Aviat Networks (AVNW) Reports Q4 Loss of $0.03, Miss on Revenues; Offers 1Q & FY18 Guidance

Aviat Networks (NASDAQ: AVNW) reported Q4 EPS of ($0.03). Revenue for the quarter came in at $58.25 million versus the consensus estimate of $70 million.

Fiscal 2018 First Quarter Outlook

The Company anticipates revenue to be in the range of $57.0 million to $60.0 million for the first quarter of fiscal 2018. Non-GAAP gross margins are anticipated to be between 30.0% and 31.0% for the first quarter of fiscal 2018, and Non-GAAP operating expenses are expected to be in the range of $18.2 million to $18.5 million for the first quarter of fiscal 2018, with the range dependent upon the top-line. This would result in positive Adjusted EBITDA in the range of $0.5 million to $1.0 million for the first quarter of fiscal 2018.

Fiscal 2018 Full Year Outlook

The Company anticipates revenue to be in the range of $245.0 million to $260.0 million, which would equate to a 1.0 % to 8.0% increase year-over-year. For fiscal year 2018, Non-GAAP gross margin is expected to be approximately in the range of 31.5% to 32.5% and Non-GAAP operating expenses are expected to be in the range of $72.0 million to $75.0 million. The Company further anticipates that if revenues come in on the low-end of the range, gross margins and spending will be at the more favorable end of the ranges provided, thus resulting in non-GAAP operating income of approximately $5.0 million to $7.0 million for fiscal year 2018. Similarly, this would result in positive Adjusted EBITDA of approximately $11.0 million to $13.0 million for fiscal year 2018, representing a 45.0% to 71.0% increase year-over-year.

Fiscal 2017 vs. Fiscal 2016 Full-Year Results Comparisons

• Total revenues of $241.9 million represent a decline of $26.8 million or 10.0% from fiscal 2016. Within this, international revenues declined as anticipated, while North America revenues increased by $6.6 million or 5.3%. Additionally, the book to bill ratio was above 1 during the fourth quarter ended June 30, 2017, driven by continued strength in North America.
• GAAP gross margins were 31.2% as compared to 23.0%, an improvement of approximately 820 basis points. Non-GAAP gross margins were 31.4% as compared to 24.9%, an increase of 650 basis points.
• GAAP total operating expenses were $76.5 million as compared to $89.2 million, a reduction of $12.7 million or 14.3%. Non-GAAP total operating expenses, excluding the impact of share-based compensation, were $74.0 million as compared to $85.0 million in fiscal 2016, a reduction of $11.1 million or 13.0%.
• GAAP operating loss was $1.0 million as compared to a GAAP operating loss of $27.4 million, an improvement of $26.5 million. Non-GAAP operating income was $1.9 million as compared to a Non-GAAPoperating loss of $18.1 million, an improvement of $20.0 million.
• GAAP net loss from continuing operations attributable to Aviat Networks of $0.8 million or a loss of $0.16 per diluted share. This compares to a 2016 GAAP net loss from continuing operations attributable to Aviat Networks of $30.4 million or a loss of $5.81 per diluted share. GAAP net loss improved by $29.6 million year-over-year.
• Non-GAAP income from continuing operations attributable to Aviat Networks of $0.7 million or income of $0.14 per diluted share. This compares to a fiscal 2016 Non-GAAP loss from continuing operations attributable to Aviat Networks of $19.4 million or a loss of $3.71 per diluted share. Non-GAAP income improved by $20.2 million year-over-year.
• Adjusted EBITDA was $7.6 million compared with an Adjusted EBITDA loss of $11.7 million in fiscal year 2016, an improvement of $19.3 million year-over-year.
• For earnings history and earnings-related data on Aviat Networks (AVNW) click here.

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