Total Revenue of $83.5
million; Up 12.0% Year-Over-Year
Adjusted EBITDA of $10.8 million; Up 14.7% compared to Prior
Year
AUSTIN,
Texas, May 3, 2023 /PRNewswire/ -- Aviat
Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"),
(Nasdaq: AVNW), the leading expert in wireless transport solutions,
today reported financial results for its fiscal 2023 third quarter
ended March 31, 2023.
Third Quarter Highlights
- Company executed on key long-term strategic objectives
resulting in continued year-over-year increase in quarterly
revenues and Adjusted EBITDA
- Aviat maintained private network leadership with first private
LTE win in North America and
expanding international and enterprise opportunities
- Company received initial Rural Digital Opportunity Fund related
project orders from four recipients
- Recent product releases, including third-party radio support
for Frequency Assurance Software, continue Aviat's innovation for
customers
Third Quarter Financial Highlights
- Total Revenues: $83.5 million, +12.0% from same
quarter last year
- GAAP Results: Gross Margin 35.7%; Operating Expenses
$22.3 million; Operating Income
$7.5 million; Net Income before tax
$7.1 million; Net income $4.9 million; Net income per share $0.41
- Non-GAAP Results: Adjusted EBITDA $10.8 million; Gross Margin 35.9%; Operating
Expenses $20.7 million; Operating
Income $9.3 million; Net Income
$8.9 million; Net Income per share
$0.75
- Net Cash and Marketable Securities: $22.5 million;
loan of $6.2 million outstanding at
quarter-end
"Our execution this quarter resulted in year-over-year 12.0%
revenue growth and 14.7% adjusted EBITDA growth, two key long-term
focus areas for the business." said Peter
Smith, President and Chief Executive Officer of Aviat. "We
continue to see a strong demand environment for Aviat's leading
products and services, and we remain well positioned to benefit
from the growth drivers of 5G, rural broadband, and private
networks."
Fiscal 2023 Third Quarter and Nine Months Ended
March 31, 2023
Revenues
The Company reported total revenues of
$83.5 million for its fiscal 2023
third quarter, compared to $74.5
million in the comparable fiscal 2022 period, an increase of
$9.0 million or 12.0%. North America revenue of $46.1 million decreased by $(3.0) million or (6.1)%, compared to
$49.0 million in the comparable
fiscal 2022 period. International revenue was $37.4 million compared to $25.5 million in the comparable fiscal 2022
period, an increase of $11.9 million
or 46.9%.
For the nine months ended March 31, 2023, revenue grew by
13.2% to $255.4 million, as compared
to $225.5 million in the comparable
fiscal 2022 period. North America
revenue of $147.0 million decreased
by $(4.1) million or (2.7)%, as
compared to $151.0 million in the
comparable fiscal 2022 period. International revenue of
$108.5 million for the fiscal 2023
nine-month period increased by $33.9
million or 45.5%, as compared to $74.5 million in the comparable fiscal 2022
period.
Gross Margins
In the fiscal 2023 third quarter, the
Company reported GAAP gross margin of 35.7% and non-GAAP gross
margin of 35.9%. This compares to GAAP gross margin of 37.0% and
non-GAAP gross margin of 37.1% in the comparable fiscal 2022
period, a decrease of (130) and (120) basis points respectively.
Gross margins were impacted by the regional mix of revenue growth
toward lower margin international markets.
For the nine months ended March 31, 2023, the Company
reported GAAP gross margin of 35.8% and non-GAAP gross margin of
36.0%. This compares to GAAP gross margin of 36.3% and non-GAAP
gross margin of 36.4% in the comparable fiscal 2022 period, a
decrease of (50) and (40) basis points, respectively.
Operating Expenses
GAAP total operating expenses for
the fiscal 2023 third quarter were $22.3
million, compared to $20.1
million in the comparable fiscal 2022 period, an increase of
$2.3 million or 11.4%. Non-GAAP total
operating expenses, excluding the impact of restructuring charges,
share-based compensation, and merger and acquisition expenses for
the fiscal 2023 third quarter were $20.7
million, as compared to $19.2
million in the comparable fiscal 2022 period, an increase of
$1.4 million or 7.5%. The increased
spending resulted from the addition of Redline Communications.
