AUSTIN, Texas, May 5, 2021 /PRNewswire/ -- Aviat Networks,
Inc. ("Aviat Networks," "Aviat," or the "Company"), (NASDAQ: AVNW),
the leading expert in wireless transport solutions, today reported
financial results for its fiscal 2021 third quarter ended
April 2, 2021.
Third Quarter Highlights
- Company continues to execute on key long-term strategic
objectives resulting in continued year-over-year increase in
quarterly revenues and Adjusted EBITDA.
- Solid balance sheet and liquidity helps position Company to
execute on long-term plans.
- Company introduced new software on the Aviat WTM4000 radio
platform which doubles the capacity of a microwave link without the
need for additional equipment for our customers.
Third Quarter Financial Highlights
- Total Revenues: $66.4 million, +8.2% from same
quarter last year
-
- North America:
$42.0 million, +12.8% from same
quarter last year
- International: $24.4
million, +1.1% from same quarter last year
- GAAP Results: Gross Margin 38.5%; Operating Expenses
$21.5 million; Operating Income
$4.0 million, Net Income $94.7 million; Net Income per diluted share ("Net
Income per share") $8.00
- Non-GAAP Results: Adjusted EBITDA $7.3 million; Gross Margin 38.7%; Operating
Expenses $19.7 million; Operating
Income $6.0 million; Net Income
$5.8 million; Net Income per share
$0.49
- Net Cash: $45.8 million, +$2.8 million from
prior sequential quarter; No loans outstanding at quarter-end
"This was another successful quarter and the first nine months
of fiscal 2021 for Aviat," said Peter
Smith, President and Chief Executive Officer of Aviat.
"We continued to execute on our key long-term focus areas of sales
growth, margin expansion, expense reductions and meaningful
bottom-line improvements. We continue to demonstrate Aviat's
differentiation in our multi-band transport solution for 5G,
Private Networks and Rural Broadband, capturing share of demand and
demonstrating the viability of our offering."
Mr. Smith continued, "Our unique, multi-band hardware and
software solutions recently led to Aviat being selected by Dish
Networks, a U.S.-based Tier 1 5G operator as a key microwave
transport vendor. In addition, with recent wins with LTD Broadband
and Nextlink Internet, Aviat has increased its share of demand in
Rural Broadband. We believe we are well-positioned in a market that
is expected to benefit from meaningful government funding,
including the $9 billion 5G Fund for
Rural America and the $20 billion
Rural Digital Opportunity Fund. As an American company, Aviat is
proud to deliver broadband connectivity to rural America, enabling
economic, social, healthcare, and educational opportunities for all
Americans."
Mr. Smith concluded, "With the introduction of new software on
the WTM4000 radio platform, we have demonstrated our commitment to
invest in software solutions which we believe will lower our
customers' total costs of ownership."
Fiscal 2021 Third Quarter and Nine Month Comparisons
Revenues
The Company reported total revenues of
$66.4 million for its fiscal 2021
third quarter, compared to $61.4
million in the comparable fiscal 2020 period, an increase of
$5.0 million or 8.2%. North America revenue of $42.0 million increased by $4.8 million or 12.8%, compared to $37.3 million in the comparable fiscal 2020
period. International revenue was $24.4
million and returned to growth from $24.1 million in the comparable fiscal 2020
period.
For the nine months ended April 2, 2021, the Company
reported total revenues of $203.2
million, as compared to $176.0
million in the comparable fiscal 2020 period. North America revenue of $136.7 million increased by $23.2 million or 20.4%, as compared to
$113.5 million in the comparable
fiscal 2020 period. International revenue of $66.5 million for the fiscal 2021
nine-month period increased by $4.0
million or 6.5%, as compared to $62.5
million in the comparable fiscal 2020 period.
Gross Margins
In the fiscal 2021 third quarter, the
Company reported GAAP gross margin of 38.5% and non-GAAP gross
margin of 38.7%. This compares to GAAP gross margin of 35.8% and
non-GAAP gross margin of 35.9% in the comparable fiscal 2020
period, an improvement of 270 and 280 basis points,
respectively.
