Revenue during the quarter dropped 11.07 percent to $196 million from $220.40 million in the previous year period. Gross margin for the quarter expanded 12 basis points over the previous year period to 59.69 percent. Operating margin for the quarter stood at negative 7.76 percent as compared to a positive 3.27 percent for the previous year period.

Operating loss for the quarter was $15.20 million, compared with an operating income of $7.20 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $30.10 million compared with $34.30 million in the prior year period. At the same time, adjusted EBITDA margin contracted 21 basis points in the quarter to 15.36 percent from 15.56 percent in the last year period.

“We exceeded our EPS guidance range with a non-GAAP EPS of $0.09,” said Oleg Khaykin, Viavi’s President and Chief Executive Officer. “OSP revenue came in above expectations due to stronger than expected anti-counterfeiting demand, and in part offset weaker than expected NSE revenue that was impacted by weaker service provider and enterprise spend.”

For the fourth-quarter 2017, Viavi  expects adjusted revenue to be in the range of $188 million to $204 million and adjusted diluted earnings per share to be in the range of $0.07 to $0.09.