Total Q4 Revenue of $91.2 million; Up 17.8% Year-Over-Year
Q4 GAAP Operating Income of $6.3 million; Up 20.6% Year-Over-Year
Q4 Adjusted EBITDA of $12.6 million; Up 37.5% Compared to Prior
Year
AUSTIN,
Texas, Aug. 23, 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 fourth quarter
and twelve months ended June 30, 2023.
Fourth Quarter Highlights
- Executed on key long-term strategic objectives resulting in
continued year-over-year increase in quarterly revenues and
Adjusted EBITDA
- Introduced a new, ultra-high power indoor radio to provide more
capacity, longer links and minimize interference risk for mission
critical networks
- Expanded Aviat's network management software ProVision Plus to
support the wireless access portfolio acquired in the Redline
Communications transaction
- Announced transformational acquisition of NEC's Wireless
Transport Business for $70.0
million
Fourth Quarter Financial Highlights
- Total Revenues: $91.2
million, +17.8% from the same quarter last year
-
- North America:
$55.1 million, +13.0% from the same
quarter last year
- International: $36.0
million, +25.8% from the same quarter last year
- GAAP Results: Gross Margin 35.8%; Operating Expenses
$26.3 million; Operating Income
$6.3 million; Net Income $3.3 million; Net Income per diluted share ('Net
Income per share") $0.28
- Non-GAAP Results: Adjusted EBITDA $12.6 million; Gross Margin 36.2%; Operating
Expenses $22.0 million; Operating
Income $11.0 million; Net Income
$10.3 million; Net Income per share
$0.87
- Net Cash: $22.2 million;
no loans outstanding at quarter-end
Full Year Financial Highlights
- Total Revenues: $346.6
million, +14.4% from the prior year
- GAAP Results: Gross Margin 35.8%; Operating Expenses
$97.8 million; Operating Income
$26.4 million; Net Income
$11.5 million; Net Income per share
$0.97
- Non-GAAP Results: Adjusted EBITDA $47.0 million; Gross Margin 36.1%; Operating
Expenses $84.1 million; Operating
Income $40.8 million; Net Income
$39.1 million; Net Income per share
$3.30
"This quarter's strong performance concluded an exciting fiscal
2023 for Aviat Networks" said Pete
Smith, President and Chief Executive Officer of Aviat
Networks. "The Aviat team executed well on our strategic goals
which resulted in our third consecutive year of double-digit
revenue growth."
Mr. Smith continued, "During fiscal 2023, we successfully
integrated the Redline Communications acquisition, which exceeded
our commitment for the year. We won significant new business
internationally, including Bharti Airtel in India. Additionally, we ended the year with a
backlog of $289 million, up 18%
versus last year. These accomplishments create a foundation to
execute our fiscal 2024 objectives."
Fiscal 2023 Fourth Quarter and Twelve-Month
Comparisons
Revenues
The Company reported total revenues of
$91.2 million for its fiscal 2023
fourth quarter, compared to $77.4
million in the comparable fiscal 2022 period, an increase of
$13.8 million or 17.8%. North America revenue of $55.1 million increased by $6.4 million or 13.0%, compared to $48.8 million in the comparable fiscal 2022
period. International revenue of $36.0
million increased by $7.4
million or 25.8%, compared to $28.6
million in the comparable fiscal 2022 period. The increase
in international revenue was due to high order volumes in the
Middle East & Africa and Latin
America regions.
For the twelve months ended June 30, 2023, the Company
reported total revenues of $346.6
million, compared to $303.0
million in the comparable fiscal 2022 period, an increase of
$43.6 million or 14.4%. North America revenue of $202.1 million increased by $2.3 million or 1.1%, compared to $199.8 million in the comparable fiscal 2022
period. International revenue of $144.5
million increased by $41.3
million or 40.1%, compared to $103.2
million in the comparable fiscal 2022 period.
Gross Margins
In the fiscal 2023 fourth quarter, the
Company reported GAAP and non-GAAP gross margin of 35.8% and 36.2%,
respectively. This compares to GAAP gross margin of 35.5% and
non-GAAP gross margin of 35.7% in the comparable fiscal 2022
period.
For the twelve months ended June 30, 2023, the Company
reported GAAP gross margin of 35.8% and non-GAAP gross margin of
36.1%. This compares to GAAP gross margin of 36.1% and non-GAAP
gross margin of 36.2% in the comparable fiscal 2022 period.
