Aviat Networks(US:AVNW)2024-11-05 21:08Revenue 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]