Viavi lowers Q3 revenue view to $246M-$248M from $256M-$276M, consensus $269.48M

Resulting preliminary Q3 non-GAAP operating margin view is 10.5%-11.5% vs. previous guidance range of 13.0%-14.2%. "The pullback in R&D spend at network equipment manufacturers (NEMs) and semiconductor companies was much higher than anticipated leading to revenue and non-GAAP operating margin coming in below the lower end of our guidance" said CEO Oleg Khaykin. "The spending conservatism and rapid slowdown that we saw in the Service Provider and Data Center spend at the end of fiscal first quarter is now percolating down to the system and component suppliers. The rest of the NSE business came in-line with our original expectations. We continue to see stabilization of demand for our field instruments. Our OSP business segment revenue was also within our initial expected range. Our previously announced cost reduction measures are progressing on schedule, and we expect them to be substantially complete by end of this fiscal year."