Core Insights - Viavi Solutions Inc. (NASDAQ:VIAV) experienced a significant stock performance, soaring by 30.17% week-on-week, attributed to a corporate restructuring initiative aimed at achieving $30 million in annual cost savings [1] - The stock reached a peak of $24.99, its highest in over two decades, before closing at $24.46, down 0.97% on the day [2] - The restructuring will involve layoffs of approximately 15% of the workforce, facility rationalization, and asset write-offs, with an expected charge of $32 million for severance payments [3] Financial Performance - In Q2 ending December 2025, Viavi Solutions reported a net loss of $48.1 million, a reversal from a net income of $9.1 million in the same quarter the previous year, despite a 36% increase in net revenues to $369.3 million [4] - For the six-month period, the net loss was $69.5 million, compared to a net income of $7.3 million in the same period last year, with revenues increasing by 31% to $668.4 million [5] Restructuring Timeline - The restructuring initiative is expected to be completed by June 2026 [3]

Core Insights - The article does not provide any specific information or insights regarding a company or industry [1] Summary by Categories - No relevant content available for summarization [1]

Group 1 - Viavi Solutions Inc. experienced a significant stock price increase, reaching a record high not seen in over two decades, driven by a new corporate restructuring initiative expected to yield annual savings of $30 million [1][3] - During intra-day trading, the stock peaked at $24.95 before closing at $24.70, reflecting a 17.45 percent increase [2] - The company announced a 5 percent reduction in its global workforce, facility rationalization, and asset write-offs to enhance operational efficiencies, with an anticipated expenditure of $32 million for severance payments [3] Group 2 - In the second quarter ending December 2025, Viavi Solutions reported a net loss of $48.1 million, a decline from a net income of $9.1 million in the same period the previous year, despite a 36 percent increase in net revenues to $369.3 million [4] - For the six-month period, the net loss totaled $69.5 million, reversing a net income of $7.3 million from the comparable semester, with revenues rising by 31 percent to $668.4 million [4]

Financial Performance - Net revenue for the second quarter of fiscal 2026 was $369.3 million, an increase of $98.5 million or 36.4% year-over-year[207] - GAAP net loss was $48.1 million, a decrease of $57.2 million or 628.6% year-over-year[207] - Non-GAAP net income reached $51.5 million, up $22.1 million or 75.2% year-over-year[207] - Non-GAAP diluted EPS was $0.22, an increase of $0.09 or 69.2% year-over-year[207] - Total net revenue increased by $98.5 million, or 36.4%, for the three months ended December 27, 2025, compared to the same period a year ago[218] - Total net revenue increased by $159.4 million, or 31.3%, for the six months ended December 27, 2025, compared to the same period a year ago[219] - Product revenues increased by $91.6 million, or 40.6%, for the three months ended December 27, 2025, driven by volume increases in NSE and OSP[220] - Product revenues increased by $151.5 million, or 35.8%, for the six months ended December 27, 2025, driven by volume increases in NSE and OSP[221] - Service revenues increased by $6.9 million, or 15.3%, for the three months ended December 27, 2025, driven by a volume increase in NSE[222] - Service revenues increased by $7.9 million, or 9.2%, for the six months ended December 27, 2025, driven by a volume increase in NSE[223] Acquisitions and Contributions - The acquisition of Spirent Communications contributed net revenues of $43.0 million, while Inertial Labs added $21.1 million[202] - The acquisitions of Spirent's HSE and CE business and Inertial Labs contributed $43.0 million and $21.1 million, respectively, during the three months ended December 27, 2025[218] Margins and Expenses - GAAP operating margin was 3.1%, down 510 basis points year-over-year, while non-GAAP operating margin improved to 19.3%, up 440 basis points[207] - Gross margin decreased by 2.4 percentage points to 57.0% for the three months ended December 27, 2025, primarily due to increased amortization of intangibles[230] - Research and Development (R&D) expense increased by $13.8 million, or 26.5%, during the three months ended December 27, 2025, driven by costs from recent acquisitions[233] - Selling, General and Administrative (SG&A) expense rose by $42.8 million, or 50.8%, during the three months ended December 27, 2025, largely due to acquisition-related costs[236] - Amortization of acquired technologies increased by $9.2 million, or 278.8%, during the three months ended December 27, 2025, due to intangibles from recent acquisitions[229] Future Outlook - The company expects continued growth in the NSE segment driven by end market demand and acquisitions[204] - The company plans to invest in secular trends to drive growth and expand its total addressable market (TAM)[206] - The company expects to face industry and market risks, including uncertainty around customer procurement decisions and the adoption of 5G technology[224] - Pricing pressures and competition from Asia-based competitors may affect revenues and profitability[225] Cash Flow and Financing - Cash provided by operating activities was $73.5 million, with a net loss of $69.5 million adjusted for non-cash charges totaling $162.9 million[274] - Cash used in investing activities totaled $412.6 million, primarily for the acquisition of Spirent's HSE and CE business[275] - Cash provided by financing activities was $680.6 million, mainly from a $600 million Term Loan B issuance[276] Pension and Liabilities - The pension plans in the U.K. and India are fully funded, while the German plans are unfunded, resulting in an under-funding of $50.9 million as of December 27, 2025[282] - The fair value of pension plan assets increased approximately 1.2% since June 28, 2025[282] - A 50-basis point change in the discount rate would result in a corresponding increase or decrease in the post-retirement benefit obligation (PBO) of approximately $4.0 million[288] - The company is responsible for a non-pension post-retirement benefit obligation of $0.3 million from a past acquisition[283] - The fair value of contingent purchase consideration liabilities is remeasured at each reporting period, with significant judgment involved in the estimates[287] Market and Geographic Information - The company operates in three geographic regions: Americas, Asia-Pacific, and EMEA, with net revenue assigned to the region where products are initially shipped[226] - Net revenue from customers outside the Americas represented 53.7% of total net revenue during the three months ended December 27, 2025, compared to 57.1% in the same period of the previous year[227] Risk Management - The company's market risk related to foreign exchange and interest rates has not changed materially since the last annual report[289] - The accounting estimates used in the financial statements are based on historical experience and reasonable assumptions, but actual results may differ materially[286] - Recent accounting pronouncements may affect the consolidated financial statements, as detailed in the relevant note[285]

