MILPITAS, Calif., Sept. 6, 2017 /PRNewswire/ -- 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 fourth quarter and
year ended June 30, 2017.
Commenting on the Company's fiscal 2017 results, Michael Pangia, President and Chief Executive
Officer of Aviat Networks stated, "Fiscal 2017 was a transformative
year for Aviat Networks. We successfully realigned our
organizational structure, drove process reforms, and enhanced our
solutions portfolio. All of these initiatives helped drive
significant year-over-year improvements in gross margins, operating
expenses and bottom-line performance. We also strengthened our
market-leading positions, particularly in North America and with private network
customers. Process reforms also enabled us to strengthen our
balance sheet and drive year-over-year improvements across
virtually all key working capital metrics. As we move into fiscal
2018, we are confident that we will continue to build our momentum
and generate further profitability improvements, with the potential
for top-line growth."
Fiscal 2017 vs. Fiscal 2016 Fourth Quarter Results
Comparisons
The Company reported total revenues of $56.4 million for its fiscal 2017 fourth quarter
as compared to $58.3 million in the
comparable fiscal 2016 period, a decline of $1.8 million or 3.1%. The year-over-year decline
is primarily related to lower international revenue offset in part
by an increase in North America
and Latin America revenue.
Additionally, the book to bill ratio was above 1 during the fourth
quarter ended June 30, 2017, driven
by strength in North America.
GAAP gross margins for the fiscal 2017 fourth quarter were 34.1%
as compared to 16.9% in the fiscal 2016 fourth quarter, an
improvement of approximately 1,720 basis points. Non-GAAP gross
margins for the fiscal 2017 fourth quarter were 34.1% as compared
to 25.7% in the fiscal 2016 fourth quarter, an increase of 840
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. The improvement was also driven by
a higher concentration of North
America business as a percentage of revenue.
GAAP total operating expenses for the fiscal 2017 fourth quarter
were $19.9 million as compared to
$23.1 million reported in the fiscal
2016 fourth quarter, a reduction of $3.2
million or 13.9%. Non-GAAP total operating expenses for the
fiscal 2017 fourth quarter, excluding the impact of restructuring
charges and share-based compensation, were $19.1 million as compared to $21.1 million reported in the fiscal 2016 fourth
quarter, a reduction of $2.0 million
or 9.4%. The improvements in both GAAP and Non-GAAP operating
expenses were driven by operational efficiencies and continued
reductions in overhead expenses. Additionally, as it relates to
prior guidance, the Company incurred higher engineering costs in
support of new product introductions, among other factors.
GAAP operating loss was $0.6
million for the fiscal 2017 fourth quarter as compared to a
GAAP operating loss of $13.3 million
for the comparable fiscal 2016 period, an improvement of
$12.6 million. Non-GAAP operating
income was $0.2 million for the
fiscal 2017 fourth quarter as compared to a Non-GAAP operating loss
of $6.1 million for the comparable
fiscal 2016 period, an improvement of $6.3
million. The Company reported a GAAP net loss from
continuing operations attributable to Aviat Networks of
$1.5 million or a loss of
$0.28 per diluted share and a
Non-GAAP loss from continuing operations attributable to Aviat
Networks of $0.1 million or a loss of
$0.03 per diluted share. This
compares to a GAAP loss from continuing operations attributable to
Aviat Networks of $15.2 million or a
loss of $2.90 per diluted share for
the comparable year-ago period and a Non-GAAP loss from continuing
operations attributable to Aviat Networks of $6.4 million or a loss of $1.22 per diluted share for the comparable fiscal
2016 period.
Adjusted EBITDA for the fiscal 2017 fourth quarter was
$1.4 million, compared with an
Adjusted EBITDA loss of $4.6 million
in the comparable fiscal 2016 period, an improvement of
$5.9 million.
Cash and cash equivalents were $35.7
million as of June 30, 2017 as compared to $30.5 million as of July
1, 2016, an improvement of $5.2
million. Cash and cash equivalents, net of a $1.0 million increase in borrowing, declined by
approximately $4.3 million when
compared against the fiscal 2017 third quarter ended March 31, 2017, which is primarily due to timing
associated with payments from two customers.
Fiscal 2017 vs. Fiscal 2016 Full-Year Results
Comparisons
- Total revenues of $241.9 million
represent a decline of $26.8 million or 10.0% from fiscal 2016. Within
this, international revenues declined as anticipated, while
North America revenues increased
by $6.6 million or 5.3%.
