What Viavi Solutions Inc. told the SEC could break it.

Viavi has customer concentration in its Optical Security & Performance (OSP) segment: a single customer generated $166.7M of net revenue in fiscal 2025 (more than 10% of total) — its anti-counterfeiting currency-pigment business depends heavily on one buyer (a central bank/banknote printer), so loss or reduction of that relationship would materially hit revenue.

“One customer of the Company in the OSP segment generated $ 166.7 million, $ 154.1 million and $ 157.7 million of net revenue, which represented more than 10% of total net revenue, during fiscal 2025, 2024 and 2023, respectively.”

With significant contract manufacturing in China and Thailand and ~61% of revenue outside the Americas, Viavi faces added cost from broad-based tariffs (for itself and its suppliers) and from escalating U.S.–China tensions, sanctions and export controls that could curtail technology transfers, restrict sales or impair its China-region revenue.

“Given our global business, tariffs will result in additional cost for us and our suppliers. We are analyzing ways to optimize our operations and supply chain strategies, control costs and implement pricing actions to reduce the impact from tariffs.”

Viavi relies on a limited number of suppliers and contract manufacturers for key components and sub-assemblies in its test instruments and optical products, and for certain components has only a single source despite a two-source goal; disruption at those concentrated suppliers/CMs would constrain production.

“The Company relies on a limited number of suppliers and contract manufacturers for a number of key components and sub-assemblies contained in the Company's products.”