Aviat Networks Announces Fiscal 2019 Third Quarter and Nine-Month Financial Results; Provides Update to Its Fiscal 2019 Full Year Outlook
MILPITAS, Calif., May 13, 2019 /PRNewswire/ -- Aviat Networks, Inc. (NASDAQ: AVNW), ("Aviat Networks" or the "Company"), the leading expert in wireless transport solutions, today reported financial results for its fiscal 2019 third quarter and nine months ended March 29, 2019.
"As indicated in our release last week, our fiscal 2019 third quarter results were impacted by a component shortage in North America, which has since been corrected, and a slowdown in spending in Africa. However, our outlook for the fiscal fourth quarter and fiscal year remains strong. North America continues to be an area of growth and fuels our optimism over the coming years. Internationally, we are adjusting our near-term outlook for Africa and transitioning our business model accordingly. Asia continues to grow as evidenced by our third quarter and year-to-date results, and we expect this momentum to continue."
"As we've seen for the past several years, our business can fluctuate quarter to quarter. With that said, over a two-quarter period, you can see more stability and for the third year in a row, profitability has improved. We have also returned Aviat to growth over the past two years and expect to be in position to improve our operations in the coming year. We continue to drive innovation in our product offering and expand our services, resulting in new business and future opportunities, both in the private network and service provider segments. We also anticipate further improvements to our balance sheet and feel confident in our ability to enhance shareholder value."
Fiscal 2019 Third Quarter and Nine-Month Results Comparisons
Revenue Comparisons:
The Company reported total revenue of $54.0 million for its fiscal 2019 third quarter as compared to $62.1 million in the comparable fiscal 2018 period. The year-over-year change was due to a $3.2 million decline in North America revenue, with the majority related to a component shortage which has since been corrected, and a $4.9 million decline in international revenue, primarily due to lower spending in Africa, and offset by an increase in revenue primarily in the Asia region.
For the nine-month period in fiscal 2019, the Company reported total revenue of $179.6 million, roughly in line with the comparable fiscal 2018 period. The year-over-year change for the nine-month period was primarily related to a $6.1 million decline in North America revenue due to the component shortage referenced above, as well as the timing of customer project milestones. This was partially offset by a $5.7 million increase in international revenue, with a significant increase in Asia.
Gross Profit Margin Comparisons:
GAAP gross margin for the fiscal 2019 third quarter was 30.1%, as compared to 29.2% in the comparable fiscal 2018 period, an improvement of 90 basis points. Non-GAAP gross margin for the fiscal 2019 third quarter was 30.2%, as compared to 29.1% in the comparable fiscal 2018 period, an improvement of 110 basis points. The year-over-year improvement in gross margin was driven primarily by improved profitability of product sales and lower supply chain costs.
GAAP gross margin for the fiscal 2019 nine-month period was 31.5% as compared to 31.8% in the comparable year-ago period, a decline of 30 basis points. Non-GAAP gross margin for the fiscal 2019 nine-month period was 31.6% as compared to 31.8% for the nine-month period of fiscal 2018, a decline of 20 basis points. The modest year-over-year decline in gross margin was primarily due to lower service margin rates caused by lower services volume in Africa and the Middle East, offset by higher product margins and lower supply chain costs.
Operating Expense Comparisons:
GAAP total operating expenses for the fiscal 2019 third quarter were $18.8 million as compared to $19.5 million in the comparable fiscal 2018 period, an improvement of $0.7 million or 3.8%. Non-GAAP total operating expenses for the fiscal 2019 third quarter, excluding the impact of share-based compensation and costs associated with strategic-related activities, were $17.9 million as compared to $19.0 million reported in the fiscal 2018 third quarter, an improvement of $1.1 million or 5.9%. The year-over-year improvement was primarily related to a reduction in related variable compensation expense, offset by higher research and development expenses, both on a GAAP and non-GAAP basis as the Company continues to invest in innovation and advance its offerings. GAAP total operating expenses for the fiscal 2019 nine-month period were $57.8 million as compared to $57.0 million in the comparable fiscal 2018 period. Non-GAAP total operating expenses for the fiscal 2019 nine-month period, excluding the impact of share-based compensation, restructuring charges (recovery) and costs associated with strategic-related activities, were $55.3 million as compared to $54.8 million reported for the comparable fiscal 2018 period, with the increase primarily related to a $0.9 million increase in non-GAAP research and development expenses to fund growth initiatives and future product roll-outs.
