In This Article:
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Total Revenue: $112.6 million, up 1.6% year over year.
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Non-GAAP Gross Margin: 35.8%.
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Adjusted EBITDA: $14.9 million, up 17% year over year.
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Non-GAAP EPS: $0.88, up 13% year over year.
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North America Revenue: $49.4 million, up 11% year over year.
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International Revenue: $63.2 million, down 5% year over year.
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GAAP Operating Expenses: $30 million, down from $30.4 million year over year.
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Non-GAAP Operating Expenses: $27.2 million, down $0.2 million year over year.
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GAAP Operating Income: $9.3 million.
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Non-GAAP Operating Income: $13 million.
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GAAP Net Income: $3.5 million.
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Non-GAAP Net Income: $11.3 million.
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Effective Tax Rate: 24%.
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Cash and Marketable Securities: $49.4 million.
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Outstanding Debt: $73.9 million.
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Net Debt Position: $24.5 million.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Aviat Networks Inc (NASDAQ:AVNW) reported a record adjusted EBITDA of $14.9 million, up 17% year-over-year.
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Non-GAAP EPS increased by 13% year-over-year to $0.88.
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The company maintained strong gross margins, with a non-GAAP gross margin of 35.8%, an improvement from the previous year.
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Aviat Networks Inc (NASDAQ:AVNW) successfully launched and sold its Provision Plus software, indicating progress in servicing tier one and larger mobile service provider customers.
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The company has not experienced any cancellations from US federal government customers, attributing this to the mission-critical nature of their deployments.
Negative Points
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International revenues decreased by 5% year-over-year, driven by a difficult comparison with a strong previous year in the APAC region.
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The company faces potential tariff impacts, which could affect costs and margins, although efforts are being made to mitigate these effects.
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Aviat Networks Inc (NASDAQ:AVNW) is currently between projects with US tier one customers, which has impacted revenue growth in this segment.
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The African market is constrained by currency availability, limiting growth potential in that region.
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There is uncertainty in the macroeconomic environment and tariff landscape, which could impact future financial performance.
Q & A Highlights
Q: Can you elaborate on the guidance range and what factors might influence reaching the high or low end? A: We confirmed the consensus and believe we should be within that range. There are possibilities for pull-ins to avoid tariffs, which could swing us up. However, we are comfortable maintaining annual guidance and focusing on improving performance to meet street expectations. (Unidentified Respondent)