Viavi Solutions Inc.

- During the quarter, Viavi prepaid $150 million of their Term Loan B, reducing the remaining loan balance to $450 million, indicating active debt management rather than new debt raising. - The company prioritized capital allocation towards debt management and did not purchase any shares of their stock in the quarter. - No mention of new fundraising through issuing debt or equity was indicated. - Convertible notes due in March 2026 were paid off ($49 million), with about 1.8 million shares issued for conversion premium above par. - Overall, current focus is on debt repayment rather than raising new debt or equity.

- No explicit mention of current or specific future capital expenditure (capex) plans in the provided transcript. - Focus is on organic growth, acquisitions (notably 40 acquisitions by Oleg Khaykin historically), and scaling existing businesses. - Supply chain investments include increasing inventory to secure components ahead of shortages, indicating strategic investments in supply chain resilience. - Emphasis on early access to alpha/beta silicon for product development rather than long-term supply agreements. - Investment and growth opportunity highlighted in next-generation optical equipment, co-packaged optics, integrated optics, and aerospace/defense sectors. - Indirect strategic investment is in R&D and product development for emerging tech like 1.6 (presumably 1.6 Tbps) and co-packaged optics, enabling future revenue ramp. - Operating leverage and increased margins suggest reinvestment into scaling core businesses rather than large discrete capital projects.

- Strong data center ecosystem revenue momentum expected to continue through calendar 2026 (Page 3). - Aerospace and Defense business showing strong quarter-on-quarter growth, expected to continue (Page 3). - Service provider segment is seasonal; weaker in March/September, stronger in June/December (Page 3,12). - Early demand for co-packaged optics and advanced silicon driving increased testing requirements and growth opportunities (Pages 6, 10). - NSE (Network & Service Enablement) business seeing high organic growth; likely to continue with 30-40% growth over next few quarters in absolute dollar terms (Pages 11,12). - $500 million quarterly revenue target considered realistic over next upcycle, not immediate (Page 6). - Wireless segment down but expected to rebound, potentially adding $20-30 million quarterly (Page 6). - Inventory and supply chain are well-managed to support growth; early access to silicon key (Page 9). - Margin expansion expected with higher volumes and price increases potentially passed to customers (Page 5).

- NSE business nearing 20% operating profit margin; ~$0.45 incremental profit per additional dollar of NSE revenue (Page 6). - Operating margin expansion driven by volume growth, strong product mix, and healthy gross margins (Pages 5-6). - Guidance for fiscal Q4 2026 shows Viavi operating margin around 22.7% and EPS between $0.29–$0.31 (Page 2). - Expectation of continued strong NSE revenue growth, supported by data center and aerospace/defense markets with organic growth rates possibly reaching 30–40% over next few quarters (Pages 11-12). - Tax benefits due to U.S.-based IP leading to effective tax rates around 12% and further enhancing earnings (Page 5). - Incremental margins expected in 40–45% range, with some potential to increase as restructuring costs rollout and top-line grows (Pages 9-10). - EPS annualized at ~$1.20 mid-June quarter guide, higher than prior peak from FY22, indicating improved earnings power (Page 6).

- No explicit current or expected order book or pending orders figures are mentioned in the provided transcript. - However, demand signals and growth indicators include: - Strong growth in NSE revenue (~54% year-over-year) driven by data center and aerospace/defense. - Spirent product lines contributed significantly; next quarter expected to have similar run rates (~$200 million annually for Spirent). - Supply constraints are managed by securing early access to components and maintaining inventory, but no long-term supply agreements due to volume size. - Visibility for 2-3 quarters ahead is good; sales, especially in the drone segment and co-packaged optics testing, are in early innings but expected to ramp. - Order timing impacts quarterly results (e.g., Spirent orders pushed from prior quarters). - Growth expected to continue with strong demand from hyperscalers and aerospace/defense customers.