AUSTIN, Texas, Aug. 27, 2020 /PRNewswire/ -- Aviat
Networks, Inc. (NASDAQ: AVNW), ("Aviat Networks," "Aviat," or the
"Company"), the leading expert in wireless transport solutions,
today reported financial results for its fiscal 2020 fourth quarter
and twelve months ended July 3,
2020.
Pete Smith, Aviat Networks'
President and Chief Executive Officer stated, "Despite COVID-19, we
achieved an annual Adjusted EBITDA of $13.5
million, which exceeded the top end of our Adjusted EBITDA
guidance of $11-$12 million, and increased over 50% from
$8.8 million for fiscal 2019. I
want to extend my appreciation to our customers, suppliers and
employees who helped us achieved such strong financial results
during this challenging time."
In the fiscal 2020 fourth quarter, Aviat announced the addition
of partners to expand our reach, new customer wins, the launch of
an important new software offering, frequency assurance software
(FAS) to improve network reliability, and we continued to execute
on our previously announced restructuring. This progress sets
the stage for the future.
Smith continued, "As we look forward to fiscal 2021, we are
expecting both Adjusted EBITDA and revenue to grow compared to
fiscal 2020. We also expect to see the benefits from our strategic
focus including new products such as FAS, our focus on improved
reach and adding new customers and our previously announced
cost-savings initiatives. We are well-positioned for demand
from 5G mobile, mission critical networks and rural broadband."
Fiscal 2020 Fourth Quarter and Twelve-Month
Comparisons
The Company reported total revenues of
$62.7 million for its fiscal 2020
fourth quarter, compared to $64.2
million in the comparable fiscal 2019 period, a decrease of
$(1.6) million or (2.5)%.
North America revenue of
$38.2 million decreased by
$(1.0) million or (2.6)%, compared to
$39.2 million in the comparable
fiscal 2019 period. International revenue of $24.4 million declined by $(0.6) million or (2.3)%, compared to
$25.0 million in the comparable
fiscal 2019 period. The decline in international revenue was
anticipated given the current lower spending environment in
Africa, as well as high order
volumes in the APAC region in the prior fiscal year period.
For the twelve months ended July 3, 2020, the Company
reported total revenues of $238.6
million, compared to $243.9
million in the comparable fiscal 2019 period, a decline of
$(5.2) million or (2.1)%.
North America revenue of
$151.7 million increased by
$18.8 million or 14.2%, compared to
$132.9 million in the comparable
fiscal 2019 period. International revenue of $86.9 million declined by $(24.0) million or (21.7)%, compared to
$111.0 million in the comparable
fiscal 2019 period.
In the fiscal 2020 fourth quarter, the Company reported both
GAAP and non-GAAP gross margin of 34.9%. This compares to
GAAP gross margin of 35.2% and non-GAAP gross margin of 35.1% in
the comparable fiscal 2019 period.
For the twelve months ended July 3,
2020, the Company reported GAAP gross margin of 35.5% and
non-GAAP gross margin of 35.6%. This compares to GAAP gross
margin of 32.5% and non-GAAP gross margin of 32.5% in the
comparable fiscal 2019 period, an improvement of 300 and 310 basis
points, respectively.
GAAP total operating expenses for the fiscal 2020 fourth quarter
were $19.7 million, compared to
$20.1 million in the comparable
fiscal 2019 period, a decrease of $(0.4)
million or (1.8)%. Non-GAAP total operating expenses,
excluding the impact of restructuring charges and share-based
compensation, for the fiscal 2020 fourth quarter were $17.5 million, compared to $19.8 million in the comparable fiscal 2019
period, a decrease of $(2.2) million
or (11.3)%. Non-GAAP operating expenses decreased primarily
related to cost-cutting measures implemented in fiscal 2020.
For the twelve months ended July 3,
2020, the Company reported GAAP total operating expenses of
$81.3 million, compared to
$77.9 million in the comparable
fiscal 2019 period, an increase of $3.4
million or 4.4%. On a non-GAAP basis, excluding the
impact of restructuring charges and share-based compensation, total
operating expenses for the twelve months ended July 3, 2020 were $75.8
million, compared to $75.0
million in the fiscal 2019 period, an increase of
$0.7 million or 1.0%. Non-GAAP
operating expenses increased primarily due to fiscal 2020
containing an extra week.