For the nine months ended April 2, 2021, the Company
reported GAAP gross margin of 37.8% and non-GAAP gross margin of
37.9%. This compares to GAAP gross margin of 35.7% and non-GAAP
gross margin of 35.8% in the comparable fiscal 2020 period, an
improvement of 210 basis points in each case.
Operating Expenses
GAAP total operating expenses for
the fiscal 2021 third quarter were $21.5
million, compared to $20.7
million in the comparable fiscal 2020 period, an increase of
$0.8 million or 3.9% due to
restructuring charges. Non-GAAP total operating expenses, excluding
the impact of share-based compensation, for the fiscal 2021 third
quarter and the comparable fiscal 2020 period were both
$19.7 million,
respectively.
The Company reported GAAP total operating expenses for the
fiscal 2021 nine-month period of $58.3
million, as compared to $61.6
million in the comparable fiscal 2020 period, a decrease of
$3.3 million or 5.4%. On a non-GAAP
basis, excluding the impact of restructuring charges and
share-based compensation, total operating expenses for the fiscal
2021 nine-month period were $55.2
million, as compared to $58.2
million in the fiscal 2020 period, a decrease of
$3.0 million or 5.2%.
Operating Income
The Company reported GAAP operating
income of $4.0 million for the fiscal
2021 third quarter, compared to $1.2
million in the comparable fiscal 2020 period. On a non-GAAP
basis, the Company reported operating income of $6.0 million for the fiscal 2021 third quarter,
compared to $2.4 million in the
comparable fiscal 2020 period.
For the fiscal 2021 nine-month period, the Company reported
$18.5 million in GAAP operating
income, as compared to $1.3 million
in the comparable fiscal 2020 period. On a non-GAAP basis, the
Company reported operating income of $21.8
million, compared to $4.7
million in the comparable fiscal 2020 period.
Income Taxes
The Company reported a GAAP income tax
benefit of $90.6 million in the
fiscal 2021 third quarter primarily due to the release of
$92.2 million in U.S. valuation
allowance as the Company anticipates on a more-likely-than-not
basis that its U.S. operations will have sufficient profits to
utilize the deferred tax assets in the foreseeable future. On
a non-GAAP basis, the Company will continue to report cash taxes
paid in its foreign jurisdictions under the respective transfer
pricing agreements.
Net Income / Net Income Per Share
The Company
reported GAAP net income of $94.7
million in the fiscal 2021 third quarter or GAAP net income
per share of $8.00. This compared to
GAAP net income of $0.7 million or
GAAP net income per share of $0.07 in
the comparable fiscal 2020 period. GAAP net income in the fiscal
2021 third quarter was favorably impacted by a release of US
valuation allowance of $92.2 million.
On a non-GAAP basis, the Company reported net income of
$5.8 million or a non-GAAP net income
per share of $0.49, compared to a
non-GAAP net income of $2.2 million
or non-GAAP net income per share of $0.20 in the comparable fiscal 2020 period.
The Company reported GAAP net income of $107.3 million for the fiscal 2021
nine-month period, or GAAP net income per share of
$9.31. This compared to GAAP net loss
of $(0.9) million or GAAP net loss
per share of $(0.08) in the
comparable fiscal 2020 period. On a non-GAAP basis, the Company
reported net income of $21.1 million
or net income per share of $1.83, as
compared to non-GAAP net income of $4.1
million or $0.38 net income
per share in the comparable fiscal 2020 period.
On April 7, 2021, we effected a
two-for-one split in the form of a stock dividend to shareholders
of record as of April 1, 2021. Common
stock, Additional paid-in-capital, and per share for all periods
presented have been retrospectively reclassified to reflect the
two-for-one stock split in the form of a stock dividend.
Adjusted EBITDA
Adjusted earnings before interest,
tax, depreciation and amortization ("Adjusted EBITDA") for the
fiscal 2021 third quarter was $7.3
million, compared to $3.5
million in the comparable fiscal 2020 period, a
year-over-year improvement of $3.8
million.
