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Core Insights - Aviat Networks, Inc. (AVNW) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and a significant improvement from a loss of $0.87 per share a year ago, resulting in an earnings surprise of +34.38% [1] - The company achieved revenues of $107.32 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.58% and showing a year-over-year increase from $88.43 million [2] - Aviat Networks has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was +93.02%, with actual earnings of $0.83 per share compared to an expectation of $0.43 [1] - The current consensus EPS estimate for the upcoming quarter is $0.60, with projected revenues of $112.35 million, and for the current fiscal year, the EPS estimate is $2.44 on revenues of $449.13 million [7] Market Position - Aviat Networks shares have increased approximately 35% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] - The Zacks Industry Rank indicates that the Wireless Equipment sector is in the top 7% of over 250 Zacks industries, suggesting strong potential for outperformance [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current Zacks Rank for Aviat Networks is 3 (Hold), indicating expected performance in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Total revenues for Q1 2026 were $107.3 million, an increase of 21.4% compared to $88.4 million in Q1 2025 [5][12] - Non-GAAP gross margin was 33.8%, up from 23.2% in the prior year [12][13] - Adjusted EBITDA for the quarter was $9.1 million, an increase of $16.8 million year-over-year [15] - Non-GAAP EPS was $0.43, significantly up from a loss of $1.30 in the year-ago period [14][15] Business Line Data and Key Metrics Changes - Private networks remain a core focus, with significant project bookings in public safety and utility networks [5][6] - The utility vertical saw a large multi-state network modernization project worth approximately $8 million [6] - The introduction of the Apriza LTE/5G router solution for public safety vehicles marks a significant expansion in offerings [7][9] Market Data and Key Metrics Changes - North America accounted for 49.1% of total revenues, with $52.6 million, a 24.7% increase from the previous year [12] - International revenues were $54.7 million, an 18.3% increase driven by mobile network operator business and growing private network demand [12][13] - The global cellular router and gateway market is projected to grow at a 12% annual rate, reaching $2.8 billion by 2028 [7][8] Company Strategy and Development Direction - The company aims to capture additional market share in private networks and mobile networks [16] - The strategy includes leveraging the technology acquired from the 4RF acquisition to enhance product offerings [9][22] - The company maintains its fiscal 2026 revenue guidance of $440-$460 million and Adjusted EBITDA guidance of $45-$55 million [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fiscal 2026 setup, particularly in U.S. public safety and private networks [11][19] - The impact of the U.S. federal government shutdown is expected to be minimal, with some revenues potentially pushed to Q3 [10][19] - There is optimism regarding the BEAD program, with expectations for growth in fixed wireless access [48][50] Other Important Information - The company has over $450 million in net operating losses, which will minimize cash tax payments for the foreseeable future [14] - Cash and marketable securities at the end of Q1 were $64.8 million, with outstanding debt of $106.5 million [15] Q&A Session Summary Question: Sequential outlook for December quarter - Management noted strong expectations from U.S. public safety, but remained cautious due to the early fiscal year and potential government shutdown impacts [19] Question: Growth potential from 4RF and MDU opportunities - Management highlighted significant synergy from the 4RF acquisition and expressed confidence in the MDU market's growth potential [21][22] Question: Performance in India - India contributed mid-single-digit revenue percentages, with expectations for a potential upgrade cycle impacting future growth [26][27] Question: Gross margin expectations for fiscal 2026 - Management indicated potential for gross margin growth by a percentage point or two throughout the year [28] Question: Competitive landscape for Apriza router - The mobile cellular router market is valued at $2.8 billion, with management identifying a significant opportunity for growth [33][34] Question: Impact of federal government shutdown - Management estimated a worst-case scenario of 1% pull-in and 4%-5% push-out of revenues due to the shutdown [36] Question: Update on BEAD program - Management expressed growing optimism regarding BEAD funding and its potential impact on revenue growth [48][50]

Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $107.3 million, an increase of 21.4% compared to $88.4 million in the same period of fiscal 2025[111]. - Revenue in North America increased by $10.4 million (24.7%) to $52.6 million, driven by a 54% increase in product demand and a 15% increase in services[111]. - Revenue from product sales increased by 22.9% to $75.1 million, while services revenue rose by 18.0% to $32.2 million[115]. Gross Margin and Expenses - Gross margin for the first quarter of fiscal 2026 was $35.7 million, representing an 80.2% increase from $19.8 million in the same quarter of fiscal 2025[116]. - Research and development expenses decreased by $3.3 million (31.8%) to $7.1 million, primarily due to cost management initiatives[117]. Acquisitions and Transactions - The acquisition of 4RF Limited for $18.2 million enhances Aviat's product offerings in the industrial wireless access market[106]. - The NEC transaction was completed for approximately $54.5 million, which included $32.2 million in cash and $22.3 million in common stock[109]. Income and Cash Flow - For the first three months of fiscal 2026, the company reported an income before income taxes of $2.5 million, a significant improvement from a loss of $17.4 million in the same period last year, representing a $19.9 million change or a 114.4% increase[121]. - Net cash used in operating activities for the first three months of fiscal 2026 was $(11.7) million, an improvement of $15.4 million compared to $(27.2) million in the prior year[124]. - Net cash used in investing activities decreased to $1.7 million in the first three months of fiscal 2026 from $21.2 million in the prior year, primarily due to prior year acquisition payments[125]. - Financing cash flows provided $18.5 million in the first three months of fiscal 2026, down from $34.3 million in the prior year, mainly due to reduced net borrowings[126]. Debt and Interest - The company had $92.2 million outstanding under its Term Loan as of September 26, 2025, having borrowed $20 million and repaid $0.9 million during the first three months of fiscal 2026[129]. - The effective interest rate on the outstanding Term Loan borrowings as of September 26, 2025, was 6.7%[139]. - A 10% change in interest rates is estimated to impact annual interest expense by $0.6 million on the company's outstanding long-term debt as of September 26, 2025[140]. Cash Position and Future Outlook - The company's total cash and cash equivalents as of September 26, 2025, were $64.8 million, with $22.7 million held in the United States and $42.2 million (65%) held outside the United States[123]. - The company believes its existing cash, available borrowings, and future cash collections will be sufficient for its anticipated requirements for at least the next 12 months[128]. Foreign Currency Impact - As of September 26, 2025, the cumulative translation adjustment decreased stockholders' equity by $19.7 million due to foreign currency translation risks[134]. Operational Strategies - The company operates an e-commerce platform to provide low-cost services and fast delivery to customers[110]. - The company plans to mitigate the impact of new U.S. tariffs by optimizing sourcing and operations[110]. Interest Expense - Interest expense increased by $0.6 million (53.5%) to $1.7 million due to incremental Term Loan borrowings[119].

Financial Performance & Guidance - Aviat Networks' LTM (Last Twelve Months) revenue is $453 million[7] - Q1 Fiscal Year 2026 revenue reached $107.3 million, a 21.4% increase compared to the same period last year[59, 62] - The company's Q1 Fiscal Year 2026 adjusted EBITDA was $9.1 million[59] - Aviat Networks anticipates revenue between $440 million and $460 million, and adjusted EBITDA between $45 million and $55 million for Fiscal Year 2026[62] Market & Product Portfolio - Aviat Networks operates in a total addressable market (TAM) of $11 billion[16] - The company's private LTE/5G market is projected to reach $8 billion by 2027[38] - Aviat estimates the USA rural broadband segment to be a ~$420 million TAM[49] - The global 5G transport market is projected to be $2.1 billion in CY2024[42] Market Dynamics - Mobile network data traffic is expected to grow at a 26% CAGR through 2028[38, 46] - Aviat Networks holds approximately 35% of the wireless transport share of demand for North American ISPs[48]

Revenue Performance - Total revenue for fiscal 2026 first quarter was $107.3 million, up 21.4% year-over-year from $88.4 million[4] - North America revenue increased by 24.7% to $52.6 million, while international revenue rose by 18.3% to $54.7 million[4] - Total revenue for the first quarter of fiscal year 2026 was $107.32 million, a 21.4% increase from $88.43 million in the same period last year[34] - Full year revenue guidance is projected between $440 million and $460 million[18] Profitability Metrics - GAAP gross margin improved to 33.2%, up from 22.4% in the prior year, representing an increase of 1,080 basis points[5] - Non-GAAP gross margin also increased to $36.29 million (33.8% of revenue) from $20.50 million (23.2% of revenue) year-over-year[31] - GAAP net income for the quarter was $162, a significant recovery from a net loss of $11.88 million in the same quarter last year[31] - Non-GAAP net income was $5.52 million (5.1% of revenue), compared to a net loss of $11.13 million (12.6% of revenue) in the previous year[31] - Non-GAAP operating income for the quarter was $7.9 million, compared to a non-GAAP operating loss of $(9.5) million in the prior year, an increase of $17.4 million[9] - Adjusted EBITDA for the quarter was $9.1 million, a significant increase of $16.8 million from $(7.7) million in the prior year[12] - Adjusted EBITDA for the quarter was $9.11 million (8.5% of revenue), a turnaround from an adjusted loss of $7.69 million (8.7% of revenue) in the prior year[31] Expenses Management - Total operating expenses decreased by 5.5% to $30.5 million from $35.4 million in the prior year[6] - Research and development expenses decreased to $7.10 million (6.6% of revenue) from $10.41 million (11.8% of revenue) year-over-year[31] - Selling and administrative expenses decreased to $23.38 million (21.8% of revenue) from $24.95 million (28.2% of revenue) in the same quarter last year[31] Cash and Assets - Cash and cash equivalents as of September 26, 2025, were $64.8 million, up from $59.7 million as of June 27, 2025[13] - Total current assets increased to $474.54 million from $463.58 million in the previous quarter[26] Liabilities - Total liabilities rose to $379.68 million from $370.11 million in the previous quarter, with long-term debt increasing to $102.04 million from $68.97 million[26] Product Development - The company launched the Aprisa LTE 5G router solution, expanding its product offerings in the Private Networks segment[8]

