Viavi Solutions Inc (VIAV) 2025 Q3 法說會逐字稿

Good afternoon. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Viavi Solutions Fiscal Third Quarter 2025 Earnings Call. Today's conference is being recorded. (Operator Instructions)

午安.我叫奧德拉，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Viavi Solutions 2025 財年第三季財報電話會議。今天的會議正在錄製中。（操作員指示）

At this time, I would like to turn the conference over to Vibhuti Nayar, Head of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係主管 Vibhuti Nayar。請繼續。

Thank you, Audra. Good afternoon everyone, and welcome to Viavi Solutions' Fiscal Third Quarter 2025 Earnings Call. My name is Vibhuti Nayar, Head of Investor Relations for Viavi Solutions, and with me on the call today is Oleg Khaykin, our President and CEO; and Ilan Daskal, our CFO. 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.

謝謝你，奧德拉。大家下午好，歡迎參加 Viavi Solutions 2025 財年第三季財報電話會議。我叫 Vibhuti Nayar，是 Viavi Solutions 投資者關係主管，今天與我一起參加電話會議的還有我們的總裁兼執行長 Oleg Khaykin 和我們的財務長 Ilan Daskal。請注意，本次電話會議將包括有關公司財務表現的前瞻性陳述。這些聲明受風險和不確定性的影響，可能導致實際結果與我們目前的預期和估計有重大差異。

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 tariff impact and guidance that we provide during this call are valid only as of today. Viavi 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.

我們鼓勵您查看我們最近的年度報告和美國證券交易委員會文件，特別是這些文件中描述的風險因素。我們在本次電話會議中提供的前瞻性陳述（包括關稅影響和指導）僅在今天有效。Viavi 不承擔更新這些聲明的義務。另請注意，除非我們另有說明，本次電話會議討論的所有結果（收入除外）均為非 GAAP 結果。我們將這些非公認會計準則結果與我們的初步公認會計準則財務數據進行協調，並在今天的收益報告中討論它們的實用性和局限性。

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 turn the call over to Ilan. Ilan?

這份新聞稿以及包含歷史財務報表的補充獲利幻燈片均可在 Viavi 的網站 www.investor.viavisolutions.com 上取得。最後，我們將錄製今天的電話會議，並將於今晚太平洋時間下午 4:30 之前在我們的網站上傳。現在我想把電話轉給伊蘭。宜蘭？

Thank you, Vibhuti. Good afternoon, everyone. Now I would like to review the results of the third quarter of fiscal year 2025. Net revenue for the quarter was $284.8 million, which is above the midpoint of our guidance range of $276 million to $288 million. Revenue was up 5.2% sequentially and on a year-over-year basis was up 15.8%.

謝謝你，Vibhuti。大家下午好。現在我想回顧一下2025財年第三季的業績。本季淨收入為 2.848 億美元，高於我們預期範圍的中點 2.76 億美元至 2.88 億美元。營收季增 5.2%，年增 15.8%。

Operating margin for the third fiscal quarter was 16.7%, above the high end of our guidance range of 13% to 15%. Operating margin increased 1.8% from the prior quarter and on a year-over-year basis was up 7.4%. EPS at $0.15 was also above the high end of our guidance range of $0.10 to $0.13 and was up $0.02 sequentially. On a year-over-year basis, EPS was up $0.09. Moving on to our Q3 results by business segment.

第三財季的營業利潤率為 16.7%，高於我們預期的 13% 至 15% 的高端範圍。營業利益率較上一季成長 1.8%，年增 7.4%。每股收益 0.15 美元也高於我們 0.10 美元至 0.13 美元的指導範圍高端，並且比上一季上漲 0.02 美元。與去年同期相比，每股收益成長了0.09美元。接下來我們來看看各業務部門的第三季業績。

NSE revenue for the third fiscal quarter came in at $208.2 million, which is slightly above the midpoint of our guidance range of $202 million to $212 million. On a year-over-year basis, NSE revenue was up 22.6%. NE revenue for the quarter was $188 million, which is an increase of 23.9% year-over-year as a result of strong demand by NEMs for our fiber lab and production products. The year-over-year NE revenue increase included the Inertial Labs revenue, which was in line with our expectations. SE revenue was $20.2 million, which is an increase of 11.6% from the same period last year and is in line with our expectations.

NSE 第三財季的營收為 2.082 億美元，略高於我們預期範圍 2.02 億美元至 2.12 億美元的中點。與去年同期相比，NSE 收入成長了 22.6%。本季 NE 營收為 1.88 億美元，年增 23.9%，這得益於 NEM 對我們的光纖實驗室和生產產品的強勁需求。NE 收入年增率包括了慣性實驗室的收入，這符合我們的預期。SE 營收為 2,020 萬美元，比去年同期成長 11.6%，符合我們的預期。

NSE gross margin for the quarter was 63.1%, which is 1.7% higher on a year-over-year basis. NE gross margin was 63.4%, which is an increase of 190 basis points from the same period last year, mainly driven by higher volume and favorable product mix. SE gross margin was 59.9%, which is a decrease of 90 basis points from the same period last year as a result of product mix. NSE's operating margin for the quarter was 10.4% versus a 1.8% loss in the same quarter last year. NSE operating margin is significantly above our guidance range of 6% to 8% driven by higher gross margin fall-through as well as $4 million government R&D grant in Europe.

NSE 本季毛利率為 63.1%，較去年同期成長 1.7%。NE 毛利率為 63.4%，較去年同期增加 190 個基點，主要得益於銷售增加和產品組合有利。SE毛利率為59.9%，由於產品結構原因，較去年同期下降90個基點。NSE 本季的營業利益率為 10.4%，而去年同期則虧損 1.8%。NSE 的營業利潤率遠高於我們 6% 至 8% 的指導範圍，這得益於更高的毛利率下降以及歐洲政府 400 萬美元的研發補助。

OSP revenue for the third fiscal quarter came in at $76.6 million, which is just above the high end of our guidance range of $74 million to $76 million. On a year-over-year basis, OSP revenue was up 0.5%. OSP gross margin was 51.6%, up 150 basis points from the same period last year and was primarily driven by higher volume and favorable product mix. OSP's operating margin was 33.9%, which is at the high end of our guidance range of 32% to 34% and is 40 basis points lower on a year-over-year basis. Moving on to the balance sheet and cash flow.