For the fiscal 2021 nine-month period, the Company reported
Adjusted EBITDA of $25.8 million, as
compared to $8.0 million in the
comparable fiscal 2020 period.
Balance Sheet Highlights
The Company reported cash
and cash equivalents as of $45.8
million as of April 2, 2021, compared to $43.0 million as of January 1, 2021. The
Company has no loans outstanding. In the third quarter the Company
increased its inventory by $4.3
million to build safety stock to mitigate supply chain
challenges.
Conference Call Details
Aviat Networks will host a
conference call at 5:00 p.m. Eastern
Time (ET) today, May 5, 2021,
to discuss its financial and operational results for the fiscal
2021 third quarter. Participating on the call will be Peter Smith, President and Chief Executive
Officer; Eric Chang, Chief Financial
Officer; and Keith Fanneron, Vice
President Global Finance and Investor Relations. Following
management's remarks, there will be a question and answer
period.
To listen to the live conference call, please dial toll-free
(US/CAN) 866-465-7577 or toll-free (INTL) 786-815-8431, conference
ID: 7984966. We ask that you dial-in approximately 10 minutes prior
to the start time. Additionally, participants are invited to listen
via webcast, which will be broadcast live and via replay
approximately two hours after the call is completed at
http://investors.aviatnetworks.com/events-and-presentations/events.
About Aviat Networks
Aviat Networks, Inc. is the leading expert in wireless
transport solutions and works to provide dependable products,
services and support to its customers. With more than one million
systems sold in 170 countries worldwide, communications service
providers and private network operators including state/local
government, utility, federal government and defense organizations
trust Aviat with their critical applications. Coupled with a long
history of microwave innovations, Aviat provides a comprehensive
suite of localized professional and support services enabling
customers to simplify both their networks and their lives. For more
than 70 years, the experts at Aviat have delivered high-performance
products, simplified operations, and the best overall customer
experience. Aviat Networks is headquartered
in Austin, Texas. For more
information, visit www.aviatnetworks.com or connect
with Aviat
Networks on Twitter, Facebook and LinkedIn.
Forward-Looking Statements
The information contained
in this document includes forward-looking statements within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, including Aviat's
beliefs and expectations regarding business conditions, new product
solutions, customer positioning, revenue, future orders, bookings,
new contracts, cost structure, operating income, profitability in
fiscal 2021, process improvements, realignment plans and review of
strategic alternatives. All statements, trend analyses and other
information contained herein regarding the foregoing beliefs and
expectations, as well as about the markets for the services and
products of Aviat and trends in revenue, and other statements
identified by the use of forward-looking terminology, including
"anticipate," "believe," "plan," "estimate," "expect," "goal,"
"will," "see," "continue," "delivering," "view," and "intend," or
the negative of these terms or other similar expressions,
constitute forward-looking statements. Forward-looking statements
are neither historical facts nor assurances of future performance.
Instead, forward-looking statements are based on estimates
reflecting the current beliefs, expectations and assumptions of the
senior management of Aviat regarding the future of its
business, future plans and strategies, projections, anticipated
events and trends, the economy and other future conditions.
Such 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. Therefore, you should not rely on any of these
forward-looking statements. Important factors that could cause
actual results to differ materially from estimates or projections
contained in the forward-looking statements include the
following:
- the impact of COVID-19 on our business, operations and cash
flows;
- continued price and margin 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 ability to meet financial covenant requirements which could
impact, among other things, our liquidity;
- the timing of our receipt of payment for products or services
from our customers;
- our ability to meet projected new product development dates or
anticipated cost reductions of new products;
- our suppliers' inability to perform and deliver on time as a
result of their financial condition, component shortages, the
effects of COVID-19 or other supply chain constraints;
- customer acceptance of new products;
- the ability of our subcontractors to timely perform;
- 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;
- our failure to protect our intellectual property rights or
defend against intellectual property infringement claims by
others;
- the results of our restructuring efforts;
- the ability to preserve and use our net operating loss
carryforwards;
- the effects of currency and interest rate risks;
- the effects of current and future government regulations,
including the effects of current restrictions on various commercial
and economic activities in response to the COVID-19 pandemic;
- general economic conditions, including uncertainty regarding
the timing, pace and extent of an economic recovery in the United States and other countries where we
conduct business;
- the conduct of unethical business practices in developing
countries;
- the impact of political turmoil in countries where we have
significant business;
- the impact of tariffs, the adoption of trade restrictions
affecting our products or suppliers, a United States withdrawal from or significant
renegotiation of trade agreements, the occurrence of trade wars,
the closing of border crossings, and other changes in trade
regulations or relationships; and
- our ability to implement our stock repurchase program or that
it will enhance long-term stockholder value.
