SANTA CLARA, Calif.,
Aug. 24, 2011 /PRNewswire/ -- Aviat
Networks, Inc. (NASDAQ: AVNW), a leading expert in wireless
transmission solutions, today reported financial results for the
fourth quarter and fiscal year 2011, which ended July 1, 2011.
Financial Highlights for Q4FY11
- Revenue at the high end of guidance
- Increased cash
- Strong orders - book to bill above 1
- Achieved operating expense spending targets
Financial Highlights for FY11
- 27% reduction in operating expense in Q4FY11 as compared to
Q4FY10
- Refocused product development and released new Eclipse
products
- Announced next generation of products
- Completed manufacturing outsourcing
- Consolidated and streamlined operational processes
- Improved lead times & on-time performance on product
delivery
- Divested NetBoss assets and started sale process of WiMAX
business
GAAP Financial Results
Q4FY11 revenue was $120.9 million,
compared with $107.6 million in the
year-ago quarter. Revenue and results of operations from our WiMAX
business are classified as discontinued operations for all periods
presented. The Company reported a net loss, including discontinued
operations, of $19.8 million or
$(0.34) per share, compared with a
net loss of $88.8 million or
$(1.49) per share in the year-ago
quarter. Loss from continuing operations was $6.2 million or $(0.11) per share compared with the loss from
continuing operations of $80.7
million or $(1.35) per share
in the year-ago quarter.
Cash and cash equivalents were $98.2
million as of July 1, 2011
compared with $95.7 million as of the
end of the prior quarter.
Non-GAAP Financial Results
Non-GAAP income from continuing operations for the quarter was
$2.9 million or $0.05 per share, compared with a non-GAAP loss
from continuing operations of $5.6
million, or $(0.09) per share,
in the year ago quarter.
Q4FY11 non-GAAP results exclude $10.0
million of pre-tax charges composed primarily of the
following:
- $2.0 million of restructuring
charges
- $3.3 million excess and obsolete
inventory associated with exiting the North American legacy product
market
- $1.4 million for share-based
compensation expense
- $0.9 million for the amortization
of purchased intangibles
- $2.3 million for transactional
tax assessments
Q4FY11 non-GAAP results also exclude an income tax benefit of
$0.9 million. Loss from discontinued
operations, net of taxes was $13.6
million for the quarter.
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.
Fourth Quarter Revenue by Segment (excluding discontinued
operations)
Revenue in the North America
segment was $42.2 million in the
fourth quarter of fiscal 2011, compared with $38.0 million in the year ago quarter and
$42.5 million in the prior quarter.
International revenue was $78.7
million, compared with $69.6
million in the year ago quarter and $73.0 million in the prior quarter.
"In FY11 we focused on restructuring the company to achieve
profitability and returned to our core competency of microwave
transmission. We have created a more competitive cost base,
improved operational processes, reinvigorated product development
and realigned our company to execute on the next phase of our
business strategy. Our customers are enthusiastic about our
progress as demonstrated by renewed orders strength in North America and increased business with both
new and existing customers in Africa," said Michael
Pangia, president and CEO of Aviat Networks.
Operational Objectives for 2012
The Company has established four key objectives for fiscal 2012.
They are to:
- Acquire new customers
- Focus on improving costs and operational efficiencies
- Continue to accelerate innovation in wireless transmission
- Invest in our service capabilities to strengthen our
competitive position
Outlook
Based on current backlog, business trends and operational
changes, we believe revenue, excluding discontinued operations,
will be in the range of $100 million to $110
million in the first quarter of fiscal 2012.
