MILPITAS, Calif., May 10,
2017 /PRNewswire/ --
- GAAP operating income of $0.1
million represents a $7.7
million improvement year-over-year, Non-GAAP operating
income of $0.7 million represents a
$7.0 million improvement
year-over-year
- GAAP net loss of $0.4 million
represents a $7.5 million improvement
year-over-year
- Adjusted EBITDA of $2.0 million
represents a $6.8 million improvement
year-over-year
- Revenue of $58.7 million declined
year-over-year by 2.9% as some projects were pushed into fiscal
2018
- Balance sheet continues to strengthen; cash and cash
equivalents grew by $4.9 million in
the quarter and $9.4 million since
the end of fiscal year 2016
- Aviat Networks anticipates positive Adjusted EBITDA in its
fiscal 2017 fourth quarter, expects a slight loss on a GAAP basis
and positive non-GAAP operating income for the full fiscal
year
Aviat Networks, Inc. (NASDAQ: AVNW), ("Aviat Networks" or "the
Company"), the leading expert in microwave networking solutions,
today reported financial results for its fiscal 2017 third quarter
ended March 31, 2017.
Commenting on the Company's fiscal 2017 third quarter results,
Michael Pangia, President and Chief
Executive Officer of Aviat Networks stated, "Generating consistent
profitability, and building our cash position remain top
priorities, and during the quarter, we accomplished both. We
reported positive operating income and Adjusted EBITDA. We also
increased our net cash position by $4.9
million, while generating $5.1
million in cash from operations. Gross margins remain above
30% and we took steps to further optimize our business and lower
our fixed costs. While revenue and bookings were lower than
initially expected, much of this was due to timing. In fiscal 2018,
we anticipate the Company will return to top-line growth while
further improving profitability."
Fiscal 2017 Third Quarter Results Comparisons
The Company reported total revenues of $58.7 million for its fiscal 2017 third quarter
as compared to $60.5 million in the
comparable fiscal 2016 period, a decline of $1.8 million or 2.9%. The year-over-year
decline in revenue is primarily related to a decline in
international revenue offset in part by an increase in North America revenue.
GAAP gross margins for the fiscal 2017 third quarter were 30.2%
as compared to 23.8% in the fiscal 2016 third quarter, an
improvement of approximately 640 basis points. Non-GAAP gross
margins for the fiscal 2017 third quarter were 30.2% as compared to
23.9% in the fiscal 2016 third quarter, an increase of 630 basis
points. Both GAAP and Non-GAAP gross margin percentage improvements
were primarily driven by better efficiencies within the Company's
services business combined with process enhancements within supply
chain operations.
GAAP total operating expenses for the fiscal 2017 third quarter
were $17.7 million as compared to
$22.0 million reported in the fiscal
2016 third quarter, a reduction of $4.3
million or 19.8%. Non-GAAP total operating expenses for the
fiscal 2017 third quarter, excluding the impact of share-based
compensation, were $17.0 million as
compared to $20.8 million reported in
the fiscal 2016 third quarter, a reduction of $3.8 million or 18.1%. The improvements in both
GAAP and Non-GAAP operating expenses were driven by recoveries of
bad debt expenses, and continued reductions in overhead
expenses.
GAAP operating income was $0.1
million for the fiscal 2017 third quarter as compared to a
GAAP operating loss of $7.6 million
for the comparable fiscal 2016 period, an improvement of
$7.7 million. Non-GAAP operating
income was $0.7 million for the
fiscal 2017 third quarter as compared to a Non-GAAP operating loss
of $6.3 million for the comparable
fiscal 2016 period, an improvement of $7.0
million. The Company reported a GAAP net loss from
continuing operations of $0.4
million, or a loss of $0.08
per basic and diluted share and Non-GAAP income from continuing
operations of $0.4 million or income
of $0.07 per basic and diluted share.
This compares to a GAAP loss from continuing operations of
$8.0 million or a loss of
$1.52 per basic and diluted share for
the comparable year-ago period, and a Non-GAAP loss from continuing
operations attributable to Aviat Networks of $6.6 million or a loss of $1.26 per diluted share for the comparable fiscal
2016 period.
