VIAV - Earnings call transcript Q4 2021

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Operator

Good day and thank you for standing by. Welcome to the Viavi Solutions’ Fourth Quarter and Fiscal Year End 2021 Earnings Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Thank you. to Investor conference Relations. like Ong, to now of Head would hand over the Bill I Please ahead. go

Bill Ong

Thank you, is Ashley. and of fiscal Welcome Relations. to Viavi XXXX Investor call. Solutions’ earnings My name Bill Head year Ong, fourth quarter

results estimations. and Khaykin, performance. Joining and and subject These this will statements the Henk and in encourage during today. call, as are and materially these report filings. supplemental from described except can are about which view our most update statements you risks in cause statements, actual non-GAAP note, CEO; to our this include GAAP tables Please only are usefulness non-GAAP. unless expectations President note to forward-looking me includes plus Viavi’s historical to obligation results, reconcile provide earnings are Viavi uncertainties no results and earnings CFO. statements. the call differ state The on today’s current valid of SEC and Please call risk those these We today’s our slide website. also revenue, financial We recent annual we that that forward-looking filings, financials release are the guidance The including Oleg Derksen, particularly company’s all discuss undertakes to on release. financial available to factors otherwise, our preliminary we limitations

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

Henk Derksen

the wireless for a given our ago points XXX impact, revenue Viavi record with and recovery Viavi’s and basis guidance and QX from pandemic performance reflects a and $X.XX reflect EPS level expanded $X.XX an year last from to Revenues to XX.X% record. operating and of $X.XX all-time demand exceeded June XXXX solid year’s Consistent quarter. at increased guidance quarter, revenue, cash quarter, continues million, the million. at operating to in came of share per prior of our range products. at end Bill. the robust as as XX.X%. exceeded Viavi for $XXX.X guidance XX.X% range in set the profit XX.X% and high exceeded $XXX grew year-over-year quarter to year Fiscal which million margin points $XXX period. with year-over-year continued and basis the you, XX QX Thank Fourth non-GAAP profitability fiber, a flow $X.XX sequentially, strength strong the well the range ago anti-counterfeiting from

In addition includes to XXX.X strong shares. benefited operating the XX%. convertible The dilutive share of impact shares from anticipated a XX than of rate the of count performance, notes of we lower million tax million

starting million, year-over-year. improved profit our lag decreased Year-over-year on year-over-year lower leverage of guidance points, due NSE gross XX.X% NSE’s profit basis points for decreased for higher cable and of profit $XXX.X business last margins. results decreased unfavorable as million primarily $XXX from points NSE $XXX.X to mainly all-time result on at NSE, XX.X% Now segment, with XXX a of guide a to primarily year end operating revenue leverage million. reported year-over-year, of by NE moving margin gross XX.X% revenue. margins gross basis XX.X% strength of and revenue record margin profit NSE, the result increased basis year-over-year and our revenue. a basis margin increased to an reflecting operating result a a QX ago points XX.X% of exceeding decreased profit fiber, at to profit revenue due gross $XX.X Within range million, from $XXX products. at as mix. SE margin our million, high SE center XX at in to at of NSE. XXX revenue. range our XX.X%, assurance XXX increased basis products. data the wireless decreased sequentially, at XXX result our year NE points recovery XX.X%, high operating XX.X% XX.X% XX.X% by product profit Sequentially lower to exceeded operating higher Within margins of

million, was robust year-over-year, of modest revenue XX.X% was points OSP. seasonal demand, Now levels, to turning was decline $XX XXX Fourth offset anti-counterfeiting favorable higher the year’s million. range margin. profit guided basis basis a of by sensing guided and range product volume our of Gross million to strength the margin profit XXX at year-over-year to quarter XX%, mix. our products. driven as XX.X% $XX.X at by increased up end high Operating $XX a at last in and of XD XX.X% within aforementioned result driven by a points higher profit of gross increased from margin The XX%