Operating Expenses
GAAP total operating expenses for
the fiscal 2023 fourth quarter were $26.3
million, compared to $22.2
million in the comparable fiscal 2022 period, an increase of
$4.1 million or 18.5%. Non-GAAP total
operating expenses, excluding the impact of restructuring charges,
share-based compensation, and merger and acquisition expenses for
the fiscal 2023 fourth quarter were $22.0
million, compared to $19.5
million in the comparable fiscal 2022 period, an increase of
$2.5 million or 13.0%.
For the twelve months ended June 30, 2023, the Company
reported GAAP total operating expenses of $97.8 million, compared to $80.5 million in the comparable fiscal 2022
period, an increase of $17.3 million
or 21.5%. On a non-GAAP basis, excluding the impact of
restructuring charges, share-based compensation, and merger and
acquisition expenses, total operating expenses for the twelve
months ended June 30, 2023 were $84.1
million, compared to $75.8
million in the fiscal 2022 period, an increase of
$8.3 million or 11.0%.
Operating Income
The Company reported GAAP operating
income of $6.3 million for the fiscal
2023 fourth quarter, compared to a GAAP operating income of
$5.2 million in the comparable fiscal
2022 period, a $1.1 million
year-over-year increase. On a non-GAAP basis, the Company reported
operating income of $11.0 million for
the fiscal 2023 fourth quarter, compared to a non-GAAP operating
income of $8.1 million in the
comparable fiscal 2022 period, a $2.8
million year-over-year increase.
For the twelve months ended June 30, 2023, the Company
reported $26.4 million in GAAP
operating income, compared to GAAP operating income of $28.7 million in the comparable fiscal 2022
period, a $(2.3) million
year-over-year decrease. On a non-GAAP basis, the Company reported
operating income of $40.8 million for
the twelve months ended June 30, 2023, compared to
$33.9 million in the comparable
fiscal 2022 period, a $7.0 million
year-over-year improvement.
Net Income / Net Income Per Share
The Company reported
GAAP net income of $3.3 million in
the fiscal 2023 fourth quarter or GAAP net income per share of
$0.28. This compared to a GAAP net
income of $4.5 million or GAAP net
income per share of $0.39 in the
fiscal 2022 fourth quarter. On a non-GAAP basis, the Company
reported net income of $10.3 million
or a non-GAAP net income per share of $0.87, compared to a non-GAAP net income of
$7.8 million or non-GAAP net income
per share of $0.67 in the comparable
fiscal 2022 period.
For the twelve months ended June 30, 2023, the Company
reported GAAP net income of $11.5
million or a GAAP net income per share of $0.97. This compared to GAAP net income of
$21.2 million or a GAAP net income
per share of $1.79 in the comparable
fiscal 2022 period. On a non-GAAP basis, for the twelve months
ended June 30, 2023, the Company reported net income of
$39.1 million or a net income per
share of $3.30, compared to non-GAAP
net income of $32.7 million or
$2.76 per share in the comparable
fiscal 2022 period.
Adjusted EBITDA
Adjusted earnings before interest,
tax, depreciation and amortization ("Adjusted EBITDA") for the
fiscal 2023 fourth quarter was $12.6
million, compared to $9.1
million in the comparable fiscal 2022 period, a
year-over-year increase of approximately $3.4 million. For the twelve months ended
June 30, 2023, the Company reported Adjusted EBITDA of
$47.0 million, compared to
$38.3 million in the comparable
fiscal 2022 period, a year-over-year increase of approximately
$8.7 million.
Balance Sheet Highlights
The Company reported cash of
$22.2 million with no loans
outstanding as of June 30, 2023, as compared to the prior
quarter ended March 31, 2023 cash balance of $22.5 million with $6.2
million of loans outstanding, or net cash of $16.3 million.