Adjusted EBITDA for the fiscal 2017 third quarter was
$2.0 million, compared with an
Adjusted EBITDA loss of $4.7 million
in the comparable fiscal 2016 period, an improvement of
$6.8 million.
Cash and cash equivalents were $39.9
million as of March 31, 2017 as compared to
$30.5 million as of July 1,
2016, an improvement of $9.4 million.
Additionally, cash and cash equivalents increased $4.9 million during the quarter as compared to
$35.0 million reported at the end of
the fscal 2017 second quarter.
Fiscal 2017 Fourth Quarter Outlook
The Company today provided updates on its outlook for the fiscal
2017 fourth quarter. Revenue is expected to be in the range
of $57.0 - $62.0 million. The
Company's revised outlook is based primarily on the timing of
certain projects which were pushed back to early fiscal 2018.
Non-GAAP gross margins are still anticipated to be approximately
30.0%, and non-GAAP operating expenses are now expected to be in
the range of $18.0 - $18.5 million in
the fiscal 2017 fourth quarter. As such, the Company
anticipates it will operate near break-even on a non-GAAP operating
basis while posting positive Adjusted EBITDA in the fiscal 2017
fourth quarter.
For the full fiscal year ended June 30,
2017, the Company expects revenue to be between $242.0 and $247.0 million. With the
significant improvements in both gross margins and operating
expenses as compared to fiscal 2016, the Company anticipates it
will generate positive non-GAAP operating income in fiscal 2017
compared to a non-GAAP operating loss of $18.1 million in fiscal 2016. Furthermore,
the Company expects to post positive Adjusted EBITDA in fiscal
2017, compared to an Adjusted EBITDA loss of $11.5 million in fiscal 2016.
A reconciliation of GAAP to Non-GAAP financial measures for the
third quarter of fiscal 2017 along with the accompanying notes is
provided in Table 3 below.
Conference Call Details
Aviat Networks will host a conference call at 4:30 p.m. Eastern Time (ET) on May 10, 2017
to discuss its financial results for the fiscal 2017 third quarter.
To listen to the live conference call, please dial toll free
(US/CAN) (866) 562-9910, (INTL) (661) 378-9805, conference ID:
15018986. Investors are invited to listen via webcast, which will
be broadcasted live and via replay approximately two hours after
the call at http://investors.aviatnetworks.com/events.cfm.
Non-GAAP Measures and Comparative Financial
Information
Aviat Networks, Inc. reports information in accordance with U.S.
Generally Accepted Accounting Principles ("GAAP"). Management of
Aviat Networks monitors gross margin, research and development
expenses, selling and administrative expenses, operating income
(loss), income tax provision, (loss) income from continuing
operations attributable to Aviat Networks, basic and diluted net
(loss) income per share from continuing operations attributable to
Aviat Networks, adjusted income (loss) before interest, tax,
depreciation and amortization ("Adjusted EBITDA") attributable to
Aviat Networks adjusted to exclude certain costs, charges, gains
and losses, on a non-GAAP basis for planning and forecasting
results in future periods, and may use these measures for some
management compensation purposes. These measures exclude certain
costs, expenses, gains and losses as shown on the attached
Reconciliation of Non-GAAP Financial Measures table (Table 3). As a
result, management is presenting these non-GAAP measures in
addition to results reported in accordance with GAAP to better
communicate underlying operational and financial performance in
each period. Management believes these non-GAAP 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 given period. Management also believes
that these non-GAAP measures enhance the ability of an investor to
analyze trends in Aviat Networks' business and to better understand
our performance. Aviat Networks' management does not, nor does it
suggest that investors should, consider such non-GAAP financial
measures in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Aviat Networks
presents these non-GAAP financial measures in reporting its
financial results to provide investors with an additional tool to
evaluate its financial performance. Reconciliations of these
non-GAAP financial measures with the most directly comparable
financial measures calculated in accordance with GAAP are included
in the tables below.
