Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q3 2020 Earnings Presentation
19 slides from Aviat Networks's earnings presentation, May 2020
Slide 1: FY20 Third Quarter and Nine-Month Results Update
Aviat Networks (NASDAQ: AVNW) FY20 Third Quarter and Nine-Month Results Update Investor Presentation – May 2020
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 Aviat Networks
About Aviat Networks Aviat Networks is a leading global supplier of wireless networking solutions (wireless backhaul products and services) to communications service providers (CSP’s) and private network operators • Born from the combination of Harris Corporation’s Microwave Communications Exchange
Slide 4: Strong Global Presence – Growing Global Customer Base
Strong Global Presence – Growing Global Customer Base Uniquely Positioned to Address Multiple Market Segments Through Innovation VERTICAL DIVERSITY (FY19) GEOGRAPHICAL DIVERSITY (FY19) Positive momentum in service provider & private networks Presence in all geographies; strongest in high-margin regi
Slide 5: Industry-Leading Solutions To Drive Market Expansion
Industry-Leading Solutions To Drive Market Expansion Moving Beyond Traditional Microwave Products to Develop Solutions for Mission-Critical Networks MOST SECURE, HYBRID SPLIT-MOUNT ALL-OUTDOOR NETWORK MANAGEMENT Mission-Critical Platform Outdoor Radio Unit Ethernet Eclipse ODU 600 (6-42 GHz) WTM 400
Slide 6: Favorable Market Dynamics to Support Growth
12,000,000 10,000,000 Favorable 8,000,000 Market 6,000,000 4,000,000 5G Tower Trends Dynamics to 2,000,000 Support 0 2017 2018 2019 2020 2021 2022 2023 2024 Axis Title Growth 4G 5G Total Towers “5G use cases will require 3,000,000 network performance to increase 10-fold over current 2,500,000 Expend
Slide 7: Newest Innovation to Capitalize on the Transition to 5G
Newest Innovation to Capitalize on the Transition to 5G WTM 4800 Solution to Help Optimize the 5G Revolution – Distinct Competitive Advantages W TH A AT’S S NG -BOX MULTI-BAND SOLUTION YOU CAN VIRTUALLY SIGNIFICANTLY ELIMINATE IMPROVE CAPACITY BY UP TO OUTAGES WTM 4800 E-BAND & MULTI-BAND RADIO (com
Slide 8: Building Customer Momentum in Support of 5G Rollouts
Building Customer Momentum in Support of 5G Rollouts Aviat Receives Orders from a Top-5 U.S. Wireless Carrier for 5G Transport Aviat Networks Signs Global Frame Agreement with Ooredoo Group Globe Telecom Selects Aviat’s WTM 4800 Multi-Band Solution to Support 5G Deployments 8 May 2020 AVIAT NETWORKS
Slide 9: Demand for Mission-Critical Networks is Increasing
Demand for Mission-Critical Networks is Increasing Industrial IoT $500B Industrial IoT market by 2020 (Accenture) Driving more critical bandwidth in vertical markets Private LTE $16B for Private LTE by 2025 (ABI Research) Paving way for 5G services in vertical markets Public Safety & Security CAGR 1
Slide 10: Private Networks: Market Leadership Position
Private Networks: Market Leadership Position Expanding Customer Base, Growing Backlog, Strong Pipeline THE CLEAR GLOBAL EXPANDING Capitalizing on critical CHOICE PARTNERS REACH Segment Leader In Security & Defense Recent Breakthrough communications trends Presence in all 50 states NATIONAL OIL REGIO
Slide 11: Some Recent Momentum in Private Networks
Some Recent Momentum in Private Networks Aviat Awarded Aviat Awarded Aviat Wins ~$20 Microwave Business Microwave and Million in U.S. Utility with State of Alaska IP/MPLS Business Business and Expands by the State of Customer Base Nevada Aviat Awarded 10-Year, Aviat Awarded $13 Million Subscription-
Slide 12: Rural Broadband Represents Significant Growth Opportunity for Aviat
Rural Broadband Represents Significant Growth Opportunity for Aviat $1.5B $20B $9B CAF II Rural Digital 5G Fund for Opportunity Rural America Fund Wireless Transport Opportunities Across All Programs 12 May 2020 AVIAT NETWORKS
Slide 13: Historical and Recent Financial Performance
Historical and Recent Financial Performance
Slide 14: Historical Performance
Historical Performance ($’s million) Total Revenue Non-GAAP Gross Margin $280 35% 31.4% 33.1% 32.5% $268.7 30% $270 24.9% $260 25% 20% $250 $241.9 $242.5 $243.9 15% $240 10% $230 5% $220 0% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 ($’s million) Non-GAAP Operating Expenses ($’s million) Adjusted EBITD
Slide 15: FY20 Q3 Non-GAAP Financial Year-Over-Year Comparison
Year-Over-Year Comparison Q3 FY20 Q3 FY19 Despite COVID-19 challenges, FY20 Q3 ($’s in millions) Actual Actual the Company anticipates bottom-line improvements in Non-GAAP Revenue $61.4 $54.0 FY20 vs. FY19 and with Financial Gross Margin % 35.9% 30.2% significant opportunities for both top- and bott
Slide 16: Balance Sheet Highlights
($’s in millions, Q3 FY20 Q2 FY20 Q1 FY20 Q4 FY19 except for DSO, Balance Sheet DPO and turns) Actual Actual Actual Actual Highlights Cash and Cash Equivalents $39.2 $38.1 $34.5 $31.9 Accounts $48.1 $44.4 $43.2 $51.9 Receivable DSO’s 71 72 67 74 Net Cash up $1.1 million sequentially and $7.3 million
Slide 17: Fiscal Year 2020 Outlook Remains Strong
Fiscal Year 2020 Outlook Remains Strong Revenue Stronger Bottom-Line Down Gross Improvements Modestly Margins Strong growth in North America offset by FY2020: Mix shift, efficiencies and International declines in Anticipating FY20 Adjusted higher-margin business Africa and APAC regions EBITDA of $11
Slide 18: What Makes Aviat an Attractive Investment Opportunity?
What Makes Aviat an Attractive Investment Opportunity? Compelling Market Opportunity 1 Favorable Industry Dynamics – Major market trends create significant opportunities for near- and long-term growth Credible & Established Leader 2 Global Customer Footprint, Strong Relationships, Proven Track Recor
Slide 19: Aviat Networks
Aviat NETWORKS DOGeO WWW.AVIATNETWORKS.COM