SANTA CLARA, Calif.,
Feb. 3, 2011 /PRNewswire/ -- Aviat
Networks, Inc. (Nasdaq: AVNW), a leading expert in wireless
transmission solutions, today reported financial results for the
second quarter fiscal year 2011, which ended December 31, 2010.
Revenue for the second quarter of fiscal 2011 was $124.2 million, compared with $122.6 million in the year ago period. Net
loss was $12.5 million, or
$(0.21) per share, compared with a
net loss of $7.9 million, or
$(0.13) per share, in the year ago
quarter.
Cash and cash equivalents were $102.4
million as of December 31,
2010, compared with $107.8
million as of the end of the prior quarter.
Non-GAAP Financial Results
Non-GAAP net income for the quarter was breakeven or
$0.00 per share, compared with a
non-GAAP net income of $0.8 million,
or $0.01 per share, in the year ago
quarter.
Non-GAAP results for the quarter exclude $7.2 million of pre-tax charges primarily
composed of the following:
- $4.0 million of restructuring
charges and rebranding costs
- $0.5 million for the loss on the
sale of the NetBoss assets
- $1.3 million for share-based
compensation expense
- $0.8 million for the amortization
of purchased intangibles
A reconciliation of GAAP to non-GAAP financial measures for the
quarter and year-to-date comparison with the year ago periods is
provided on Table 4 and Table 5 along with the accompanying
notes.
Second Quarter Revenue by Segment
Revenue in the North America
segment was $40.4 million in the
second quarter of fiscal 2011, compared with $49.4 million in the year ago period.
International revenue was $83.8
million, compared with $73.2
million in the year ago period.
Business Highlights
The Company is progressing through its restructuring and
strategic plans previously announced in Q1. During the
quarter, the Company:
- Reduced headcount consistent with its restructuring plan
- Announced release of new high capacity Ethernet switching and
aggregation for the Eclipse radio platform
- Announced release of a new ultra-high capacity IP product, the
WTM 6000, a 4GB/s trunking system
- Provided end-of-life notifications for legacy products
- Significantly resolved supply chain issues from prior
quarters
"Aviat Networks made significant progress in its restructuring
efforts during the second quarter FY11. Shipments increased
substantially, resulting in revenue growth for the first time in
several quarters. In addition, as the transition of our
internal operations accelerated, cash usage was significantly less
than projected. The rate at which we are implementing changes
gives us confidence we can complete our previously announced
restructuring on schedule by the end of the third quarter of FY11,"
said Chuck Kissner, chairman and
CEO, Aviat Networks. "We are enthusiastic about the release of
several new products, both those announced in Q2 and those which we
anticipate announcing soon. These new products, together with
a reduced cost base, will position Aviat Networks for long-term
growth and a more effective financial model."
Third Fiscal Quarter 2011 Outlook
Based on current backlog, business trends and operational
changes, we believe revenue will be in the range of $115 million to $125 million in the third quarter
of fiscal 2011.
Conference Call Details
Aviat Networks, Inc. will host a conference call today at
4:30 p.m. Eastern Time to discuss the
Company's financial results. Those wishing to join the call should
dial 480-629-9690 or toll-free at 877-941-2930 (access code
4405930) at approximately 4:20 p.m.
A replay also will be available starting approximately one
hour after the completion of the call until February 11, 2011. To access the replay, dial
303-590-3030 or toll-free at 800-406-7325 (access code 4405930). A
live and archived webcast of the conference call will also be
available via the Company's Web site 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 revenues, cost of product sales and
services, research and development expenses, selling and
administrative expenses, operating income or loss, tax expense or
benefit, net income or loss, and net income or loss per share 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 and gains as shown on the attached GAAP reconciliation
table. 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 such
non-GAAP financial measures in reporting its financial results to
provide investors with an additional tool to evaluate the Company's
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. is a leader in wireless transmission
solutions. We apply innovation and IP networking expertise toward
building a carrier class foundation for future mobile and fixed
broadband networks. With more than 750,000 systems installed around
the world, Aviat Networks has built a reputation as a leader in
offering best-of-breed solutions including LTE-ready microwave
backhaul and a complete portfolio of service and support options to
public and private telecommunications operators worldwide.
