Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $88.4 million, a 1.7% increase from $86.9 million in Q1 2024 [13] - Non-GAAP gross margin was 23%, down from 36.2% in the prior year [5][14] - Adjusted EBITDA was minus $7.7 million, impacted by lower gross margins and elevated operating expenses [12][16] - Non-GAAP EPS loss was $0.87 [5][16] - GAAP net income was minus $11.9 million, while non-GAAP net income was minus $11.1 million [16] Business Line Data and Key Metrics Changes - North America revenue decreased by 23% to $42 million, accounting for 48% of total revenue, due to Tier 1 softness and project timing [13] - International revenue increased by 44% to $46 million, primarily driven by the Pasolink acquisition [13] - Gross margins were significantly impacted by lower volume and a mix shift away from North America towards international business [7] Market Data and Key Metrics Changes - The global microwave market contracted by 8% year-over-year, marking the fourth consecutive quarter of revenue declines [6] - Aviat has continued to grow its share of demand in North America and globally, despite the broader market decline [6] Company Strategy and Development Direction - The company is focusing on its private network business and the global 5G opportunity, with an attractive funnel and backlog [17] - Plans to transfer Pasolink product manufacturing to Aviat's contract manufacturer to improve order management and reduce costs [10] - The company anticipates a more favorable operating leverage in the second half of fiscal year 2025 [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q1 due to Tier 1 market weakness and project timing but remains optimistic about Q2 and the latter half of fiscal year 2025 [17] - The company adjusted its fiscal year 2025 guidance, expecting revenue between $430 million and $470 million and adjusted EBITDA between $30 million and $40 million [17] Other Important Information - The company has approximately $450 million of net operating losses, which will minimize cash tax payments for the foreseeable future [16] - The Pasolink upgrade opportunity is estimated to be $50 million over the next five years [8] Q&A Session Summary Question: Can you help us think about the trajectory of gross margin and its potential recovery in the December quarter? - Management indicated that gross margins were impacted by a mix shift and expect improvements in Q2 and beyond as revenues ramp up [19] Question: What gives you confidence in the recovery and how are orders tracking for the December quarter? - Management noted a book-to-bill ratio greater than 1 in Q1 and a strong order trajectory for Q2, with expectations for record bookings [21][22] Question: Can you provide insights on the performance in India and any potential MDU opportunities? - Management confirmed that India remains a growth area with good demand, and there are opportunities related to MDU projects, although they are not in a leading position [29] Question: What is the opportunity in fixed wireless access and how does it relate to Aviat's products? - Management highlighted the growing demand for fixed wireless access connections, which favorably impacts backhaul needs and aligns with Aviat's offerings [32] Question: Will merger acquisition expenses decrease in the upcoming quarter? - Management confirmed that such expenses are expected to attenuate in Q2 and beyond, barring any new M&A activities [33]

Aviat Networks Investor Presentation Fiscal Q1 2025 November 5, 2024 Forward-Looking Statements The information contained in this presentation includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat's outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2025, its recent acquisitions and acquisition str ...

Revenue Performance - Total revenue for the first quarter of fiscal 2025 was $88.4 million, a 1.7% increase from $86.9 million in the same period of fiscal 2024[126] - Revenue in North America decreased by $12.6 million, or 23.0%, primarily due to lower demand from Tier 1 mobile network operators[126] - Revenue in Latin America and Asia Pacific increased by $13.3 million, or 79.0%, primarily due to contributions from the NEC Transaction[128] Expenses - Gross margin for the first quarter of fiscal 2025 was $19.8 million, a decrease of $11.4 million, or 36.6%, compared to the same quarter of fiscal 2024[130] - Research and development expenses increased by $4.0 million, or 62.0%, for the first quarter of fiscal 2025, primarily due to increased product development activities[132] - Selling and administrative expenses rose by $5.7 million, or 29.7%, for the first quarter of fiscal 2025, primarily due to merger and acquisition expenses related to the NEC Transaction[133] - Research and development expenses represented 11.8% of total revenue for the first quarter of fiscal 2025, up from 7.4% in the same quarter of fiscal 2024[132] Transactions and Acquisitions - The acquisition of 4RF Limited was completed for $18.2 million, expanding Aviat's product offerings in the industrial wireless access market[120] - The NEC Transaction was completed for approximately $54.5 million, enhancing Aviat's product portfolio and scale[122] Financial Position - Interest expense, net increased by $1.0 million to $1.115 million for Q1 fiscal 2025, a 1,026.3% increase compared to Q1 fiscal 2024[135] - Other expense, net decreased by $0.1 million to $0.710 million for Q1 fiscal 2025, an 11.5% decrease compared to Q1 fiscal 2024[136] - The company reported a net loss before income taxes of $17.393 million for Q1 fiscal 2025, a decrease of $21.382 million or 536.0% compared to a profit of $3.989 million in Q1 fiscal 2024[137] - The tax benefit for Q1 fiscal 2025 was primarily due to losses, while the tax expense for Q1 fiscal 2024 was related to profitable subsidiaries[138] Cash Flow - As of September 27, 2024, total cash and cash equivalents were $51.0 million, with $12.5 million held in the U.S. and $38.6 million (76%) held outside the U.S.[139] - Net cash used in operating activities was $(27.2) million for Q1 fiscal 2025, a decrease of $41.1 million compared to $14.0 million in the prior year[140] - Net cash used in investing activities was $21.2 million for Q1 fiscal 2025, an increase of $20.5 million primarily due to the acquisition of 4RF[141] - Net cash provided by financing activities was $34.3 million for Q1 fiscal 2025, an increase of $34.1 million due to $35.0 million of borrowings on the Revolver[142] Debt and Interest Rate Impact - The company had $48.8 million outstanding under its Term Loan and $35.0 million under its Revolver as of September 27, 2024[145] - 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[156]

