Viavi (VIAV) swung to a net profit for the quarter ended Oct. 01, 2016. The company has made a net profit of $78 million, or $ 0.33 a share in the quarter, against a net loss of $69.10 million, or $0.29 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $21.70 million, or $0.09 a share compared with $19.60 million or $0.08 a share, a year ago. Revenue during the quarter dropped 8.23 percent to $210.80 million from $229.70 million in the previous year period. Gross margin for the quarter contracted 182 basis points over the previous year period to 59.35 percent. Operating margin for the quarter period stood at positive 4.79 percent as compared to a negative 1.26 percent for the previous year period.
Operating income for the quarter was $10.10 million, compared with an operating loss of $2.90 million in the previous year period.
However, the adjusted EBITDA from continuing operations for the quarter stood at $35.40 million compared with $38 million in the prior year period. At the same time, adjusted EBITDA margin improved 25 basis points in the quarter to 16.79 percent from 16.54 percent in the last year period.
"We executed well in fiscal Q1 2017 as our results were driven by solid profitability execution from NSE and OSP as both segments exceeded their operating margin guidance range," said Oleg Khaykin, Viavi’s president and chief executive officer. "This led to an overall non-GAAP operating margin at 13.0% and non-GAAP EPS at $0.09, both above a year ago levels despite a revenue decline of (8.2)% versus last year."
For the second-quarter 2017, Viavi projects adjusted revenue to be in the range of $187 million to $207 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.05 to $0.08.
Working capital increases
Viavi has recorded an increase in the working capital over the last year. It stood at $1,055.70 million as at Oct. 01, 2016, up 19.42 percent or $171.70 million from $884 million on Oct. 03, 2015. Current ratio was at 5.34 as on Oct. 01, 2016, up from 4.12 on Oct. 03, 2015. Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 123 days for the last year period. Days sales outstanding went up to 101 days for the quarter compared with 98 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding went down to 84 days for the quarter from 92 for the same period last year.
Debt moves up marginally
Viavi has witnessed an increase in total debt over the last one year. It stood at $590.80 million as on Oct. 01, 2016, up 3.98 percent or $22.60 million from $568.20 million on Oct. 03, 2015. Jds Uniphase Corp has witnessed an increase in long-term debt over the last one year. It stood at $590.80 million as on Oct. 01, 2016, up 3.98 percent or $22.60 million from $568.20 million on Oct. 03, 2015. Total debt was 33.51 percent of total assets as on Oct. 01, 2016, compared with 32.09 percent on Oct. 03, 2015. Debt to equity ratio was at 0.78 as on Oct. 01, 2016, up from 0.76 as on Oct. 03, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
