SANTA CLARA, Calif.,
May 5, 2011 /PRNewswire/ -- Aviat
Networks, Inc. (NASDAQ: AVNW), a leading expert in wireless
transmission solutions, today reported financial results for the
third quarter fiscal year 2011, which ended April 1, 2011. Results for the Company exclude
those of the WiMAX business, which the Company plans to divest and
for which it is actively seeking a buyer. Starting in the third
quarter, the WiMAX business is classified as a discontinued
operation and is presented separately. All of the comparisons in
this press release also exclude WiMAX from prior period
results.
Revenue (excluding discontinued operations) for the third
quarter of fiscal 2011 was $115.5
million, compared with $117.0
million in the year ago period and $115.9 million in the prior quarter. Net loss
(including discontinued operations) was $36.9 million, or $(0.63) per share, compared with a net loss of
$25.7 million, or $(0.43) per share, in the year ago quarter.
Net loss from continuing operations was $25.5 million, or $(0.44) per share, compared with a net loss of
$22.5 million, or $(0.38) per share, in the year ago quarter. The
tax expense for the third quarter was $15.2
million, substantially all of which relates to the
establishment of a valuation allowance against deferred tax assets
of our Singapore subsidiary. The
Company determined in the third quarter that based on the latest
forecasted income for Singapore,
it was more likely than not that the Company would not be able to
utilize the deferred tax assets of its Singapore subsidiary.
Cash and cash equivalents were $95.7
million as of April 1, 2011
compared with $102.4 million as of
the end of the prior quarter.
Non-GAAP Financial Results
Non-GAAP net loss for the quarter was $0.3 million or $(0.01) per share, compared with a non-GAAP net
loss of $3.8 million, or $(0.06) per share, in the year ago quarter.
Non-GAAP results exclude $10.0
million of pre-tax charges composed primarily of the
following:
- $4.5 million of restructuring
charges and rebranding costs
- $3.3 million excess and obsolete
inventory associated with exiting the North American legacy product
market
- $1.3 million for share-based
compensation expense
- $0.9 million for the amortization
of purchased intangibles
Non-GAAP results also exclude the loss from discontinued
operations, net of taxes of $11.4
million and the tax expenses of $15.2
million.
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 along with the accompanying notes.
Third Quarter Revenue by Segment (excluding discontinued
operations)
Revenue in the North America
segment was $42.5 million in the
third quarter of fiscal 2011, compared with $39.5 million in the year ago period and
$40.4 million in the prior quarter.
International revenue was $73.0
million, compared with $77.5
million in the year ago period and $75.5 million in the prior quarter.
Business Highlights
The Company is progressing through its restructuring and
strategic plans previously announced in the second quarter of
fiscal year 2011. During the quarter, the Company:
- Completed OPEX restructuring consistent with the restructuring
plan
- Achieved gross margins consistent with outlook for the
quarter
- Announced a new ultra-compact indoor unit, the IDU GE3
- Announced a new zero-footprint, compact outdoor IP radio, the
WTM3000
- Added IEEE 1588v2 synchronization capability to our Eclipse
platform
- Significantly improved delivery and lead times
"Aviat Networks made significant progress in driving its
technology innovation with the announcement of several new products
in the third quarter of fiscal year 2011. In addition, the decision
to sell our WiMAX business will enable the company to further focus
and invest in our core wireless transmission business and position
the company for long-term growth. We believe we did very well in
meeting our customer commitments and now are seeing increased
customer activity," said Chuck
Kissner, chairman and CEO, Aviat Networks. "With the cost
reductions on target for Q4, and with the introduction of new
products, systems and processes, we are prepared to move Aviat
Networks forward again."