Operating Income (Loss) Comparisons:
GAAP operating loss was $2.5 million for the fiscal 2019 third quarter, as compared to a GAAP operating loss of $1.4 million for the comparable fiscal 2018 period. Non-GAAP operating loss was $1.6 million for the fiscal 2019 third quarter as compared to a non-GAAP operating loss of $0.9 million for the comparable fiscal 2018 period. For the fiscal 2019 nine-month period, the Company reported a GAAP operating loss of $1.1 million as compared to GAAP operating income of $0.3 million in the comparable year-ago period. For the fiscal 2019 nine-month period, the Company reported non-GAAP operating income of $1.5 million, as compared to non-GAAP operating income of $2.3 million for the fiscal 2018 nine-month period.
Income Tax Provision (Benefit) Comparisons:
For the third quarter ended March 29, 2019, the Company recorded a benefit from income taxes of $6.8 million, as compared to a provision for income taxes of $1.0 million in the comparable fiscal 2018 period.
The benefit for the third quarter ended March 29, 2019 was primarily due to a partial release of valuation allowance related to the Company's U.S. deferred tax asset, based on sufficient positive objective evidence that the Company would generate sufficient taxable income in the U.S. to realize the deferred tax assets. Realization of the Company's deferred tax assets is primarily dependent upon future taxable income. If the Company's assumptions and consequently its estimates change in the future, the valuation allowances may be increased or decreased, resulting in a respective increase or decrease in income tax expense.
The net income tax benefit for the fiscal 2018 nine-month period was primarily due to the foreign tax refunds received from the Inland Revenue Authority of Singapore ("IRAS") of $1.3 million and the release of a valuation allowance related to refundable AMT credit of $3.3 million as provided under the Tax Act, offset by tax expense related to profitable subsidiaries.
Net Income (Loss) Attributable to Aviat Networks Comparisons:
For the fiscal 2019 third quarter, the Company reported GAAP net income of $4.3 million or net income per diluted share of $0.78, as compared to a GAAP net loss of $2.6 million or a net loss per diluted share of $0.49 in the fiscal 2018 third quarter. The Company reported a non-GAAP net loss in the fiscal 2019 third quarter of $1.8 million or a net loss per diluted share of $0.33, as compared to a non-GAAP net loss in the fiscal 2018 third quarter of $1.4 million or a net loss per diluted share of $0.26.
For the nine-month period in fiscal 2019, the Company reported GAAP net income of $5.9 million or net income per diluted share of $1.05, as compared to GAAP net income of $1.8 million or net income per diluted share of $0.32. The Company reported non-GAAP net income of $0.6 million or net income per diluted share of $0.11, as compared to non-GAAP net income of $0.9 million or net income per diluted share of $0.17 in the comparable fiscal 2018 period.
The Company reported an Adjusted Earnings Before Taxes, Depreciation and Amortization ("EBITDA") loss of $0.5 million for the fiscal 2019 third quarter, as compared to Adjusted EBITDA of $0.2 million in the fiscal 2018 third quarter. For the fiscal 2019 nine-month period, Adjusted EBITDA was $4.9 million, as compared to Adjusted EBITDA of $5.7 million in the fiscal 2018 nine-month period.
Balance Sheet Updates
As of March 29, 2019, the Company reported cash, cash equivalents and restricted cash of $36.1 million, as compared to cash, cash equivalents and restricted cash of $37.4 million at June 29, 2018. Note, during the fiscal 2019 nine-month period, the Company repurchased approximately $1.9 million of its common stock under its Stock Repurchase Program. On a sequential basis, when comparing against the fiscal 2019 second quarter, the Company's cash, cash equivalents and restricted cash position increased by $4.5 million. The sequential improvement was anticipated and was a result of stronger collections in North America.
