VIAVI ANNOUNCES SECOND QUARTER FISCAL 2024 RESULTS
- None.
- Net revenue declined by 10.5% year-over-year, and non-GAAP operating margin decreased by 300 bps year-over-year, indicating a potential challenge in maintaining profitability and revenue growth.
Insights
Reviewing the reported financial results, there is a noticeable decline in net revenue year-over-year by 10.5%, which could raise concerns among investors regarding the company's growth trajectory. However, an 80 basis points improvement in GAAP operating margin suggests cost management initiatives may be yielding results. The increase in GAAP diluted EPS by 25% year-over-year, despite a decrease in non-GAAP diluted EPS, indicates a potential discrepancy between reported earnings and adjusted earnings, which often exclude one-time costs or benefits and provide a view of ongoing operations.
From a liquidity standpoint, the company's substantial cash and investment holdings of $571.8 million offer a buffer against market volatility and strategic flexibility for potential investments or acquisitions. The mix of senior convertible notes and senior notes with varying interest rates reflects a diversified debt structure, which could be a strategic move to balance cost of capital and financial flexibility.
The forward-looking statements suggest management's expectation of continued demand in certain product segments, which could mitigate the impact of weaker service provider spending. However, the broad range in the earnings per share guidance for the next quarter indicates uncertainty and warrants monitoring for potential volatility in future performance.
Examining the performance by segment, the Network Enablement (NE) segment's year-over-year revenue decline of 15.2% could be indicative of market saturation or increased competition in this space. The slight year-over-year increase in the Service Enablement (SE) segment suggests stability, albeit not enough to offset the declines elsewhere. The Optical Security and Performance Products segment also experienced a slight decline, which may reflect market trends or shifts in consumer demand.
Geographically, the revenue distribution across Americas, Asia-Pacific and EMEA provides insight into the company's global footprint and market dependencies. The nearly even spread suggests a diversified market presence, which can be beneficial in buffering regional economic fluctuations. However, it is essential to analyze specific regional trends that might affect future revenue streams.
The company's financial performance should be contextualized within the broader economic environment. The decline in revenue could be symptomatic of macroeconomic headwinds, such as reduced corporate spending in anticipation of economic downturns or the impact of global trade tensions on supply chains. The company's ability to improve its operating margin in such an environment could be seen as a positive sign of operational resilience.
Additionally, the company's debt profile, with varying maturities and interest rates, showcases a strategic approach to capital structure management in a potentially rising interest rate environment. The cash flow generation of $20.4 million from operations is a critical metric, as it reflects the company's capacity to self-finance and sustain its operations without additional debt or equity financing.
Second Quarter
- Net revenue of
$254.5 million $30.0 million 10.5% year-over-year - GAAP operating margin of
8.8% , up 80 bps year-over-year - Non-GAAP operating margin of
13.2% , down 300 bps year-over-year - GAAP diluted Earnings per share (EPS) of
$0.05 $0.01 25.0% year-over-year - Non-GAAP diluted EPS of
$0.11 $0.03 21.4% year-over-year
Second quarter of fiscal 2024 net revenue was
First quarter of fiscal 2024 net revenue was
Second quarter of fiscal 2023 net revenue was
"The December quarter came in stronger than expected. Revenue was slightly above the mid-point of our guidance, helped by stronger demand for 400G/800G Fiber, Mil/Aero, and SE products. EPS came in above the high end of our guidance, driven by a richer margin revenue mix. In the near term, we expect stronger demand in the above segments to help offset continued weakness in Service Provider spend" 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."
