Viavi Solutions Inc. (NASDAQ:VIAV) Q1 2023 Earnings Conference Call November 3, 2022 4:30 PM ET

Company Participants

Sagar Hebbar - Head of Investor Relations

Oleg Khaykin - President and Chief Executive Officer

Henk Derksen - Chief Financial Officer

Conference Call Participants

Alex Henderson - Needham and Company

Tim Savageaux - Northland Capital Markets

Angela Jin - JPMorgan

Michael Genovese - Rosenblatt Securities

Mary Lenox - Morgan Stanley

Operator

Good afternoon and welcome to the Viavi Solutions First Fiscal Quarter of 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I will now turn the call over to Sagar Hebbar, Head of Investor Relations. Please go ahead.

Sagar Hebbar

Thank you, Julie. Welcome to Viavi Solutions first quarter fiscal year 2023 earnings call. My name is Sagar Hebbar, Head of Investor Relations. Joining me on today's call are Oleg Khaykin, President and CEO, and Henk Derksen, CFO. Please note, this call will include forward-looking statements about the company's financial performance. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our current expectations and estimations. We encourage you to review our most recent annual report and SEC filings, particularly the risk factors described in those filings. The forward-looking statements, including guidance we provide during this call are valid only as of today.

Viavi undertakes no obligation to update these statements. Please note that unless we state otherwise, all results except revenue are non-GAAP. We reconcile these non-GAAP results to our preliminary GAAP financials and discuss their usefulness and limitations in today's earnings release. The release, plus our supplemental earnings slides, which include historical financial tables, are available on Viavi's website at www.investor.viavisolutions.com.

Finally, we are recording today's call and will make the recording available by 4:30 p.m. Pacific Time this evening on our website. I would now like to turn the call over to Henk.

Henk Derksen

Thank you, Sagar. Fiscal Q1 2023 was a challenging quarter for Viavi. After record results in 2022, we saw an unanticipated deceleration in demand in the last three weeks of the quarter, concentrated among service providers. Fiscal Q1 revenue came in at $310.2 million down 5.1% year-over-year and below our guidance range of $317 million to $331 million. Viavi's operating profit margin at 21.7% improved 40 basis points from last quarter, although down 100 basis points of last year and came in within our guidance range of 20.7% to 22.1%. EPS at $0.23 was down 4.2% from both prior-year and prior quarter results but within a guidance range of $0.22 to $0.24.