Is This Viavi Solutions Inc (NASDAQ:VIAV)’s New Revenue Weapon?

Just when Viavi Solutions Inc (NASDAQ:VIAV) appears to be coming under pressure from an activist investor to change its strategy, the company has announced a new product that could be a game-changer.

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Viavi Solutions has come up with an automated interference hunting solution called Interference Advisor, which is targeting the mobile network operator market. The company has not discussed the pricing details of the product or the kind of financial impact it expects from its sale.

However, the company has outlined how it thinks the product is uniquely-placed to drive revenue growth.

Speedy resolution of network problems

According to Viavi, the proliferation of mobile communications has left network operators struggling with crowded airwaves that hamper the quality of their services to customers. While there are tools that can be deployed to locate a network problem, it typically takes days or even weeks before an operator can identify the source of interference.

However, Viavi says its InterferenceAdvisor tool is different. It is able to locate network troubles in just hours so that engineers can quickly fix the problem and restore service to normalcy in the shortest time possible. That should enable a network operator to guarantee its customers quality services or speedy resolution of network hitches.

Viavi Solutions has cited the Internet of Things as one reason mobile network operators will face increased interference challenges. As such, it is looking to make money helping mobile network operators to rapidly locate and fix network interference issues.

In addition to the speedy location of network interference, Viavi says that its InterferenceAdvisor comes at a lower total cost compared to rival solutions.

Call for strategy change

Shareholder Sandell Asset Management recently urged the management of Viavi Solutions to consider changing the strategy for the company. CEO of Viavi, Oleg Khaykin, responded to the call for a strategy change and said that many of the issues that Sandell raised were not new because the board and the management have already considered them.

F4Q2016 results

Viavi Solutions posted adjusted EPS of $0.10 on revenue of $224.1 million in its F4Q2016. The results surpassed the expectations of analysts for EPS of $0.09 and revenue of $220.4 million.

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