Second Quarter Ended December 30, 2023
GAAP Results | |||||||||
Q2 | Q1 | Q2 | Change | ||||||
FY 2024 | FY 2024 | FY 2023 | Q/Q | Y/Y | |||||
Net revenue | $ 254.5 | $ 247.9 | $ 284.5 | 2.7 % | (10.5) % | ||||
Gross margin | 58.2 % | 58.2 % | 58.7 % | — bps | (50) bps | ||||
Operating margin | 8.8 % | 6.5 % | 8.0 % | 230 bps | 80 bps | ||||
Income from operations | 22.4 | 16.0 | 22.9 | 40.0 % | (2.2) % | ||||
Net income per share | 0.05 | 0.04 | 0.04 | 25.0 % | 25.0 % | ||||
Non-GAAP Results | |||||||||
Q2 | Q1 | Q2 | Change | ||||||
FY 2024 | FY 2024 | FY 2023 | Q/Q | Y/Y | |||||
Gross margin | 60.0 % | 60.1 % | 61.1 % | (10) bps | (110) bps | ||||
Operating margin | 13.2 % | 12.4 % | 16.2 % | 80 bps | (300) bps | ||||
Income from operations | 33.7 | 30.8 | 46.0 | 9.4 % | (26.7) % | ||||
Earnings per share | 0.11 | 0.09 | 0.14 | 22.2 % | (21.4) % | ||||
Net Revenue by Segment | |||||||||
Q2 | Q1 | Q2 | Change | ||||||
FY 2024 | FY 2024 | FY 2023 (1) | Q/Q | Y/Y | |||||
Network Enablement | $ 155.5 | $ 150.0 | $ 183.3 | 3.7 % | (15.2) % | ||||
Service Enablement | 24.1 | 20.4 | 23.8 | 18.1 % | 1.3 % | ||||
Optical Security and Performance Products | 74.9 | 77.5 | 77.4 | (3.4) % | (3.2) % | ||||
Total | $ 254.5 | $ 247.9 | $ 284.5 | 2.7 % | (10.5) % | ||||
(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 net revenue, gross profit and gross margin. |
Americas ,Asia-Pacific and EMEA customers represented40.5% ,31.2% and28.3% , respectively, of total net revenue for the quarter ended December 30, 2023.- As of December 30, 2023, the Company held
$571.8 million - As of December 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$729.1 million - During the fiscal quarter ended December 30, 2023, the Company generated
$20.4 million
Business Outlook for the Third Quarter of Fiscal 2024
For the third quarter of fiscal 2024 ending March 30, 2024, the Company expects net revenue to be between
With respect to our expectations above, the Company has not reconciled GAAP net income per share to non-GAAP EPS 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 February 1, 2024 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
VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications. Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.
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 | Six Months Ended | ||||||
December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||
Net revenue | $ 254.5 | $ 284.5 | $ 502.4 | $ 594.7 | |||
Cost of revenues | 103.1 | 111.8 | 203.1 | 230.1 | |||
Amortization of acquired technologies | 3.4 | 5.7 | 6.9 | 12.8 | |||
Gross profit | 148.0 | 167.0 | 292.4 | 351.8 | |||
Operating expenses: | |||||||
Research and development | 49.5 | 51.9 | 99.4 | 104.5 | |||
Selling, general and administrative | 74.8 | 90.0 | 152.0 | 170.2 | |||
Amortization of other intangibles | 1.4 | 2.2 | 3.5 | 4.4 | |||
Restructuring and related benefits | (0.1) | — | (0.9) | — | |||
Total operating expenses | 125.6 | 144.1 | 254.0 | 279.1 | |||
Income from operations | 22.4 | 22.9 | 38.4 | 72.7 | |||
Interest and other income, net | 3.8 | 2.2 | 14.0 | 3.3 | |||
Interest expense | (7.9) | (6.2) | (15.7) | (12.3) | |||
Income before income taxes | 18.3 | 18.9 | 36.7 | 63.7 | |||
Provision for income taxes | 7.6 | 10.5 | 16.2 | 22.7 | |||
Net income | $ 10.7 | $ 8.4 | $ 20.5 | $ 41.0 | |||
Net income per share: | |||||||
Basic | $ 0.05 | $ 0.04 | $ 0.09 | $ 0.18 | |||
Diluted | $ 0.05 | $ 0.04 | $ 0.09 | $ 0.18 | |||
Shares used in per share calculations: | |||||||
Basic | 222.5 | 225.9 | 222.2 | 226.1 | |||
Diluted | 223.5 | 227.1 | 223.9 | 228.8 | |||
The preliminary financial statements are estimated based on our current information. | |||||||
