VIAVI SOLUTIONS INC.VIAV

VIAVI SOLUTIONS INC. Earnings Per Share Disclosure

10-KFiled Aug 11, 20252 min read
Note 3. Earnings Per Share
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. If dilutive, the effect of outstanding ESPP purchase rights, restricted stock units (RSUs), performance-based stock units (PSUs), market-based stock units (MSUs), stock options and Senior Convertible Notes is reflected in diluted net income (loss) per share by application of the treasury stock method and/or the if-converted method, as applicable. The calculation of diluted net income (loss) per share excludes all anti-dilutive common shares.
The following table sets forth the computation of basic and diluted net income (loss) per share (in millions, except per share data):
 Years Ended
 June 28, 2025June 29, 2024July 1, 2023
Numerator:   
Net income (loss)$34.8 $(25.8)$25.5 
Denominator:
Weighted-average shares outstanding:
Basic 222.5 222.6 224.6 
Shares issuable assuming conversion of convertible notes(1)
— — 0.3 
Effect of dilutive securities from stock-based compensation plans3.2 — 1.7 
Diluted225.7 222.6 226.6 
Net income (loss) per share:
Basic$0.16 $(0.12)$0.11 
Diluted$0.15 $(0.12)$0.11 
(1) Represents the dilutive impact for the Company's 1.75% Senior Convertible Notes due 2023 (2023 Notes), the 1.00% Senior Convertible Notes due 2024 (2024 Notes) and the 1.625% Senior Convertible Notes due 2026 (2026 Notes). The par amount of the Company’s convertible notes is payable in cash equal to the principal amount of the notes plus any accrued and unpaid interest and the “in-the money” conversion benefit feature above the conversion price is payable in cash, shares of the Company’s common stock or a combination of both, at the Company’s election. Refer to “Note 11. Debt” for more information.
The following table sets forth the weighted-average potentially dilutive securities excluded from the computation of the diluted net income (loss) per share because their effect would have been anti-dilutive (in millions):
 Years Ended
 June 28, 2025June 29, 2024July 1, 2023
Full Value Awards(1)
1.0 5.7 3.7 
(1) See “Note 16. Stock-Based Compensation” for definition of Full Value Awards.

Historical Timeline

Fiscal YearFiled
2025Aug 11, 2025Showing above
2024Aug 16, 2024
2023Aug 17, 2023
2022Aug 19, 2022
2021Aug 23, 2021
2020Aug 24, 2020
2019Aug 27, 2019
2018Aug 28, 2018
2017Aug 29, 2017
2016Aug 30, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance