Viavi Solutions reported a notable dip in performance for the fourth quarter and fiscal year 2024, highlighting the challenging market conditions and the company's ongoing restructuring efforts. The company experienced a 4.4% year-over-year decrease in fourth-quarter net revenue, totaling $252.0 million, and a 9.6% drop in fiscal year revenue, reaching $1.0 billion. GAAP operating margins were also significantly impacted, declining by 680 basis points year-over-year in Q4 and 530 basis points for the full year. Additionally, GAAP earnings per share fell to $(0.10) in Q4 and $(0.12) for the fiscal year, indicating substantial financial pressure.
In response to these challenges, Viavi has initiated a restructuring and workforce reduction plan, expected to affect approximately 6% of its global workforce. This plan aims to improve operational efficiencies and align the company's workforce with current business needs. Viavi estimates this will result in $25 million in annualized cost savings by the end of fiscal 2025. Despite the difficult year, CEO Oleg Khaykin expressed optimism about a gradual recovery in the second half of fiscal 2025, particularly in the Network and Service Enablement (NSE) segment.
Fourth Quarter Performance:
- Net revenue: $252.0 million, down 4.4% YoY
- GAAP operating margin: (2.3)%, down 680 bps YoY
- GAAP EPS: $(0.10), down $0.10 YoY
- Fiscal Year 2024 Performance:
- Net revenue: $1.0 billion, down 9.6% YoY
- GAAP operating margin: 2.1%, down 530 bps YoY
- GAAP EPS: $(0.12), down 209.1% YoY
Restructuring Efforts:
- Workforce reduction plan affecting 6% of global workforce
- Estimated $25 million in annualized cost savings by fiscal 2025
- Business Outlook:
- Q1 fiscal 2025 net revenue expected between $235 million and $245 million
- Non-GAAP EPS expected between $0.05 and $0.07
