VIAVI ANNOUNCES FIRST QUARTER FISCAL 2024 RESULTS
- Net revenue decreased by 20.1% YoY in the first quarter of fiscal 2024.
- GAAP operating margin declined by 960 bps YoY.
- Non-GAAP operating margin decreased by 930 bps YoY.
- GAAP diluted EPS dropped by 71.4% YoY.
- Non-GAAP diluted EPS declined by 60.9% YoY.
- None.
First Quarter
- Net revenue of
$247.9 million $62.3 million 20.1% year-over-year - GAAP operating margin of
6.5% , down 960 bps year-over-year - Non-GAAP operating margin of
12.4% , down 930 bps year-over-year, slightly below the low-end of our guidance range - GAAP diluted Earnings per share (EPS) of
$0.04 $0.10 71.4% year-over-year - Non-GAAP diluted EPS of
$0.09 $0.14 60.9% year-over-year
First quarter of fiscal 2024 net revenue was
Fourth quarter of fiscal 2023 net revenue was
First quarter of fiscal 2023 net revenue was
"VIAVI end markets spend environment continued to be challenging during the September quarter, particularly with the service providers in North America. In view of these continued headwinds, our revenue came in slightly below the mid-point of our guidance with stronger OSP demand helping to offset weaker telecom revenues. Our EPS came in at the low end of our guidance range, driven by lower volume and higher taxes due to less favorable geographic revenue mix," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.
Financial Overview:
The tables below (in millions, except percentage, and per share data) provide comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. A full reconciliation between the GAAP and non-GAAP measures included in the tables is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."
First Quarter Ended September 30, 2023
GAAP Results | |||||||||
Q1 | Q4 | Q1 | Change | ||||||
FY 2024 | FY 2023 | FY 2023 | Q/Q | Y/Y | |||||
Net revenue | $ 247.9 | $ 263.6 | $ 310.2 | (6.0) % | (20.1) % | ||||
Gross margin | 58.2 % | 55.4 % | 59.6 % | 280 bps | (140) bps | ||||
Operating margin | 6.5 % | 4.5 % | 16.1 % | 200 bps | (960) bps | ||||
Income from operations | 16.0 | 11.8 | 49.8 | 35.6 % | (67.9) % | ||||
Net income per share | 0.04 | — | 0.14 | NM | (71.4) % | ||||
Non-GAAP Results | |||||||||
Q1 | Q4 | Q1 | Change | ||||||
FY 2024 | FY 2023 | FY 2023 | Q/Q | Y/Y | |||||
Gross margin | 60.1 % | 58.2 % | 62.3 % | 190 bps | (220) bps | ||||
Operating margin | 12.4 % | 11.7 % | 21.7 % | 70 bps | (930) bps | ||||
Income from operations | 30.8 | 30.8 | 67.4 | — % | (54.3) % | ||||
Earnings per share | 0.09 | 0.10 | 0.23 | (10.0) % | (60.9) % | ||||
Net Revenue by Segment (1) | |||||||||
Q1 | Q4 | Q1 | Change | ||||||
FY 2024 | FY 2023 | FY 2023 | Q/Q | Y/Y | |||||
Network Enablement | $ 150.0 | $ 175.5 | $ 196.5 | (14.5) % | (23.7) % | ||||
Service Enablement | 20.4 | 22.4 | 22.4 | (8.9) % | (8.9) % | ||||
Optical Security and Performance Products | 77.5 | 65.7 | 91.3 | 18.0 % | (15.1) % | ||||
Total | $ 247.9 | $ 263.6 | $ 310.2 | (6.0) % | (20.1) % | ||||
(1) Effective for the first quarter of fiscal 2024, management of certain products moved from the SE segment to the NE segment to better align with operational and go-to-market strategies. As a result, prior period balances have been recast to reflect the impact to product and service revenue, gross profit and gross margin. The recast resulted in a revenue reclassification of |
Americas ,Asia-Pacific and EMEA customers represented40.5% ,34.7% and24.8% , respectively, of total net revenue for the quarter ended September 30, 2023.- As of September 30, 2023, the Company held
$544.5 million - As of September 30, 2023, the Company had
$96.4 million 1.00% Senior Convertible Notes,$250 million 1.625% Senior Convertible Notes and$400 million 3.75% Senior Notes with a total net carrying value of$727.3 million - During the fiscal quarter ended September 30, 2023, the Company generated
$50.3 million
Business Outlook for the Second Quarter of Fiscal 2024
For the second quarter of fiscal 2024 ending December 30, 2023, the Company expects net revenue to be between
With respect to our expectations above, the Company has not reconciled non-GAAP EPS to GAAP net income per share in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including certain charges related to restructuring, acquisition, integration and related charges. In addition, the Company believes such reconciliations would imply a degree of precision that may be confusing or misleading to investors.