Additionally, the book to bill ratio was above 1 during the fourth
quarter ended June 30, 2017, driven
by continued strength in North
America.
- GAAP gross margins were 31.2% as compared to 23.0%, an
improvement of approximately 820 basis points. Non-GAAP gross
margins were 31.4% as compared to 24.9%, an increase of 650 basis
points.
- GAAP total operating expenses were $76.5
million as compared to $89.2
million, a reduction of $12.7
million or 14.3%. Non-GAAP total operating expenses,
excluding the impact of share-based compensation, were $74.0 million as compared to $85.0 million in fiscal 2016, a reduction of
$11.1 million or 13.0%.
- GAAP operating loss was $1.0
million as compared to a GAAP operating loss of $27.4 million, an improvement of $26.5 million. Non-GAAP operating income was
$1.9 million as compared to a
Non-GAAP operating loss of $18.1
million, an improvement of $20.0
million.
- GAAP net loss from continuing operations attributable to Aviat
Networks of $0.8 million or a loss of
$0.16 per diluted share. This
compares to a 2016 GAAP net loss from continuing operations
attributable to Aviat Networks of $30.4
million or a loss of $5.81 per
diluted share. GAAP net loss improved by $29.6 million year-over-year.
- Non-GAAP income from continuing operations attributable to
Aviat Networks of $0.7 million or
income of $0.14 per diluted share.
This compares to a fiscal 2016 Non-GAAP loss from continuing
operations attributable to Aviat Networks of $19.4 million or a loss of $3.71 per diluted share. Non-GAAP income improved
by $20.2 million year-over-year.
- Adjusted EBITDA was $7.6 million
compared with an Adjusted EBITDA loss of $11.7 million in fiscal year 2016, an improvement
of $19.3 million year-over-year.
Mr. Pangia continued, "Approximately a year ago, we embarked on
a strategic process to explore avenues that would help us improve
our market position and, ultimately, valuation. We have looked at
multiple options and over the past quarter, we have narrowed this
down further and are now in the later stages of the process. Our
goal is to ensure that we structure the best outcome for our
Company and our shareholders, both near- and long-term."
Fiscal 2018 First Quarter Outlook
The Company anticipates revenue to be in the range of
$57.0 million to $60.0 million for
the first quarter of fiscal 2018. Non-GAAP gross margins are
anticipated to be between 30.0% and 31.0% for the first quarter of
fiscal 2018, and Non-GAAP operating expenses are expected to be in
the range of $18.2 million to $18.5
million for the first quarter of fiscal 2018, with the range
dependent upon the top-line. This would result in positive Adjusted
EBITDA in the range of $0.5 million to $1.0
million for the first quarter of fiscal 2018.
Fiscal 2018 Full Year Outlook
The Company anticipates revenue to be in the range of
$245.0 million to $260.0 million,
which would equate to a 1.0 % to 8.0% increase year-over-year. For
fiscal year 2018, Non-GAAP gross margin is expected to be
approximately in the range of 31.5% to 32.5% and Non-GAAP operating
expenses are expected to be in the range of $72.0 million to $75.0 million. The Company
further anticipates that if revenues come in on the low-end of the
range, gross margins and spending will be at the more favorable end
of the ranges provided, thus resulting in non-GAAP operating income
of approximately $5.0 million to $7.0
million for fiscal year 2018. Similarly, this would result
in positive Adjusted EBITDA of approximately $11.0 million to $13.0 million for fiscal year
2018, representing a 45.0% to 71.0% increase year-over-year.
A reconciliation of GAAP to Non-GAAP financial measures for the
fourth 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 September 6, 2017 to discuss its financial
results. To listen to the live conference call, please dial toll
free (US/CAN) (866) 562-9910, (INTL) (661) 378-9805, conference ID:
74448508. 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 loss,
income tax provision, loss from continuing operations attributable
to Aviat Networks, diluted net loss 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
its 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 Networks with their critical applications. Coupled with
a long history of microwave innovations, Aviat Networks 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 Networks
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 2018, 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 6, 2017 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
Financial Tables to Follow:
Table
1
AVIAT NETWORKS,
INC.
