AUSTIN, Texas, Aug. 25, 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 fourth quarter
and full year ended July 2, 2021.
Fourth 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 the Company to
execute on long-term plans.
Fourth Quarter Financial Highlights
- Total Revenues: $71.7
million, +14.4% from same quarter last year
-
- North America:
$46.4 million, +21.4% from same
quarter last year
- International: $25.3
million, +3.5% from same quarter last year
- GAAP Results: Gross Margin 36.1%; Operating Expenses
$22.1 million; Operating Income
$3.7 million, Net Income $2.8 million; Net Income per diluted share ("Net
Income per share") $0.24
- Non-GAAP Results: Adjusted EBITDA $7.0 million; Gross Margin 36.2%; Operating
Expenses $20.4 million; Operating
Income $5.6 million; Net Income
$5.3 million; Net Income per share
$0.45
- Net Cash: $47.9 million,
+$2.1 million from prior sequential quarter; No loans outstanding
at year end
"This was a successful quarter and fiscal year 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 differentiated solutions for 5G,
Private Networks and Rural Broadband, capturing share of demand and
demonstrating the superiority of our offering."
Mr. Smith continued, "During fiscal 2021, we had wins with Dish
Network Corporation, which will help drive our revenue growth
starting in fiscal 2022. We have also increased our share of demand
in Rural Broadband with wins from internet service providers such
as Nextlink, LTD Broadband and Union Wireless, which are expected
to benefit from 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."
Fiscal 2021 Fourth Quarter and Full Year Comparisons
Revenues
The Company reported total revenues of
$71.7 million for its fiscal 2021
fourth quarter, compared to $62.7
million in the comparable fiscal 2020 period, an increase of
$9.0 million or 14.4%. North America revenue of $46.4 million increased by $8.2 million or 21.4%, compared to $38.2 million in the comparable fiscal 2020
period. International revenue of $25.3
million increased by $0.9
million or 3.5%,compared to $24.4
million in the comparable fiscal 2020 period.
For the year ended July 2, 2021, the Company reported total
revenues of $274.9 million, as
compared to $238.6 million in the
comparable fiscal 2020 period. North
America revenue of $183.1
million increased by $31.4
million or 20.7%, as compared to $151.7 million in the comparable fiscal 2020
period. International revenue of $91.8
million for the fiscal 2021 period increased by $4.9 million or 5.6%, as compared to $86.9 million in the comparable fiscal 2020
period.
Gross Margins
In the fiscal 2021 fourth quarter, the
Company reported GAAP gross margin of 36.1% and non-GAAP gross
margin of 36.2%. This compares to GAAP gross margin of 34.9% and
non-GAAP gross margin of 34.9% in the comparable fiscal 2020
period, an improvement of 120 and 130 basis points,
respectively.
For the year ended July 2, 2021, the Company reported GAAP
gross margin of 37.3%% and non-GAAP gross margin of 37.5%. This
compares to GAAP gross margin of 35.5% and non-GAAP gross margin of
35.6% in the comparable fiscal 2020 period, an improvement of 180
and 190 basis points, respectively.
Operating Expenses
GAAP total operating expenses for
the fiscal 2021 fourth quarter were $22.1
million, compared to $19.7
million in the comparable fiscal 2020 period, an increase of
$2.4 million or 12.2%. Non-GAAP total
operating expenses, which exclude the impact of restructuring
charges and share-based compensation, were $20.4 million for the fiscal 2021 fourth quarter
compared to $17.5 million for the
comparable fiscal 2020 period, an increase of $2.8 million or 16.2% due to reinvesting of
restructuring savings in growth related
initiatives.
The Company reported GAAP total operating expenses for the
fiscal year ended July 2, 2021 of $80.4
million, as compared to $81.3
million in the comparable fiscal 2020 period, a decrease of
$0.9 million or 1.1%. On a non-GAAP
basis, excluding the impact of restructuring charges and
share-based compensation, total operating expenses for the fiscal
year ended July 2, 2021 were
$75.6 million, as compared to
$75.8 million in the comparable
fiscal 2020 period.
Operating Income
The Company reported GAAP operating
income of $3.7 million for the fiscal
2021 fourth quarter, compared to $2.1
million in the comparable fiscal 2020 period. On a non-GAAP
basis, the Company reported operating income of $5.6 million for the fiscal 2021 fourth quarter,
compared to $4.4 million in the
comparable fiscal 2020 period.
