SANTA CLARA, Calif.,
Aug. 12 /PRNewswire-FirstCall/ --
Aviat Networks, Inc. ("Aviat," Nasdaq: AVNW), a leading wireless
expert in advanced IP network migration, today announced that it is
implementing a corporate restructuring plan to reduce operating
costs, restore profitability and establish a platform to drive
sustainable revenue growth.
The Company expects to realize a reduction in annual spending of
$30 to $35 million as a result of a
number of actions. In connection with the restructuring plan, Aviat
Networks will incur pre-tax restructuring charges currently
estimated to be approximately $11 to $13
million related to severance costs as well as impairment of
facilities and other assets. The Company expects to record these
charges in fiscal 2011. Aviat Networks believes that the
restructuring will have no long term impact on the Company's
ability to generate revenue.
As part of its restructuring plan, Aviat Networks plans to
reduce its global workforce and consolidate its global presence by
closing and/or relocating select facilities. The workforce
reduction will be achieved through severance programs and
attrition, with most of the key actions occurring in the first and
second quarters of fiscal 2011. Prior to this announcement,
the Company had already ceased manufacturing operations in
San Antonio, and had begun
consolidating operations in India
and in China. In addition,
the Company is implementing certain changes in its processes
designed to enhance responsiveness to customers and to accelerate
decision-making.
"Our Board has been focused for some time on actions to reduce
costs, refocus the product portfolio to match current customer
needs, and optimize our business model," said Chuck Kissner, recently appointed Chairman and
CEO of Aviat Networks. "The restructuring program that we
are announcing today is an important step for the Company as we
work to restore profitability and focus our programs to drive
sustainable revenue growth. This was a difficult decision for
our management team and Board given the significant contributions
made by all of our employees in expanding Aviat Networks' presence
in recent years. However, the actions we are taking are clearly
necessary as we look to improve our business fundamentals and drive
shareholder value."
"Cost reductions are the first step in improving Aviat Networks'
performance. As we look ahead, we will focus on maintaining
an efficient cost structure, concentrating on the right product
portfolio and optimizing our business model. As we previewed in our
prior release, we will discuss the key actions we plan to implement
upon completion of our comprehensive strategic plan during our next
earnings call. We remain committed to driving sustainable,
profitable growth and enhanced shareholder value through innovation
and operational excellence," Kissner concluded.
The Company will provide more details of the restructuring
announcement including the effects on the financial model, on its
regularly scheduled earnings call, which it plans to host in late
August 2010. All savings and
charges indicated in this press release are estimates and subject
to change.
About Aviat Networks, Inc.
Aviat Networks, Inc. (NASDAQ: AVNW), previously known as Harris
Stratex Networks, Inc. is a leading wireless expert in advanced IP
network migration, building the foundation for the 4G/LTE broadband
future. We offer best-of-breed transformational wireless solutions,
including LTE-ready microwave backhaul, WiMAX access and a complete
portfolio of essential service options that enable wireless public
and private telecommunications operators to deliver advanced data,
voice and video and mobility services around the world. Aviat
Networks is agile and adaptive to anticipate what's coming to help
our customers make the right choices, and our products and services
are designed for flexible evolution, no matter what the future
brings. With global reach and local presence on the ground we work
by the side of our customers, allowing them to quickly and cost
effectively seize new market and service opportunities, while
managing migration toward an all-IP future. For more information,
please visit www.aviatnetworks.com or join the dialogue at
www.twitter.com/aviatnetworks.
Forward-Looking Statements
The information contained in this document includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 21E of the
Securities Exchange Act and Section 27A of the Securities Act. All
statements, trend analyses and other information contained herein
about the markets for the services and products of Aviat Networks
and trends in revenue, as well as other statements identified by
the use of forward-looking terminology, including "anticipated",
"believe", "plan", "estimate", "expect", "goal", "will", "see",
"continues", "delivering", "view", and "intend", or the negative of
these terms or other similar expressions, constitute
forward-looking statements. These forward-looking statements are
based on estimates reflecting the current beliefs of the senior
management of Aviat Networks. These 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. Important factors that
could cause actual results to differ materially from estimates or
projections contained in the forward-looking statements include the
following:
- continued weakness in the global economy affecting customer
spending;
- continued price erosion as a result of increased competition
in the microwave transmission industry;
- the volume, timing and customer, product and geographic mix
of our product orders may have an impact on our operating
results;
- the ability to maintain projected product rollouts, product
functionality, anticipated cost reductions or market acceptance of
planned products;
- the ability to retain key personnel;
- the ability to achieve business plans for Aviat
Networks;
- the ability to manage and maintain key customer
relationships;
- uncertain economic conditions in the telecommunications
sector combined with operator and supplier consolidation which
makes it difficult to estimate growth;
- future costs or expenses related to litigation;
- the ability of our subcontractors to perform or our key
suppliers to manufacture or deliver material;
- customers may not pay for products or services in a timely
manner, or at all;
- the failure of Aviat Networks to protect its intellectual
property rights and its ability to defend itself against
intellectual property infringement claims by others;
- currency and interest rate risks;
- the impact of political, economic and geographic risks on
international sales.
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 4, 2009 as well as other reports filed
by Aviat Networks, Inc., previously known as Harris Stratex
Networks, Inc., with the SEC from time to time. Aviat Networks
undertakes no obligation to update publicly any forward-looking
statement for any reason, except as required by law, even as new
information becomes available or other events occur in the
future.
SOURCE Aviat Networks, Inc.
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