www.aviatnetworks.com Aviat Networks Announces Fiscal 2024 Fourth Quarter and Twelve Months Financial Results Fourth Quarter Total Revenue of $116.7 million; Up 28.1% Year-Over-Year Fourth Quarter Adjusted EBITDA of $11.9 million Cash from Operations of $8.3 million in fourth quarter, $30.5 million for full year AUSTIN, Texas, October 4, 2024 -- Aviat Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported fi ...

Total Revenue of $88.4 million; Up 1.7% Year-Over-YearAdjusted EBITDA of $(7.7) millionNon-GAAP Diluted Earnings per Share of $(0.87)AUSTIN, Texas, Nov. 5, 2024 /PRNewswire/ -- Aviat Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2025 first quarter ended September 27, 2024.First Quarter Highlights Continued to gain share of demand in North America based on FCC filing ...

AUSTIN, Texas, Nov. 1, 2024 /PRNewswire/ -- Aviat Networks, Inc. (NASDAQ: AVNW), the leading expert in wireless transport and access solutions, announced today that it will release its first quarter fiscal 2025 financial results for the period ended September 27, 2024, on November 5, 2024, after the market closes.The Company will host an earnings conference call and webcast to discuss its financial and operational results on the same day, beginning at 4:30 p.m. ET. Participating on the call will be Pete Smi ...

