Technology
VIAVI Announces Third Quarter Fiscal 2025 Results
Published
1 year agoon
By
CHANDLER, Ariz., May 1, 2025 /PRNewswire/ — VIAVI (NASDAQ: VIAV) today reported results for its third quarter ended March 29, 2025 with the following highlights.
Third Quarter
Net revenue of $284.8 million, up $38.8 million or 15.8% year-over-yearGAAP operating margin of 3.0%, up 780 bps year-over-yearNon-GAAP operating margin of 16.7%, up 740 bps year-over-yearGAAP net income of $19.5 million, up $44.1 million or 179.3% year-over-yearNon-GAAP net income of $33.9 million, up $20.7 million or 156.8% year-over-year GAAP diluted earnings per share (EPS) of $0.09, up $0.20 or 181.8% year-over-yearNon-GAAP diluted EPS of $0.15, up $0.09 or 150.0% year-over-year
“VIAVI delivered strong results driven by strength in both NSE and OSP. To date, we have been successful in managing through the rapidly changing macro environment and remain optimistic regarding the continued recovery and growth in our end markets,” 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.”
Third Quarter Ended March 29, 2025
GAAP Results
Q3
Q2
Q3
Change
FY 2025
FY 2025
FY 2024
Q/Q
Y/Y
Net revenue
$ 284.8
$ 270.8
$ 246.0
5.2 %
15.8 %
Gross margin
56.4 %
59.4 %
56.1 %
(300) bps
30 bps
Operating margin
3.0 %
8.2 %
(4.8) %
(520) bps
780 bps
Income (loss) from operations
$ 8.5
$ 22.2
$ (11.9)
(61.7) %
171.4 %
Net income (loss) per share
0.09
0.04
(0.11)
125.0 %
181.8 %
Non-GAAP Results
Q3
Q2
Q3
Change
FY 2025
FY 2025
FY 2024
Q/Q
Y/Y
Gross margin
60.0 %
61.1 %
57.9 %
(110) bps
210 bps
Operating margin
16.7 %
14.9 %
9.3 %
180 bps
740 bps
Income from operations
$ 47.7
$ 40.4
$ 23.0
18.1 %
107.4 %
Earnings per share
0.15
0.13
0.06
15.4 %
150.0 %
Net Revenue by Segment
Q3
Q2
Q3
Change
FY 2025
FY 2025
FY 2024
Q/Q
Y/Y
Network Enablement
$ 188.0
$ 179.0
$ 151.7
5.0 %
23.9 %
Service Enablement
20.2
20.9
18.1
(3.3) %
11.6 %
Optical Security and Performance Products
76.6
70.9
76.2
8.0 %
0.5 %
Total
$ 284.8
$ 270.8
$ 246.0
5.2 %
15.8 %
Americas, Asia-Pacific and EMEA customers represented 38.0%, 35.4% and 26.6%, respectively, of total net revenue for the quarter ended March 29, 2025.As of March 29, 2025, the Company held $400.2 million in total cash, short-term investments and short-term restricted cash.As of March 29, 2025, the Company had $250 million aggregate principal amount of 1.625% Senior Convertible Notes and $400 million aggregate principal amount of 3.75% Senior Notes with a total net carrying value of $640.9 million.During the fiscal quarter ended March 29, 2025, the Company generated $7.8 million of cash flows from operations.
Business Outlook for the Fourth Quarter of Fiscal 2025
For the fourth quarter of fiscal 2025 ending June 28, 2025, the Company expects net revenue to be between $278 million to $290 million and non-GAAP EPS to be between $0.10 to $0.13.
