NASDAQ$AVNW

Aviat Networks Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Aviat reported a successful first quarter with increased revenues and Adjusted EBITDA.

Aviat Networks reported a 10.4% year-over-year increase in total revenue, reaching $73.2 million, and a 14.4% year-over-year increase in Adjusted EBITDA, amounting to $9.6 million. The company continues to execute its long-term strategic objectives, focusing on sales growth, margin expansion, and bottom-line improvements. They are well-positioned for growth in the rural broadband segment.

  • Total revenue increased by 10.4% year-over-year to $73.2 million.
  • Adjusted EBITDA increased by 14.4% year-over-year to $9.6 million.
  • North America revenue increased by 12.0% year-over-year to $50.9 million.
  • The company launched high availability routing software to lower the cost of mission critical router platforms.

Headline financials

Total Revenue

$73.2M

Previous: $66.3M+10.4%
EPS (adj)

$0.67

Previous: $0.62+8.1%
GAAP Gross Margin

35.7%

Previous: 36.6%-2.5%
Adjusted EBITDA

$9.6M

Previous: $8.4M+14.3%
Capital Expenditures

-$349K

Previous: -$1.02M+65.7%
Free Cash Flow

$4.33M

Previous: $4.92M-11.9%
Net Income

$4.68M

Previous: $5.94M-21.1%
Operating Income

$6.81M

Previous: $6.57M+3.8%
Gross Profit

$26.1M

Previous: $24.2M+7.6%
Cash & Equivalents

$47.3M

Previous: $36.2M+30.6%
Total Assets

$309M

Previous: $177M+74.8%
Stock-Based Comp

$863K

Previous: $571K+51.1%

Revenue & EPS history

Aviat · Revenue · Quarterly

$73.2M

Q1 2022+10.4%vs Q1 2021
Beat estimate in 12 of 12 quarters(100%)
ActualEstimate

Revenue by segment

Aviat · $73.2M total across 2 segments · Q1 2022

  • Product sales
    $50.8M+14.4%
  • Services
    $22.3M+2.2%

Forward guidance

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, including, without limitation, Aviat’s beliefs and expectations regarding business conditions, new product solutions, customer positioning, revenue, future orders, bookings, new contracts, cost structure, operating income, profitability in fiscal 2022, process improvements, realignment plans and review of strategic alternatives.

Tailwinds

  • Beliefs and expectations regarding business conditions
  • Expectations regarding new product solutions
  • Expectations regarding customer positioning
  • Expectations regarding revenue
  • Expectations regarding future orders

Headwinds

  • Impact of COVID-19 on business, operations and cash flows
  • Continued price and margin erosion as a result of increased competition in the microwave transmission industry
  • Impact of the volume, timing, and customer, product, and geographic mix of product orders
  • Ability to meet financial covenant requirements which could impact, among other things, liquidity
  • Timing of receipt of payment for products or services from customers

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.7%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+5.7%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+28.2%

Q2 2025

Best reaction

-31.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-28.5%-30.0%-14.3%
Q2 2026+14.3%+16.7%+11.2%
Q1 2026+0.4%-3.2%-13.2%
Q4 2025+12.6%+3.6%-7.3%
Q3 2025+5.0%+4.0%+12.2%
Q2 2025+28.2%+12.7%-1.7%
Q1 2025-31.9%-28.5%-15.1%
Q3 2024-15.1%-6.4%-7.6%
Q2 2024+19.9%+9.3%+19.4%
Q1 2024+14.6%+14.5%+17.4%
Q4 2023+19.0%+21.1%+16.6%
Q3 2023-11.9%-16.3%-3.2%
Q2 2023+21.5%+13.0%+14.6%
Q1 2023-12.1%-10.5%+0.6%
Q4 2022+1.3%+1.0%-7.7%
Q3 2022-3.5%-9.1%-6.7%
Q2 2022+1.2%-2.6%-9.1%
Q1 2022+4.8%+4.7%-4.1%
Q4 2021-14.4%-9.4%-13.9%
Q3 2021-13.5%-9.2%+13.4%
Q2 2021+4.8%+25.1%+22.7%
Q1 2021+16.0%+27.6%+86.8%
Q4 2020+3.3%+10.3%+3.4%
Q3 2020+27.7%+28.8%+41.9%
Q2 2020+1.6%-1.3%-12.9%
Q1 2020+0.6%+2.5%+4.1%
Q4 2019+6.1%-0.8%+9.7%
Q3 2019-0.7%-1.5%-1.9%
Q2 2019+4.3%-1.6%-8.0%
Q1 2019-1.2%-4.5%-7.8%
Q4 2018+14.1%+11.9%+2.2%
Q3 2018+8.0%+10.0%-0.2%
Q2 2018+2.5%+5.1%+12.7%
Q1 2018+18.2%+16.6%+14.0%
Q4 2017+9.4%+7.7%+5.2%
Q3 2017-18.3%-11.9%-28.4%
Q2 2017+14.2%+18.5%+23.6%
Q1 2017+19.9%+29.6%+55.3%
Q4 2016-8.7%-10.2%-0.3%
Q3 2016-5.9%
Q2 2016-14.1%
Q1 2016-1.0%
Q4 2015+2.9%
Q3 2015-1.7%
Q2 2015-9.9%
Q1 2015+2.9%
Q4 2014-8.3%
Q3 2014-29.2%
Q2 2014+6.9%
Q1 2014-4.6%
Q4 2013-10.2%
Q3 2013-19.7%
Q2 2013+3.9%
Q1 2013-3.0%
Q4 2012+1.3%
Q3 2012-1.4%
Q2 2012-0.8%
Q1 2012-3.2%
Q4 2011+6.4%
Q3 2011-4.3%
Q2 2010-0.5%
Q1 2010+3.6%
Q4 2010-0.3%
Q3 2010+2.4%

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