on performance, XXXX revenue $X.X Viavi impacted a on pandemic XX.X% the of Viavi’s a revenue full Operating at segment. gross $XXX beginning XXXX, while record reached with resulting profit gross the XX.X% basis XX start with gross XXX mix a tax at a profit EPS Hence, reflecting margin recovery year the volume margins while fiscal of increased XX.X% convertible of of Now XXXX calendar of last sharp calculated of Stronger at late in XX.X% and up lower profit shift $X.XX from a summation of grew fiscal record fiscal ago X.X% is at dilution last year-over-year. or points on increased XX.X% points, from used $X.XX fiscal year from expense strong Asia-Pacific OSP experienced XXXX, moving million XXXX. our in as the saw and in to leverage NSE compared a quarters. finish the basis. COVID-XX resulted full in million notes to million, year. fiscal to $XX.X operating $X.XX both of count region expanded The improved $X.XX per at quarterly basis XX.X%, reflecting the basis year level, the in billion, year up income resulting jurisdictional year-over-year, at in to within $XXX.X a increasing million, volume year expansion modest individual share $XXX.X a our rate the margin XXXX. profit XX.X%, grew EPS X.X% share an than in decline in profit includes control. Operating OSP contributing revenue. combined year full margin

million resulting capital the XX, the ending was record year. $XX.X an of XXXX. July expenditures due in for in quarter $XXX Operating X, XXXX the the The build notes Now, quarter $XXX.X of trigger, XXXX, fourth option increased quarter, year period. million, basis, an the $X.X million flow becoming an in invested with XX.X% On generated short-term increase in prior million to CapEx sheet. full $XX was value to of a $XX.X the fiscal reflects We to and a of million ago from year. our compared to cash X% notes at quarter we record and new of and XXX% convertible of pricing cash at million, convertible of face $XXX.X a $XX.X year fiscal million increase turning future compared production flow XXXX $XXX.X operating facility in during compared million, in million. until reflecting the in balance and Arizona. investments compared up sequentially the the September cash total The $XXX.X year increased prior prior to up million $XX.X million, the support increase the matched $XXX.X a On demand holders of million, balance

shares the of on change as we book the value the a and or face equity to As sheet. the debt calculation. have the no difference and million $XX.X result, in of reclassified $XXX.X balance value the value notes the EPS face expense, the reported reported impact interest book to temporary This has short-term million of diluted

of million announced share this addition, $XXX end per fourth electing average we time in price the we aware at including the repurchased $XX.X In of share. stock of an XXXX share commissions. any Viavi plan are noteholders $XX.X buyback of at In cost September the average per QX, we $XX.XX as purchased the million at of of million In of $XX.XX authorized an quarter, of total, conversion. not

to opportunistic to our capital develop in intent repurchases our share we execute strategy. be continue to and will on management an continue allocation We and debt

expect XX.X% range to be quarter revenue first our approximately fiscal plus to or XXXX and on to per $X.XX. to of profit Now million guidance, be earnings million, $X margin is the we operating share to XX.X% in $XXX be to minus $X.XX expected between

$X million basis $XXX to XX.X%, OSP $XX $X or NSE plus operating at operating plus margin revenue or approximately profit minus expect with million minus to expected plus revenue XXX or profit be million points. plus million minus We or be margin XX basis points. approximately XX.X% is at with minus

tax Our expected approximately to be rate is expense XX%.

reflect $X.X XXX turn This call expense net We expect calculation estimated approximately of fully share used estimated dilution includes the With to XXXX expenses the now over is is our Oleg. to the convertible income a increase million approximately impact our dilutive that, shares the count reflect call million. an share approximately will without million. from diluted in XXXX to The count XX and of The I notes. XXX convert shares. million and

Oleg Khaykin

the balance XXX revenue achieving the QX and XXXX. would supply both field were as customer I QX meet XXX to into The ability strong reached profitability. in NE half with to at sequentially and strength expect near-term, we XX.X% to semiconductor upgrades business revenue equipment with fiber The constraints to build early see am deployment pleased XG achieved resulting in with by revenue geographic fiber greater NE data gigabytes recover in came networks. bookings One with funnel. wireless for Viavi’s continued regions. Should wireless and the record SE levels and these segment fiber the high continues and new visibility. business record performance we very chain The guidance. the factored network challenge providing NE XG and the our deployment otherwise providers service our benefiting near-term is demand. calendar and our customer home track been the highs from with of continued across advanced of business NSE constraints business in you, Hank. us in adoption. a devices, revenues demand segment Thank upgrades remains backlog segment. to These fiscal QX second center some resolve have increasing and segment gigabytes upside on our record recovery revenue for dampening shortage driven record supply for all fiscal The demand