Conference Call
The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on November 2, 2023 in a live webcast, which will also be archived for replay on the Company's website at https://investor.viavisolutions.com. The Company will post supplementary slides outlining the Company's latest financial results on https://investor.viavisolutions.com under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.
About VIAVI Solutions
VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring, and assurance solutions for communications service providers, hyperscalers, equipment manufacturers, enterprises, government and avionics. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications. Together with our customers and partners we are United in Possibility, finding innovative ways to solve real-world problems.
Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn, X (formerly known as Twitter), YouTube and Facebook.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any expectation, anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions, including market stabilization and recovery. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our customer base; (d) unforeseen changes or deceleration in the demand for current and new products, technologies, services, delays or unforeseen events in the roll-out of new industry platforms such as 5G or evolving technology such as 3D sensing and customer purchasing delays due to macroeconomic conditions, tightening of expenditures or as they assess or transition to such new technologies and/or architectures, all of which limit near-term demand visibility, and could negatively impact potential revenue; (e) continued decline of average selling prices across our businesses; (f) notable seasonality and a significant level of in-quarter book-and-ship business; (g) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including anticipated cost savings associated with such plans; (h) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (i) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (j) potential disruptions or delays to our manufacturing and operations due to climate conditions and natural disasters in the regions where we operate, such as wildfires, drought conditions and related water shortages in
Contact Information
Investors:
Chetan Doshi - Head of Corporate FP&A
408-404-6305
chetan.doshi@viavisolutions.com
Press:
Amit Malhotra
202-341-8624
amit.malhotra@viavisolutions.com
The following financial tables are presented in accordance with GAAP, unless otherwise specified.
-SELECTED PRELIMINARY FINANCIAL DATA -
VIAVI SOLUTIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) PRELIMINARY | |||
Three Months Ended | |||
September 30, 2023 | October 1, 2022 | ||
Net revenue | $ 247.9 | $ 310.2 | |
Cost of revenues | 100.0 | 118.3 | |
Amortization of acquired technologies | 3.5 | 7.1 | |
Gross profit | 144.4 | 184.8 | |
Operating expenses: | |||
Research and development | 49.9 | 52.6 | |
Selling, general and administrative | 77.2 | 80.2 | |
Amortization of other intangibles | 2.1 | 2.2 | |
Restructuring and related benefits | (0.8) | — | |
Total operating expenses | 128.4 | 135.0 | |
Income from operations | 16.0 | 49.8 | |
Interest and other income, net | 10.2 | 1.1 | |
Interest expense | (7.8) | (6.1) | |
Income before income taxes | 18.4 | 44.8 | |
Provision for income taxes | 8.6 | 12.2 | |
Net income | $ 9.8 | $ 32.6 | |
Net income per share: | |||
Basic | $ 0.04 | $ 0.14 | |
Diluted | $ 0.04 | $ 0.14 | |
Shares used in per share calculations: | |||
Basic | 222.0 | 226.3 | |
Diluted | 224.2 | 230.4 | |
The preliminary financial statements are estimated based on our current information. |
VIAVI SOLUTIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) PRELIMINARY | |||