第三財季 OSP 營收為 7,660 萬美元，略高於我們預期的 7,400 萬至 7,600 萬美元的最高水準。與去年同期相比，OSP營收成長了0.5%。OSP毛利率為51.6%，較去年同期上升150個基點，主要得益於銷售量增加及產品組合有利。OSP 的營業利潤率為 33.9%，處於我們 32% 至 34% 的指導範圍的高端，與去年同期相比下降了 40 個基點。繼續討論資產負債表和現金流量。

Total cash and short-term investments at the end of Q3 were $400.2 million compared to $512.8 million in the second quarter of fiscal 2025. The lower cash and investments balance at the end of this quarter is mainly attributed to the payment of the Inertial Labs acquisition. Cash flow from operating activities for the quarter was $7.8 million versus $19.5 million in the same period last year. The lower operating cash flow this quarter was mainly related to the acquisition of Inertial Labs. During the quarter, we did not purchase any shares of our stock as we prioritized our capital allocation towards M&A with the agreement to acquire Spirent's high-speed Ethernet and network security business lines.

第三季末的現金和短期投資總額為 4.002 億美元，而 2025 財年第二季為 5.128 億美元。本季末現金和投資餘額較低主要歸因於 Inertial Labs 收購的支付。本季經營活動產生的現金流為 780 萬美元，去年同期為 1,950 萬美元。本季較低的經營現金流主要與收購 Inertial Labs 有關。在本季度，我們沒有購買任何股票，因為我們優先將資本配置用於併購，並同意收購思博倫的高速乙太網路和網路安全業務線。

Although we plan to finance this transaction with additional debt, we will continue our financial discipline and intend to target less than 4 times gross leverage and well below 3 times net leverage over the long term. The fully diluted share count for the quarter was 226.9 million shares, up from 224.6 million shares in the prior year and versus 226.1 million shares in our guidance for the third fiscal quarter. CapEx for the quarter was $6.8 million versus $3.2 million in the same period last year. Moving on to our fourth quarter guidance. We continue to assess the potential impact of global tariffs on the overall demand and timing of orders.

儘管我們計劃透過額外債務為此交易融資，但我們將繼續嚴格遵守財務紀律，並打算長期將總槓桿率控制在 4 倍以下，將淨槓桿率控制在 3 倍以下。本季完全稀釋股數為 2.269 億股，高於去年同期的 2.246 億股，也高於我們對第三財季的預期 2.261 億股。本季資本支出為 680 萬美元，而去年同期為 320 萬美元。繼續我們的第四季指引。我們持續評估全球關稅對整體需求和訂單時間的潛在影響。

Overall, we expect fiscal fourth quarter revenue to remain about flat relative to the strong third quarter revenue. For NSE, we are taking a more prudent outlook in view of tariff-related timing of customer orders. For OSP, we expect strength in anti-counterfeiting business, offsetting some seasonal weakness in 3D sensing demand. For the fourth fiscal quarter of 2025, we expect revenue in the range of $278 million and $290 million. Operating margin is expected to be 13.5%, plus or minus 1%, and EPS to be between $0.10 and $0.13.

總體而言，我們預計第四財季的營收將與強勁的第三季營收基本持平。對於 NSE，考慮到與關稅相關的客戶訂單時間，我們採取了更謹慎的態度。對於 OSP，我們預計防偽業務將表現強勁，從而抵消 3D 感測需求的一些季節性疲軟。對於 2025 財年第四季度，我們預計營收將在 2.78 億美元至 2.9 億美元之間。預計營業利益率為 13.5%，正負 1%，每股收益介於 0.10 美元至 0.13 美元之間。

We expect NSE revenue to be approximately $208 million, plus or minus $5 million, with an operating margin of 5%, plus or minus 1%. OSP revenue is expected to be approximately $76 million, plus or minus $1 million, with an operating margin of 37%, plus or minus 1%. Our tax expenses for the fourth quarter are expected to be about $8 million, plus or minus $500,000, as a result of jurisdictional mix. We expect other income and expenses to reflect a net expense of approximately $5 million, and the share count is expected to be around 227.4 million shares. Our guidance includes a tariff impact of about $3 million on orders that already booked.

我們預計 NSE 的收入約為 2.08 億美元，上下浮動 500 萬美元，營業利潤率為 5%，上下浮動 1%。OSP 收入預計約 7,600 萬美元，上下浮動 100 萬美元，營業利潤率為 37%，上下浮動 1%。由於司法管轄權的混合，我們第四季度的稅費預計約為 800 萬美元，上下浮動 50 萬美元。我們預計其他收入和支出將反映約 500 萬美元的淨支出，股票數量預計約為 2.274 億股。我們的指導包括對已預訂訂單約 300 萬美元的關稅影響。

This is expected to be dilutive to our gross margin and negatively impact our EPS by approximately $0.01. With that, I will turn the call over to Oleg. Oleg?

預計這將稀釋我們的毛利率，並對我們的每股盈餘造成約0.01美元的負面影響。至此，我將電話交給Oleg。奧列格？

Thank you, Ilan. The March quarter was unseasonably strong, continuing a strong recovery and growth momentum that we saw in fiscal Q2. The quarter revenue came in above the midpoint of the guidance with EPS above the high end of the guidance. Higher volume and richer revenue mix were the primary drivers for stronger EPS. Looking in more details at each of our businesses, starting with NSE.

謝謝你，伊蘭。3 月季度表現異常強勁，延續了我們在第二財季看到的強勁復甦和成長勢頭。本季營收高於預期中點，每股收益高於預期高端。更高的銷售量和更豐富的收入組合是推動每股盈餘成長的主要因素。從 NSE 開始，更詳細地了解我們的每項業務。

NSE revenue in fiscal Q3 grew 23% year-over-year driven by recovery and growth across many of our product segments. Field instruments business segment continued to see gradual recovery driven by the demand for fiber field instruments and fiber monitoring systems. Service providers and hyperscale data center operators drove the demand as they build out and upgrade their networks. We are particularly encouraged to see the embrace and adoption of fiber monitoring by hyperscalers. We expect this trend to continue through calendar '25.