The Company reported GAAP operating income of $2.1 million for the fiscal 2020 fourth quarter,
compared to a GAAP operating income of $2.5
million in the comparable fiscal 2019 period, a $(0.4) million year-over-year decline. On a
non-GAAP basis, the Company reported operating income of
$4.4 million for the fiscal 2020
fourth quarter, compared to a non-GAAP operating income of
$2.8 million in the comparable fiscal
2019 period, a $1.6 million
year-over-year increase.
For the twelve months ended July 3,
2020, the Company reported $3.4
million in GAAP operating income, compared to a GAAP
operating income of $1.4 million in
the comparable fiscal 2019 period, a $2.0
million year-over-year improvement. On a non-GAAP
basis, the Company reported operating income of $9.1 million for the twelve months ended
July 3, 2020, compared to
$4.3 million in the comparable fiscal
2019 period, a $4.8 million
year-over-year improvement.
The Company reported GAAP net income of $1.1 million in the fiscal 2020 fourth quarter or
GAAP net income per share of $0.21. This compared to a GAAP net income
of $3.8 million or GAAP net income
per share of $0.69 in the fiscal 2019
fourth quarter. On a non-GAAP basis, the Company reported net
income of $4.1 million or a non-GAAP
net income per share of $0.75,
compared to a non-GAAP net income of $2.6
million or non-GAAP net income per share of $0.47 in the comparable fiscal 2019 period.
For the twelve months ended July 3,
2020, the Company reported GAAP net income of $0.3 million or a GAAP net income per share of
$0.05. This compared to GAAP
net income of $9.7 million or a GAAP
net income per share of $1.73 in the
comparable fiscal 2019 period. On a non-GAAP basis, for the
twelve months ended July 3, 2020, the
Company reported net income of $8.2
million or a net income per share of $1.51, compared to non-GAAP net income of
$3.2 million or $0.58 per share in the comparable fiscal 2019
period.
Adjusted earnings before interest, tax, depreciation and
amortization ("Adjusted EBITDA") for the fiscal 2020 fourth quarter
was $5.5 million, compared to
$3.9 million in the comparable fiscal
2019 period, a year-over-year increase of approximately
$1.6 million. For the twelve
months ended July 3, 2020, the
Company reported Adjusted EBITDA of $13.5
million, compared to $8.8
million in the comparable fiscal 2019 period, a
year-over-year increase of approximately $4.8 million.
The Company reported cash and cash equivalents as of
July 3, 2020 of $41.6 million, compared to $31.9 million as of June
28, 2019, an increase of $9.7
million. Sequentially, cash and cash equivalents
increased by approximately $2.4
million, compared to the fiscal 2020 third quarter ended
April 3, 2020.
Conference Call Details
Aviat Networks will host a
conference call at 4:30 p.m. Eastern
Time (ET) today, August 27,
2020, to discuss its financial results for the fiscal 2020
fourth quarter. Speaking from management will be Pete Smith, President and Chief Executive
Officer and Eric Chang, Senior Vice
President, Chief Financial Officer. Following management's
remarks, there will be a question and answer period.
To listen to the live conference call, please dial toll-free
(US/CAN) 866-465-7577 or toll-free (INTL) 786-815-8431, conference
ID: 7361828. We ask that you dial-in approximately 10 minutes
prior to the start time. Additionally, participants are invited to
listen via webcast, which will be broadcasted live and via replay
approximately two hours after the call is completed at
http://investors.aviatnetworks.com/events-and-presentations/events.
About Aviat Networks
Aviat Networks, Inc. is the leading expert in wireless
transport solutions and works to provide dependable products,
services and support to its customers. With more than one
million systems sold into 170 countries worldwide, communications
service providers and private network operators including
state/local government, utility, federal government and defense
organizations trust Aviat with their critical applications.
Coupled with a long history of microwave innovations, Aviat
provides a comprehensive suite of localized professional and
support services enabling customers to drastically simplify both
their networks and their lives. For more than 70 years, the
experts at Aviat have delivered high-performance products,
simplified operations, and the best overall customer
experience. Aviat Networks is headquartered
in Austin, Texas. For more
information, visit www.aviatnetworks.com or connect
with Aviat
Networks on Twitter, Facebook and LinkedIn.