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 480-629-9818 or toll free at 877-941-8609 access code 4464819
at approximately 4:20 p.m. A
replay also will be available starting approximately one hour after
the completion of the call until August 31,
2011. To access the replay, dial 303-590-3030 or toll free
at 800-406-7325 access code 4464819. 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 gross margin, research and development
expenses, selling and administrative expenses, operating income or
loss, other income or loss, income tax provision or benefit, income
or loss from continuing operations and basic and diluted income or
loss per share from continuing operations 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. 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 Fourth Quarter and Year-to-Date Summary
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
Fiscal
Year Ended
|
|
July 1,
2011
|
July 2,
2010 (1)
|
July 1,
2011
|
July 2,
2010 (1)
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
$ 120.9
|
$ 107.6
|
$ 452.1
|
$ 465.5
|
|
Cost of product sales and
services
|
87.9
|
72.6
|
323.3
|
308.6
|
|
Charges for product
transition
|
—
|
—
|
—
|
16.9
|
|
Amortization of purchased
technology
|
0.2
|
1.7
|
0.7
|
7.2
|
|
|
|
|
|
|
|
Gross margin
|
32.8
|
33.3
|
128.1
|
132.8
|
|
Research and development
expenses
|
9.7
|
7.5
|
40.5
|
31.1
|
|
Selling and administrative
expenses
|
23.7
|
38.3
|
104.0
|
134.7
|
|
Amortization of intangible
assets
|
0.7
|
0.9
|
2.8
|
5.0
|
|
Property, plant and equipment
impairment charges
|
—
|
8.7
|
—
|
8.7
|
|
Intangible assets and trade name
impairment charges
|
—
|
57.7
|
—
|
57.7
|
|
Restructuring charges
|
2.0
|
3.8
|
15.4
|
7.1
|
|
|
|
|
|
|
|
Operating loss
|
(3.3)
|
(83.6)
|
(34.6)
|
(111.5)
|
|
Loss on sale of NetBoss
assets
|
(0.2)
|
—
|
(4.6)
|
—
|
|
Other income (expense),
net
|
(3.1)
|
1.2
|
(3.6)
|
1.2
|
|
Interest income
|
—
|
0.2
|
0.3
|
0.3
|
|
Interest expense
|
(0.5)
|
(0.7)
|
(2.2)
|
(2.2)
|
|
|
|
|
|
|
|
Loss from continuing operations
before income taxes
|
(7.1)
|
(82.9)
|
(44.7)
|
(112.2)
|
|
Provision for (benefit from)
income taxes
|
(0.9)
|
(2.2)
|
14.1
|
(3.8)
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
(6.2)
|
(80.7)
|
(58.8)
|
$ (108.4)
|
|
Loss from discontinued
operations, net of tax
|
(13.6)
|
(8.1)
|
(31.7)
|
$ (21.8)
|
|
|
|
|
|
|
|
Net loss
|
$ (19.8)
|
$ (88.8)
|
$ (90.5)
|
$ (130.2)
|
|
|
|
|
|
|
|
Basic and diluted net loss per
common share:
|
|
|
|
|
|
Continuing
operations
|
$ (0.11)
|
$ (1.35)
|
$ (1.00)
|
$ (1.82)
|
|
Discontinued
operations
|
(0.23)
|
(0.14)
|
(0.54)
|
$ (0.37)
|
|
|
|
|
|
|
|
Net loss per common
share
|
$ (0.34)
|
$ (1.49)
|
$ (1.54)
|
$ (2.19)
|
|
|
|
|
|
|
|
Basic and diluted weighted
average shares outstanding
|
58.8
|
59.7
|
58.6
|
59.4
|
|
|
|
|
|
|
|
(1) Beginning in
the third quarter of fiscal 2011, the results of the WiMAX business
are presented as discontinued operations in our consolidated
financial statements. Historical amounts prior to the third quarter
of fiscal 2011 are reclassified to conform to current period
presentation
|
|
|
|
|
|
|
|
Table
2
AVIAT
NETWORKS, INC.