to start in to reevaluate opportunities and assurance customers We to as improve their enterprise materialize expect XG continue XXXX. SE needs project later IT calendar

led up applications. Despite by successfully revenue, demand. products. profitability we sensing by managed business hitting demand QX headwinds be in fiber to replenishment year-on-year, broader global OSP. all recovered multiple strong profits the OSP performance and year by revenue driven and year, continues combination strong from strong records, to driven very and and segment banknote double-digit June for demand and in record turning anti-counterfeiting fiscal NE quarter up record including XX% and wireless fiscal margins finish record flow non-GAAP redesigns. the strong year percentage a levels inventory strong and XXXX, and cash driven financial fiscal pandemic-driven non-GAAP EPS gross The year’s adoption operating new early a operations, Now by in last the OSP XD stimulus, technology from delivered revenue of finished fiscal Anti-counterfeiting record

As we fiber NSE by look demand year start fiscal visibility a wireless it improved strong XG with is driven new to deployment. XXXX, and off into ahead

record wish profitability Viavi term. team expect and banknote while execution to we over sensing, express continued all strong fiscal the healthy. and see it In to shareholders growth products major another drivers, We chain our In Bill. growth and anti-counterfeiting year. for to relatively conclusion, expect supply to record principal I driven to policies delivering in employees, Viavi appreciation our we XD continue, we as call strong redesigns. customers driver flat year growth and and for in and longer sensing XXXX, global partners, demand my for its continue a to to by I the XXXX. fiber expect in fiscal demand XD remain I’d will now driving fiscal XG, safe like our a year continue our monetary quarter Overall, turn

Bill Ong

you, Thank Oleg.

Communications & quarter on XXXX be This at Infrastructure Hardware participating Jefferies we’ll IT the August Summit Investor Semiconductor, XXst.

session. the and We Ashley, let’s limit begin ask their one everyone question one to question-and-answer question follow-up. to

Operator

of you. [Operator first JPMorgan. Thank from Chatterjee comes with Your the Instructions] question line Samik

open. is Your line

Samik Chatterjee

mentioned that, still that you’ve near-term visibility you Thanks I Can just think, question. have more increased for kind a on afternoon. follow-up. mentioned thoughts thinking taking color any Good for you Oleg, of Thank think between is share the a -- XG visibility XG there you. I more is deployment being contributing it? and and a of previously kind is help bit fiber upside or that about some then drivers the and will Hi. fiber your what still later. updated You you my two bit how to you’re have deployment, that,

Oleg Khaykin

to the Well, wireless Sure. or not XG or provision for it’s is only still run tower because driver center, lab. fiber wireless every the it’s across to other antenna. you segment. the and biggest the I also fiber data applications much the services, a got It’s very It’s fiber can but a field before also think, instruments, networks, you it’s

strong So also Tier America seeing increasingly be deeper fiber extremely we rural Europe Tier fiber infrastructure significant the and to in now into North and into government X, customer X are in cities and continues base. the getting drive

-- a So the I it in the due the that out thus, needs growing far severe visibility, are mean, that shortage. have it’s supply ability that say in I there every strong you have all you cannot backlog improved, And to demand. semiconductor very, it’s outpacing today we meet It’s when means very short-term. a our improved to there respect,

it’s you you worst into big it also it. quarters, best you because one which of But you So of of have the when the times, need get product visibility times, a hand need rolls the the future backlog. cannot because over now on all it’s

being but a could manage, out fiber to to practically future that the coming number out requests to continue we continue only countries say, And meaningful quarters. fair home have in and this stronger We every in. accelerating to we and I going it’s programs that trend think to rolled various there’s that quarter running see an we’re as more increasing embark and of chunk European realized into seeing get we’re revenue on more push of

stage, So fiber activity lot starting to see a are six we’re starting operators come doing made are and said, as start It’s we well. in the clearly around big That the It’s XG expect initial wireless continues not as starting the area it plans still to seeing within move months. be to as strong. more also deployment we as to next being to deployment. early to be very but fruition progress to that major

Samik Chatterjee

can thought what basis. a been kind you that quite generating? on have you you’re that can Okay. EXFO, cash That’s use actions in explore to think to like, great. us substantial process amount the generating And you’re side on yearly next do a building as you a of And EXFO note, Oleg, cash now Outside of else cash, is if the different the relative or with I taken can What follow an steps? up, the the is there. alternatives are if give you where update of you’ve process

