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Viavi Solutions Inc. VIAV Material Reconciling Items — Goodwill Impairment

Discontinued — last reported Q4 '17

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Other financials

Income statement

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Revenue$406.8M+42.8%
Gross profit$234.1M+45.7%
Operating income$24.8M+192%
Net income$6.4M-67.2%
EPS (diluted)$0.03-66.7%

Balance sheet

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Cash & equivalents$499.0M+33.4%
Total debt$286.6M+2.5%
Total equity$846.5M+16.1%
Total assets$2.5B+30.8%

Cash flow

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Operating cash flow$42.5M-4.9%
CapEx$5.9M-13.2%
Free cash flow$36.9M+1.1%

Valuation

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Market cap$11.64B+210%
Enterprise value$11.42B+213%
P/S8.5×+4.9×

Profitability

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Gross margin56.9%-0.8pp
Operating margin4.3%
Net margin-4%-4.5pp
FCF margin6.3%-1.8pp

Returns & leverage

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Return on equity-7%-7.7pp
Debt / equity0.3×0.0×
Current ratio1.6×+0.1×

Where this comes from

Reported directly by Viavi Solutions Inc. in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Viavi Solutions Inc.’s 10-K, filed August 29, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does material reconciling items — goodwill impairment mean?
A non-cash accounting charge taken when the value of a previously acquired business is determined to be lower than its recorded book value.
How do you interpret material reconciling items — goodwill impairment?
An increase indicates a significant write-down of asset value, suggesting that past acquisitions are underperforming expectations or that market conditions for that business unit have deteriorated. A decrease or absence of this charge suggests that the carrying value of goodwill remains supported by the expected future cash flows of the reporting units.
How does material reconciling items — goodwill impairment compare across companies?
Peers in the technology and optical components sectors often report similar impairment charges during periods of industry consolidation or technological shifts that render previous acquisitions less valuable.