The Company reported GAAP total operating expenses for the
fiscal 2023 nine-month period of $71.4
million, compared to $58.3
million in the comparable fiscal 2022 period, an increase of
$13.2 million or 22.6%. On a non-GAAP
basis, excluding the impact of restructuring charges, share-based
compensation and merger and acquisition expenses, total operating
expenses for the fiscal 2023 nine-month period were $62.1 million, as compared to $56.3 million in the fiscal 2022 period, an
increase of $5.8 million or
10.3%.
Operating Income
The Company reported GAAP operating
income of $7.5 million for the fiscal
2023 third quarter, compared to $7.5
million in the comparable fiscal 2022 period. On a non-GAAP
basis, the Company reported operating income of $9.3 million for the fiscal 2023 third quarter,
compared to $8.4 million in the
comparable fiscal 2022 period.
For the fiscal 2023 nine-month period, the Company reported
$20.1 million in GAAP operating
income, as compared to $23.5 million
in the comparable fiscal 2022 period. On a non-GAAP basis, the
Company reported operating income of $29.9
million, compared to $25.8
million in the comparable fiscal 2022 period.
Income Taxes
The Company reported GAAP income tax
expense of $2.2 million in the fiscal
2023 third quarter, compared to $1.3
million in the comparable fiscal 2022 period.
For the fiscal 2023 nine-month period, the Company reported GAAP
income tax expense of $9.1 million,
compared to $6.5 million in the
comparable fiscal 2022 period, or an increase of $2.7 million.
Net Income / Net Income Per Share
The Company reported
GAAP net income of $4.9 million in
the fiscal 2023 third quarter or GAAP net income per fully diluted
share of $0.41. This compared to GAAP
net income of $6.0 million or
$0.51 per fully diluted share in the
comparable fiscal 2022 period. On a non-GAAP basis, the Company
reported net income of $8.9 million
or non-GAAP net income per fully diluted share of $0.75 in the fiscal 2023 third quarter, compared
to a non-GAAP net income of $7.9
million or $0.67 per share in
the comparable fiscal 2022 period.
The Company reported GAAP net income of $8.2 million for the fiscal 2023 nine-month
period, or GAAP net income per fully diluted share of $0.69. This compared to GAAP net income of
$16.6 million or $1.40 per share in the comparable fiscal 2022
period. On a non-GAAP basis, the Company reported net income of
$28.8 million or net income per share
of $2.43 for the fiscal 2023,
nine-month period as compared to non-GAAP net income of
$24.5 million or $2.06 per share in the comparable fiscal 2022
period.
Adjusted EBITDA
Adjusted earnings before interest,
tax, depreciation and amortization ("Adjusted EBITDA") for the
fiscal 2023 third quarter was $10.8
million, compared to $9.5
million in the comparable fiscal 2022 period.
For the fiscal 2023 nine-month period, the Company reported
Adjusted EBITDA of $34.4 million, as
compared to $29.2 million in the
comparable fiscal 2022 period a year-over-year increase of
$5.3 million, or 18.0%.
Balance Sheet Highlights
The Company reported cash and
marketable securities of $22.5
million as of March 31, 2023, compared to $21.4
million as of December 30, 2022. As of March 31, 2023,
the Company had a loan of $6.2 million outstanding.
Fiscal 2023 Full Year Outlook
The Company raises the
lower-end of fiscal 2023 full year revenue guidance and reaffirms
its fiscal 2023 full year earnings guidance as follows:
- Full year Revenue between $341
and $347 million
- Full year Adjusted EBITDA between $45.0 and $47.5
million1
Conference Call Details
Aviat Networks, Inc. will host
a conference call at 5:00 p.m. Eastern
Time (ET) today, May 3, 2023,
to discuss its financial and operational results for the fiscal
2023 third quarter. Participating on the call will be Peter Smith, President and Chief Executive
Officer; David M. Gray, Sr. Vice
President and Chief Financial Officer; and Andrew Fredrickson, Director of Corporate
Development and Investor Relations. Following management's remarks,
there will be a question and answer period.