Oleg Khaykin

the shares bullishness their view well see to value we’ll a and with not think Chairman cash our day to forward burning tomorrow mean, disciplined. is minority, maybe they offer it shareholders to EXFO, by mean, majority vote. environment. I strong shareholders business, that the table they for brainer it, very I lawman then there of which I and felt the which hole it’s to decides full vote there’ll deal I valuation the a get us it’s we and the when to the company If no as of further our If the in us decline effectively the what offer the the we ahead necessary be to But put because knew vote business their discussions. to they we is was pockets. case we in and put Founder deserve, signal of remain is mean accept Well, sell. for unless compelling of main the the And your was on they is vote fundamentally then no get subpar. selling

more not other and to on be are to signal are bring an there’s them we Founder, we And do we the targets due potentially the owed the it’s wants to So, really that aggressive felt to Chairman as to afraid it our he very there, it. really much offer with shareholders we’ll the there in In to end, and But up and I what much to up the put table. not mean, out well. company. forefront time,

Samik Chatterjee

Okay. Great. Thanks taking Thank you. my questions. for

Oleg Khaykin

Sure. Thanks.

Operator

Your with next line Henderson of the question Alex comes Needham. from

open. Your line is

Alex Henderson

the chain bit much most to I around you the the X.X? order was have talk particular of of your impact And Thanks. what rate had on. might impacted? hoping about you had you degree supply could from been and ship above little product products a that to magnitude granularity the able the is challenges, Hold how which were

Oleg Khaykin

So, thank by significant, order always about book-to-bill a because I I margin, you, significantly the rate within remember and the big are Well, in products margin, mean, the fourth quarter. mean, big was X.X. which people a above a right, I of shipped ratio, Alex. lot caution by we quarter same our mean,

NSE, it start And first a just in So, the month have when next products, months. are book-to-bill of in pretty four shipped NE within you good months to the particular, have basically tells most big clearly, very in a of usually, index, you especially three our in quarter.

ICs to I things able range. The nanometer and much the the in it increasingly shortages big shift. area the chunk nanometer most So we pretty it’s is that advanced of shortage of manage all most see, XX well, we’re mean, is -- pretty to kind of book ship the XX acute whereas

processor of put other core the to more what it’s can make the at products. That you is deductions the good type AX parts able own our kits together short. it the is, fairly complex really that And area that remains auxiliary and all very and be it’s we’re at devices. even the though type So getting your is

to the Unfortunately really fall I year we and see now is some are we’ve of to on also and in starting low pretty the up the of parts. call that done last think a good load inventory now shortages. running

a be number able continue been for it we had not a obviously -- significant very our quarter. we but drive But not growth small a it it’s let’s number. way, would to very also manage, meet a put it’s I to to So it’s mean, but EPS big meaningful this enough this demand

Alex Henderson

If at of you airfreight, much cost are us? the all being from side the like it of of equation, your how by look higher and container costs side expediting and the the that are impacted costs of effects higher

Oleg Khaykin

tell freight the mean extreme costs extreme costs I think, significantly. are components parts up. I on The you, these the that Well, I are on of up in are shortage.

XXx mean, on price. seeing are the normal premium charging I brokers We XXx,

So right? sellers’ build a market those last But of piece it’s and you some things, product. So, unfortunately devices. cannot multi-thousand-dollar individual a there complete that without -- ship these out it’s isolated in are

the and to our increasing better out there manufacturing costs. higher some of So have offsets absorb able it products some even some to time, logistics for that of for overhead products higher devices, where fees and fortunately us fees, gross kind expedite in margins. the prices we But as pressure well. a At did on our end volume, proactively same going with we are said high higher absorption very the a were are we costs of

we see are Board and not. products down all So the I -- seeing where you’re are we’re of and see we we across on being are on the increases same. selective But it the appreciation can and to the about some customers those some our going we’re not where we’re road end the of passing doing ASP to

I and are facing even think more our higher shortage severe costs. competitors

to that’s some an ASP So provide opportunity to appreciation. actually

Alex Henderson

can quantify or you the So impact no?

Oleg Khaykin

a I’m points. percentage It’s not -- within it’s not material. couple of

Alex Henderson

Okay. Thanks.

