Viavi Solutions Inc. (VIAV) - NASDAQ
  • Dec. 12, 2013, 11:51 AM
    • Cisco (CSCO -2.3%) is now targeting annual revenue growth of 3%-6% over the next 3-5 years, down from a prior 5%-7%, says CFO Frank Calderoni states at the networking giant's analyst meeting. In addition, Calderoni says Cisco's FY14 (ends July '14) revenue growth outlook is "basically" in-line with a Street forecast for a 4% decline.
    • Cisco is now aiming for services revenue growth of 7%-10% over the next 3-5 years, down from 9%-11%; services accounted for 22% of Cisco's Oct. quarter revenue. Businesses related to "enabling the cloud" (a somewhat nebulous term) are expected to show a 12%-18% growth rate.
    • Cisco, already pressured by John Chambers' macro comments, continues to trade lower. Many networking equipment peers and component/chip suppliers are also selling off; in addition to Cisco, Ciena's mixed FQ4 results and slightly soft FQ1 guidance could be playing a role here.
    • Notable networking equipment/component/chip decliners: JNPR -3.1%. BRCM -2.5%. PKT -2.8%. FFIV -2.2%. ERIC -2.1%. JDSU -1.9% (getting pulled from the S&P 500). AFOP -5.5%. CAVM -1.7%. AMCC -1.8%. BRCD -1.8%. MRVL -1.6%. ARUN -1.7%. CALX -1.7%.
    | Dec. 12, 2013, 11:51 AM | 2 Comments
  • Dec. 11, 2013, 5:24 PM
    • Better a week late than never. Facebook (FB) will be joining the S&P 500 following the Dec. 20 close, and will also be added to the S&P 100. The social networking giant is replacing test equipment vendor Teradyne (TER).
    • Alliance Data Systems (ADS) and Mohawk Industries (MHK) are also joining the S&P 500 following the Dec. 20 close. They're replacing Abercrombie & Fitch (ANF) and JDS Uniphase (JDSU).
    • FB +3.9% AH. MHK +2.4%. ANF -0.8%. JDSU -0.6%.
    | Dec. 11, 2013, 5:24 PM | 7 Comments
  • Dec. 11, 2013, 9:24 AM
    • JDS Uniphase (JDSU) is acquiring Network Instruments, a provider of network analysis/performance monitoring hardware for enterprises and data centers, for $200M in cash. The deal is expected to close within 45 days. (PR)
    • Network Instruments competes with Riverbed's (RVBD) Opnet unit and NetScout (NTCT), among others; the deal could rekindle M&A hopes for the latter. Network Instruments had revenue of $40M over the last 12 months, and (per JDS) addresses $1B+ worth of markets growing at a 13% clip.
    • JDS asserts Network Instruments' products complement its carrier-focused network analysis/monitoring products, and will help it create new offerings as "enterprise and carrier network performance management requirements converge."
    • JDSU +0.7% premarket
    | Dec. 11, 2013, 9:24 AM
  • Dec. 5, 2013, 4:44 PM
    • Finisar (FNSR) is guiding for FQ3 revenue of $290M-$305M and EPS of $0.43-$0.47, above a consensus of $289.3M and $0.38.
    • FQ2 results beat estimates thanks in large part to an 11% Q/Q and 46% Y/Y increase in datacom component sales to $204.3M (70% of total revenue); the Y/Y growth rate represents a solid increase from FQ2's 32%. Healthy data center infrastructure spending from Internet/cloud services firms likely played a big role.
    • Telecom component sales totaled $86.5M, +6% Q/Q but -6% Y/Y. Major customer Cisco recently reported seeing soft telecom hardware orders.
    • Gross margin was 37.1%, +200 bps Q/Q and +660 bps Y/Y. FQ3 GM is expected be around 37%.
    • Opex rose 15% Y/Y; R&D, sales/marketing, and G&A spend each grew by a double-digit percentage.
    • Aided by yesterday's FBR note, Finisar is now up 17% from Tuesday's close. JDS Uniphase (JDSU) is following its rival higher AH.
    • CC at 5PM ET. FQ2 results, PR, presentation
    | Dec. 5, 2013, 4:44 PM
  • Dec. 4, 2013, 2:59 PM
    • FBR's Scott Thompson thinks Ciena (CIEN +7%) will deliver a beat-and-raise FQ4 report on Dec. 12, and sees the telecom equipment vendor benefiting from carrier adoption of network architectures that feature "more intelligence and flexibility at the optical layer."