VIAVI SOLUTIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) PRELIMINARY | |||
December 30, 2023 | July 1, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 543.7 | $ 506.5 | |
Short-term investments | 25.0 | 14.6 | |
Restricted cash | 3.1 | 4.5 | |
Accounts receivable, net | 208.9 | 231.2 | |
Inventories, net | 115.1 | 116.1 | |
Prepayments and other current assets | 69.5 | 72.1 | |
Total current assets | 965.3 | 945.0 | |
Property, plant and equipment, net | 236.5 | 243.0 | |
Goodwill, net | 455.2 | 455.2 | |
Intangibles, net | 48.2 | 58.6 | |
Deferred income taxes | 90.4 | 87.0 | |
Other non-current assets | 60.6 | 61.7 | |
Total assets | $ 1,856.2 | $ 1,850.5 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 43.8 | $ 47.2 | |
Accrued payroll and related expenses | 46.6 | 50.5 | |
Deferred revenue | 60.8 | 78.6 | |
Accrued expenses | 21.9 | 21.2 | |
Short-term debt | 96.3 | 96.2 | |
Other current liabilities | 42.7 | 49.8 | |
Total current liabilities | 312.1 | 343.5 | |
Long-term debt | 632.8 | 629.5 | |
Other non-current liabilities | 183.3 | 186.7 | |
Total stockholders' equity | 728.0 | 690.8 | |
Total liabilities and stockholders' equity | $ 1,856.2 | $ 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 December 30, 2023 | |||||||||||
Network and Service Enablement | |||||||||||
Network | Service | Network and | Optical Security | Other Items (1) | Consolidated | ||||||
Net revenue | $ 155.5 | $ 24.1 | $ 179.6 | $ 74.9 | $ — | $ 254.5 | |||||
Gross profit | $ 97.2 | $ 16.6 | $ 113.8 | $ 39.0 | $ (4.8) | $ 148.0 | |||||
Gross margin | 62.5 % | 68.9 % | 63.4 % | 52.1 % | 58.2 % | ||||||
Operating income | $ 6.4 | $ 27.3 | $ (11.3) | $ 22.4 | |||||||
Operating margin | 3.6 % | 36.4 % | 8.8 % | ||||||||
Three Months Ended December 31, 2022 | |||||||||||
Network and Service Enablement | |||||||||||
Network | Service | Network and | Optical Security | Other Items (1) | Consolidated | ||||||
Net revenue | $ 183.3 | $ 23.8 | $ 207.1 | $ 77.4 | $ — | $ 284.5 | |||||
Gross profit | $ 118.1 | $ 15.3 | $ 133.4 | $ 40.5 | $ (6.9) | $ 167.0 | |||||
Gross margin | 64.4 % | 64.3 % | 64.4 % | 52.3 % | 58.7 % | ||||||
Operating income | $ 18.5 | $ 27.5 | $ (23.1) | $ 22.9 | |||||||
Operating margin | 8.9 % | 35.5 % | 8.0 % | ||||||||
Six Months Ended December 30, 2023 | |||||||||||
Network and Service Enablement | |||||||||||
Network | Service | Network and | Optical Security | Other Items (1) | Consolidated | ||||||
Net revenue | $ 305.5 | $ 44.5 | $ 350.0 | $ 152.4 | $ — | $ 502.4 | |||||
Gross profit | $ 191.8 | $ 30.3 | $ 222.1 | $ 79.7 | $ (9.4) | $ 292.4 | |||||
Gross margin | 62.8 % | 68.1 % | 63.5 % | 52.3 % | 58.2 % | ||||||
Operating income | $ 7.9 | $ 56.6 | $ (26.1) | $ 38.4 | |||||||
Operating margin | 2.3 % | 37.1 % | 7.6 % | ||||||||
Six Months Ended December 31, 2022 | |||||||||||
Network and Service Enablement | |||||||||||
Network | Service | Network and | Optical Security | Other Items (1) | Consolidated | ||||||
Net revenue | $ 379.8 | $ 46.2 | $ 426.0 | $ 168.7 | $ — | $ 594.7 | |||||
Gross profit | $ 244.9 | $ 30.1 | $ 275.0 | $ 92.3 | $ (15.5) | $ 351.8 | |||||
Gross margin | 64.5 % | 65.2 % | 64.6 % | 54.7 % | 59.2 % | ||||||
Operating income | $ 47.3 | $ 66.1 | $ (40.7) | $ 72.7 | |||||||
Operating margin | 11.1 % | 39.2 % | 12.2 % | ||||||||
(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. |
(2) 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 net revenue, gross profit and gross margin. |
The preliminary financial schedules are estimated based on our current information. |
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, including accretion of debt discount, and other 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 EPS.
