VIAV
#Thank you.
It's roughly ---+ it's for the full year, right, talk about the full-year 40/60, but it's (multiple speakers)
It is.
It is again, this is ---+ this has some, still some tail to it, the mature product.
It did improve, in the sense of growth products did improve on a sequential basis, as well as on a year-on-year basis.
So just to give you a little bit more color, the growth business which has for the enterprise and the assurance piece, did grow double-digit for the full year.
For FY16, it did grow double digit, whereas the mature business declined double-digit.
And so, overall, the business was declining, because the mature business was a bigger mix of the growth business, when we started the year.
And that's now shifting.
Does that help.
Yes I think, just my view and obviously some of our salespeople may ---+ they may indicate that we may might have had a little impact, but largely, it was largely immaterial, because a lot of our sales are ---+ go through the sales force, and some of them are contractors who service Verizon network.
So we did not see much impact on the more field side instruments.
Now there were some delays on the higher end, high-performance product.
But I would say generally, we were not as heavily impacted (multiple speakers)
And they were already in our Q4 ---+
Yes.
And when we guided you, we already ---+ if you recall, we had already mentioned it, and we had baked it into our forecast, the impact.
And it came in, as <UNK> mentioned, in line with our expectation.
So we have a very strong position in North America.
So as a result, we are more impacted by fluctuations in North America, because we have pretty high share with all of the major carriers.
And to the extent, things go up, and down, it does impact us.
In Europe, we're significantly lower, I'd say positioned in terms of market presence.
So in many ways, by putting more focus on, we are able to offset any fluctuations through share gain.
And as I mentioned earlier, we are reviewing our sales strategy, and how we go to market, and Europe is one of the areas that is getting significantly greater attention.
So to some extent, we, it's easier to move the needle in areas where you're relatively a smaller player.
And so, to the extent they may have, overall trend may be down, but by us picking up share, we are ---+ we can look better than the market.
And just to ---+
Can I just, to clarify one thing, which is a very important point, we have NSE and OSP, NSE also grew to <UNK>'s point, and what he saw.
OSP also grew in Europe, because that's where you're seeing the growth in our OSP revenue overall.
Europe did grow.
That's right.
Well.
I think in generally, at least ---+ in the end, all products grow to the cycles, right.
As you go deployment, you have a high growth.
And as things become ---+ a technology becomes a little more mature, it slows down, and then just waits til the next cycle.
So at least in the near-term, anything optical, I think is going to be by far a stronger ---+ will have a stronger momentum in terms of growth, than anything relating to copper I would say.
So clearly, there's a lot of build out with our Metro 100 gig.
We all heard about it.
I mean, we've seen the results from a lot of the module manufacturers, and it's clearly creating a lot of pull and a lot of growth.
The other area that we are seeing, coming onto the horizon is the DOCSIS 3.1 deployment.
And that is ---+ there is a bit of a lag, because the first thing the service providers do, is deploy their core of the network, under the backend of the network.
And we seeing pretty good results with Arris and others that are selling into that market.
Once that is deployed, and we expect that to be coming to an end more or less, they're going to start rolling out the upgrades to the field.
And that's where a lot of our opportunities come in.
So we expect towards the end of the year, the cable products to start picking up.
And that cycle is not a very fast and sharp and short cycle.
It's more of a gradual, kind of multi-year upgrade cycle.
So that's kind of the second thing we are looking at.
And the third element is, as we see more and more copper getting replaced with fiber, such as pushing fiber all the way to the antenna, to the home.
We're seeing healthy demand for a lot of our fiber inspection equipment to ensure ---+ avoiding damaging equipment when you make a connectivity of fiber to the home, or fiber to the antenna, and things like that.
So on that thing, it's a ---+ usually you see the biggest demand is whenever the network gets upgraded, because then people rethink what is their current assurance or their location intelligence solution.
So I think there, we're seeing clearly, a lot of people looking to do anything with the edge.
There is much more opportunities that we are seeing in terms of potential leads on the edge of the network, of wireless edge.
Less so on the core, because core upgrades happen far more infrequently.
And once you are kind of committed to a particular platform, it's very difficult to penetrate or dislodge it.
But I think most of our opportunities that we are seeing are on the edge.
And once you win those, later as the customers upgrade the core, we come in with our solution into the core.
But so in that respect, Arieso is clearly the technology, where we are seeing continuous interest and demand.
Well, I mean, the cash is not burning a hole in my pocket, and there's many ways ---+ things we can do with cash.
And we always have to assess opportunities; does a M&A create value for shareholders or destroy it.
And also we have to take opportunities.