A reconciliation of GAAP to non-GAAP financial measures for the third quarter and nine months of fiscal 2019, along with the accompanying notes, is provided in Table 3 below.
Fiscal 2019 Fourth Quarter and Full-Year Outlook
-- The Company expects revenue in the fiscal 2019 fourth quarter to be in
the range of $66.0 million - $71.0 million, which would result in total
revenue of approximately $246.0 million - $251.0 million in fiscal 2019,
or growth of approximately 1.0 - 3.0%. As previously communicated,
fiscal fourth quarter revenues were anticipated to be stronger than the
fiscal 2019 third quarter and the Company has resolved the component
shortage which adversely impacted fiscal 2019 third quarter results. The
narrowed range from the Company's prior guidance is related to the
current and anticipated slowdown in spending in Africa, offset by a
strong outlook in North America.
-- Non-GAAP gross margins in the fiscal 2019 fourth quarter are anticipated
to be 35.5 - 36.5%, resulting in non-GAAP gross margin of approximately
33.0% in fiscal 2019, in line with the Company's prior guidance.
-- Non-GAAP operating expenses in the fiscal 2019 fourth quarter are
anticipated to be in the range of $18.0 million - $19.0 million, with
the higher end of the range dependent upon achieving anticipated top-
and bottom-line results. This would result in total operating expenses
of $73.5 million - $74.5 million for fiscal 2019.
-- Non-GAAP operating income in the fiscal 2019 fourth quarter is
anticipated to be approximately $6.0 million, resulting in fiscal 2019
non-GAAP operating income of approximately $7.5 million.
-- Adjusted EBITDA in the fiscal 2019 fourth quarter is anticipated to be
approximately $7.0 million, resulting in fiscal 2019 Adjusted EBITDA of
$11.0 million - $12.0 million, with the minor variance from prior
guidance based on the current spending environment in Africa. However,
the Company anticipates a year-over-year bottom-line improvement,
representing the third year in a row.
Conference Call Details
Aviat Networks will host a conference call at 4:30 p.m. Eastern Time (ET) on Monday, May 13, 2019 to discuss its results for the fiscal 2019 third quarter and nine-month periods. To listen to the live conference call, please dial toll free (US/CAN) (866) 562-9910, (INTL) (661) 378-9805, conference ID: 3588565. Investors are invited to listen via webcast, which will be broadcasted live and via replay approximately two hours after the call at http://investors.aviatnetworks.com/events-and-presentations/events.
Non-GAAP Measures and Comparative Financial Information
Aviat Networks, Inc. reports information in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Management of Aviat Networks monitors gross margin, research and development expenses, selling and administrative expenses, operating income (loss), income tax provision (benefit), income (loss) from continuing operations attributable to Aviat Networks, basic and diluted net income (loss) per share from continuing operations attributable to Aviat Networks, adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA) attributable to Aviat Networks adjusted to exclude certain costs, charges, gains and losses, on a non-GAAP basis for planning and forecasting results in future periods, and may use these measures for some management compensation purposes. These measures exclude certain costs, expenses, gains and losses as shown on the attached Reconciliation of non-GAAP Financial Measures table (Table 3). As a result, management is presenting these non-GAAP measures in addition to results reported in accordance with GAAP to better communicate underlying operational and financial performance in each period. Management believes these non-GAAP measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any given period. Management also believes that these non-GAAP measures enhance the ability of an investor to analyze trends in Aviat Networks' business and to better understand its performance. Aviat Networks' management does not, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Aviat Networks presents these non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate its financial performance.
Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are included in the tables below.
About Aviat Networks
Aviat Networks, Inc. works to provide dependable products, services and support to our customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat Networks with their critical applications. Coupled with a long history of microwave innovations, Aviat Networks provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 50 years, the experts at Aviat Networks have delivered high performance products, simplified operations and the best overall customer experience. Aviat Networks is headquartered in Milpitas, California. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Twitter, Facebook, and LinkedIn.
