Viavi Solutions Inc. (NASDAQ:VIAV) Q1 2020 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 04:30 pm ET

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Viavi Solutions Inc. (NASDAQ:VIAV) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator instructions] And your first question comes from the line of Alex Henderson from Needham. Your line is open.

Analyst
Alex Henderson

Great, thank you very much. So clearly, there is some tension in service provider spending norm in North America. But broadly, are you seeing macro conditions starting to creep in conditions in the US and Europe? Or is it more a priority of spending type issue? How would you characterize the broader macro environment versus the focus of the Company spends?

Executive
Oleg Khaykin

Hi, Alex. Well -- so actually, let me correct it. The North American service provider spend environment is no better or worse than it was all for the last 12 months. What I -- we still get very good revenue from it. Obviously, it's not as big as it used to be several years back. But we are getting our fair share of whatever is being spent. It's just no longer as good as it used to be, and it's nowhere near as good as what we see in Europe and other parts of the world.

The difference, I would say, when I say sporadic, it's just that sporadic. I mean, one day you could get a big whopper of an order, and that'd be enough. And there'll be no forewarning, and there is really nothing leading up to it. It's just -- it seems to me, it's more reactionary to demand rather than pointing for demand. So that's really, I'd say, will be my commentary.

In terms of the macro, I don't think there is really, that's a presence yet. But we see healthy demand in some of the growth segments. Clearly, everybody is now gearing up for 5G. Even though, they may not be spending a lot of it now, but they all thinking where they're going to get the money. And as you can imagine, if -- in the current environment, my bet would be that a lot of the money will come at the expense of investing in the 2G and 3G and 4G infrastructure to keep it up to date.

So I think, some of the pairing of spending that we've seen, I mean I don't have much statistical data to make a firm conclusion. But I think, we are seeing some hesitancy to spend money ahead of the big 5G wave.

Analyst
Alex Henderson

Great quarter, thanks.

Operator
Operator

And your next question comes from the line of Samik Chatterjee from JPMorgan. Your line is open.

Analyst
Joe Cardoso

Hi guys. This is Joe Cardoso for Chatterjee. My first is question relative to --

Executive
Amar Maletira

We can't hear you.

Executive
Oleg Khaykin

We cannot hear you. Could you speak up more closer to the speaker?

Analyst
Joe Cardoso

Hi guys. Sorry, can you hear me now?

Executive
Oleg Khaykin

Much better. Yes.

Analyst
Joe Cardoso

Apologies on that. So one question from me, relative to your top-line performance in the quarter, it came in above the high-end of your guidance. How should we think about the beat in the context of that momentum continuing, as we progress through the year? And relative to your full-year guidance