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 May 1, 2025 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 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 industry and customer base; (d) competitive pressures; (e) 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 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; (f) continued decline of average selling prices across our businesses; (g) notable seasonality and a significant level of in-quarter book-and-ship business; (h) various product and manufacturing transfers, site consolidations, product discontinuances and restructuring and workforce reduction plans, including anticipated cost savings associated with such plans; (i) challenges in execution of business strategy; (j) challenges integrating the businesses the Company has acquired and realizing all of the expected benefits and savings; (k) supply chain and materials constraints and the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; (l) 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 Arizona, as well as wildfires in Northern California and related blackouts and power outages in that region; (m) the uncertain and ongoing impact to our supply chain of geopolitical tensions, such as the ongoing conflict between Russia and Ukraine and the instability in the Middle East, evolving global trade and tariff negotiations and the uncertain tariff landscape, sanctions and other trade measures imposed by domestic and foreign governments, adverse actions and escalating tensions with foreign governments, including China, and the possibility of escalation of “trade wars,” cyber-attacks, and retaliatory measures; (n) the impact of infectious disease outbreaks, epidemics, and pandemics on our financial results, revenues, customer demand, business operations and manufacturing and on the business operations of our customers, contract manufacturers and suppliers; and (o) inherent uncertainty related to global markets, including inflationary pressures, recessions, tightening monetary policy and liquidity, and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on the risks and uncertainties associated with the Company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements. We have not filed our Form 10-Q for the quarter ended March 29, 2025. As a result, all financial results described in this earnings release should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time we file the Form 10-Q.
Contact Information
Investors:
Vibhuti Nayar
408-404-6305
vibhuti.nayar@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
Nine Months Ended
March 29, 2025
March 30, 2024
March 29, 2025
March 30, 2024
Net revenue
$ 284.8
$ 246.0
$ 793.8
$ 748.4
Cost of revenues
118.0
104.6
323.5
307.7
Amortization of acquired technologies
6.1
3.5
12.7
10.4
Gross profit
160.7
137.9
457.6
430.3
Operating expenses:
Research and development
50.0
50.0
151.5
149.4
Selling, general and administrative
101.3
98.2
259.7
250.2
Amortization of other intangibles
1.2
1.5
3.3
5.0
Restructuring and related (benefits) charges
(0.3)
0.1
0.9
(0.8)
Total operating expenses
152.2
149.8
415.4
403.8
Income (loss) from operations
8.5
(11.9)
42.2
26.5
Interest and other income, net
2.2
4.0
9.3
18.0
Interest expense
(7.5)
(7.7)
(22.5)
(23.4)
Income (loss) before income taxes
3.2
(15.6)
29.0
21.1
(Benefit from) provision for income taxes
(16.3)
9.0
2.2
25.2
Net income (loss)
$ 19.5
$ (24.6)
$ 26.8
$ (4.1)
Net income (loss) per share:
Basic
$ 0.09
$ (0.11)
$ 0.12
$ (0.02)
Diluted
$ 0.09
$ (0.11)
$ 0.12
$ (0.02)
Shares used in per share calculations:
Basic
222.6
223.0
222.2
222.5
Diluted
226.9
223.0
225.2
222.5
The preliminary financial statements are estimated based on our current information.
VIAVI SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
PRELIMINARY
March 29, 2025
June 29, 2024
ASSETS
Current assets:
Cash and cash equivalents
$ 374.2
$ 471.3
Short-term investments
22.6
19.9
Restricted cash
3.4
5.0
Accounts receivable, net
252.8
213.1
Inventories, net
116.2
96.5
Prepayments and other current assets
66.2
70.7
Total current assets
835.4
876.5
Property, plant and equipment, net
228.1
228.2
Goodwill, net
585.4
452.9
Intangibles, net
139.7
38.2
Deferred income taxes
83.8
82.5
Other non-current assets
60.8
58.0
Total assets
$ 1,933.2
$ 1,736.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 67.2
$ 50.4
Accrued payroll and related expenses
55.6
48.2
Deferred revenue
64.5
65.7
Accrued expenses
25.7
25.3
Short-term debt
244.8
—
Other current liabilities
86.9
57.5
Total current liabilities
544.7
247.1
Long-term debt
396.1
636.0
Other non-current liabilities
263.6
171.6
Total liabilities
1,204.4
1,054.7
Total stockholders’ equity
728.8
681.6
Total liabilities and stockholders’ equity
$ 1,933.2
$ 1,736.3
The preliminary financial statements are estimated based on our current information.