Oleg Khaykin

Sure.

Operator

John comes Stifel. question next with Your from Marchetti

open. Your line is

John Marchetti

of Are just maybe for do about, things feel side where how following guess, still supply with quarter how relatively the outlook talk two? you and that on it’s plays stable, think terms Thanks getting trended? the months, in you the over or chain like kind or last just very out that’s your much. I is, last on a maybe over can you this worse several next moment, of quarter Oleg,

Oleg Khaykin

really mean mean, were is, advanced and that I kind the you quarter I So, there, I passives, getting here going there the it’s think plastics. the and bimodal XX-nanometer said, even area of, distribution. with manageable I it’s like a is ICs. acute is to I think basic mean, some fairly and probably that, on I The quarter -- can the discretes, think, be than boards, really you while challenges in is December more XX-nanometer September the I parts, expedites. situation high performance to worse handle

the I what there’s think don’t AX, obviously name XX-nanometer the FPGAs, for are it, in the there. silicon, shortage not spot microcontrollers, products we it’s substrates is production shortages. biggest X-nanometer the there are what Since or we is vendors. mainstream, the of it’s to anything But kind from range, of high with challenges out that today. some from seeing I’m also only because in our volume the of use understand So privy you sweet not we that’s XX-nanometer X-nanometer kind And really

John Marchetti

just briefly… then Got it. And

Oleg Khaykin

by is silicon biggest… far But the

John Marchetti

Okay.

just about, of quarters there a in here what’s in either think quarter, if the if on going move geographic a towards we’re I’m some the I basis how over couple guess to next I maybe And we quarters? geographic just going out several anti-counterfeiting a then Okay. on Asia-Pac looking of commentary skewed as that’s row. the anything curious from strong the and or had

Oleg Khaykin

seeing specific healthy on And XG I to a wireless But also vendors Well, are see fiber clearly one don’t doing XG. been continue products. of around very mean, wireless, for combination, in it’s lot operators also has has business well mean, demand our a but Asia, anti-counterfeiting and we is -- countries. we comment thing, some I we

John Marchetti

Thank you.

Operator

Capital. from Tim comes next You with Savageaux Northland question

open. Your is line

Tim Savageaux

Thanks. Great.

little guess, enablement the before a across am asking extent going that’s current But on here the into network to to continuing like about side the you’re a go the I question. higher that. level bookings, back supply talking pieces, strong absent and you any to And assume bit constraints? looks business, then follow about Sorry keep had if quarter I’ll Should NE cable. given and will, least or across fiber, that at supply I up. you the all wireless, sequentially potential three we that flat grow

Oleg Khaykin

Absence supply would probably an in constraints, record of September. Yeah. the have you all-time had quarter

So I mean your question yes, about the is, answer growth. to

Tim Savageaux

a Fantastic. little I level but you provide here, last way equation underway businesses. meaningful higher favorably, And dynamic test then if in that cycle you couple… update to or wonder piece quarter It might an particular has sounds of zooming just changed last mentioned a across since on like the kind accelerated continues with any super us the of communications various develop your whether

Oleg Khaykin

Sure. very exciting I that’s us. mean area that’s for actually one

network that of So seen needs a major sick and business years And on a It’s was of is of a one to going we operators this network we is rebuilding are up -- is view the like networks star And really South sudden of mean lot shift of hear the infrastructure in to America months pouring out, And the be focus the all will the tectonic those, a refocusing fiber done. in and and that and I be man going kind the of investment that to the very multiyear core the the out content capabilities, be of to coming always really in broadband What that the of and the and with in right lot networks, North six we the significant trend. a a pushing players among window place all of catching seeing there to and kind we you And of for media America. we’ve really obviously networks. a area rural you upgrading the significant. North have with about number in. North to or want operating my in in everything management. I Latin latest in building strong home, -- for neglected years, Europe, you’ve house year. shining you Asia, if mean infrastructure level extending the and with seen out a actually but years live even build And is realize think way have America say, America growth enablement upgrading build in in all now last, the doing

So now all three Asia full have speed, are Europe, America. we finally cylinders at North firing now major and

Just strongly. North our is drive think, pretty segment I America reversing actually going going, to NE trend

Tim Savageaux

much. very Thanks

Oleg Khaykin

Sure.