Forward-Looking Statements
The information contained in this document 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
business conditions, new product solutions, customer positioning,
revenue, future orders, bookings, new contracts, cost structure,
operating income, profitability in fiscal 2021, process
improvements, realignment plans and review of strategic
alternatives. All statements, trend analyses and other
information contained herein regarding the foregoing beliefs and
expectations, as well as about the markets for the services and
products of Aviat and trends in revenue, and other statements
identified by the use of forward-looking terminology, including
"anticipate," "believe," "plan," "estimate," "expect," "goal,"
"will," "see," "continue," "delivering," "view," and "intend," or
the negative of these terms or other similar expressions,
constitute forward-looking statements. Forward-looking
statements are neither historical facts nor assurances of future
performance. Instead, forward-looking statements are based on
estimates reflecting the current beliefs, expectations and
assumptions of the senior management of Aviat regarding the
future of its business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Such forward-looking statements involve a number
of risks and uncertainties that could cause actual results to
differ materially from those suggested by the forward-looking
statements. Forward-looking statements should therefore be
considered in light of various important factors, including those
set forth in this document. Therefore, you should not rely on
any of these forward-looking statements. Important factors that
could cause actual results to differ materially from estimates or
projections contained in the forward-looking statements include the
following:
- the impact of COVID-19 on Aviat's business, operations and cash
flows;
- continued price and margin erosion as a result of increased
competition in the microwave transmission industry;
- the impact of the volume, timing and customer, product and
geographic mix of our product orders;
- Aviat's ability to meet financial covenant requirements which
could impact, among other things, its liquidity;
- the timing of Aviat's receipt of payment for products or
services from its customers;
- Aviat's ability to meet projected new product development dates
or anticipated cost reductions of new products;
- Aviat's suppliers' inability to perform and deliver on time as
a result of their financial condition, component shortages, or
other supply chain constraints;
- customer acceptance of new products;
- the ability of Aviat's subcontractors to timely perform;
- continued weakness in the global economy affecting customer
spending;
- retention of Aviat's key personnel;
- Aviat's ability to manage and maintain key customer
relationships;
- uncertain economic conditions in the telecommunications sector
combined with operator and supplier consolidation;
- Aviat's failure to protect its intellectual property rights or
defend against intellectual property infringement claims by
others;
- the results of restructuring efforts;
- the ability to preserve and use Aviat's net operating loss
carryforwards;
- the effects of currency and interest rate risks;
- the effects of current and future government regulations,
including the effects of current restrictions on various commercial
and economic activities in response to the COVID-19 pandemic;
- general economic conditions, including uncertainty regarding
the timing, pace and extent of an economic recovery in the United States and other countries where we
conduct business;
- the conduct of unethical business practices in developing
countries;
- the impact of political turmoil in countries where Aviat has
significant business; and
- Aviat's ability to implement its stock repurchase program or
that it will enhance long-term stockholder value.
For more information regarding the risks and uncertainties for
Aviat's business, see "Risk Factors" in Aviat's Form 10-K filed
with the U.S. Securities and Exchange Commission ("SEC")
on August 27, 2020 as well as other reports filed
by Aviat with the SEC from time to time. Aviat
undertakes no obligation to update publicly any forward-looking
statement, whether written or oral, for any reason, except as
required by law, even as new information becomes available or other
events occur in the future.