VIAVI SOLUTIONS INC.
REPORTABLE SEGMENT INFORMATION
(in millions, unaudited)
PRELIMINARY
Three Months Ended March 29, 2025
Network and Service Enablement
Network
Enablement
Service
Enablement
Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP Measures
Net revenue
$ 188.0
$ 20.2
$ 208.2
$ 76.6
$ —
$ 284.8
Gross profit
$ 119.2
$ 12.1
$ 131.3
$ 39.5
$ (10.1)
$ 160.7
Gross margin
63.4 %
59.9 %
63.1 %
51.6 %
56.4 %
Operating income
$ 21.7
$ 26.0
$ (39.2)
$ 8.5
Operating margin
10.4 %
33.9 %
3.0 %
Three Months Ended March 30, 2024
Network and Service Enablement
Network
Enablement
Service
Enablement
Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP Measures
Net revenue
$ 151.7
$ 18.1
$ 169.8
$ 76.2
$ —
$ 246.0
Gross profit
$ 93.3
$ 11.0
$ 104.3
$ 38.2
$ (4.6)
$ 137.9
Gross margin
61.5 %
60.8 %
61.4 %
50.1 %
56.1 %
Operating (loss) income
$ (3.1)
$ 26.1
$ (34.9)
$ (11.9)
Operating margin
(1.8) %
34.3 %
(4.8) %
Nine Months Ended March 29, 2025
Network and Service Enablement
Network
Enablement
Service
Enablement
Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP Measures
Net revenue
$ 508.6
$ 58.9
$ 567.5
$ 226.3
$ —
$ 793.8
Gross profit
$ 320.9
$ 37.0
$ 357.9
$ 119.0
$ (19.3)
$ 457.6
Gross margin
63.1 %
62.8 %
63.1 %
52.6 %
57.6 %
Operating income
$ 31.8
$ 80.2
$ (69.8)
$ 42.2
Operating margin
5.6 %
35.4 %
5.3 %
Nine Months Ended March 30, 2024
Network and Service Enablement
Network
Enablement
Service
Enablement
Network and
Service
Enablement
Optical Security
and Performance
Products
Other Items (1)
Consolidated
GAAP Measures
Net revenue
$ 457.2
$ 62.6
$ 519.8
$ 228.6
$ —
$ 748.4
Gross profit
$ 285.1
$ 41.3
$ 326.4
$ 117.9
$ (14.0)
$ 430.3
Gross margin
62.4 %
66.0 %
62.8 %
51.6 %
57.5 %
Operating income
$ 4.8
$ 82.7
$ (61.0)
$ 26.5
Operating margin
0.9 %
36.2 %
3.5 %
(1) See Reconciliation of GAAP Measures from Continuing Operations to Non-GAAP Measures below for details of Other Items.
The preliminary financial schedules are estimated based on our current information.
Use of Non-GAAP (Adjusted) Financial Measures
The Company provides non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP EPS financial measures as supplemental information regarding the Company’s operational performance and believes providing this additional information allows investors to see Company results through the eyes of management, better understand its financial performance and evaluate the efficacy of the methodology used by management to measure such performance. The Company uses the measures disclosed in this Report 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 represents 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 and acquisition related expenses and other activities that management believes are not reflective of such ordinary, ongoing and core operating activities. 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) amortization expense related to inventory step-up (vii) changes in fair value of contingent consideration liabilities, (viii) acquisition related transaction and integration costs related to acquired entities, (ix) litigation and legal settlements and (x) other charges unrelated to our core operating performance comprised mainly of 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 EPS, 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, when 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, when calculating non-GAAP net income and non-GAAP EPS.
