SANTA CLARA, Calif.,
Feb. 1, 2012 /PRNewswire/ -- Aviat
Networks, Inc. (NASDAQ: AVNW), a leading expert in wireless
transmission solutions, today reported financial results for the
second quarter of fiscal year 2012, which ended December 30, 2011.
Financial Highlights for Q2FY12
- Book to Bill above 1
- Revenue for the quarter was within guidance at $105M
- GAAP Gross Margin of 30.4%; Non-GAAP Gross Margin of 31.4%
- GAAP Net Loss including discontinued operations of $(12.8M) or $(0.22)
per share; Breakeven Non-GAAP Earnings per share
- Generated positive cash flow in core business
GAAP Financial Results
For the second quarter of fiscal year 2012, revenue was
$105.0 million, compared with
$115.3 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 $(12.8) million or
$(0.22) per share, compared with a
net loss of $(12.5) million or
$(0.21) per share in the year-ago
quarter. Loss from continuing operations was $(10.0) million or $(0.17) per share compared with the loss from
continuing operations of $(10.0)
million or $(0.17) per share
in the year-ago quarter.
Cash and cash equivalents were $84.3
million as of December 30,
2011 compared with $87.6
million as of the end of the prior quarter.
Non-GAAP Financial Results
Non-GAAP income from continuing operations for the quarter was
$0.3 million or $0.00 per share, compared with a non-GAAP income
from continuing operations of $2.4
million, or $0.04 per share,
in the year ago quarter.
The second quarter of fiscal year 2012 non-GAAP results exclude
$9.5 million of pre-tax charges
composed primarily of the following:
- $5.6 million of goodwill
impairment charges
- $0.9 million write-off of
deferred inventory costs associated with a legacy product line
- $1.3 million for share-based
compensation expense
- $0.8 million for the amortization
of purchased intangibles
- $0.3 million for transactional
tax assessments
- $0.1 million of restructuring
charges
The second quarter of fiscal year 2012 non-GAAP results also
exclude an income tax provision of $0.8
million. Loss from discontinued operations, net of taxes was
$2.8 million for the quarter.
A reconciliation of GAAP to non-GAAP financial measures for the
quarter comparison with the year ago period is provided on Table 4
along with the accompanying notes.
Second Quarter Revenue by Segment (excluding discontinued
operations)
Revenue in the North America
segment was $44.2 million in the
second quarter of fiscal 2012, compared with $40.3 million in the year ago quarter and
$37.1 million in the prior quarter.
International revenue was $60.8
million, compared with $75.0
million in the year ago quarter and $74.3 million in the prior quarter.
"We are pleased with another solid quarter across the board,"
said Michael Pangia, president and
CEO, Aviat Networks. "Our global team executed as planned and we
overcame the challenges in Thailand from the recent flooding. Given the
progress and momentum we have made in meeting our commitments in
the first half of our fiscal year 2012, we are confident that we
are on track to meet our key objectives during the remainder of
this year."
Outlook
Based on current trends, the third fiscal quarter revenue
outlook range is $100 to $110
million. Gross margins in the quarter are expected to
be in the range of 29.5% – 30.5%. Operating expenses should run in
the $31.5M - $32.5M range and cash
flow should be in the range of -$2M
to +$2M.
