Viavi Solutions reports record profits for Santa Rosa division

First quarter revenue increased 48.3 percent from a year earlier to $64.2 million while gross profit grew 60.2 percent to $37 million for the quarter.|
ROBERT DIGITALE
THE PRESS DEMOCRAT

Viavi Solutions, until this summer part of JDS Uniphase, on Monday reported record profits and revenue for its Santa Rosa-based division.

First quarter revenue for Santa Rosa's Optical Security and Performance division increased 48.3 percent from a year earlier to $64.2 million. Gross profit grew 60.2 percent to $37 million for the quarter, which ended Oct. 3.

The division enjoyed 'a stellar quarter,' Viavi interim President and CEO Rick Belluzzo said in a conference call with analysts. He attributed the gains to a large increase in the printing of bank notes that use Viavi's color-shifting pigments to thwart counterfeiting.

Some of that extra printing business would continue this fall, officials said.

Viavi, meanwhile, reported declining revenue in its other two segments.

Quarterly revenue fell 3.2 percent to $117.6 million for the 'network enablement' segment and declined 5.1 percent to $47.9 million for the 'service enablement' segment. Overall the company reported a net loss of $67 million, or 28 cents per share. But when adjusted for one-time gains and costs, earnings amounted to 8 cents a share.

In August JDSU broke into two companies, each with new names: Viavi and Lumentum Holdings.

Belluzzo said Viavi now will 'focus on improving profitability and market share growth.'

The Santa Rosa division got its start six decades ago as Optical Coatings Laboratory Inc. It now employs about 455 workers, and its anti-counterfeiting pigments are used on the currency of more than 100 nations.

Headquartered in Milpitas, Viavi employs 3,200 workers in 45 offices worldwide. Its products include software, instruments and systems for the development, operation and optimization of data and communication networks for such customers as AT&T, Amazon, Bank of America, Ford, Costco, Microsft and Cisco. Viavi shares closed Monday at $5.93, a decline of 2 cents.

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

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