Financial Data and Key Metrics Changes - Adjusted EBITDA more than doubled in Q1 2021, reaching $8.4 million, up $4.2 million or 103% year-over-year, and up over 52% from Q4 2020 [6][17] - Total revenue for Q1 2021 was $66.3 million, an increase of $7.7 million or 13.1% compared to $58.6 million in Q1 2020 [15] - Non-GAAP net income for Q1 2021 was $6.9 million, up nearly 138% from $2.9 million in the same period last year [17] Business Line Data and Key Metrics Changes - North American revenue increased over 14% year-over-year to $45.5 million, driven primarily by the private network business [7][15] - International revenue returned to growth, reaching $20.8 million in Q1 2021, compared to $18.8 million in Q1 2020, marking a 10% increase [15][13] Market Data and Key Metrics Changes - The company reported a backlog of over $200 million at the end of Q1 2021 [15] - The North American team is focusing on expanding sales for 5G applications, addressing the growing data demand and network complexity [10] Company Strategy and Development Direction - The company is focused on four key areas: increasing revenue, capturing differentiation, driving down costs, and enhancing shareholder value [7] - The introduction of the Frequency Assurance Software (FAS) aims to improve network reliability and uptime, particularly in the context of emerging technologies like WiFi 6e [8] - The company is well-positioned to capitalize on rural broadband growth opportunities, supported by over $30 billion in FCC funding [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, anticipating revenue growth for fiscal 2021 in the range of $245 million to $255 million and adjusted EBITDA between $18 million and $22 million [20] - The management acknowledged potential challenges due to COVID-19 but noted a significant uptick in field service activities as lockdowns were lifted [20] Other Important Information - The company achieved a gross margin of 36.6% in Q1 2021, slightly down from 38.5% in Q1 2020 [15] - Operating expenses decreased approximately 16% year-over-year, attributed to cost-saving initiatives and restructuring plans [16] Q&A Session Summary Question: Congratulations on an incredible quarter - Management acknowledged the compliment [21] Question: What are the highlights making year-over-year reduction in operating expenses plausible? - Management highlighted restructuring plans aimed at cutting operating costs, targeting annualized savings of about $3.5 million [22][23] Question: What are the key drivers for customers regarding the multi-band solution for 5G? - Management explained that the multi-band solution allows operators to switch between bands at a low cost, reducing total cost of ownership and providing flexibility [25]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 2, 2020 __________________________ or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 001-33278 AVIAT NETWORKS, INC. (Exact name of registran ...

Aviat Networks, Inc. (NASDAQ:AVNW) Q4 2020 Results Earnings Conference Call August 27, 2020 4:30 PM ET Company Participants Keith Fanneron - Vice President of Global Finance and Investor Relations Pete Smith - President, Chief Executive Officer Eric Chang - Senior Vice President and Chief Financial Officer Conference Call Participants Tim Savageaux - Northland Capital Theodore O'Neill - Litchfield Hills Research Mark Spiegel - Stanphyl Capital Steve Busch - Everglades Resources Operator Ladies and gentlemen ...

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________ Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 3, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33278 _________ ...

Financial Data and Key Metrics Changes - Third quarter revenue increased by approximately 14%, amounting to a $7.3 million increase compared to Q3 of fiscal 2019 [8][16] - Adjusted EBITDA rose by $4 million, reaching $3.5 million, compared to a loss of $0.5 million in the same period last year [8][20] - Non-GAAP net income for Q3 was $2.2 million, a significant improvement from a net loss of $1.8 million in the previous year [20] - Cash and cash equivalents increased to $39.2 million, up $1.1 million sequentially and $7.3 million since the fiscal year began [21] Business Line Data and Key Metrics Changes - North America revenue saw over a 30% increase, contributing to almost 61% of total revenue [16][17] - Product sales increased by over 18%, while services revenue grew by over 5% compared to Q3 of fiscal 2019 [17] - International revenue experienced a decline of approximately 5%, although this was an improvement compared to the first half of the fiscal year [16][17] Market Data and Key Metrics Changes - The APAC region returned to growth with revenue up almost 18% in Q3, while Latin America also showed positive trends [16][34] - North America remains a strong market, with expectations for continued growth in Q4 and the next fiscal year [23] Company Strategy and Development Direction - The company aims to expand its market share through both products and services with existing accounts and target new customer types, particularly mid-size deals [10][12] - Focus on growing with current accounts while targeting tier 2 service providers and larger ISPs to reduce dependency on any single customer [11][12] - Emphasis on operational efficiency and cost reduction to drive profitability and shareholder value [14][25] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the potential impact of COVID-19 on customer budgets and timelines, but remains optimistic about growth opportunities [23][38] - The company is committed to navigating the challenges posed by COVID-19 and is focused on maintaining a strong cash position [21][25] - Management believes that the differentiation of their