Investor Relations:
Keith Fanneron / Tel: 408-841-7128 /
Email: keith.fanneron@aviatnet.com
Table
1
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2020
Fourth Quarter Summary
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(In thousands,
except per share amounts)
|
July 3,
2020
|
|
June 28,
2019
|
|
July 3,
2020
|
|
June 28,
2019
|
Revenues:
|
|
|
|
|
|
|
|
Revenue from product
sales
|
$
|
42,117
|
|
|
$
|
41,028
|
|
|
$
|
153,793
|
|
|
$
|
156,724
|
|
Revenue from
services
|
20,535
|
|
|
23,201
|
|
|
84,849
|
|
|
87,134
|
|
Total
revenues
|
62,652
|
|
|
64,229
|
|
|
238,642
|
|
|
243,858
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of product
sales
|
26,855
|
|
|
26,847
|
|
|
95,321
|
|
|
103,517
|
|
Cost of
services
|
13,937
|
|
|
14,782
|
|
|
58,625
|
|
|
61,071
|
|
Total cost of
revenues
|
40,792
|
|
|
41,629
|
|
|
153,946
|
|
|
164,588
|
|
Gross
margin
|
21,860
|
|
|
22,600
|
|
|
84,696
|
|
|
79,270
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses
|
4,215
|
|
|
5,508
|
|
|
19,284
|
|
|
21,111
|
|
Selling and
administrative expenses
|
13,651
|
|
|
14,650
|
|
|
57,985
|
|
|
56,055
|
|
Restructuring charges
(recovery)
|
1,874
|
|
|
(60)
|
|
|
4,049
|
|
|
736
|
|
Total operating
expenses
|
19,740
|
|
|
20,098
|
|
|
81,318
|
|
|
77,902
|
|
Operating
income
|
2,120
|
|
|
2,502
|
|
|
3,378
|
|
|
1,368
|
|
Interest
income
|
67
|
|
|
100
|
|
|
385
|
|
|
267
|
|
Interest
expense
|
(31)
|
|
|
(14)
|
|
|
(54)
|
|
|
(102)
|
|
Other income,
net
|
—
|
|
|
18
|
|
|
—
|
|
|
17
|
|
Income before
income taxes
|
2,156
|
|
|
2,606
|
|
|
3,709
|
|
|
1,550
|
|
Provision for
(benefit from) income taxes
|
1,013
|
|
|
(1,233)
|
|
|
3,452
|
|
|
(8,188)
|
|
Net
income
|
$
|
1,143
|
|
|
$
|
3,839
|
|
|
$
|
257
|
|
|
$
|
9,738
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.21
|
|
|
$
|
0.71
|
|
|
$
|
0.05
|
|
|
$
|
1.81
|
|
Diluted
|
$
|
0.21
|
|
|
$
|
0.69
|
|
|
$
|
0.05
|
|
|
$
|
1.73
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
5,394
|
|
|
5,370
|
|
|
5,391
|
|
|
5,377
|
|
Diluted
|
5,456
|
|
|
5,578
|
|
|
5,468
|
|
|
5,618
|
|
Table
2
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2020
Fourth Quarter Summary
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
|
(In thousands)
|
July
3, 2020
|
|
June 28,
2019
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
41,618
|
|
|
$
|
31,946
|
|
Accounts receivable,
net
|
44,661
|
|
|
51,937
|
|
Unbilled
receivables
|
28,085
|
|
|
27,780
|
|
Inventories
|
13,997
|
|
|
8,573
|
|
Customer service
inventories
|
1,234
|
|
|
936
|
|
Other current
assets
|
10,355
|
|
|
4,825
|
|
Total current
assets
|
139,950
|
|
|
125,997
|
|
Property, plant and
equipment, net
|
16,911
|
|
|
17,255
|
|
Deferred income
taxes
|
12,799
|
|
|
13,864
|
|
Right of use
assets
|
3,474
|
|
|
—
|
|
Other
assets
|
6,667
|
|
|
12,077
|
|
TOTAL
ASSETS
|
$
|
179,801
|
|
|
$
|
169,193
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-term
debt
|
9,000
|
|
|
$
|
9,000
|
|
Accounts
payable
|
31,995
|
|
|
35,605
|
|
Accrued
expenses
|
26,920
|
|
|
22,555
|
|
Short-term lease
liabilities
|
1,445
|
|
|
—
|
|
Advance payments and
unearned revenue
|
21,872
|
|
|
13,962
|
|
Restructuring
liabilities
|
2,738
|
|
|
1,089
|
|
Total current
liabilities
|
93,970
|
|
|
82,211
|
|
Unearned
revenue
|
8,142
|
|
|
9,662
|
|
Long-term lease
liabilities
|
2,303
|
|
|
—
|
|
Other long-term
liabilities
|
401
|
|
|
820
|
|
Reserve for uncertain
tax positions
|
5,759
|
|
|
3,606
|
|
Deferred income
taxes
|
545
|
|
|
1,378
|
|
Total
liabilities
|
111,120
|
|
|
97,677
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
54
|
|
|
54
|
|
Additional
paid-in-capital
|
814,337
|
|
|
815,196
|
|
Accumulated
deficit
|
(730,741)
|
|
|
(730,998)
|
|
Accumulated other
comprehensive loss
|
(14,969)
|
|
|
(12,736)
|
|
Total
equity
|
68,681
|
|
|
71,516
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
179,801
|
|
|
$
|
169,193
|
|
AVIAT NETWORKS, INC.
