Aviat Networks Announces Fiscal 2025 First Quarter and Three Month Financial Results
Aviat Networks (AVNW) reported fiscal 2025 first quarter results with total revenue of $88.4 million, up 1.7% year-over-year. The company posted a GAAP net loss of $(11.9) million, or $(0.94) per share, and adjusted EBITDA of $(7.7) million. North America revenue decreased by 23% to $42.2 million, while International revenue grew 44.1% to $46.2 million. Gross margin declined to 22.4% GAAP and 23.2% non-GAAP. The company updated its fiscal 2025 guidance, projecting revenue between $430-470 million and adjusted EBITDA between $30-40 million.
Aviat Networks (AVNW) ha riportato i risultati del primo trimestre fiscale 2025, con un fatturato totale di 88,4 milioni di dollari, in aumento dell'1,7% rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di $(11,9) milioni, ovvero $(0,94) per azione, e un EBITDA rettificato di $(7,7) milioni. I ricavi del Nord America sono diminuiti del 23% a $42,2 milioni, mentre i ricavi internazionali sono aumentati del 44,1% a $46,2 milioni. Il margine lordo è sceso al 22,4% GAAP e al 23,2% non-GAAP. L'azienda ha aggiornato le previsioni fiscali per il 2025, prevedendo ricavi tra $430-470 milioni e un EBITDA rettificato tra $30-40 milioni.
Aviat Networks (AVNW) informó los resultados del primer trimestre fiscal 2025, con ingresos totales de 88,4 millones de dólares, un aumento del 1,7% en comparación con el año anterior. La empresa registró una pérdida neta GAAP de $(11,9) millones, es decir, $(0,94) por acción, y un EBITDA ajustado de $(7,7) millones. Los ingresos de América del Norte disminuyeron un 23% a $42,2 millones, mientras que los ingresos internacionales crecieron un 44,1% a $46,2 millones. El margen bruto cayó al 22,4% GAAP y al 23,2% no GAAP. La empresa actualizó su guía fiscal para 2025, proyectando ingresos entre $430-470 millones y un EBITDA ajustado entre $30-40 millones.
Aviat Networks (AVNW)는 2025 회계연도 1분기 실적을 보고하며, 총 수익이 8,840만 달러로 전년 대비 1.7% 증가했다고 발표했습니다. 회사는 GAAP 기준으로 $(1,190만) 달러의 순손실, 즉 주당 $(0.94) 손실을 기록했으며, 조정된 EBITDA는 $(770만) 달러였습니다. 북미 지역의 수익은 23% 감소하여 $4220만에 이르렀고, 반면 국제 수익은 44.1% 증가하여 $4620만에 도달했습니다. 총 매출 이익률은 GAAP 기준으로 22.4%, 비 GAAP 기준으로 23.2%로 감소했습니다. 회사는 2025 회계연도 가이던스를 업데이트하여 수익을 $4억 3천~4억 7천만 달러, 조정된 EBITDA를 $3천만~4천만 달러 사이로 예상했습니다.
Aviat Networks (AVNW) a annoncé les résultats du premier trimestre de l'exercice 2025, avec un revenu total de 88,4 millions de dollars, en hausse de 1,7% par rapport à l'année précédente. L'entreprise a enregistré une perte nette GAAP de $(11,9) millions, soit $(0,94) par action, et un EBITDA ajusté de $(7,7) millions. Les revenus d'Amérique du Nord ont diminué de 23% à 42,2 millions de dollars, tandis que les revenus internationaux ont augmenté de 44,1% à 46,2 millions de dollars. La marge brute a chuté à 22,4% GAAP et 23,2% non-GAAP. L'entreprise a mis à jour ses prévisions pour l'exercice 2025, projetant un revenu entre 430 et 470 millions de dollars et un EBITDA ajusté entre 30 et 40 millions de dollars.