Interested parties may access the conference call live via the
webcast through Aviat's Investor Relations website at
https://investors.aviatnetworks.com/events-and-presentations/events,
or may participate via telephone by registering using this online
form. Once registered, telephone participants will receive the
dial-in number along with a unique PIN number that must be used to
access the call. A replay of the conference call webcast will be
available after the call on the Company's investor relations
website.
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 in 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 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 is headquartered in
Austin, Texas. For more
information, visit www.aviatnetworks.com or connect
with Aviat 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 outlook,
business conditions, new product solutions, customer positioning,
future orders, bookings, new contracts, cost structure,
profitability in fiscal 2023, process improvements, plans and
objectives of management, realignment plans and review of strategic
alternatives and expectations regarding future revenue, Adjusted
EBITDA, operating income of earnings or loss per share. 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; disruptions relating to the ongoing conflict between
Russia and Ukraine; continued price and margin erosion in
the microwave transmission industry; the impact of the volume,
timing, and customer, product, and geographic mix of our product
orders; our ability to meet financial covenant requirements; the
timing of our receipt of payment; our ability to meet product
development dates or anticipated cost reductions of products; our
suppliers' inability to perform and deliver on time, component
shortages, or other supply chain constraints; the effects of
inflation; customer acceptance of new products; the ability of our
subcontractors to timely perform; weakness in the global economy
affecting customer spending; retention of our key personnel; our
ability to manage and maintain key customer relationship; uncertain
economic conditions in the telecommunications sector combined with
operator and supplier consolidation; our failure to protect our
intellectual property rights or defend against intellectual
property infringement claims; the results of our restructuring
efforts; the ability to preserve and use our net operating loss
carryforwards; the effects of currency and interest rate risks; the
effects of current and future government regulations; 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 we have significant business; our ability to realize the
anticipated benefits of any proposed or recent acquisitions; the
impact of tariffs, the adoption of trade restrictions affecting our
products or suppliers, a United
States withdrawal from or significant renegotiation of trade
agreements, the occurrence of trade wars, the closing of border
crossings, and other changes in trade regulations or relationships;
our ability to implement our stock repurchase program or that it
will enhance long-term stockholder value; the impact of adverse
developments affecting the financial services industry, including
events or concerns involving liquidity, defaults or non-performance
by financial institutions.
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
September 14, 2022, 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.
1.We have not reconciled Adjusted EBITDA guidance to
its corresponding GAAP measure due to the high variability and
difficulty in making accurate forecasts and projections,
particularly with respect to merger and acquisition costs and
share-based compensation. In particular, share-based compensation
expense is affected by future hiring, turnover, and retention
needs, as well as the future fair market value of our common stock,
all of which are difficult to predict and subject to change.
Accordingly, reconciliations of forward-looking Adjusted EBITDA are
not available without unreasonable effort.