Fiscal Year
2020 Fourth Quarter Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND REGULATION G DISCLOSURE
To supplement the consolidated financial statements presented in
accordance with accounting principles generally accepted in
the United States (GAAP), we
provide additional measures of gross margin, research and
development expenses, selling and administrative expenses,
operating income, provision for or benefit from income taxes, net
income, diluted net income per share and adjusted income before
interest, tax, depreciation and amortization (Adjusted EBITDA),
adjusted to exclude certain costs, charges, gains and losses, as
set forth below. We believe that these non-GAAP financial
measures, when considered together with the GAAP financial
measures, provide information that is useful to investors in
understanding period-over-period operating results separate and
apart from items that may, or could, have a disproportionate
positive or negative impact on results in any particular
period. We also believe these non-GAAP measures enhance the
ability of investors to analyze trends in our business and to
understand our performance. In addition, we may utilize
non-GAAP financial measures as a guide in our forecasting,
budgeting and long-term planning process and to measure operating
performance for some management compensation purposes. Any analysis
of non-GAAP financial measures should be used only in conjunction
with results presented in accordance with GAAP. Reconciliations of
these non-GAAP financial measures with the most directly comparable
financial measures calculated in accordance with GAAP follow.
Table
3
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2020
Fourth Quarter Summary
|
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (1)
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
July 3,
2020
|
|
%
of Revenue
|
|
June 28,
2019
|
|
% of
Revenue
|
|
July 3,
2020
|
|
%
of Revenue
|
|
June 28,
2019
|
|
% of
Revenue
|
|
(In thousands,
except percentages and per share amounts)
|
GAAP gross
margin
|
$
|
21,860
|
|
|
34.9
|
%
|
|
$
|
22,600
|
|
|
35.2
|
%
|
|
$
|
84,696
|
|
|
35.5
|
%
|
|
$
|
79,270
|
|
|
32.5
|
%
|
WTM inventory
write-down recovery
|
—
|
|
|
|
|
(65)
|
|
|
|
|
—
|
|
|
|
|
(155)
|
|
|
|
Share-based
compensation
|
33
|
|
|
|
|
26
|
|
|
|
|
182
|
|
|
|
|
170
|
|
|
|
Non-GAAP gross
margin
|
21,893
|
|
|
34.9
|
%
|
|
22,561
|
|
|
35.1
|
%
|
|
84,878
|
|
|
35.6
|
%
|
|
79,285
|
|
|
32.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
4,215
|
|
|
6.7
|
%
|
|
$
|
5,508
|
|
|
8.6
|
%
|
|
$
|
19,284
|
|
|
8.1
|
%
|
|
$
|
21,111
|
|
|
8.7
|
%
|
Share-based
compensation
|
(20)
|
|
|
|
|
(27)
|
|
|
|
|
(112)
|
|
|
|
|
(150)
|
|
|
|
Non-GAAP research
and development expenses
|
4,195
|
|
|
6.7
|
%
|
|
5,481
|
|
|
8.5
|
%
|
|
19,172
|
|
|
8.0
|
%
|
|
20,961
|
|
|
8.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative expenses
|
$
|
13,651
|
|
|
21.8
|
%
|
|
$
|
14,650
|
|
|
22.8
|
%
|
|
$
|
57,985
|
|
|
24.3
|
%
|
|
$
|
56,055
|
|
|
23.0
|
%
|