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 480-629-9771 or toll free at 877-762-8779 access code 4503833
at approximately 4:20 p.m. Eastern
Time. A replay also will be available starting
approximately one hour after the completion of the call until
February 8, 2012. To access the
replay, dial 303-590-3030 or toll free at 800-406-7325 access code
4503833. 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, 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 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;
- 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 12, 2011 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
2012 Second Quarter Summary
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
Two Quarters Ended
|
|
December
30,
2011
|
|
December
31,
2010 (1)
|
|
December
30,
2011
|
|
December
31,
2010 (1)
|
|
(In
millions, except per share amounts)
|
|
Revenue from product sales and
services
|
|
$
|
105.0
|
|
|
$
|
115.3
|
|
|
$
|
216.4
|
|
|
$
|
215.7
|
|
|
Cost of product sales and
services
|
|
73.0
|
|
|
77.8
|
|
|
151.5
|
|
|
151.7
|
|
|
Amortization of purchased
technology
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
Gross margin
|
|
31.9
|
|
|
37.4
|
|
|
64.6
|
|
|
63.7
|
|
|
Research and development
expenses
|
|
8.8
|
|
|
11.2
|
|
|
17.8
|
|
|
20.9
|
|
|
Selling and administrative
expenses
|
|
25.3
|
|
|
25.1
|
|
|
49.9
|
|
|
53.5
|
|
|
Amortization of intangible
assets
|
|
0.7
|
|
|
0.7
|
|
|
1.4
|
|
|
1.4
|
|
|
Goodwill impairment
charges
|
|
5.6
|
|
|
—
|
|
|
5.6
|
|
|
—
|
|
|
Restructuring charges
|
|
0.1
|
|
|
3.4
|
|
|
1.0
|
|
|
9.0
|
|
|
Operating loss
|
|
(8.6)
|
|
|
(3.0)
|
|
|
(11.1)
|
|
|
(21.1)
|
|
|
Loss on sale of NetBoss
assets
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
(4.4)
|
|
|
Other expenses
|
|
(0.3)
|
|
|
(0.5)
|
|
|
(0.3)
|
|
|
(0.5)
|
|
|
Interest income
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
0.1
|
|
|
Interest expense
|
|
(0.4)
|
|
|
(0.7)
|
|
|
(0.8)
|
|
|
(1.3)
|
|
|
Loss from continuing operations
before income taxes
|
|
(9.2)
|
|
|
(4.7)
|
|
|
(11.9)
|
|
|
(27.2)
|
|
|
Provision for (benefit from)
income taxes
|
|
0.8
|
|
|
5.3
|
|
|
1.8
|
|
|
(0.2)
|
|
|
Loss from continuing
operations
|
|
(10.0)
|
|
|
(10.0)
|
|
|
(13.7)
|
|
|
|
(27.0)
|
|
|
Loss from discontinued
operations, net of tax
|
|
(2.8)
|
|
|
(2.5)
|
|
|
(5.9)
|
|
|
|
(6.8)
|
|
|
Net loss
|
|
$
|
(12.8)
|
|
|
$
|
(12.5)
|
|
|
$
|
(19.6)
|
|
|
$
|
(33.8)
|
|
|
Basic and diluted net loss per
common share:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
(0.17)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.46)
|
|
|
Discontinued
operations
|
|
$
|
(0.05)
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.12)
|
|
|
Net loss per common
share
|
|
$
|
(0.22)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.58)
|
|
|
Basic and diluted weighted average shares outstanding
|
|
59.0
|
|
|
58.4
|
|
|
58.9
|
|
|
58.4
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. Prior year period results are reclassified to
conform to current period presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
2
AVIAT
NETWORKS, INC.
Fiscal Year
2012 Second Quarter Summary
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
December 30, 2011
|
|
July 1,2011
|
|
|
|
(In
millions)
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
84.3
|
|
|
$
|
98.2
|
|
|
Receivables, net
|
|
113.7
|
|
|
133.0
|
|
|
Unbilled costs
|
|
25.8
|
|
|
24.8
|
|
|
Inventories
|
|
42.3
|
|
|
50.6
|
|
|
Customer service
inventories
|
|
19.5
|
|
|
21.2
|
|
|
Other current assets
|
|
18.0
|
|
|
22.5
|
|
|
Property, plant and equipment,
net
|
|
22.0
|
|
|
21.6
|
|
|
Goodwill
|
|
—
|
|
|
5.6
|
|
|
Identifiable intangible assets,
net
|
|
2.3
|
|
|
4.1
|
|
|
Other assets
|
|
1.9
|
|
|
2.3
|
|
|
|
|
$
|
329.8
|
|
|
$
|
383.9
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
Short-term debt
|
|
$
|
6.0
|
|
|
$
|
6.0
|
|
|
Accounts payable
|
|
42.3
|
|
|
70.3
|
|
|
Redeemable preference
shares
|
|
8.3
|
|
|
8.3
|
|
|
Accrued
expenses and other current liabilities
|
|
105.0
|
|
|
112.5
|
|
|
Reserve for uncertain tax positions
and other long-term liabilities
|
|
8.7
|
|
|
9.1
|
|
|
Stockholders' equity
|
|
159.5
|
|
|
177.7
|
|
|
|
|
$
|
329.8
|
|
|
$
|
383.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
AVIAT
NETWORKS, INC.