Investor Relations:
Andrew
Fredrickson
Director, Corporate Development & Investor Relations
Phone: (408) 501-6214
Email: andrew.fredrickson@aviatnet.com
Table
1
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2023
Third Quarter Summary
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(In thousands, except per share amounts)
|
March 31,
2023
|
|
April 1,
2022
|
|
March 31,
2023
|
|
April 1,
2022
|
Revenues:
|
|
|
|
|
|
|
|
Revenue from product
sales
|
$
54,811
|
|
$
52,047
|
|
$
175,473
|
|
$ 156,361
|
Revenue from
services
|
28,669
|
|
22,469
|
|
79,941
|
|
69,177
|
Total
revenues
|
83,480
|
|
74,516
|
|
255,414
|
|
225,538
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of product
sales
|
35,745
|
|
31,850
|
|
111,567
|
|
97,789
|
Cost of
services
|
17,902
|
|
15,130
|
|
52,340
|
|
45,976
|
Total cost of
revenues
|
53,647
|
|
46,980
|
|
163,907
|
|
143,765
|
Gross
margin
|
29,833
|
|
27,536
|
|
91,507
|
|
81,773
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses
|
6,518
|
|
5,259
|
|
18,652
|
|
17,338
|
Selling and
administrative expenses
|
15,842
|
|
14,867
|
|
49,913
|
|
41,304
|
Restructuring
(recovery) charges
|
(23)
|
|
(72)
|
|
2,855
|
|
(373)
|
Total operating
expenses
|
22,337
|
|
20,054
|
|
71,420
|
|
58,269
|
Operating
income
|
7,496
|
|
7,482
|
|
20,087
|
|
23,504
|
Other (income)/expense,
net
|
428
|
|
175
|
|
2,750
|
|
387
|
Income before income
taxes
|
7,068
|
|
7,307
|
|
17,337
|
|
23,117
|
Provision for income
taxes
|
2,179
|
|
1,278
|
|
9,148
|
|
6,490
|
Net
income
|
$
4,889
|
|
$
6,029
|
|
$
8,189
|
|
$
16,627
|
|
|
|
|
|
|
|
|
Net income per share
of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
$
0.43
|
|
$
0.54
|
|
$
0.72
|
|
$
1.49
|
Diluted
|
$
0.41
|
|
$
0.51
|
|
$
0.69
|
|
$
1.40
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,413
|
|
11,173
|
|
11,319
|
|
11,172
|
Diluted
|
11,884
|
|
11,761
|
|
11,829
|
|
11,848
|
Table
2
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2023
Third Quarter Summary
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
(In thousands)
|
March 31,
2023
|
|
July 1,
2022
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
22,456
|
|
$
36,877
|
Marketable
securities
|
—
|
|
10,893
|
Accounts receivable,
net
|
88,458
|
|
73,168
|
Unbilled
receivables
|
63,344
|
|
45,857
|
Inventories
|
39,083
|
|
25,394
|
Customer service
inventories
|
1,857
|
|
1,775
|
Other current
assets
|
21,306
|
|
12,437
|
Total current
assets
|
236,504
|
|
206,401
|
Property, plant and
equipment, net
|
10,570
|
|
8,887
|
Goodwill
|
4,950
|
|
—
|
Intangible assets,
net
|
6,918
|
|
—
|
Deferred income
taxes
|
88,750
|
|
95,412
|
Right of use
assets
|
2,669
|
|
2,759
|
Other assets
|
14,301
|
|
10,445
|
Total long-term
assets
|
128,158
|
|
117,503
|
TOTAL
ASSETS
|
$
364,662
|
|
$
323,904
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-term
debt
|
$
6,200
|
|
$
—
|
Accounts
payable
|
61,670
|
|
42,394
|
Accrued
expenses
|
23,397
|
|
26,451
|
Short-term lease
liabilities
|
721
|
|
513
|
Advance payments and
unearned revenue
|
40,348
|
|
33,740
|
Restructuring
liabilities
|
884
|
|
1,381
|
Total current
liabilities
|
133,220
|
|
104,479
|
Unearned
revenue
|
7,628
|
|
8,920
|
Long-term lease
liabilities
|
2,255
|
|
2,412
|
Other long-term
liabilities
|
279
|
|
273
|
Reserve for uncertain
tax positions
|
5,363
|
|
5,504
|
Deferred income
taxes
|
563
|
|
563
|
Total
liabilities
|
149,308
|
|
122,151
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
114
|
|
112
|
Treasury
stock
|
(6,147)
|
|
(6,147)
|
Additional
paid-in-capital
|
828,411
|
|
823,259
|
Accumulated
deficit
|
(591,253)
|
|
(599,442)
|
Accumulated other
comprehensive loss
|
(15,771)
|
|
(16,029)
|
Total
equity
|
215,354
|
|
201,753
|
TOTAL LIABILITIES AND
EQUITY
|
$
364,662
|
|
$
323,904
|
AVIAT NETWORKS, INC.