受眾多產品部門復甦和成長的推動，NSE 第三財季營收年增 23%。受光纖現場儀表和光纖監控系統需求的推動，現場儀表業務部門繼續逐步復甦。服務供應商和超大規模資料中心營運商在建立和升級其網路時推動了需求。我們特別高興地看到超大規模企業對光纖監控的接受與採用。我們預計這一趨勢將持續到2025年。

Fiber lab and production saw another strong quarter driven by 800 gig and 1.6 terabit data center ecosystem, which includes semis, optical modules, systems and hyperscalers. We expect 800 gig and 1.6 terabit optical infrastructure and emerging technologies such as co-packaged optics to continue driving strong demand for the rest of calendar '25. Our aerospace and defense business segment continued its strong growth momentum. We expect the positioning, navigation and timing business, strengthened by the acquisition of Inertial Labs, to be a strong multiyear growth driver for our aerospace and defense business segment. The wireless business segment saw the same dynamics as in fiscal Q2, a stronger demand for 5G field instruments, offset by continued weakness in the infrastructure test products.

光纖實驗室和生產又迎來了一個強勁的季度，這得益於 800 千兆和 1.6 太比特資料中心生態系統，其中包括半導體、光學模組、系統和超大規模器。我們預計 800 千兆和 1.6 太比特光纖基礎設施以及共封裝光學等新興技術將在 2025 年剩餘時間內繼續推動強勁需求。我們的航空航太和國防業務部門持續保持強勁的成長勢頭。我們預計，透過收購慣性實驗室，定位、導航和授時業務將成為我們航空航太和國防業務部門多年強勁的成長動力。無線業務部門的動態與第二財季相同，對 5G 現場儀器的需求更強勁，但基礎設施測試產品的持續疲軟抵消了這一影響。

We believe that the demand for wireless field instruments is a leading indicator for the resumption of 5G network build-out, leading to gradual recovery for the overall wireless segment. And lastly, the SE business segment results were in line with our expectations. Looking ahead, we expect Q4 to be roughly flat to fiscal Q3. Normally, we would expect a seasonally stronger Q4 but feel it's prudent to take a more conservative outlook due to recently imposed U.S. tariffs.

我們認為，無線現場儀表的需求是5G網路建置恢復的領先指標，從而帶動整個無線領域逐步復甦。最後，SE 業務部門的業績符合我們的預期。展望未來，我們預計第四季將與第三財季基本持平。通常情況下，我們預計第四季度會出現季節性強勁表現，但由於美國最近實施了關稅，我們認為採取更保守的看法是明智之舉。

Specifically, on the revenue side, there is a risk that some of the previously approved POs and upcoming orders may get delayed or reduced in volume as customers reapprove POs to include tariffs or decide to take a wait-and-see approach. And on the gross margin side, we expect to absorb approximately $3 million in tariffs from the previously committed orders and reciprocal tariffs on imported U.S. materials. Overall, we currently expect the tariffs to have a low single-digit impact on our operating margins. Given our global footprint, we are in a position to realign our supply chain to further reduce the tariffs impact as they stand today within 6 months.

具體來說，在收入方面，由於客戶重新批准包含關稅的採購訂單或決定採取觀望態度，一些先前批准的採購訂單和即將到來的訂單可能會被延遲或數量減少。在毛利率方面，我們預計將吸收先前承諾的訂單中約 300 萬美元的關稅以及對進口美國材料的互惠關稅。總體而言，我們目前預計關稅對我們的營業利潤率的影響將只有個位數。鑑於我們的全球影響力，我們可以在 6 個月內重新調整我們的供應鏈，以進一步降低關稅的影響。

Now turning to OSP. During the fiscal third quarter, OSP increased marginally on a year-over-year basis as a result of strength in anti-counterfeiting and other products. We expect fiscal Q4 to be roughly flat quarter-on-quarter and up year-on-year characterized by seasonally weaker 3D sensing, offset by strength in anti-counterfeiting and other businesses. As communicated previously, we are starting to see a demand-supply equilibrium emerge in anti-counterfeiting business. In conclusion, I would like to thank the Viavi team for their continued dedication and strong performance and our customers and shareholders for their continued support.

現在轉向 OSP。在第三財季，由於防偽和其他產品的強勁表現，OSP 年比略有成長。我們預計第四財季業績將與上一季基本持平，年成長，其特點是 3D 感應業務受季節性影響較弱，但防偽和其他業務的強勁表現將抵消這一影響。如同先前所傳達的，我們開始看到防偽業務出現供需平衡。最後，我要感謝 Viavi 團隊的持續奉獻和出色表現，以及我們的客戶和股東的持續支持。

With that, I will now turn it back to the operator for Q&A.

現在，我將把主題交還給接線員進行問答。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) We'll take your first question from Ruben Roy at Stifel.

謝謝。我們現在開始問答環節。（操作員指示）我們將從 Stifel 的 Ruben Roy 那裡回答您的第一個問題。

Thank you. Hey Oleg, maybe we'll start with the tariff discussion. And if you could maybe drill down a little bit into the revenue side of the equation. So you mentioned that you have some concerns that some approved POs may get delayed. Are you actually seeing delays today, any pushouts, et cetera? Or is this just more of a conservative take near term?

謝謝。嘿，奧列格，也許我們可以從關稅討論開始。也許您可以深入研究一下這個等式的收入方面。所以您提到您擔心一些已批准的採購訂單可能會被延遲。您今天是否確實遇到了延遲、延遲等情況？還是這只是近期較保守的看法？

Well, I'll tell you, on the first draft of our notes, I had canceled. I've removed canceled because actually, nobody has canceled the orders. So that's one thing. Furthermore, we're seeing actually people accepting the increases and just adding it to their orders. So that's a positive.