Fiscal Year
2012 Second Quarter Summary
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Two
Quarters Ended
|
|
|
December 30,
2011
|
|
December 31,
2010 (1)
|
|
|
(In
millions)
|
|
Net loss
|
|
$
|
(19.6)
|
|
|
$
|
(33.8)
|
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Amortization
of identifiable intangible assets
|
|
1.7
|
|
|
1.7
|
|
|
Goodwill
impairment charges
|
|
5.6
|
|
|
—
|
|
|
Depreciation
and amortization of property, plant and
equipment and capitalized software
|
|
2.1
|
|
|
4.2
|
|
|
Bad debt
expenses
|
|
1.9
|
|
|
0.9
|
|
|
Share-based
compensation expense
|
|
2.3
|
|
|
2.1
|
|
|
Deferred
income tax (benefit) expense
|
|
—
|
|
|
(7.5)
|
|
|
Inventory
write-downs
|
|
2.6
|
|
|
10.4
|
|
|
Loss on held
for sale assets, net
|
|
2.0
|
|
|
—
|
|
|
Loss on sale
of NetBoss assets
|
|
—
|
|
|
4.4
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Receivables
|
|
17.4
|
|
|
(39.8)
|
|
|
Unbilled
costs
|
|
(1.0)
|
|
|
(0.6)
|
|
|
Inventories
|
|
7.2
|
|
|
(10.3)
|
|
|
Customer
service inventories
|
|
0.3
|
|
|
(2.2)
|
|
|
Accounts
payable
|
|
(28.0)
|
|
|
23.7
|
|
|
Accrued
expenses
|
|
1.8
|
|
|
(1.4)
|
|
|
Advance
payments and unearned income
|
|
(8.7)
|
|
|
3.7
|
|
|
Income taxes
payable or receivable
|
|
1.1
|
|
|
7.0
|
|
|
Restructuring liabilities and other assets and
liabilities
|
|
3.8
|
|
|
(3.0)
|
|
|
Net cash used in operating
activities
|
|
(7.5)
|
|
|
(40.5)
|
|
|
Investing
Activities
|
|
|
|
|
|
Cash received from sale
of NetBoss assets
|
|
—
|
|
|
3.8
|
|
|
Cash disbursed related to
sale of WiMAX business
|
|
(1.2)
|
|
|
—
|
|
|
Additions of property,
plant and equipment
|
|
(3.4)
|
|
|
(3.4)
|
|
|
Additions of capitalized
software
|
|
—
|
|
|
(0.7)
|
|
|
Net cash used in investing
activities
|
|
(4.6)
|
|
|
(0.3)
|
|
|
Financing
Activities
|
|
|
|
|
|
Proceeds from short-term
debt arrangement
|
|
—
|
|
|
6.0
|
|
|
Payments on short-term
debt arrangement
|
|
—
|
|
|
(5.0)
|
|
|
Net cash provided by financing
activities
|
|
—
|
|
|
1.0
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
|
(1.8)
|
|
|
0.5
|
|
|
Net decrease in cash and cash
equivalents
|
|
(13.9)
|
|
|
(39.3)
|
|
|
Cash and cash equivalents,
beginning of period
|
|
98.2
|
|
|
141.7
|
|
|
Cash and cash equivalents, end
of period
|
|
$
|
84.3
|
|
|
$
|
102.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVIAT
NETWORKS, INC.
