NASDAQ$AVNW

Aviat Networks Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Aviat reported an increase in revenue and adjusted EBITDA, driven by strategic objectives and the acquisition of Redline Communications.

Aviat Networks reported a strong start to fiscal year 2023, with an 11.1% year-over-year increase in total revenue to $81.3 million. The company's GAAP gross margin improved to 36.3%, and adjusted EBITDA rose by 11.3% to $10.7 million. The acquisition of Redline Communications contributed to the positive results.

  • Company executed on key long-term strategic objectives resulting in continued year-over-year increase in quarterly revenues, gross margins, and Adjusted EBITDA.
  • Closed first acquisition in over a decade (Redline Communications) and integration has progressed as planned.
  • Bharti Airtel win proves the Company’s differentiation in products and services for 5G, supply chain, and operating system.
  • Company launched its Vendor Agnostic Multi-Band solution which allows customers to cost-effectively add significant capacity to their network.

Headline financials

Total Revenue

$81.3M

Previous: $73.2M+11.1%
EPS (adj)

$0.75

Previous: $0.67+11.9%
Non-GAAP Gross Margin

36.5%

No prior period
Adjusted EBITDA

$10.7M

Previous: $9.6M+11.3%
Capital Expenditures

-$474K

Previous: -$349K-35.8%
Free Cash Flow

-$3.22M

Previous: $4.33M-174.3%
Net Income

-$2.75M

Previous: $4.68M-158.7%
Operating Income

$3.91M

Previous: $6.81M-42.6%
Gross Profit

$29.5M

Previous: $26.1M+12.9%
Cash & Equivalents

$21.6M

Previous: $47.3M-54.3%
Total Assets

$327M

Previous: $309M+5.8%
Stock-Based Comp

$1.84M

Previous: $863K+113.0%

Revenue & EPS history

Aviat · Revenue · Quarterly

$81.3M

Q1 2023+11.1%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Aviat · $91.2M total across 2 segments · Q4 2023

  • Product sales
    $63.8M+23.4%
  • Services
    $27.3M+6.4%

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 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 2023, process improvements, realignment plans and review of strategic alternatives.

Tailwinds

  • Aviat's beliefs and expectations regarding business conditions
  • Aviat's beliefs and expectations regarding new product solutions
  • Aviat's beliefs and expectations regarding customer positioning
  • Aviat's beliefs and expectations regarding revenue
  • Aviat's beliefs and expectations regarding future orders

Headwinds

  • The impact of COVID-19
  • Disruptions relating to the ongoing conflict between Russia and Ukraine
  • Continued price and margin erosion in the microwave transmission industry
  • The impact of the volume, timing, and customer, product, and geographic mix of our product orders
  • The timing of our receipt of payment

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 2023

Historical avgQ1 2023

+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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