We can use that cash for stock buybacks or retiring some of the debt.
So in that respect, we clearly want to do the thing that give ---+ makes the most impact to our overall value of the Company.
So clearly, the acquisitions are interesting but ---+ and we have our short list.
But at this point, we do not see anything that is actionable enough, that will meaningfully the needle.
And in case of buybacks and retiring debt, clearly the market has been having a great run.
So we've been very opportunistic in selling Lumentum stock.
The company is doing really well, and we wish them to continue to do well, because it benefits us tremendously.
To the extent, the winds shift the other way, clearly, we'll be more aggressive and active buyer of the Viavi stock.
Well, I think, historically NSE business was predominantly NE business, selling core instruments, right.
And at least the way I understand the history ---+ as the company became more and more focused on developing and acquiring more software businesses, we had quite an attrition in our sales force, among the instrumentation sales force, and we brought in more of the solution sales talent.
So the mix of sales people on the street, and the focus have shifted somewhat away from the instruments.
And as a result, we've seen some headwinds in our instruments sales, and think to an extent, that we might have lost some share.
What we are trying to do, is to do some rebalancing, so to say swing the pendulum backwards, not all the way I mean, because we have a very nice SE business that we continue to invest.
But the reality is, instrumentation business is a very profitable, and it's a sustainable business.
And we need to put more money into that, to really drive the sales, and aggressively take back market share.
So that's really what we're doing, is just purely rebalancing investment from ---+ into the areas where we are currently generating a lot of profits.
And we see a lot of opportunities for taking back share, while at the same time being prudent about not over investing into our software solutions on the sales side, because of the much longer design-in cycles.
And you could spend a lot of money, and really have very little revenue to show for it for a while, until you get customer acceptance.
So we're trying to be more be more balanced in our approach, how we allocate resources.
So yes.
I think the SE book-to-bill was less than 1, because you saw the mature business run off, and so that's impacting our bookings there.
And the growth share of the business, especially on the assurance side in Q4, the bookings did well.
In fact, it did a little bit better than what we had expected.
Again, also remember these are lumpy, right.
So in a one quarter, we can get a lot of deals, in the other quarter, we see some of the deals getting pushed out.
So specifically, in Q4, the technology that <UNK> was talking about, the location intelligence technology which is Arieso did well.
I think I'll start, and let <UNK> chime in.
I think, when we said single-digits, we said ---+ we talked about our total software business, which includes our data center, right.
So there is two elements; there's the network software, and then there's a data center software, right.
So can you restate which part of the ---+ you're interested in, because there are two segments.
Well, I think, anytime there is an upgrade, or standard change or shift to a new technology, we always welcome it, because it means people need to buy more of the performance management and monitoring, both instruments and software.
So it's hard for me to predict to what extent we're going to benefit from it, but anytime you have anything different than status quo, it usually benefits us on the revenue line.
On the second question, I believe the second question is around the mature piece, and what our outlook is for the mature in 2017.
Again I won't go into the details, because we're not guiding for the full year, but just to give you some color, it, we expect it to continue to decline double-digit.
I think we have line of sight, of it declining double-digit.
We believe the growth piece of the business will increase double-digit to offset some of it.
But overall, I think you will see our SE business slightly declining.
However, our core instrument business, and <UNK> mentioned about the focus in core instrument, and how we are defending the core, and going after increasing our market share, should slightly grow, given some of the trends in fiber and optical, as well as in the Metro 100 gig build out, that should all ---+ should play very well to our strengths.
I think you may be thinking ---+ for NSE in general, one of the ---+ let me make sure I understand ---+ so it's dealing, working with some of the customers, you probably ---+ do you mean customers as service providers, or network equipment manufacturers.
Yes, I mean, maybe it was probably somebody before me, because I mean, we do ---+ the only things I know we work with our customers is on, sell through more customer solutions, where we partner with a leading OEMs like network equipment manufacturers, where we embed our solutions into it.
And that gives us obviously, differentiation, but it also gives us additional marketing and sales muscle on the street.
On the NE products, instrumentation, we do work closely with service providers, where we ---+ a lot of them have certain features that they like to embed.
So what we do in our design, is we design a general platform with an ability to give them options that we can integrate into a platform.
So I think maybe that was a discussion, I was saying, is our goal is to go to a fewer platforms that are more easily customizable.
So we can add value and differentiate from the off-the-shelf fixed products that may be out there.
And give the customer something that is highly compelling, gives them additional functionality that they demand, yet at a reasonable cost, since we are leveraging multiple platforms.
I think, I hope that answers your question, but that's generally what we are looking at.