Quarter
Ended December 30, 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
2012 Second Quarter Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (2)
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
Two Quarters
Ended
|
|
|
|
December 30,
2011
|
|
%
of
Revenue
|
|
December 31,
2010(1)
|
|
%
of
Revenue
|
|
December 30,
2011
|
|
%
of
Revenue
|
|
December 31,
2010(1)
|
|
%
of
Revenue
|
|
|
|
(In
millions, except per share amounts)
|
|
GAAP gross margin
|
|
$
|
31.9
|
|
|
30.4
|
%
|
|
$
|
37.4
|
|
|
32.4
|
%
|
|
$
|
64.6
|
|
|
29.9
|
%
|
|
$
|
63.7
|
|
|
29.5
|
%
|
|
Share-based compensation
|
|
0.1
|
|
|
|
|
0.1
|
|
|
|
|
0.2
|
|
|
|
|
0.2
|
|
|
|
|
Write-off of deferred inventory and E&O costs
|
|
0.9
|
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
|
|
Amortization of purchased technology
|
|
0.1
|
|
|
|
|
0.1
|
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
|
|
|
Non-GAAP gross margin
|
|
33.0
|
|
|
31.4
|
%
|
|
37.6
|
|
|
32.6
|
%
|
|
66.1
|
|
|
30.5
|
%
|
|
64.2
|
|
|
29.8
|
%
|
|
GAAP research and development expenses
|
|
$
|
8.8
|
|
|
8.4
|
%
|
|
$
|
11.2
|
|
|
9.7
|
%
|
|
$
|
17.8
|
|
|
8.2
|
%
|
|
$
|
20.9
|
|
|
9.7
|
%
|
|
Share-based compensation
|
|
(0.3)
|
|
|
|
|
(0.7)
|
|
|
|
|
(0.5)
|
|
|
|
|
(0.9)
|
|
|
|
|
Non-GAAP research and development expenses
|
|
8.5
|
|
|
8.1
|
%
|
|
10.5
|
|
|
9.1
|
%
|
|
17.3
|
|
|
8.0
|
%
|
|
20.0
|
|
|
9.3
|
%
|
|
GAAP selling and administrative expenses
|
|
$
|
25.3
|
|
|
24.1
|
%
|
|
$
|
25.1
|
|
|
21.8
|
%
|
|
$
|
49.9
|
|
|
23.1
|
%
|
|
$
|
53.5
|
|
|
24.8
|
%
|
|
Share-based compensation
|
|
(0.9)
|
|
|
|
|
(0.4)
|
|
|
|
|
(1.5)
|
|
|
|
|
(0.9)
|
|
|
|
|
Rebranding and transitional services
|
|
—
|
|
|
|
|
(0.7)
|
|
|
|
|
—
|
|
|
|
|
(0.9)
|
|
|
|
|
Other nonrecurring charges
|
|
(0.5)
|
|
|
|
|
—
|
|
|
|
|
(0.5)
|
|
|
|
|
—
|
|
|
|
|
Non-GAAP selling and administrative expenses
|
|
23.9
|
|
|
22.8
|
%
|
|
24.0
|
|
|
20.8
|
%
|
|
47.9
|
|
|
22.1
|
%
|
|
51.7
|
|
|
24.0
|
%
|
|
GAAP operating loss
|
|
$
|
(8.6)
|
|
|
(8.2)
|
%
|
|
$
|
(3.0)
|
|
|
(2.6)
|
%
|
|
$
|
(11.1)
|
|
|
(5.1)
|
%
|
|
$
|
(21.1)
|
|
|
(9.8)
|
%
|
|
Share-based compensation
|
|
1.3
|
|
|
|
|
1.2
|
|
|
|
|
2.2
|
|
|
|
|
2.0
|
|
|
|
|
Write-off of deferred inventory and E&O costs
|
|
0.9
|
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
|
|
Amortization of purchased technology
|
|
0.1
|
|
|
|
|
0.1
|
