Aviat Networks Announces Fiscal 2025 Fourth Quarter and Twelve Months Financial Results
Fourth Quarter Total Revenue of
Operating Income of
Net Income of
Diluted Earnings per Share of
Fourth Quarter Highlights
- Completed fifth consecutive fiscal year of revenue growth
- Grew quarterly GAAP Net Income to
$5.2 million , an increase of$3.6 million or 236% versus the same period a year ago - Achieved the third consecutive record for quarterly Adjusted EBITDA with
$15.1 million at 13.0% margin
Fourth Quarter Financial Highlights
-
Total Revenues:
$115.3 million ;North America revenues of$58.0 million , up$1.8 million from the year ago period -
GAAP Results: Gross Margin 34.2%; Operating Expenses
$30.6 million ; Operating Income$8.9 million ; Net Income$5.2 million ; Net Income per diluted share ("Net Income per share")$0.40 -
Non-GAAP Results: Adjusted EBITDA
$15.1 million ; Gross Margin 34.7%; Operating Expenses$27.1 million ; Operating Income$12.9 million ; Net Income$10.7 million ; Net Income per share$0.83 -
Cash and Cash Equivalents:
$59.7 million -
Net Debt:
$27.9 million
Full Year Financial Highlights
-
Total Revenues:
$434.6 million , up 6.5% from last year -
GAAP Results: Gross Margin 32.1%; Operating Expenses
$128.9 million ; Operating Income$10.6 million ; Net Income$1.3 million , Net Income per diluted share$0.10 -
Non-GAAP Results: Adjusted EBITDA
$37.1 million ; Gross Margin 32.8%; Operating Expenses$113.5 million ; Operating Income$29.0 million ; Net Income per diluted share$1.67
Fiscal 2025 Fourth Quarter and Twelve Months Ended
Revenues
The Company reported total revenues of
For the twelve months ended
Gross Margins
In the fiscal 2025 fourth quarter, the Company reported GAAP gross margin of 34.2% and non-GAAP gross margin of 34.7%. This compares to GAAP gross margin of 35.3% and non-GAAP gross margin of 35.9% in the fiscal 2024 fourth quarter, a change of (110) and (120) basis points, respectively. The fluctuations were driven by project and regional customer mix.
For the twelve months ended
Operating Expenses
The Company reported GAAP total operating expenses of
For the twelve months ended
Operating Income
The Company reported GAAP operating income of
For the twelve months ended
Income Taxes
The Company reported GAAP income tax expense of
For the twelve months ended
Net Income / Net Income Per Share
The Company reported GAAP net income of
The Company reported GAAP net income of
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2025 fourth quarter was
For the twelve months ended
Balance Sheet Highlights
The Company reported
Fiscal 2026 Full Year Guidance
The Company established its fiscal 2026 full year revenue and Adjusted EBITDA guidance as follows:
- Full year Revenue between
$440 and$460 million - Full year Adjusted EBITDA between
$45.0 and$55.0 million
Conference Call Details
Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website.
Upcoming Events
Aviat will participate in the upcoming 9th Annual
About
Forward-Looking Statements
The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between
For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended
Investor Relations:
Email: investorinfo@aviatnet.com
Table 1
Fiscal Year 2025 Fourth Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
Product sales |
$ 67,405 |
|
$ 78,795 |
|
$ 287,657 |
|
$ 274,205 |
Services |
47,935 |
|
37,865 |
|
146,949 |
|
133,878 |
Total revenues |
115,340 |
|
116,660 |
|
434,606 |
|
408,083 |
Cost of revenues: |
|
|
|
|
|
|
|
Product sales |
49,477 |
|
50,794 |
|
208,017 |
|
171,783 |
Services |
26,397 |
|
24,727 |
|
87,153 |
|
91,568 |
Total cost of revenues |
75,874 |
|
75,521 |
|
295,170 |
|
263,351 |
Gross margin |
39,466 |
|
41,139 |
|
139,436 |
|
144,732 |
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
7,434 |
|
10,985 |
|
35,768 |
|
36,426 |
Selling and administrative |
21,134 |
|
23,059 |
|
89,482 |
|
85,038 |
Restructuring charges |
2,019 |
|
1,640 |
|
3,611 |
|
3,867 |
Total operating expenses |
30,587 |
|
35,684 |
|
128,861 |
|
125,331 |
Operating income |
8,879 |
|
5,455 |
|
10,575 |
|
19,401 |
Interest expense, net |
1,806 |
|
916 |
|
6,058 |
|
2,337 |
Other (income) expense, net |
(3,106) |
|
(70) |
|
941 |
|
158 |
Income before income taxes |
10,179 |
|
4,609 |
|
3,576 |
|
16,906 |
Provision for income taxes |
4,982 |
|
3,060 |
|
2,235 |
|
6,146 |
Net income |
$ 5,197 |
|
$ 1,549 |
|
$ 1,341 |
|
$ 10,760 |
|
|
|
|
|
|
|
|
Net income per share of common stock outstanding: |
|
|
|
|
|
|
|
Basic |
$ 0.41 |
|
$ 0.12 |
|
$ 0.11 |
|
$ 0.88 |
Diluted |
$ 0.40 |
|
$ 0.12 |
|
$ 0.10 |
|
$ 0.86 |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
12,709 |
|
12,597 |
|
12,681 |
|
12,182 |
Diluted |
12,867 |
|
12,829 |
|
12,826 |
|
12,456 |
Table 2
Fiscal Year 2025 Fourth Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|||
|
|||
(In thousands) |
|
|
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ 59,690 |
|
$ 64,622 |
Accounts receivable, net |
180,321 |
|
158,013 |
Unbilled receivables |
105,870 |
|
90,525 |
Inventories |
83,979 |
|
62,267 |
Assets held for sale |
— |
|
2,720 |
Other current assets |
33,715 |
|
27,076 |
Total current assets |
463,575 |
|
405,223 |
Property, plant and equipment, net |
17,453 |
|
9,480 |
|
19,655 |
|
8,217 |
Intangible assets, net |
26,897 |
|
13,644 |
Deferred income taxes |
88,149 |
|
83,112 |
Right of use assets |
3,113 |
|
3,710 |
Other assets |
14,454 |
|
11,837 |
Total long-term assets |
169,721 |
|
130,000 |
Total assets |
$ 633,296 |
|
$ 535,223 |
LIABILITIES AND EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ 148,093 |
|
$ 92,854 |
Accrued expenses |
38,897 |
|
42,148 |
Short-term lease liabilities |
1,090 |
|
1,006 |
Advance payments and unearned revenue |
73,735 |
|
58,839 |
Other current liabilities |
1,757 |
|
21,614 |
Current portion of long-term debt |
18,624 |
|
2,396 |
Total current liabilities |
282,196 |
|
218,857 |
Long-term debt |
68,966 |
|
45,954 |
Unearned revenue |
8,063 |
|
7,413 |
Long-term lease liabilities |
2,241 |
|
2,823 |
Other long-term liabilities |
430 |
|
394 |
Reserve for uncertain tax positions |
3,242 |
|
3,485 |
Deferred income taxes |
4,975 |
|
412 |
Total liabilities |
370,113 |
|
279,338 |
Commitments and contingencies |
|
|
|
Stockholder's equity: |
|
|
|
Preferred stock |
— |
|
— |
Common stock |
127 |
|
126 |
|
(7,076) |
|
(6,479) |
Additional paid-in-capital |
866,119 |
|
860,071 |
Accumulated deficit |
(577,172) |
|
(578,513) |
Accumulated other comprehensive loss |
(18,815) |
|
(19,320) |
Total stockholders' equity |
263,183 |
|
255,885 |
Total liabilities and stockholders' equity |
$ 633,296 |
|
$ 535,223 |
Fiscal Year 2025 Fourth 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 |
|
1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort. |
Table 3
Fiscal Year 2025 Fourth Quarter Summary RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Condensed Consolidated Statements of Operations (Unaudited) |
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|
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
% of Revenue |
|
|
|
% of Revenue |
|
|
|
% of Revenue |
|
|
|
% of Revenue |
|
(In thousands, except percentages and per share amounts) |
||||||||||||||
GAAP gross margin |
$ 39,466 |
|
34.2 % |
|
$ 41,139 |
|
35.3 % |
|
$ 139,436 |
|
32.1 % |
|
$ 144,732 |
|
35.5 % |
Share-based compensation |
19 |
|
|
|
96 |
|
|
|
233 |
|
|
|
406 |
|
|
Merger and acquisition related expense |
595 |
|
|
|
650 |
|
|
|
2,890 |
|
|
|
3,409 |
|
|
Non-GAAP gross margin |
40,080 |
|
34.7 % |
|
41,885 |
|
35.9 % |
|
142,559 |
|
32.8 % |
|
148,547 |
|
36.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development expenses |
$ 7,434 |
|
6.4 % |
|
$ 10,985 |
|
9.4 % |
|
$ 35,768 |
|
8.2 % |
|
$ 36,426 |
|
8.9 % |
Share-based compensation |
(78) |
|
|
|
(141) |
|
|
|
(534) |
|
|
|
(593) |
|
|
Non-GAAP research and development expenses |
7,356 |
|
6.4 % |
|
10,844 |
|
9.3 % |
|
35,234 |
|
8.1 % |
|
35,833 |
|
8.8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling and administrative expenses |
$ 21,134 |
|
18.3 % |
|
$ 23,059 |
|
19.8 % |
|
$ 89,482 |
|
20.6 % |
|
$ 85,038 |
|
20.8 % |
Share-based compensation |
(1,344) |
|
|
|
(1,559) |
|
|
|
(6,300) |
|
|
|
(6,342) |
|
|
Merger and acquisition related expense |
(6) |
|
|
|
(1,070) |
|
|
|
(4,896) |
|
|
|
(9,121) |
|
|
Non-GAAP selling and administrative expenses |
19,784 |
|
17.2 % |
|
20,430 |
|
17.5 % |
|
78,286 |
|
18.0 % |
|
69,575 |
|
17.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expense |
$ 30,587 |
|
26.5 % |
|
$ 35,684 |
|
30.6 % |
|
$ 128,861 |
|
29.7 % |
|
$ 125,331 |
|
30.7 % |
Share-based compensation |
(1,422) |
|
|
|
(1,700) |
|
|
|
(6,834) |
|
|
|
(6,935) |
|
|
Merger and acquisition and other expenses |
(6) |
|
|
|
(1,070) |
|
|
|
(4,896) |
|
|
|
(9,121) |
|
|
Restructuring (charges) recovery |
(2,019) |
|
|
|
(1,640) |
|
|
|
(3,611) |
|
|
|
(3,867) |
|
|
Non-GAAP operating expense |
27,140 |
|
23.5 % |
|
31,274 |
|
26.8 % |
|
113,520 |
|
26.1 % |
|
105,408 |
|
25.8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
$ 8,879 |
|
7.7 % |
|
$ 5,455 |
|
4.7 % |
|
$ 10,575 |
|
2.4 % |
|
$ 19,401 |
|
4.8 % |
Share-based compensation |
1,441 |
|
|
|
1,796 |
|
|
|
7,067 |
|
|
|
7,341 |
|
|
Merger and acquisition related expense |
601 |
|
|
|
1,720 |
|
|
|
7,786 |
|
|
|
12,530 |
|
|
Restructuring charges |
2,019 |
|
|
|
1,640 |
|
|
|
3,611 |
|
|
|
3,867 |
|
|
Non-GAAP operating income |
12,940 |
|
11.2 % |
|
10,611 |
|
9.1 % |
|
29,039 |
|
6.7 % |
|
43,139 |
|
10.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income tax provision |
$ 4,982 |
|
4.3 % |
|
$ 3,060 |
|
2.6 % |
|
$ 2,235 |
|
0.5 % |
|
$ 6,146 |
|
1.5 % |
Adjustment to reflect pro forma tax rate |
(4,582) |
|
|
|
(2,560) |
|
|
|
(635) |
|
|
|
(4,546) |
|
|
Non-GAAP income tax provision |
400 |
|
0.3 % |
|
500 |
|
0.4 % |
|
1,600 |
|
0.4 % |
|
1,600 |
|
0.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
$ 5,197 |
|
4.5 % |
|
$ 1,549 |
|
1.3 % |
|
$ 1,341 |
|
0.3 % |
|
$ 10,760 |
|
2.6 % |
Share-based compensation |
1,441 |
|
|
|
1,796 |
|
|
|
7,067 |
|
|
|
7,341 |
|
|
Merger and acquisition related expense |
601 |
|
|
|
1,720 |
|
|
|
7,786 |
|
|
|
12,530 |
|
|
Restructuring charges |
2,019 |
|
|
|
1,640 |
|
|
|
3,611 |
|
|
|
3,867 |
|
|
Other (income) expense, net |
(3,106) |
|
|
|
(70) |
|
|
|
941 |
|
|
|
158 |
|
|
Adjustment to reflect pro forma tax rate |
4,582 |
|
|
|
2,560 |
|
|
|
635 |
|
|
|
4,546 |
|
|
Non-GAAP net income |
$ 10,734 |
|
9.3 % |
|
$ 9,195 |
|
7.9 % |
|
$ 21,381 |
|
4.9 % |
|
$ 39,202 |
|
9.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share: |
|||||||||||||||
GAAP |
$ 0.40 |
|
|
|
$ 0.12 |
|
|
|
$ 0.10 |
|
|
|
$ 0.86 |
|
|
Non-GAAP |
$ 0.83 |
|
|
|
$ 0.72 |
|
|
|
$ 1.67 |
|
|
|
$ 3.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP |
12,867 |
|
|
|
12,829 |
|
|
|
12,826 |
|
|
|
12,456 |
|
|
Non-GAAP |
12,867 |
|
|
|
12,829 |
|
|
|
12,826 |
|
|
|
12,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
$ 5,197 |
|
4.5 % |
|
$ 1,549 |
|
1.3 % |
|
$ 1,341 |
|
0.3 % |
|
$ 10,760 |
|
2.6 % |
Depreciation and amortization of property, plant |
2,110 |
|
|
|
1,265 |
|
|
|
8,045 |
|
|
|
4,993 |
|
|
Interest expense, net |
1,806 |
|
|
|
916 |
|
|
|
6,058 |
|
|
|
2,337 |
|
|
Other (income) expense, net |
(3,106) |
|
|
|
(70) |
|
|
|
941 |
|
|
|
158 |
|
|
Share-based compensation |
1,441 |
|
|
|
1,796 |
|
|
|
7,067 |
|
|
|
7,341 |
|
|
Merger and acquisition related expense |
601 |
|
|
|
1,720 |
|
|
|
7,786 |
|
|
|
12,530 |
|
|
Restructuring charges |
2,019 |
|
|
|
1,640 |
|
|
|
3,611 |
|
|
|
3,867 |
|
|
Provision for income taxes |
4,982 |
|
|
|
3,060 |
|
|
|
2,235 |
|
|
|
6,146 |
|
|
Adjusted EBITDA |
$ 15,050 |
|
13.0 % |
|
$ 11,876 |
|
10.2 % |
|
$ 37,084 |
|
8.5 % |
|
$ 48,132 |
|
11.8 % |
|
|
(1) |
The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income 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 GAAP net income. 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
Fiscal Year 2025 Fourth Quarter Summary SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
$ 58,017 |
|
$ 56,194 |
|
$ 207,606 |
|
$ 206,073 |
International: |
|
|
|
|
|
|
|
|
11,218 |
|
13,063 |
|
49,428 |
|
48,884 |
|
8,337 |
|
7,231 |
|
31,713 |
|
24,608 |
|
37,768 |
|
40,172 |
|
145,859 |
|
128,518 |
Total international |
57,323 |
|
60,466 |
|
227,000 |
|
202,010 |
Total revenue |
$ 115,340 |
|
$ 116,660 |
|
$ 434,606 |
|
$ 408,083 |
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