Core Insights - Viavi Solutions Inc. (VIAV) reported strong second-quarter fiscal 2026 results, with both revenue and net income exceeding the Zacks Consensus Estimate [1] Financial Performance - The company achieved a 36.4% year-over-year increase in revenues, reaching $369.3 million, driven by strong performance in the Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments [2][6] - The NSE segment generated $291.5 million in revenues, up 45.8% year over year, accounting for 78.9% of total revenues [7] - The OSP segment revenues were $77.8 million, reflecting a 9.7% year-over-year increase [7] - On a GAAP basis, Viavi incurred a net loss of $48.1 million or 21 cents per share, compared to a net income of $9.1 million or 4 cents per share in the prior year [3] - Non-GAAP net income was $51.5 million or 22 cents per share, surpassing the Zacks Consensus Estimate of 19 cents [3] Revenue Breakdown - Net sales from the Americas totaled $170.9 million, up from $116.1 million in the year-ago quarter [9] - Revenues from Asia-Pacific were $108.1 million, a 15.5% increase year over year [9] - Revenues from EMEA increased to $90.3 million from $61.1 million in the prior-year quarter [9] Profitability Metrics - Non-GAAP gross profit was $228.1 million, with a margin of 61.8%, compared to $165.4 million and a margin of 61.1% in the year-ago quarter [10] - Non-GAAP operating income was $71.4 million, up from $40.4 million in the prior-year quarter [10] Cash Flow and Liquidity - As of December 27, 2025, the company had $765.5 million in cash and cash equivalents and $1.22 billion in long-term debt [11] - The company generated $42.5 million in net cash from operating activities, with a free cash flow of $36.9 million [11] Future Outlook - For the third quarter of fiscal 2026, management expects revenues in the range of $386-$400 million, with non-GAAP earnings per share projected between 22 cents and 24 cents [12] - The NSE segment revenues are projected to be between $304 million and $316 million, while the OSP segment is anticipated to generate revenues in the range of $82-$84 million [13]

Core Insights - VIAVI Solutions has launched the IRINS, a Low Earth Orbit (LEO)-aided inertial navigation system designed for full operation across land, air, and sea in denied, degraded, and disrupted space operating environments (D3SOE) [1][2] Group 1: Product Features - The IRINS integrates an inertial navigation system (INS), an altitude and heading reference system (AHRS), and a LEO PNT receiver, marking a significant advancement in VIAVI's assured Positioning, Navigation, and Timing (APNT) portfolio [1][4] - The system is designed to counter the increasing number of spoofing and jamming attacks affecting military and critical infrastructure, providing a resilient solution from a single vendor [2][3] - It combines capabilities to calculate altitude, position, velocity, and time data while minimizing bias to prevent drift, and includes a GNSS receiver with a Controlled Reception Pattern Antenna (CRPA) port for attack signal detection [4] Group 2: Strategic Importance - The IRINS represents VIAVI's strategy to mitigate vulnerabilities in positioning, navigation, and timing, integrating satellite-based timing with tactical-grade inertial measurement units (IMUs) for precise PNT in GNSS-denied environments [5] - Assured access to PNT is emphasized as critical for operations in contested environments, with the integration of Iridium PNT alongside VIAVI's INS and AHRS providing a resilient source of time and location data [5] Group 3: Technical Specifications - The IRINS is certified for IP67 and MIL-STD-810G environmental requirements, featuring a tactical-grade MEMS 3-axis accelerometer, gyroscope, and clock, along with embedded barometers and magnetometers [5] - The compact design measures 126.5 × 49.3 × 53.3 mm, housing all capabilities within a single enclosure [5]

