Aviat Reports Fiscal First-Quarter Financial Results
Friday, November 08, 2019 | Comments

Aviat Networks reported financial results for its fiscal 2020 first quarter ended Sept. 27.

The company reported total revenues of $58.6 million for its fiscal 2020 first quarter compared with $60.5 million in the comparable fiscal 2019 period, a decrease of $1.9 million or 3.1%. North America revenue of $39.8 million increased by $12 million or 43.2% compared with $27.8 million in the fiscal 2019 first quarter. International revenue of $18.8 million declined by $13.9 million or 42.4% compared with $32.7 million in the comparable year-ago period, with the majority of the decline attributable to lower year-over-year revenue in the Asia-Pacific region, based on strong revenue in the prior fiscal year period and lower revenue in Africa, as anticipated.

GAAP gross margin for the fiscal 2020 first quarter was 38.5% compared with 29.6% in the comparable fiscal 2019 period, an increase of 890 basis points. The improvement in gross margin was primarily attributable to higher revenue in North America and higher margin projects associated with select international projects.

GAAP total operating expenses for the fiscal 2020 first quarter were $21 million compared with $19.4 million in the comparable fiscal 2019 period, an increase of $1.6 million or 8.2%. GAAP operating income was $1.5 million for the fiscal 2020 first quarter compared with a GAAP operating loss of $1.5 million in the comparable period in fiscal 2019, an improvement of $3 million.

The company reported GAAP net income of $100,000 in the fiscal 2020 first quarter. This compares to a GAAP net loss of $800,000 in the fiscal 2019 first quarter.

Aviat also reported cash and cash equivalents as of Sept. 27 of $34.5 million compared with $31.9 million as of June 28, an increase of $2.5 million. The company anticipates its cash position will improve throughout the remainder of the fiscal year, subject to customer timing delays, which may occur from time to time based on historical trends.

"As expected, we had a strong start to the fiscal year, delivering exceptionally strong gross margins and year-over-year bottom-line improvements,” said Stan Gallagher, interim CEO and chief operating officer (COO). "Our North America business grew in excess of 40% year-over-year when comparing the fiscal first quarters, while International revenue declined due to a very strong fiscal 2019 in the Asia-Pacific region and as a result of the current environment in Africa. However, we continue to win new business in all markets and geographies, which gives us confidence in our ability to improve profitability this fiscal year with the top-line coming in roughly in line with fiscal 2019. We continue to invest with the future in mind as market trends for 5G and mission-critical networks are improving. Our focus of course is on delivering improved results this fiscal year, but equally if not more important, is ensuring that Aviat is positioned to drive results and shareholder value for years to come."

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