Viavi Solutions Inc. Common Stock Rosenblatt's 6th Annual Technology Summit: The Age of AI (Part II)
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Hi, everyone. Good afternoon. Welcome to the Rosenblatt Age of AI Technology Conference. This is a fireside chat with Viavi Solutions. I'm Mike Genovese, the cloud and communications equipment analyst. Super pleased today to be joined by the management team of Viavi Solutions, Oleg Khaykin and Ilan Daskal, and we also have Vibhuti Nayar from IR on the panel as well, just off-camera right now. We've got the whole team and hi, guys. Great to see you. Hi, Mike.
Good to see you again. Yeah. Been a long time.
Yep. A whole week. Well, bear with me here because my first questions tend to be a little bit wordy and have a little bit of windup to them.
I just want to level set the audience here, because you just reported fourth quarter, as you said, fourth quarter 2026, the June quarter, and you said that data center within your NSE segment, your big segment, was about 50% of the revenues, aerospace and defense about 17%, and telco is the rest. Given that, it looks like to investors that 800G test, transceiver type testing is probably the highest volume lab in production driver, and there's a surge in transceiver production across North America and Asia. What do you view your market share is in 800G and Ethernet testing today? How does that differ between the Western and the Asian transceiver makers?
How much tailwind remains in upgrading from 400G to 800G before 800G peaks?
Mike, before Oleg addresses the first question.
Oh Just sneaking in the safe harbor.
Yeah, for sure. We get in trouble with our GC.
So, obviously, we'll be discussing today some forward-looking in nature data and everything is subject to risks and uncertainties, as we all know. And everything that we discuss today is valid for today only, and we undertake no obligation to update these statements.
All right. Here. Thank you.
Ilan is also our general counsel right now.
Yeah. Your question again, in terms of market share monitoring, in test and measurement it's kind of difficult number because there's no third-party sizing of this thing.
But I'll go the following. If you take top 5 transceiver manufacturers in the world, we're working with all of them. The question really becomes to what extent and how deep we are. I would say our level of engagement is very high with probably 4 out of 5. One of the 5, they may be doing some internal engineering, so they'll be less. But I would say from number 1, number 2, and number 3, we are very much in all of their labs. So they use our equipment to design it, and then they buy our test equipment to build it out.
It is no longer just a, when we talk about production, test, and measurement, our market has been expanding significantly. In the old days, when you did a 400G, just in production, you measure is your laser working, how good is your dispersion, power in, power out, and the kind of badda boom, badda boom, and it is done, right? As you get into 800G, you now worry more about a laser, so you need a more precise, better laser measurement. You are looking at the insertion losses. You are looking at some maybe transceiver tests. You do more. As you go to 1.6T, it is a whole new ballgame. You are getting much more optical, and you have a more extensive test, and now you are actually doing a lot more functional test on the line. So the content for test is actually increasing.
Not only there is an intensity of tests, but there is also more equipment that you have to buy to test these things. That is a traditional market. Then there is a whole thing with the fiber, with the hollow-core, multi-core, multi ribbon cables that you plug in, like 8, 16, 32. Before, we never really cared about it. Now, the customers worry about making sure that connector is good, because if one fiber is bad, you throw away the entire connector. These are very expensive connectors. So you are looking for how clean is your surface. You use interferometry on the quality of the surface, because the higher the speeds you are using, any kind of imperfection can impact the quality of service. So we are opening all new markets now in manufacturing for fiber.
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