Fri, May 2, 8:42 PM (16 days ago)
### Viavi Solutions Inc. (VIAV) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Revenue:** $284.8 million, up 15.8% YoY. - **Gross Profit:** $160.7 million, up 16.5% YoY. - **Gross Margin:** 56.4%, up 0.3% YoY. - **Net Income:** $19.5 million, up 179.3% YoY. - **EPS:** $0.09, up 181.8% YoY. **Segment Performance:** - **Network Enablement (NE):** Revenue up 23.9% YoY, gross margin 63.4%. - **Service Enablement (SE):** Revenue up 11.6% YoY, gross margin 59.9%. - **Optical Security and Performance Products (OSP):** Revenue up 0.5% YoY, gross margin 51.6%. **Cash Flow:** - **Operating Cash Flow:** $66.0 million, down 26.8% YoY. - **Investing Cash Flow:** -$140.7 million, primarily due to acquisitions and capital expenditures. - **Financing Cash Flow:** -$23.5 million, mainly from share repurchases and withholding tax payments. **Debt and Liquidity:** - **Cash and Cash Equivalents:** $382.7 million, down 20.6% YoY. - **Debt:** $396.1 million in long-term debt, $244.8 million in short-term debt. - **Credit Facility:** $165.6 million available, net of outstanding standby letters of credit. **Outlook and Uncertainties:** - **Macro Environment:** Gradual recovery across end markets, but evolving macro conditions. - **Tariffs:** Broad-based, updated global tariffs announced, impacting operations and supply chain. - **Strategic Priorities:** Focus on revenue and earnings growth, market share capture, and capital structure optimization. **Risks:** - **Geopolitical Risks:** Conflicts and sanctions impacting supply chains and operations. - **Technological Risks:** Rapid changes and competition in the industry. - **Operational Risks:** Restructuring activities and management transitions. - **Financial Risks:** Debt levels and liquidity management. **Future Operations Impact:** - **Growth Drivers:** Leadership in core segments, investment in secular trends, and productivity improvements. - **Challenges:** Pricing pressures, competition, and market consolidation. **Conclusion:** Viavi Solutions Inc. (VIAV) reported strong Q1 2025 results with significant revenue and earnings growth. The company faces challenges from geopolitical risks, technological changes, and operational uncertainties. However, it remains focused on strategic priorities to drive future growth and optimize its capital structure.