VIAVI Solutions Inc. reported its fiscal second quarter results for the period ended December 28, 2024, on January 30, 2025. The company announced net revenue of $270.8 million, an increase of 6.4% year-over-year and 13.7% sequentially, exceeding expectations. Non-GAAP earnings per share (EPS) was $0.13, up 18.2% year-over-year and 116.7% sequentially.
The Network and Service Enablement (NSE) segment was a primary driver of growth, with revenue increasing by 15.1% year-over-year to $179.0 million, reflecting recovering demand. The Optical Security and Performance Products (OSP) segment's revenue was $70.9 million, a decrease of 5.3% year-over-year. Non-GAAP operating margin for the company reached 14.9%, a significant increase of 170 basis points year-over-year and 490 basis points sequentially.
For the third fiscal quarter of 2025, VIAVI expects net revenue to be between $276 million and $288 million, with non-GAAP EPS projected between $0.10 and $0.13. CEO Oleg Khaykin stated that the financial performance exceeded expectations, largely driven by recovering NSE demand. He anticipates that the recovery in traditional service provider end markets, coupled with diversification into new markets like the data center ecosystem and aerospace and defense, will position VIAVI favorably for a long-term growth cycle. The company also confirmed the completion of the Inertial Labs acquisition on January 28, 2025.
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