Fiscal Year
2011 Fourth Quarter Summary
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
July 1, 2011
|
July 2, 2010
(1)
|
|
(In
millions)
|
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$ 98.2
|
$ 141.7
|
|
Receivables,
net
|
133.0
|
104.8
|
|
Unbilled costs
|
24.8
|
30.2
|
|
Inventories
|
71.8
|
76.7
|
|
Other current assets
(2)
|
22.5
|
33.1
|
|
Property, plant and
equipment, net
|
21.6
|
23.7
|
|
Goodwill
|
5.6
|
6.2
|
|
Identifiable intangible
assets
|
4.1
|
7.5
|
|
Non-current deferred
taxes
|
0.7
|
13.1
|
|
Other assets
|
1.6
|
10.0
|
|
|
|
|
|
|
$ 383.9
|
$ 447.0
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
Short-term debt
|
$ 6.0
|
$ 5.0
|
|
Accounts
payable
|
70.3
|
58.6
|
|
Redeemable preference
shares, current
|
8.3
|
—
|
|
Accrued expenses and other
current liabilities (3)
|
112.5
|
103.0
|
|
Restructuring and other
long-term liabilities
|
9.1
|
8.9
|
|
Redeemable preference
shares, long-term
|
—
|
8.3
|
|
Stockholders'
equity
|
177.7
|
263.2
|
|
|
|
|
|
|
$ 383.9
|
$ 447.0
|
|
|
|
|
|
(1) Fiscal 2010 amounts
are reclassified to conform to current period presentation related
to WiMAX discontinued operations and customer services inventories
reclassification from property, plant and equipment to
inventories.
(2) Other current assets
included $0 and $10.8 million of WiMAX held for sale assets at
July 1, 2011 and July 2, 2010, respectively.
(3) Other
current liabilities included $0.3 million and $0 of liabilities
related to WiMAX at July 1, 2011 and July 2, 2010,
respectively.
|
|
|
|
|
Table
3
AVIAT
NETWORKS, INC.
Fiscal Year
2011 Fourth Quarter Summary
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
Fiscal
Year Ended
|
|
July 1,
|
July 2,
|
|
2011
|
2010 (1)
|
|
Operating
Activities
|
|
|
|
Net loss
|
$ (90.5)
|
$ (130.2)
|
|
Adjustments to reconcile
net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Amortization of
identifiable intangible assets
|
3.5
|
13.8
|
|
Depreciation and
amortization of property, plant and equipment and
capitalized software
|
8.6
|
20.0
|
|
Intangible assets
impairment charges
|
—
|
63.2
|
|
Property, plant and
equipment impairment charges
|
—
|
7.9
|
|
Non-cash share-based
compensation expense
|
4.8
|
3.2
|
|
Deferred income tax
(benefit) expense
|
11.0
|
4.2
|
|
Charges for product
transition and inventory mark-downs
|
—
|
13.5
|
|
Loss on held for sale
assets, net
|
9.5
|
—
|
|
Loss on sale of NetBoss
assets
|
4.6
|
—
|
|
Non-cash other
income
|
—
|
(1.2)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables
|
(25.8)
|
38.5
|
|
Unbilled costs
|
5.5
|
(25.1)
|
|
Inventories
|
2.8
|
36.6
|
|
Accounts
payable
|
11.5
|
(11.0)
|
|
Accrued
expenses
|
3.6
|
(9.1)
|
|
Advance payments and
unearned income
|
8.5
|
(0.1)
|
|
Income taxes payable or
receivable
|
(1.7)
|
—
|
|
Restructuring liabilities
and other assets and liabilities
|
2.6
|
(0.9)
|
|
|
|
|
|
Net cash provided by (used in)
operating activities
|
(41.5)
|
23.3
|
|
Investing
Activities
|
|
|
|
Cash received from sale of
NetBoss assets
|
3.8
|
—
|
|
Cash paid related to
acquisition of Telsima
|
—
|
(4.2)
|
|
Proceeds from sale of
property, plant and equipment
|
—
|
5.4
|
|
Sales and maturities of
short-term investments
|
—
|
0.3
|
|
Additions of property,
plant and equipment
|
(7.2)
|
(12.9)
|
|
Additions of capitalized
software
|
(0.8)
|
(2.9)
|
|
|
|
|
|
Net cash used in investing
activities
|
(4.2)
|
(14.3)
|
|
Financing
Activities
|
|
|
|
Proceeds from short-term
debt arrangement
|
6.0
|
6.3
|
|
Payments on short-term
debt arrangement
|
(5.0)
|
(11.3)
|
|
Issuance of common shares
related to employee share-based awards
|
0.2
|
0.1
|
|
Payments on capital lease
obligations
|
—
|
(0.4)
|
|
|
|
|
|
Net cash provided by (used in)
financing activities
|
1.2
|
(5.3)
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
1.0
|
1.2
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
(43.5)
|
4.9
|
|
Cash and cash equivalents,
beginning of year
|
141.7
|
136.8
|
|
|
|
|
|
Cash and cash equivalents, end
of year
|
$ 98.2
|
$ 141.7
|
|
|
|
|
|
(1) Fiscal 2010 amounts are
reclassified to conform to current period presentation related to
customer services inventories reclassification from property, plant
and equipment to inventories.