September 30, 2023 | July 1, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 520.6 | $ 506.5 | |
Short-term investments | 20.5 | 14.6 | |
Restricted cash | 3.4 | 4.5 | |
Accounts receivable, net | 190.9 | 231.2 | |
Inventories, net | 113.5 | 116.1 | |
Prepayments and other current assets | 67.2 | 72.1 | |
Total current assets | 916.1 | 945.0 | |
Property, plant and equipment, net | 239.0 | 243.0 | |
Goodwill, net | 449.6 | 455.2 | |
Intangibles, net | 52.8 | 58.6 | |
Deferred income taxes | 86.1 | 87.0 | |
Other non-current assets | 58.5 | 61.7 | |
Total assets | $ 1,802.1 | $ 1,850.5 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 39.8 | $ 47.2 | |
Accrued payroll and related expenses | 40.5 | 50.5 | |
Deferred revenue | 67.0 | 78.6 | |
Accrued expenses | 26.2 | 21.2 | |
Short-term debt | 96.2 | 96.2 | |
Other current liabilities | 41.2 | 49.8 | |
Total current liabilities | 310.9 | 343.5 | |
Long-term debt | 631.1 | 629.5 | |
Other non-current liabilities | 184.9 | 186.7 | |
Total stockholders' equity | 675.2 | 690.8 | |
Total liabilities and stockholders' equity | $ 1,802.1 | $ 1,850.5 | |
The preliminary financial statements are estimated based on our current information. |
VIAVI SOLUTIONS INC. REPORTABLE SEGMENT INFORMATION (in millions, unaudited) PRELIMINARY | |||||||||||
Three Months Ended September 30, 2023 | |||||||||||
Network and Service Enablement | |||||||||||
Network | Service | Network and | Optical Security | Other Items (1) | Consolidated | ||||||
Net revenue | $ 150.0 | $ 20.4 | $ 170.4 | $ 77.5 | $ — | $ 247.9 | |||||
Gross profit | $ 94.6 | $ 13.7 | $ 108.3 | $ 40.7 | $ (4.6) | $ 144.4 | |||||
Gross margin | 63.1 % | 67.2 % | 63.6 % | 52.5 % | 58.2 % | ||||||
Operating income | $ 1.5 | $ 29.3 | $ (14.8) | $ 16.0 | |||||||
Operating margin | 0.9 % | 37.8 % | 6.5 % | ||||||||
Three Months Ended October 1, 2022 | |||||||||||
Network and Service Enablement | |||||||||||
Network | Service | Network and | Optical Security | Other Items (1) | Consolidated | ||||||
Net revenue | $ 196.5 | $ 22.4 | $ 218.9 | $ 91.3 | $ — | $ 310.2 | |||||
Gross profit | $ 126.8 | $ 14.8 | $ 141.6 | $ 51.8 | $ (8.6) | $ 184.8 | |||||
Gross margin | 64.5 % | 66.1 % | 64.7 % | 56.7 % | 59.6 % | ||||||
Operating income | $ 28.8 | $ 38.6 | $ (17.6) | $ 49.8 | |||||||
Operating margin | 13.2 % | 42.3 % | 16.1 % | ||||||||
(1) Other items include charges (benefits) unrelated to core operating performance primarily consisting of stock-based compensation, amortization of acquisition-related intangibles, restructuring, changes in fair value of contingent consideration liabilities and other charges unrelated to core operating performance. |
The preliminary financial schedules are estimated based on our current information. |
VIAVI SOLUTIONS INC. REPORTABLE SEGMENT INFORMATION (Prior Period Revision) (in millions, unaudited) | |||||||||||||||||||||||||||||||||||
Revised Amounts | As Reported | Change | |||||||||||||||||||||||||||||||||
Three months ended | Twelve | Twelve | Three months ended | Twelve | Twelve | Three months ended | Twelve | Twelve | |||||||||||||||||||||||||||
Oct 1, | Dec 31, | Apr 1, | Jul 1, | Jul 1, | Jul 2, | Oct 1, | Dec 31, | Apr 1, | Jul 1, | Jul 1, | Jul 2, | Oct 1, | Dec 31, | Apr 1, | Jul 1, | Jul 1, | Jul 2, | ||||||||||||||||||
Net revenue | |||||||||||||||||||||||||||||||||||
NE | |||||||||||||||||||||||||||||||||||
SE | 22.4 | 23.7 | 25.4 | 22.4 | 93.9 | 93.4 | 24.0 | 27.4 | 27.7 | 24.6 | 103.7 | 103.3 | (1.6) | (3.7) | (2.3) | (2.2) | (9.8) | (9.9) | |||||||||||||||||
NSE | 218.9 | 207.1 | 177.3 | 197.9 | 801.2 | 949.1 | 218.9 | 207.1 | 177.3 | 197.9 | 801.2 | 949.1 | — | — | — | — | — | — | |||||||||||||||||
