Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q4 FY2017 Earnings Presentation
23 slides from Aviat Networks's earnings presentation, September 2017
Slide 1: Fiscal 2017 Fourth Quarter Investor Presentation
Fiscal 2017 Fourth Quarter Investor Presentation AVNW (NASDAQ) September 2017
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The information contained in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act and Section 27A of the Securities Act, including expectations regarding
Slide 3: About Us
ABOUT US Aviat is the trusted expert in microwave networking Best in class TCO and proven mission-critical microwave networking solutions HIGH PERFORMANCE SIMPLER OPERATIONS CUSTOMER SERVICE PRODUCTS Global Microwave Portfolio Cloud-Enabled Services Planning Automation Highest Performance Profession
Slide 4: Significant Year-over-Year Improvements in FY17
SIGNIFICANT YEAR-OVER-YEAR IMPROVEMENTS IN FY17 Income Statement Summary (Non-GAAP) KEY TAKE-AWAY’S: FY17 FY16 ($’s in millions) Variance Actual Actual • Goal was to be profitable in FY17 • $20M improvement in non-GAAP Net Income Revenue $241.9 $268.7 ($26.8) • Revenue Gross Margin $75.9 $66.9 $8.9
Slide 5: FY17 Achievements: Customer Momentum
FY17 ACHIEVEMENTS: CUSTOMER MOMENTUM Aviat Networks Awarded Microwave and Router Business with Broward County, Florida Aviat Partners with Airtel Nigeria for Enterprise Access Aviat is Teaming with Motorola Solutions to Connect Local First Responders with Business Includes Microwave Routers, Radios
Slide 6: FY17 Achievement: Product Innovation
FY17 ACHIEVEMENT: PRODUCT INNOVATION Aviat Networks Introduces Industry's Highest Capacity Microwave Aviat Networks to Showcase Advanced Microwave Capabilities at IWCE WTM 4000 Provides up to 2.5Gbps Uncompressed Throughput per Radio New High Capacity, SDN Solutions Further Enhance Industry-Leading
Slide 7: Fiscal 2017 Fourth Quarter Financial Update
Fiscal 2017 Fourth Quarter Financial Update Please see our earnings press release dated September 6, 2017 for our GAAP to Non -GAAP reconciliation
Slide 8: FY17 Fourth Quarter Financial Highlights
FY17 FOURTH QUARTER FINANCIAL HIGHLIGHTS (NON-GAAP COMPARISONS) Income Statement Summary (Non-GAAP) • Revenue of $56.4 million, a decrease of $1.8 million or 3.1% • YOY decline primarily related to lower international revenue, offset ($’s in millions) Q4 FY17 Q4 FY16 by a $3.7 million increase in No
Slide 9: FY17 Q4 Balance Sheet Key Indicators
FY17 Q4 BALANCE SHEET KEY INDICATORS (BALANCE SHEET STRENGTHENED – CASH POSITION INCREASED YEAR-OVER-YEAR) Q4 FY16 Q4 ($’s in millions) (FY end) FY17 • Net gain in cash since FY16 year-end of $5.2 million. Decline in Cash and Cash cash position sequentially due to collections related to change in Eq
Slide 10: Trending 6 Quarter Financials
TRENDING 6 QUARTER FINANCIALS Sales Gross Profit ($ in millions) ($ in millions) Operating Expenses Adjusted EBITDA ($ in millions) ($ in millions) _________________ Note: Aviat has a June 30th fiscal year end. SLIDE 10 AVIAT NETWORKS
Slide 11: Trending 6 Qtr Balance Sheet Key Indicators
TRENDING 6 QTR BALANCE SHEET KEY INDICATORS Cashflow from Operations Days Sales Outstanding (DSO) ($ in millions) (in Days) Inventory Turns Cash Conversion Cycle* (CCC) (in Days) *Includes unbilled receivables SLIDE 11 AVIAT NETWORKS