For the fiscal year ended July 2,
2021, the Company reported $22.2
million in GAAP operating income, as compared to
$3.4 million in the comparable fiscal
2020 period. On a non-GAAP basis, the Company reported operating
income of $27.4 million in fiscal
year 2021, compared to $9.1 million
in the comparable fiscal 2020 period.
Income Taxes
The Company reported a GAAP income tax
expense of $0.9 million in the fiscal
2021 fourth quarter, compared to $1.0
million in the comparable fiscal 2020 period. For the fiscal
year ended July 2, 2021, the Company
recorded $87.7 million in GAAP income
tax benefit primarily due to the release of $92.2 million in U.S. valuation allowance during
fiscal 2021 third quarter, 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 $2.8 million in
the fiscal 2021 fourth quarter or GAAP net income per share of
$0.24. This compared to GAAP net
income of $1.1 million or GAAP net
income per share of $0.10 in the
comparable fiscal 2020 period. On a non-GAAP basis, the Company
reported net income of $5.3 million
or a non-GAAP net income per share of $0.45 in the fiscal 2021 fourth quarter, compared
to a non-GAAP net income of $4.1
million or non-GAAP net income per share of $0.38 in the comparable fiscal 2020 period.
The Company reported GAAP net income of $110.1 million for the fiscal year ended
July 2, 2021, or GAAP net income per
share of $9.42. GAAP net income in
fiscal 2021 was favorably impacted by a release of US valuation
allowance of $92.2 million during the
fiscal 2021 third quarter. This compared to GAAP net income
of $0.3 million or GAAP net income
per share of $0.02 in the comparable
fiscal 2020 period. On a non-GAAP basis, the Company reported net
income of $26.4 million or net income
per share of $2.26 in the fiscal year
ended July 2, 2021, as compared to
non-GAAP net income of $8.2 million
or net income per share of $0.75 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 fourth quarter was $7.0
million, compared to $5.5
million in the comparable fiscal 2020 period, a
year-over-year improvement of $1.4
million.
For the fiscal 2021 year ended period, the Company reported
Adjusted EBITDA of $32.8 million, as
compared to $13.5 million in the
comparable fiscal 2020 period, a year-over-year improvement of
$19.3 million.
Balance Sheet Highlights
The Company reported net cash
and cash equivalents as of $47.9
million as of July 2, 2021, compared to $45.8 million as of April 2, 2021 and
$32.6 million as of July 3, 2020. The Company has no loans
outstanding.
Fiscal Year 2022 Financial Outlook
The Company
currently anticipate Revenues for fiscal 2022 to be in the range of
$283 million to $293 million, and Adjusted EBITDA to be in the
range of $35 million to $38 million. This outlook is based on the current
supply chain environment.
Conference Call Details
Aviat Networks will host a
conference call at 5:00 p.m. Eastern
Time (ET) today, August 25,
2021, to discuss its financial and operational results for
the fiscal 2021 fourth 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: 8999717. 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, supply
chain environment, new product solutions, customer positioning,
revenue, future orders, bookings, new contracts, cost structure,
operating income, profitability and financial outlook for fiscal
year 2022. 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 25, 2021 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
Fourth Quarter Summary
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(In thousands, except per share amounts)
|
July 2, 2021
|
|
July 3,
2020
|
|
July 2, 2021
|
|
July 3,
2020
|
Revenues:
|
|
|
|
|
|
|
|
Revenue from product
sales
|
$
|
49,386