With a global reach and local presence in more than 46 countries,
Aviat Networks works by the side of its customers allowing them to
quickly and cost effectively seize new market and service
opportunities. Aviat Networks, formerly Harris Stratex Networks
Inc., is headquartered in Santa Clara,
California and is listed on NASDAQ (AVNW). 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,
Inc. and trends in revenue, as well as other statements identified
by the use of forward-looking terminology, including "anticipates",
"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 price 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 may have an impact on our
operating results;
- our ability to meet projected new product development dates,
customer acceptance or anticipated cost reductions of new or
planned products;
- the ability of our subcontractors to perform or our key
suppliers to manufacture or deliver material;
- 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;
- the timing of our receipt of payment for products or services
from our customers;
- our failure to protect our intellectual property rights or
defend against intellectual property infringement claims by
others;
- the effects of currency and interest rate risks; and
- 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 9, 2010 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 for any reason, except as required by
law, even as new information becomes available or other events
occur in the future.
Financial Tables to Follow:
Table
1
AVIAT NETWORKS,
INC.
Fiscal Year
2011 Second Quarter and Year-to-Date Summary
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
December 31,
2010
|
|
January 1,
2010
|
|
December 31,
2010
|
|
January 1,
2010
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$
124.2
|
|
$
122.6
|
|
$
233.3
|
|
$
242.6
|
|
Cost of product sales and
services
|
87.4
|
|
78.2
|
|
172.1
|
|
158.4
|
|
Amortization of purchased
technology
|
0.1
|
|
2.1
|
|
0.3
|
|
4.2
|
|
Gross margin
|
36.7
|
|
42.3
|
|
60.9
|
|
80.0
|
|
Research and development
expenses
|
12.1
|
|
10.1
|
|
23.2
|
|
20.8
|
|
Selling and administrative
expenses
|
26.5
|
|
35.4
|
|
55.7
|
|
66.2
|
|
Amortization of intangible
assets
|
0.7
|
|
1.5
|
|
1.4
|
|
3.0
|
|
Restructuring charges
|
3.4
|
|
1.5
|
|
9.0
|
|
2.6
|
|
Operating loss
|
(6.0)
|
|
(6.2)
|
|
(28.4)
|
|
(12.6)
|
|
Loss on sale of NetBoss
assets
|
(0.5)
|
|
—
|
|
(4.4)
|
|
—
|
|
Interest income
|
—
|
|
0.1
|
|
0.1
|
|
0.1
|
|
Interest expense
|
(0.7)
|
|
(0.4)
|
|
(1.3)
|
|
(0.9)
|
|
Loss before income
taxes
|
(7.2)
|
|
(6.5)
|
|
(34.0)
|
|
(13.4)
|
|
Provision for (benefit from)
income taxes
|
5.3
|
|
1.4
|
|
(0.2)
|
|
2.3
|
|
Net loss
|
$
(12.5)
|
|
$
(7.9)
|
|
$
(33.8)
|
|
$
(15.7)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of common
stock
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$
(0.21)
|
|
$
(0.13)
|
|
$
(0.58)
|
|
$
(0.27)
|
|
Basic and diluted weighted
average shares
outstanding
|
58.4
|
|
59.3
|
|
58.4
|
|
59.1
|
|
|
|
|
|
|
|
|
|
Table
2
AVIAT NETWORKS,
INC.
Fiscal Year
2011 Second Quarter Summary
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
December 31,
2010
|
|
July 2,
2010(1)
|
|
(In
millions)
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
102.4
|
|
$
141.7
|
|
Receivables
|
146.4
|
|
104.8
|
|
Inventories and unbilled
costs
|
103.2
|
|
103.7
|
|
Other current
assets
|
28.1
|
|
22.3
|
|
Property, plant and
equipment
|
36.9
|
|
37.6
|
|
Goodwill
|
6.2
|
|
6.2
|
|
Identifiable intangible
assets
|
5.8
|
|
7.5
|
|
Non-current deferred
taxes
|
21.1
|
|
13.1
|
|
Other assets
|
1.8
|
|
10.1
|
|
|
$
451.9
|
|
$
447.0
|
|
Liabilities and Stockholders’
Equity
|
|
|
|
|
Short-term debt
|
$
6.0
|
|
$
5.0
|
|
Accounts
payable
|
73.8
|
|
58.6
|
|
Accrued expenses and other
current liabilities
|
122.2
|
|
103.0
|
|
Restructuring and other
long-term liabilities
|
10.5
|
|
8.9
|
|
Redeemable preference
shares
|
8.3
|
|
8.3
|
|
Stockholders’
equity
|
231.1
|
|
263.2
|
|
|
$
451.9
|
|
$
447.0
|
|
(1) Derived from
audited financial statements.
|
|
|
|
|
|
Table
3
AVIAT NETWORKS,
INC.
