2018 Q1 Form 10-Q Financial Statement

#000091209318000029 Filed on May 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q3 2017 Q2
Revenue $219.4M $195.2M $196.0M
YoY Change -12.9% -11.07%
Cost Of Revenue $95.40M $78.20M $79.00M
YoY Change -11.14% -11.34%
Gross Profit $123.3M $112.7M $117.0M
YoY Change -17.19% -10.89%
Gross Profit Margin 56.2% 57.74% 59.69%
Selling, General & Admin $86.00M $72.30M $76.20M
YoY Change -19.49% -5.46%
% of Gross Profit 69.75% 64.15% 65.13%
Research & Development $32.10M $29.10M $34.10M
YoY Change -27.97% -14.75%
% of Gross Profit 26.03% 25.82% 29.15%
Depreciation & Amortization $19.50M $8.400M $13.80M
YoY Change -47.83% -12.66%
% of Gross Profit 15.82% 7.45% 11.79%
Operating Expenses $122.9M $106.0M $132.2M
YoY Change -20.72% 6.53%
Operating Profit $400.0K $6.700M -$15.20M
YoY Change 179.17% -311.11%
Interest Expense $11.40M $12.50M $10.70M
YoY Change -47.7% 17.58%
% of Operating Profit 2850.0% 186.57%
Other Income/Expense, Net $3.500M $200.0K $5.000M
YoY Change -81.82% 525.0%
Pretax Income -$7.600M -$5.600M $30.30M
YoY Change -92.42% -21.71%
Income Tax $3.100M $2.000M $4.300M
% Of Pretax Income 14.19%
Net Earnings -$10.70M -$7.600M $26.00M
YoY Change -88.81% -23.08%
Net Earnings / Revenue -4.88% -3.89% 13.27%
Basic Earnings Per Share -$0.05 -$0.03 $0.11
Diluted Earnings Per Share -$0.05 -$0.03 $0.11
COMMON SHARES
Basic Shares Outstanding 226.3M shares 228.1M shares 229.4M shares
Diluted Shares Outstanding 226.3M shares 228.1M shares 234.6M shares

Balance Sheet

Concept 2018 Q1 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $731.0M $1.437B $1.443B
YoY Change 48.45% 45.32%
Cash & Equivalents $534.3M $1.004B $964.2M
Short-Term Investments $196.0M $432.0M $479.0M
Other Short-Term Assets $67.00M $62.00M $65.00M
YoY Change 40.91% 38.3%
Inventory $104.2M $48.00M $46.80M
Prepaid Expenses $12.10M $8.300M $11.40M
Receivables $188.2M $120.4M $142.6M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.090B $1.667B $1.698B
YoY Change 37.58% 36.44%
LONG-TERM ASSETS
Property, Plant & Equipment $174.5M $136.9M $134.6M
YoY Change 2.93% 0.15%
Goodwill $344.2M $151.6M $150.7M
YoY Change -0.33% -38.57%
Intangibles $265.3M $31.10M $37.60M
YoY Change -48.08% -45.82%
Long-Term Investments
YoY Change
Other Assets $14.60M $14.40M $12.30M
YoY Change 14.29% -33.87%
Total Long-Term Assets $917.7M $443.5M $443.2M
YoY Change -4.91% -23.68%
TOTAL ASSETS
Total Short-Term Assets $1.090B $1.667B $1.698B
Total Long-Term Assets $917.7M $443.5M $443.2M
Total Assets $2.007B $2.111B $2.141B
YoY Change 25.77% 17.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $55.80M $32.60M $34.70M
YoY Change -30.64% -13.03%
Accrued Expenses $35.60M $30.80M $27.70M
YoY Change 23.69% 1.47%
Deferred Revenue $60.20M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $420.0M $443.0M
YoY Change
Total Short-Term Liabilities $690.7M $228.8M $247.0M
YoY Change 1.06% 5.78%
LONG-TERM LIABILITIES
Long-Term Debt $393.0M $959.0M $986.0M
YoY Change 64.49% 69.42%
Other Long-Term Liabilities $192.3M $163.9M $164.4M
YoY Change -8.49% -4.64%
Total Long-Term Liabilities $192.3M $163.9M $164.4M
YoY Change -8.49% -4.64%
TOTAL LIABILITIES
Total Short-Term Liabilities $690.7M $228.8M $247.0M
Total Long-Term Liabilities $192.3M $163.9M $164.4M
Total Liabilities $883.0M $392.7M $411.4M
YoY Change -3.16% 1.36%
SHAREHOLDERS EQUITY
Retained Earnings -$69.36B -$69.31B -$69.32B
YoY Change -0.11% 0.02%
Common Stock $70.18B $70.18B $70.18B
YoY Change 0.18% 0.19%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $776.1M $803.5M $771.2M
YoY Change
Total Liabilities & Shareholders Equity $2.007B $2.111B $2.141B
YoY Change 25.77% 17.31%