Forward-Looking Statements
The information contained in this document includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 including Aviat Networks' beliefs and expectations regarding business conditions, new product solutions, customer positioning, revenue, future orders, bookings, new contracts, cost structure, operating income, profitability in fiscal 2019, process improvements, realignment plans and review of strategic alternatives. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat Networks and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat Networks regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following:
-- continued price and margin erosion as a result of increased competition
in the microwave transmission industry;
-- the impact of the volume, timing and customer, product and geographic
mix of our product orders;
-- our ability to meet financial covenant requirements which could impact,
among other things, our liquidity;
-- the timing of our receipt of payment for products or services from our
customers;
-- our ability to meet projected new product development dates or
anticipated cost reductions of new products;
-- our suppliers' inability to perform and deliver on time as a result of
their financial condition, component shortages, or other supply chain
constraints;
-- customer acceptance of new products;
-- the ability of our subcontractors to timely perform;
-- continued weakness in the global economy affecting customer spending;
-- retention of our key personnel;
-- our ability to manage and maintain key customer relationships;
-- uncertain economic conditions in the telecommunications sector combined
with operator and supplier consolidation;
-- our failure to protect our intellectual property rights or defend
against intellectual property infringement claims by others;
-- the results of restructuring efforts;
-- the ability to preserve and use our net operating loss carryforwards;
-- the effects of currency and interest rate risks;
-- the conduct of unethical business practices in developing countries; and
-- the impact of political turmoil in countries where we have significant
business.
For more information regarding the risks and uncertainties for our business, see "Risk Factors" in our Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on August 28, 2018 as well as other reports filed by Aviat Networks, Inc. with the SEC from time to time. Aviat Networks undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Investor Relations:
Glenn Wiener, GW Communications for Aviat Networks, Inc.
Tel: 212-786-6011 / gwiener@GWCco.com
Financial Tables to Follow
Table 1
AVIAT NETWORKS, INC.
Fiscal Year 2019 Third Quarter Summary
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Nine Months Ended
(In thousands, except per share amounts) March 29, March 30, March 29, March 30,
2019 2018 2019 2018
---
Revenues:
Revenue from product sales $
34,615 $
40,686 $
115,696 $
113,472
Revenue from services 19,422 21,407 63,933 66,526
Total revenues 54,037 62,093 179,629 179,998
Cost of revenues:
Cost of product sales 23,712 28,704 76,670 76,151
Cost of services 14,070 15,257 46,289 46,529
Total cost of revenues 37,782 43,961 122,959 122,680
Gross margin 16,255 18,132 56,670 57,318
Operating expenses:
Research and development expenses 5,350 4,754 15,603 14,696
Selling and administrative expenses 13,408 14,745 41,405 42,571
Restructuring (recovery) charges - (2) 796 (252)
Total operating expenses 18,758 19,497 57,804 57,015
Operating (loss) income (2,503) (1,365) (1,134) 303
Interest income 73 49 167 149
Interest expense (7) (5) (88) (24)
Other expense, net (1) (54) (1) (220)
(Loss) income before income taxes (2,438) (1,375) (1,056) 208
(Benefit from) provision for income taxes (6,777) 1,015 (6,955) (2,188)
Net income (loss) 4,339 (2,390) 5,899 2,396
Less: Net income attributable to noncontrolling interest, net of tax - 233 605
Net income (loss) attributable to Aviat Networks $
4,339 $
(2,623) $
5,899 $
1,791
Net income (loss) per share of common stock outstanding:
Basic $
0.81 $
(0.49) $
1.10 $
0.34
Diluted $
0.78 $
(0.49) $
1.05 $
0.32
Weighted-average shares outstanding:
Basic 5,381 5,344 5,382 5,331
Diluted 5,577 5,344 5,634 5,632
Table 2
AVIAT NETWORKS, INC.
