Viavi Solutions Inc (VIAV) Reports 20.1% Year-Over-Year Decline in Q1 FY 2024 Net Revenue
Viavi Solutions Inc (NASDAQ:VIAV) reported a 20.1% year-over-year decrease in net revenue for Q1 FY 2024, amounting to $247.9 million.
GAAP operating margin was down 960 bps year-over-year, standing at 6.5%.
Non-GAAP operating margin also decreased by 930 bps year-over-year, slightly below the low-end of the guidance range.
GAAP diluted EPS was $0.04, down $0.10 or 71.4% year-over-year, while Non-GAAP diluted EPS was $0.09, down $0.14 or 60.9% year-over-year.
Viavi Solutions Inc (NASDAQ:VIAV) released its earnings report for the first quarter of fiscal 2024 on November 2, 2023. The company reported a significant decrease in net revenue, GAAP operating margin, and non-GAAP operating margin compared to the same period last year. The GAAP net income was $9.8 million, or $0.04 per share, while the non-GAAP net income was $19.5 million, or $0.09 per share.
Financial Overview
The company's net revenue for Q1 FY 2024 was $247.9 million, down 20.1% year-over-year from $310.2 million in Q1 FY 2023. The GAAP operating margin was 6.5%, down 960 bps year-over-year, while the non-GAAP operating margin was 12.4%, down 930 bps year-over-year. The GAAP diluted EPS was $0.04, down $0.10 or 71.4% year-over-year, and the non-GAAP diluted EPS was $0.09, down $0.14 or 60.9% year-over-year.
Company's Performance and Challenges
According to the company's President and Chief Executive Officer, Oleg Khaykin, the challenging market environment, particularly with service providers in North America, impacted the company's performance. The revenue was slightly below the mid-point of the guidance due to these continued headwinds, with stronger OSP demand helping to offset weaker telecom revenues. The EPS was at the low end of the guidance range, driven by lower volume and higher taxes due to less favorable geographic revenue mix.
Financial Tables Summary
The financial tables provided in the earnings report show comparisons of quarterly results to prior periods, including sequential quarterly and year-over-year changes. The tables also provide a full reconciliation between the GAAP and non-GAAP measures. The GAAP net revenue for Q1 FY 2024 was $247.9 million, down 20.1% year-over-year. The GAAP operating margin was 6.5%, down 960 bps year-over-year. The GAAP net income per share was $0.04, down 71.4% year-over-year.
Outlook for Q2 FY 2024
For the second quarter of fiscal 2024 ending December 30, 2023, Viavi Solutions Inc (NASDAQ:VIAV) expects net revenue to be between $240 million to $260 million and non-GAAP EPS to be between $0.06 to $0.10.
Explore the complete 8-K earnings release (here) from Viavi Solutions Inc for further details.
This article first appeared on GuruFocus.