For more information regarding the risks and uncertainties for
Aviat's business, see "Risk Factors" in Aviat's Annual Report on
Form 10-K filed with the U.S. Securities and Exchange
Commission ("SEC") on August 27, 2020 as well as other
reports filed by Aviat with the SEC from time to
time. Aviat undertakes no obligation to update publicly any
forward-looking statement, whether written or oral, for any reason,
except as required by law, even as new information becomes
available or other events occur in the future.
Investor Relations:
Keith
Fanneron
Vice President Global Finance & Investor Relations
Phone: (408) 941-7128
Email: keith.fanneron@aviatnet.com
Table
1
AVIAT NETWORKS,
INC.
Fiscal Year 2021
Third Quarter Summary
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(In thousands, except per share amounts)
|
April 2,
2021
|
|
April 3,
2020
|
|
April 2,
2021
|
|
April 3,
2020
|
Revenues:
|
|
|
|
|
|
|
|
Revenue from product
sales
|
$
|
45,246
|
|
|
$
|
40,930
|
|
|
$
|
136,401
|
|
|
$
|
111,676
|
|
Revenue from
services
|
21,158
|
|
|
20,449
|
|
|
66,824
|
|
|
64,314
|
|
Total
revenues
|
66,404
|
|
|
61,379
|
|
|
203,225
|
|
|
175,990
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of product
sales
|
26,456
|
|
|
24,676
|
|
|
81,823
|
|
|
68,466
|
|
Cost of
services
|
14,370
|
|
|
14,742
|
|
|
44,666
|
|
|
44,688
|
|
Total cost of
revenues
|
40,826
|
|
|
39,418
|
|
|
126,489
|
|
|
113,154
|
|
Gross
margin
|
25,578
|
|
|
21,961
|
|
|
76,736
|
|
|
62,836
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses
|
5,275
|
|
|
4,875
|
|
|
15,541
|
|
|
15,069
|
|
Selling and
administrative expenses
|
15,106
|
|
|
15,233
|
|
|
41,555
|
|
|
44,334
|
|
Restructuring
charges
|
1,162
|
|
|
617
|
|
|
1,162
|
|
|
2,175
|
|
Total operating
expenses
|
21,543
|
|
|
20,725
|
|
|
58,258
|
|
|
61,578
|
|
Operating
income
|
4,035
|
|
|
1,236
|
|
|
18,478
|
|
|
1,258
|
|
Interest
income
|
128
|
|
|
112
|
|
|
202
|
|
|
318
|
|
Interest
expense
|
—
|
|
|
(19)
|
|
|
(1)
|
|
|
(23)
|
|
Income before
income taxes
|
4,163
|
|
|
1,329
|
|
|
18,679
|
|
|
1,553
|
|
(Benefit from)
provision for income taxes
|
(90,568)
|
|
|
598
|
|
|
(88,629)
|
|
|
2,439
|
|
Net income
(loss)
|
$
|
94,731
|
|
|
$
|
731
|
|
|
$
|
107,308
|
|
|
$
|
(886)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per share of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
$
|
8.49
|
|
|
$
|
0.07
|
|
|
$
|
9.76
|
|
|
$
|
(0.08)
|
|
Diluted
|
$
|
8.00
|
|
|
$
|
0.07
|
|
|
$
|
9.31
|
|
|
$
|
(0.08)
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,152
|
|
|
10,790
|
|
|
10,994
|
|
|
10,780
|
|
Diluted
|
11,842
|
|
|
10,914
|
|
|
11,532
|
|
|
10,780
|
|
Table
2
AVIAT NETWORKS,
INC.