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 | Six Months Ended | ||||||||||||||
December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | Gross | Gross | ||||||||
GAAP measures | $ 148.0 | 58.2 % | $ 167.0 | 58.7 % | $ 292.4 | 58.2 % | $ 351.8 | 59.2 % | |||||||
Stock-based compensation | 1.2 | 0.4 % | 1.2 | 0.4 % | 2.4 | 0.5 % | 2.4 | 0.4 % | |||||||
Other charges unrelated to core operating | 0.2 | 0.1 % | — | — % | 0.1 | — % | 0.3 | 0.1 % | |||||||
Amortization of intangibles | 3.4 | 1.3 % | 5.7 | 2.0 % | 6.9 | 1.4 % | 12.8 | 2.1 % | |||||||
Total related to Cost of Revenue | 4.8 | 1.8 % | 6.9 | 2.4 % | 9.4 | 1.9 % | 15.5 | 2.6 % | |||||||
Non-GAAP measures | $ 152.8 | 60.0 % | $ 173.9 | 61.1 % | $ 301.8 | 60.1 % | $ 367.3 | 61.8 % | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||||||||||
Operating | Operating | Operating | Operating | Operating | Operating | Operating | Operating | ||||||||
GAAP measures | $ 22.4 | 8.8 % | $ 22.9 | 8.0 % | $ 38.4 | 7.6 % | $ 72.7 | 12.2 % | |||||||
Stock-based compensation | 12.5 | 4.9 % | 13.0 | 4.6 % | 23.7 | 4.7 % | 26.0 | 4.4 % | |||||||
Change in fair value of contingent liability | (7.0) | (2.8) % | 1.3 | 0.5 % | (8.4) | (1.7) % | 1.8 | 0.3 % | |||||||
Other charges (benefits) unrelated to core | 1.1 | 0.4 % | 0.9 | 0.3 % | 1.3 | 0.3 % | (4.3) | (0.7) % | |||||||
Amortization of intangibles | 4.8 | 1.9 % | 7.9 | 2.8 % | 10.4 | 2.1 % | 17.2 | 2.9 % | |||||||
Restructuring and related benefits | (0.1) | — % | — | — % | (0.9) | (0.2) % | — | — % | |||||||
Total related to Cost of Revenue and Operating | 11.3 | 4.4 % | 23.1 | 8.2 % | 26.1 | 5.2 % | 40.7 | 6.9 % | |||||||
Non-GAAP measures | $ 33.7 | 13.2 % | $ 46.0 | 16.2 % | $ 64.5 | 12.8 % | $ 113.4 | 19.1 % | |||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||||||||||
Net Income | Diluted | Net Income | Diluted | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||
GAAP measures | $ 10.7 | $ 0.05 | $ 8.4 | $ 0.04 | $ 20.5 | $ 0.09 | $ 41.0 | $ 0.18 | |||||||
Items reconciling GAAP Net income and EPS to | |||||||||||||||
Stock-based compensation | 12.5 | 0.06 | 13.0 | 0.06 | 23.7 | 0.10 | 26.0 | 0.11 | |||||||
Change in fair value of contingent liability | (7.0) | (0.03) | 1.3 | 0.01 | (8.4) | (0.04) | 1.8 | 0.01 | |||||||
Other charges (benefits) unrelated to core | 1.1 | — | 0.9 | — | 1.3 | 0.01 | (4.3) | (0.02) | |||||||
Amortization of intangibles | 4.8 | 0.02 | 7.9 | 0.03 | 10.4 | 0.05 | 17.2 | 0.08 | |||||||
Restructuring and related benefits | (0.1) | — | — | — | (0.9) | (0.01) | — | — | |||||||
Litigation settlement (2) | 0.3 | — | — | — | (7.0) | (0.03) | — | — | |||||||
Non-cash interest expense and other expense | 1.2 | 0.01 | — | — | 2.4 | 0.01 | — | — | |||||||
Provision for income taxes | 0.2 | — | — | — | 1.2 | 0.01 | 2.3 | 0.01 | |||||||
Total related to Net income and EPS | 13.0 | 0.06 | 23.1 | 0.10 | 22.7 | 0.10 | 43.0 | 0.19 | |||||||
Non-GAAP measures | $ 23.7 | $ 0.11 | $ 31.5 | $ 0.14 | $ 43.2 | $ 0.19 | $ 84.0 | $ 0.37 | |||||||
Shares used in per share calculation for Non- | 223.5 | 227.1 | 223.9 | 228.8 | |||||||||||
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, legal settlement, accretion of debt discount and losses on disposal of long-lived assets. |
(2) Unfavorable (favorable) litigation settlement recorded to Interest and other income, net in the Consolidated Statements of Operations for the three and six months ended December 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 | Six Months Ended | ||||||
December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||
GAAP Net Income | $ 10.7 | $ 8.4 | $ 20.5 | $ 41.0 | |||
Interest and other income, net (1) | (3.8) | (2.2) | (14.0) | (3.3) | |||
Interest expense | 7.9 | 6.2 | 15.7 | 12.3 | |||
Provision for income taxes | 7.6 | 10.5 | 16.2 | 22.7 | |||
Depreciation | 9.7 | 8.6 | 19.5 | 17.1 | |||
Amortization | 4.8 | 7.9 | 10.4 | 17.2 | |||
EBITDA | 36.9 | 39.4 | 68.3 | 107.0 | |||
Restructuring and related benefits | (0.1) | — | (0.9) | — | |||
Stock-based compensation | 12.5 | 13.0 | 23.7 | 26.0 | |||
Change in fair value of contingent liability | (7.0) | 1.3 | (8.4) | 1.8 | |||
Other charges (benefits) unrelated to core operating performance | 0.7 | 0.6 | 0.8 | (4.8) | |||
Adjusted EBITDA | $ 43.0 | $ 54.3 | $ 83.5 | $ 130.0 | |||
Note: Certain totals may not add due to rounding. |
(1) Includes litigation settlements recorded to Interest and other income, net in the Consolidated Statements of Operations for the three and six months ended December 30, 2023. |
The preliminary financial schedules are estimated based on our current information. |
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SOURCE VIAVI Financials
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