好吧，我告訴你，在我們的筆記的第一稿上，我已經取消了。我已刪除“已取消”訂單，因為實際上沒有人取消訂單。這是一回事。此外，我們看到人們確實接受了漲價並將其添加到他們的訂單中。這是積極的。

So -- but I feel, clearly, we're now, what, third -- four weeks into the quarter since the big changes. And I'm starting to feel a bit better. But clearly, there is a number of POs that had to go back to be reapproved with the adders to compensate for the tariffs. And at this time, we are seeing some of them coming back. And so far, nobody has canceled.

所以 — — 但我感覺，顯然，自從發生重大變化以來，我們已經進入本季的第三至第四週了。我開始感覺好一點了。但顯然，有許多採購訂單必須退回，重新獲得批准，並增加附加條款以補償關稅。而此時，我們看到其中一些回來了。到目前為止，還沒有人取消。

Nobody has reduced the size of the order, and they're accepting the tariff increases. And -- but I think it's probably prudent to be conservative because the people who are responding the earliest, they're usually the ones who really need the product. And there's always a group of customers who said, you know what, if I can always wait another month, maybe things will change again. And as we've seen in the first week, the tariffs fluctuated all over the place. And I mean some -- I mean, we basically stopped all shipments into U.S., and we kind of took the POs, and we held on to them to see until things stabilize.

沒有人減少訂單規模，他們接受關稅上調。而且——但我認為保守可能是明智的，因為最早回應的人通常是真正需要該產品的人。總有一群顧客說，你知道嗎，如果我可以再等一個月，也許事情會再改變。正如我們在第一周看到的那樣，關稅一直在波動。我的意思是，我們基本上停止了所有運往美國的貨物，我們接收了採購訂單，並將它們保留下來，直到情況穩定下來。

So I think there's still -- it's no longer as volatile as it was in the first two weeks, but I think it's probably prudent to be a bit more conservative. And I do think there's going to be some set of customers who will delay placing orders, and that may just result in the revenue slipping into the fiscal first quarter of next year. So that's why we are being a bit cautious on the revenue guidance for this quarter.

因此我認為，它不再像前兩週那樣波動，但我認為採取更保守的態度可能是明智之舉。我確實認為會有一些客戶推遲下訂單，這可能會導致明年第一財季的營收下滑。所以這就是為什麼我們對本季的營收預測持謹慎態度。

Okay, thank you. As a follow-up, in terms of some of your equipment that shipped into the U.S., is there a way to think about how much of that revenue is sourced from China or other areas that we might have to worry about high tariff? You mentioned you could potentially move in six months. I'm just trying to figure out what the impact is. How much are we talking about here?

好的，謝謝。接下來，就你們運往美國的部分設備而言，有沒有辦法計算出其中有多少收入來自中國或其他可能需要擔心高關稅的地區？您提到您可能在六個月內搬家。我只是想弄清楚這會產生什麼影響。我們在這裡談了多少？

Also, I think I said if I look at it, clearly, just looking trailing 12 months, it's roughly 15% of our revenue is subject to tariffs overall, right, coming into the U.S. Clearly, China, given the magnitude of the tariffs, is the most pronounced thing. And we said that today, roughly 3% of the revenue is the tariff impact, and we can reduce it significantly within the next, say, six months or more like three to six months because we can just reroute and move our production to -- even within the same contract manufacturers by different country of origin. So -- but it takes -- we're already working on it. We're already moving things around.

另外，我想我說過，如果我看一下，很明顯，只看過去 12 個月，我們大約 15% 的收入總體上受到關稅的影響，對吧，就是進入美國。顯然，考慮到關稅的幅度，中國是最明顯的影響。我們說過，今天大約 3% 的收入是關稅的影響，我們可以在未來六個月或更長時間內大幅降低這一影響，例如三到六個月，因為我們可以重新安排生產路線，甚至將生產轉移到不同原產國的同一家合約製造商。所以 — — 但這需要 — — 我們已經在努力了。我們已經在移動一切了。

So I think within six months, the tariff impact will be fairly the minimum.

所以我認為在六個月內，關稅的影響將會相當小。

Okay. Just one final one then...

好的。那麼只剩最後一個了…

Providing the tariffs don't change. Pardon me?

假設關稅不變。對不起？

Right. That's a big if. Yes, I had a quick follow-up for Ilan, I guess, on the cost side of the equation. So the $3 million on the higher costs, a lot of folks have been talking about passing through costs. I would just like to understand how you're thinking about that. Is this -- should we think about the increased costs, I guess, as a longer-term headwind on margins the way you're [inaudible].

正確的。這是一個很大的如果。是的，我想，在成本方面，我對 Ilan 進行了快速跟進。因此，對於 300 萬美元的高成本，很多人都在談論轉嫁成本。我只是想了解您對此有何看法。這是——我想，我們是否應該把增加的成本視為利潤的長期阻力，就像你所說的那樣[聽不清楚]。

Well, let me take it and I'll turn -- yes, I'll take it. So we made a conscious effort, all the POs that we accepted and committed to, we're going to eat the tariff. And that's about $3 million, as we mentioned. Everything else that -- POs came in but haven't been confirmed and everything that's incoming is getting a universal tariff adder, and it's a non-negotiable. And so far, we have not seen any issue with people not accepting it.

好吧，讓我拿著它，然後我就轉身——是的，我會拿著它。因此，我們做出了有意識的努力，對於我們接受和承諾的所有採購訂單，我們都將承擔關稅。正如我們所提到的，這大約是 300 萬美元。所有其他東西——採購訂單已經發出但尚未確認，所有即將收到的東西都會增加通用關稅，這是不可協商的。到目前為止，我們還沒有發現有人不接受它。

So I think there were some people who tried to play the game and said, hey, I'm not going to pay tariff. I said, well, it's kind of like if you buy a product on Amazon and you refuse to pay the tax, you don't get the product. So I think what we see in the industry is universally all our peers and everybody is passing it on. And I think I would call even the biggest customers are saying, it is what it is. It is the new normal.