Fiscal 2024 Full Year Guidance
The Company established
its fiscal 2024 full year revenue and Adjusted EBITDA guidance as
follows:
- Full year Revenue between $367
and $374 million
- Full year Adjusted EBITDA between $51.0 and $56.0
million1
Conference Call Details
Aviat Networks will host a
conference call at 5:00 p.m. Eastern
Time (ET) today, August 23, 2023, to discuss its
financial and operational results for the fourth quarter and fiscal
year ended June 30, 2023. 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 Network'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 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 outlook, business conditions, new
product solutions, customer positioning, future orders, bookings,
new contracts, cost structure, profitability in fiscal 2024,
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: (i) our ability
to successfully close our pending transaction with NEC Corporation
(the "NEC Transaction"), which requires certain regulatory
approvals (including clearance by antitrust authorities necessary
to complete the NEC Transaction on the terms and timeline desired);
(ii) disruption the NEC Transaction may cause to customers,
vendors, business partners and our ongoing business; and (iii) once
closed, our ability to integrate the operations of the acquired NEC
Corporation businesses with our existing operations and fully
realize the expected synergies of the NEC Transaction on the
expected timeline; 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 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; and 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.
1We 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
Fourth Quarter Summary
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
(In thousands, except per share amounts)
|
June 30,
2023
|
|
July 1, 2022
|
|
June 30,
2023
|
|
July 1, 2022
|
Revenues:
|
|
|
|
|
|
|
|
Product
sales
|
$
63,848
|
|
$
51,739
|
|
$
239,321
|
|
$
208,100
|
Services
|
27,331
|
|
25,682
|
|
107,272
|
|
94,859
|
Total
revenues
|
91,179
|
|
77,421
|
|
346,593
|
|
302,959
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Product
sales
|
39,441
|
|
34,615
|
|
151,008
|
|
132,404
|
Services
|
19,074
|
|
15,344
|
|
71,414
|
|
61,320
|
Total cost of
revenues
|
58,515
|
|
49,959
|
|
222,422
|
|
193,724
|
Gross
margin
|
32,664
|
|
27,462
|
|
124,171
|
|
109,235
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
6,256
|
|
5,258
|
|
24,908
|
|
22,596
|
Selling and
administrative
|
19,929
|
|
16,352
|
|
69,842
|
|
57,656
|
Restructuring
charges
|
157
|
|
611
|
|
3,012
|
|
238
|
Total operating
expenses
|
26,342
|
|
22,221
|
|
97,762
|
|
80,490
|
Operating
income
|
6,322
|
|
5,241
|
|
26,409
|
|
28,745
|
Other income,
net
|
(556)
|
|
2,077
|
|
(3,306)
|
|
1,690
|
Income before income
taxes
|
5,766
|
|
7,318
|
|
23,103
|
|
30,435
|
Provision for income
taxes
|
2,427
|
|
2,785
|
|
11,575
|
|
9,275
|
Net
income
|
$
3,339
|
|
$
4,533
|
|
$
11,528
|
|
$
21,160
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.29
|
|
$
0.41
|
|
$
1.01
|
|
$
1.89
|
Diluted
|
$
0.28
|
|
$
0.39
|
|
$
0.97
|
|
$
1.79
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,475
|
|
11,151
|
|
11,358
|
|
11,167
|
Diluted
|
11,920
|
|
11,726
|
|
11,855
|
|
11,820
|
Table
2
AVIAT NETWORKS,
INC.
Fiscal Year 2023
Fourth Quarter Summary
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
(In thousands)
|
June 30,
2023
|
|
July 1, 2022
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
22,242
|
|
$
36,877
|
Marketable
securities
|
2
|
|
10,893
|
Accounts receivable,
net
|
101,653
|
|
73,168
|
Unbilled
receivables
|
58,588
|
|
45,857
|
Inventories
|
33,057
|
|
27,169
|
Other current
assets
|
22,162
|
|
12,437
|
Total current
assets
|
237,704
|
|
206,401
|
Property, plant and
equipment, net
|
9,452
|
|
8,887
|
Goodwill
|
5,112
|
|
—
|
Intangible assets,
net
|
9,046
|
|
—
|
Deferred income
taxes
|
86,650
|
|
95,412
|
Right of use
assets
|
2,554
|
|
2,759
|
Other assets
|
13,978
|
|
10,445
|
TOTAL
ASSETS
|
$
364,496
|
|
$
323,904
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
60,141
|
|
$
42,394
|
Accrued
expenses
|
24,442
|
|
26,451
|
Short-term lease
liabilities
|
610
|
|
513
|
Advance payments and
unearned revenue
|
44,268
|
|
33,740
|
Restructuring
liabilities
|
600
|
|
1,381
|
Total current
liabilities
|
130,061
|
|
104,479
|
Unearned
revenue
|
7,416
|
|
8,920
|
Long-term lease
liabilities
|
2,140
|
|
2,412
|
Other long-term
liabilities
|
314
|
|
273
|
Reserve for uncertain
tax positions
|
3,975
|
|
5,504
|
Deferred income
taxes
|
492
|
|
563
|
Total
liabilities
|
144,398
|
|
122,151
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred
stock
|
—
|
|
—
|
Common
stock
|
115
|
|
112
|
Treasury
stock
|
(6,147)
|
|
(6,147)
|
Additional
paid-in-capital
|
830,048
|
|
823,259
|
Accumulated
deficit
|
(587,914)
|
|
(599,442)
|
Accumulated other
comprehensive loss
|
(16,004)
|
|
(16,029)
|
Total
equity
|
220,098
|
|
201,753
|
TOTAL LIABILITIES AND
EQUITY
|
$
364,496
|
|
$
323,904
|
AVIAT NETWORKS, INC.