Fiscal Year 2017
Fourth Quarter Summary
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
June 30,
2017
|
|
July 1,
2016
|
|
June 30,
2017
|
|
July 1,
2016
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenue from product
sales
|
|
$
|
33,736
|
|
|
$
|
33,225
|
|
|
$
|
153,517
|
|
|
$
|
167,827
|
|
Revenue from
services
|
|
22,695
|
|
|
25,027
|
|
|
88,357
|
|
|
100,863
|
|
Total
revenues
|
|
56,431
|
|
|
58,252
|
|
|
241,874
|
|
|
268,690
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Cost of product
sales
|
|
22,409
|
|
|
29,765
|
|
|
105,183
|
|
|
128,727
|
|
Cost of
services
|
|
14,763
|
|
|
18,618
|
|
|
61,219
|
|
|
78,246
|
|
Total cost of
revenues
|
|
37,172
|
|
|
48,383
|
|
|
166,402
|
|
|
206,973
|
|
Gross
margin
|
|
19,259
|
|
|
9,869
|
|
|
75,472
|
|
|
61,717
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development expenses
|
|
5,002
|
|
|
5,057
|
|
|
18,684
|
|
|
20,806
|
|
Selling and
administrative expenses
|
|
14,657
|
|
|
16,472
|
|
|
57,184
|
|
|
65,902
|
|
Restructuring
charges
|
|
246
|
|
|
1,596
|
|
|
589
|
|
|
2,455
|
|
Total operating
expenses
|
|
19,905
|
|
|
23,125
|
|
|
76,457
|
|
|
89,163
|
|
Operating
loss
|
|
(646)
|
|
|
(13,256)
|
|
|
(985)
|
|
|
(27,446)
|
|
Interest
income
|
|
93
|
|
|
64
|
|
|
261
|
|
|
252
|
|
Interest
expense
|
|
(22)
|
|
|
(13)
|
|
|
(50)
|
|
|
(104)
|
|
Other income
(expense)
|
|
5
|
|
|
(1,245)
|
|
|
169
|
|
|
(1,245)
|
|
Loss from
continuing operations before income taxes
|
|
(570)
|
|
|
(14,450)
|
|
|
(605)
|
|
|
(28,543)
|
|
Provision for income
taxes
|
|
842
|
|
|
779
|
|
|
16
|
|
|
1,635
|
|
Loss from
continuing operations
|
|
(1,412)
|
|
|
(15,229)
|
|
|
(621)
|
|
|
(30,178)
|
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
88
|
|
|
—
|
|
|
541
|
|
Net
loss
|
|
(1,412)
|
|
|
(15,141)
|
|
|
(621)
|
|
|
(29,637)
|
|
Less: Net income
attributable to noncontrolling interests, net of tax
|
|
61
|
|
|
10
|
|
|
202
|
|
|
270
|
|
Net loss
attributable to Aviat Networks
|
|
$
|
(1,473)
|
|
|
$
|
(15,151)
|
|
|
$
|
(823)
|
|
|
$
|
(29,907)
|
|
|
|
|
|
|
|
|
|
|
Amount
attributable to Aviat Networks
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations, net of tax
|
|
$
|
(1,473)
|
|
|
$
|
(15,239)
|
|
|
$
|
(823)
|
|
|
$
|
(30,448)
|
|
Net income from
discontinued operations, net of tax
|
|
$
|
—
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
541
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per share attributable to Aviat Networks' common
stockholders:
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.28)
|
|
|
$
|
(2.90)
|
|
|
$
|
(0.16)
|
|
|
$
|
(5.81)
|
|
Discontinued
operations
|
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.10
|
|
Net loss
|
|
$
|
(0.28)
|
|
|
$
|
(2.88)
|
|
|
$
|
(0.16)
|
|
|
$
|
(5.71)
|
|
Weighted average
shares outstanding, basic and diluted
|
|
5,314
|
|
|
5,259
|
|
|
5,292
|
|
|
5,238
|
|
Table
2
AVIAT NETWORKS,
INC.