|
|
|
$
|
42,117
|
|
|
$
|
185,787
|
|
|
$
|
153,793
|
|
Revenue from
services
|
22,300
|
|
|
20,535
|
|
|
89,124
|
|
|
84,849
|
|
Total
revenues
|
71,686
|
|
|
62,652
|
|
|
274,911
|
|
|
238,642
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of product
sales
|
31,232
|
|
|
26,855
|
|
|
113,055
|
|
|
95,321
|
|
Cost of
services
|
14,575
|
|
|
13,937
|
|
|
59,241
|
|
|
58,625
|
|
Total cost of
revenues
|
45,807
|
|
|
40,792
|
|
|
172,296
|
|
|
153,946
|
|
Gross
margin
|
25,879
|
|
|
21,860
|
|
|
102,615
|
|
|
84,696
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses
|
6,269
|
|
|
4,215
|
|
|
21,810
|
|
|
19,284
|
|
Selling and
administrative expenses
|
14,769
|
|
|
13,651
|
|
|
56,324
|
|
|
57,985
|
|
Restructuring
charges
|
1,109
|
|
|
1,874
|
|
|
2,271
|
|
|
4,049
|
|
Total operating
expenses
|
22,147
|
|
|
19,740
|
|
|
80,405
|
|
|
81,318
|
|
Operating
income
|
3,732
|
|
|
2,120
|
|
|
22,210
|
|
|
3,378
|
|
Interest
income
|
29
|
|
|
67
|
|
|
230
|
|
|
385
|
|
Interest
expense
|
—
|
|
|
(31)
|
|
|
—
|
|
|
(54)
|
|
Income before
income taxes
|
3,761
|
|
|
2,156
|
|
|
22,440
|
|
|
3,709
|
|
Provision for
(benefit from) income taxes
|
930
|
|
|
1,013
|
|
|
(87,699)
|
|
|
3,452
|
|
Net
income
|
$
|
2,831
|
|
|
$
|
1,143
|
|
|
$
|
110,139
|
|
|
$
|
257
|
|
|
|
|
|
|
|
|
|
Net income per
share of common stock outstanding:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.25
|
|
|
$
|
0.11
|
|
|
$
|
9.98
|
|
|
$
|
0.02
|
|
Diluted
|
$
|
0.24
|
|
|
$
|
0.10
|
|
|
$
|
9.42
|
|
|
$
|
0.02
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,158
|
|
|
10,788
|
|
|
11,036
|
|
|
10,782
|
|
Diluted
|
11,950
|
|
|
10,912
|
|
|
11,688
|
|
|
10,936
|
|
Table
2
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2021
Fourth Quarter Summary
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
(In thousands)
|
July 2, 2021
|
|
July 3,
2020
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
47,942
|
|
|
$
|
41,618
|
|
Accounts receivable,
net
|
48,135
|
|
|
44,661
|
|
Unbilled
receivables
|
37,521
|
|
|
28,085
|
|
Inventories
|
23,436
|
|
|
13,997
|
|
Customer service
inventories
|
1,431
|
|
|
1,234
|
|
Assets held for
sale
|
2,218
|
|
|
—
|
|
Other current
assets
|
9,556
|
|
|
10,355
|
|
Total current
assets
|
170,239
|
|
|
139,950
|
|
Property, plant and
equipment, net
|
11,701
|
|
|
16,911
|
|
Deferred income
taxes
|
103,467
|
|
|
12,799
|
|
Right of use
assets
|
3,816
|
|
|
3,474
|
|
Other
assets
|
8,430
|
|
|
6,667
|
|
Total long-term
assets
|
127,414
|
|
|
39,851
|
|
TOTAL
ASSETS
|
$
|
297,653
|
|
|
$
|
179,801
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
|
32,405
|
|
|
$
|
31,995
|
|
Accrued
expenses
|
28,154
|
|
|
26,920
|
|
Short-term lease
liabilities
|
769
|
|
|
1,445
|
|
Advance payments and
unearned revenue
|
32,304
|
|
|
21,872
|
|
Short-term
debt
|
—
|
|
|
9,000
|
|
Restructuring
liabilities
|
2,737
|
|
|
2,738
|
|
Total current
liabilities
|
96,369
|
|
|
93,970
|
|
Unearned
revenue
|
8,592
|
|
|
8,142
|
|
Long-term lease
liabilities
|
3,223
|
|
|
2,303
|
|
Other long-term
liabilities
|
356
|
|
|
401
|
|
Reserve for uncertain
tax positions
|
5,164
|
|
|
5,759
|
|
Deferred income
taxes
|
614
|
|
|
545
|
|
Total
liabilities
|
114,318
|
|
|
111,120
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Preferred
stock
|
—
|
|
|
—
|
|
Common
stock
|
112
|
|
|
108
|
|
Treasury
stock
|
(787)
|
|
|
—
|
|
Additional
paid-in-capital
|
818,939
|
|
|
814,283
|
|
Accumulated
deficit
|
(620,602)
|
|
|
(730,741)
|
|
Accumulated other
comprehensive loss
|
(14,327)
|
|
|
(14,969)
|
|
Total
equity
|
183,335
|
|
|
68,681
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
|
297,653
|
|
|
$
|
179,801
|
|
AVIAT NETWORKS, INC.