OSP | 91.3 | 77.4 | 70.5 | 65.7 | 304.9 | 343.3 | 91.3 | 77.4 | 70.5 | 65.7 | 304.9 | 343.3 | — | — | — | — | — | — | |||||||||||||||||
Total Net revenue | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||||||||||||||
NE | $ 3.1 | $ 1.7 | $ 1.6 | $ 7.6 | $ 7.2 | ||||||||||||||||||||||||||||||
SE | 14.8 | 15.2 | 17.8 | 14.7 | 62.5 | 64.3 | 16.0 | 18.3 | 19.5 | 16.3 | 70.1 | 71.5 | (1.2) | (3.1) | (1.7) | (1.6) | (7.6) | (7.2) | |||||||||||||||||
NSE | 141.6 | 133.4 | 112.3 | 122.9 | 510.2 | 615.1 | 141.6 | 133.4 | 112.3 | 122.9 | 510.2 | 615.1 | — | — | — | — | — | — | |||||||||||||||||
OSP | 51.8 | 40.5 | 35.7 | 30.6 | 158.6 | 193.6 | 51.8 | 40.5 | 35.7 | 30.6 | 158.6 | 193.6 | — | — | — | — | — | — | |||||||||||||||||
Other Items (1) | (8.6) | (6.9) | (7.0) | (7.5) | (30.0) | (35.2) | (8.6) | (6.9) | (7.0) | (7.5) | (30.0) | (35.2) | — | — | — | — | — | — | |||||||||||||||||
Total Gross profit | $ 184.8 | $ 167.0 | $ 141.0 | $ 146.0 | $ 638.8 | $ 773.5 | $ 184.8 | $ 167.0 | $ 141.0 | $ 146.0 | $ 638.8 | $ 773.5 | $ — | $ — | $ — | $ — | $ — | $ — | |||||||||||||||||
Gross Margin (%) | |||||||||||||||||||||||||||||||||||
NE | 64.5 % | 64.4 % | 62.2 % | 61.7 % | 63.3 % | 64.4 % | 64.4 % | 64.1 % | 62.0 % | 61.5 % | 63.1 % | 64.3 % | 10 bps | 30 bps | 20 bps | 20 bps | 20 bps | 10 bps | |||||||||||||||||
SE | 66.1 % | 64.1 % | 70.1 % | 65.6 % | 66.6 % | 68.8 % | 66.7 % | 66.8 % | 70.4 % | 66.3 % | 67.6 % | 69.2 % | (60) bps | (270) bps | (30) bps | (70) bps | (100) bps | (40) bps | |||||||||||||||||
NSE | 64.7 % | 64.4 % | 63.3 % | 62.1 % | 63.7 % | 64.8 % | 64.7 % | 64.4 % | 63.3 % | 62.1 % | 63.7 % | 64.8 % | — | — | — | — | — | — | |||||||||||||||||
OSP | 56.7 % | 52.3 % | 50.6 % | 46.6 % | 52.0 % | 56.4 % | 56.7 % | 52.3 % | 50.6 % | 46.6 % | 52.0 % | 56.4 % | — | — | — | — | — | — | |||||||||||||||||
Total Gross Margin (%) | 59.6 % | 58.7 % | 56.9 % | 55.4 % | 57.8 % | 59.8 % | 59.6 % | 58.7 % | 56.9 % | 55.4 % | 57.8 % | 59.8 % | — | — | — | — | — | — | |||||||||||||||||
Operating Income | |||||||||||||||||||||||||||||||||||
NSE | $ — | $ — | $ — | $ — | $ — | $ — | |||||||||||||||||||||||||||||
OSP | 38.6 | 27.5 | 25.8 | 19.4 | 111.3 | 139.0 | 38.6 | 27.5 | 25.8 | 19.4 | 111.3 | 139.0 | — | — | — | — | — | — | |||||||||||||||||
Other Items (1) | (17.6) | (23.1) | (30.4) | (19.0) | (90.1) | (101.8) | (17.6) | (23.1) | (30.4) | (19.0) | (90.1) | (101.8) | — | — | — | — | — | — | |||||||||||||||||
Total Operating Income | $ 49.8 | $ 11.8 | $ 82.4 | $ 185.0 | $ 49.8 | $ 11.8 | $ 82.4 | $ 185.0 | $ — | $ — | $ — | $ — | $ — | $ — | |||||||||||||||||||||
Operating Margin | |||||||||||||||||||||||||||||||||||
NSE | 13.2 % | 8.9 % | 1.4 % | 5.8 % | 7.6 % | 15.6 % | 13.2 % | 8.9 % | 1.4 % | 5.8 % | 7.6 % | 15.6 % | — | — | — | — | — | — | |||||||||||||||||
OSP | 42.3 % | 35.5 % | 36.6 % | 29.5 % | 36.5 % | 40.5 % | 42.3 % | 35.5 % | 36.6 % | 29.5 % | 36.5 % | 40.5 % | — | — | — | — | — | — | |||||||||||||||||
Total Operating Margin | 16.1 % | 8.0 % | (0.8) % | 4.5 % | 7.4 % | 14.3 % | 16.1 % | 8.0 % | (0.8) % | 4.5 % | 7.4 % | 14.3 % | — | — | — | — | — | — | |||||||||||||||||
(1) Other items include charges (benefits) unrelated to core operating performance primarily consisting of stock-based compensation, amortization of acquisition-related intangibles, restructuring, changes in fair value of contingent consideration liabilities and other charges unrelated to core operating performance. |
Use of Non-GAAP (Adjusted) Financial Measures