Fiscal Year 2017
Fourth Quarter Summary
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
|
|
|
|
|
(In thousands)
|
June 30,
2017
|
|
July 1,
2016
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
35,658
|
|
|
$
|
30,479
|
|
Restricted
cash
|
541
|
|
|
558
|
|
Short-term
investments
|
264
|
|
|
222
|
|
Accounts receivable,
net
|
45,945
|
|
|
63,449
|
|
Unbilled
receivables
|
12,110
|
|
|
5,117
|
|
Inventories
|
21,794
|
|
|
27,293
|
|
Customer service
inventories
|
1,871
|
|
|
3,064
|
|
Other current
assets
|
6,402
|
|
|
10,232
|
|
Total current
assets
|
124,585
|
|
|
140,414
|
|
Property, plant and
equipment, net
|
16,406
|
|
|
18,162
|
|
Deferred income
taxes
|
6,178
|
|
|
6,068
|
|
Other
assets
|
5,407
|
|
|
1,467
|
|
Total long-term
assets
|
27,991
|
|
|
25,697
|
|
TOTAL
ASSETS
|
$
|
152,576
|
|
|
$
|
166,111
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Short-term
debt
|
$
|
9,000
|
|
|
$
|
9,000
|
|
Accounts
payable
|
33,606
|
|
|
33,217
|
|
Accrued
expenses
|
21,933
|
|
|
23,205
|
|
Advance payments and
unearned income
|
20,004
|
|
|
30,615
|
|
Restructuring
liabilities
|
1,475
|
|
|
3,910
|
|
Total current
liabilities
|
86,018
|
|
|
99,947
|
|
Unearned
income
|
7,062
|
|
|
8,387
|
|
Other long-term
liabilities
|
1,022
|
|
|
1,409
|
|
Reserve for uncertain
tax positions
|
2,453
|
|
|
1,414
|
|
Deferred income
taxes
|
1,681
|
|
|
1,497
|
|
Total
liabilities
|
98,236
|
|
|
112,654
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
53
|
|
|
53
|
|
Additional
paid-in-capital
|
813,733
|
|
|
811,601
|
|
Accumulated
deficit
|
(748,204)
|
|
|
(747,381)
|
|
Accumulated other
comprehensive loss
|
(11,785)
|
|
|
(11,157)
|
|
Total Aviat Networks
stockholders' equity
|
53,797
|
|
|
53,116
|
|
Noncontrolling
interests
|
543
|
|
|
341
|
|
Total
equity
|
54,340
|
|
|
53,457
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
|
152,576
|
|
|
$
|
166,111
|
|
AVIAT NETWORKS, INC.
Quarter Ended June 30, 2017
Summaries
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 loss, income tax provision, loss from continuing
operations attributable to Aviat Networks, diluted loss per share
from continuing operations attributable to Aviat Networks'
stockholders, and adjusted losses 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
Fourth Quarter Summary
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (1)
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
|
|
June 30,
2017
|
|
% of
Revenue
|
|
July 1,
2016
|
|
% of
Revenue
|
|
June 30,
2017
|
|
% of
Revenue
|
|
July 1,
2016
|
|
% of
Revenue
|
|
|
(In thousands, except
percentages and per share amounts)
|
GAAP gross
margin
|
|
$
|
19,259
|
|
|
34.1
|
%
|
|
$
|
9,869
|
|
|
16.9
|
%
|
|
$
|
75,472
|
|
|
31.2
|
%
|
|
$
|
61,717
|
|
|
23.0
|
%
|
WTM inventory
(recovery) write-down
|
|
(45)
|
|
|
|
|
5,057
|
|
|
|
|
(176)
|
|
|
|
|
5,057
|
|
|
|
Performance bond
expense
|
|
—
|
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
|
—
|
|
|
|
Share-based
compensation
|
|
57
|
|
|
|
|
28
|
|
|
|
|
208
|
|
|
|
|
154
|
|
|
|
Non-GAAP gross
margin
|
|
19,271
|
|
|
34.1
|
%
|
|
14,954
|
|
|
25.7
|
%
|
|
75,869
|
|
|
31.4
|
%
|
|
66,928
|
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
|
$
|
5,002
|
|
|
8.9
|
%
|
|