value proposition will drive growth in the future [38][60] Other Important Information - The company has suspended its stock buyback program to mitigate uncertainties related to COVID-19 [21] - A restructuring plan is in place, with an expected annualized net savings of approximately $3.5 million [19] Q&A Session Summary Question: Can you provide more details on the North American backlog split? - Management indicated that there were component shortages during the quarter but were able to overcome most issues quickly [27] Question: Was there any business pushed into next quarter due to supply chain issues? - Some service-related revenue was pushed out due to COVID-19, but it was not substantial [29] Question: Can you elaborate on the performance in APAC and Latin America? - Management noted improvements in APAC due to new wins and expects continued growth in that region [34] Question: What are the growth prospects for fiscal 2021? - Management is optimistic about growth in North America and aims to improve international performance as well [37][38] Question: How is the company addressing shareholder value? - The focus is on revenue growth, margin expansion, and operational efficiency to drive shareholder value [58][60]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) This section provides the company's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and internal controls [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and equity, along with detailed accounting notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) Total assets increased to **$179.8 million**, while total liabilities rose to **$112.8 million**, leading to a decrease in total equity to **$66.9 million** Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Items | April 3, 2020 | June 28, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $137,394 | $125,997 | | **Total Assets** | **$179,761** | **$169,193** | | **Total Current Liabilities** | $96,023 | $82,211 | | **Total Liabilities** | **$112,818** | **$97,677** | | **Total Equity** | **$66,943** | **$71,516** | | **Total Liabilities and Equity** | **$179,761** | **$169,193** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) The company reported a Q3 2020 net income of **$0.7 million**, a turnaround from a prior-year loss, while the nine-month period showed a net loss of **$0.9 million** Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2020 (3 months ended Apr 3) | Q3 2019 (3 months ended Mar 29) | YTD 2020 (9 months ended Apr 3) | YTD 2019 (9 months ended Mar 29) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $61,379 | $54,037 | $175,990 | $179,629 | | **Gross Margin** | $21,961 | $16,255 | $62,836 | $56,670 | | **Operating Income (Loss)** | $1,236 | $(2,503) | $1,258 | $(1,134) | | **Net Income (Loss)** | $731 | $4,339 | $(886) | $5,899 | | **Diluted EPS** | $0.13 | $0.78 | $(0.16) | $1.05 | [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20%28Loss%29%20Income%20%28Unaudited%29) The company reported a Q3 2020 comprehensive loss of **$1.6 million**, primarily due to translation adjustments, contrasting with comprehensive income in the prior year Comprehensive (Loss) Income (in thousands) | Metric | Q3 2020 (3 months ended Apr 3) | Q3 2019 (3 months ended Mar 29) | YTD 2020 (9 months ended Apr 3) | YTD 2019 (9 months ended Mar 29) | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $731 | $4,339 | $(886) | $5,899 | | Other Comprehensive Loss | $(2,374) | $(88) | $(2,477) | $(426) | | **Comprehensive (Loss) Income** | **$(1,643)** | **$4,251** | **$(3,363)** | **$5,473** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Net cash provided by operating activities significantly increased to **$14.6 million** for the nine months, with cash used in investing and financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended April 3, 2020 | Nine Months Ended March 29, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,625 | $5,340 | | Net cash used in investing activities | $(3,945) | $(4,083) | | Net cash used in financing activities | $(2,525) | $(2,401) | | **Net increase (decrease) in cash** | **$7,260** | **$(1,449)** | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20%28Unaudited%29) Total equity decreased to **$66.9 million**, primarily due to net loss, other comprehensive loss, and stock repurchases - Total equity decreased by **$4.6 million** over the nine months ended April 3, 2020, from **$71.5 million** to **$66.9 million**[17](index=17&type=chunk) - Key drivers for the equity decrease were a net loss of **$0.9 million**, other comprehensive loss of **$2.5 million**, and stock repurchases totaling **$1.8 million**[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The notes detail accounting policies, including lease standard adoption, revenue recognition, debt, restructuring, and the impact of COVID-19 and legal matters - The company adopted the new lease accounting standard ASC 842 on June 29, 2019, resulting in the recognition of **$7.9 million** in Right-of-Use (ROU) assets and **$8.3 million** in corresponding lease liabilities on the balance sheet[61](index=61&type=chunk)[66](index=66&type=chunk) - The company initiated a new restructuring plan (Q3 2020 Plan) to reduce operating costs, recording charges of **$0.6 million** in the third quarter[92](index=92&type=chunk)[158](index=158&type=chunk) - The company disclosed the potential business impact of the COVID-19 pandemic, noting minimal supply chain disruption in Q3 but acknowledging risks of future constraints and delays[123](index=123&type=chunk)[125](index=125&type=chunk) - Subsequent to the quarter's end, the company received and then repaid a **$5.9 million** Paycheck Protection Program (PPP) loan after new SBA guidance was