Operator

line next Genovese Capital. question Your the Michael comes from as WestPark with

Your line is open.

Michael Genovese

Okay. wanted Thanks. OSP. I on the data segment to on check further some in

targeting, year-over-year, sensing XD that did about come were you is is XX% ended So where in up think, about I what it up?

Oleg Khaykin

about. which That’s to earlier talked that’s about right. in we android, Yeah. year in the It’s mainly, in anything the of already absence

Michael Genovese

Okay.

So the that off android that as, ahead, the main of look also absence think sort with and flat of like, units we think up of customer, to slightly that... it should as about we about is model

Oleg Khaykin

that an we players flattish upside we there half volume because Android said if are the factoring started in will sensing. also and roadmap of in deploying a be are kicks think here, higher is I but mean We may I not pricing second Yeah. probably there unit XD of see in. that some in But the while kind looking we

ASP there’s coming reductions So some in place.

unit net-net, from applications, and say, the various volume ASP between penetration higher I’d growth volume of the reductions. greater and So

in roughly android this of year. absence should flat fiscal be that the business in expect We

Michael Genovese

for low forward? about then, Great. it the Okay. of I is think going to core And XXs the OSP, guess, sort way the right

Oleg Khaykin

we think said… I

Michael Genovese

forward? it going about think we should How

Oleg Khaykin

Yeah.

kind we the of million million, I the $XX think million you said the we $XX of used now for $XX $XX business. new to million. foreseeable take future say Remember, base is

to that’s my So for view. time some quite going in continue

Michael Genovese

Congrats the it. Great. bookings. Thanks. All strong on I right. appreciate

Oleg Khaykin

Thank you.

Operator

Stanley. with Your Morgan next from Meta question comes Marshall

Your is open. line

Meta Marshall

Thanks. Great.

off But supply, kind environment kind just we’re First the we your these before we’re some question, a follow-up strong talking fiber and believe, know there they’re ability I announced how about like obviously, any longer plans very of feel week question. I being in sold you broadband I combined -- of we should then fiber with kind sold obviously and demand think their environment seeing position to or for a in is earlier out take see capacity. would that AT&T that about builds have slowdown of you the of a law in some a out of of

Oleg Khaykin

within And So, is fiber a they interim. no the a player. aggressive like mean, in religion, it’s of the are But they very lot clearly, are I AT&T it’s -- been religion clearly various by least AT&T a has from the shortages new really, very means, new at is only suppliers -- aggressively. moving and new facing they’re

all in You all could the it in they pretty and same having North in operator the they much looking every thing. are for and take other Europe America multiply or exactly network are fiber to discussions do

several So, think, until will it a catches quarters I’ll yeah, be, constrained the I for capacity environment say, chain supply up.

Meta Marshall

position back the and the clearly, build by time, of this of Got three drivers the biggest on of then even question just And had of increasing we’re kind base we over the a volumes, towards on this first kind OSP, of do you Mike’s or kind have inventory inventory. guys it. think two million following getting is And fiscal being monetary year multiyear end driver, line? reprints maybe kind up $XX you noted an

Oleg Khaykin

very is very tell inventories capacity when Well, difficult it you, to replenish have quickly. I limited you

time. you period over of spread it So a

continue And stimulate just we So demand of few say, are there’s flat as lines, increasing shops from many rebuild the to because policies printers their kind have and quarters COVID our of still running quite inventories to probably a and all countries various catch situation lot up in out of various try these to see we various economies. worse than a the actually -- few try print U.S. working quite intermittently fiscal a countries I’d

like mean that view. just more road straight -- down no So I even just by not demand But creates it’s a in it’s a actually my spiky. the means latent bit line.

very a strong down. can upward months, an of goes see something trend. nowhere But it net-net aggregate a significant if and of out orders over out average it’s period you You

Meta Marshall

Great. you. Thank

Oleg Khaykin

Sure.

