CHANDLER, Ariz. - Viavi Solutions Inc. (NASDAQ: NASDAQ:VIAV), a global provider of network test, monitoring and assurance solutions, today announced the release of a new testing module, the ONE-1600, designed to meet the testing and validation needs of the emerging 1.6Tb/s ecosystem based on 224G SERDES technology. The ONE-1600 is part of the ONE LabPro platform and is geared toward supporting the increasing demands of applications such as AI, ML, high-performance computing (HPC), and quantum computing, which require higher bandwidth and scalability.
The ONE-1600 module, which comes in a two-port configuration, is compatible with OSFP1600 and QSFP-DD1600 form factors and is part of VIAVI's strategy to support the development of high-speed Ethernet technologies. The ONE LabPro platform is noted for its high levels of port density and scalability, capable of supporting up to 64 x 1.6Tb/s test ports with the ONE-1600 modules or 128 x 800Gb/s test ports using HSE-800 modules.
Early customers of the ONE-1600 include InnoLight and Lumentum, companies that specialize in optical technologies and have invested in the development of products based on 224G SERDES. These companies have expressed that VIAVI's testing solutions have been integral in accelerating their development and ensuring product quality.
Dr. Vladimir Kozlov, CEO and Chief Analyst at LightCounting, commented on the rapid adoption of 1.6Tb transceivers and 224G SERDES, projecting a significant increase in the forecast for these products to a million units by 2025. This reflects a substantial growth from the tens of thousands expected in 2024 and indicates a potential stress test for the supply chain.
VIAVI's ONE LabPro platform features a web-based user interface and a Python-based automation framework, allowing for advanced traffic generation and analysis. This is essential for testing the functionality and performance of integrated circuits, pluggable interfaces, and network devices.
The ONE LabPro platform and the ONE-1600 module will be showcased at industry events in China and Germany, allowing industry professionals to see the technology in action.
The information in this article is based on a press release statement from VIAVI Solutions.
In other recent news, Viavi Solutions disclosed its earnings for the fourth quarter and full fiscal year of 2024. The company reported a net revenue of $252 million for the quarter, indicating a 2.4% increase sequentially but a 4.4% decrease year-over-year. For the full fiscal year, the revenue stood at $1 billion, marking a 9.6% decline compared to the previous year. Furthermore, the company's operating margin for the quarter was 10.9%, and earnings per share reached $0.08.
In addition to these financial results, Viavi Solutions also announced the initiation of a restructuring plan. The plan aims for annualized cost savings of approximately $25 million by the end of fiscal 2025. For the first quarter of fiscal 2025, the company anticipates revenue to be in the range of $235 million to $245 million.
These recent developments hint at a conservative spending environment, with the company expecting a gradual recovery in demand. Viavi Solutions also projects continued growth in its Optical Security and Performance segment due to seasonally stronger demand for 3D sensing products.
InvestingPro Insights
As Viavi Solutions Inc. (NASDAQ: VIAV) continues to innovate with the release of the ONE-1600 testing module, the company's financial health and market performance provide additional context for investors. With a market capitalization of $1.77 billion, Viavi's position in the market is notable, especially considering the specialized nature of its network testing and monitoring solutions.
One InvestingPro Tip that stands out is the company's high shareholder yield, which is a positive indicator for investors looking for companies that prioritize shareholder returns. Additionally, analysts have a positive outlook on Viavi's profitability, predicting net income growth this year. This aligns with the company's strategic initiatives, such as the launch of the ONE-1600, aimed at addressing the high-speed data transmission needs of AI, ML, and quantum computing applications.
Regarding Viavi's financial metrics, the company's P/E ratio stands at -68.88, reflecting challenges in profitability over the last twelve months. However, the company is trading at a PEG ratio of 0.33, suggesting that its stock price may be undervalued relative to its earnings growth potential. This could be an attractive point for investors who are confident in the company's future performance. The gross profit margin is robust at 58.94%, indicating efficient operations and a strong ability to generate profit from its revenues.
Investors interested in Viavi Solutions can find additional InvestingPro Tips on the platform, with a total of 8 tips available, providing deeper insights into the company's financial health and market potential. For more detailed analysis and metrics, visit https://www.investing.com/pro/VIAV.
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