Fourth Fiscal Quarter 2011 Outlook
Commencing with the third quarter FY11, the revenue from
discontinued operations will no longer be reported. Therefore,
based on current backlog, business trends and operational changes,
and some supply risks specific to Japan, we believe revenue, excluding
discontinued operations, will be in the range of $105 million to $120 million in the fourth
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 480-629-9822 or toll free at 877-941-1467 access code 4436571
at approximately 4:20 p.m. A
replay also will be available starting approximately one hour after
the completion of the call until May 12,
2011. To access the replay, dial 303-590-3030 or toll free
at 800-406-7325 access code 4436571. 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 from continuing operations, 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;
- our suppliers' inability to perform and deliver on time as a
result of their financial condition, component shortages or other
supply chain constraints, such as the recent natural disasters in
Japan;
- our ability to meet projected new product development dates or
anticipated cost reductions of new products;
- 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;
- 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 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, 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 Third Quarter and Year-to-Date Summary
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
Quarter
Ended
|
|
Three
Quarters Ended
|
|
|
April
1,
2011
|
|
April
2,
2010 (2)
|
|
April
1,
2011
|
|
April 2,
2010 (2)
|
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$ 115.5
|
|
$ 117.0
|
|
$ 334.6
|
|
$ 356.2
|
|
Cost of product sales and
services
|
83.7
|
|
81.0
|
|
237.5
|
|
235.7
|
|
Charges for product
transition
|
—
|
|
16.9
|
|
—
|
|
16.9
|
|
Amortization of purchased
technology
|
0.2
|
|
1.8
|
|
0.5
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
31.6
|
|
17.3
|
|
96.6
|
|
97.3
|
|
Research and development
expenses
|
9.9
|
|
7.6
|
|
30.8
|
|
23.6
|
|
Selling and administrative
expenses
|
26.7
|
|
33.5
|
|
80.7
|
|
96.4
|
|
Amortization of intangible
assets
|
0.7
|
|
1.3
|
|
2.1
|
|
4.1
|
|
Restructuring charges
|
4.4
|
|
0.7
|
|
13.4
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(10.1)
|
|
(25.8)
|
|
(30.4)
|
|
(30.1)
|
|
Loss on sale of NetBoss
assets
|
—
|
|
—
|
|
(4.4)
|
|
—
|
|
Interest income
|
0.2
|
|
—
|
|
0.3
|
|
0.1
|
|
Interest expense
|
(0.4)
|
|
(0.6)
|
|
(1.7)
|
|
(1.5)
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
before income taxes
|
(10.3)
|
|
(26.4)
|
|
(36.2)
|
|
(31.5)
|
|
Provision for (benefit from)
income taxes
|
15.2
|
|
(3.9)
|
|
15.0
|
|
(1.6)
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
(25.5)
|
|
(22.5)
|
|
(51.2)
|
|
$ (29.9)
|
|
Loss from discontinued
operations, net of tax (1)
|
(11.4)
|
|
(3.2)
|
|
(19.5)
|
|
$ (11.5)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$ (36.9)
|
|
$ (25.7)
|
|
$ (70.7)
|
|
$ (41.4)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per
common share:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$ (0.44)
|
|
$ (0.38)
|
|
$ (0.88)
|
|
$ (0.51)
|
|
Discontinued operations
|
(0.19)
|
|
(0.05)
|
|
(0.33)
|
|
$ (0.19)
|
|
Net loss
per common share
|
$ (0.63)
|
|
$ (0.43)
|
|
$ (1.21)
|
|
$ (0.70)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
58.6
|
|
59.7
|
|
58.5
|
|
59.3
|
|
|
|
|
(1) In the third quarter
of fiscal 2011, the WiMAX business met the criteria to be
considered held for sale. Beginning in the third quarter of fiscal
2011, the results of the WiMAX business are presented as a
discontinued operation in our consolidated financial
statements.
|
|
(2) Amounts prior to the
third quarter of fiscal 2011 are reclassified to conform to current
period presentation related to WiMAX discontinued
operations.
|
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
AVIAT
NETWORKS, INC.