About Aviat Networks
Aviat Networks, Inc. works to provide dependable products,
services and support to our 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 50 years, the experts at Aviat have delivered
high performance products, simplified operations and the best
overall customer experience. Aviat Networks is headquartered in
Milpitas, California. 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, Section 21E of the Securities Exchange Act of 1934 and
Section 27A of the Securities Act of 1933 including Aviat Networks'
beliefs and expectations regarding business conditions, new product
solutions, customer positioning, revenue, future orders, bookings,
new contracts, cost structure, operating income, profitability in
fiscal 2017, 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 Networks 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 Networks regarding
the future of our 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:
- 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;
- our ability to meet financial covenant requirements which could
impact, among other things, our liquidity;
- the timing of our receipt of payment for products or services
from our customers;
- our ability to meet projected new product development dates or
anticipated cost reductions of new products;
- our 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 our subcontractors to timely perform;
- continued weakness in the global economy affecting customer
spending;
- retention of our key personnel;
- our ability to manage and maintain key customer
relationships;
- 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 by
others;
- the results of restructuring efforts;
- the ability to preserve and use our net operating loss
carryforwards;
- the effects of currency and interest rate risks;
- the conduct of unethical business practices in developing
countries; and
- the impact of political turmoil in countries where we have
significant business.
For more information regarding the risks and uncertainties for
our business, see "Risk Factors" in our Form 10-K filed with the
U.S. Securities and Exchange Commission ("SEC") on September 9, 2016 as well as other reports filed
by Aviat Networks, Inc. with the SEC from time to time. Aviat
Networks 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:
Glenn
Wiener, GW Communications for Aviat Networks, Inc.
Tel: 212-786-6011 / Investorinfo@aviatnet.com or
GWiener@GWCco.com
Table
1 AVIAT NETWORKS, INC. Fiscal Year 2017 Third
Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(In thousands, except per share amounts)
|
March
31,
2017
|
|
April 1,
2016
|
|
March
31,
2017
|
|
April 1,
2016
|
Revenues:
|
|
|
|
|
|
|
|
Revenue from product
sales
|
$
|
39,099
|
|
|
$
|
36,241
|
|
|
$
|
119,781
|
|
|
$
|
134,602
|
|
Revenue from
services
|
19,601
|
|
|
24,226
|
|
|
65,662
|
|
|
75,836
|
|
Total
revenues
|
58,700
|
|
|
60,467
|
|
|
185,443
|
|
|
210,438
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of product
sales
|
26,911
|
|
|
28,454
|
|
|