Fiscal Year 2021
Third Quarter Summary
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(In thousands)
|
April 2,
2021
|
|
July 3,
2020
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
45,808
|
|
|
$
|
41,618
|
|
Accounts receivable,
net
|
47,564
|
|
|
44,661
|
|
Unbilled
receivables
|
37,862
|
|
|
28,085
|
|
Inventories
|
21,894
|
|
|
13,997
|
|
Customer service
inventories
|
1,233
|
|
|
1,234
|
|
Assets held for
sale
|
2,218
|
|
|
—
|
|
Other current
assets
|
7,705
|
|
|
10,355
|
|
Total current
assets
|
164,284
|
|
|
139,950
|
|
Property, plant and
equipment, net
|
12,563
|
|
|
16,911
|
|
Deferred income
taxes
|
102,551
|
|
|
12,799
|
|
Right of use
assets
|
2,893
|
|
|
3,474
|
|
Other
assets
|
8,285
|
|
|
6,667
|
|
Total long-term
assets
|
126,292
|
|
|
39,851
|
|
TOTAL
ASSETS
|
$
|
290,576
|
|
|
$
|
179,801
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
37,247
|
|
|
$
|
31,995
|
|
Accrued
expenses
|
26,755
|
|
|
26,920
|
|
Short-term lease
liabilities
|
754
|
|
|
1,445
|
|
Advance payments and
unearned revenue
|
26,954
|
|
|
21,872
|
|
Short-term
debt
|
—
|
|
|
9,000
|
|
Restructuring
liabilities
|
1,956
|
|
|
2,738
|
|
Total current
liabilities
|
93,666
|
|
|
93,970
|
|
Unearned
revenue
|
9,021
|
|
|
8,142
|
|
Long-term lease
liabilities
|
2,344
|
|
|
2,303
|
|
Other long-term
liabilities
|
343
|
|
|
401
|
|
Reserve for uncertain
tax positions
|
4,916
|
|
|
5,759
|
|
Deferred income
taxes
|
565
|
|
|
545
|
|
Total
liabilities
|
110,855
|
|
|
111,120
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
112
|
|
|
108
|
|
Treasury
stock
|
(458)
|
|
|
—
|
|
Additional
paid-in-capital
|
818,155
|
|
|
814,283
|
|
Accumulated
deficit
|
(623,433)
|
|
|
(730,741)
|
|
Accumulated other
comprehensive loss
|
(14,655)
|
|
|
(14,969)
|
|
Total
equity
|
179,721
|
|
|
68,681
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
290,576
|
|
|
$
|
179,801
|
|
AVIAT NETWORKS, INC.
Fiscal Year
2021 Third Quarter Summary
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES AND REGULATION G DISCLOSURE
To supplement the 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, provision for or benefit from income taxes, net
income, net income per share, and adjusted income before interest,
tax, depreciation and amortization (Adjusted EBITDA), adjusted to
exclude certain costs, charges, gains and losses, as set forth
below. We believe 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. Reconciliations of these non-GAAP financial measures with the
most directly comparable financial measures calculated in
accordance with GAAP follow.
Table
3
AVIAT NETWORKS,
INC.