|
|
|
|
Fiscal Year
2011 Third Quarter Summary
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
April 1,
2011
|
|
July 2,
2010 (1)
|
|
|
|
|
(In
millions)
|
|
Assets
|
|
|
|
|
Cash and
cash equivalents
|
$ 95.7
|
|
$ 141.7
|
|
Receivables
|
142.0
|
|
104.8
|
|
Inventories
and unbilled costs
|
91.1
|
|
96.1
|
|
Other
current assets (2)
|
37.0
|
|
33.8
|
|
Property,
plant and equipment
|
32.8
|
|
34.5
|
|
Goodwill
|
5.6
|
|
6.2
|
|
Identifiable intangible assets
|
4.9
|
|
7.5
|
|
Non-current
deferred taxes
|
0.6
|
|
13.1
|
|
Other
assets
|
1.0
|
|
9.3
|
|
|
$ 410.7
|
|
$ 447.0
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity
|
|
|
|
|
Short-term
debt
|
$ 6.0
|
|
$ 5.0
|
|
Accounts
payable
|
58.5
|
|
52.7
|
|
Accrued
expenses and other current liabilities (3)
|
132.9
|
|
109.0
|
|
Restructuring and other long-term liabilities
|
9.2
|
|
8.8
|
|
Redeemable
preference shares
|
8.3
|
|
8.3
|
|
Stockholders’ equity
|
195.8
|
|
263.2
|
|
|
$ 410.7
|
|
$ 447.0
|
|
|
|
|
|
|
(1) Fiscal 2010 amounts
are reclassified to conform to current period presentation related
to WiMAX discontinued operations.
|
|
(2) Other current assets
included $11.7 million and $12.6 million of WiMAX held for sale
assets at April 1, 2011 and April 2, 2010, respectively.
|
|
(3) Other current
liabilities included $9.5 million and $10.2 million of liabilities
related to WiMAX held for sale assets at April 1, 2011 and April 2,
2010, respectively.
|
|
|
|
|
|
Table
3
|
|
AVIAT
NETWORKS, INC.
|
|
|
|
Fiscal Year
2011 Third Quarter and Year-to-Date Summary
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three
Quarters Ended
|
|
|
April
1,
2011
|
|
April
2,
2010
|
|
|
|
|
|
|
Operating
Activities
|
$ (70.7)
|
|
$ (41.4)
|
|
Net loss
|
|
|
|
|
Adjustments to reconcile
net loss to net cash provided by (used in) operating
activities:
|
2.6
|
|
10.6
|
|
Amortization
of identifiable intangible assets
|
9.0
|
|
15.8
|
|
Depreciation
and amortization of property, plant and equipment and capitalized
software
|
3.4
|
|
1.8
|
|
Non-cash
stock-based compensation expense
|
11.2
|
|
0.9
|
|
Deferred
income tax expense (benefit)
|
—
|
|
13.5
|
|
Changes for
product transition and inventory mark-downs
|
0.8
|
|
—
|
|
Loss related
to held for sale assets, net
|
4.4
|
|
—
|
|
Loss on sale
of NetBoss assets
|
|
|
|
|
Changes in operating
assets and liabilities:
|
(34.6)
|
|
28.1
|
|
Receivables
|
0.8
|
|
18.3
|
|
Unbilled
costs and inventories
|
15.2
|
|
(17.1)
|
|
Accounts
payable and accrued expenses
|
12.2
|
|
1.0
|
|
Advance
payments and unearned income
|
0.3
|
|
(9.7)
|
|
Restructuring liabilities and other assets and
liabilities
|
|
|
|
|
|
(45.4)
|
|
21.8
|
|
Net cash provided by (used in)
operating activities
|
|
|
|
|
Investing
Activities
|
3.8
|
|
—
|
|
Cash received from
NetBoss sale
|
—
|
|
(4.2)
|
|
Cash paid related to
acquisition of Telsima
|
—
|
|
0.3
|
|
Sales of short-term
investments and available for sale securities
|
(5.2)
|
|
(13.7)
|
|
Additions of property,
plant and equipment
|
(0.8)
|
|
(2.1)
|
|
Additions of capitalized
software
|
(2.2)
|
|
(19.7)
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
|
|
|
Financing
Activities
|
6.0
|
|
—
|
|
Proceeds from short-term
debt arrangement
|
(5.0)
|
|
—
|
|
Payments on short-term
debt arrangement
|
0.2
|
|
0.1
|
|
Proceeds from stock-based
compensation awards
|
—
|
|
(0.4)
|
|
Payments on capital lease
obligations
|
|
|
|
|
Net cash provided by (used in)
financing activities
|
1.2
|
|
(0.3)
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
0.4
|
|
1.9
|
|
Net increase (decrease) in cash
and cash equivalents
|
(46.0)
|
|
3.7
|
|
Cash and cash equivalents,
beginning of period
|
141.7
|
|
136.8
|
|
Cash and cash equivalents, end
of period
|
$ 95.7
|
|
$ 140.5
|
|
|
|
|
|
|
|
|
|
|
AVIAT
NETWORKS, INC.