$
|
5,057
|
|
|
8.7
|
%
|
|
$
|
18,684
|
|
|
7.7
|
%
|
|
$
|
20,806
|
|
|
7.7
|
%
|
Share-based
compensation
|
|
(39)
|
|
|
|
|
(19)
|
|
|
|
|
(138)
|
|
|
|
|
(110)
|
|
|
|
Non-GAAP research
and development expenses
|
|
4,963
|
|
|
8.8
|
%
|
|
5,038
|
|
|
8.6
|
%
|
|
18,546
|
|
|
7.7
|
%
|
|
20,696
|
|
|
7.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative expenses
|
|
$
|
14,657
|
|
|
26.0
|
%
|
|
$
|
16,472
|
|
|
28.3
|
%
|
|
$
|
57,184
|
|
|
23.6
|
%
|
|
$
|
65,902
|
|
|
24.5
|
%
|
Share-based
compensation
|
|
(504)
|
|
|
|
|
(407)
|
|
|
|
|
(1,765)
|
|
|
|
|
(1,572)
|
|
|
|
Non-GAAP selling
and administrative expenses
|
|
14,153
|
|
|
25.1
|
%
|
|
16,065
|
|
|
27.6
|
%
|
|
55,419
|
|
|
22.9
|
%
|
|
64,330
|
|
|
23.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
|
$
|
(646)
|
|
|
(1.1)%
|
|
|
$
|
(13,256)
|
|
|
(22.8)%
|
|
|
$
|
(985)
|
|
|
(0.4)%
|
|
|
$
|
(27,446)
|
|
|
(10.2)%
|
|
WTM inventory
(recovery) write-down
|
|
(45)
|
|
|
|
|
5,057
|
|
|
|
|
(176)
|
|
|
|
|
5,057
|
|
|
|
Performance bond
expense
|
|
—
|
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
|
—
|
|
|
|
Share-based
compensation
|
|
600
|
|
|
|
|
454
|
|
|
|
|
2,111
|
|
|
|
|
1,836
|
|
|
|
Restructuring
charges
|
|
246
|
|
|
|
|
1,596
|
|
|
|
|
589
|
|
|
|
|
2,455
|
|
|
|
Non-GAAP operating
income (loss)
|
|
155
|
|
|
0.3
|
%
|
|
(6,149)
|
|
|
(10.6)%
|
|
|
1,904
|
|
|
0.8
|
%
|
|
(18,098)
|
|
|
(6.7)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision
|
|
$
|
842
|
|
|
1.5
|
%
|
|
$
|
779
|
|
|
1.3
|
%
|
|
$
|
16
|
|
|
—
|
%
|
|
$
|
1,635
|
|
|
0.6
|
%
|
Tax refund from
Inland Revenue Authority of Singapore
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,741
|
|
|
|
|
—
|
|
|
|
Adjustment to reflect
pro forma tax rate
|
|
(542)
|
|
|
|
|
(479)
|
|
|
|
|
(2,557)
|
|
|
|
|
(435)
|
|
|
|
Non-GAAP income
tax provision
|
|
300
|
|
|
0.5
|
%
|
|
300
|
|
|
0.5
|
%
|
|
1,200
|
|
|
0.5
|
%
|
|
1,200
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
continuing operations attributable to Aviat Networks
|
|
$
|
(1,473)
|
|
|
(2.6)%
|
|
|
$
|
(15,239)
|
|
|
(26.2)%
|
|
|
$
|
(823)
|
|
|
(0.3)%
|
|
|
$
|
(30,448)
|
|
|
(11.3)%
|
|
Share-based
compensation
|
|
600
|
|
|
|
|
454
|
|
|
|
|
2,111
|
|
|
|
|
1,836
|
|
|
|
Restructuring
charges
|
|
246
|
|
|
|
|
1,596
|
|
|
|
|
589
|
|
|
|
|
2,455
|
|
|
|
Nigeria FX (gain)
loss on dividend receivable
|
|
(5)
|
|
|
|
|
1,245
|
|
|
|
|
213
|
|
|
|
|
1,245
|
|
|
|
WTM inventory
(recovery) write-down
|
|
(45)
|
|
|
|
|
5,057
|
|
|
|
|
(176)
|
|
|
|
|
5,057
|
|
|
|
Performance bond
expense
|
|
—
|
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
|
—
|
|
|
|
Gain on liquidation
of subsidiary
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(349)
|
|
|
|
|
—
|
|
|
|
Tax refund from
Inland Revenue Authority of Singapore
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(3,741)
|
|
|
|
|
—
|
|
|
|
Adjustment to reflect
pro forma tax rate
|
|
542
|
|
|
|
|
479
|
|
|
|
|
2,557
|
|
|
|
|
435
|
|
|
|
Non-GAAP (loss)
income from continuing operations attributable to Aviat
Networks
|
|
$
|
(135)
|
|
|
(0.2)%
|
|
|
$
|
(6,408)
|
|
|
(11.0)%
|
|
|
$
|
746
|
|
|
0.3
|
%
|
|
$
|
(19,420)
|
|
|
(7.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income
