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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.