Fiscal Year
2011 Second Quarter and Year-to-Date Summary
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
December
31,
|
|
January
1,
|
|
December
31,
|
|
January
1,
|
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
(In
millions)
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
Net loss
|
$
(12.5)
|
|
$ (7.9)
|
|
$
(33.8)
|
|
$ (15.7)
|
|
Adjustments to reconcile
net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Amortization of
identifiable intangible assets
|
0.8
|
|
3.5
|
|
1.7
|
|
7.2
|
|
Depreciation and
amortization of property, plant and equipment and
capitalized
software
|
2.2
|
|
4.8
|
|
5.8
|
|
10.8
|
|
Non-cash stock-based
compensation expense
|
1.3
|
|
0.5
|
|
2.1
|
|
1.5
|
|
Deferred income tax
expense (benefit)
|
(5.8)
|
|
0.9
|
|
(7.5)
|
|
1.3
|
|
Loss on sale of NetBoss
assets
|
0.5
|
|
—
|
|
4.4
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
(26.4)
|
|
(18.9)
|
|
(38.9)
|
|
9.9
|
|
Unbilled costs and
inventories
|
(8.6)
|
|
9.8
|
|
(4.3)
|
|
7.9
|
|
Accounts payable and
accrued expenses
|
27.5
|
|
(2.8)
|
|
22.3
|
|
(16.2)
|
|
Advance payments and
unearned income
|
8.4
|
|
4.7
|
|
7.0
|
|
(2.5)
|
|
Restructuring liabilities and other assets and
liabilities
|
8.9
|
|
4.9
|
|
0.7
|
|
(0.3)
|
|
Net cash provided by (used in)
operating activities
|
(3.7)
|
|
(0.5)
|
|
(40.5)
|
|
3.9
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
Cash received from NetBoss
sale
|
—
|
|
—
|
|
3.8
|
|
—
|
|
Cash paid related to
acquisition of Telsima
|
—
|
|
—
|
|
—
|
|
(4.2)
|
|
Sales of short-term
investments and available for sale securities
|
—
|
|
—
|
|
—
|
|
0.3
|
|
Additions of property,
plant and equipment
|
(1.4)
|
|
(5.5)
|
|
(3.4)
|
|
(9.4)
|
|
Additions of
capitalized software
|
(0.4)
|
|
(0.6)
|
|
(0.7)
|
|
(1.5)
|
|
Net cash used in investing
activities
|
(1.8)
|
|
(6.1)
|
|
(0.3)
|
|
(14.8)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
Proceeds from short-term
debt arrangement
|
—
|
|
—
|
|
6.0
|
|
—
|
|
Payments on short-term
debt arrangement
|
—
|
|
—
|
|
(5.0)
|
|
—
|
|
Payments on capital lease
obligations
|
—
|
|
(0.2)
|
|
—
|
|
(0.2)
|
|
Net cash provided by (used
in) financing activities
|
-
|
|
(0.2)
|
|
1.0
|
|
(0.2)
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
0.1
|
|
0.2
|
|
0.5
|
|
0.7
|
|
Net decrease in cash and cash
equivalents
|
(5.4)
|
|
(6.6)
|
|
(39.3)
|
|
(10.4)
|
|
Cash and cash equivalents,
beginning of period
|
107.8
|
|
133.0
|
|
141.7
|
|
136.8
|
|
Cash and cash equivalents, end
of period
|
$
102.4
|
|
$ 126.4
|
|
$
102.4
|
|
$ 126.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVIAT
NETWORKS, INC.
|
|
Quarter and
Two Quarters Ended December 31, 2010 Summaries
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND REGULATION G DISCLOSURE
|
|
To supplement our consolidated
financial statements presented in accordance with accounting
principles generally accepted in the United States ("GAAP"), we
provide additional measures of revenue, cost of product sales and
services, gross margin, research and development expenses, selling
and administrative expenses, operating loss, loss before
income taxes, income taxes, net loss, and net loss per basic
and diluted share adjusted to exclude certain costs, charges, gains
and losses. Aviat Networks, Inc. ("we" or "our") believes 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. A reconciliation of these
non-GAAP financial measures with the most directly comparable
financial measures calculated in accordance with GAAP
follows.
|
|
|
Table
4
AVIAT NETWORKS,
INC.