|
|
|
|
Quarter and
Three Quarters Ended April 1, 2011 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 Third Quarter and Year-to-Date Summary
|
|
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
Three
Quarters Ended
|
|
|
April
1,
|
|
%
of
|
|
April
2,
|
|
%
of
|
|
April
1,
|
|
%
of
|
|
April
2,
|
|
%
of
|
|
|
2011
|
|
Revenue
|
|
2010
|
|
Revenue
|
|
2011
|
|
Revenue
|
|
2010
|
|
Revenue
|
|
|
(In
millions, except per share amounts)
|
|
GAAP gross margin
|
$ 31.6
|
|
27.4%
|
|
$ 17.3
|
|
14.8%
|
|
$ 96.6
|
|
28.9%
|
|
$ 97.3
|
|
27.3%
|
|
Share-based
compensation
|
0.1
|
|
|
|
-
|
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
Excess and obsolete inventory
associated with legacy products
|
3.3
|
|
|
|
-
|
|
|
|
3.3
|
|
|
|
-
|
|
|
|
Amortization of PPE step-up
value
|
-
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.3
|
|
|
|
Charges for product
transition
|
-
|
|
|
|
16.9
|
|
|
|
-
|
|
|
|
16.9
|
|
|
|
Amortization of purchased
technology
|
0.2
|
|
|
|
1.8
|
|
|
|
0.5
|
|
|
|
6.3
|
|
|
|
Non-GAAP gross
margin
|
35.2
|
|
30.5%
|
|
36.1
|
|
30.9%
|
|
100.8
|
|
30.1%
|
|
120.9
|
|
33.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
expenses
|
$
9.9
|
|
8.6%
|
|
$ 7.6
|
|
6.5%
|
|
$ 30.8
|
|
9.2%
|
|
$ 23.6
|
|
6.6%
|
|
Share-based
compensation
|
(0.5)
|
|
|
|
(0.1)
|
|
|
|
(1.4)
|
|
|
|
(0.4)
|
|
|
|
Non-GAAP research and
development expenses
|
9.4
|
|
8.1%
|
|
7.5
|
|
6.4%
|
|
29.4
|
|
8.8%
|
|
23.2
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and administrative
expenses
|
$ 26.7
|
|
23.1%
|
|
$33.5
|
|
28.6%
|
|
$ 80.7
|
|
24.1%
|
|
$ 96.4
|
|
27.1%
|
|
Share-based
compensation
|
(0.7)
|
|
|
|
(0.2)
|
|
|
|
(1.6)
|
|
|
|
(1.4)
|
|
|
|
Rebranding and transitional
services
|
(0.1)
|
|
|
|
(0.8)
|
|
|
|
(0.9)
|
|
|
|
(2.4)
|
|
|
|
Amortization of PPE step-up
value
|
-
|
|
|
|
(0.1)
|
|
|
|
-
|
|
|
|
(0.3)
|
|
|
|
Other nonrecurring
charges
|
-
|
|
|
|
(0.6)
|
|
|
|
(0.6)
|
|
|
|
(0.6)
|
|
|
|
Non-GAAP selling and
administrative expenses
|
25.9
|
|
22.4%
|
|
31.8
|
|
27.2%
|
|
77.6
|
|
23.2%
|
|
91.7
|
|
25.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$ (10.1)
|
|
-8.7%
|
|
$(25.8)
|
|
-22.1%
|
|
$(30.4)
|
|
-9.1%
|
|
$(30.1)
|
|
-8.5%
|
|
Share-based
compensation
|
1.3
|
|
|
|
0.3
|
|
|
|
3.3
|
|
|
|
1.9
|
|
|
|
Excess and obsolete inventory
associated with legacy products
|
3.3
|
|
|
|
-
|
|
|
|
3.3
|
|
|
|
-
|
|
|
|
Amortization of PPE step-up
value
|
-
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.6
|
|
|
|
Charges for product
transition
|
-
|
|
|
|
16.9
|
|
|
|
-
|
|
|
|
16.9
|
|
|
|
Amortization of purchased