Core Insights - Aviat Networks reported Q4 earnings that exceeded analysts' expectations, leading to a 16% increase in share price [1][2] Financial Performance - The company achieved a revenue growth of 28%, totaling $116.7 million, driven by heightened demand for wireless networking products [2] - Aviat's normalized EPS was reported at $0.72 per share, surpassing estimates by 3 cents, attributed to efficient operations and cost management [2] - Full-year revenue guidance is projected between $450 million and $490 million, indicating a more optimistic outlook than previously anticipated [2] Market Position - Investors are impressed with Aviat's ability to perform well in challenging market conditions, showcasing strong financial results and a positive growth outlook [3]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $117 million, representing a 28% increase compared to Q4 2023 [6][16] - For the full fiscal year 2024, total revenue reached $408 million, a 19% growth year-over-year [6][17] - Adjusted EBITDA for Q4 was $12 million, with non-GAAP EPS at $0.72 [6][21] - Gross margins for Q4 were 35.3% on a GAAP basis and 35.9% on a non-GAAP basis, compared to 35.9% and 36.2% respectively in the prior year [18] Business Line Data and Key Metrics Changes - Revenue from Pasolink was $25 million in Q4, a 12% increase from Q3 2024 [6][8] - Non-GAAP gross margins for Pasolink were 26% in Q4, showing improvement due to scale and cost benefits [18] - Revenue from private networks in North America increased, contributing to overall growth despite challenges in U.S. Tier 1 spending [10][12] Market Data and Key Metrics Changes - North America accounted for 48% of total revenue in Q4, with revenues of $56.2 million, a 2.5% increase year-over-year [16] - International revenue for Q4 was $60.5 million, a 67% increase from the same period last year [17] - The backlog at the end of fiscal year 2024 was $292 million, slightly up from $289 million the previous year [17] Company Strategy and Development Direction - The acquisition of Pasolink has strengthened Aviat's product portfolio and international business, enhancing profitability and market reach [7][8] - The company is focused on modernizing public safety networks in the U.S., anticipating growth driven by government budgets and ARPA funding [11] - The recent acquisition of 4RF is expected to open new markets and enhance Aviat's offerings in private networks [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of private networks, citing healthy state and local government budgets for fiscal 2025 [11] - The company anticipates a gradual ramp-up in revenue throughout fiscal 2025, with Q1 expected to be the lowest in terms of revenue and profitability [24][29] - Management acknowledged challenges in U.S. Tier 1 spending but remains optimistic about opportunities in international markets, particularly in India [12][30] Other Important Information - The company reported a material weakness related to key accounting personnel turnover, which has been addressed with improvements in internal controls [13][14] - Cash and marketable securities increased by $5.4 million to $64.6 million, with a net cash position of $16.3 million at the end of Q4 [21] Q&A Session Summary Question: Update on material weakness and historic restatement - Management indicated that the material weakness was driven by personnel turnover and ineffective controls, with plans to remediate within the year [25][26] - The financial statement revision was due to a services contract and a distributor arrangement that did not meet revenue recognition criteria [27] Question: Guidance for fiscal 2025 and visibility into Q1 - Q1 is expected to be the lowest quarter for revenue and profitability, with projected revenues in the range of $93 million to $99 million [29] - Management noted that if certain projects materialize, guidance could be adjusted positively [30] Question: Trends in private networks and mobile 5G business - Private networks revenue was the highest in three years, with favorable trends in market share [44] - U.S. Tier 1 spending is muted, but opportunities in Pasolink Tier 1s remain favorable [45] Question: Impact of restatement on buyback program - Management expressed a willingness to lean into share buybacks, but noted challenges due to quiet periods [46][47]

Core Insights - Aviat Networks Inc reported a significant revenue increase of 28.1% year-over-year in Q4 2024, reaching $116.7 million, surpassing analyst estimates [3][5] - The company's growth was driven by strategic acquisitions, particularly the Pasolink acquisition, and strong international sales [1][4][6] Company Overview - Aviat Networks Inc specializes in wireless networking solutions, serving a diverse clientele including mobile operators, government agencies, and public safety organizations [2] - The company offers products such as point-to-point microwave and millimeter wave radios, along with network management software [2] Performance and Challenges - In Q4 2024, Aviat's total revenues were $116.7 million, a 28.1% increase from the previous year, exceeding the analyst estimate of $112.92 million [3] - Operating expenses increased by 35.5% year-over-year, which negatively impacted net income despite revenue growth [3][6] Financial Achievements - Aviat Networks achieved its fourth consecutive fiscal year of growth in both revenue and adjusted EBITDA, demonstrating resilience in a challenging hardware industry [4] - The acquisition of Pasolink and new public safety customers contributed to the company's market expansion and financial performance [4] Key Financial Metrics - GAAP gross margin for Q4 2024 was 35.3%, slightly down from 35.9% in the previous year, while non-GAAP gross margin was 35.9%, compared to 36.2% last year [5] - GAAP net income for Q4 2024 was $1.5 million, down from $3.8 million in Q4 2023, and non-GAAP net income was $9.2 million, down from $10.3 million [5] Analysis and Insights - The significant increase in international revenue, especially in the Asia Pacific and Europe regions, reflects the successful execution of Aviat's global strategy [6] - The rise in operating expenses and slight decline in net income indicate challenges in cost management amid expansion efforts [6] - Overall, Aviat's fiscal 2024 results highlight its adaptability and growth potential in a competitive industry, with strategic initiatives positioning it well for future growth [6]

Group 1 - Aviat Networks, Inc. will host an earnings conference call and webcast on October 7, 2024, at 8:30 a.m. ET to discuss its financial and operational results [1] - The call will feature participation from Pete Smith, President and CEO, and Michael Connaway, CFO [1] - Interested parties can access the call via the webcast on Aviat Networks' Investor Relations website or by registering for a telephone participation [1] Group 2 - Aviat Networks, Inc. is a leading expert in wireless transport and access solutions, providing dependable products, services, and support to customers [2] - The company has sold over one million systems in 170 countries, serving communications service providers and private network operators, including government and defense organizations [2] - Aviat has a long history of microwave innovations and offers a comprehensive suite of localized professional and support services to simplify network operations for customers [2]