Fiscal Year 2019 Third Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands) March 29, June 29,
2019 2018
---
ASSETS
Current Assets:
Cash and cash equivalents $
36,053 $
37,425
Restricted cash - 3
Accounts receivable, net 45,622 43,068
Unbilled receivables 28,474 14,167
Inventories 10,309 21,290
Customer service inventories 949 1,507
Other current assets 4,664 6,006
Total current assets 126,071 123,466
Property, plant and equipment, net 16,849 17,179
Deferred income taxes 12,185 5,600
Other assets 12,098 9,816
Total long-term assets 41,132 32,595
TOTAL ASSETS $
167,203 $
156,061
LIABILITIES AND EQUITY
Current Liabilities:
Short-term debt $
9,000 $
9,000
Accounts payable 34,165 30,878
Accrued expenses 22,234 25,864
Advance payments and unearned
revenue 18,507 19,300
Restructuring liabilities 1,459 1,426
Total current liabilities 85,365 86,468
Unearned revenue 8,071 6,593
Other long-term liabilities 953 1,250
Reserve for uncertain tax positions 3,654 2,941
Deferred income taxes 1,553 1,293
Total liabilities 99,596 98,545
Equity:
Preferred stock -
Common stock 54 54
Additional paid-in-capital 815,421 816,426
Accumulated deficit (734,837) (746,359)
Accumulated other comprehensive
loss (13,031) (12,605)
Total equity 67,607 57,516
TOTAL LIABILITIES AND EQUITY $
167,203 $
156,061
AVIAT NETWORKS, INC.
Fiscal Year 2019 Third Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE
To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating (loss) income, provision for or benefit from income taxes, net income attributable to Aviat Networks, diluted net income per share attributable to Aviat Networks, and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA) attributable to Aviat Networks, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow.
Table 3
AVIAT NETWORKS, INC.
Fiscal Year 2019 Third Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
March 29, % of March 30, % of March 29, % of March 30, % of
2019 Revenue 2018 Revenue 2019 Revenue 2018 Revenue
---
(In thousands, except percentages and per share amounts)
30.1 29.2 31.5
% %
%
GAAP gross margin $
16,255 $
18,132 $
56,670 % $
57,318 31.8
WTM inventory write-
down recovery - (127) (90) (317)
Share-based
compensation 44 53 144 152
30.2 29.1 31.6
% %
%
Non-GAAP gross margin 16,299 18,058 56,724 % 57,153 31.8
GAAP research and $
5,350 9.9 $
4,754 7.7 $
15,603 8.7
development expenses
% %
% % $
14,696 8.2
Share-based
compensation (42) (36) (123) (114)
Non-GAAP research and 5,308 9.8 4,718 7.6 15,480 8.6
development expenses
% %
% % 14,582 8.1
GAAP selling and 24.8 23.7 23.1
administrative
expenses % %
%
$
13,408 $
14,745 $
41,405 % $
42,571 23.7
Share-based
compensation (372) (446) (1,129) (1,423)
Strategic alternative
costs (491) (43) (491) (920)
Non-GAAP selling and 23.2 23.0 22.1
administrative
expenses % %
%
12,545 14,256 39,785 % 40,228 22.3
GAAP operating (loss) $
(2,503) (4.6) $
(1,365) (2.2) $
(1,134) (0.6)
income
% %
% % $
303 0.2
WTM inventory write-
down recovery - (127) (90) (317)
Share-based
compensation 458 535 1,396 1,689
Strategic alternative
costs 491 43 491 920
Restructuring
(recovery) charges,
net - (2) 796 (252)
Non-GAAP operating (1,554) (2.9) (916) (1.5) 1,459 0.8
(loss) income
% %
% % 2,343 1.3
GAAP income tax $
(6,777) (12.5) $
1,015 1.6 $
(6,955) (3.9)
(benefit) provision
% %
% % $
(2,188) (1.2)
Tax refund from Inland
Revenue Authority of
Singapore - 1,322
Tax receivable from
Department of Federal
Revenue of Brazil - 1,646
Release of valuation
allowance 7,054 7,054
AMT credit related to
valuation allowance
release - 3,303