Fiscal Year
2023 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 2023
Fourth Quarter Summary
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (1)
Consolidated
Statements of Operations
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
June 30,
2023
|
|
% of
Revenue
|
|
July 1, 2022
|
|
% of
Revenue
|
|
June 30,
2023
|
|
% of
Revenue
|
|
July 1, 2022
|
|
% of
Revenue
|
|
(In thousands,
except percentages and per share amounts)
|
GAAP gross
margin
|
$
32,664
|
|
35.8 %
|
|
$
27,462
|
|
35.5 %
|
|
$ 124,171
|
|
35.8 %
|
|
$ 109,235
|
|
36.1 %
|
Share-based
compensation
|
164
|
|
|
|
169
|
|
|
|
627
|
|
|
|
440
|
|
|
Merger and acquisition
related expense
|
174
|
|
|
|
—
|
|
|
|
180
|
|
|
|
—
|
|
|
Non-GAAP gross
margin
|
33,002
|
|
36.2 %
|
|
27,631
|
|
35.7 %
|
|
124,978
|
|
36.1 %
|
|
109,675
|
|
36.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
6,256
|
|
6.9 %
|
|
$
5,258
|
|
6.8 %
|
|
$
24,908
|
|
7.2 %
|
|
$
22,596
|
|
7.5 %
|
Share-based
compensation
|
(129)
|
|
|
|
(143)
|
|
|
|
(514)
|
|
|
|
(246)
|
|
|
Non-GAAP research
and development expenses
|
6,127
|
|
6.7 %
|
|
5,115
|
|
6.6 %
|
|
24,394
|
|
7.0 %
|
|
22,350
|
|
7.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative expenses
|
$
19,929
|
|
21.9 %
|
|
$
16,352
|
|
21.1 %
|
|
$
69,842
|
|
20.2 %
|
|
$
57,656
|
|
19.0 %
|
Share-based
compensation
|
(1,292)
|
|
|
|
(1,058)
|
|
|
|
(5,579)
|
|
|
|
(3,148)
|
|
|
Merger and acquisition
related expense
|
(2,727)
|
|
|
|
(905)
|
|
|
|
(4,526)
|
|
|
|
(1,061)
|
|
|
Non-GAAP selling and
administrative expenses
|
15,910
|
|
17.4 %
|
|
14,389
|
|
18.6 %
|
|
59,737
|
|
17.2 %
|
|
53,447
|
|
17.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
6,322
|
|
6.9 %
|
|
$
5,241
|
|
6.8 %
|
|
$
26,409
|
|
7.6 %
|
|
$
28,745
|
|
9.5 %
|
Share-based
compensation
|
1,585
|
|
|
|
1,370
|
|
|
|
6,720
|
|
|
|
3,834
|
|
|
Merger and acquisition
related expense
|
2,901
|
|
|
|
905
|
|
|
|
4,706
|
|
|
|
1,061
|
|
|
Restructuring
charges
|
157
|
|
|
|
611
|
|
|
|
3,012
|
|
|
|
238
|
|
|
Non-GAAP operating
income
|
10,965
|
|
12.0 %
|
|
8,127
|
|
10.5 %
|
|
40,847
|
|
11.8 %
|
|
33,878
|
|
11.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision
|
$
2,427
|
|
2.7 %
|
|
$
2,785
|
|
3.6 %
|
|
$
11,575
|
|
3.3 %
|
|
$
9,275
|
|
3.1 %
|
Adjustment to reflect
pro forma tax rate
|
(2,127)
|
|
|
|
(2,485)
|
|
|
|
(10,375)
|
|
|
|
(8,075)
|
|
|
Non-GAAP income tax
provision
|
300
|
|
0.3 %
|
|
300
|
|
0.4 %
|
|
1,200
|
|
0.3 %
|
|
1,200
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
3,339
|
|
3.7 %
|
|
$
4,533
|