Slide 12: Key Trends/Factors Driving our Optimism
Key Trends/Factors Driving our Optimism Market Dynamics Customer Momentum Product Innovation Process Excellence Competitive Positioning
Slide 13: Compelling Market Demand Drivers
COMPELLING MARKET DEMAND DRIVERS LTE Enabled Significant First Responder Significant Network Operational & Law Enforcement Challenges Applications Investments Wireless Needed = Opportunity Broadband Networks Planning Exponential & Design Network Tens of Traffic Operations Billions Demand Fiber Autom
Slide 14: Driving Our Optimism: Marquee Customers
DRIVING OUR OPTIMISM: MARQUEE CUSTOMERS Leading Provider in Key Markets Served – Global Service Providers Opportunity to leverage significant installed base SLIDE 14 AVIAT NETWORKS
Slide 15: Specialization and Reach to Drive Growth Within Private Networks Vertical
DRIVING OUR OPTIMISM: SPECIALIZATION AND REACH TO DRIVE GROWTH WITHIN PRIVATE NETWORKS VERTICAL Segment Leader The Clear Choice Public Safety Global Partners in Presence in all 50 States, Security & Defense National Security Networks With 25 U.S. Statewide France, Middle East, North Networks #1 Supp
Slide 16: Growing Private Networks Customer Base
DRIVING OUR OPTIMISM: GROWING PRIVATE NETWORKS CUSTOMER BASE SLIDE 16 AVIAT NETWORKS
Slide 17: Industry Leading Products
DRIVING OUR OPTIMISM: INDUSTRY LEADING PRODUCTS MOST SECURE, HYBRID SPLIT-MOUNT NETWORK MISSION CRITICAL PLATFORM OUTDOOR RADIO UNIT MANAGEMENT INDUSTRY’S HIGHEST CAPACITY MICROWAVE UPGRADED (RAC70) UPGRADED (Latency) ECLIPSE ODU 600 PROVISION MICROWAVE ROUTERS HIGHEST POWER MICROWAVE RADIO ALL NEW
Slide 18: Driving Our Optimism: Innovation
DRIVING OUR OPTIMISM: INNOVATION Aviat WTM 4000 2.5 Gbit/s • Highest capacity radio ever made • Purpose-built for software-defined networking (SDN) • Pay for use (PFU) software, WiFi access and other innovations to simplify operations • Industry-leading RFIC core • Significant TCO benefits • First c
Slide 19: Industry-Leading Services Capabilities
DRIVING OUR OPTIMISM: INDUSTRY-LEADING SERVICES CAPABILITIES INDUSTRY’S LEADING AVIATDESIGN AVIATDEPLOY AUTOMATION PLATFORM FOR MICROWAVE CUSTOMER NETWORK ASSURANCE SERVICES AVIATCARE MICROWAVE SIMPLIFIED Strong recurring revenue streams and prospects for growth SLIDE 19 AVIAT NETWORKS
Slide 20: FY18 Outlook
FY18 Outlook Positioned for Top-Line Growth and Significant Bottom-Line Improvements
Slide 21: FY18 Financial Outlook
FY18 FINANCIAL OUTLOOK FY18 Take-Aways Income Statement Summary (Non-GAAP) FY16 FY17 FY18 ($’s in millions) Results Results ➢ Anticipating year-over-year growth Full-Year Outlook Actual Actual ➢ Gross margins continue to trend upward Revenue $268.7 $241.9 $245.0 - $260.0 Gross Margin (as a %) 24.9%
Slide 22: Key Takeaways
KEY TAKEAWAYS ➢ Stronger foundation driven by operational excellence and improved performance ➢ Top-line stabilization with growth anticipated: ➢ Strong installed customer base with near- and long-term growth opportunities ➢ Enhanced products and service offerings ➢ Multiple prospects for growth wit
Slide 23: Aviat Networks
Aviat NETWORKS WWW.AVIATNETWORKS.COM