|
|
|
|
|
AVIAT NETWORKS, INC.
Quarter and Fiscal Year Ended July 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 gross margin, research and
development expenses, selling and administrative expenses,
operating income or loss, other income or loss, income tax
provision or benefit, income or loss from continuing operations,
and basic and diluted income or loss per share from continuing
operations, 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 Fourth Quarter and Year-to-Date Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
Fiscal Year
Ended
|
|
|
July 1,
2011
|
%
of
Revenue
|
July 2,
2010
|
%
of
Revenue
|
July 1,
2011
|
%
of
Revenue
|
July 2,
2010
|
%
of
Revenue
|
|
|
(In
millions, except per share amounts)
|
|
GAAP gross margin
|
$ 32.8
|
27.1 %
|
$ 33.3
|
30.9 %
|
$ 128.1
|
28.3 %
|
$ 132.8
|
28.5 %
|
|
Share-based
compensation
|
0.1
|
|
0.1
|
|
0.4
|
|
0.2
|
|
|
Excess and obsolete inventory
associated with legacy products
|
3.3
|
|
—
|
|
6.6
|
|
—
|
|
|
Amortization of PPE step-up
value
|
—
|
|
—
|
|
0.1
|
|
0.3
|
|
|
Charges for product
transition
|
—
|
|
—
|
|
—
|
|
16.9
|
|
|
Gain from sale of manufacturing
facilities
|
—
|
|
(1.0)
|
|
—
|
|
(1.0)
|
|
|
Amortization of purchased
technology
|
0.2
|
|
1.7
|
|
0.7
|
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
margin
|
36.4
|
30.1 %
|
34.1
|
31.7 %
|
135.9
|
30.1 %
|
156.4
|
33.6 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
expenses
|
$ 9.7
|
8.0 %
|
$ 7.5
|
7.0 %
|
$ 40.5
|
9.0 %
|
$ 31.1
|
6.7 %
|
|
Share-based
compensation
|
(0.5)
|
|
(0.1)
|
|
(1.9)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP research and
development expenses
|
9.2
|
7.6 %
|
7.4
|
6.9 %
|
38.6
|
8.5 %
|
30.6
|
6.6 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and administrative
expenses
|
$ 23.7
|
19.6 %
|
$ 38.3
|
35.6 %
|
$ 104.0
|
23.0 %
|
$ 134.7
|
28.9 %
|
|
Share-based
compensation
|
(0.8)
|
|
(1.0)
|
|
(2.4)
|
|
(2.4)
|
|
|
Rebranding and transitional
costs
|
—
|
|
(5.5)
|
|
(0.9)
|
|
(8.5)
|
|
|
Amortization of PPE step-up
value
|
—
|
|
—
|
|
(0.1)
|
|
(0.3)
|
|
|
Other
|
0.9
|
|
—
|
|
0.9
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP selling and
administrative expenses
|
23.8
|
19.7 %
|
31.8
|
29.6 %
|
101.5
|
22.5 %
|
123.5
|
26.5 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$ (3.3)
|
-2.7 %
|
$ (83.6)
|
-77.7 %
|
$ (34.6)
|
-7.7 %
|
$ (111.5)
|
-24.0 %
|
|
Share-based
compensation
|
1.4
|
|
1.2
|
|
4.7
|
|
3.1
|
|
|
Excess and obsolete inventory
associated with legacy products
|
3.3
|
|
—
|
|
6.6
|
|
—
|
|
|
Amortization of PPE step-up
value
|
—
|
|
—
|
|
0.2
|
|
0.6
|
|
|
Charges for product
transition
|
—
|
|
—
|
|
—
|
|
16.9