|
5.9 %
|
|
$
11,528
|
|
3.3 %
|
|
$
21,160
|
|
7.0 %
|
Share-based
compensation
|
1,585
|
|
|
|
1,370
|
|
|
|
6,720
|
|
|
|
3,834
|
|
|
Merger and acquisition
related expense
|
2,901
|
|
|
|
905
|
|
|
|
4,706
|
|
|
|
1,061
|
|
|
Restructuring
charges
|
157
|
|
|
|
611
|
|
|
|
3,012
|
|
|
|
238
|
|
|
Other expense (income),
net
|
234
|
|
|
|
(2,077)
|
|
|
|
2,774
|
|
|
|
(1,690)
|
|
|
Adjustment to reflect
pro forma tax rate
|
2,127
|
|
|
|
2,485
|
|
|
|
10,375
|
|
|
|
8,075
|
|
|
Non-GAAP net
income
|
$
10,343
|
|
11.3 %
|
|
$
7,827
|
|
10.1 %
|
|
$
39,115
|
|
11.3 %
|
|
$
32,678
|
|
10.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share:
|
GAAP
|
$
0.28
|
|
|
|
$
0.39
|
|
|
|
$
0.97
|
|
|
|
$
1.79
|
|
|
Non-GAAP
|
$
0.87
|
|
|
|
$
0.67
|
|
|
|
$
3.30
|
|
|
|
$
2.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted net income per share
|
GAAP/Non-GAAP
|
11,920
|
|
|
|
11,726
|
|
|
|
11,855
|
|
|
|
11,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
3,339
|
|
3.7 %
|
|
$
4,533
|
|
5.9 %
|
|
$
11,528
|
|
3.3 %
|
|
$
21,160
|
|
7.0 %
|
Depreciation and
amortization of property, plant
and equipment and
intangible assets
|
1,615
|
|
|
|
1,019
|
|
|
|
6,180
|
|
|
|
4,463
|
|
|
Other expense (income),
net
|
556
|
|
|
|
(2,077)
|
|
|
|
3,306
|
|
|
|
(1,690)
|
|
|
Share-based
compensation
|
1,585
|
|
|
|
1,370
|
|
|
|
6,720
|
|
|
|
3,834
|
|
|
Merger and acquisition
related expense
|
2,901
|
|
|
|
905
|
|
|
|
4,706
|
|
|
|
1,061
|
|
|
Restructuring
charges
|
157
|
|
|
|
611
|
|
|
|
3,012
|
|
|
|
238
|
|
|
Provision for income
taxes
|
2,427
|
|
|
|
2,785
|
|
|
|
11,575
|
|
|
|
9,275
|
|
|
Adjusted
EBITDA
|
$
12,580
|
|
13.8 %
|
|
$
9,146
|
|
11.8 %
|
|
$
47,027
|
|
13.6 %
|
|
$
38,341
|
|
12.7 %
|
_____________________________________________________
(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 and intangible assets, 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
Fourth Quarter Summary
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
June 30,
2023
|
|
July 1, 2022
|
|
June 30,
2023
|
|
July 1, 2022
|
|
(In
thousands)
|
North
America
|
$
55,137
|
|
$
48,776
|
|
$
202,096
|
|
$
199,801
|
International:
|
|
|
|
|
|
|
|
Africa and Middle
East
|
16,198
|
|
10,167
|
|
60,416
|
|
47,527
|
Europe
|
4,931
|
|
4,464
|
|
18,772
|
|
12,973
|
Latin America and Asia
Pacific
|
14,913
|
|
14,014
|
|
65,309
|
|
42,658
|
|
36,042
|
|
28,645
|
|
144,497
|
|
103,158
|
Total
revenue
|
$
91,179
|
|
$
77,421
|
|
$
346,593
|
|
$
302,959
|
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SOURCE Aviat Networks, Inc.