The Company provides non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per share, EBITDA and adjusted EBITDA financial measures as supplemental information regarding the Company's operational performance. The Company uses the measures disclosed in this release to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represent its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to certain purchase price accounting adjustments, amortization of acquisition-related intangibles, stock-based compensation, legal settlements, restructuring, changes in fair value of contingent consideration liabilities and certain investing expenses and other activities that management believes are not reflective of such ordinary, ongoing and core operating activities. The Company believes excluding these items enables investors to evaluate more clearly and consistently the Company's core operational performance.
The Company believes providing this additional information allows investors to see Company results through the eyes of management. The Company further believes that providing this information allows investors to better understand the Company's financial performance and, importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.
The non-GAAP adjustments described in this release are excluded by the Company from its GAAP financial measures because the Company believes excluding these items enables investors to evaluate more clearly and consistently the Company's core operational performance. The non-GAAP adjustments are outlined below.
Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, equipment and intangibles that have been identified for disposal but remained in use until the date of disposal, (ii) charges such as severance, benefits and outplacement costs related to restructuring plans, (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, (v) amortization expense related to acquired intangibles, (vi) changes in fair value of contingent consideration liabilities and (vii) other charges unrelated to our core operating performance comprised mainly of acquisition related transaction costs, integration costs related to acquired entities, litigation and legal settlements and other costs and contingencies unrelated to current and future operations, including transformational initiatives such as the implementation of simplified automated processes, site consolidations, and reorganizations. The Company excludes these items in calculating non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per share, EBITDA and adjusted EBITDA.
Non-cash interest expense and other expense: The Company excludes certain investing expenses and non-cash activities that management believes are not reflective of such ordinary, ongoing and core operating activities, in calculating non-GAAP net income and non-GAAP earnings per share.
Income tax expense or benefit: The Company excludes certain non-cash tax expense or benefit items, such as the utilization of net operating losses where valuation allowances were released, intra-period tax allocation benefit and the tax effect for amortization of non-tax deductible intangible assets, in calculating non-GAAP net income and non-GAAP earnings per share.
Interest, taxes, depreciation, amortization and other adjustments: The Company's EBITDA calculation primarily excludes interest income and other income (expense), interest expense, taxes, depreciation and amortization, and other items that are not part of its core operating performance described above. The Company's adjusted EBITDA excludes, items in addition to the items excluded from the EBITDA calculation, such as stock-based compensation, restructuring and related charges (benefits), gain or loss on sale of available for-sale investments, changes in fair value of contingent consideration liabilities arising from prior acquisitions and other charges related to activities that are not part of its core operating performance described above. Management believes adjusted EBITDA is a helpful indicator of the Company's core operational cash flow.