Fiscal Year 2021
Third Quarter Summary
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (1)
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
April 2,
2021
|
|
% of
Revenue
|
|
April 3,
2020
|
|
% of
Revenue
|
|
April 2,
2021
|
|
% of
Revenue
|
|
April 3,
2020
|
|
% of
Revenue
|
|
(In thousands,
except percentages and per share amounts)
|
GAAP gross
margin
|
$
|
25,578
|
|
|
38.5
|
%
|
|
$
|
21,961
|
|
|
35.8
|
%
|
|
$
|
76,736
|
|
|
37.8
|
%
|
|
$
|
62,836
|
|
|
35.7
|
%
|
Share-based
compensation
|
114
|
|
|
|
|
53
|
|
|
|
|
279
|
|
|
|
|
149
|
|
|
|
Non-GAAP gross
margin
|
25,692
|
|
|
38.7
|
%
|
|
22,014
|
|
|
35.9
|
%
|
|
77,015
|
|
|
37.9
|
%
|
|
62,985
|
|
|
35.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
5,275
|
|
|
7.9
|
%
|
|
$
|
4,875
|
|
|
7.9
|
%
|
|
$
|
15,541
|
|
|
7.6
|
%
|
|
$
|
15,069
|
|
|
8.6
|
%
|
Share-based
compensation
|
(82)
|
|
|
|
|
(33)
|
|
|
|
|
(179)
|
|
|
|
|
(92)
|
|
|
|
Non-GAAP research
and development expenses
|
5,193
|
|
|
7.8
|
%
|
|
4,842
|
|
|
7.9
|
%
|
|
15,362
|
|
|
7.6
|
%
|
|
14,977
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative expenses
|
$
|
15,106
|
|
|
22.7
|
%
|
|
$
|
15,233
|
|
|
24.8
|
%
|
|
$
|
41,555
|
|
|
20.4
|
%
|
|
$
|
44,334
|
|
|
25.2
|
%
|
Share-based
compensation
|
(569)
|
|
|
|
|
(421)
|
|
|
|
|
(1,696)
|
|
|
|
|
(1,074)
|
|
|
|
Non-GAAP selling
and administrative expenses
|
14,537
|
|
|
21.9
|
%
|
|
14,812
|
|
|
24.1
|
%
|
|
39,859
|
|
|
19.6
|
%
|
|
43,260
|
|
|
24.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
4,035
|
|
|
6.1
|
%
|
|
$
|
1,236
|
|
|
2.0
|
%
|
|
$
|
18,478
|
|
|
9.1
|
%
|
|
$
|
1,258
|
|
|
0.7
|
%
|
Share-based
compensation
|
765
|
|
|
|
|
507
|
|
|
|
|
2,154
|
|
|
|
|
1,315
|
|
|
|
Restructuring
charges
|
1,162
|
|
|
|
|
617
|
|
|
|
|
1,162
|
|
|
|
|
2,175
|
|
|
|
Non-GAAP operating
income
|
5,962
|
|
|
9.0
|
%
|
|
2,360
|
|
|
3.8
|
%
|
|
21,794
|
|
|
10.7
|
%
|
|
4,748
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
(benefit) provision
|
$
|
(90,568)
|
|
|
(136.4)
|
%
|
|
$
|
598
|
|
|
1.0
|
%
|
|
$
|
(88,629)
|
|
|
(43.6)
|
%
|
|
$
|
2,439
|
|
|
1.4
|
%
|
Adjustment to reflect
pro forma tax rate
|
90,868
|
|
|
|
|
(298)
|
|
|
|
|
89,529
|
|
|
|
|
(1,539)
|
|
|
|
Non-GAAP income
tax provision
|
300
|
|
|
0.5
|
%
|
|
300
|
|
|
0.5
|
%
|
|
900
|
|
|
0.4
|
%
|
|
900
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
94,731
|
|
|
142.7
|
%
|
|
$
|
731
|
|
|
1.2
|
%
|
|
$
|
107,308
|
|
|
52.8
|
%
|
|
$
|
(886)
|
|
|
(0.5)
|
%
|
Share-based
compensation
|
765
|
|
|
|
|
507
|
|
|
|
|
2,154
|
|
|
|
|
1,315
|
|
|
|
Restructuring
charges
|
1,162
|
|
|
|
|
617
|
|
|
|
|
1,162
|
|
|
|
|
2,175
|
|
|
|
Adjustment to reflect
pro forma tax rate
|
(90,868)
|
|
|
|
|
298
|
|
|
|
|
(89,529)
|