Aviat Networks (AVNW) hat die Ergebnisse für das erste Quartal des Geschäftsjahres 2025 bekanntgegeben, mit einem Gesamtumsatz von 88,4 Millionen US-Dollar, was einem Anstieg von 1,7% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von $(11,9) Millionen, also $(0,94) pro Aktie, sowie ein angepasstes EBITDA von $(7,7) Millionen. Der Umsatz in Nordamerika sank um 23% auf 42,2 Millionen US-Dollar, während der internationale Umsatz um 44,1% auf 46,2 Millionen US-Dollar stieg. Die Bruttomarge fiel auf 22,4% GAAP und 23,2% non-GAAP. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet einen Umsatz zwischen 430 und 470 Millionen US-Dollar sowie ein angepasstes EBITDA zwischen 30 und 40 Millionen US-Dollar.
- Revenue increased 1.7% year-over-year to $88.4 million
- International revenue grew 44.1% to $46.2 million
- Secured first order for new Aprisa 5G cellular router
- GAAP net loss of $(11.9) million compared to net income of $3.6 million last year
- Adjusted EBITDA declined to $(7.7) million from $8.9 million last year
- North America revenue decreased 23% to $42.2 million
- Gross margin declined significantly to 22.4% from 35.9% year-over-year
- Operating expenses increased 34.4% to $35.4 million
- Cash decreased to $51.0 million from $64.6 million in June 2024
Insights
The Q1 FY2025 results reveal significant challenges for Aviat Networks. The company reported a concerning shift from profitability to loss, with
- Gross margins deteriorated substantially, dropping
13.5% points to22.4% - North American revenue declined
23% , indicating weakness in core markets - Operating expenses increased
34.4% due to acquisitions - Net debt position worsened to
$32.3 million from a previously stronger cash position
The updated guidance of
Total Revenue of
Adjusted EBITDA of
Non-GAAP Diluted Earnings per Share of
First Quarter Highlights
- Continued to gain share of demand in
North America based on FCC filing data - Closed acquisition of 4RF and secured first order for new Aprisa 5G cellular router to a North American utility company
- Began shipping product to recently won state-wide private network customer on the East Coast
First Quarter Financial Highlights
- Total Revenues:
, up$88.4 million 1.7% from the same quarter last year - GAAP Results: Gross Margin
22.4% ; Operating Expenses ; Operating Loss$35.4 million ; Net Loss$(15.6) million ; Net Loss per diluted share ("Net Loss per share")$(11.9) million $(0.94) - Non-GAAP Results: Adjusted EBITDA
; Gross Margin$(7.7) million 23.2% ; Operating Expenses ; Operating Loss$30.0 million ; Net Loss$(9.5) million ; Net Loss per share$(11.1) million $(0.87) - Net cash and cash equivalents:
; cash net of debt:$51.0 million $(32.3) million
Fiscal 2025 First Quarter and Three Months Ended September 27, 2024
Revenues
The Company reported total revenues of
Gross Margins
In the fiscal 2025 first quarter, the Company reported GAAP gross margin of
Operating Expenses
The Company reported GAAP total operating expenses of
Operating Income
The Company reported GAAP operating loss of
Income Taxes
The Company reported GAAP income tax benefit of
Net Income / Net Income Per Share
The Company reported GAAP net loss of
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2025 first quarter was
Balance Sheet Highlights
The Company reported
Fiscal 2025 Full Year Outlook
The Company is updating its fiscal 2025 full year guidance as follows:
- Full year Revenue between
and$430 $470 million - Full year Adjusted EBITDA between
and$30.0 $40.0 million
Conference Call Details