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
|
|
|
Rebranding and transitional services
|
|
—
|
|
|
|
|
0.7
|
|
|
|
|
—
|
|
|
|
|
0.9
|
|
|
|
|
Other nonrecurring charges
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
Amortization of intangible assets
|
|
0.7
|
|
|
|
|
0.7
|
|
|
|
|
1.4
|
|
|
|
|
1.4
|
|
|
|
|
Goodwill impairment charges
|
|
5.6
|
|
|
|
|
—
|
|
|
|
|
5.6
|
|
|
|
|
—
|
|
|
|
|
Restructuring charges
|
|
0.1
|
|
|
|
|
3.4
|
|
|
|
|
1.0
|
|
|
|
|
9.0
|
|
|
|
|
Non-GAAP operating income (loss)
|
|
0.6
|
|
|
0.6
|
%
|
|
3.1
|
|
|
2.7
|
%
|
|
0.9
|
|
|
0.4
|
%
|
|
(7.5)
|
|
|
(3.5)
|
%
|
|
GAAP other expense, net
|
|
$
|
(0.6)
|
|
|
(0.6)
|
%
|
|
$
|
(1.7)
|
|
|
(1.5)
|
%
|
|
$
|
(0.8)
|
|
|
(0.4)
|
%
|
|
$
|
(6.1)
|
|
|
(2.8)
|
%
|
|
Loss on sale of NetBoss assets
|
|
—
|
|
|
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
4.4
|
|
|
|
|
Transactional taxes assessments
|
|
0.3
|
|
|
|
|
0.5
|
|
|
|
|
0.3
|
|
|
|
|
0.5
|
|
|
|
|
Non-GAAP other expense, net
|
|
(0.3)
|
|
|
(0.3)
|
%
|
|
(0.7)
|
|
|
(0.6)
|
%
|
|
(0.5)
|
|
|
(0.2)
|
%
|
|
(1.2)
|
|
|
(0.6)
|
%
|
|
GAAP income tax provision (benefit)
|
|
$
|
0.8
|
|
|
0.8
|
%
|
|
$
|
5.3
|
|
|
4.6
|
%
|
|
$
|
1.8
|
|
|
0.8
|
%
|
|
$
|
(0.2)
|
|
|
(0.1)
|
%
|
|
Adjustment to reflect zero percent pro forma tax rate
|
|
(0.8)
|
|
|
|
|
(5.3)
|
|
|
|
|
(1.8)
|
|
|
|
|
0.2
|
|
|
|
|
Non-GAAP income tax provision
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
GAAP loss from continuing operations
|
|
$
|
(10.0)
|
|
|
(9.5)
|
%
|
|
$
|
(10.0)
|
|
|
(8.7)
|
%
|
|
$
|
(13.7)
|
|
|
(6.3)
|
%
|
|
$
|
(27.0)
|
|
|
(12.5)
|
%
|
|
Share-based compensation
|
|
1.3
|
|
|
|
|
1.2
|
|
|
|
|
2.2
|
|
|
|
|
2.0
|
|
|
|
|
Write-off of deferred inventory and E&O costs
|
|
0.9
|
|
|
|
|
—
|
|
|
|
|
1.0
|
|
|
|
|
—
|
|
|
|
|
Amortization of purchased technology
|
|
0.1
|
|
|
|
|
0.1
|
|
|
|
|
0.3
|
|
|
|
|
0.3
|
|
|
|
|
Rebranding and transitional services
|
|
—
|
|
|
|
|
0.7
|
|
|
|
|
—
|
|
|
|
|
0.9
|
|
|
|
|
Other nonrecurring charges
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
Amortization of intangible assets
|
|
0.7
|
|
|
|
|
0.7
|
|
|
|
|
1.4
|
|
|
|
|
1.4
|
|
|
|
|
Goodwill impairment charges
|
|
5.6
|
|
|
|
|
—
|
|
|
|
|
5.6
|
|
|
|
|
—
|
|
|
|
|
Restructuring charges
|
|
0.1
|
|
|
|
|
3.4
|
|
|
|
|
1.0
|
|
|
|
|
9.0
|
|
|
|
|
Loss on sale of NetBoss assets
|
|
—
|
|
|
|
|
