Aviat Networks Reports Quarterly, Fiscal Year Results
Wednesday, August 28, 2019 | Comments

Aviat Networks reported financial results for its fiscal 2019 fourth quarter and the year ended June 28.

The company reported total revenues of $64.2 million for its fiscal 2019 fourth quarter compared with $62.5 million in the comparable fiscal 2018 period, an increase of $1.7 million or 2.8%. North America revenue of $39.2 million increased $7.9 million or 25.2% compared with $31.3 million in the fiscal 2018 fourth quarter. This was partially offset by a $6.2 million decline in international revenue, with $5.4 million of the decline attributable to Africa and the Middle East.

GAAP gross margin for the fiscal 2019 fourth quarter was 35.2% compared with 37.1% in the comparable fiscal 2018 period. GAAP total operating expenses for the fiscal 2019 fourth quarter were $20.1 million compared with $22.2 million in the comparable fiscal 2018 period, an improvement of $2.1 million. GAAP operating income was $2.5 million for the fiscal 2019 fourth quarter compared with GAAP operating income of $1 million in the comparable period in fiscal 2018, an improvement of $1.5 million.

Aviat reported GAAP net income attributable to Aviat Networks of $3.8 million in the fiscal 2019 fourth quarter. "While our fiscal 2019 fourth-quarter results came in below prior expectations, much of it was due to the current spending environment in Africa and a few deals in North America that moved into our fiscal 2020 first quarter,” said Michael Pangia, president and CEO of Aviat Networks. “Notwithstanding Africa, we had a strong quarter and full year, and executed on our plan. Our business in North America has continued to strengthen, as we have expanded both our client and partner base and are coming off one of the strongest booking quarters in North America in our company's history. Further, on a consolidated basis and despite weakness in Africa, we had the best bookings year since fiscal 2016 …

"Internationally on a full year basis, the APAC region was exceptionally strong, and we have other global opportunities on the horizon that could further strengthen our performance in the years ahead. Our position is improving in several of the markets we operate in, and we believe this will continue based on new products brought to market and others that are in development. Our confidence moving into fiscal 2020 is strong based on our bookings' performance, new partnerships secured and opportunities to expand with our client base."

For the full fiscal year (FY) 2019, the company reported total revenues of $243.9 million compared with $242.5 million in the comparable fiscal 2018 period, an increase of $1.4 million, or 0.6%. North America revenue of $132.9 million increased by $1.8 million, or 1.4%, partially offset by a decline in international revenue of $500,000, or 0.4%. Excluding the Africa and Middle East region, international revenue increased by $9.7 million, or 18.3%, when comparing the fiscal 2019 and 2018 periods, driven by strong growth in the Asian region primarily.

GAAP gross margin for FY 2019 was 32.5% compared with 33.2% in the FY 2018 period. GAAP total operating expenses for the 2019 twelve-month period were $77.9 million compared with $79.2 million in the comparable fiscal 2018 period, a decline of $1.3 million, or 1.6%.

GAAP operating income for FY 2019 was $1.4 million compared with GAAP operating income of $1.3 million in the comparable fiscal 2018 period, a modest year-over-year improvement. The company reported GAAP net income attributable to Aviat Networks for FY 2019 of $9.7 million. This compares with GAAP net income attributable to Aviat Networks of $1.8 million for FY 2018.

The company anticipates revenue in the first half of fiscal 2020 to be modestly down compared with the prior fiscal year period, but based on the mix of business, gross margins are expected to increase significantly. Aviat anticipates strong profitability in both the fiscal 2020 first and second quarters.

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