82,774
|
|
|
98,962
|
|
Cost of
services
|
14,057
|
|
|
17,600
|
|
|
46,456
|
|
|
59,628
|
|
Total cost of
revenues
|
40,968
|
|
|
46,054
|
|
|
129,230
|
|
|
158,590
|
|
Gross
margin
|
17,732
|
|
|
14,413
|
|
|
56,213
|
|
|
51,848
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses
|
4,264
|
|
|
5,063
|
|
|
13,682
|
|
|
15,749
|
|
Selling and
administrative expenses
|
13,284
|
|
|
16,140
|
|
|
42,527
|
|
|
49,430
|
|
Restructuring
charges
|
111
|
|
|
804
|
|
|
343
|
|
|
859
|
|
Total operating
expenses
|
17,659
|
|
|
22,007
|
|
|
56,552
|
|
|
66,038
|
|
Operating income
(loss)
|
73
|
|
|
(7,594)
|
|
|
(339)
|
|
|
(14,190)
|
|
Interest
income
|
42
|
|
|
58
|
|
|
168
|
|
|
195
|
|
Interest
expense
|
(7)
|
|
|
(5)
|
|
|
(28)
|
|
|
(98)
|
|
Other
income
|
341
|
|
|
—
|
|
|
164
|
|
|
—
|
|
Income (loss) from
continuing operations before income taxes
|
449
|
|
|
(7,541)
|
|
|
(35)
|
|
|
(14,093)
|
|
Provision for
(benefit from) income taxes
|
779
|
|
|
361
|
|
|
(826)
|
|
|
856
|
|
(Loss) income from
continuing operations
|
(330)
|
|
|
(7,902)
|
|
|
791
|
|
|
(14,949)
|
|
Income from
discontinued operations, net of tax
|
—
|
|
|
94
|
|
|
—
|
|
|
453
|
|
Net (loss)
income
|
(330)
|
|
|
(7,808)
|
|
|
791
|
|
|
(14,496)
|
|
Net income
attributable to noncontrolling interests, net of tax
|
69
|
|
|
66
|
|
|
141
|
|
|
260
|
|
Net (loss) income
attributable to Aviat Networks
|
$
|
(399)
|
|
|
$
|
(7,874)
|
|
|
$
|
650
|
|
|
$
|
(14,756)
|
|
|
|
|
|
|
|
|
|
Amount
attributable to Aviat Networks:
|
|
|
|
|
|
|
|
Net (loss) income from
continuing operations, net of tax
|
$
|
(399)
|
|
|
$
|
(7,968)
|
|
|
$
|
650
|
|
|
$
|
(15,209)
|
|
Net income from
discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
94
|
|
|
$
|
—
|
|
|
$
|
453
|
|
|
|
|
|
|
|
|
|
Basic (loss)
income per share attributable to Aviat Networks' common
stockholders:
|
Continuing
operations
|
$
|
(0.08)
|
|
|
$
|
(1.52)
|
|
|
$
|
0.12
|
|
|
$
|
(2.91)
|
|
Discontinued
operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.09
|
|
Net (loss)
income
|
$
|
(0.08)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.12
|
|
|
$
|
(2.82)
|
|
Weighted average
shares outstanding, basic
|
5,310
|
|
|
5,255
|
|
|
5,286
|
|
|
5,230
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
income per share attributable to Aviat Networks' common
stockholders:
|
Continuing
operations
|
$
|
(0.08)
|
|
|
$
|
(1.52)
|
|
|
$
|
0.12
|
|
|
$
|
(2.91)
|
|
Discontinued
operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.09
|
|
Net (loss)
income
|
$
|
(0.08)
|
|
|
$
|
(1.50)
|
|
|
$
|
0.12
|
|
|
$
|
(2.82)
|
|
Weighted average
shares outstanding, diluted
|
5,310
|
|
|
5,255
|
|
|
5,392
|
|
|
5,230
|
|
Table
2 AVIAT NETWORKS, INC. Fiscal Year 2017 Third
Quarter Summary CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
|
|
|
|
|
(In thousands)
|
March
31,
2017
|
|
July 1,
2016
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
39,910
|
|
|
$
|
30,479
|
|
Short-term
investments
|
240
|
|
|
222
|
|
Accounts receivable,
net
|
45,177
