructuring
Viavi reported Q2 FY2026 preliminary results with net revenue of $369.3 million, up 36.4% year-over-year, yet GAAP net loss of $48.1 million due to acquisition costs and debt extinguishment. It approved a restructuring plan on January 23, 2026, cutting 5% of workforce for $32 million charges but targeting $30 million annualized savings by year-end. Momentum persists. Q3 guidance: $386-400 million revenue.
8-K
Exchanges notes for shares
Viavi Solutions entered exchange agreements on December 15, 2025, to swap $103.463 million of its 1.625% Convertible Senior Notes due 2026 for 7,871,043 shares at $17.88 each. Closing expected December 22 leaves $49.037 million notes outstanding. No cash proceeds, yet it enables prepaying at least $100 million of the October 2025 term loan over 12 months. Debt shrinks nicely.
8-K
Officer exculpation approved
Viavi Solutions stockholders approved an Amended and Restated Certificate of Incorporation on November 12, 2025, adding officer exculpation as permitted by Delaware law; it became effective November 13 upon filing. All nine directors were reelected with strong support, PwC ratified as auditors, and equity plan and exec pay amendments passed. Shields officers from certain liabilities. Routine governance wins.
10-Q
Q1 FY2026 results
Viavi Solutions posted Q1 FY2026 revenue of $299.1M, up 25.6% y/y from $238.2M and ~13% q/q (derived) from Q4 FY2025's $265.7M (derived from balance sheet growth). Product revenue surged 30.3% y/y to $257.4M, driven by NSE's 35.5% y/y growth to $216.0M from lab/production and aerospace/defense demand plus $18.7M from the Jan 2025 Inertial Labs acquisition ($134.4M cash + up to $175M contingent; $270.6M consideration, $130.3M goodwill, $117.6M finite-lived intangibles over 2-7 years), while OSP edged up 5.5% y/y to $83.1M. Gross margin dipped 0.6pp y/y to 56.5%; operating income fell to $7.6M from $11.5M on higher SG&A from contingent consideration fair value changes, yet OCF jumped to $31.0M from $13.5M and FCF (derived) to $22.5M from $6.2M. Cash rose to $543.8M; total debt was $791.6M (short-term $151.1M 2026 Notes, long-term $640.5M including $250M new 2031 Notes), with $181M revolver availability. Issued $250M 0.625% 2031 Notes, exchanged $97.5M 2026 Notes, repurchased $30M stock. EPS reconciles ($21.4M loss / 222.9M shares = -$0.10). Competition from Asia-based rivals pressures NSE pricing.
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