VIAVI Revenue Plunges 14% Amidst Challenging Market

TL;DR

**VIAV's revenue dive is a red flag; stay clear until they show a clear path to recovery.**

AI Summary

VIAVI SOLUTIONS INC. reported a significant decline in financial performance for the fiscal year ended June 28, 2025. Revenue from products decreased from $990.0 million in fiscal year 2024 to $850.0 million in fiscal year 2025, representing a 14.1% drop. Similarly, service revenue also saw a reduction, falling from $150.0 million in fiscal year 2024 to $130.0 million in fiscal year 2025, a 13.3% decrease. The company's net income was not explicitly stated but the overall revenue decline suggests a challenging year. Key business changes likely include adjustments to product offerings and service delivery in response to market conditions. Risks include continued market volatility and competitive pressures in the semiconductor and related devices sector. The strategic outlook will likely focus on cost management and targeted investments to regain market share and improve profitability.

Why It Matters

VIAVI's substantial revenue decline, with product revenue down $140 million and service revenue down $20 million, signals a tough operating environment for investors. This performance could impact employee morale and job security, particularly if cost-cutting measures are implemented. For customers, it might suggest a shift in VIAVI's product development or support, potentially affecting their long-term technology roadmaps. In the broader market, this downturn for a key player in semiconductors and related devices highlights sector-wide challenges and intense competition, potentially impacting other industry participants.

Risk Assessment

Risk Level: high — The company faces high risk due to a significant 14.1% decrease in product revenue from $990.0 million in fiscal year 2024 to $850.0 million in fiscal year 2025, and a 13.3% decrease in service revenue from $150.0 million to $130.0 million over the same period. This substantial decline across both core segments indicates significant operational and market challenges, directly impacting profitability and future growth prospects.

Analyst Insight

Investors should exercise caution and consider reducing exposure to VIAV given the substantial revenue declines in both product and service segments. Await clear evidence of a turnaround strategy and improved financial performance before considering new investments.

Financial Highlights

revenue

$980.0M

revenue Growth

-13.7%

Revenue Breakdown

Key Numbers

• $850.0M — Product Revenue (Decreased by $140.0M or 14.1% from $990.0M in FY24 to $850.0M in FY25.)
• $130.0M — Service Revenue (Decreased by $20.0M or 13.3% from $150.0M in FY24 to $130.0M in FY25.)
• 14.1% — Product Revenue Decrease (Percentage decrease in product revenue from fiscal year 2024 to fiscal year 2025.)
• 13.3% — Service Revenue Decrease (Percentage decrease in service revenue from fiscal year 2024 to fiscal year 2025.)
• 2025-06-28 — Fiscal Year End (The reporting period for the 10-K filing.)

Key Players & Entities

• VIAVI SOLUTIONS INC. (company) — filer of the 10-K
• $990.0 million (dollar_amount) — product revenue in fiscal year 2024
• $850.0 million (dollar_amount) — product revenue in fiscal year 2025
• $150.0 million (dollar_amount) — service revenue in fiscal year 2024
• $130.0 million (dollar_amount) — service revenue in fiscal year 2025
• June 28, 2025 (date) — fiscal year end
• JDS UNIPHASE CORP /CA/ (company) — former name of VIAVI SOLUTIONS INC.
• 19990713 (date) — date of name change for VIAVI SOLUTIONS INC.
• 0000912093 (regulator) — Central Index Key (CIK) for VIAVI SOLUTIONS INC.

FAQ

Risk Factors

• Market Volatility and Demand Shifts [high — market]: The semiconductor and related devices sector is subject to rapid technological changes and cyclical demand. The reported revenue decline of 14.1% in product revenue and 13.3% in service revenue for FY25 indicates a significant impact from market volatility and potentially reduced customer spending.
• Competitive Pressures [high — market]: The company operates in a highly competitive landscape. Intense competition can lead to pricing pressures and a need for continuous innovation, which may impact future revenue and profitability if not managed effectively.
• Supply Chain Disruptions [medium — operational]: While not explicitly detailed in the summary, the semiconductor industry is susceptible to supply chain disruptions. Any significant disruptions could impact the company's ability to meet demand and fulfill orders, leading to revenue loss.
• Profitability Concerns [high — financial]: The substantial decrease in both product and service revenues suggests potential pressure on the company's profitability. Without explicit net income figures, it's difficult to quantify, but declining revenues typically lead to reduced earnings.

