Viavi Solutions reported a mixed Q4 FY2024, with total net revenue of $252 million, up 2.4% sequentially but down 4.4% year over year. The quarter featured robust performance from the Optical Security and Performance Products (OSP) segment, which delivered $69.8 million in revenue and an operating margin of 34.8%, driven by higher gross margins and favorable mix aided by the Chandler manufacturing ramp. In contrast, Network Enablement (NSE) and its sub-segments faced a softer demand environment, with NSE revenue totaling $182.2 million and NSE gross margin remaining healthy at 62.1%, but NSE operating margin at 1.8% (below peers’ scale due to revenue mix and lower NSE volumes). The Service Enablement (SE) segment posted $23.7 million in revenue, up 5.8% year over year, aided by order push-outs from Q3, while NE and NSE benefited from a favorable product mix that supported overall gross margins around 57.3% for the quarter. Full-year revenue declined 9.6% to $1.0 billion, with an operating margin of 11.5% and annual EPS of $0.33. The company announced a restructuring program in June 2024 intended to reduce operating expenses by about $25 million on an annualized basis by the end of fiscal 2025, with approximately $15 million of charges in the near term and ~6% of global headcount affected. Management signaled a cautious near-term environment (calendar 2024) with a leaner path to recovery, noting that the first half of fiscal 2025 will remain conservative, with a gradual recovery anticipated in the second half and into fiscal 2025. The near-term guidance for Q1 FY2025 projects revenue of $235–$245 million and operating margin around 10.8%, with EPS in the $0.05–$0.07 range. Management highlighted 1.6 Tbps fiber/memo product transitions as a key growth driver for fiscal 2025, driven by data-center demand rather than traditional carrier-driven upgrades, and stressed that the data-center segment is likely to lead the next cycle of higher-speed testing (1.6 Tbps). The call emphasized AI OPS, ORAN developments, and Mil/Aero as growth pillars, along with stabilization in OSP anti-counterfeiting demand and 3D sensing, albeit with ASP erosion in 3D sensing. Investors should monitor the pace of NSE recovery, the execution of the restructuring savings, and the evolution of 1.6 Tbps-related opportunities as core drivers of Viavi’s updated growth trajectory.