Fiscal Year
2023 Third 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, net income per share, and adjusted income before interest,
tax, depreciation and amortization (Adjusted EBITDA), in each case,
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 2023
Third Quarter Summary
|
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (1)
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March
31,
2023
|
|
% of
Revenue
|
|
April 1,
2022
|
|
% of
Revenue
|
|
March
31,
2023
|
|
% of
Revenue
|
|
April 1,
2022
|
|
% of
Revenue
|
|
(In thousands,
except percentages and per share amounts)
|
GAAP gross
margin
|
$ 29,833
|
|
35.7 %
|
|
$ 27,536
|
|
37.0 %
|
|
$ 91,507
|
|
35.8 %
|
|
$ 81,773
|
|
36.3 %
|
Share-based
compensation
|
125
|
|
|
|
101
|
|
|
|
463
|
|
|
|
271
|
|
|
Merger and acquisition
related expenses
|
6
|
|
|
|
—
|
|
|
|
6
|
|
|
|
—
|
|
|
Non-GAAP gross
margin
|
29,964
|
|
35.9 %
|
|
27,637
|
|
37.1 %
|
|
91,976
|
|
36.0 %
|
|
82,044
|
|
36.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development
expenses
|
$
6,518
|
|
7.8 %
|
|
$ 5,259
|
|
7.1 %
|
|
$ 18,652
|
|
7.3 %
|
|
$ 17,338
|
|
7.7 %
|
Share-based
compensation
|
(113)
|
|
|
|
(5)
|
|
|
|
(385)
|
|
|
|
(103)
|
|
|
Non-GAAP research
and development
expenses
|
6,405
|
|
7.7 %
|
|
5,254
|
|
7.1 %
|
|
18,267
|
|
7.2 %
|
|
17,235
|
|
7.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative
expenses
|
$ 15,842
|
|
19.0 %
|
|
$ 14,867
|
|
20.0 %
|
|
$ 49,913
|
|
19.5 %
|
|
$ 41,304
|
|
18.3 %
|
Share-based
compensation
|
(1,400)
|
|
|
|
(734)
|
|
|
|
(4,287)
|
|
|
|
(2,090)
|
|
|
Merger and acquisition
related expense
|
(179)
|
|
|
|
(156)
|
|
|
|
(1,799)
|
|
|
|
(156)
|
|
|
Non-GAAP selling and
administrative
expenses
|
14,263
|
|
17.1 %
|
|
13,977
|
|
18.8 %
|
|
43,827
|
|
17.2 %
|
|
39,058
|
|
17.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
7,496
|
|
9.0 %
|
|
$ 7,482
|
|
10.0 %
|
|
$ 20,087
|
|
7.9 %
|
|
$ 23,504
|
|
10.4 %
|
Share-based
compensation
|
1,638
|
|
|
|
840
|
|
|
|
5,135
|
|
|
|
2,464
|
|
|
Merger and acquisition
related expense
|
185
|
|
|
|
156
|
|
|
|
1,805
|
|
|
|
156
|
|
|
Restructuring
(recovery) charges
|
(23)
|
|
|
|
(72)
|
|
|
|
2,855
|
|
|
|
(373)
|
|
|
Non-GAAP operating
income
|
9,296
|
|
11.1 %
|
|
8,406
|
|
11.3 %
|
|
29,882
|
|
11.7 %
|
|
25,751
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision
|
$
2,179
|
|
2.6 %
|
|
$ 1,278
|
|
1.7 %
|
|
$
9,148
|
|
3.6 %
|
|
$ 6,490
|
|
2.9 %
|
Adjustment to reflect
pro forma tax rate
|
(1,879)
|
|
|
|
(978)
|
|
|
|
(8,248)
|
|
|
|
(5,590)
|
|
|
Non-GAAP income tax
provision
|
300
|
|
0.4 %
|
|
300
|
|
0.4 %
|
|
900
|
|
0.4 %
|
|
900
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
4,889
|
|
5.9 %
|
|
$ 6,029
|
|
8.1 %
|
|
$
8,189
|
|
3.2 %
|
|
$ 16,627
|
|
7.4 %
|
Share-based