所以我認為有些人試圖玩這個遊戲並說，嘿，我不會支付關稅。我說，這有點像如果你在亞馬遜上購買產品但拒絕繳稅，你就不會得到該產品。所以我認為，我們在這個行業中看到的是所有同行普遍存在的現象，每個人都在傳遞它。我想我會打電話給甚至最大的客戶說，它就是它。這是新常態。

And I think today, we are identifying tariffs. Obviously, as things stabilize and go on, it will just become part of the price.

我認為今天我們正在決定關稅。顯然，隨著事態穩定和發展，它將成為價格的一部分。

Yes. So Ruben, the $3 million are embedded in our guidance, right? And that's the one kind of headwind. But as Oleg mentioned, prospectively, the goal is to pass it through to the customers and to offset the cost.

是的。那麼，魯本，這 300 萬美元已經包含在我們的指導中了，對嗎？這就是一種逆風。但正如奧列格所提到的，未來的目標是將其轉嫁給客戶並抵消成本。

And here, we just basically did not want to argue. On committed POs, we do not want to go back and uncommit. So that's just -- we decided to take a high road on that one.

而在這裡，我們基本上不想爭論。對於已承諾的採購訂單，我們不想回頭取消承諾。所以這只是——我們決定在這一點上採取高姿態。

Yeah makes sense thank you guys.

是的，很有道理，謝謝大家。

Thank you, guys.

謝謝你們。

We'll move next to Ryan Koontz at Needham & Company.

接下來我們將轉向 Needham & Company 的 Ryan Koontz。

Great, thanks for the question. Oleg, any particular technology domains you'd call out as you look forward? Obviously, you talked about the third quarter strength across fiber and wireless and optical. As you look forward over the next couple of quarters, any changes in behavior you're hearing from the different customer segments? And then secondarily, a follow-up, how is your exposure looking across data center and AI? And can you comment on that opportunity?

太好了，謝謝你的提問。奧列格，您展望未來時會提到哪些特定的技術領域？顯然，您談到了第三季光纖、無線和光纖的實力。展望未來幾個季度，您聽到不同客戶群的行為有何變化嗎？其次，接下來的問題是，您在資料中心和人工智慧方面的曝光度如何？您能評論一下這個機會嗎？

So I would say -- it's a great question. So increasingly, when I say, fiber lab and production, that's pretty much -- think of it today as a code word for data center. Because the days when fiber core and Telecom drove that business are over. Today, disproportional -- I mean, today, I'd say majority of it goes to the data center and the new nodes are being pushed by the data center. It's your leading semis, it's your leading fiber optic module manufacturers, leading NEMs and the top data centers. I mean that's pretty much the whole ecosystem that's driving it.

所以我想說——這是一個很好的問題。因此，當我說光纖實驗室和生產時，這基本上就是——今天把它想像成資料中心的代碼字。因為光纖核心和電信推動該業務的時代已經結束了。今天，不成比例——我的意思是，今天，我想說大部分都流向了資料中心，新的節點是由資料中心推動的。它是您領先的半導體、領先的光纖模組製造商、領先的 NEM 和頂級資料中心。我的意思是這幾乎是推動它的整個生態系統。

The March quarter was a very strong growth quarter-on-quarter for that business. We've shipped into a number of projects. This quarter, we expect some -- a bit of a pullback, but it's still going to be stronger than December quarter. And we expect another very strong quarter in September. So there we have some visibility, and the customers are coming in and placing longer-term orders.

三月份該業務的環比增長非常強勁。我們已經承接了許多項目。我們預計本季會出現一些回調，但仍將強於 12 月季度。我們預計 9 月將再創季度佳績。因此，我們有一定的知名度，客戶正在進來並下達長期訂單。

So we expect the -- I would say the data center ecosystem, which basically means for us fiber lab and production, is going to be very strong throughout the rest of this year. On -- the other segment is the aerospace and defense. With the acquisition of Inertial Labs and some of our earlier acquisition of Jackson Labs and our whole play in PNT, we continue to win big programs. And as those things start going into production, it's a very different business from the rest of Viavi where we do a book ship. This one is all about design wins.

因此，我們預計——我想說資料中心生態系統（對我們來說基本上意味著光纖實驗室和生產）在今年剩餘時間內將非常強勁。另一個部分是航空航天和國防。透過收購 Inertial Labs 以及我們先前對 Jackson Labs 的部分收購和我們在 PNT 領域的全面投入，我們繼續贏得大型專案。當這些東西開始投入生產時，它的業務就與 Viavi 的其他圖書運輸業務截然不同。這一切都與設計勝利有關。

And I tell you, I'm just blown away, looking at some of the programs we are winning where the size of the program is bigger than the TAM for our test and measurement business. And that's why I think as these things start materializing and going into production, it's going to be a very strong grower. But even this year, it's already quarter-on-quarter and through the rest of the year, we expect it to have -- to be posting pretty strong growth. So I would say two businesses that are going to be really standouts and kind of driving the growth -- weighted average growth is the data center business, which is fiber lab and production and aerospace and defense. We expect the fiber field, which is the instruments and fiber monitoring, to be the kind of steady Eddie recovery and gradual recovery trajectory.

我告訴你，看到我們贏得的一些項目，我感到非常震驚，這些項目的規模甚至超過了我們測試和測量業務的 TAM。這就是為什麼我認為，隨著這些事情開始實現並投入生產，它將成為一個非常強勁的成長點。但即使是今年，它已經是季度環比增長，並且在今年剩餘時間內，我們預計它將實現相當強勁的增長。因此，我想說有兩項業務將會真正脫穎而出並推動成長——加權平均成長是資料中心業務，即光纖實驗室和生產以及航空航天和國防。我們預期纖維領域，也就是儀器和纖維監測，將會呈現那種穩定的Eddie復甦和逐步復甦的軌跡。

And the wireless, I think we expect -- clearly, we're already seeing activity in the field for field instrumentation. And we've seen, obviously, that confirmed with some of the leading wireless NEMs confirming that 5G construction is resuming. And we expect that to lead in the second half to recovery in our fiber -- in our wireless infrastructure. And on SE business, I think it continues to perform well, and I think there's a lot of great opportunities for us later in the year.