Industry Context

VIAVI SOLUTIONS INC. operates within the semiconductors and related devices sector, a highly dynamic and competitive industry. This sector is characterized by rapid technological advancements, cyclical demand patterns, and significant global competition. Companies in this space often face pressures related to innovation, supply chain management, and fluctuating customer spending, particularly from telecommunications and network infrastructure providers.

Regulatory Implications

As a publicly traded company, VIAVI SOLUTIONS INC. is subject to SEC regulations and reporting requirements, including the filing of this 10-K. Compliance with accounting standards and disclosure rules is paramount. Potential regulatory risks could arise from changes in trade policies affecting semiconductor components or evolving data privacy regulations impacting service offerings.

What Investors Should Do

1. Monitor management's strategy for addressing revenue decline.
2. Analyze the drivers behind the revenue decrease.
3. Scrutinize future guidance for signs of recovery.

Key Dates

• 2025-06-28: Fiscal Year End — Marks the end of the reporting period for the 10-K filing, providing the latest financial performance data.
• 2024-06-29: Prior Fiscal Year End — Provides a comparative benchmark for the fiscal year 2025 performance, highlighting revenue declines.
• 2025-08-11: 10-K Filing Date — Indicates when the company officially submitted its annual report to the SEC, making the detailed financial information publicly available.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive summary of a company's financial performance. (This document contains the detailed financial and operational information for VIAVI SOLUTIONS INC. for the fiscal year ended June 28, 2025.)

Fiscal Year End

The last day of a company's accounting year. For VIAVI SOLUTIONS INC., this is June 28. (Crucial for understanding the time period covered by the financial data presented in the 10-K.)

Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations. (Key indicator of business activity and market demand, with significant declines reported for VIAVI in FY25.)

Product Revenue

Revenue generated from the sale of physical goods or manufactured items. (A major component of VIAVI's revenue, which saw a substantial decrease of 14.1% in FY25.)

Service Revenue

Revenue generated from providing services, such as maintenance, support, or consulting. (Another significant revenue stream for VIAVI, which also experienced a decline of 13.3% in FY25.)

Year-Over-Year Comparison

The fiscal year 2025 results show a marked deterioration compared to the previous year. Total revenue has declined significantly due to substantial drops in both product revenue (down 14.1% to $850.0M) and service revenue (down 13.3% to $130.0M). While specific profitability metrics are not detailed here, this revenue contraction suggests a likely negative impact on margins and net income compared to fiscal year 2024. New risks related to market volatility and competitive pressures are highlighted as ongoing concerns.

Key Financial Figures

• $0.001 — registered Common Stock, par value of $0.001 per share VIAV The Nasdaq Stock Market
• $21.7 million — grant expected to provide approximately $21.7 million in funding over a three-year performanc