Cashflow Statement

Concept 2018 Q1 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income -$10.70M -$7.600M $26.00M
YoY Change -88.81% -23.08%
Depreciation, Depletion And Amortization $19.50M $8.400M $13.80M
YoY Change -47.83% -12.66%
Cash From Operating Activities $13.60M $11.00M $28.70M
YoY Change -62.46% -20.94%
INVESTING ACTIVITIES
Capital Expenditures -$14.90M $8.400M -$10.30M
YoY Change -194.38% 43.06%
Acquisitions $55.30M
YoY Change
Other Investing Activities -$198.4M $47.00M $39.10M
YoY Change -2.49% -49.68%
Cash From Investing Activities -$213.3M -$61.40M $28.80M
YoY Change -256.23% -59.15%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $9.900M $9.200M $51.90M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -33.00M -$174.6M 393.7M
YoY Change 1048.68% -15848.0%
NET CHANGE
Cash From Operating Activities 13.60M $11.00M 28.70M
Cash From Investing Activities -213.3M -$61.40M 28.80M
Cash From Financing Activities -33.00M -$174.6M 393.7M
Net Change In Cash -232.7M -$215.9M 451.2M
YoY Change -504.31% 332.6%
FREE CASH FLOW
Cash From Operating Activities $13.60M $11.00M $28.70M
Capital Expenditures -$14.90M $8.400M -$10.30M
Free Cash Flow $28.50M $2.600M $39.00M
YoY Change -93.19% -10.34%