Fiscal Year
2011 Second Quarter Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Condensed Consolidated
Statements of Operations
(Unaudited)
|
|
|
Quarter
Ended
|
|
December 31,
2010
|
|
January 1,
2010
|
|
As
Reported
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
%
of
Sales
|
|
As
Reported
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
%
of
Sales
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$ 124.2
|
|
$
—
|
|
$ 124.2
|
|
|
|
$ 122.6
|
|
$
—
|
|
$ 122.6
|
|
|
|
Cost of product sales and
services (A)
|
87.4
|
|
(0.1)
|
|
87.3
|
|
|
|
78.2
|
|
(0.1)
|
|
78.1
|
|
|
|
Amortization of purchased technology (B)
|
0.1
|
|
(0.1)
|
|
—
|
|
|
|
2.1
|
|
(2.1)
|
|
—
|
|
|
|
Gross margin
|
36.7
|
|
0.2
|
|
36.9
|
|
29.7%
|
|
42.3
|
|
2.2
|
|
44.5
|
|
36.3%
|
|
Research and development
expenses (C)
|
12.1
|
|
(0.8)
|
|
11.3
|
|
9.1%
|
|
10.1
|
|
(0.2)
|
|
9.9
|
|
8.1%
|
|
Selling and administrative
expenses (D)
|
26.5
|
|
(1.6)
|
|
24.9
|
|
20.0%
|
|
35.4
|
|
(1.9)
|
|
33.5
|
|
27.3%
|
|
Amortization of intangible
assets (E)
|
0.7
|
|
(0.7)
|
|
—
|
|
|
|
1.5
|
|
(1.5)
|
|
—
|
|
|
|
Restructuring charges (F)
|
3.4
|
|
(3.4)
|
|
—
|
|
|
|
1.5
|
|
(1.5)
|
|
—
|
|
|
|
Operating (loss)
income
|
(6.0)
|
|
6.7
|
|
0.7
|
|
0.6%
|
|
(6.2)
|
|
7.3
|
|
1.1
|
|
0.9%
|
|
Loss on sale of NetBoss assets
(G)
|
(0.5)
|
|
0.5
|
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
|
|
Interest income
|
—
|
|
—
|
|
—
|
|
|
|
0.1
|
|
—
|
|
0.1
|
|
|
|
Interest expense
|
(0.7)
|
|
—
|
|
(0.7)
|
|
Tax
rate
|
|
(0.4)
|
|
—
|
|
(0.4)
|
|
Tax
rate
|
|
Income (loss) before
taxes
|
(7.2)
|
|
7.2
|
|
—
|
|
|
(6.5)
|
|
7.3
|
|
0.8
|
|
|
Income tax provision
(H)
|
5.3
|
|
(5.3)
|
|
—
|
|
0%
|
|
1.4
|
|
(1.4)
|
|
—
|
|
0%
|
|
Net income (loss)
|
$ (12.5)
|
|
$
12.5
|
|
$
—
|
|
|
|
$ (7.9)
|
|
$ 8.7
|
|
$ 0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$ (0.21)
|
|
|
|
$
—
|
|
|
|
$
(0.13)
|
|
|
|
$ 0.01
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
58.4
|
|
|
|
60.1
|
|
|
|
59.3
|
|
|
|
59.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Table 4:
|
|
Note A — Cost of
sales and services —Adjustment for the
second quarter of fiscal 2011 is to remove
non-cash share-based
compensation expense of $0.1 million.
|
|
For the second quarter of fiscal
2010, amount includes adjustment to cost of
product sales and services remove purchase accounting adjustments
for the amortization of the step-up in the value of fixed assets of
$0.1 million and non-cash share-based
compensation expense
of $27,000.