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, 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 the United States. The GAAP measure most directly comparable to non-GAAP net income is net income. The GAAP measure most directly comparable to non-GAAP EPS is net income per share. The Company believes these GAAP measures alone are not fully indicative of its core operating expenses and performance and that providing non-GAAP financial measures in conjunction with GAAP measures provides valuable supplemental information regarding the Company’s overall performance.
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
Nine Months Ended
March 29, 2025
March 30, 2024
March 29, 2025
March 30, 2024
Gross
Profit
Gross
Margin
Gross
Profit
Gross
Margin
Gross
Profit
Gross
Margin
Gross
Profit
Gross
Margin
GAAP measures
$ 160.7
56.4 %
$ 137.9
56.1 %
$ 457.6
57.6 %
$ 430.3
57.5 %
Stock-based compensation
2.0
0.7 %
1.2
0.4 %
4.5
0.6 %
3.7
0.5 %
Other charges (benefits) unrelated to core operating performance
0.3
0.1 %
(0.1)
— %
0.4
0.1 %
(0.1)
— %
Amortization of inventory step-up
1.7
0.6 %
—
— %
1.7
0.2 %
—
— %
Amortization of intangibles
6.1
2.2 %
3.5
1.4 %
12.7
1.6 %
10.4
1.4 %
Total related to Cost of Revenues
10.1
3.6 %
4.6
1.8 %
19.3
2.5 %
14.0
1.9 %
Non-GAAP measures
$ 170.8
60.0 %
$ 142.5
57.9 %
$ 476.9
60.1 %
$ 444.3
59.4 %
Three Months Ended
Nine Months Ended
March 29, 2025
March 30, 2024
March 29, 2025
March 30, 2024
Operating
Income
Operating
Margin
Operating
(Loss)
Income
Operating
Margin
Operating
Income
Operating
Margin
Operating
Income
Operating
Margin
GAAP measures
$ 8.5
3.0 %
$ (11.9)
(4.8) %
$ 42.2
5.3 %
$ 26.5
3.5 %
Stock-based compensation
14.1
4.9 %
12.8
5.2 %
40.5
5.1 %
36.6
4.9 %
Change in fair value of contingent liability
2.5
0.9 %
0.6
0.2 %
(4.9)
(0.6) %
(7.8)
(1.0) %
Acquisition and integration related charges
13.3
4.7 %
16.0
6.5 %
16.7
2.1 %
16.6
2.2 %
Other charges unrelated to core operating performance (1)
0.6
0.2 %
0.4
0.2 %
0.2
— %
1.0
0.1 %
Amortization of inventory step-up
1.7
0.6 %
—
— %
1.7
0.2 %
—
— %
Amortization of intangibles
7.3
2.5 %
5.0
2.0 %
16.0
2.0 %
15.4
2.1 %
Restructuring and related (benefits) charges
(0.3)
(0.1) %
0.1
— %
0.9
0.1 %
(0.8)
(0.1) %
Litigation settlement
—
— %
—
— %
(1.3)
(0.1) %
—
— %
Total related to Cost of Revenues and Operating Expenses
39.2
13.7 %
34.9
14.1 %
69.8
8.8 %
61.0
8.2 %
Non-GAAP measures
$ 47.7
16.7 %
$ 23.0
9.3 %
$ 112.0
14.1 %
$ 87.5
11.7 %
Three Months Ended
Nine Months Ended
March 29, 2025
March 30, 2024
March 29, 2025
March 30, 2024
Net
Income
Diluted
EPS
Net (Loss)
Income
Diluted
EPS
Net Income
Diluted
EPS
Net (Loss)
Income
Diluted
EPS
GAAP measures
$ 19.5
$ 0.09
$ (24.6)
$ (0.11)
$ 26.8
$ 0.12
$ (4.1)
$ (0.02)
Items reconciling GAAP Net Income (Loss) and EPS to Non-GAAP Net Income and EPS:
Stock-based compensation
14.1
0.06
12.8
0.06
40.5
0.18
36.6
0.16
Change in fair value of contingent liability
2.5
0.01
0.6
—
(4.9)
(0.02)
(7.8)
(0.03)
Acquisition and integration related charges
13.3
0.06
16.0
0.07