|
|
|
Gain from sale of manufacturing
facilities
|
—
|
|
(1.0)
|
|
—
|
|
(1.0)
|
|
|
Amortization of purchased
technology
|
0.2
|
|
1.7
|
|
0.7
|
|
7.2
|
|
|
Rebranding and transitional
costs
|
—
|
|
5.5
|
|
0.9
|
|
8.5
|
|
|
Other
|
(0.9)
|
|
—
|
|
(0.9)
|
|
—
|
|
|
Amortization of intangible
assets
|
0.7
|
|
0.9
|
|
2.8
|
|
5.0
|
|
|
Property, plant, and equipment
impairment charges
|
—
|
|
8.7
|
|
—
|
|
8.7
|
|
|
Intangible assets and trade name
impairment charges
|
—
|
|
57.7
|
|
—
|
|
57.7
|
|
|
Restructuring charges
|
2.0
|
|
3.8
|
|
15.4
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss)
|
3.4
|
2.8 %
|
(5.1)
|
-4.7 %
|
(4.2)
|
-0.9 %
|
2.3
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP other income (expense),
net
|
$ (3.8)
|
-3.1 %
|
$ 0.7
|
0.7 %
|
$ (10.1)
|
-2.2 %
|
$ (0.7)
|
-0.2 %
|
|
Loss on sale of NetBoss
assets
|
0.2
|
|
—
|
|
4.6
|
|
—
|
|
|
Gain on settlement of Telsima
purchase price
|
—
|
|
(1.2)
|
|
—
|
|
(1.2)
|
|
|
Transactional taxes
assessments
|
2.3
|
|
—
|
|
2.8
|
|
—
|
|
|
Costs related to liquidation of
foreign subsidiaries
|
0.8
|
|
—
|
|
0.8
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP other expense,
net
|
(0.5)
|
-0.4 %
|
(0.5)
|
-0.5 %
|
(1.9)
|
-0.4 %
|
(1.9)
|
-0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax provision
(benefit)
|
$ (0.9)
|
-0.7 %
|
$ (2.2)
|
-2.0 %
|
$ 14.1
|
3.1 %
|
$ (3.8)
|
-0.8 %
|
|
Adjustment to reflect zero
percent pro forma tax rate
|
0.9
|
|
2.2
|
|
(14.1)
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income tax
provision
|
—
|
0.0 %
|
—
|
0.0 %
|
—
|
0.0 %
|
—
|
0.0 %
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from continuing
operations
|
$ (6.2)
|
-5.1 %
|
$ (80.7)
|
-75.0 %
|
$ (58.8)
|
-13.0 %
|
$ (108.4)
|
-23.3 %
|
|
Share-based
compensation
|
1.4
|
1.2 %
|
1.2
|
1.1 %
|
4.7
|
1.0 %
|
3.1
|
0.7 %
|
|
Excess and obsolete inventory
associated with legacy products
|
3.3
|
2.7 %
|
—
|
0.0 %
|
6.6
|
1.5 %
|
—
|
0.0 %
|
|
Amortization of PPE step-up
value
|
—
|
0.0 %
|
—
|
0.0 %
|
0.2
|
0.0 %
|
0.6
|
0.1 %
|
|
Charges for product
transition
|
—
|
0.0 %
|
—
|
0.0 %
|
—
|
0.0 %
|
16.9
|
3.6 %
|
|
Gain from sale of manufacturing
facilities
|
—
|
0.0 %
|
(1.0)
|
-0.9 %
|
—
|
0.0 %
|
(1.0)
|
-0.2 %
|
|
Amortization of purchased
technology
|
0.2
|
0.2 %
|
1.7
|
1.6 %
|
0.7
|
0.2 %
|
7.2
|
1.5 %
|
|
Rebranding and transitional
costs
|
—
|
0.0 %
|
5.5
|
5.1 %
|
0.9
|
0.2 %
|
8.5
|
1.8 %
|
|
Other
|
(0.9)
|
-0.7 %
|
—
|
0.0 %
|
(0.9)
|
-0.2 %
|
—
|
0.0 %
|
|
Amortization of intangible
assets
|
0.7
|
0.6 %
|
0.9
|
0.8 %
|
2.8
|
0.6 %
|
5.0
|
1.1 %
|
|
Property, plant, and equipment
impairment charges
|
—
|
0.0 %
|
8.7
|
8.1 %
|
—
