Tue, Nov. 3, 10:49 AM
- The former JDS Uniphase (NASDAQ:VIAV) is at its highest levels since September after beating FQ1 estimates with the help of strong optical security/performance (OSP) product sales. FQ2 guidance is for revenue of $212M-$228M and EPS of $0.06-$0.08, in-line with a consensus of $221.1M and $0.08.
- OSP revenue rose 27.1% Q/Q and 48.3% Y/Y in FQ1 to $64.2M. On the earnings call (transcript), the growth was attributed to growing banknote printing volumes for Viavi's anti-counterfeiting business, as well as higher government sales.
- Sales performance: Network enablement (NE) sales fell 11% Q/Q and 3.2% Y/Y to $117.6M. Wireline field instruments were weak (particularly for cable applications), while lab and wireless field instruments were stronger. Service enablement (SE) revenue rose 29.1% Q/Q and fell 5.1% Y/Y to $47.9M. Assurance and wireless sales were soft, while "growth areas" such as location intelligence and enterprise network instruments were stronger.
- NE book-to-bill was above 1, and SE book-to-bill below 1. The latter is blamed on assurance and location intelligence deal push-outs.
- Financials: Adjusted gross margin rose 100 bps Q/Q and fell 60 bps Y/Y to 63.6%. Non-GAAP operating expenses fell 6.1% Y/Y thanks to lower G&A spend, helping adjusted op. margin rise 650 bps to 12.5%. Viavi ended FQ1 with $903.1M in cash/investments, and $568.2M in long-term debt.
- FQ1 results, PR
Mon, Nov. 2, 4:04 PM
Sun, Nov. 1, 5:35 PM
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Wed, Oct. 28, 1:42 PM
- Optical component vendors NeoPhotonics (NPTN +12.6%), Oclaro (OCLR +9.4%), Viavi (VIAV +6.9%), Finisar (FNSR +3.8%), Alliance Fiber (AFOP +4%), and Fabrinet (FN +3.1%) are rallying after optical transport hardware vendor Infinera (INFN +14.6%) beat Q3 estimates and issued strong Q4 guidance. Infinera rival Ciena (CIEN +3.4%) hit yesterday by a bearish Off Wall Street report, is also doing well.
- For Oclaro, the shoe is now on the other foot: Infinera rallied last week after Oclaro pre-announced strong calendar Q3 sales.
- On the earnings call (transcript), CEO Tom Fallon stated Infinera saw "a substantive increase" in sales of its Cloud Xpress data center interconnect platform. Cloud Xpress customers now stand at 14 (up from 12 as of July), and growing machine-to-machine traffic within data centers is expected to boost demand for 100G interfaces. Infinera's core long-haul system sales were also healthy.
- Fallon did admit Infinera is seeing "some conflicting signals" regarding market demand. "On one hand, we are seeing some pockets of slightly softening demand. On the other, we're seeing positive indications in the industry, such as lead-times extending for optical components and continued capacity expansion from cloud providers." The optical component remarks might be contributing to today's rally in component makers.
- Needham's Alex Henderson, who upgraded Infinera earlier this month, is reiterating a Buy rating today. "Infinera reported a strong quarter and offered a strong guide in its first quarter with Transmode partially in the base and fully in the CY4Q guidance. Negative commentary on the Street on INFN and CIEN regarding industry price pressure has set-up a solid entry point and we expect investors will take advantage of this recent weakness."
Tue, Aug. 11, 4:31 PM
- Along with its FQ4 results, Viavi (NASDAQ:VIAV) announces CEO Tom Waechter has stepped down. Chairman Richard Belluzzo will serve as interim CEO while the board searches for a successor. The former JDS Uniphase also states it plans to expand its board from 5 to 8 members (inc. the new CEO), and is currently looking for 2 new directors.
- Waechter, 62, was JDS Uniphase's CEO since 2009. His departure follows the Lumentum spinoff and news of a CFO change.
- After backing out Lumentum (optical component/industrial laser) sales of $203.5M, Viavi had FQ4 revenue $224.2M, above a $217.6M consensus. FQ1 guidance is for revenue of $212M (+/- $8M) and EPS of $0.06 (+/- $0.02). Consensus ($251M and $0.09) is skewed by the fact at least one estimate doesn't account for the spinoff.
- Network enablement (test equipment) revenue fell 16.9% Y/Y in FQ4 to $137.6M, and service enablement (telecom software) revenue fell 17.2% to $36.1M; weak carrier capex played a role. Optical security/performance revenue rose 18.5% to $50.5M.
- Lumentum's (NASDAQ:LITE) FQ4 revenue of $203.5M (+3.4% Y/Y) beat a $201.8M consensus. Optical component segment sales (boosted by data center demand) rose 11.1% to $173.5M; laser sales fell 26.5% to $30M. FQ1 guidance is for revenue of $205M-$215M, in-line with a $210M consensus. The forecast asumes $3M in revenue from Lumentum's WaveReady optical networking equipment line.
- VIAV +1.3% after hours to $5.93.
- FQ4 results, PR
Tue, Aug. 11, 4:12 PM
Mon, Aug. 10, 5:35 PM
Thu, Apr. 30, 4:09 PM
Thu, Mar. 5, 4:27 PM
- Though its FQ3 results were nearly in-line, Finisar (NASDAQ:FNSR) is guiding for FQ4 revenue of $310M-$330M and EPS of $0.22-$0.28, mostly above a consensus of $307.9M and $0.23. Compared with FQ3, FQ4 results will benefit from an extra, but be hurt by the timing of the Chinese New Year.