technology
|
0.2
|
|
|
|
1.8
|
|
|
|
0.5
|
|
|
|
6.3
|
|
|
|
Rebranding and transitional
services
|
0.1
|
|
|
|
0.8
|
|
|
|
0.9
|
|
|
|
2.4
|
|
|
|
Other nonrecurring
charges
|
-
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
Amortization of intangible
assets
|
0.7
|
|
|
|
1.3
|
|
|
|
2.1
|
|
|
|
4.1
|
|
|
|
Restructuring charges
|
4.4
|
|
|
|
0.7
|
|
|
|
13.4
|
|
|
|
3.3
|
|
|
|
Non-GAAP operating income
(loss)
|
(0.1)
|
|
-0.1%
|
|
(3.2)
|
|
-2.7%
|
|
(6.2)
|
|
-1.9%
|
|
6.0
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other expense,
net
|
$ (0.2)
|
|
-0.2%
|
|
$ (0.6)
|
|
-0.5%
|
|
$ (5.8)
|
|
-1.7%
|
|
$ (1.4)
|
|
-0.4%
|
|
Loss on sale of NetBoss
assets
|
-
|
|
|
|
-
|
|
|
|
4.4
|
|
|
|
-
|
|
|
|
Non-GAAP other expense,
net
|
(0.2)
|
|
-0.2%
|
|
(0.6)
|
|
-0.5%
|
|
(1.4)
|
|
-0.4%
|
|
(1.4)
|
|
-0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax provision
(benefit)
|
$ 15.2
|
|
13.2%
|
|
$ (3.9)
|
|
-3.3%
|
|
$ 15.0
|
|
4.5%
|
|
$ (1.6)
|
|
-0.4%
|
|
Adjustment to reflect zero
percent pro forma tax rate
|
(15.2)
|
|
|
|
3.9
|
|
|
|
(15.0)
|
|
|
|
1.6
|
|
|
|
Non-GAAP income tax
provision
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from continuing
operations
|
$(25.5)
|
|
-22.1%
|
|
$(22.5)
|
|
-19.2%
|
|
$ (51.2)
|
|
-15.3%
|
|
$(29.9)
|
|
-8.4%
|
|
Share-based
compensation
|
1.3
|
|
1.1%
|
|
0.3
|
|
0.3%
|
|
3.3
|
|
1.0%
|
|
1.9
|
|
0.5%
|
|
Excess and obsolete inventory
associated with legacy products
|
3.3
|
|
2.9%
|
|
-
|
|
0.0%
|
|
3.3
|
|
1.0%
|
|
-
|
|
0.0%
|
|
Amortization of PPE step-up
value
|
-
|
|
0.0%
|
|
0.2
|
|
0.2%
|
|
0.1
|
|
0.0%
|
|
0.6
|
|
0.2%
|
|
Charges for product
transition
|
-
|
|
0.0%
|
|
16.9
|
|
14.4%
|
|
-
|
|
0.0%
|
|
16.9
|
|
4.7%
|
|
Amortization of purchased
technology
|
0.2
|
|
0.2%
|
|
1.8
|
|
1.5%
|
|
0.5
|
|
0.1%
|
|
6.3
|
|
1.8%
|
|
Rebranding and transitional
services
|
0.1
|
|
0.1%
|
|
0.8
|
|
0.7%
|
|
0.9
|
|
0.3%
|
|
2.4
|
|
0.7%
|
|
Other nonrecurring
charges
|
-
|
|
0.0%
|
|
0.6
|
|
0.5%
|
|
0.6
|
|
0.2%
|
|
0.6
|
|
0.2%
|
|
Amortization of intangible
assets
|
0.7
|
|
0.6%
|
|
1.3
|
|
1.1%
|
|
2.1
|
|
0.6%
|
|
4.1
|
|
1.2%
|
|
Restructuring charges
|
4.4
|
|
3.8%
|
|
0.7
|
|
0.6%
|
|
13.4
|
|
4.0%
|
|
3.3
|
|
0.9%
|
|
Loss on sale of NetBoss
assets
|
-
|
|
0.0%
|
|
-
|
|
0.0%
|
|
4.4
|
|
1.3%
|
|
-
|
|
0.0%
|
|
Adjustment to reflect zero
percent pro forma tax rate
|
15.2
|
|
13.2%
|
|
(3.9)
|
|
-3.3%
|
|
15.0
|
|
4.5%
|
|
(1.6)
|
|
-0.4%
|
|
Non-GAAP income (loss) from
continuing operations
|
$ (0.3)
|
|
-0.3%
|
|
$ (3.8)
|
|
-3.2%
|
|
$ (7.6)
|
|
-2.3%
|
|
$ 4.6