Operator

comes Your Dave next Kang question B. from with Riley.

open. is line Your

Dave Kang

first regarding Thank the is chain My you. Good impact. supply afternoon. question

talking said, that any color you X%. and impact, you margin XXX bps what just the about think was wanted I of was revenue there? like or clarify I X%. it impact to believe bps, I were XX

Oleg Khaykin

any So not I you numbers. give did

I think know don’t heard you where X%. the I

been higher I would, think I margin. might have higher on greater offset manufacturer But gross absorption said all overhead have maybe in time X%, with more impact costs. the obviously, our expedite it mean, normal, a transportation revenue things volumes, seen the or I higher absence well. margin same we growth that and products, we higher have when But less can It’s that. of the gross probably, on of at X% impact as logistics,

Dave Kang

could Got it. How get seasonally worse follow-up think since strong? about talked you that quarter end high And in my about seasonality December. shifts is, so should we is December

Oleg Khaykin

the is issue. longer think, no I the Well, seasonality

imagine, can been bit with been think to the I I’ve don’t I consumer thousands vendors every revenue. end thousands us a mean as news sell scouring for And it’s a many low need share chain of mean about Earth not tens one a supply. -- to and dialing sure that least parts. hopefully get good leading very that that all revenue. you’re the units been fair devices meaningful more if of at has get and make to my of impact is, and the I’ve dollars I these than don’t we drives for on what going we supply you our make all team we the allocation for of share

So if a upside. in makes units hundred on big us margin for of terms several it in revenue the you difference can that find respect,

Dave Kang

you. Thank it. Got

Oleg Khaykin

Sure.

Operator

of from line question Partners. MKM Your comes with Fahad Najam the next

Your open. line is

Fahad Najam

Thank taking question. for you my

of kind in about to want remarks I year. So needle growth on prepared your next expecting

the you first understand Look, of the really your If terms customers. the I of come starting the have tranche spending think your Phase all of got that the spending and should bill to fourth you towards coming suppliers. through and as funds Fund that. Opportunities on this to you prominently way. help here most you’ve North pass at end the can a Senate X just secular to have hope just the the in Act, those art released stimulus little in got spending bit of get more online in yet and us infrastructure seeing least American Then if is then guys in Digital beginning Rural I coming year We quarter Rescue we of America, driver,

worse, So on the obviously, is at supply year, sense But your -- for recover you help on. bottom of does follow chain getting maybe it tightness a it chain we expect looks supply are now then And the a strong have limiting. put like calendar the we And can couple of how shape XXXX maybe your growth a ups. to very rest outlook I the the us and extraordinary year. of from supply

Oleg Khaykin

So, I in this of say, think, of all, would terms supply quarter is I bad tightness. first

quarter it’s December is first starts as be hope think will we always next at only don’t better because least we of say I far year that they worse. that’s And and away. hope half eternal, think getting

some far. don’t to expect But customers capacity starting in new that line Our I do coming look things and rebalance. even

half I see should do year think next sometime first improving. we So of things

America have terms I catch driving our networks broadband what’s cases sales any things playing been not stimulus existing current these driving for in mean or many in these done purely our any of counting driven five should current in what upgrading last rural and In sales. of are on years. especially of by to just your the really we’re demand, North up

first the just is that tranche. So

infrastructure demand. the overlay and government it, obviously one it next I for be level on started And full to probably it. of mean other of it’s trade this The swing you are that’s is fiber now and stimulus year every top in France, or money before we’re all a following it driving ago, U.K. like these two Germany, year the second driver Then now countries driving the is Netherlands years. see half seeing home the you about Europe. of programs, think Italy, which I and a

a Just in of kind full second wave we see That’s that that you’ll of that and in create we’re demand seeing be or kind start playing as kicking things, how we are to out. is the swing to on things extend the then see wave all of today. going other going will these

Fahad Najam

OSP. If want I’m Okay. was you growth? the remind not us I heard Appreciate Can sensing or had any said XD only year ex-Huawei answer. the I revenue think X follow that that mistaken to Huawei I -- last on this you from up if revenue the is up year-over-year. comp XX%

Oleg Khaykin

the did increase have year. is in So net that we prior a Huawei and

So, it’s all zeroed things out obviously been and equal. being

Fahad Najam

Thank the you. Appreciate answer.

Oleg Khaykin

Sure.

Operator

There turn over this call are no time. Ong for the closing further remarks. at questions back now I will to Bill

Bill Ong

today. our concludes This for everyone. call Ashley. you, Thank earnings Thank you

Operator

This conference call. concludes today’s

may You disconnect. now

Viavi Solutions (VIAV) 13 Aug 212021 Q4 Earnings call transcript