|
0.0
%
|
8.7
|
1.9 %
|
|
Intangible assets and trade name
impairment charges
|
—
|
0.0 %
|
57.7
|
53.6 %
|
—
|
0.0 %
|
57.7
|
12.4 %
|
|
Restructuring charges
|
2.0
|
1.7 %
|
3.8
|
3.5 %
|
15.4
|
3.4 %
|
7.1
|
1.5 %
|
|
Loss on sale of NetBoss
assets
|
0.2
|
0.2 %
|
—
|
0.0 %
|
4.6
|
1.0 %
|
—
|
0.0 %
|
|
Gain on settlement of Telsima
purchase price
|
—
|
0.0 %
|
(1.2)
|
-1.1 %
|
—
|
0.0 %
|
(1.2)
|
-0.3 %
|
|
Transactional taxes
assessments
|
2.3
|
1.9 %
|
—
|
0.0 %
|
2.8
|
0.6 %
|
—
|
0.0 %
|
|
Costs related to liquidation of
foreign subsidiaries
|
0.8
|
0.7 %
|
—
|
0.0 %
|
0.8
|
0.2 %
|
—
|
0.0 %
|
|
Adjustment to reflect zero
percent pro forma tax rate
|
(0.9)
|
-0.7 %
|
(2.2)
|
-2.0 %
|
14.1
|
3.1 %
|
(3.8)
|
-0.8 %
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) from
continuing operations
|
$ 2.9
|
2.4 %
|
$ (5.6)
|
-5.2 %
|
$ (6.1)
|
-1.3 %
|
$ 0.4
|
0.1 %
|
|
|
|
Basic and
diluted income (loss) per share from continuing
operations
|
|
GAAP
|
$ (0.11)
|
|
$ (1.35)
|
|
$ (1.00)
|
|
$ (1.82)
|
|
|
Non-GAAP
|
$ 0.05
|
|
$ (0.09)
|
|
$ (0.10)
|
|
$ 0.01
|
|
|
|
|
|
|
|
|
Shares used in computing income
(loss) per share from continuing operations, basic and
diluted
|
|
GAAP
|
58.8
|
|
59.7
|
|
58.6
|
|
59.4
|
|
|
Non-GAAP
|
60.6
|
|
59.7
|
|
58.6
|
|
59.4
|
|
|
Notes to Table 4:
(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, gain from
sale of manufacturing facilities, amortization of purchased
technology, rebranding and transitional services in connection with
the corporate name change and relocation, amortization of
intangible assets, property, plant, and equipment impairment
charges, intangible assets and trade name impairment charges,
restructuring charges, loss on sale of NetBoss assets, gain on
settlement of Telsima purchase price, transactional taxes
assessments, costs related to liquidation of foreign subsidiaries,
adjustment to reflect zero percent pro forma tax rate, and other
non-recurring items. 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 Fourth Quarter and Year-to-Date Summary
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
Fiscal
Year Ended
|
|
|
July 1,
|
July 2,
|
July 1,
|
July 2,
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
(In
millions)
|
|
|
North America
|
$ 42.2
|
$ 38.0
|
$ 160.4
|
$ 174.8
|
|
International:
|
|
|
|
|
|
Africa
|
44.9
|
37.6
|
114.9
|
122.3
|
|
Europe, Middle East, and
Russia
|
16.8
|
16.2
|
102.1
|
86.9
|
|
Latin America and
AsiaPac
|
17.0
|
15.8
|
74.7
|
81.5
|
|
|
|
|
|
|
|
Total
International
|
78.7
|
69.6
|
291.7
|
290.7
|
|
|
|
|
|
|
|
|
$ 120.9
|
$ 107.6
|
$ 452.1
|
$ 465.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Aviat Networks, Inc.