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted income (loss)
per share from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
$
(0.44)
|
|
|
|
$ (0.38)
|
|
|
|
$
(0.88)
|
|
|
|
$
(0.51)
|
|
|
|
Non-GAAP
|
$
(0.01)
|
|
|
|
$ (0.06)
|
|
|
|
$
(0.13)
|
|
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing income
(loss) per share from continuing operations, basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
58.6
|
|
|
|
59.7
|
|
|
|
58.5
|
|
|
|
59.3
|
|
|
|
Non-GAAP
|
58.6
|
|
|
|
59.7
|
|
|
|
58.5
|
|
|
|
59.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In the third
quarter of fiscal 2011, the WiMAX business met the criteria to be
considered held for sale. Beginning in the third quarter of fiscal
2011, the results of the WiMAX business are presented as a
discontinued operation in our consolidated financial statements.
Prior period results have been reclassified to conform to current
period presentation.
|
|
(2) The adjustments
above reconcile the Company’s GAAP financial results to the
non-GAAP financial measures used by the Company. The Company’s
non-GAAP financial measures exclude share-based compensation,
excess and obsolete inventory associated with legacy products,
amortization of property, plant and equipment step-up value
resulting from purchase accounting adjustments, charges for product
transition, amortization of purchased technology, rebranding and
transitional services in connection with the corporate name change,
amortization of intangible assets, restructuring charges, loss on
sale of NetBoss assets, adjustment to reflect zero percent pro
forma tax rate, and other non-recurring charges. The Company
believes that the presentation of these non-GAAP items provides
meaningful supplemental information to investors, when viewed in
conjunction with, and not in lieu of, the company’s 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
5
|
|
AVIAT
NETWORKS, INC.
|
|
|
|
Fiscal Year
2011 Third Quarter and Year-to-Date Summary
|
|
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Three
Quarters Ended
|
|
|
April
1,
2011
|
|
April
2,
2010
|
|
April
1,
2011
|
|
April
2,
2010
|
|
|
|
|
(In
millions)
|
|
|
|
North America
|
$ 42.5
|
|
$ 39.5
|
|
$ 118.5
|
|
$ 136.8
|
|
International:
|
|
|
|
|
|
|
|
|
Africa
|
26.5
|
|
37.1
|
|
73.4
|
|
84.8
|
|
Europe, Middle East, and
Russia
|
23.6
|
|
22.8
|
|
85.5
|
|
70.8
|
|
Latin America and
AsiaPac
|
22.9
|
|
17.6
|
|
57.2
|
|
63.9
|
|
|
|
|
|
|
|
|
|
|
Total
International
|
73.0
|
|
77.5
|
|
216.1
|
|
219.5
|
|
|
$ 115.5
|
|
$ 117.0
|
|
$ 334.6
|
|
$ 356.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Aviat Networks