Fiscal Year
2021 Fourth 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
Fourth Quarter Summary
|
RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURES (1)
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
Three Months
Ended
|
|
Year
Ended
|
|
July 2,
2021
|
|
% of Revenue
|
|
July 3,
2020
|
|
% of
Revenue
|
|
July 2,
2021
|
|
% of Revenue
|
|
July 3,
2020
|
|
% of
Revenue
|
|
(In thousands,
except percentages and per share amounts)
|
GAAP gross
margin
|
$
|
25,879
|
|
|
36.1
|
%
|
|
$
|
21,860
|
|
|
34.9
|
%
|
|
$
|
102,615
|
|
|
37.3
|
%
|
|
$
|
84,696
|
|
|
35.5
|
%
|
Share-based
compensation
|
93
|
|
|
|
|
33
|
|
|
|
|
372
|
|
|
|
|
182
|
|
|
|
Non-GAAP gross
margin
|
25,972
|
|
|
36.2
|
%
|
|
21,893
|
|
|
34.9
|
%
|
|
102,987
|
|
|
37.5
|
%
|
|
84,878
|
|
|
35.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and
development expenses
|
$
|
6,269
|
|
|
8.7
|
%
|
|
$
|
4,215
|
|
|
6.7
|
%
|
|
$
|
21,810
|
|
|
7.9
|
%
|
|
$
|
19,284
|
|
|
8.1
|
%
|
Share-based
compensation
|
(71)
|
|
|
|
|
(20)
|
|
|
|
|
(250)
|
|
|
|
|
(112)
|
|
|
|
Non-GAAP research
and development expenses
|
6,198
|
|
|
8.6
|
%
|
|
4,195
|
|
|
6.7
|
%
|
|
21,560
|
|
|
7.8
|
%
|
|
19,172
|
|
|
8.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and
administrative expenses
|
$
|
14,769
|
|
|
20.6
|
%
|
|
$
|
13,651
|
|
|
21.8
|
%
|
|
$
|
56,324
|
|
|
20.5
|
%
|
|
$
|
57,985
|
|
|
24.3
|
%
|
Share-based
compensation
|
(603)
|
|
|
|
|
(318)
|
|
|
|
|
(2,299)
|
|
|
|
|
(1,392)
|
|
|
|
Non-GAAP selling
and administrative expenses
|
14,166
|
|
|
19.8
|
%
|
|
13,333
|
|
|
21.3
|
%
|
|
54,025
|
|
|
19.7
|
%
|
|
56,593
|
|
|
23.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income
|
$
|
3,732
|
|
|
5.2
|
%
|
|
$
|
2,120
|
|
|
3.4
|
%
|
|
$
|
22,210
|
|
|
8.1
|
%
|
|
$
|
3,378
|
|
|
1.4
|
%
|
Share-based
compensation
|
767
|
|
|
|
|
371
|
|
|
|
|
2,921
|
|
|
|
|
1,686
|
|
|
|
Restructuring
charges
|
1,109
|
|
|
|
|
1,874
|
|
|
|
|
2,271
|
|
|
|
|
4,049
|
|
|
|
Non-GAAP operating
income
|
5,608
|
|
|
7.8
|
%
|
|
4,365
|
|
|
7.0
|
%
|
|
27,402
|
|
|
10.0
|
%
|
|
9,113
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax
provision (benefit)
|
$
|
930
|
|
|
1.3
|
%
|
|
$
|
1,013
|
|
|
1.6
|
%
|
|
$
|
(87,699)
|
|
|
(31.9)
|
%
|
|
$
|
3,452
|
|
|
1.4
|
%
|
Adjustment to reflect
pro forma tax rate
|
(630)
|
|
|
|
|
(713)
|
|
|
|
|
88,899
|
|
|
|
|
(2,252)
|
|
|
|
Non-GAAP income
tax provision
|
300
|
|
|
0.4
|
%
|
|
300
|
|
|
0.5
|
%
|
|
1,200
|
|
|
0.4
|
%
|
|
1,200
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
2,831
|
|
|
3.9
|
%
|
|
$
|
1,143
|
|
|
1.8
|
%
|
|
$
|
110,139
|
|
|
40.1
|
%
|
|
$
|
257
|
|
|
0.1
|
%
|
Share-based
compensation
|
767
|
|
|
|
|
371
|
|
|
|
|
2,921
|
|
|
|
|
1,686
|
|
|
|
Restructuring
charges
|
1,109
|
|
|
|
|
1,874
|
|
|
|
|
2,271
|
|
|
|
|
4,049
|
|
|
|
Adjustment to reflect
pro forma tax rate
|
630
|
|
|
|
|
713
|
|
|
|
|
(88,899)
|
|
|
|
|
2,252
|
|
|
|
Non-GAAP net
income
|
$
|
5,337
|
|
|
7.4
|
%
|
|
$
|
4,101
|
|
|
6.5
|
%
|
|
$
|
26,432
|
|
|
9.6
|
%
|
|
$
|
8,244
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
GAAP
|
$
|
0.24
|
|
|
|
|
$
|
0.10
|
|
|
|
|
$
|
9.42
|
|
|
|
|
$
|
0.02
|