16.7
0.08
16.6
0.07
Other charges unrelated to core operating performance (1)
0.6
—
0.4
—
0.2
—
1.0
0.01
Amortization of inventory step-up
1.7
0.01
—
—
1.7
0.01
—
—
Amortization of intangibles
7.3
0.03
5.0
0.02
16.0
0.07
15.4
0.07
Restructuring and related (benefits) charges
(0.3)
—
0.1
—
0.9
—
(0.8)
(0.01)
Litigation settlement
—
—
0.7
—
(1.3)
(0.01)
(6.3)
(0.03)
Non-cash interest expense and other expense
1.3
0.01
1.3
0.01
3.5
0.02
3.7
0.02
(Benefit from) provision for income taxes
(26.1)
(0.12)
0.9
0.01
(24.4)
(0.11)
2.1
0.01
Total related to Net Income and EPS
14.4
0.06
37.8
0.17
48.9
0.22
60.5
0.27
Non-GAAP measures
$ 33.9
$ 0.15
$ 13.2
$ 0.06
$ 75.7
$ 0.34
$ 56.4
$ 0.25
Shares used in per share calculation for Non-GAAP EPS
226.9
224.6
225.2
224.1
Note: Certain totals may not add due to rounding.
(1) Included in the nine months ended March 29, 2025 is a gain of $0.9 million on the sale of assets previously classified as held for sale and other charges unrelated to core operating performance of $1.1 million.
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
Nine Months Ended
March 29, 2025
March 30, 2024
March 29, 2025
March 30, 2024
GAAP Net Income (Loss)
$ 19.5
$ (24.6)
$ 26.8
$ (4.1)
Interest and other income, net (1)
(2.2)
(4.0)
(9.3)
(18.0)
Interest expense
7.5
7.7
22.5
23.4
(Benefit from) provision for income taxes
(16.3)
9.0
2.2
25.2
Depreciation
9.3
9.6
28.8
29.1
Amortization
7.3
5.0
16.0
15.4
EBITDA
25.1
2.7
87.0
71.0
Restructuring and related (benefits) charges
(0.3)
0.1
0.9
(0.8)
Stock-based compensation
14.1
12.8
40.5
36.6
Change in fair value of contingent liability
2.5
0.6
(4.9)
(7.8)
Acquisition and integration related charges
13.3
0.6
16.7
0.6
Other charges (benefits) unrelated to core operating performance (2)
0.6
15.8
(1.3)
16.5
Amortization of inventory step-up
1.7
—
1.7
—
Adjusted EBITDA
$ 57.0
$ 32.6
$ 140.6
$ 116.1
Note: Certain totals may not add due to rounding.
(1) Includes favorable litigation settlement of $7.3 million recorded as a gain to Interest and other income, net in the Consolidated Statements of Operations for the nine months ended March 30, 2024.
(2) Included in the nine months ended March 29, 2025 is a gain on litigation settlement of $1.3 million, a gain on the sale of assets previously classified as held for sale of $0.9 million and other charges unrelated to core operating performance of $0.9 million.
The preliminary financial schedules are estimated based on our current information.
View original content to download multimedia:https://www.prnewswire.com/news-releases/viavi-announces-third-quarter-fiscal-2025-results-302444293.html
SOURCE VIAVI Financials
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BEIJING, Oct. 18, 2026 /PRNewswire/ — An interview from China.org.cn with Wang Xiaohui and David Ferguson on the Long March:
David Ferguson:
This is the Yudu River. One dusk in October, 1934, more than 86,000 soldiers of the Red Army crossed this river and embarked on the Long March, a two-year saga that has left its mark in history.
