Aviat Networks Reports Financial Results for Fiscal Third Quarter
Tuesday, May 15, 2018 | Comments

Aviat Networks reported financial results for its fiscal 2018 third quarter and nine months ended March 30.

The company reported total revenues of $62.1 million for its fiscal 2018 third quarter compared with $58.7 million in the comparable fiscal 2017 period, an increase of $3.4 million or 5.8 percent. Revenue in North America increased by $2.6 million or 8.8 percent, and international revenue increased by $800,000 or 2.8 percent. On a sequential basis, total revenue increased by $400,000 or 0.6 percent.

GAAP gross margin for the fiscal 2018 third quarter was 29.2 percent compared with 30.2 percent in the fiscal 2017 third quarter, a decrease of 100 basis points. Gross margin was primarily impacted by a change in project mix in North America when comparing the fiscal 2018 and fiscal 2017 third-quarter periods.

GAAP total operating expenses for the fiscal 2018 third quarter were $19.5 million, as compared to $17.7 million reported in the fiscal 2017 third quarter, an increase of $1.8 million or 10.4 percent. The increase in operating expenses was primarily related to the impact of foreign currency conversion, additional expenses associated with research and development (R&D) and sales to support product development and growth initiatives, as well as a temporary increase in benefit-related costs. The remaining year-over-year variance was primarily related to a bad debt recovery in the fiscal 2017 third quarter, which did not repeat in the fiscal 2018 third quarter. Excluding the impact of foreign currency conversion and higher medical expenses, total operating expenses were in line with the company's prior guidance.

GAAP operating loss was $1.4 million for the fiscal 2018 third quarter compared with operating income of $100,000 for the comparable fiscal 2017 period. The company reported a GAAP net loss from continuing operations of $2.6 million.

“While third quarter results were somewhat mixed, our outlook for the fourth quarter and 2019 fiscal year remains very strong,” said President and CEO Michael Pangia. “We've added new customers, expanded successfully into new verticals, and demand for our recently launched products is building. Our private networks business is strong, with new state contracts and new utility accounts on the horizon. Our international business is expected to return to growth, we have added new Tier-1 accounts, we are expanding our addressable market, and we're well positioned as 5G adoption begins to build steam over the next 12 to 18 months."

The company anticipates revenue in the fiscal 2018 fourth quarter to be in the range of $63.0 million to $70 million. For fiscal 2018, the company anticipates revenue to be in the range of $243 million to $250.0 million.

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