    • Thompson sees carriers building more advanced metro optical networks, replete with data centers that enable services such as content caching, app hosting, and advanced mobile messaging. He points to a recent optical switching deal between Verizon and Ciena as an example of how the latter benefits from this trend, and sees a similar deal with AT&T arriving soon.
    • At the same time, he cautions optical gross margins "could be under pressure," thanks to aggressive pricing from Infinera (INFN +2%), lengthy deployment times, and the adoption of software-defined networking controllers (CYNI is among the companies providing them) that remove some intelligence from the optical layer.
    • Ciena flew higher three months ago following its FQ3 report. The company reported solid demand for its integrated Ethernet switching/optical networking hardware, which now accounts for 56% of revenue.
    • Infinera is following Ciena higher, and so are Finisar (FNSR +5.2%), JDS Uniphase (JDSU +3.1%), Fabrinet (FN +1.8%), and AppliedMicro (AMCC +3.9%).
    | Dec. 4, 2013, 2:59 PM
  • Nov. 22, 2013, 1:51 PM
    • MKM has lowered its PT for Finisar (FNSR -2.4%) to $27 from $30. Both Finisar and rival JDS Uniphase (JDSU -2.4%) have sold off over the course of the day.
    • Though still up 27% YTD, Finisar is now down 22% from its October high of $26.66. Shares took off this summer after Finisar provided strong guidance on the back of rising datacom (enterprise/data center networking) orders. But both Finisar and JDS  dove earlier this month after major customer Cisco provided bleak guidance, thanks in large part to service provider and emerging markets weakness.
    • JDS is close to its 52-week low of $11.10. Finisar's FQ2 results are due on Dec. 5.
    | Nov. 22, 2013, 1:51 PM
  • Nov. 19, 2013, 3:46 PM
    • The index's smallest members are in the sights, says Deutsche Bank, as the index makes room for Ingersoll-Rand spinoff Allegion. The possible deletions: J.C. Penney (JCP -0.1%), JDS Uniphase (JDSU -2.3%), Teradyne (TER -2.3%), and Ryder System (R -0.3%).
    | Nov. 19, 2013, 3:46 PM
  • Nov. 5, 2013, 11:33 AM
    • Fabrinet (FN +11%) has made new 52-week highs after soundly beating FQ1 estimates. The optical component contract manufacturer's FQ2 guidance - revenue of $170M-$174M and EPS of $0.40-$0.42 vs. a consensus of $169M and $0.36 - also isn't hurting.
    • Several optical component vendors are getting a lift from the numbers: FNSR +4.5%. JDSU +1.4%. OPLK +2%. OCLR +1%. NPTN +1.4%.
    • On its CC (transcript), Fabrinet mentioned optical communications sales rose 12% Q/Q, with healthy demand for both telecom and datacom products, and that "the underlying fundamentals of [Fabrinet's] Optical business remain strong" thanks to improving end-market demand and rising sales of advanced components/modules.
    • Strategy chief John Marchetti mentioned datacom sales growth is still outpacing telecom growth, but added telecom sales are starting to "really grow again," and that additional segment growth is expected in FQ2 even as the company maintains a cautious outlook thanks to past disappointments.
    • Those comments are a breath of fresh air for optical component firms, given they come in the wake of disappointing guidance from JDS Uniphase and equipment vendors.
    | Nov. 5, 2013, 11:33 AM
  • Oct. 31, 2013, 9:13 AM
    | Oct. 31, 2013, 9:13 AM | 1 Comment
  • Oct. 30, 2013, 4:53 PM
    • JDS Uniphase (JDSU) expects FQ2 revenue of $420M-$440M, below a $456.9M consensus. Shares -6% AH. (FQ1 results, PR)
    • Jive Software (JIVE) expects Q4 revenue of $38.5M-$39.5M and EPS of -$0.15 to -$0.17 vs. a consensus of $40.1M and -$0.16. Shares -9.6% AH. (Q3 results, PR)
    • Ruckus (RKUS) expects Q4 revenue of $70M-$73M and EPS of $0.04-$0.05 vs. a consensus of $72.7M and $0.05. Shares -1.8% AH. (Q3 results, PR)
    • ROVI expects 2013 revenue of $585M-$615M and EPS of $1.70-$2.00, largely below a consensus of $613.6M and $1.95. Shares -7.8% AH. (Q3 results, PR)
    | Oct. 30, 2013, 4:53 PM | 1 Comment
  • Oct. 30, 2013, 4:09 PM
    • JDS Uniphase (JDSU): FQ1 EPS of $0.13 beats by $0.01.