Yet, lingering here by the river, I am struck by a simple question: If you have faith in a bright future, and reality seems to thwart you at every turn, where do you find the moral strength to keep believing?
Wang Xiaohui:
At dusk on Oct. 17, 1934, an army of more than 86,000 troops gathered along the banks of the Yudu River. Over 800 boats of all sizes floated on the water, bound together with planks collected from villagers’ home gates, timber beams, and even coffin boards reserved for elderly locals. The people of Yudu built this pontoon bridge, determined to help the army led by the Communist Party of China (CPC) cross the river.
At that time, no one knew that the great expedition embarked upon by the banks of the Yudu River would go on to transform China and exert far-reaching influence across the world.
China in the 1920s and 1930s was plagued by chaos and despair.
The Kuomintang (KMT), the ruling party back then, was not capable of unifying the nation, leaving warlords locked in endless fighting. In 1931, Japanese invaders launched an assault on northeastern China, beginning their invasion. Crushed under domestic turbulence and foreign aggression, countless civilians were displaced, with many even starving to death on the streets; in certain regions, severe drought resulted in zero harvests, yet the farmers were forced to pay land taxes assessed for more than a decade into the future.
Amid this turmoil, the only glimmer of hope for the Chinese nation was kindled by the revolution ignited by the Communist Party of China.
The CPC, dedicated to winning liberation for the people and national independence, built contingents of workers’ and peasants’ Red Army troops and revolutionary base areas across the countryside. Impoverished farmers were granted land ownership, as well as unprecedented political dignity. On Nov. 7, 1931, the Chinese Soviet Republic was officially proclaimed in Ruijin, then a small village in southeastern China’s Jiangxi Province, establishing a Soviet system under which workers, peasants and soldiers elected representatives to run regional affairs and make policies.
The communist ideal of a fair society free from exploitation and equality for all blazed like a spark in the darkness; it kindled hopes among impoverished Chinese and became the wellspring of faith that enabled the Red Army — a force made up of poor workers and peasants — to overcome all hardships in the days to come.
Yet, bright as the spark was, it burned thin and fragile at times. Could this flame still endure when the ideals it carried were repeatedly battered by harsh reality?
In September 1933, flocks of warplanes clouded the skies over the Red Army’s revolutionary base areas. By then, Japanese invaders were steadily advancing towards North China, but Chiang Kai-shek’s KMT turned a blind eye to the looming national crisis. They mobilized over a million troops and more than 200 aircraft to launch a massive offensive at the Red Army’s base areas. Over the previous three years, Chiang Kai-shek had mounted four major military “encirclement” campaigns aimed at exterminating the Red Army, but all ended in failure. He was desperate for a pivotal victory to restore his prestige and to wipe out the CPC and the Red Army.
At the time, the commander of the Red Army abandoned mobile warfare tactics pioneered by Mao Zedong and other commanders, opting instead for rigid positional warfare involving conventional head-on clashes. But the reality was, some Red Army units didn’t even possess a single light machine gun; how could they confront the heavily-armed KMT army head-on?
Zhong Ming, a Red Army medic, could never erase the memories of gravely wounded soldiers being carried to his aid station. He remembered how a soldier whose chest was blown open begged his comrades to end his life. At the frontline, a whole battalion of Red Army soldiers religiously followed orders to defend crude earth-and-wood bunkers, but under the constant barrage of KMT artillery and airstrikes, every soldier in the battalion laid down their lives; not a single man survived.
What’s more heart-wrenching is that no matter how fearlessly the Red Army fought, the steep imbalance in military strength, paired with erroneous military command led to irreversible losses. By October 1934, the KMT’s iron-clad encirclement closed menacingly around Ruijin.
Faced with this dead-end, what decision would you make?
This stood as the most agonizing decision for the Red Army. The biggest challenge lay not in sacrificing one’s life for an ideal, but in finding a way to keep the revolutionary cause alive.