Share-based
compensation
|
(318)
|
|
|
|
|
(274)
|
|
|
|
|
(1,392)
|
|
|
|
|
(1,403)
|
|
|
|
Strategic alternative
costs
|
—
|
|
|
|
|
(102)
|
|
|
|
|
—
|
|
|
|
|
(593)
|
|
|
|
Non-GAAP selling
and administrative expenses
|
13,333
|
|
|
21.3
|
%
|
|
14,274
|
|
|
22.2
|
%
|
|
56,593
|
|
|
23.7
|
%
|
|
54,059
|
|
|
22.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
2,120
|
|
|
3.4
|
%
|
|
$
|
2,502
|
|
|
3.9
|
%
|
|
$
|
3,378
|
|
|
1.4
|
%
|
|
$
|
1,368
|
|
|
0.6
|
%
|
WTM inventory
write-down recovery
|
—
|
|
|
|
|
(65)
|
|
|
|
|
—
|
|
|
|
|
(155)
|
|
|
|
Share-based
compensation
|
371
|
|
|
|
|
327
|
|
|
|
|
1,686
|
|
|
|
|
1,723
|
|
|
|
Strategic alternative
costs
|
—
|
|
|
|
|
102
|
|
|
|
|
—
|
|
|
|
|
593
|
|
|
|
Restructuring charges
(recovery), net
|
1,874
|
|
|
|
|
(60)
|
|
|
|
|
4,049
|
|
|
|
|
736
|
|
|
|
Non-GAAP operating
income
|
4,365
|
|
|
7.0
|
%
|
|
2,806
|
|
|
4.4
|
%
|
|
9,113
|
|
|
3.8
|
%
|
|
4,265
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision (benefit)
|
$
|
1,013
|
|
|
1.6
|
%
|
|
$
|
(1,233)
|
|
|
(1.9)
|
%
|
|
$
|
3,452
|
|
|
1.4
|
%
|
|
$
|
(8,188)
|
|
|
(3.4)
|
%
|
Tax receivable from
Department of Federal Revenue of Brazil
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,646
|
|
|
|
Release of valuation
allowance
|
—
|
|
|
|
|
432
|
|
|
|
|
—
|
|
|
|
|
7,486
|
|
|
|
Adjustment to reflect
pro forma tax rate
|
(713)
|
|
|
|
|
1,101
|
|
|
|
|
(2,252)
|
|
|
|
|
256
|
|
|
|
Non-GAAP income
tax provision
|
300
|
|
|
0.5
|
%
|
|
300
|
|
|
0.5
|
%
|
|
1,200
|
|
|
0.5
|
%
|
|
1,200
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
1,143
|
|
|
1.8
|
%
|
|
$
|
3,839
|
|
|
6.0
|
%
|
|
$
|
257
|
|
|
0.1
|
%
|
|
$
|
9,738
|
|
|
4.0
|
%
|
Share-based
compensation
|
371
|
|
|
|
|
327
|
|
|
|
|
1,686
|
|
|
|
|
1,723
|
|
|
|
Strategic alternative
costs
|
—
|
|
|
|
|
102
|
|
|
|
|
—
|
|
|
|
|
593
|
|
|
|
Restructuring charges
(recovery)
|
1,874
|
|
|
|
|
(60)
|
|
|
|
|
4,049
|
|
|
|
|
736
|
|
|
|
WTM inventory
write-down recovery
|
—
|
|
|
|
|
(65)
|
|
|
|
|
—
|
|
|
|
|
(155)
|
|
|
|
Release of valuation
allowance
|
—
|
|
|
|
|
(432)
|
|
|
|
|
—
|
|
|
|
|
(7,486)
|
|
|
|
Tax receivable from
Department of Federal Revenue of Brazil
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1,646)
|
|
|
|
Adjustment to reflect
pro forma tax rate
|
713
|
|
|
|
|
(1,101)
|
|
|
|
|
2,252
|
|
|
|
|
(256)
|
|
|
|
Non-GAAP net
income
|
$
|
4,101
|
|
|
6.5
|
%
|
|
$
|
2,610
|
|
|
4.1
|
%
|
|
$
|
8,244
|
|
|
3.5
|
%
|
|
$
|
3,247
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share:
|
GAAP
|
$
|
0.21
|
|
|
|
|
$
|
0.69
|
|
|
|
|
$
|
0.05
|
|
|
|
|
$
|
1.73
|
|
|
|
Non-GAAP
|
$
|
0.75
|
|
|
|
|
$
|
0.47
|
|
|
|
|
$
|
1.51
|
|
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
GAAP/Non-GAAP
|
5,456
|
|
|
|
|
5,578
|
|
|
|
|
5,468
|
|
|
|
|
5,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
1,143
|
|
|
1.8
|
%
|
|
$
|
3,839
|
|
|
6.0
|
%
|
|
$
|
257
|
|
|
0.1
|
%
|
|
$
|
9,738
|
|
|
4.0
|
%
|
Depreciation and
amortization of property, plant, and equipment