    • Revenue of $429M beats by $5.8M. Shares -5.1% AH. (PR)
    | Oct. 30, 2013, 4:09 PM | 1 Comment
  • Oct. 30, 2013, 1:19 PM
    • Several telecom equipment vendors and component suppliers are selling off in sympathy with Calix (CALX -22.7%) and Cyan (CYNI -31.8%), each of which is crashing due to the poor Q4 guidance (I, II) provided with its Q3 results. Both companies are heavily dependent on U.S. telco spending.
    • Calix blamed its guidance on soft demand from tier-2 and tier-3 carriers, while Cyan blamed "cautious order patterns" caused by macro issues. On its CC (transcript), the company noted orders from top customer Windstream will be "substantially down compared to prior quarters."
    • Notable decliners include Finisar (FNSR -7.3%), JDS Uniphase (JDSU -3%), Ruckus (RKUS -6.6%), Applied Micro (AMCC -3.8%), Procera (PKT -4.1%), Allot (ALLT -3.8%), Ciena (CIEN -2.7%), and Alliance Fiber (AFOP -7.7%). JDS and Ruckus report after the bell; Allot and Procera rallied yesterday in response to the former's Q3 report.
    • Several industry names sold off last Thursday due to Infinera's soft Q4 guidance. Infinera said at the time it doesn't "expect significant budget flush or year-end money" from carriers.
    | Oct. 30, 2013, 1:19 PM
  • Oct. 30, 2013, 12:10 AM
  • Oct. 29, 2013, 5:35 PM
  • Oct. 24, 2013, 11:44 AM
    • Though its Q3 results beat estimates, Infinera (INFN -9.4%) guided on its CC (transcript) for Q4 revenue of $130M-$140M and EPS of breakeven to -$0.04, below a consensus of $141.1M and $0.03. Gross margin is expected to fall back to ~40% after rising to 49% in Q3 (+1000 bps Q/Q and Y/Y).
    • While Infinera expects to benefit from "a number of significant new wins and deployments" in Q4, the company doesn't "expect significant budget flush or year-end money" from carriers.
    • Moreover, while Infinera has won a number of new deals - five new purchase commitments were scored for its DTN-X optical transmission platform - deal timing "remains challenging because of [Infinera's] short lead times and the strategic nature of many of these customer decisions."
    • Ciena (CIEN -7.3%) is selling off on the guidance and commentary, as are many optical component suppliers. Ericsson's numbers might not be helping either. CIEN -7.6%. FNSR -7.2%. JDSU -3.4%. NPTN -2.4%. OCLR -2.3%. AFOP -3.2%.
    • Infinera also disclosed CFO Ita Brennan is resigning, effective Feb. 28, 2014, to work for a startup. The company says it will start a search for a replacement.
    | Oct. 24, 2013, 11:44 AM | 5 Comments
  • Oct. 9, 2013, 12:00 PM
    • Adtran (ADTN -13.3%) guides on its Q3 CC for Q4 revenue to drop by a high single-digit to low-teen percentage Q/Q; that's worse than a consensus for a 7% decline.
    • Shares have nosedived on the guidance after trading higher earlier today in response to the telecom equipment vendor's Q3 beat.
    • Several other telecom equipment firms are also seeing sizable declines on a down day for tech, as are some component/chip suppliers. CIEN -4.3%. JDSU -3.9%. FNSR -4.5%. JNPR -2.8%. AMCC -3.8%. DRWI -4.7%. RVBD -3.3%.
    | Oct. 9, 2013, 12:00 PM | 1 Comment
Company Description
Viavi Solutions, Inc. engages in the provision of network and service enablement solutions and manufacture of optical products. It operates through the following segments: Network and Service Enablement; Communications and Commercial Optical Products; and Optical Security and Performance... More
Sector: Technology
Industry: Communication Equipment
Country: United States