Shares of Viavi Solutions Inc. (NASDAQ: VIAV) soared over 8% in premarket trading on Thursday, following the company's fiscal first-quarter 2025 earnings report that highlighted several positive developments and growth drivers despite persistent macroeconomic challenges.
While Viavi reported a 3.9% year-over-year decline in revenue to $238.2 million and a 90-basis-point sequential drop in operating margin to 10%, the company witnessed stronger-than-expected demand in its Optical Security and Performance (OSP) segment. This surge was driven by anti-counterfeiting and 3D sensing products, offsetting the overall revenue decline.
Notably, Viavi expressed optimism about signs of stabilization and recovery in its Network and Service Enablement (NSE) segment, with expectations for stronger performance in the second half of fiscal 2025. This outlook is supported by the company's strategic initiatives and growth opportunities in areas such as 5G densification, fiber deployments, and OpenRAN ecosystem testing.