Non-GAAP financial measures are not in accordance with, preferable to, or an alternative for, generally accepted accounting principles in
VIAVI SOLUTIONS INC. RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS TO NON-GAAP MEASURES (in millions, except per share data) (unaudited) PRELIMINARY | |||||||
The following tables reconcile GAAP measures to non-GAAP measures: | |||||||
Three Months Ended | |||||||
September 30, 2023 | October 1, 2022 | ||||||
Gross | Gross | Gross | Gross | ||||
GAAP measures | $ 144.4 | 58.2 % | $ 184.8 | 59.6 % | |||
Stock-based compensation | 1.2 | 0.5 % | 1.2 | 0.4 % | |||
Other (benefits) charges unrelated to core operating performance (1) | (0.1) | — % | 0.3 | 0.1 % | |||
Amortization of intangibles | 3.5 | 1.4 % | 7.1 | 2.2 % | |||
Total related to Cost of Revenue | 4.6 | 1.9 % | 8.6 | 2.7 % | |||
Non-GAAP measures | $ 149.0 | 60.1 % | $ 193.4 | 62.3 % | |||
Three Months Ended | |||||||
September 30, 2023 | October 1, 2022 | ||||||
Operating | Operating | Operating | Operating | ||||
GAAP measures | $ 16.0 | 6.5 % | $ 49.8 | 16.1 % | |||
Stock-based compensation | 11.2 | 4.5 % | 13.0 | 4.2 % | |||
Change in fair value of contingent liability | (1.4) | (0.6) % | 0.5 | 0.1 % | |||
Other charges (benefits) unrelated to core operating performance (1) | 0.2 | 0.1 % | (5.2) | (1.7) % | |||
Amortization of intangibles | 5.6 | 2.2 % | 9.3 | 3.0 % | |||
Restructuring and related benefits | (0.8) | (0.3) % | — | — % | |||
Total related to Cost of Revenue and Operating Expenses | 14.8 | 5.9 % | 17.6 | 5.6 % | |||
Non-GAAP measures | $ 30.8 | 12.4 % | $ 67.4 | 21.7 % | |||
Three Months Ended | |||||||
September 30, 2023 | October 1, 2022 | ||||||
Net Income | Diluted | Net Income | Diluted | ||||
GAAP measures | $ 9.8 | $ 0.04 | $ 32.6 | $ 0.14 | |||
Items reconciling GAAP Net income and EPS to Non-GAAP Net income and EPS: | |||||||
Stock-based compensation | 11.2 | 0.05 | 13.0 | 0.06 | |||
Change in fair value of contingent liability | (1.4) | — | 0.5 | — | |||
Other charges (benefits) unrelated to core operating performance (1) | 0.2 | — | (5.2) | (0.02) | |||
Amortization of intangibles | 5.6 | 0.02 | 9.3 | 0.04 | |||
Restructuring and related benefits | (0.8) | — | — | — | |||
Litigation settlement (2) | (7.3) | (0.03) | — | — | |||
Non-cash interest expense and other expense | 1.2 | 0.01 | — | — | |||
Provision for income taxes | 1.0 | — | 2.3 | 0.01 | |||
Total related to Net income and EPS | 9.7 | 0.05 | 19.9 | 0.09 | |||
Non-GAAP measures | $ 19.5 | $ 0.09 | $ 52.5 | $ 0.23 | |||
Shares used in per share calculation for Non-GAAP EPS | 224.2 | 230.4 | |||||
Note: Certain totals may not add due to rounding. |
(1) Other items include charges (benefits) unrelated to core operating performance primarily consisting of certain acquisition and integration related charges, transformational initiatives such as site consolidations, accretion of debt discount, intangible impairment and loss on disposal of long-lived assets. |
(2) Favorable litigation settlement recorded as a gain to Interest and other income, net in the Consolidated Statements of Operations for the three months ended September 30, 2023. |
The preliminary financial schedules are estimated based on our current information. |
VIAVI SOLUTIONS INC. RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (in millions, unaudited) PRELIMINARY | |||
Three Months Ended | |||
September 30, 2023 | October 1, 2022 | ||
GAAP Net Income | $ 9.8 | $ 32.6 | |
Interest and other income, net (1) | (10.2) | (1.1) | |
Interest expense | 7.8 | 6.1 | |
Provision for income taxes | 8.6 | 12.2 | |
Depreciation | 9.8 | 8.5 | |
Amortization | 5.6 | 9.3 | |
EBITDA | 31.4 | 67.6 | |
Restructuring and related benefits | (0.8) | — | |
Stock-based compensation | 11.2 | 13.0 | |
Change in fair value of contingent liability | (1.4) | 0.5 | |
Other charges (benefits) unrelated to core operating performance | 0.1 | (5.4) | |
Adjusted EBITDA | $ 40.5 | $ 75.7 | |
Note: Certain totals may not add due to rounding. |
(1) Includes favorable litigation settlement recorded as a gain to Interest and other income, net in the Consolidated Statements of Operations for the three months ended September 30, 2023. |
The preliminary financial schedules are estimated based on our current information. |
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SOURCE VIAVI Financials
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