|
|
|
63,449
|
|
Unbilled
costs
|
9,777
|
|
|
5,117
|
|
Inventories
|
20,338
|
|
|
27,293
|
|
Customer service
inventories
|
2,178
|
|
|
3,064
|
|
Other current
assets
|
11,147
|
|
|
10,790
|
|
Total current
assets
|
128,767
|
|
|
140,414
|
|
Property, plant and
equipment, net
|
15,713
|
|
|
18,162
|
|
Deferred income
taxes
|
5,748
|
|
|
6,068
|
|
Other
assets
|
1,296
|
|
|
1,467
|
|
Total long-term
assets
|
22,757
|
|
|
25,697
|
|
TOTAL
ASSETS
|
$
|
151,524
|
|
|
$
|
166,111
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-term
debt
|
$
|
8,000
|
|
|
$
|
9,000
|
|
Accounts
payable
|
29,816
|
|
|
33,217
|
|
Accrued
expenses
|
22,435
|
|
|
23,205
|
|
Advance payments and
unearned income
|
23,218
|
|
|
30,615
|
|
Restructuring
liabilities
|
1,691
|
|
|
3,910
|
|
Total current
liabilities
|
85,160
|
|
|
99,947
|
|
Unearned
income
|
7,561
|
|
|
8,387
|
|
Other long-term
liabilities
|
1,047
|
|
|
1,409
|
|
Reserve for uncertain
tax positions
|
1,411
|
|
|
1,414
|
|
Deferred income
taxes
|
1,497
|
|
|
1,497
|
|
Total
liabilities
|
96,676
|
|
|
112,654
|
|
Equity:
|
|
|
|
Preferred stock,
$0.01 par value, 50,000,000 shares authorized, no shares issued or
outstanding
|
—
|
|
|
—
|
|
Common stock, $0.01
par value, 300,000,000 shares authorized, 5,314,860 shares issued
and outstanding at March
31, 2017; 5,261,041 shares issued and outstanding at July 1,
2016
|
53
|
|
|
53
|
|
Additional
paid-in-capital
|
813,120
|
|
|
811,601
|
|
Accumulated
deficit
|
(746,731)
|
|
|
(747,381)
|
|
Accumulated other
comprehensive loss
|
(12,076)
|
|
|
(11,157)
|
|
Total Aviat Networks
stockholders' equity
|
54,366
|
|
|
53,116
|
|
Noncontrolling
interests
|
482
|
|
|
341
|
|
Total
equity
|
54,848
|
|
|
53,457
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
151,524
|
|
|
$
|
166,111
|
|
AVIAT NETWORKS, INC.
Fiscal Year
2017 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 (loss), income tax provision, (loss) income from
continuing operations attributable to Aviat Networks, diluted net
(loss) income per share from continuing operations attributable to
Aviat Networks, and adjusted earnings before interest, tax,
depreciation and amortization ("Adjusted EBITDA") attributable to
Aviat Networks, 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 2017 Third
Quarter Summary RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES (1) Condensed Consolidated Statements
of Operations (Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March 31,
2017
|
|
% of
Revenue
|
|
April 1,
2016
|
|
% of
Revenue
|
|
March 31,
2017
|
|
% of
Revenue
|
|
April 1,
2016
|
|
% of
Revenue
|
|
|
(In thousands,
except percentages and per share amounts)
|
GAAP gross
margin
|
$
|
17,732
|
|
30.2
|
%
|
|
$
|
14,413
|
|
|
23.8
|
%
|
|
$
|
56,213
|
|
30.3
|
%
|
|
$
|
51,848
|
|
24.6
|
%
|
WTM inventory
write-down recovery
|
(48)
|
|
|
|
—
|
|
|
|
|
(131)
|
|
|
|
—
|
|
|
Performance bond
expense
|
—
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
—
|
|
|
Share-based
compensation
|
48
|
|
|
|
44
|
|
|
|
|
151
|
|
|