- Datacom revenue rose 8.5% Q/Q and 11.4% Y/Y to $234.4M, lifted by strong wireless transceiver and 40G/100G component demand; Internet data center buildouts likely boosted the latter. Telecom revenue (under pressure for a few quarters) fell 11.3% Q/Q and 14% Y/Y to $71.9M. In addition to weak carrier capex, the Q/Q drop was caused annual price cuts.
- Operating expenses rose 3% Y/Y to to $63.2M (compares with 4% revenue growth). Gross margin fell to 30% from 31.1% in FQ2 and 37.2% a year earlier (price pressure). FQ4 GM guidance is at 30%.
- Finisar is up to $21.35 AH. Rival JDS Uniphase (NASDAQ:JDSU) is following Finisar higher, rising to $13.51.
- Finisar's FQ3 results, PR, earnings slides (.pdf)
Fri, Jan. 30, 2:56 PM
- Optical networking/carrier Ethernet hardware vendor Ciena (CIEN -4%), optical component suppliers Finisar (FNSR -2.4%) and Oclaro (OCLR -2%), and telecom chipmakers AppliedMicro (AMCC -5.9%) and Cavium (CAVM -4.4%) are all off after component vendor JDS Uniphase (JDSU -7.4%) missed FQ2 estimates and provided soft FQ3 guidance.
- On its CC (transcript), JDS observed its FQ2 network enablement (test equipment) and service enablement (telecom software/services) revenue fell a combined 8% Y/Y due to "weaker carrier spending and no budget flush in historically stronger December quarter." Network enablement is expected to remain soft in seasonally weak FQ3 as customers weigh their 2015 spending plans. Service enablement is expected to grow ~24%, after growing 16.6% in FQ2.
- AppliedMicro is down 10% since providing a soft FQ4 EPS guidance (-$0.09 vs. a -$0.07 pre-earnings consensus) on Tuesday afternoon to go with an FQ3 beat. Cavium is giving back the gains it saw yesterday after beating Q4 estimates and providing strong Q1 guidance.
Thu, Jan. 29, 5:21 PM
- JDS Uniphase (NASDAQ:JDSU) expects FQ3 revenue of $418M (+/- $10M) and EPS of $0.09 (+/- $0.02), below a consensus of $431.3M and $0.14.
- Not surprisingly (previous), JDS states weak U.S. carrier spending weighed on FQ2 results. This weakness led network enablement (test equipment) revenue to fall 14.2% Y/Y to $133.7M. Optical component sales fell 4.2% to $167.1M, but laser sales (boosted by industrial demand) rose 70.2% to $40M.
- Service enablement (telecom software/services) revenue rose 16.6% to $45.7M, and optical security/performance products (includes Xbox Kinect components) fell 7.3% to $50.6M.
- Gross margin rose 10 bps Q/Q and 60 bps Y/Y to 49.1%. Op. margin was 9.9%, +80 bps Q/Q but -110 bps Y/Y. JDS expects to finish spinning off its optical component/laser ops (CCOP) by the end of calendar Q3.
Thu, Jan. 29, 4:06 PM
Wed, Jan. 28, 5:35 PM
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Fri, Jan. 23, 10:32 AM
- Infinera (INFN +17.7%) knocked the cover off the ball yesterday afternoon, soundly beating Q4 estimates and issuing strong Q1 guidance on the back of growing demand for its DTN-X optical transmission/switching platform for 100G deployments.
- Rival Ciena (CIEN +3.7%) and optical component vendors JDS Uniphase (JDSU +2.7%) and Finisar (FNSR +2.3%) are rallying in response. The companies followed equity markets higher yesterday after Verizon guided for its 2015 capex to be slightly above 2014 levels (contrasts with AT&T's planed capex cut).
- On its CC (transcript), Infinera said it added 10 new invoiced DTN-X customers in Q4 (3 new to Infinera altogether), raising its total to 59, and that nearly half of all DTN-X clients are now opting for the company's Instant Bandwidth rapid provisioning tech. Initial revenue for the Cloud Xpress point-to-point interconnect platform was received in December, and 8 customer commitments have been received to date.
Oct. 29, 2014, 4:24 PM
- JDS Uniphase (NASDAQ:JDSU) expects FQ2 revenue of $445M (+/- $12M) and EPS of $0.15 (+/- $0.03), below a consensus of $445.9M and $0.17 at the midpoints. Given the bad news seen by many peers and suppliers, investors aren't upset with the numbers.
- Consumer/commercial optical products (about to be spun off) saw revenue rise 6.3% Q/Q and 2.3% Y/Y in FQ1 to $209.3M. Network enablement (test equipment) -19.8% and -8.5% to $132.8M; service enablement (boosted by M&A) +10.6% and +79.9% to $48.2M; optical security/performance +1.6% and -17.5% to $43.3M.
- Gross margin was 49%, -100 bps Q/Q and +270 bps Y/Y. GAAP opex +9% Y/Y to $195.1M.
- FQ1 results, PR
Oct. 29, 2014, 4:10 PM
Viavi Solutions Inc is a provider of network and service enablement solutions and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers and enterprises.
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