Aviat Networks will host a conference call at 4:30 p.m. Eastern Time (ET) today, November 5, 2024, to discuss its financial and operational results for the fiscal 2025 first quarter ended September 27, 2024. Participating on the call will be Peter Smith, President and Chief Executive Officer; Michael Connaway, 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 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 and access 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 is headquartered in
Forward-Looking Statements
The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between
For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended June 28, 2024 filed with the
Investor Relations:
Andrew Fredrickson
Director, Corporate Development & Investor Relations
Phone: (512) 582-4626
Email: andrew.fredrickson@aviatnet.com
Table 1 AVIAT NETWORKS, INC. Fiscal Year 2025 First Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| |||
Three Months Ended | |||
(In thousands, except per share amounts) | September 27, | September 29, | |
Revenues: | |||
Product sales | $ 61,116 | $ 59,545 | |
Services | 27,313 | 27,364 | |
Total revenues | 88,429 | 86,909 | |
Cost of revenues: | |||
Product sales | 52,201 | 36,313 | |
Services | 16,440 | 19,401 | |
Total cost of revenues | 68,641 | 55,714 | |
Gross margin | 19,788 | 31,195 | |
Operating expenses: | |||
Research and development | 10,408 | 6,424 | |
Selling and administrative | 24,948 | 19,237 | |
Restructuring charges | — | 644 | |
Total operating expenses | 35,356 | 26,305 | |
Operating (loss) income | (15,568) | 4,890 | |
Interest expense, net | 1,115 | 99 | |
Other expense, net | 710 | 802 | |
(Loss) income before income taxes | (17,393) | 3,989 | |
(Benefit from) provision for income taxes | (5,514) | 432 | |
Net (loss) income | $ (11,879) | $ 3,557 | |
Net (loss) income per share of common stock outstanding: | |||
Basic | $ (0.94) | $ 0.31 | |
Diluted | $ (0.94) | $ 0.30 | |
Weighted-average shares outstanding: | |||
Basic | 12,646 | 11,574 | |
Diluted | 12,646 | 11,943 |
Table 2 AVIAT NETWORKS, INC. Fiscal Year 2025 First Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
| |||
(In thousands) | September 27, | June 28, | |
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 51,034 | $ 64,622 | |
Accounts receivable, net | 169,002 | 158,013 | |
Unbilled receivables | 94,725 | 90,525 | |
Inventories | 79,559 | 62,267 | |
Assets held for sale | — | 2,720 | |
Other current assets | 32,942 | 27,076 | |
Total current assets | 427,262 | 405,223 | |
Property, plant and equipment, net | 11,883 | 9,480 | |
Goodwill | 15,153 | 8,217 | |
Intangible assets, net | 28,754 | 13,644 | |
Deferred income taxes | 91,317 | 83,112 | |
Right-of-use assets | 3,665 | 3,710 | |
Other assets | 12,823 | 11,837 | |
Total long-term assets | 163,595 | 130,000 | |
Total assets | $ 590,857 | $ 535,223 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 104,926 | $ 92,854 | |
Accrued expenses | 39,137 | 42,148 | |
Short-term lease liabilities | 1,125 | 1,006 | |
Advance payments and unearned revenue | 79,380 | 58,839 | |
Other current liabilities | 21,234 | 21,614 | |
Current portion of long-term debt | 2,395 | 2,396 | |
Total current liabilities | 248,197 | 218,857 | |
Long-term debt | 80,980 | 45,954 | |
Unearned revenue | 7,522 | 7,413 | |
Long-term operating lease liabilities | 2,782 | 2,823 | |
Other long-term liabilities | 407 | 394 | |
Reserve for uncertain tax positions | 3,445 | 3,485 | |
Deferred income taxes | 412 | 412 | |
Total liabilities | 343,745 | 279,338 | |
Commitments and contingencies | |||
Stockholder's equity: | |||
Preferred stock | — | — | |
Common stock | 127 | 126 | |
Treasury stock | (6,479) | (6,479) | |
Additional paid-in-capital | 861,023 | 860,071 | |
Accumulated deficit | (590,392) | (578,513) | |
Accumulated other comprehensive loss | (17,167) | (19,320) | |