|
125
|
|
|
Non-GAAP gross
margin
|
17,732
|
|
30.2
|
%
|
|
14,457
|
|
|
23.9
|
%
|
|
56,598
|
|
30.5
|
%
|
|
51,973
|
|
24.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
4,264
|
|
7.3
|
%
|
|
$
|
5,063
|
|
|
8.4
|
%
|
|
$
|
13,682
|
|
7.4
|
%
|
|
$
|
15,749
|
|
7.5
|
%
|
Share-based
compensation
|
(38)
|
|
|
|
(28)
|
|
|
|
|
(100)
|
|
|
|
(92)
|
|
|
Non-GAAP research
and development expenses
|
4,226
|
|
7.2
|
%
|
|
5,035
|
|
|
8.3
|
%
|
|
13,582
|
|
7.3
|
%
|
|
15,657
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative expenses
|
$
|
13,284
|
|
22.6
|
%
|
|
$
|
16,140
|
|
|
26.7
|
%
|
|
$
|
42,527
|
|
22.9
|
%
|
|
$
|
49,430
|
|
23.5
|
%
|
Share-based
compensation
|
(479)
|
|
|
|
(388)
|
|
|
|
|
(1,260)
|
|
|
|
(1,165)
|
|
|
Non-GAAP selling
and administrative expenses
|
12,805
|
|
21.8
|
%
|
|
15,752
|
|
|
26.1
|
%
|
|
41,267
|
|
22.3
|
%
|
|
48,265
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income (loss)
|
$
|
73
|
|
0.1
|
%
|
|
$
|
(7,594)
|
|
|
(12.6)%
|
|
|
$
|
(339)
|
|
(0.2)%
|
|
|
$
|
(14,190)
|
|
(6.7)%
|
|
WTM inventory
write-down recovery
|
(48)
|
|
|
|
—
|
|
|
|
|
(131)
|
|
|
|
—
|
|
|
Performance bond
expense
|
—
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
—
|
|
|
Share-based
compensation
|
565
|
|
|
|
460
|
|
|
|
|
1,511
|
|
|
|
1,382
|
|
|
Restructuring
charges
|
111
|
|
|
|
804
|
|
|
|
|
343
|
|
|
|
859
|
|
|
Non-GAAP operating
income (loss)
|
701
|
|
1.2
|
%
|
|
(6,330)
|
|
|
(10.5)%
|
|
|
1,749
|
|
0.9
|
%
|
|
(11,949)
|
|
(5.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision
|
$
|
779
|
|
1.3
|
%
|
|
$
|
361
|
|
|
0.6
|
%
|
|
$
|
(826)
|
|
(0.4)%
|
|
|
$
|
856
|
|
0.4
|
%
|
Tax refund from
Inland Revenue Authority of Singapore
|
—
|
|
|
|
—
|
|
|
|
|
3,741
|
|
|
|
—
|
|
|
Adjustment to reflect
pro forma tax rate
|
(479)
|
|
|
|
(61)
|
|
|
|
|
(2,015)
|
|
|
|
44
|
|
|
Non-GAAP income
tax provision
|
300
|
|
0.5
|
%
|
|
300
|
|
|
0.5
|
%
|
|
900
|
|
0.5
|
%
|
|
900
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) income
from continuing operations
attributable to Aviat
Networks
|
$
|
(399)
|
|
(0.7)%
|
|
|
$
|
(7,968)
|
|
|
(13.2)%
|
|
|
$
|
650
|
|
0.4
|
%
|
|
$
|
(15,209)
|
|
(7.2)%
|
|
Share-based
compensation
|
565
|
|
|
|
460
|
|
|
|
|
1,511
|
|
|
|
1,382
|
|
|
Restructuring
charges
|
111
|
|
|
|
804
|
|
|
|
|
343
|
|
|
|
859
|
|
|
Nigeria FX (income)
loss on dividend receivable
|
10
|
|
|
|
—
|
|
|
|
|
218
|
|
|
|
—
|
|
|
WTM inventory
write-down recovery
|
(48)
|
|
|
|
—
|
|
|
|
|
(131)
|
|
|
|
—
|
|
|
Performance bond
expense
|
—
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
—
|
|
|
Gain on liquidation
of subsidiary
|
(349)
|
|
|
|
—
|
|
|
|
|
(349)
|
|
|
|
—
|
|
|
Tax refund from
Inland Revenue Authority of
Singapore
|
—
|
|
|
|
—
|
|
|
|
|
(3,741)
|
|
|
|
—
|
|
|
Adjustment to reflect
pro forma tax rate
|
479
|
|
|
|
61
|
|
|
|
|
2,015
|
|
|
|
(44)
|
|
|
Non-GAAP income
(loss) from continuing
operations attributable to Aviat
Networks
|
$
|
369
|
|
0.6
|
%
|
|
$
|
(6,643)
|
|
|
(11.0)%
|
|
|
$
|