|
|
Note B —
Amortization of purchased technology — Adjustment is to
remove amortization of purchased
intangibles.
|
|
Note C — Research
and development expenses — Adjustment for the second quarters of
fiscal 2011 and 2010 is to remove non-cash share-based
compensation expense of $0.8
million and $0.2 million, respectively.
|
|
Note D — Selling
and administrative expenses — Includes adjustments for the second
quarter of fiscal 2011 to remove non-cash
share-based compensation expense
of $0.4 million, expenses related to rebranding
and other transitional services in connection with the corporate
name change of $0.6 million, and estimated
interest and penalty related to
historical Harris Corporation's Brazilian tax liability of $0.5
million.
|
|
For the second quarter of fiscal
2010, includes adjustments to remove purchase accounting
adjustments related to the amortization of the step-up in the value
of fixed assets of $0.1 million, non-cash share-based
compensation expense of $0.3 million, and expenses
related to rebranding in connection with the anticipated change in
corporate name required by the license agreement termination notice
from Harris Corporation of $1.5
million.
|
|
Note E —
Amortization of intangible assets — Adjustment to remove
amortization of purchased
intangibles.
|
|
Note F —
Restructuring charges —
Adjustment to remove charges incurred for
restructuring.
|
|
Note G —
Loss on sale of NetBoss assets —
Adjustment to remove the loss incurred on the sale of NetBoss
assets to a third party in the first quarter of fiscal
2011.
|
|
Note H — Provision
for income taxes — Adjustment to reflect a zero
percent pro forma tax rate for the second quarters of fiscal 2011
and 2010.
|
|
|
Table
5
AVIAT NETWORKS,
INC.
Fiscal
Year-to-Date 2011 Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Condensed Consolidated
Statements of Operations
(Unaudited)
|
|
|
Two Quarters
Ended
|
|
December 31,
2010
|
|
January 1,
2010
|
|
As
Reported
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
%
of
Sales
|
|
As
Reported
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
%
of
Sales
|
|
|
|
|
|
|
|
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$ 233.3
|
|
$
—
|
|
$ 233.3
|
|
|
|
$ 242.6
|
|
$ —
|
|
$ 242.6
|
|
|
|
Cost of product sales and
services (A)
|
172.1
|
|
(0.3)
|
|
171.8
|
|
|
|
158.4
|
|
(0.3)
|
|
158.1
|
|
|
|
Amortization of purchased technology (B)
|
0.3
|
|
(0.3)
|
|
—
|
|
|
|
4.2
|
|
(4.2)
|
|
—
|
|
|
|
Gross margin
|
60.9
|
|
0.6
|
|
61.5
|
|
26.4%
|
|
80.0
|
|
4.5
|
|
84.5
|
|
34.8%
|
|
Research and development
expenses (C)
|
23.2
|
|
(1.0)
|
|
22.2
|
|
9.5%
|
|
20.8
|
|
(0.3)
|
|
20.5
|
|
8.5%
|
|
Selling and administrative
expenses (D)
|
55.7
|
|
(2.3)
|
|
53.4
|
|
22.9%
|
|
66.2
|
|
(3.0)
|
|
63.2
|
|
26.1%
|
|
Amortization of intangible
assets (E)
|
1.4
|
|
(1.4)
|
|
—
|
|
|
|
3.0
|
|
(3.0)
|
|
—
|
|
|
|
Restructuring charges
(F)
|
9.0
|
|
(9.0)
|
|
—
|
|
|
|
2.6
|
|
(2.6)
|
|
—
|
|
|
|
Operating (loss)
income
|
(28.4)
|
|
14.3
|
|
(14.1)
|
|
-6.0%
|
|
(12.6)
|
|
13.4
|
|
0.8
|
|
0.3%
|
|
Loss on sale of NetBoss assets
(G)
|
(4.4)
|
|
4.4
|
|
—
|
|
|
|
—
|
|
—
|
|
—
|
|
|
|
Interest income
|
0.1
|
|
—
|
|
0.1
|
|
|
|
0.1
|
|
—
|
|
0.1
|
|
|
|
Interest expense
|
(1.3)
|
|
—
|
|
(1.3)
|
|
Tax
rate
|
|
(0.9)
|
|
—
|
|
(0.9)
|
|
Tax
rate
|
|
Loss before income
taxes
|
(34.0)
|
|
18.7
|
|
(15.3)
|
|
|
(13.4)
|
|
13.4
|
|
—
|
|
|
Income tax provision (benefit)
(H)
