Viavi’s Santa Rosa division posts 16.2 percent revenue gain

Viavi Solutions on Tuesday again reported strong quarterly revenues for its Santa Rosa-based division, which posted an increase of 16.2 percent from a year earlier.

Revenue for Santa Rosa's Optical Security and Performance division amounted to $58.8 million for the quarter ending Jan. 2.

While less than the previous quarter, when the division posted a record $64.2 million, the results nonetheless were celebrated by company officials.

'The OSP business continues to deliver strong profitability,' Rick Belluzzo, Viavi's board chairman and interim president/CEO, said in a conference call with equities analysts.

The division still is benefiting from increased printing of bank notes that use Viavi's color-shifting pigments to thwart counterfeiting.

Milpitas-based Viavi, formerly known as JDS Uniphase, on Tuesday reported that total quarterly revenues increased 2.5 percent from a year earlier, to $232.1 million. Its 'network enablement' division increased revenues 5.7 percent, to $136.4 million. But the 'service enablement' division reported a revenue decline of 21.2 percent, to $36.9 million.

Also Tuesday, the company announced the appointment of Oleg Khaykin as its new president/CEO.

Khaykin previously served as president/CEO of International Rectifier from 2008 until its acquisition by Infineon AG in early 2015.

Viavi's Santa Rosa division got its start six decades ago as Optical Coating Laboratory Inc. It now employs about 450 workers, and its anti- counterfeiting pigments are used on the currency of more than 100 nations.

Asked by an analyst about the possibility of selling off the OSP division, Belluzzo suggested a few reasons why it was in Viavi's interest to hold onto the segment, including that business activity was 'on an uptick.'

'We think the OSP business is much more valuable than it was a year ago,' he said.

You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit.