Business
Aviat Networks Provides Update on Its Fiscal 2020 Second Quarter and Six-Month Results and Additional Commentary on Its Fiscal Year Outlook
AUSTIN, Texas, Jan. 22, 2020 /PRNewswire/ -- Aviat Networks, Inc. (NASDAQ: AVNW) ("Aviat" or the "Company"), the leading expert in wireless transport
About this update from Aviat Networks, Inc.
[{"type":"text","content":"AUSTIN, Texas, Jan. 22, 2020 /PRNewswire/ -- Aviat Networks, Inc. (NASDAQ: AVNW) (\"Aviat\" or the \"Company\"), the leading expert in wireless transport solutions, today announced that its fiscal 2020 second quarter and first half results are anticipated to come in lower than previously forecasted due to a cyberattack at one of the Company's contract manufacturing vendors. This effectively shut down the vendor's production and shipments of Aviat products for a three-week period. While this issue was quickly and fully remediated by the vendor and is not expected to have any impact on Aviat on a go-forward basis, the Company's revenue, gross margins and anticipated profitability for the first half of its fiscal 2020 were affected. However, order flow continued to be strong, cash increased sequentially and from the prior year end, and the Company remains on track for improved profitability for the full fiscal year.\n\n \n \n\n \nPete Smith, Aviat's newly appointed President and Chief Executive Officer stated, \"While it's disappointing to come in below our prior guidance, I'm quite pleased with how the team responded to assist our vendor and support our customers. Our vendor lost production capacity for three weeks of the quarter, or approximately 23% of its available capacity, resulting in us missing our top-line budget by approximately 5%, though bookings were very strong. Business is not lost, just delayed, and our revenue outlook for the fiscal year has not changed. This event, however, impacted profitability for the first half of fiscal 2020. We still believe Aviat will post year-over-year bottom-line improvements and end the fiscal year with a stronger balance sheet. Long-term, with continued investments in 5G, public safety and other mission-critical networks, we feel good about Aviat's competitive position and ability to enhance stockholder value.\"\nThe Company had previously stated that for the comparable six-month periods in fiscal 2020 and fiscal 2019, total revenue would be down modestly, gross margins would improve, non-GAAP operating income would be approximately $6 million, and adjusted earnings before interest, tax, depreciation and amortization and other non-GAAP adjustments (\"Adjusted EBITDA\") would be approximately $7.5 million. Based on preliminary, unaudited results for the fiscal 2020 second quarter and si...