Viavi Solutions Inc. (NASDAQ:VIAV) Q3 2024 Earnings Conference Call May 2, 2024 4:30 PM ET

Company Participants

Ilan Daskal - CFO
Oleg Khaykin - President and CEO

Conference Call Participants

Ruben Roy - Stifel
Ryan Koontz - Needham
Michael Genovese - Rosenblatt
Karan Juvekar - Morgan Stanley

Operator

Hello, everyone. My name is Jericho. Welcome to Viavi Solutions Third Quarter FY '24 Earnings Call. [Operator Instructions]

I will now turn the conference over to Ilan Daskal, Viavi Solutions' CFO. Please, go ahead.

Ilan Daskal

Thank you, Jericho. Good afternoon, everyone, and welcome to Viavi Solutions' third quarter fiscal year 2024 earnings call. My name is Ilan Daskal, Viavi Solutions' CFO, and with me on today's call is Oleg Khaykin, our President and CEO.

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 that we provided during this call, are valid only as of today. Viavi takes -- undertakes no obligation to update these statements. Please also note that unless we state otherwise, all results discussed on this call, 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 as well as 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 on our website by 4:30 p.m. Pacific Time this evening. Now I would like to review the results of the third quarter of fiscal year 2024. Net revenue for the quarter was $246 million, which was above the low end of our guidance range of $245 million to $253 million.

Revenue was down sequentially by 3.3%, and on a year-over-year basis was down 0.7%. Operating margin for the third fiscal quarter was 9.3%, which is slightly above the low end of our guidance range of 8.8% to 12%.

Operating margin decreased 390 basis points from the prior quarter and on a year-over-year basis, was down 210 basis points. EPS at $0.06 within our guidance range of $0.05 to $0.09 and was down $0.05 sequentially and on a year-over-year basis, was down $0.02. Moving on to our Q3 results by business segment.