|
(0.2)
|
|
0.2
|
|
—
|
|
0%
|
|
2.3
|
|
(2.3)
|
|
—
|
|
16.0%
|
|
Net loss
|
$ (33.8)
|
|
$ 18.5
|
|
$ (15.3)
|
|
|
|
$ (15.7)
|
|
$ 15.7
|
|
$ —
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$ (0.58)
|
|
|
|
$ (0.26)
|
|
|
|
$ (0.27)
|
|
|
|
$ —
|
|
|
|
Basic and diluted weighted
average shares
|
58.4
|
|
|
|
58.4
|
|
|
|
59.1
|
|
|
|
59.1
|
|
|
|
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Table 5:
Note A — Cost of
sales and services — Includes adjustments for the first two
quarters of fiscal 2011 and 2010 to remove non-cash
share-based compensation expense of $0.2 million and $0.1 million,
respectively, and purchase accounting adjustments for the
amortization of the step-up in the value of fixed assets of $48,000
and $0.2 million, respectively.
Note B —
Amortization of purchased technology — Adjustment to
remove amortization of purchased
intangibles.
Note C — Research
and development expenses — Adjustment for the first two quarters of
fiscal 2011 and 2010 to remove
non-cash share-based compensation expense
of $1.0 million and $0.3 million, respectively.
Note D — Selling
and administrative expenses — Includes adjustments for the
first two quarters of
fiscal 2011 to remove
non-cash share-based
compensation expense of $0.9 million, expenses
related to rebranding and other transitional services in connection
with the corporate name change of $0.9 million and
estimated interest and penalty related to
historical Harris Corporation's Brazilian tax liability of $0.5
million.
For the first two
quarters of fiscal 2010,
includes adjustments to remove
purchase accounting adjustments related
to the amortization of the step-up in the value of fixed assets of
$0.2 million and non-cash share-based compensation expense
of $1.2 million. Also includes adjustments to remove expenses
related to rebranding in connection with the
change in Company name required by the license agreement
termination notice from Harris Corporation of $0.6 million
and expenses related to implementing
new internal information systems required to provide services which
were phased out under the Transitional Services Agreement
with Harris of $1.0 million.
Note E —
Amortization of intangible assets — Adjustment to remove
amortization of purchased
intangibles.
Note F —
Restructuring charges —
Adjustment to remove charges incurred for restructuring.
Note G —
Loss on sale of NetBoss assets —
Adjustment to remove the loss incurred on the sale of NetBoss
assets to a third party in the first quarter of fiscal
2011.
Note H — Provision
for income taxes — Adjustment to reflect a zero
percent pro forma tax rate for the first two quarters of fiscal
2011 and 2010.
|
|
|
Table
6
AVIAT NETWORKS,
INC.
Fiscal Year
2011 Second Quarter and Year-to-Date Summary
SUPPLEMENTAL SCHEDULE OF REVENUE
BY GEOGRAPHICAL AREA
(Unaudited)
|
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
|
December
31,
|
|
January
1,
|
|
December
31,
|
|
January
1,
|
|
|
2010
|
|
2010
|
|
2010
|
|
2010
|
|
|
|
|
(In millions)
|
|
|
|
North America
|
$
40.4
|
|
$ 49.4
|
|
$
76.1
|
|
$ 97.4
|
|
International:
|
|
|
|
|
|
|
|
|
Africa
|
26.2
|
|
18.6
|
|
49.2
|
|
48.5
|
|
Europe, Middle
East, and Russia
|
33.7
|
|
29.9
|
|
62.3
|
|
48.5
|
|
Latin America and
AsiaPac
|
23.9
|
|
24.7
|
|
45.7
|
|
48.2
|
|
Total
International
|
83.8
|
|
73.2
|
|
157.2
|
|
145.2
|
|
|
$
124.2
|
|
$ 122.6
|
|
$
233.3
|
|
$ 242.6
|
|
|
|
|
|
|
|
|
|
SOURCE Aviat Networks, Inc.