|
1,161
|
|
|
|
|
1,060
|
|
|
|
|
4,387
|
|
|
|
|
4,468
|
|
|
|
Interest income,
net
|
(36)
|
|
|
|
|
(86)
|
|
|
|
|
(331)
|
|
|
|
|
(165)
|
|
|
|
Share-based
compensation
|
371
|
|
|
|
|
327
|
|
|
|
|
1,686
|
|
|
|
|
1,723
|
|
|
|
Strategic alternative
costs
|
—
|
|
|
|
|
102
|
|
|
|
|
—
|
|
|
|
|
593
|
|
|
|
Restructuring charges
(recovery)
|
1,874
|
|
|
|
|
(60)
|
|
|
|
|
4,049
|
|
|
|
|
736
|
|
|
|
WTM inventory
write-down recovery
|
—
|
|
|
|
|
(65)
|
|
|
|
|
—
|
|
|
|
|
(155)
|
|
|
|
Provision for
(benefit from) income taxes
|
1,013
|
|
|
|
|
(1,233)
|
|
|
|
|
3,452
|
|
|
|
|
(8,188)
|
|
|
|
Adjusted
EBITDA
|
$
|
5,526
|
|
|
8.8
|
%
|
|
$
|
3,884
|
|
|
6.0
|
%
|
|
$
|
13,500
|
|
|
5.7
|
%
|
|
$
|
8,750
|
|
|
3.6
|
%
|
_____________________________________________________
|
(1)
|
The adjustments above
reconcile our GAAP financial results to the non-GAAP financial
measures used by Aviat Networks. Aviat monitors the non-GAAP
financial measures included above, and our management believes they
are helpful to investors because they provide an additional tool to
use in evaluating Aviat's financial and business trends and
operating results. In addition, Aviat's management uses these
non-GAAP measures to compare Aviat's performance to that of prior
periods for trend analysis and for budgeting and planning
purposes. Our non-GAAP net income excludes share-based
compensation, and other non-recurring charges (recovery) and
Adjusted EBITDA is determined by excluding depreciation and
amortization on property, plant and equipment, interest, provision
for or benefit from income taxes, and non-GAAP pre-tax adjustments,
as set forth above, from the GAAP net income. We believe that
the presentation of these non-GAAP items provides meaningful
supplemental information to investors, when viewed in conjunction
with, and not in lieu of, our GAAP results. However, the
non-GAAP financial measures have not been prepared under a
comprehensive set of accounting rules or principles. Non-GAAP
information should not be considered in isolation from, or as a
substitute for, information prepared in accordance with GAAP.
Moreover, there are material limitations associated with the use of
non-GAAP financial measures.
|
Table
4
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2020
Fourth Quarter Summary
|
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
July 3,
2020
|
|
June 28,
2019
|
|
July 3,
2020
|
|
June 28,
2019
|
|
(In
thousands)
|
North
America
|
$
|
38,220
|
|
|
$
|
39,224
|
|
|
$
|
151,709
|
|
|
$
|
132,884
|
|
International:
|
|
|
|
|
|
|
|
Africa and the Middle
East
|
8,916
|
|
|
9,247
|
|
|
37,595
|
|
|
48,305
|
|
Europe and
Russia
|
3,429
|
|
|
6,662
|
|
|
11,157
|
|
|
16,933
|
|
Latin America and Asia
Pacific
|
12,087
|
|
|
9,096
|
|
|
38,181
|
|
|
45,736
|
|
|
24,432
|
|
|
25,005
|
|
|
86,933
|
|
|
110,974
|
|
Total
revenue
|
$
|
62,652
|
|
|
$
|
64,229
|
|
|
$
|
238,642
|
|
|
$
|
243,858
|
|
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SOURCE Aviat Networks, Inc.