(loss) per share from continuing operations attributable to Aviat
Networks' stockholders:
|
GAAP
|
|
$
|
(0.28)
|
|
|
|
|
$
|
(2.90)
|
|
|
|
|
$
|
(0.16)
|
|
|
|
|
$
|
(5.81)
|
|
|
|
Non-GAAP
|
|
$
|
(0.03)
|
|
|
|
|
$
|
(1.22)
|
|
|
|
|
$
|
0.14
|
|
|
|
|
$
|
(3.71)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding, diluted:
|
GAAP
|
|
5,314
|
|
|
|
|
5,259
|
|
|
|
|
5,292
|
|
|
|
|
5,238
|
|
|
|
Non-GAAP
|
|
5,314
|
|
|
|
|
5,259
|
|
|
|
|
5,450
|
|
|
|
|
5,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
continuing operations attributable to Aviat Networks
|
|
$
|
(1,473)
|
|
|
(2.6)%
|
|
|
$
|
(15,239)
|
|
|
(26.2)%
|
|
|
$
|
(823)
|
|
|
(0.3)%
|
|
|
$
|
(30,448)
|
|
|
(11.3)%
|
|
Depreciation and
amortization of property, plant and equipment
|
|
1,300
|
|
|
|
|
1,604
|
|
|
|
|
5,840
|
|
|
|
|
6,648
|
|
|
|
Interest
|
|
(71)
|
|
|
|
|
(51)
|
|
|
|
|
(211)
|
|
|
|
|
(148)
|
|
|
|
Share-based
compensation
|
|
600
|
|
|
|
|
454
|
|
|
|
|
2,111
|
|
|
|
|
1,836
|
|
|
|
Restructuring
charges
|
|
246
|
|
|
|
|
1,596
|
|
|
|
|
589
|
|
|
|
|
2,455
|
|
|
|
Nigeria FX (gain)
loss on dividend receivable
|
|
(5)
|
|
|
|
|
1,245
|
|
|
|
|
213
|
|
|
|
|
1,245
|
|
|
|
WTM inventory
(recovery) write-down
|
|
(45)
|
|
|
|
|
5,057
|
|
|
|
|
(176)
|
|
|
|
|
5,057
|
|
|
|
Performance bond
expense
|
|
—
|
|
|
|
|
—
|
|
|
|
|
365
|
|
|
|
|
—
|
|
|
|
Gain on liquidation
of subsidiary
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(349)
|
|
|
|
|
—
|
|
|
|
Provision for income
taxes
|
|
842
|
|
|
|
|
779
|
|
|
|
|
16
|
|
|
|
|
1,635
|
|
|
|
Adjusted EBITDA
attributable to Aviat Networks
|
|
$
|
1,394
|
|
|
2.5
|
%
|
|
$
|
(4,555)
|
|
|
(7.8)%
|
|
|
$
|
7,575
|
|
|
3.1
|
%
|
|
$
|
(11,720)
|
|
|
(4.4)%
|
|
_____________________________________________________
(1) The adjustments above
reconcile our GAAP financial results to the non-GAAP financial
measures used by us. Our non-GAAP (loss) income from continuing
operations attributable to Aviat Networks excluded share-based
compensation and other non-recurring charges (recovery). Adjusted
EBITDA attributable to Aviat Networks was determined by excluding
depreciation and amortization on property, plant and equipment,
interest, provision for income taxes, and non-GAAP pre-tax
adjustments, as set forth above, from the GAAP loss 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
Fourth Quarter Summary
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Fiscal Year
Ended
|
(In
thousands)
|
|
June 30,
2017
|
|
July 1,
2016
|
|
June 30,
2017
|
|
July 1,
2016
|
North
America
|
|
$
|
34,953
|
|
|
$
|
31,267
|
|
|
$
|
132,078
|
|
|
$
|
125,482
|
|
International:
|
|
|
|
|
|
|
|
|
Africa and Middle
East
|
|
11,696
|
|
|
13,573
|
|
|
60,150
|
|
|
82,742
|
|
Europe and
Russia
|
|
2,799
|
|
|
4,097
|
|
|
14,128
|
|
|
20,539
|
|
Latin America and
Asia Pacific
|
|
6,983
|
|
|
9,315
|
|
|
35,518
|
|
|
39,927
|
|
|
|
21,478
|
|
|
26,985
|
|
|
109,796
|
|
|
143,208
|
|
Total
Revenue
|
|
$
|
56,431
|
|
|
$
|
58,252
|
|
|
$
|
241,874
|
|
|
$
|
268,690
|
|
View original
content:http://www.prnewswire.com/news-releases/aviat-networks-announces-fiscal-2017-fourth-quarter-and-year-end-financial-results-300515089.html
SOURCE Aviat Networks