issued[127](index=127&type=chunk)[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2020 financial results, highlighting revenue growth, improved gross margin, solid liquidity, and the impacts of COVID-19 and restructuring efforts [Results of Operations](index=29&type=section&id=MD%26A-Results%20of%20Operations) Q3 2020 total revenue increased **13.6%** to **$61.4 million**, driven by North America, with gross margin expanding to **35.8%** due to product mix Revenue by Region - Q3 Change (in thousands) | Region | Q3 2020 | Q3 2019 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | North America | $37,250 | $28,581 | $8,669 | 30.3% | | Africa and the Middle East | $9,230 | $11,079 | $(1,849) | (16.7)% | | Europe and Russia | $1,903 | $3,326 | $(1,423) | (42.8)% | | Latin America and Asia Pacific | $12,996 | $11,051 | $1,945 | 17.6% | | **Total Revenue** | **$61,379** | **$54,037** | **$7,342** | **13.6%** | Gross Margin Analysis - Q3 | Metric | Q3 2020 | Q3 2019 | | :--- | :--- | :--- | | Gross Margin | $21,961 | $16,255 | | Gross Margin % | 35.8% | 30.1% | | Product Margin % | 39.7% | 31.5% | | Service Margin % | 27.9% | 27.6% | - Selling and administrative expenses increased by **13.6%** in Q3 2020, primarily due to payroll costs from an extra calendar week, higher variable compensation, and legal-related costs[157](index=157&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=MD%26A-Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with **$39.2 million** in cash and **$14.5 million** available under its credit facility, with strong operating cash flow - Principal sources of liquidity as of April 3, 2020, were **$39.2 million** in cash and cash equivalents and **$14.5 million** available under the SVB Credit Facility[165](index=165&type=chunk)[171](index=171&type=chunk) - Net cash provided by operating activities was **$14.6 million** for the first nine months of fiscal 2020, compared to **$5.3 million** in the prior-year period[166](index=166&type=chunk) - The company was in compliance with all financial covenants for its SVB Credit Facility as of April 3, 2020[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency and interest rates, utilizing forward contracts for hedging, with minimal impact from interest rate fluctuations - The company uses foreign exchange forward contracts to hedge forecasted foreign currency transactions, but these do not qualify for hedge accounting; therefore, changes in fair value are recorded in earnings[181](index=181&type=chunk)[182](index=182&type=chunk) Outstanding Foreign Currency Forward Contracts (as of April 3, 2020) | Currency | Notional Contract Amount (USD in thousands) | | :--- | :--- | | Canadian dollar | $440 | | Euro | $3,358 | | New Zealand dollar | $3,206 | | Singapore dollar | $860 | | **Total** | **$7,864** | - Exposure to interest rate risk from cash equivalents and borrowings under the SVB Credit Facility is not expected to have a material impact on financial results, as interest on borrowings is not material to the overall financial position[186](index=186&type=chunk)[190](index=190&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were deemed effective, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[192](index=192&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[193](index=193&type=chunk) [Part II. Other Information](index=36&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other disclosures, including exhibits [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company faces legal claims, including a **$1.0 million** customer claim in Austria and an ongoing enforcement action in India regarding intercompany transactions - The company is facing a claim for approximately **$1.0 million** in damages from an Austrian customer alleging defective products[115](index=115&type=chunk) - An enforcement action by the Indian Department of Revenue is ongoing against the company's Indian subsidiaries concerning intercompany receivables and payables[116](index=116&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic poses significant risks to the company's business, liquidity, and financial condition, including supply chain disruptions and cybersecurity threats - The COVID-19 pandemic and its economic repercussions are identified as a significant risk factor with the potential for a material adverse effect on the business[197](index=197&type=chunk) - Specific risks exacerbated by the pandemic include supply chain disruptions, liquidity challenges from delayed payments, increased cybersecurity threats, and potential litigation[199](index=199&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **26,484 shares** for **$0.4 million** in Q3 2020, suspending its stock repurchase program with **$3.4 million** remaining Stock Repurchases for Q3 2020 | Period | Total Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | Dec 28, 2019 - Jan 24, 2020 | 17,197 | $14.20 | | Jan 25, 2020 - Feb 28, 2020 | 9,287 | $13.72 | | Feb 29, 2020 - Apr 3, 2020 | — | $— | - The company suspended its stock repurchase program in February 2020. As of April 3, 2020, **$3.4 million** remained available under the program[203](index=203&type=chunk) [Defaults upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section is not applicable to the company's current financial reporting - Not applicable[204](index=204&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[204](index=204&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section contains no additional material information - Not applicable[205](index=205&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files - A list of exhibits filed with the report is provided, including certifications from the President/CEO and CFO, and XBRL instance documents[207](index=207&type=chunk)