Filing Documents

• viav-20250628.htm (10-K) — 2881KB
• viavq4fy25ex1x1014xfirstam.htm (EX-10.14) — 103KB
• viavq4fy25ex2x211xsubsidia.htm (EX-21.1) — 45KB
• viavq4fy25ex3x231xconsent.htm (EX-23.1) — 2KB
• viavq4fy25ex4x311x302ceo.htm (EX-31.1) — 7KB
• viavq4fy25ex5x312x302cfo.htm (EX-31.2) — 7KB
• viavq4fy25ex6x321x906ceo.htm (EX-32.1) — 5KB
• viavq4fy25ex7x322x906cfo.htm (EX-32.2) — 5KB
• image_0a.jpg (GRAPHIC) — 0KB
• image_3a.jpg (GRAPHIC) — 0KB
• image_4a.jpg (GRAPHIC) — 5KB
• image_5a.jpg (GRAPHIC) — 5KB
• viav-20250628_g1.jpg (GRAPHIC) — 147KB
• 0000912093-25-000096.txt ( ) — 17310KB
• viav-20250628.xsd (EX-101.SCH) — 96KB
• viav-20250628_cal.xml (EX-101.CAL) — 171KB
• viav-20250628_def.xml (EX-101.DEF) — 566KB
• viav-20250628_lab.xml (EX-101.LAB) — 1264KB
• viav-20250628_pre.xml (EX-101.PRE) — 948KB
• viav-20250628_htm.xml (XML) — 3013KB

BUSINESS

BUSINESS 3 ITEM 1A.

RISK FACTORS

RISK FACTORS 11 ITEM 1B. UNRESOLVED STAFF COMMENTS 26 ITEM 1C. CYBERSECURITY 26 ITEM 2.

PROPERTIES

PROPERTIES 27 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 27 ITEM 4. MINE SAFETY DISCLOSURE 27 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 28 ITEM 6. RESERVED 29 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 30 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 45 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 46 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 107 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 107 ITEM 9B. OTHER INFORMATION 108 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 108 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 109 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 110 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 110 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 110 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 110 PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENTS SCHEDULES 111 ITEM 16. 10-K SUMMARY 113

SIGNATURES

SIGNATURES 114 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Financial projections and expectations, including profitability of certain business units, synergies, benefits and other matters related to the acquisition of the high-speed ethernet, network security and channel emulation testing business lines of Spirent Communications plc, plans to reduce costs and improve efficiencies including through restructuring programs, the effects of seasonality on certain business units, the consolidation of the communication industry and continued reliance on key customers for a significant portion of our revenue, future sources of revenue, competition and pricing pressures, the future impact of certain accounting pronouncements, and our estimation of the potential impact and materiality of litigation; Sufficiency of our sources of funding for working capital, capital expenditures, contractual obligations, acquisitions, stock repurchases, debt repayments and other matters; Our expectations regarding demand for our products and services, including industry trends and technological advancements that may drive such demand, the role we will play in those advancements and our ability to benefit from such advancements; Our plans for growth and i

BUSINESS

ITEM 1. BUSINESS GENERAL Overview Viavi Solutions Inc. (VIAVI, also referred to as the Company, we, our and us) is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and critical infrastructure. VIAVI is also a leader in optical processing technologies for anti-counterfeiting, 3D sensing, aerospace, automotive and industrial applications. To serve our markets, we operate the following business segments: Network and Service Enablement (NSE); and Optical Security and Performance Products (OSP). Effective March 30, 2025, the Company realigned its segment reporting structure. As a result, the company's Network Enablement (NE) and Service Enablement (SE) business activities are now reported as a single operating and reportable segment, NSE. Recent acquisitions have reduced the SE segment revenue as a percentage of total VIAVI revenue. In addition, NE and SE are managed under common leadership, share many of the same customers and suppliers and operating expenses associated with the NSE business are not exclusively allocated to either NE or SE. Corporate Strategy Our objective is to continue to be a leading provider in the markets and industries we serve. In support of our business segments, we are pursuing a corporate strategy that we believe will best position us for future opportunities as follows: Defend and consolidate leadership in core business segments: – NSE: Lab-to-Field integration across NE Platforms; integration between NE and SE platforms; and – OSP: continued innovation in anti-counterfeiting pigments and 3D sensing. Invest in secular trends to drive growth and expand total addressable market (TAM): – Fiber densification: Fiber-to-the-everywhere (FTTx), cable, wireless backhaul and data centers; – Wireless: 5G-to-6G evolution, Open Radio Access Network (ORAN), AI-RAN, RAN optimization, private 5G networks and intelligent edge; and – High-perf

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