Viavi Solutions delivered total net revenue of $238.2 million for the quarter ended September 28, 2024 (Q1 FY25), down 3.9% year over year and 5.5% sequentially. Despite a softer top line, the company reported a solid gross margin of 57.1% and an operating margin of 10.0%, with EBITDA of $28.8 million. Net income was negative $1.8 million, corresponding to an EPS of -$0.0081. The results reflect a bifurcated demand environment: Network Enablement (NSE) struggled against slower order pace, while Optical Security and Performance Products (OSP) posted stronger-than-expected performance, driven by anticounterfeiting and 3D sensing, with OSP gross margin of 55.3% and operating margin of 39.6%. Viavi guided Q2 FY25 revenue of $255–$265 million, with total operating margin of about 12.4% (±100 bps) and EPS of $0.09–$0.11, underscoring a management view that NSE normalization is underway and that a multi-quarter recovery is becoming visible. Cash generation remained healthy, with $13.5 million of operating cash flow in the quarter and free cash flow of $6.2 million; Viavi also repurchased $16.4 million of stock and ended the quarter with substantial liquidity (cash and short-term investments around $498 million).