To stay meant defeat — the Red Army had no room to maneuver within the Central Revolutionary Base Area. To break through the encirclement, however slim the odds, offered a fighting chance. Preserving the Red Army as a living force mattered much more than clinging to isolated strongholds. Where the spark survives, the path ahead remains lit.
The air already turned chilly in October. Units of the Central Red Army assembled in Yudu to prepare for a strategic shift. The plan was kept strictly classified; none of the soldiers knew they were evacuating the base areas, only sensing an unusual vibe.
At dusk on Oct. 17, crowds lined up at the Yudu riverbank. Tens of thousands of villagers flocked from every corner to see the Red Army off. They walked alongside the marching columns, slipping food like eggs and glutinous rice balls into the soldiers’ pockets, praying for their swift homecoming.
The main force of the Central Red Army set off. Within days, they left behind revolutionary base areas where they had survived, grown and taken root. No one anticipated that the journey they embarked on would become the Long March, a trek spanning over 10 provinces. Still less could anyone imagine that this journey would ultimately pave the way for a brand-new China.
Looking back on this chapter of history, many claim that the Red Army only set out on this expedition because the enemies left them no other choice. To a degree, yes, the Long March was indeed a forced strategic shift, yet this fact does nothing to diminish its greatness and glory.
The ordinary Red Army soldiers had no idea how far they would march, or where they were heading. But they clung firmly to their founding mission: to deliver liberation for the people and independence to the nation. This unswerving conviction kept them from disintegrating through countless perils, sustaining them as they marched into the unknown with resolve.
David Ferguson:
I now realize that faith and ideals untested by harsh reality may have no true substance.
Since its founding, the Communist Party of China has always upheld the realization of communism as its fundamental goal. Despite devastating losses and extreme adversity, the Red Army continued to press forward resolutely and never faltered. Its inner strength came from an unshakable belief in the cause, an unwavering commitment to the founding aspiration, and a profound sense of mission. The Red Army was never fleeing pursuers in search of safety; it was marching forward to a future in which it had a steadfast belief.
Wang Xiaohui:
The Long March went on for two years. The Red Army trekked 25,000 li across some of China’s harshest terrain, but they kept their heads high, seeking hope amid despair and marching towards light through unending darkness. The lofty ideals and sense of mission they upheld have also become the torch that guides generations of CPC members in the following centennial, tempering them into steel as they press forward unswervingly toward national rejuvenation.
That spark lit along the Yudu River has never dimmed since.
China Mosaic
http://www.china.org.cn/video/node_7230027.htm
Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/16/content_118736835.shtml
View original content to download multimedia:https://www.prnewswire.com/news-releases/faith-the-spark-born-by-the-yudu-riverside-302911977.html
SOURCE China.org.cn
Technology
Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026
Published
5 hours agoon
October 18, 2026By
SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.
Spotlight: 1.6T LPO Performance & High Customer Traction
AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:
Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.
Surging Market Interest
Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.
Overview of Other Innovations at OCP 2026
In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:
12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.
About Linktel Technologies
Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.
For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.
View original content:https://www.prnewswire.com/news-releases/linktel-technologies-highlights-breakthrough-1-6t-lpo-performance–strong-market-pull-at-ocp-2026–302911973.html
SOURCE Linktel Technologies
Technology
Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair
Published
6 hours agoon
October 18, 2026By
GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.
Smart Life Solutions Address an Aging and Globalized Market
A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.
For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.
Service Robots Demonstrate Expanding Real-World Applications
The Service Robot Zone remains one of the fair’s most popular attractions in this edition.
Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.
More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.
The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.
As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.
For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16
View original content to download multimedia:https://www.prnewswire.com/news-releases/advanced-manufacturing-in-focus-smart-life-and-robotics-take-the-spotlight-at-140th-canton-fair-302911955.html
SOURCE Canton Fair
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