Core Viewpoint - Aviat Networks, Inc. is set to release its first quarter fiscal 2026 financial results on November 4, 2025, after market close, indicating ongoing transparency and engagement with investors [1]. Financial Results Announcement - The financial results will cover the period ended September 26, 2025, showcasing the company's performance in the wireless transport and access solutions sector [1]. - An earnings conference call will be held on the same day at 5:00 p.m. ET, featuring key executives including the President and CEO, Pete Smith, and Interim CFO, Andrew Fredrickson [2]. Investor Engagement - Interested parties can access the conference call via a webcast on Aviat Networks' Investor Relations website or participate by telephone after registering [3]. - A replay of the conference call will be available on the company's investor relations website post-event [3]. Upcoming Investor Conferences - The company will participate in several upcoming investor conferences, including the 14th Annual Roth Technology Conference on November 19, 2025, and the 6th Annual Needham Tech Week Conference on November 21, 2025 [10]. Company Overview - Aviat Networks is recognized as a leading expert in wireless transport and access solutions, with over one million systems sold across 170 countries [6]. - The company serves a diverse clientele, including communications service providers and various government and defense organizations, emphasizing its reliability in critical applications [6]. - With a history of over 70 years in microwave innovations, Aviat Networks aims to simplify network operations for its customers while delivering high-performance products [6].

Core Insights - Aviat Networks Inc. is identified as one of the most undervalued technology stocks, with a recent partnership with Intracom Telecom to deliver Fixed Wireless Access (FWA) technology [1][3] - The collaboration will focus on high-capacity mmWave bands (28 and 39 GHz) to meet FCC requirements for 5G [1][3] Company Overview - Aviat Networks provides microwave networking and wireless access networking solutions across multiple regions, including North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific [4] Partnership Details - The partnership aims to target North American service providers to fulfill the increasing demand for multi-Gigabit consumer and enterprise 5G access [2] - Aviat will offer a complete solution portfolio, including software solutions and a comprehensive set of design, planning, deployment, and support services [3] - Intracom Telecom will contribute the WiBAS G5 platform, which is the only commercially available point-to-multipoint FWA solution operating in the specified mmWave bands, capable of delivering over 22 Gbps [3]

Core Insights - Aviat Networks has partnered with Intracom Telecom to provide Fixed Wireless Access (FWA) technology utilizing high-capacity 28 and 39 GHz millimeter wave bands for 5G applications in North America [1][2][3] Group 1: Partnership and Technology - The partnership aims to address the increasing demand for multi-Gigabit 5G access, offering an alternative to fiber with similar performance but lower costs and complexities [2][4] - Intracom Telecom's WiBAS G5 platform is highlighted as the only commercially available point-to-multipoint FWA solution in the specified mmWave bands, capable of delivering over 22 Gbps from a single base station site [3][4] Group 2: Market Focus and Services - Aviat will initially target select North American service providers to meet the growing needs for consumer and enterprise 5G use cases [2] - The company will provide a comprehensive suite of software solutions, design, planning, deployment, and support services, leveraging its extensive presence in North America [2][5] Group 3: Company Background - Aviat Networks is recognized as a leading expert in wireless transport and access solutions, with over one million systems sold across 170 countries [5] - Intracom Telecom has over 45 years of experience in the market, specializing in fixed wireless access and offering a wide range of ICT services [6]

Core Insights - Aviat Networks, Inc. has launched a comprehensive solution tailored for vehicle deployments in law enforcement and public safety, featuring ruggedized Aprisa LTE 5G routers and ProVision Plus software [1][4] - The global cellular router and gateway market is projected to grow at a 12% CAGR, reaching $2.8 billion by 2028, driven by demand in sectors like transportation and public safety [2] - The Aprisa LTE/5G routers support major frequency bands and are certified with leading carriers, offering flexible deployment options and 24/7 technical support [3][6] Company Overview - Aviat Networks specializes in wireless transport and access solutions, with over one million systems sold in 170 countries, serving various sectors including government and defense [6] - The company emphasizes its commitment to supporting first responders with mission-critical performance in challenging conditions [4] - The Aprisa LTE/5G router is manufactured in the USA and is available for purchase through multiple channels [5]