|
|
|
|
1,539
|
|
|
|
Non-GAAP net
income
|
$
|
5,790
|
|
|
8.7
|
%
|
|
$
|
2,153
|
|
|
3.5
|
%
|
|
$
|
21,095
|
|
|
10.4
|
%
|
|
$
|
4,143
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
GAAP
|
$
|
8.00
|
|
|
|
|
$
|
0.07
|
|
|
|
|
$
|
9.31
|
|
|
|
|
$
|
(0.08)
|
|
|
|
Non-GAAP
|
$
|
0.49
|
|
|
|
|
$
|
0.20
|
|
|
|
|
$
|
1.83
|
|
|
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
11,842
|
|
|
|
|
10,914
|
|
|
|
|
11,532
|
|
|
|
|
10,780
|
|
|
|
Non-GAAP
|
11,842
|
|
|
|
|
10,914
|
|
|
|
|
11,532
|
|
|
|
|
10,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
94,731
|
|
|
142.7
|
%
|
|
$
|
731
|
|
|
1.2
|
%
|
|
$
|
107,308
|
|
|
52.8
|
%
|
|
$
|
(886)
|
|
|
(0.5)
|
%
|
Depreciation and
amortization of property, plant
and equipment
|
1,355
|
|
|
|
|
1,111
|
|
|
|
|
4,016
|
|
|
|
|
3,226
|
|
|
|
Interest income,
net
|
(128)
|
|
|
|
|
(93)
|
|
|
|
|
(201)
|
|
|
|
|
(295)
|
|
|
|
Share-based
compensation
|
765
|
|
|
|
|
507
|
|
|
|
|
2,154
|
|
|
|
|
1,315
|
|
|
|
Restructuring
charges
|
1,162
|
|
|
|
|
617
|
|
|
|
|
1,162
|
|
|
|
|
2,175
|
|
|
|
(Benefit from)
provision for income taxes
|
(90,568)
|
|
|
|
|
598
|
|
|
|
|
(88,629)
|
|
|
|
|
2,439
|
|
|
|
Adjusted
EBITDA
|
$
|
7,317
|
|
|
11.0
|
%
|
|
$
|
3,471
|
|
|
5.7
|
%
|
|
$
|
25,810
|
|
|
12.7
|
%
|
|
$
|
7,974
|
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________________________
|
(1)
|
The adjustments above
reconcile our GAAP financial results to the non-GAAP financial
measures used by us. Our non-GAAP net income excluded share-based
compensation, and other non-recurring charges (recovery). Adjusted
EBITDA was determined by excluding depreciation and amortization on
property, plant and equipment, interest, provision for or benefit
from income taxes, and non-GAAP pre-tax adjustments, as set forth
above, from the GAAP net income. 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
4
AVIAT NETWORKS,
INC.
Fiscal Year 2021
Third Quarter Summary
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
April 2,
2021
|
|
April 3,
2020
|
|
April 2,
2021
|
|
April 3,
2020
|
|
(In
thousands)
|
North
America
|
$
|
42,021
|
|
|
$
|
37,250
|
|
|
$
|
136,678
|
|
|
$
|
113,489
|
|
International:
|
|
|
|
|
|
|
|
Africa and the Middle
East
|
9,904
|
|
|
9,230
|
|
|
31,138
|
|
|
28,679
|
|
Europe and
Russia
|
3,280
|
|
|
1,903
|
|
|
7,053
|
|
|
7,728
|
|
Latin America and Asia
Pacific
|
11,199
|
|
|
12,996
|
|
|
28,356
|
|
|
26,094
|
|
|
24,383
|
|
|
24,129
|
|
|
66,547
|
|
|
62,501
|
|
Total
revenue
|
$
|
66,404
|
|
|
$
|
61,379
|
|
|
$
|
203,225
|
|
|
$
|
175,990
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/aviat-networks-announces-fiscal-2021-third-quarter-and-nine-month-financial-results-301284855.html
SOURCE Aviat Networks, Inc.