Q122 Earnings Supplementary Slides

Fiscal 1Q 2022 Earnings Call Supplementary Slides

November 4, 2021

Cautionary Language Concerning Forward-Looking Statements

This presentation contains forward-looking statements under Section 27A of the Securities Act of 1934. Forward-looking statements are all statements we make other than those dealing specifically with historical matters. These forward-looking statements include, among other things, financial guidance. Please refer to the Company's filings with the Securities and Exchange Commission, including our annual report on Form 10-K filed August 23, 2021 for additional factors that could cause actual results to materially differ from current expectations. The forward-looking statements included in this presentation are valid only as of today's date except where otherwise noted. Viavi Solutions Inc. undertakes no obligation to update these statements.

This presentation and the Q&A that follows include non-GAAP financial measures which complement the Company's preliminary consolidated GAAP financial statements. These non-GAAP financial measures are not intended to supersede or replace the Company's preliminary GAAP financials. We provide a detailed reconciliation of preliminary GAAP results to the non-GAAP results in the Appendix to this presentation and in the "Preliminary Reconciliation of GAAP Measures to Non-GAAP Measures" schedule in our earnings release issued today. This earnings release is located in the Investor Relations section of our web site at https://investor.viavisolutions.com.

Note: Amounts presented in all slides are on a continuing operations basis unless otherwise noted.

Fiscal 1Q 2022 Financial Highlights

(Amounts reflect non-GAAP and in $millions, unless otherwise noted)

	Result	Y/Y Performance
Revenue	$326.8	up	14.8%
(exceeded $310M +/- $7M guidance range)
Non-GAAP Gross Margin	62.6%	remained relatively	(20) basis points
flat
NE	64.8%	up	100 basis points
SE	63.9%	down	(290) basis points
OSP	57.7%	down	(260) basis points
Non-GAAP Operating Margin	22.7%	up	140 basis points
(exceeded 22.0% +/- 0.5% guidance range)
NSE	13.5%	up	630 basis points
OSP	44.1%	down	(260) basis points
Non-GAAP Earnings Per Share	$0.24	up	14.3%
(exceeded $0.21 +/- $0.01 guidance range)
GAAP Operating Cash Flow	$53.4	down	16.4%

All non-GAAP amounts are reconciled to the corresponding GAAP amounts in the Appendix beginning on slide 14.

Income Statement

(Amounts reflect non-GAAP and in $millions, except per share amounts)

		F1Q 2022		F4Q 2021	F1Q 2021	QoQ	YoY
Revenue		$326.8		$310.9	$284.7	5.1%	14.8%
Non-GAAP Gross Margin		62.6%		62.0%	62.8%	60 bps	(20) bps
Non-GAAP Operating Expenses		$130.2		$128.0	$118.2	1.7%	10.2%
Non-GAAP Operating Profits		$74.3		$64.7	$60.6	14.8%	22.6%
Non-GAAP Operating Margin		22.7%		20.8%	21.3 %	190 bps	140 bps
Non-GAAP Net Income		$58.2		$52.5	$48.3	10.9%	20.5%
Non-GAAP EPS		$0.24		$0.22	$0.21	$0.02	$0.03

All non-GAAP amounts are reconciled to the corresponding GAAP amounts in the Appendix beginning on slide 14.

Revenue by Business Segment and Geographic Region

(Amounts in $millions)

	F1Q 2022	F4Q 2021	F1Q 2021	QoQ	YoY
Segment Mix
NE	$204.9	62.7%	$212.7	68.4%	$162.1	57.0%	(3.7%)	26.4%
SE	$23.0	7.0%	$23.8	7.7%	$21.4	7.5%	(3.4%)	7.5%
OSP	$98.9	30.3%	$74.4	23.9%	$101.2	35.5%	32.9%	(2.3%)
Total	$326.8	100.0%	$310.9	100.0%	$284.7	100.0%	5.1%	14.8%
Region Mix
Americas	$121.5	37.2%	$110.0	35.4%	$95.4	33.5%	10.5%	27.4%
Asia-Pacific	$126.3	38.6%	$103.7	33.4%	$108.2	38.0%	21.8%	16.7%
EMEA	$79.0	24.2%	$97.2	31.2%	$81.1	28.5%	(18.7%)	(2.6%)
Total	$326.8	100.0%	$310.9	100.0%	$284.7	100.0%	5.1%	14.8%