881
|
|
0.5
|
%
|
|
$
|
(13,012)
|
|
(6.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
income per share from continuing operations attributable to Aviat
Networks stockholders
|
|
GAAP
|
$
|
(0.08)
|
|
|
|
$
|
(1.52)
|
|
|
|
|
$
|
0.12
|
|
|
|
$
|
(2.91)
|
|
|
Non-GAAP
|
$
|
0.07
|
|
|
|
$
|
(1.26)
|
|
|
|
|
$
|
0.16
|
|
|
|
$
|
(2.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted (loss) income per share from continuing
operations
|
|
GAAP
|
5,310
|
|
|
|
5,255
|
|
|
|
|
5,392
|
|
|
|
5,230
|
|
|
Non-GAAP
|
5,511
|
|
|
|
5,255
|
|
|
|
|
5,392
|
|
|
|
5,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP (loss) income
from continuing operations
attributable to Aviat
Networks
|
$
|
(399)
|
|
(0.7)%
|
|
|
$
|
(7,968)
|
|
|
(13.2)%
|
|
|
$
|
650
|
|
0.4
|
%
|
|
$
|
(15,209)
|
|
(7.2)%
|
|
Depreciation and
amortization of property, plant
and equipment
|
1,404
|
|
|
|
1,668
|
|
|
|
|
4,540
|
|
|
|
5,044
|
|
|
Interest
|
(35)
|
|
|
|
(53)
|
|
|
|
|
(140)
|
|
|
|
(97)
|
|
|
Share-based
compensation
|
565
|
|
|
|
460
|
|
|
|
|
1,511
|
|
|
|
1,382
|
|
|
Restructuring
charges
|
111
|
|
|
|
804
|
|
|
|
|
343
|
|
|
|
859
|
|
|
Nigeria FX (income)
loss on dividend receivable
|
10
|
|
|
|
—
|
|
|
|
|
218
|
|
|
|
—
|
|
|
WTM inventory
write-down recovery
|
(48)
|
|
|
|
—
|
|
|
|
|
(131)
|
|
|
|
—
|
|
|
Performance bond
expense
|
—
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
—
|
|
|
Gain on liquidation
of subsidiary
|
(349)
|
|
|
|
—
|
|
|
|
|
(349)
|
|
|
|
—
|
|
|
Provision for income
taxes
|
779
|
|
|
|
361
|
|
|
|
|
(826)
|
|
|
|
856
|
|
|
Adjusted EBITDA
attributable to Aviat
Networks
|
$
|
2,038
|
|
3.5
|
%
|
|
$
|
(4,728)
|
|
|
(7.8)%
|
|
|
$
|
6,181
|
|
3.3
|
%
|
|
$
|
(7,165)
|
|
(3.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
The adjustments above
reconcile our GAAP financial results to the non-GAAP financial
measures used by us. Our non-GAAP income (loss) from continuing
operations attributable to Aviat Networks 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 the GAAP (loss) income from continuing operations
attributable to Aviat Networks. 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 2017 Third
Quarter Summary SUPPLEMENTAL SCHEDULE OF REVENUE BY
GEOGRAPHICAL AREA (Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
March
31,
2017
|
|
April 1,
2016
|
|
March
31,
2017
|
|
April 1,
2016
|
|
(In
thousands)
|
North
America
|
$
|
29,188
|
|
|
$
|
27,151
|
|
|
$
|
97,125
|
|
|
$
|
94,215
|
|
International:
|
|
|
|
|
|
|
|
Africa and Middle
East
|
17,335
|
|
|
18,178
|
|
|
48,454
|
|
|
69,169
|
|
Europe and
Russia
|
4,012
|
|
|
4,383
|
|
|
11,329
|
|
|
16,442
|
|
Latin America and
Asia Pacific
|
8,165
|
|
|
10,755
|
|
|
28,535
|
|
|
30,612
|
|
|
29,512
|
|
|
33,316
|
|
|
$
|
88,318
|
|
|
$
|
116,223
|
|
Total
Revenue
|
$
|
58,700
|
|
|
$
|
60,467
|
|
|
$
|
185,443
|
|
|
$
|
210,438
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aviat-networks-announces-third-quarter-of-fiscal-2017-financial-results-300455327.html
SOURCE Aviat Networks