我認為，我們期待無線技術——顯然，我們已經看到了現場儀表領域的活動。顯然，我們已經看到一些領先的無線 NEM 確認 5G 建設正在恢復。我們預計這將導致下半年我們的光纖和無線基礎設施復甦。就 SE 業務而言，我認為它將繼續表現良好，我認為今年稍後我們將有很多很好的機會。

Great. Really helpful. Any commentary you can make about the process and where you are with regards to the divestiture from the Keysight acquisition?

偉大的。真的很有幫助。您能對 Keysight 收購的資產剝離過程以及目前的情況發表什麼評論嗎？

So I would always kind of -- just given that Keysight is the driving seat on this one, it all depends on there. They provided update that they believe it's going to be during their July quarter. So basically, any time between now and end of July is what is the stated dates are. That's -- we just leave it at that.

所以我總是有點——只要是 Keysight 在這件事上佔據主導地位，一切都取決於此。他們提供了最新消息，他們認為這將在七月季度發生。因此基本上，從現在到七月底之間的任何時間都是規定的日期。就這樣吧——我們就到此為止了。

Great, appreciate the thoughts. Thanks so much.

太好了，感謝您的想法。非常感謝。

We'll move next to Meta Marshall at Morgan Stanley.

接下來我們來談談摩根士丹利的 Meta Marshall。

Hi, this is Mary on for Meta. I just wanted to go back to your comments on the OSP business. Is there anything else that you would add in terms of some of the headwinds or tailwinds on the OSP business as we think about the second half of the calendar year? Thank you.

大家好，我是 Meta 的 Mary。我只是想回到您對 OSP 業務的評論。當我們考慮下半年時，您還有什麼可以補充的關於 OSP 業務面臨的一些不利因素或有利因素嗎？謝謝。

Well, I think it's kind of premature to talk about second half of the calendar year. But generally, it's a stronger half for the 3D sensing. And it's kind of fairly steady for anti-counterfeiting. But what we've seen now, the anti-counterfeiting has stabilized, and we're actually seeing upside in the first half of the calendar year. And it just leads us to believe that a lot of the inventory has been burned off in the channel.

嗯，我認為現在談論今年下半年的情況還為時過早。但總體來說，它是 3D 感測領域中較強的一半。這對於防偽來說相當穩定。但我們現在看到的是，打假狀況已經穩定下來，而且我們實際上在今年上半年看到了好轉的跡象。這讓我們相信，許多庫存已經在通路中被消耗掉了。

And we were expecting actually during the March quarter to burn off some inventory and run lower production. It didn't happen because the demand came in stronger. So we actually did both manage to get the best of both worlds. We burned down the inventory, and we ran higher utilization, thus giving us better gross margin for that segment. So we expect the anti-counterfeiting to be in a much healthier shape for the -- going forward than it was in the last 12 months.

我們實際上預計在三月季度會消耗掉一些庫存並降低產量。但這情況並未發生，因為需求變得更強烈。因此，我們實際上確實做到了兩全其美。我們消耗了庫存，提高了利用率，從而為該部門帶來了更好的毛利率。因此，我們預計未來的反仿冒情勢將比過去 12 個月更健康。

And the 3D sensing, I mean, you guys all see the news and actually, it's been pretty strong. I mean the -- we would even say the Q3 was stronger than we thought. And generally, our June quarter is a seasonally weaker quarter and then the stronger demand comes in, in the second half of the calendar year.

至於 3D 感應，我的意思是，你們都看到了新聞，事實上，它非常強大。我的意思是——我們甚至會說第三季比我們想像的還要強勁。一般來說，我們的六月季度是季節性較弱的季度，然後在日曆年的下半年，需求會變得更加強勁。

Great thank you.

非常感謝。

We'll go next to Andrew Spinola at UBS.

接下來我們來談談瑞銀的安德魯·斯皮諾拉。

Hi, thank you. I wanted to ask some follow-up. Last quarter, we saw some strength return to the NSE business as the service providers started to spend again. This quarter looked pretty strong, and then the guide is for a little bit of a slowdown next quarter. I think we were hoping that there was a real return to spending by the service providers that maybe it wasn't indicative of a head fake. And it was a return to growth that would hopefully be followed in Europe and beyond in 6 months, et cetera.

你好，謝謝。我想問一些後續問題。上個季度，隨著服務提供者開始再次支出，我們看到 NSE 業務回升。本季度看起來相當強勁，但預計下個季度將會略有放緩。我認為我們希望服務提供者的支出能夠真正恢復，這可能並不是假象。希望歐洲及其他國家在六個月內也能恢復成長。

I'm wondering, first, do you think there was any sort of pull forward of demand by the service providers in either Q2 -- either both Q2 and Q3? Or do you think that this trend of a return to spend is intact and we should hope to see it continue going forward?

我想知道，首先，您是否認為服務提供者在第二季（或第二季和第三季）都出現了某種形式的需求提前？或者您認為這種支出回歸的趨勢仍然完好，我們應該希望看到它繼續下去？

Well, I mean, first of all, I don't think there was any pull in because that's not how they operate. And if you think about it, seasonally, with service provider, March quarter is one of the weakest quarters and it was almost on par with the December quarter. So the demand was actually quite healthy, right? But then there is another one with service providers is the wireless field instruments. Well, that was -- it continued to be pretty strong from December quarter as well.

嗯，我的意思是，首先，我不認為有任何吸引力，因為他們不是這樣運作的。如果你考慮一下，從季節性來看，對於服務提供者來說，三月季度是最疲軟的季度之一，幾乎與十二月季度持平。所以需求其實相當健康，對嗎？但是服務提供者還有另一個選擇，那就是無線現場儀器。嗯，那是——從 12 月季度開始它就一直保持著相當強勁的勢頭。

So it leads us to believe that we're starting to see the resumption of a 5G build-out. So in that respect, I would say the service provider field instrumentation and kind of demand is very much in line. And I would say it's getting back to normal. I mean it's not something that you're seeing big growth. I think it's low single digits kind of quarter-on-quarter, but that's -- and it's generally, I think, the pattern.

