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• Total Revenue: $88.4 million for Q1 fiscal 2025, up from $86.9 million in the same period last year.

• North America Revenue: $42 million, a decrease of 23% year-over-year.

• International Revenue: $46 million, an increase of 44% year-over-year.

• GAAP Gross Margin: 22.4% for the quarter.

• Non-GAAP Gross Margin: 23.2% for the quarter.

• GAAP Operating Expenses: $35.4 million, an increase of $9.1 million from the prior year.

• Non-GAAP Operating Expenses: $30 million, an increase of $6.2 million from the prior year.

• GAAP Net Income: -$11.9 million for the quarter.

• Non-GAAP Net Income: -$11.1 million for the quarter.

• Non-GAAP EPS: -87 per share.

• Adjusted EBITDA: -$7.7 million for the quarter.

• Cash and Marketable Securities: $51 million at the end of the quarter.

• Outstanding Debt: $81 million at the end of the quarter.

• Warning! GuruFocus has detected 3 Warning Signs with AVNW.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aviat Networks Inc (NASDAQ:AVNW) reported a year-over-year revenue increase of 1.7%, reaching $88.4 million for the first quarter of fiscal 2025.

• The company has seen growth in its international revenue, which increased by 44% from the same period last year, driven primarily by the Palink acquisition.

• Aviat Networks Inc (NASDAQ:AVNW) is experiencing a growing demand for its network management software, Provision Plus, which represents a significant upgrade opportunity for over 1 million Palink radios.

• The company has successfully secured its first purchase order for the Prisa 5G router from an American utility company, marking progress in its private 5G business.

• Aviat Networks Inc (NASDAQ:AVNW) is optimistic about its future, with expectations of stronger results in the back half of fiscal year 2025, supported by a strong bookings trajectory and a favorable demand environment.

Negative Points

• The company reported a non-GAAP gross margin of 23% and an adjusted EBITDA of minus $7.7 million, indicating financial challenges.

• Aviat Networks Inc (NASDAQ:AVNW) faced difficulties due to ongoing Tier 1 CapEx weakness and timing challenges from private network and international projects.

• The global microwave market saw an 8% year-over-year contraction, impacting Aviat Networks Inc (NASDAQ:AVNW) as it was unable to offset Tier 1 weakness.

• Gross margins were significantly impacted by lower volume and a mix shift away from North America towards international business.

• The company had to manage higher operating expenses associated with the preparation for the stoppage of transition services with NEC, affecting profitability.