compensation
|
1,638
|
|
|
|
840
|
|
|
|
5,135
|
|
|
|
2,464
|
|
|
Merger and acquisition
related expense
|
185
|
|
|
|
156
|
|
|
|
1,805
|
|
|
|
156
|
|
|
Restructuring
(recovery) charges
|
(23)
|
|
|
|
(72)
|
|
|
|
2,855
|
|
|
|
(373)
|
|
|
Other
(income)/expense
|
306
|
|
|
|
—
|
|
|
|
2,540
|
|
|
|
—
|
|
|
Adjustment to reflect
pro forma tax rate
|
1,879
|
|
|
|
978
|
|
|
|
8,248
|
|
|
|
5,590
|
|
|
Non-GAAP net
income
|
$
8,874
|
|
10.6 %
|
|
$ 7,931
|
|
10.6 %
|
|
$ 28,772
|
|
11.3 %
|
|
$ 24,464
|
|
10.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
GAAP
|
$
0.41
|
|
|
|
$
0.51
|
|
|
|
$
0.69
|
|
|
|
$
1.40
|
|
|
Non-GAAP
|
$
0.75
|
|
|
|
$
0.67
|
|
|
|
$
2.43
|
|
|
|
$
2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
11,884
|
|
|
|
11,761
|
|
|
|
11,829
|
|
|
|
11,848
|
|
|
Non-GAAP
|
11,884
|
|
|
|
11,761
|
|
|
|
11,829
|
|
|
|
11,848
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
4,889
|
|
5.9 %
|
|
$ 6,029
|
|
8.1 %
|
|
$
8,189
|
|
3.2 %
|
|
$ 16,627
|
|
7.4 %
|
Depreciation and
amortization of
intangible assets, property,
plant
and equipment
|
1,552
|
|
|
|
1,051
|
|
|
|
4,565
|
|
|
|
3,444
|
|
|
Other (income)/expense,
net
|
428
|
|
|
|
175
|
|
|
|
2,750
|
|
|
|
387
|
|
|
Share-based
compensation
|
1,638
|
|
|
|
840
|
|
|
|
5,135
|
|
|
|
2,464
|
|
|
Merger and acquisition
related expense
|
185
|
|
|
|
156
|
|
|
|
1,805
|
|
|
|
156
|
|
|
Restructuring
(recovery) charges
|
(23)
|
|
|
|
(72)
|
|
|
|
2,855
|
|
|
|
(373)
|
|
|
Provision for income
taxes
|
2,179
|
|
|
|
1,278
|
|
|
|
9,148
|
|
|
|
6,490
|
|
|
Adjusted
EBITDA
|
$ 10,848
|
|
13.0 %
|
|
$ 9,457
|
|
12.7 %
|
|
$ 34,447
|
|
13.5 %
|
|
$ 29,195
|
|
12.9 %
|
_______________________________________________________________________________________________________________
|
|
(1)
|
The adjustments above
reconcile our GAAP financial results to the non-GAAP financial
measures used by us. Our non-GAAP net income excluded share-based
compensation, and other non-recurring charges (recovery). Adjusted
EBITDA was 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 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 2023
Third Quarter Summary
|
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March 31,
2023
|
|
April 1,
2022
|
|
March 31,
2023
|
|
April 1,
2022
|
|
(In
thousands)
|
North
America
|
$
46,064
|
|
$
49,042
|
|
$
146,961
|
|
$
151,025
|
International:
|
|
|
|
|
|
|
|
Africa and the Middle
East
|
19,235
|
|
13,123
|
|
44,354
|
|
37,360
|
Europe
|
3,871
|
|
2,898
|
|
13,705
|
|
8,509
|
Latin America and Asia
Pacific
|
14,310
|
|
9,453
|
|
50,394
|
|
28,644
|
|
37,416
|
|
25,474
|
|
108,453
|
|
74,513
|
Total
revenue
|
$
83,480
|
|
$
74,516
|
|
$
255,414
|
|
$
225,538
|
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SOURCE Aviat Networks, Inc.