Total stockholders' equity | 247,112 | 255,885 | |
Total liabilities and stockholders' equity | $ 590,857 | $ 535,223 |
AVIAT NETWORKS, INC. Fiscal Year 2025 First 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 |
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. |
Table 3 AVIAT NETWORKS, INC. Fiscal Year 2025 First Quarter Summary RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Condensed Consolidated Statements of Operations (Unaudited)
| |||||||
Three Months Ended | |||||||
September 27, | % of Revenue | September 29, | % of Revenue | ||||
(In thousands, except percentages and per share amounts) | |||||||
GAAP gross margin | $ 19,788 | 22.4 % | $ 31,195 | 35.9 % | |||
Share-based compensation | 104 | 183 | |||||
Merger and acquisition and other expenses | 608 | 43 | |||||
Non-GAAP gross margin | 20,500 | 23.2 % | 31,421 | 36.2 % | |||
GAAP research and development expenses | $ 10,408 | 11.8 % | $ 6,424 | 7.4 % | |||
Share-based compensation | (143) | (146) | |||||
Non-GAAP research and development expenses | 10,265 | 11.6 % | 6,278 | 7.2 % | |||
GAAP selling and administrative expenses | $ 24,948 | 28.2 % | $ 19,237 | 22.1 % | |||
Share-based compensation | (1,417) | (1,505) | |||||
Merger and acquisition and other expenses | (3,781) | (146) | |||||
Non-GAAP selling and administrative expenses | 19,750 | 22.3 % | 17,586 | 20.2 % | |||
GAAP operating (loss) income | $ (15,568) | (17.6) % | $ 4,890 | 5.6 % | |||
Share-based compensation | 1,664 | 1,834 | |||||
Merger and acquisition and other expenses | 4,389 | 189 | |||||
Restructuring charges | — | 644 | |||||
Non-GAAP operating (loss) income | (9,515) | (10.8) % | 7,557 | 8.7 % | |||
GAAP income tax (benefit) provision | $ (5,514) | (6.2) % | $ 432 | 0.5 % | |||
Adjustment to reflect pro forma tax rate | 6,014 | (132) | |||||
Non-GAAP income tax provision | 500 | 0.6 % | 300 | 0.3 % | |||
GAAP net (loss) income | $ (11,879) | (13.4) % | $ 3,557 | 4.1 % | |||
Share-based compensation | 1,664 | 1,834 | |||||
Merger and acquisition and other expenses | 4,389 | 189 | |||||
Restructuring charges | — | 644 | |||||
Other expense, net | 710 | 802 | |||||
Adjustment to reflect pro forma tax rate | (6,014) | 132 | |||||
Non-GAAP net (loss) income | $ (11,130) | (12.6) % | $ 7,158 | 8.2 % | |||
Diluted net (loss) income per share: | |||||||
GAAP | $ (0.94) | $ 0.30 | |||||
Non-GAAP | $ (0.87) | $ 0.60 | |||||
Shares used in computing diluted net (loss) income per share | |||||||
GAAP | 12,646 | 11,943 | |||||
Non-GAAP | 12,804 | 11,943 | |||||
Adjusted EBITDA: | |||||||
GAAP net (loss) income | $ (11,879) | (13.4) % | $ 3,557 | 4.1 % | |||
Depreciation and amortization of property, plant and equipment and intangible assets | 1,830 | 1,344 | |||||
Interest expense, net | 1,115 | 99 | |||||
Other expense, net | 710 | 802 | |||||
Share-based compensation | 1,664 | 1,834 | |||||
Merger and acquisition and other expenses | 4,389 | 189 | |||||
Restructuring charges | — | 644 | |||||
(Benefit from) provision for income taxes | (5,514) | 432 | |||||
Adjusted EBITDA | $ (7,685) | (8.7) % | $ 8,901 | 10.2 % |
(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 2025 First Quarter Summary SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA (Unaudited)
| |||
Three Months Ended | |||
September 27, | September 29, | ||
(In thousands) | |||
$ 42,225 | $ 54,853 | ||
International: | |||
10,450 | 9,954 | ||
5,600 | 5,252 | ||
30,154 | 16,850 | ||
Total international | 46,204 | 32,056 | |
Total revenue | $ 88,429 | $ 86,909 |
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SOURCE Aviat Networks, Inc.
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