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 beliefs and expectations regarding outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2026, its recent acquisitions and acquisition strategy, process improvements, measu ...

Summary of Aviat Networks Investor Call Company Overview - **Company**: Aviat Networks (NasdaqGS:AVNW) - **Industry**: Microwave communication technology Key Points Growth Opportunities - Aviat Networks is primarily a microwave business, positioned in segments growing faster than GDP, particularly in public safety and utilities, which together represent 35-40% of the business [6][7] - Public safety budgets are experiencing mid-single digit growth, indicating strong demand [6] - The utility sector is seeing a significant need for investment due to 30 years of underinvestment in U.S. infrastructure [6] Market Dynamics - The U.S. market for utilities is project-oriented, with Aviat being a top competitor [9] - Demand drivers include grid security, productivity improvements, and wildfire detection, particularly in the Western U.S. [9] - There is currently no new demand from AI or data centers, but it is anticipated in the future [10] Domestic and International Demand - Domestic demand is improving, with a significant replacement cycle expected in India and increased focus on Huawei replacements in Europe [11] - The company is optimistic about the rural broadband opportunity, especially with BEAD funding expected to ramp up in mid-2026 [12][14] 4RF Product Line - The 4RF product line is focused on utilities and has seen cross-selling opportunities with microwave products [19] - Aviat is leveraging its reputation in public safety to penetrate new markets, including emergency vehicle communications [21] MDU Market - Aviat has moved from proof of concept to actual orders in the MDU market, with the first order expected to support subscriber traffic [22][25] - The MDU market is large, with potential for significant growth as the company begins to execute its strategy [30] Financial Health - Aviat has over $450 million in net operating losses (NOLs), allowing for minimized cash taxes in the foreseeable future [42] - The company has approximately $110 million in unbilled receivables, which is a natural part of its project-based business [44] - There is a buyback authorization of over $6 million remaining, which may be utilized as a potential use of capital [45] Material Weakness in Financial Controls - The company is actively working to improve its material weakness in financial controls, with a goal to demonstrate full remediation by the end of the current fiscal year [47][49] Overall Sentiment - Management expresses optimism about growth initiatives in cellular routers and the MDU market, with positive signs emerging in public safety and utilities [51]

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]

Service Expansion - Starlink is providing high-speed, low-latency internet in rural Brazil [1]

Politics & Policy - Senator Ran Paul was allegedly uninvited to a White House picnic due to his opposition to the budget bill, tariffs, and other Trump policies [1][2] - The uninvitation was described as "petty" and immature [2][3] Broadband & AI Regulation - A budget package includes a moratorium on AI regulation by states for 10 years, potentially impacting broadband funding [6] - States that regulate AI may not receive Broadband Equity, Access, and Deployment (BEAD) funding, which is crucial for closing the digital divide [6] - Broadband is considered essential for the economy, online learning, and emergency services like next-generation 911 [7][8] - The policy is seen as coercively pushing AI legislation by weaponizing infrastructure funding [9] - Concerns exist about the rapid advancement of AI and the potential impact of limiting regulation for several years, especially on children's online safety, consumer fraud, and surveillance [11][12][13] - There is a missed opportunity for Congress to establish regulations for AI [14]