Investors Are Underestimating The Transformation Of Viavi Solutions, Inc.

The predecessor company of Viavi Solutions (VIAV), JDS Uniphase, split into two component pieces, Lumentum (LITE) and Viavi, in 2015. Since then, the companies operated separately with the exception that VIAV owned shares in LITE for several years. Initially, it appeared LITE kept all of the exciting growth businesses and VIAV was left with the lessor remnants plus some shares of LITE and significant NOLs. However, VIAV’s management did an excellent job narrowing the focus of the company and positioning it for future growth. They transformed the mix of business from 100% of revenue coming from mature, no growth businesses to more than 50% of revenue now from secular growth markets. Management achieved this through both targeted M&A and internal development. The company has spent more than $1.3B to position VIAV for significant growth opportunities ahead in three primary markets: 5G test and measurement, fiber deployments, and 3D sensing.

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