Viavi Solutions (VIAV) Prelim. Q3 Revenue Misses Expectations

(NASDAQ: VIAV) Viavi Solutions Inc. ("VIAVI" or the "Company") today announced selected unaudited preliminary financial results for its fiscal third quarter ended April 1, 2023. All information in this press release is preliminary and approximate, including subject to normal quarter-end accounting review.

For the third quarter, preliminary revenue is expected to be between $246 million and $248 million as compared to prior guidance of $256 million to $276 million. This was primarily driven by weakness in our NSE segment that experienced higher than expected pullback in demand for Lab products. The resulting preliminary non-GAAP operating margin is expected to be between 10.5% and 11.5% as compared to our guidance range of 13.0% to 14.2%.

(Consensus sees Q3 revenue of $269 million)

"The pullback in R&D spend at network equipment manufacturers (NEMs) and semiconductor companies was much higher than anticipated leading to revenue and non-GAAP operating margin coming in below the lower end of our guidance" said Oleg Khaykin, VIAVI's President and Chief Executive Officer. "The spending conservatism and rapid slowdown that we saw in the Service Provider and Data Center spend at the end of fiscal first quarter is now percolating down to the system and component suppliers."

Khaykin added, "The rest of the NSE business came in-line with our original expectations. We continue to see stabilization of demand for our field instruments. Our OSP business segment revenue was also within our initial expected range. Our previously announced cost reduction measures are progressing on schedule, and we expect them to be substantially complete by end of this fiscal year."

VIAVI Q3 Earnings and Conference Call Information

The Company will host an earnings call on May 2^nd at 1:30pm PT / 4:30pm ET. A live webcast of the call and the replay will be available on the VIAVI website at https://investor.viavisolutions.com. The quarterly earnings press release, supplementary slides and historical financial tables will be posted under the "Quarterly Results" section.

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