Adjustment to reflect
pro forma tax rate 23 (715) (845) (1,537)
Non-GAAP income tax 300 0.6 300 0.5 900 0.5
provision
% %
% % 900 0.5
GAAP net income (loss) $
4,339 8.0 $
(2,623) (4.2) $
5,899 3.3
attributable to Aviat
Networks % %
% % $
1,791 1.0
Share-based
compensation 458 535 1,396 1,689
Strategic alternative
costs 491 43 491 920
Restructuring
(recovery) charges,
net - (2) 796 (252)
Nigeria FX loss on
dividend receivable - 51 188
WTM inventory write-
down recovery - (127) (90) (317)
Tax refund from Inland
Revenue Authority of
Singapore - (1,322)
Release of valuation
allowance (7,054) (7,054)
AMT credit related to
valuation allowance
release - (3,303)
Tax receivable from
Department of Federal
Revenue of Brazil - (1,646)
Adjustment to reflect
pro forma tax rate (23) 715 845 1,537
Non-GAAP net (loss) $
(1,789) (3.3) $
(1,408) (2.3) $
637 0.4
income attributable
to Aviat Networks % %
% % $
931 0.5
Diluted net income (loss) per share attributable to Aviat Networks' stockholders:
GAAP $
0.78 $
(0.49) $
1.05 $
0.32
Non-GAAP $
(0.33) $
(0.26) $
0.11 $
0.17
Shares used in computing diluted net income (loss) per share
GAAP 5,577 5,344 5,634 5,632
Non-GAAP 5,379 5,344 5,634 5,632
Adjusted EBITDA:
---
GAAP net income (loss) $
4,339 8.0 $
(2,623) (4.2) $
5,899 3.3
attributable to Aviat
Networks % %
% % $
1,791 1.0
Depreciation and
amortization of
property, plant and
equipment 1,024 1,391 3,408 3,981
Interest income
(expense), net (66) (44) (79) (125)
Share-based
compensation 458 535 1,396 1,689
Strategic alternative
costs 491 43 491 920
Restructuring
(recovery) charges,
net - (2) 796 (252)
Nigeria FX loss on
dividend receivable - 51 188
WTM inventory write-
down recovery - (127) (90) (317)
(Benefit from)
provision for income
taxes (6,777) 1,015 (6,955) (2,188)
Adjusted EBITDA $
(531) (1.0) $
239 0.4 $
4,866 2.7
attributable to Aviat
Networks % %
% % $
5,687 3.2
_____________________________
(1) The adjustments above reconcile our
GAAP financial results to the non-
GAAP financial measures used by us.
Our non-GAAP net (loss) income
attributable to Aviat Networks
excluded share-based compensation,
and other non-recurring charges
(recovery). Adjusted EBITDA was
determined by excluding depreciation
and amortization on property, plant
and equipment, interest, provision
for or benefit from income taxes,
and non-GAAP pre-tax adjustments,
as set forth above, from the GAAP
net income attributable to Aviat
Networks. We believe that the
presentation of these non-GAAP
items provides meaningful
supplemental information to
investors, when viewed in
conjunction with, and not in lieu
of, our GAAP results. However, the
non-GAAP financial measures have
not been prepared under a
comprehensive set of accounting
rules or principles. Non-GAAP
information should not be considered
in isolation from, or as a
substitute for, information prepared
in accordance with GAAP. Moreover,
there are material limitations
associated with the use of non-GAAP
financial measures.
Table 4
AVIAT NETWORKS, INC.
Fiscal Year 2019 Third Quarter Summary
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
Three Months Ended Nine Months Ended
March 29, March 30, March 29, March 30,
2019 2018 2019 2018
---
(In thousands)
North America $
28,581 $
31,756 $
93,660 $
99,743
International:
Africa and the
Middle East 11,079 17,623 39,058 43,767
Europe and Russia 3,326 3,638 10,271 11,898
Latin America and
Asia Pacific 11,051 9,076 36,640 24,590
25,456 30,337 85,969 80,255
Total revenue $
54,037 $
62,093 $
179,629 $
179,998
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