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Mar 28, 2020
Viavi Q3 2020 Earnings Report
VIAVI reported a net revenue of $256.2 million and non-GAAP EPS of $0.14 for Q3 2020.
Key Takeaways
VIAVI's Q3 2020 revenue was below guidance due to the COVID-19 pandemic, but disciplined OPEX management allowed them to meet non-GAAP EPS guidance. The NSE segment was most affected by the pandemic, while the OSP segment saw some late-quarter customer order increases. The company has a strong balance sheet with over $530 million in cash and a $300 million line of credit.
Net revenue was $256.2 million, a decrease of 3.4% year-over-year.
GAAP operating margin was 3.6%, up 60 bps year-over-year.
Non-GAAP operating margin was 14.8%, up 10 bps year-over-year.
Non-GAAP EPS was $0.14, up $0.01 or 7.7% year-over-year.
Viavi
Viavi
Viavi Revenue by Segment
Revenue by Segment
Optical Security and Performance Products Revenue
CapyFin.com Forward Guidance
Due to macroeconomic and business uncertainty as a result of the COVID-19 global pandemic, VIAVI is not providing fiscal fourth quarter 2020 guidance. Fiscal fourth quarter revenue is expected to be sequentially flat to slightly better than fiscal third quarter 2020 driven by seasonal strength in NSE.
Positive Outlook
- Fiscal fourth quarter revenue is expected to be sequentially flat to slightly better than fiscal third quarter 2020
- Seasonal strength in NSE
Challenges Ahead
- Due to macroeconomic and business uncertainty
- COVID-19 global pandemic