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CY2018Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
39800000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
2200000 USD
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
234600000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
235900000 shares
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
226300000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
227300000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
229400000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
230800000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
226300000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
227300000 shares
CY2017Q2 viav Finite Lived Intangible Assets Amortized Expense
FiniteLivedIntangibleAssetsAmortizedExpense
7100000 USD
viav Finite Lived Intangible Assets Amortized Expense
FiniteLivedIntangibleAssetsAmortizedExpense
21500000 USD
CY2018Q1 viav Finite Lived Intangible Assets Amortized Expense
FiniteLivedIntangibleAssetsAmortizedExpense
10700000 USD
viav Finite Lived Intangible Assets Amortized Expense
FiniteLivedIntangibleAssetsAmortizedExpense
25400000 USD
CY2017Q2 viav Gross Profit Margin
GrossProfitMargin
0.597
viav Gross Profit Margin
GrossProfitMargin
0.598
CY2018Q1 viav Gross Profit Margin
GrossProfitMargin
0.564
viav Gross Profit Margin
GrossProfitMargin
0.578
viav Increase Decreasein Asset Retirement Obligationsand Deferred Rent Expense
IncreaseDecreaseinAssetRetirementObligationsandDeferredRentExpense
-500000 USD
viav Increase Decreasein Asset Retirement Obligationsand Deferred Rent Expense
IncreaseDecreaseinAssetRetirementObligationsandDeferredRentExpense
0 USD
viav Noncash Accounts Receivable Charges
NoncashAccountsReceivableCharges
1800000 USD
viav Noncash Accounts Receivable Charges
NoncashAccountsReceivableCharges
2100000 USD
CY2017Q2 viav Operating Income Loss Margin
OperatingIncomeLossMargin
-0.078
viav Tax Cutsand Jobs Actof2017 Changein Tax Rate Deferred Tax Liability Income Tax Expense Benefit
TaxCutsandJobsActof2017ChangeinTaxRateDeferredTaxLiabilityIncomeTaxExpenseBenefit
-2000000 USD
viav Tax Cutsand Jobs Actof2017 Changein Tax Rate Deferred Tax Liability Income Tax Expense Benefit
TaxCutsandJobsActof2017ChangeinTaxRateDeferredTaxLiabilityIncomeTaxExpenseBenefit
-2000000 USD
viav Tax Cutsand Jobs Actof2017 Income Tax Expense Benefit
TaxCutsandJobsActof2017IncomeTaxExpenseBenefit
-6500000 USD
viav Term Of Maturities Of Instruments Classified As Current Assets Included In Short Term Investments
TermOfMaturitiesOfInstrumentsClassifiedAsCurrentAssetsIncludedInShortTermInvestments
P12M
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;font-style:normal;font-weight:bold;text-decoration:none;">Note 2. Recently Issued Accounting Pronouncements</font><font style="font-family:Times New Roman;font-size:10pt;font-style:normal;font-weight:bold;text-decoration:none;"> </font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2018, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued guidance that allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the change in the U.S. federal corporate income tax rate. The guidance is effective for the Company in the first quarter of fiscal 2019 and the Company is evaluating the impact.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2017, the FASB issued guidance that clarifies the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under the relevant authoritative guidance. The guidance is to be applied prospectively, and is effective for the Company in the first quarter of fiscal 2019. Early adoption is permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements, absent any award(s) modified on or after adoption date.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2016, the FASB issued guidance that will require that the amounts generally described as restricted cash and restricted cash equivalents would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows.&#160;The new guidance also requires certain disclosures to supplement the statement of cash flows. The guidance is effective for the Company in the first quarter of fiscal 2019. Other than changes in the presentation within the statements of cash flows and additional required disclosures, the adoption of this new accounting guidance will not have an impact on the consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In October 2016, the FASB issued guidance that requires entities to recognize at the transaction date the income tax consequences of intra-entity transfer of an asset other than inventory. The guidance is effective for the Company in the first quarter of fiscal 2019. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial instruments will be estimated based on expected losses. The new guidance also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. The guidance is effective for the Company in the first quarter of fiscal 2021 and earlier adoption is permitted. The Company is evaluating the impact of adopting this new accounting guidance on its consolidated financial statements.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued guidance regarding both operating and financing leases, requiring lessees to recognize on their balance sheets &#8220;right-of-use assets&#8221; and corresponding&#160;lease&#160;liabilities, measured on a discounted basis over the lease&#160;term. Virtually all leases will be subject to this treatment except leases that meet the definition of a &#8220;short-term&#160;lease.&#8221; The guidance requires a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The guidance is effective for the Company in the first quarter of fiscal 2020. While the Company is not yet in a position to assess the full impact of the application of the new guidance, the Company expects adoption of this guidance will materially increase the assets and liabilities recorded on its Consolidated Balance Sheets.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued new authoritative guidance related to revenue recognition from contracts with customers. This new guidance will replace current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The new guidance provides a unified model to determine when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This new guidance allows for either full retrospective adoption or modified retrospective adoption. The FASB deferred the effective date for this new guidance by one year to December 15, 2017 for annual reporting periods beginning after such date. The Company will adopt the guidance in the first quarter of fiscal 2019 using the full retrospective method, reflecting the application of the new standard in each prior reporting period.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In preparation for the implementation and adoption of the new guidance, the Company has established a cross-functional team and implementation plan to identify processes, systems and internal controls over financial reporting impacted by the new guidance. The implementation plan includes comparison of the Company&#8217;s historical accounting policies and practices to the requirements of the new guidance, and identifying differences from applying the requirements of the new guidance to the Company&#8217;s contracts, consolidated financial statements and related disclosures.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">While the Company&#8217;s assessment of the potential impacts of the new guidance is not yet complete, initially the Company believes the most significant impact on the accounting for contracts with customers will be for certain arrangements that include sales of software solutions bundled with post-contract support (PCS) and/or services, where VSOE has not been established for the PCS and/or the services. Due to lack of VSOE under the current guidance, the Company defers recognition of any revenue attributable to such arrangements until the services lacking VSOE are complete. Such revenue is then recognized ratably over the remaining support term. The requirement to have VSOE for undelivered elements to enable the separation of the revenue for delivered software is eliminated under the new guidance and the Company will be required to allocate total contract revenue to each element (referred to as a distinct performance obligation under the new standard) based on either an established or estimated standalone selling price. Accordingly, a portion of the revenue for these types of contracts with customers will be recognized when the software or software solution is transferred to the customer. Dependent on contract-specific terms, the Company expects the actual revenue recognition treatment and timing will vary under the new guidance for some of these arrangements. The Company will continue to evaluate the impact of this new guidance on its consolidated financial statements and related disclosures.</font></div></div>
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:normal;font-weight:normal;text-decoration:underline;">Fiscal Years</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company utilizes a </font><font style="font-family:inherit;font-size:10pt;">52</font><font style="font-family:inherit;font-size:10pt;">-</font><font style="font-family:inherit;font-size:10pt;">53</font><font style="font-family:inherit;font-size:10pt;">&#160;week fiscal year ending on the Saturday closest to June&#160;30th. The Company&#8217;s fiscal </font><font style="font-family:inherit;font-size:10pt;">2018</font><font style="font-family:inherit;font-size:10pt;"> is a </font><font style="font-family:inherit;font-size:10pt;">52</font><font style="font-family:inherit;font-size:10pt;">-week year ending on </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">. The Company&#8217;s fiscal </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> was a </font><font style="font-family:inherit;font-size:10pt;">52</font><font style="font-family:inherit;font-size:10pt;">-week year ending on </font><font style="font-family:inherit;font-size:10pt;">July&#160;1, 2017</font><font style="font-family:inherit;font-size:10pt;">. </font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;font-size:10pt;"><font style="font-family:Times New Roman;font-size:10pt;color:#000000;font-style:normal;font-weight:normal;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:10px;padding-top:10px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the Company&#8217;s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements, the reported amount of net revenues and expenses and the disclosure of commitments and contingencies during the reporting periods. The Company bases estimates on historical experience and on various assumptions about the future that are believed to be reasonable based on available information. The Company&#8217;s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information.</font></div></div>

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