Core Insights - Viavi Solutions reported strong fiscal second-quarter 2026 results, with net revenue of $369.3 million, which is at the high end of the company's guidance range, reflecting a 23.5% sequential increase and a 36.4% year-over-year growth [3][6] - The company experienced significant growth in its Network Service Enablement (NSE) segment, with revenue reaching $291.5 million, up 45.8% year-over-year, driven by acquisitions and strong demand in the data center ecosystem [5][6] - Viavi's non-GAAP operating margin improved to 19.3%, exceeding guidance and reflecting a 360 basis point increase from the prior quarter [2][6] Financial Performance - Revenue from Spirent was $43 million, slightly below expectations of $45 million to $55 million due to timing issues [1] - Non-GAAP earnings per share were $0.22, surpassing guidance of $0.18 to $0.20, and increased by $0.07 sequentially [2][6] - NSE gross margin was 64.7%, while operating margin improved to 15.6%, up from 8.7% in the same quarter last year [6] Balance Sheet and Cost Management - The company ended the quarter with $772.1 million in cash and short-term investments, an increase from $549.1 million in the previous quarter [9] - Viavi executed a restructuring plan impacting approximately 5% of its workforce, with expected annual savings of about $30 million [12] - The company exchanged about $100 million of convertible notes for shares and prepaid $100 million of its Term Loan B [10][11] Market Demand and Outlook - Demand from the data center ecosystem continues to drive growth, with management noting longer visibility in data center-related demand [13][14] - The company expects fiscal third-quarter 2026 revenue to be between $386 million and $400 million, with NSE revenue projected at $304 million to $316 million [15] - Viavi anticipates paying a $75 million earnout related to Inertial Labs in the third quarter due to strong performance [16]

分组1 - Viav Solutions reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing an increase from $0.13 per share a year ago, resulting in an earnings surprise of +15.79% [1] - The company achieved revenues of $369.3 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.81%, and up from $270.8 million in the same quarter last year [2] - Viav Solutions has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 16.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $356.95 million, and for the current fiscal year, it is $0.68 on revenues of $1.39 billion [7] - The Communication - Components industry, to which Viav Solutions belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Financial Data and Key Metrics Changes - Net revenue for Q2 was $369.3 million, at the high end of guidance, up 23.5% sequentially and 36.4% year-over-year [4] - Operating margin for Q2 was 19.3%, above guidance, increasing 360 basis points quarter-over-quarter and 440 basis points year-over-year [4] - EPS was $0.22, above guidance, up $0.07 sequentially and $0.09 year-over-year [5] Business Segment Data and Key Metrics Changes - NSE revenue for Q2 was $291.5 million, at the high end of guidance, up 45.8% year-over-year due to acquisitions [6] - OSP revenue for Q2 was $77.8 million, slightly above guidance, up 9.7% year-over-year, driven by anti-counterfeiting products [7][8] - NSE gross margin was 64.7%, down 10 basis points year-over-year, while operating margin was 15.6%, up from 8.7% last year [7] Market Data and Key Metrics Changes - Strong demand in the data center ecosystem and aerospace and defense sectors contributed to revenue growth [14] - The service provider business remained stable, with some opportunistic demand from cable operators transitioning to new standards [15] Company Strategy and Development Direction - The company is focusing on operational efficiencies through a restructuring plan, impacting approximately 5% of the workforce, with expected annual savings of about $30 million [10][11] - The strategy includes reinvesting savings into higher growth areas, particularly in data center and aerospace and defense applications [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by strong demand in the data center ecosystem and aerospace and defense sectors [14][15] - The company anticipates revenue for Q3 to be in the range of $386-$400 million, with NSE revenue expected to be between $304 and $316 million [12][13] Other Important Information - Total cash and short-term investments at the end of Q2 were $772.1 million, up from $549.1 million in Q1 [8] - The company plans to pay an earnout liability of about $75 million for Inertial Labs due to strong performance [13] Q&A Session Summary Question: Update on NSE business mix across data center, aerospace and defense, and telco - Management indicated a shift towards 45% data center, 40% service provider, and 15% aerospace and defense, with service provider showing slight recovery [21][22] Question: Visibility on demand and order book - Management confirmed improved visibility on demand, with multi-quarter commitments from hyperscalers [26][27] Question: Impact of restructuring on specific product areas - Restructuring is across multiple functions to enhance efficiency, not targeting specific areas [29][30] Question: Exciting defense and aerospace programs - Key drivers include resilient PNT systems for drones and autonomous systems, with strong growth expected [35][36] Question: Cadence of optical innovation in data centers - Demand is strong across all segments, with significant engagement from semiconductor vendors and module manufacturers [41][42] Question: Seasonal trends in service provider business - Management expects a tailwind in Q4 due to continued strength in data center and aerospace and defense sectors [88]