On August 8, 2024, Viavi Solutions Inc (VIAV, Financial) released its 8-K filing for the fourth quarter and fiscal year ended June 29, 2024. Viavi Solutions Inc. is a global provider of network test, monitoring, and assurance solutions to various industries, including communications service providers, enterprises, and government sectors. The company also offers high-performance thin-film optical coatings for diverse markets such as anti-counterfeiting, 3D sensing, and automotive.
Quarterly Performance Overview
For the fourth quarter of fiscal 2024, Viavi Solutions Inc (VIAV, Financial) reported net revenue of $252.0 million, a 4.4% decrease year-over-year. The company posted a GAAP operating margin of -2.3%, down 680 basis points from the previous year. Non-GAAP operating margin stood at 10.9%, a slight decline of 80 basis points year-over-year. GAAP earnings per share (EPS) were $(0.10), while non-GAAP diluted EPS came in at $0.08, down 20.0% from the same period last year.
Fiscal Year 2024 Highlights
For the full fiscal year 2024, Viavi Solutions Inc (VIAV, Financial) reported net revenue of $1.0 billion, a 9.6% decline from the previous year. The GAAP operating margin was 2.1%, down 530 basis points year-over-year, while the non-GAAP operating margin was 11.5%, down 410 basis points. GAAP EPS was $(0.12), a significant drop of 209.1% year-over-year, and non-GAAP diluted EPS was $0.33, down 40.0%.
Segment Performance
| Segment | Q4 FY 2024 | Q3 FY 2024 | Q4 FY 2023 | Q/Q Change | Y/Y Change |
|---|---|---|---|---|---|
| Network Enablement | $158.5 million | $151.7 million | $175.5 million | 4.5% | -9.7% |
| Service Enablement | $23.7 million | $18.1 million | $22.4 million | 30.9% | 5.8% |
| Optical Security and Performance Products | $69.8 million | $76.2 million | $65.7 million | -8.4% | 6.2% |
Financial Metrics and Cash Flow
Viavi Solutions Inc (VIAV, Financial) reported a gross margin of 57.6% for fiscal year 2024, slightly down from 57.8% in the previous year. The company held $496.2 million in total cash, short-term investments, and short-term restricted cash as of June 29, 2024. Additionally, the company generated $116.4 million in cash flows from operations during the fiscal year.
Challenges and Restructuring
Viavi Solutions Inc (VIAV, Financial) faced a challenging market environment throughout fiscal 2024, with anemic end-market spending impacting performance. The company has initiated a restructuring and workforce reduction plan, expected to affect approximately 6% of its global workforce, aiming for $25 million in annualized cost savings by the end of fiscal 2025.
“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,” said Oleg Khaykin, VIAVI's President and Chief Executive Officer.
Outlook for Q1 Fiscal 2025
Looking ahead, Viavi Solutions Inc (VIAV, Financial) expects net revenue for the first quarter of fiscal 2025 to be between $235 million and $245 million, with non-GAAP EPS projected to be between $0.05 and $0.07.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Viavi Solutions Inc for further details.