因此，我們相信我們開始看到 5G 建設的恢復。因此，從這個方面來看，我認為服務提供者現場儀器和需求非常一致。我想說一切都正在恢復正常。我的意思是，你不會看到它有巨大的成長。我認為這是一個季度環比低個位數的成長，但這就是——而且我認為這通常是一種模式。

Maybe one quarter, it will be stronger, next quarter maybe a little bit weaker, but it's trajectory is in the right direction. And I would say generally, we would see significant drop from December quarter to the March quarter. So if you kind of think about it, the March quarter was roughly flat to December quarter in that business, that is actually significant growth.

也許某個季度它會更強，下個季度可能會弱一點，但它的發展軌跡是正確的方向。我想說，總體而言，我們會看到從 12 月季度到 3 月季度的大幅下降。所以，如果你仔細想想，你會發現該業務 3 月份季度與 12 月份季度基本持平，這實際上是顯著的成長。

And we also assume for next quarter kind of a more prudent approach in terms of tariffs, et cetera.

我們也假設下個季度在關稅等方面採取更謹慎的態度。

We expect that probably some of that will probably push out into the September quarter because if you don't place your orders early on and you place it later, and it takes a long time for -- if you revise your PO, it has to recirculate and collect all the signatures. By the time it gets in, you may not have enough weeks in the quarter to build the product. So it probably will push out into the next quarter.

我們預計其中一些可能會推遲到 9 月季度，因為如果您不提前下訂單而是稍後下訂單，那麼需要很長時間 - 如果您修改採購訂單，它必須重新循環並收集所有簽名。等到產品交付時，你可能沒有足夠的時間來打造該產品。因此它可能會推遲到下個季度。

Yes. It's overall last quarter, this quarter, next quarter, it's about timing, the dynamic of timing of orders. We don't see any change in our thinking in terms of the end markets that we operate, the demand there.

是的。整體而言，上季、本季、下季都與時間有關，訂單時間的動態。就我們所經營的終端市場和那裡的需求而言，我們的想法沒有任何變化。

Got it. So the best way to think about the fourth quarter guide is sort of you're just assuming across the board, everyone is just going to be a little slower, pull back a little bit. It's not that you're seeing weakness in one specific part of the business because of the tariffs and others are stronger. It's just a general expectation of some pause and some slowdown in the next quarter related to just waiting to see what's happening.

知道了。因此，思考第四季指南的最佳方式就是假設每個人都會慢一點，稍微退後一點。這並不意味著由於關稅，某個特定業務領域表現疲軟，而其他領域表現強勁。這只是對下一季出現一些暫停和放緩的普遍預期，只是在等待觀察會發生什麼。

Well -- so I mean it varies. So in OSP business, there is no impact because you have a long-term forecast and you execute. And there is very de minimis tariff impact in that business because we have factories in different geographies that produce for those geographies. So we don't have an impact there. It's really on the NSE side.

嗯——我的意思是它是多種多樣的。因此，在 OSP 業務中，不會產生影響，因為您有長期預測並會執行。由於我們在不同的地區設有工廠，為這些地區生產產品，因此該業務受到的關稅影響非常小。所以我們在那裡沒有影響。它確實在 NSE 方面。

And within that, it's the service providers who take the longest to reapprove POs with adders. I mean when you look at the lab and production data centers, I mean, the turnaround has been pretty quick. I mean they say, yes, it is what it is. That's a tariff. Here is the PO back.

其中，服務提供者花費最長時間重新批准帶有加法器的採購訂單。我的意思是，當你查看實驗室和生產資料中心時，你會發現週轉速度非常快。我的意思是他們說，是的，事實就是這樣。這就是關稅。這是採購訂單。

So I would say the -- if any segment that's going to push out and you may see some slippage of revenue, that would be more for the service provider segment rather than the lab and production, which is semi companies, the equipment vendors, data centers and the module integrators.

所以我想說——如果任何一個部門要推出並且你可能會看到一些收入下滑，那將更多的是服務提供者部門，而不是實驗室和生產部門，即半導體公司、設備供應商、資料中心和模組整合商。

Got it. Thank you.

知道了。謝謝。

Our next question comes from Michael Genovese at Rosenblatt Securities.

我們的下一個問題來自羅森布拉特證券公司的麥可·吉諾維斯。

Great. So just back on the tariffs for a minute here. Do you have manufacturing exposure to places where tariffs, there's a risk? I mean I know people don't think tariffs are going to go up and those full rates in Southeast Asia and Taiwan would be implemented. But that's still on the table and a possibility. So I know you said they don't behave to pull things forward.

偉大的。我們再來討論一下關稅問題。您的製造業是否在有關稅、有風險的地方開展業務？我的意思是，我知道人們不認為關稅會上漲，而且東南亞和台灣的全額關稅將會實施。但這仍然是可行的，而且有可能。所以我知道你說過他們沒有採取任何行動來推動事情向前發展。

But do you have any customers that are exposed more to those regions than China and would want to pull things forward for that reason?

但是，您是否有任何客戶比中國更關注這些地區，並因此希望推動事情的發展？

I have not seen any customers that are pulling products forward because in the end, they all have their quarterly budgets. And you got to -- I have not -- they spend what they get in any given quarter. And the only thing we've seen is like, okay, we have to put an adder and they just have to reapprove it, and that's about it. I have not seen anybody who saying, hey, I'll take everything now because I don't want to wait. It's just -- which you think you would see it because -- but it's not the case.

我還沒有看到任何客戶提前推出產品，因為最終他們都有自己的季度預算。你必須——我沒有——他們必須花掉他們在任何一個季度所賺到的錢。而我們看到的唯一情況是，好吧，我們必須添加一個加法器，然後他們只需要重新批准它，就是這樣。我還沒看過有人說，嘿，我現在就要拿走一切，因為我不想等待。這只是——你認為你會看到它，因為——但事實並非如此。

Okay. And then just on the total inventory for the company, and I think it went up about 25% quarter-over-quarter. Was that you buying in front of the tariffs or something else going on?

好的。然後就該公司的總庫存而言，我認為它比上一季增長了約 25%。您是在關稅之前購買的，還是有其他原因？

No, that is the incremental inventory from the Inertial Labs acquisition that closed end of January. If you back out their inventory, actually, our inventory was slightly down quarter-over-quarter.

