Viavi Solutions executive sells over $82k in company stock

ViaVi Solutions Inc. (NASDAQ:VIAV) executive Luke M. Scrivanich, who serves as the company's Senior Vice President and General Manager of OSP, recently sold 9,561 shares of the company's common stock. The transaction, which took place on August 29, 2024, amounted to over $82,000, based on a weighted average sale price of $8.63 per share.

The sale was conducted in multiple trades with prices ranging from $8.48 to $8.71, reflecting the market's variability on the day of the transaction. Following this sale, Scrivanich's holdings in ViaVi Solutions decreased to 54,517 shares of common stock, directly owned.

The sales were part of a pre-arranged trading plan under rule 10b5-1, which was amended earlier in February 2023. These plans allow company insiders to set up predetermined trading schedules to sell stocks at a time when they are not in possession of material non-public information, providing a defense against potential allegations of insider trading.

Investors and the public are often interested in the trading activities of corporate insiders as they may provide insights into their perspective on the company's current valuation and future prospects. However, it should be noted that these transactions do not necessarily indicate a lack of confidence in the company by the executive; they could be part of personal financial planning or diversification strategies.

ViaVi Solutions Inc., headquartered in Chandler, Arizona, specializes in the semiconductor and related devices industry. The company, formerly known as JDS Uniphase Corp, has an established presence in the manufacturing sector with a fiscal year-end in late June.

For those interested in the specifics of the transaction, the company and the executive are committed to providing full information regarding the number of shares sold and the prices at which the transactions were executed upon request to the SEC staff, the issuer, or a security holder of the issuer.

The reported transactions are filed with the Securities and Exchange Commission and are publicly accessible, providing transparency in the trading activities of corporate insiders.

In other recent news, Viavi Solutions (NASDAQ:VIAV) disclosed its earnings for the fourth quarter and full year of 2024. The company reported a net revenue of $252 million for the quarter, aligning with its guidance and marking a 2.4% sequential increase, but a 4.4% decrease year-over-year. The total revenue for the fiscal year was $1 billion, a drop of 9.6% compared to the previous year. Viavi's operating margin for the quarter was noted at 10.9%, surpassing the midpoint of its guidance, and earnings per share (EPS) hit $0.08, at the high end of the guidance range.

In light of these developments, Viavi has initiated a restructuring plan targeting annualized cost savings of roughly $25 million by the end of fiscal 2025. In the first quarter of fiscal 2025, the company projects its revenue to fall between $235 million and $245 million. Despite a year-over-year revenue decline in both the Network Enablement (NE) and Network and Service Enablement (NSE) segments, the Optical Security and Performance (OSP) segment saw a 6.2% year-over-year revenue increase.

Viavi expects a conservative spending environment to persist throughout 2024, with a gradual demand recovery anticipated in the first half of 2025. The company's CEO, Oleg Khaykin, underscored the deployment of 5G technology and the recovery in demand for anti-counterfeiting and 3D sensing products as key factors that will shape Viavi's future performance.

InvestingPro Insights

As ViaVi Solutions Inc. (NASDAQ:VIAV) navigates the semiconductor and related devices industry, recent executive stock sales have drawn attention to the company's financial metrics and performance. InvestingPro data provides a snapshot of the company's market position with a market capitalization of $1.89 billion, indicating a significant presence within its sector.

Despite a challenging period, as evidenced by a revenue decline of 9.56% over the last twelve months as of Q4 2024, ViaVi Solutions has managed to maintain a substantial gross profit margin of 58.94%. This suggests that while the company is facing top-line pressures, it is still able to efficiently manage its cost of goods sold to retain a healthy margin on its products.

InvestingPro Tips highlight two critical aspects of ViaVi's current financial health. Firstly, the company's liquid assets surpass its short-term obligations, suggesting a strong liquidity position that can be crucial for navigating uncertain market conditions. Secondly, analysts predict that ViaVi will be profitable this year, which could signal a turnaround from the previous year where it was not profitable. This forecasted shift towards profitability, along with a moderate level of debt, may provide some reassurance to investors concerned about the recent insider stock sales.

For those interested in further analysis, InvestingPro offers additional tips and metrics for ViaVi Solutions, which can be found at https://www.investing.com/pro/VIAV. These include insights into shareholder yield, valuation multiples, and historical return performance, providing a comprehensive view of the company's financial landscape.

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