NASDAQ$AVNW

Aviat Networks Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Aviat Networks reported an increase in Q4 revenue and operating income year-over-year, driven by strategic objectives and strong bookings.

Aviat Networks reported an 8.0% year-over-year increase in total Q4 revenue, reaching $77.4 million. GAAP operating income increased by 40.4% year-over-year to $5.2 million, and adjusted EBITDA increased by 31.1% to $9.1 million.

  • Company executed on key long-term strategic objectives resulting in continued year-over-year increase in quarterly revenues and Adjusted EBITDA.
  • Highest bookings quarter in seven years, and the highest in North America in over a decade.
  • Highest bookings quarter for multi-band to date, with 60% coming from the EMEA region.
  • Highest bookings quarter for management software since the Company’s inception, including the first SaaS-based Health Assurance Software sale with a large U.S. state government.

Headline financials

Total Revenue

$77.4M

Previous: $71.7M+8.0%
EPS (adj)

$0.67

Previous: $0.45+48.9%
GAAP Gross Margin

35.5%

Previous: 36.1%-1.7%
Adjusted EBITDA

$9.15M

Previous: $7M+30.7%
Capital Expenditures

$764K

Previous: $448K+70.5%
Free Cash Flow

$12.8M

Previous: $2.66M+381.1%
Net Income

$4.53M

Previous: $2.8M+61.9%
Operating Income

$5.24M

Previous: $3.7M+41.6%
Gross Profit

$27.5M

Previous: $25.9M+6.1%
Cash & Equivalents

$36.9M

Previous: $47.9M-23.1%
Total Assets

$324M

Previous: $298M+8.8%
Stock-Based Comp

$1.37M

Previous: $767K+78.6%

Revenue & EPS history

Aviat · Revenue · Quarterly

$77.4M

Q4 2022+8%vs Q4 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Aviat · $77.4M total across 2 segments · Q4 2022

  • Product sales
    $51.7M+4.8%
  • Services
    $25.7M+15.2%

Forward guidance

Aviat Networks' forward-looking statements involve risks and uncertainties, cautioning against reliance on these statements. Factors like COVID-19, geopolitical issues, industry competition, supply chain constraints, inflation, and global economic conditions could materially affect actual results.

Tailwinds

  • 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
  • Our ability to meet product development dates or cost reductions of products
  • Our suppliers’ inability to perform and deliver on time, component shortages, or other supply chain constraints

Headwinds

  • The effects of inflation
  • The ability of our subcontractors to timely perform
  • Weakness in the global economy affecting customer spending
  • Retention of our key personnel
  • Our failure to protect our intellectual property rights or defend against intellectual property infringement claims

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 Q4 2022

Historical avgQ4 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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