|
|
|
Non-GAAP
|
$
|
0.45
|
|
|
|
|
$
|
0.38
|
|
|
|
|
$
|
2.26
|
|
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
11,950
|
|
|
|
|
10,912
|
|
|
|
|
11,688
|
|
|
|
|
10,936
|
|
|
|
Non-GAAP
|
11,950
|
|
|
|
|
10,912
|
|
|
|
|
11,688
|
|
|
|
|
10,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
2,831
|
|
|
3.9
|
%
|
|
$
|
1,143
|
|
|
1.8
|
%
|
|
$
|
110,139
|
|
|
40.1
|
%
|
|
$
|
257
|
|
|
0.1
|
%
|
Depreciation and
amortization of property, plant
and equipment
|
1,367
|
|
|
|
|
1,161
|
|
|
|
|
5,383
|
|
|
|
|
4,387
|
|
|
|
Interest income,
net
|
(29)
|
|
|
|
|
(36)
|
|
|
|
|
(230)
|
|
|
|
|
(331)
|
|
|
|
Share-based
compensation
|
767
|
|
|
|
|
371
|
|
|
|
|
2,921
|
|
|
|
|
1,686
|
|
|
|
Restructuring
charges
|
1,109
|
|
|
|
|
1,874
|
|
|
|
|
2,271
|
|
|
|
|
4,049
|
|
|
|
Provision for
(benefit from) for income taxes
|
930
|
|
|
|
|
1,013
|
|
|
|
|
(87,699)
|
|
|
|
|
3,452
|
|
|
|
Adjusted
EBITDA
|
$
|
6,975
|
|
|
9.7
|
%
|
|
$
|
5,526
|
|
|
8.8
|
%
|
|
$
|
32,785
|
|
|
11.9
|
%
|
|
$
|
13,500
|
|
|
5.7
|
%
|
|
_____________________________________________________
|
(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. Aviat monitors the non-GAAP
financial measures included above, and our management believes they
are helpful to investors because they provide an additional tool to
use in evaluating Aviat's financial and business trends and
operating results. In addition, Aviat's management uses these
non-GAAP measures to compare Aviat's performance to that of prior
periods for trend analysis and for budgeting and planning purposes.
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.
|
|
|
|
The Company's
forward-looking Adjusted EBITDA excludes estimates for depreciation
and amortization, share-based compensation expense, restructuring
charges and provision for income taxes. The Company has not
reconciled its expectations as to Adjusted EBITDA to its most
directly comparable GAAP measure due to the high variability and
difficulty in making accurate forecasts and projections,
particularly with respect to share-based compensation expense and
restructuring charges. The actual amount of the excluded
stock-based compensation expense and restructuring charges will
have a significant impact on the Company's Adjusted EBITDA.
Accordingly, a reconciliation of our forward-looking Adjusted
EBITDA is not available without unreasonable effort.
|
Table
4
|
AVIAT NETWORKS,
INC.
|
Fiscal Year 2021
Fourth Quarter Summary
|
SUPPLEMENTAL
SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
July 2, 2021
|
|
July 3,
2020
|
|
July 2, 2021
|
|
July 3,
2020
|
|
(In
thousands)
|
North
America
|
$
|
46,393
|
|
|
$
|
38,220
|
|
|
$
|
183,071
|
|
|
$
|
151,709
|
|
International:
|
|
|
|
|
|
|
|
Africa and the Middle
East
|
12,885
|
|
|
8,916
|
|
|
44,023
|
|
|
37,595
|
|
Europe and
Russia
|
1,773
|
|
|
3,429
|
|
|
8,826
|
|
|
11,157
|
|
Latin America and Asia
Pacific
|
10,635
|
|
|
12,087
|
|
|
38,991
|
|
|
38,181
|
|
|
25,293
|
|
|
24,432
|
|
|
91,840
|
|
|
86,933
|
|
Total
revenue
|
$
|
71,686
|
|
|
$
|
62,652
|
|
|
$
|
274,911
|
|
|
$
|
238,642
|
|
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SOURCE Aviat Networks, Inc.