0.5
|
|
|
|
|
—
|
|
|
|
|
4.4
|
|
|
|
|
Transactional taxes assessments
|
|
0.3
|
|
|
|
|
0.5
|
|
|
|
|
0.3
|
|
|
|
|
0.5
|
|
|
|
|
Adjustment to reflect zero percent pro forma tax rate
|
|
0.8
|
|
|
|
|
5.3
|
|
|
|
|
1.8
|
|
|
|
|
(0.2)
|
|
|
|
|
Non-GAAP income (loss) from continuing operations
|
|
$
|
0.3
|
|
|
0.3
|
%
|
|
$
|
2.4
|
|
|
2.1
|
%
|
|
$
|
0.4
|
|
|
0.2
|
%
|
|
$
|
(8.7)
|
|
|
(4.0)
|
%
|
|
Basic and diluted income (loss)
per share from continuing operations
|
|
GAAP
|
|
$
|
(0.17)
|
|
|
|
|
$
|
(0.17)
|
|
|
|
|
$
|
(0.23)
|
|
|
|
|
$
|
(0.46)
|
|
|
|
|
Non-GAAP
|
|
$
|
—
|
|
|
|
|
$
|
0.04
|
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.15)
|
|
|
|
|
Shares used in computing income
(loss) per share from continuing operations, basic and
diluted
|
|
GAAP
|
|
59.0
|
|
|
|
|
58.4
|
|
|
|
|
58.9
|
|
|
|
|
58.4
|
|
|
|
|
Non-GAAP
|
|
61.1
|
|
|
|
|
59.0
|
|
|
|
|
60.7
|
|
|
|
|
59.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 year period results have
been reclassified to conform to current period
presentation.
|
|
(2)
|
The adjustments above reconcile
our GAAP financial results to the non-GAAP financial measures used
by us. Our non-GAAP financial measures exclude share-based
compensation, write-off of deferred inventory and excess and
obsolete inventory, amortization of purchased technology,
amortization of intangible assets, goodwill impairment charges,
restructuring charges, loss on sale of NetBoss assets,
transactional tax assessments and adjustment to reflect zero
percent pro forma tax rate. 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
5
AVIAT
NETWORKS, INC.
Fiscal Year
2012 Second Quarter Summary
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
Two Quarters Ended
|
|
|
|
December
30,
2011
|
|
December
31,
2010
|
|
December
30,
2011
|
|
December
31,
2010
|
|
|
|
|
|
(In
millions)
|
|
|
|
North America
|
|
$
|
44.2
|
|
|
$
|
40.3
|
|
|
$
|
81.2
|
|
|
$
|
75.6
|
|
|
International:
|
|
|
|
|
|
|
|
|
|
Africa and Middle
East
|
|
24.0
|
|
|
28.6
|
|
|
66.7
|
|
|
59.1
|
|
|
Europe and Russia
|
|
15.8
|
|
|
28.4
|
|
|
28.2
|
|
|
46.1
|
|
|
Latin America and
AsiaPac
|
|
21.0
|
|
|
18.0
|
|
|
40.3
|
|
|
34.9
|
|
|
Total
International
|
|
60.8
|
|
|
75.0
|
|
|
135.2
|
|
|
140.1
|
|
|
|
|
$
|
105.0
|
|
|
$
|
115.3
|
|
|
$
|
216.4
|
|
|
$
|
215.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Aviat Networks, Inc.