News Review: Aviat Networks Inc. (NASDAQ: AVNW)

MILPITAS, Calif., July 29, 2019 – Shares of Aviat Networks Inc. (NASDAQ: AVNW) inclined 1.26% to $12.81. The stock grabbed the investor’s attention and traded 15.571K shares as compared to its average daily volume of 7.95K shares. The stock’s institutional ownership stands at 57.10%.

Aviat Networks, Inc. (AVNW) reported total revenue of $54.00M for its fiscal 2019 third quarter as contrast to $62.10M in the comparable fiscal 2018 period. The year-over-year change was because of a $3.20M decline in North America revenue, with the majority related to a component shortage which has since been corrected, and a $4.90M decline in international revenue, mainly because of lower spending in Africa, and offset by a boost in revenue mainly in the Asia region.

For the nine-month period in fiscal 2019, the Company reported total revenue of $179.60M, roughly in line with the comparable fiscal 2018 period. The year-over-year change for the nine-month period was mainly related to a $6.10M decline in North America revenue because of the component shortage referenced above, as well as the timing of customer project milestones. This was partially offset by a $5.70M increase in international revenue, with a noteworthy increase in Asia.

Operating Expense Comparisons:

GAAP total operating expenses for the fiscal 2019 third quarter were $18.80M as contrast to $19.50M in the comparable fiscal 2018 period, an improvement of $0.70M or 3.8%. Non-GAAP total operating expenses for the fiscal 2019 third quarter, excluding the impact of share-based compensation and costs associated with planned-related activities, were $17.90M as contrast to $19.00M reported in the fiscal 2018 third quarter, an improvement of $1.10M or 5.9%. The year-over-year improvement was mainly related to a reduction in related variable compensation expense, offset by higher research and development expenses, both on a GAAP and non-GAAP basis as the Company continues to invest in innovation and advance its offerings. GAAP total operating expenses for the fiscal 2019 nine-month period were $57.80M as contrast to $57.00M in the comparable fiscal 2018 period. Non-GAAP total operating expenses for the fiscal 2019 nine-month period, excluding the impact of share-based compensation, restructuring charges (recovery) and costs associated with planned-related activities, were $55.30M as contrast to $54.80M reported for the comparable fiscal 2018 period, with the increase mainly related to a $0.90M increase in non-GAAP research and development expenses to fund growth programs and future product roll-outs.

Operating Income (Loss) Comparisons:

GAAP operating loss was $2.50M for the fiscal 2019 third quarter, as contrast to a GAAP operating loss of $1.40M for the comparable fiscal 2018 period. Non-GAAP operating loss was $1.60M for the fiscal 2019 third quarter as contrast to a non-GAAP operating loss of $0.90M for the comparable fiscal 2018 period. For the fiscal 2019 nine-month period, the Company reported a GAAP operating loss of $1.10M as contrast to GAAP operating income of $0.30M in the comparable year-ago period. For the fiscal 2019 nine-month period, the Company reported non-GAAP operating income of $1.50M, as contrast to non-GAAP operating income of $2.30M for the fiscal 2018 nine-month period.

Net Income (Loss) Attributable to Aviat Networks Comparisons:

For the fiscal 2019 third quarter, the Company reported GAAP net income of $4.30M or net income per diluted share of $0.78, as contrast to a GAAP net loss of $2.60M or a net loss per diluted share of $0.49 in the fiscal 2018 third quarter. The Company reported a non-GAAP net loss in the fiscal 2019 third quarter of $1.80M or a net loss per diluted share of $0.33, as contrast to a non-GAAP net loss in the fiscal 2018 third quarter of $1.40M or a net loss per diluted share of $0.26.

For the nine-month period in fiscal 2019, the Company reported GAAP net income of $5.90M or net income per diluted share of $1.05, as contrast to GAAP net income of $1.80M or net income per diluted share of $0.32. The Company reported non-GAAP net income of $0.60M or net income per diluted share of $0.11, as contrast to non-GAAP net income of $0.90M or net income per diluted share of $0.17 in the comparable fiscal 2018 period.

The Company reported an Adjusted Earnings before Taxes, Depreciation and Amortization (“EBITDA”) loss of $0.50M for the fiscal 2019 third quarter, as contrast to Adjusted EBITDA of $0.20M in the fiscal 2018 third quarter. For the fiscal 2019 nine-month period, Adjusted EBITDA was $4.90M, as contrast to Adjusted EBITDA of $5.70M in the fiscal 2018 nine-month period.

Balance Sheet Updates

As of March 29, 2019, the Company reported cash, cash equivalents and restricted cash of $36.10M, as contrast to cash, cash equivalents and restricted cash of $37.40M at June 29, 2018. On a sequential basis, when comparing against the fiscal 2019 second quarter, the Company’s cash, cash equivalents and restricted cash position increased by $4.50M. The sequential improvement was anticipated and was a result of stronger collections in North America.

AVNW has a market value of $68.02M while its EPS was booked as $9.86 in the last 12 months. The stock has 5.31M shares outstanding. In the profitability analysis, the company has gross profit margin of 33.00% while net profit margin was 2.50%. Beta value of the company was 0.81; beta is used to measure riskiness of the security.

Cameron Williams

I am Cameron Williams and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets.

I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Address: 1408 Koontz Lane, Los Angeles, CA 90017, USA
Phone: (+1) 818-801-5069
Email: cameronwilliams@digitalmarketnews.com
Cameron Williams
Cameron Williams

Cameron Williams

I am Cameron Williams and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking. Address: 1408 Koontz Lane, Los Angeles, CA 90017, USA Phone: (+1) 818-801-5069 Email: cameronwilliams@digitalmarketnews.com

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