不，這是 1 月底完成的 Inertial Labs 收購所產生的增量庫存。如果你回顧他們的庫存，實際上，我們的庫存比上一季略有下降。

Okay. Perfect. And then last question for me is just an update and color on the aviation military business?

好的。完美的。最後一個問題是關於航空軍事業務的最新消息和詳情嗎？

Which business, sorry?

抱歉，是哪家公司？

Military aviation.

軍事航空。

Aerospace and defense, yes, what about it?

航空航太和國防，是的，那又怎麼樣？

Just a color update on how that market is?

只是對該市場的現況進行一下簡短的更新嗎？

Yes. So no, I mean, listen, that business is doing very well. It's got very healthy quarter-on-quarter growth. I mean there's parts of that business that are more like mature with a slower growth like the, I would say, the mission-critical communication like two-way radios and avionics that go slower. But the area that's really driving significantly higher growth is the whole PNT, positioning, navigation and timing. And that is all about drones. It's all about anti-spoofing, anti-jamming of GPS and things like that. So that's the business that has very strong quarter-on-quarter growth.

是的。所以不，我的意思是，聽著，那項業務做得很好。它的季度環比增長非常健康。我的意思是，該業務的某些部分已經比較成熟，增長速度較慢，例如像雙向無線電和航空電子設備等關鍵任務通信，它們的發展速度較慢。但真正推動大幅成長的領域是整個 PNT，即定位、導航和授時。這就是有關無人機的全部內容。這一切都與反欺騙、反 GPS 幹擾等有關。因此，該業務的季度環比增長非常強勁。

Okay, thanks very much.

好的，非常感謝。

And next, we'll go to Tim Savageaux at Northland Capital Markets.

接下來，我們來談談 Northland Capital Markets 的 Tim Savageaux。

Hey, Good afternoon. Two questions and really both trying to quantify a couple of things that we've been talking about here. First, in terms of the overall size of the fiber lab and production business, which is a real growth area for you guys, I think you're talking about growing into the June quarter. If I were to put that around 20%, 25% of NE revenue, would I be too far off there? Any color on that would be interesting. And then I want to take a shot at quantifying the degree of your prudence, but why don't we follow up with that and start with lab and production.

嘿，下午好。這兩個問題實際上都試圖量化我們在這裡討論的一些事情。首先，就纖維實驗室和生產業務的整體規模而言，這對你們來說是一個真正的成長領域，我認為你們談論的是六月季度的成長。如果我將其定為 NE 收入的 20% 或 25% 左右，是不是差距太大了？任何顏色都會很有趣。然後我想嘗試量化你的謹慎程度，但我們為什麼不跟進並從實驗室和生產開始呢？

Well, I think this one is -- so the June quarter, we expect some pullback from the March quarter because we're shipping to a lot of big projects. So there was a big, significant increase December or March quarter, then June quarter is there's some pullback, and we expect September quarter to be another increase in the shipments. So I'd say today, 25% maybe on NSE is probably a little too much, but 20% is probably more like it.

嗯，我認為是這樣——所以我們預計 6 月份季度的銷量會比 3 月份季度有所回落，因為我們正在向許多大型項目發貨。因此，12 月或 3 月季度的出貨量出現了大幅增長，而 6 月季度則有所回落，我們預計 9 月季度的出貨量將再次增加。所以我今天想說，NSE 上的 25% 可能有點太多了，但 20% 可能更接近。

On NE?

在東北？

On -- no, NSE. Yes. Okay. So that's on that. And what was your second part?

開啟——不，NSE。是的。好的。就是這樣。你的第二部分是什麼？

You were talking about the -- how much. I think probably anywhere $5 million to maybe $10 million is a reasonable number to take a hedge, slip out.

您正在談論的是——多少。我認為，大概 500 萬美元到 1000 萬美元是一個合理的對沖金額。

Right. Yes. That was going to be my follow-up, which is normally you might even see high single-digit sequential growth in NE on a seasonal basis. And so that gets me a little bit higher, closer to maybe [inaudible].

正確的。是的。這將是我的後續行動，通常你甚至可能會看到東北地區在季節性基礎上出現高個位數的連續增長。這讓我稍微高一點，更接近也許[聽不清楚]。

Well, you got to also remember what is seasonal. I mean, seasonally, March quarter is down. Here, we actually had a March quarter up, right? So I mean it's a different kind of compare. So if you had a typically seasonally March quarter, the June quarter would be exactly what you would expect it to be up.

嗯，你還得記住什麼是季節。我的意思是，從季節性來看，三月季度有所下滑。這裡，我們實際上有一個三月季度，對嗎？所以我的意思是這是一種不同的比較。因此，如果三月季度的業績表現具有典型的季節性，那麼六月季度的業績表現將完全符合您的預期。

So I mean it's -- it was an aseasonal. I don't know if that pattern will maintain. But clearly, if it is, we may have to redefine what's seasonal. Right.

所以我的意思是──這是一個非季節性的現象。我不知道這種模式是否會持續下去。但顯然，如果是這樣，我們可能必須重新定義季節性。正確的。

Understood. But we'll settle on 5%.

明白了。但我們將定為 5%。

And I think the -- it's really the data center is what probably broke the traditional seasonality. But even then, when you look at the field instruments, they were roughly flat quarter-on-quarter, which is like in that particular space, you could consider growth.

我認為資料中心確實可能打破了傳統的季節性。但即便如此，當你查看現場儀器時，它們與上一季相比大致持平，這就像在那個特定領域，你可以考慮成長。

Great. Appreciate it, thanks very much.

偉大的。非常感謝。

All right, thank you.

好的，謝謝。

And there are no further questions at this time. I will turn the conference back over to Vibhuti for closing remarks.

目前沒有其他問題。我將把會議交還給 Vibhuti 並請他致閉幕詞。

Thank you, Audrey, and thank you, everyone. This concludes our earnings call for today. Have a good evening. Bye-bye.

謝謝你，奧黛麗，也謝謝大家。今天的收益電話會議到此結束。祝您晚上愉快。再見。

And this does conclude today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。