Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — 21st Annual Needham Growth Conference (January 2019)
17 slides from Aviat Networks's conference presentation, Jan 18, 2019
Slide 1: 21st Annual Needham Growth Conference Investor Presentation
21st Annual Needham Growth Conference Investor Presentation (NASDAQ: AVNW) January 16, 2019
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: What Makes Us an Attractive Long-Term Investment?
WHAT MAKES US AN ATTRACTIVE LONG-TERM INVESTMENT? Market Position: Leading provider and specialist in wireless backhaul and networking utilizing cutting-edge microwave transmission with growing professional services Competitive Trend: Capturing an increasing share of market within North America Priv
Slide 4: Technology & Services Leadership Uniquely Positioned Specialist
Technology & Services Leadership Uniquely Positioned Specialist
Slide 5: Technology Focus
TECHNOLOGY FOCUS 1 2 INCREASED 5G+ IP/MPLS TO CAPACITY THE EDGE 3 5G AUTOMATION 4G AND SDN EVOLVING INTELLIGENT WIRELESS CONNECTIVITY SLIDE 5 AVIAT NETWORKS
Slide 6: Industry Leading Products
INDUSTRY LEADING PRODUCTS MOST SECURE, HYBRID SPLIT-MOUNT INDUSTRY’S NETWORK OUTDOOR RADIO UNIT MANAGEMENT MISSION-CRITICAL PLATFORM HIGHEST CAPACITY MICROWAVE UPGRADED (Capacity) UPGRADED (Capacity) ECLIPSE ODU 600 PROVISION MICROWAVE ROUTERS HIGHEST POWER MICROWAVE RADIO ALL NEW PLATFORM WTM 4000
Slide 7: Unique Ability to Address Multiple Vertical Markets
UNIQUE ABILITY TO ADDRESS MULTIPLE VERTICAL MARKETS Multi-Gigabit SDN-Based Management Microwave for 5G Solutions for Network- Ready Mobile Wide Operations Backhaul Simplification Zero Footprint, Integrated Microwave Routing Solutions for Enterprise Access SDN-Based, Microwave Routing Solutions for
Slide 8: Increasing Automation to Enhance Services Capabilities
INCREASING AUTOMATION TO ENHANCE SERVICES CAPABILITIES Aviat Cloud Automation AVIATDEPLOY Design, Purchasing & licensing AVIATDESIGN TURNKEY SERVICE Installation, Operation, Optimization & Support AVIATCARE Increasing Recurring Revenue & Addressable Market Opportunity SLIDE 8 AVIAT NETWORKS
Slide 9: Diverse, Stable Business with Growth Potential
DIVERSE, STABLE BUSINESS WITH GROWTH POTENTIAL VERTICALS DIVERSITY GEOGRAPHICAL DIVERSITY Mobile Private 44% 56% Americas EMEA Asia Pacific 57% 32% 11% Positive Momentum in mobile and private networks Presence in all geographies, strongest in high margin regions SOLUTIONS DIVERSITY CUSTOMER DIVERSIT
Slide 10: Gaining Momentum and Market Share Across Private Network Verticals
GAINING MOMENTUM AND MARKET SHARE ACROSS PRIVATE NETWORK VERTICALS Aviat Awarded Microwave Aviat Awarded Nearly $40M Aviat Networks Wins ~$20 Aviat Networks Selected by and IP/MPLS Business by in Business with the State Million in U.S. Utility Motorola Solutions for the the State of Nevada of Colora
Slide 11: Financial Review Company Outlook
Financial Review Company Outlook
Slide 12: Fiscal 2019 Q1 Non-GAAP Financial Highlights
FISCAL 2019 Q1 NON-GAAP FINANCIAL HIGHLIGHTS Income Statement Summary (Non-GAAP) Key Take-Aways Q1 FY19 Q1 FY18 (In Millions $) Variance ➢ Fourth consecutive quarter of $60 million-plus in revenue Actual Actual Revenue $60.5 $56.2 Up 7.7% ➢ Revenue increased YOY driven by a 30% improvement in intern
Slide 13: Fiscal 2019 Q1 Balance Sheet Key Indicators
FISCAL 2019 Q1 BALANCE SHEET KEY INDICATORS ($’s in millions) Q1 FY19 Q4 FY18 Q1 FY18 Key Take-Aways Cash/Cash Equivalents (and $28.4 $37.4 $39.6 ➢ Cash down in Q1 FY19 due to timing of collections in Africa/ME and restricted cash) higher working capital requirements for larger projects Accounts Rec
Slide 14: Q2 Fiscal 2019 Guidance
Q2 FISCAL 2019 GUIDANCE Income Statement Summary (Non-GAAP) Q1 FY19 Q2 FY19 Outlook Commentary ($’s in millions) Actual Results Revenue $60.5 $61.0 - $65.0 Sequential growth of 4% at midpoint Gross Margin (%) 29.6% Mid 30s Improved mix of North America revenues Operating Expenses $18.3 ~$19M Increas
Slide 15: Fiscal Year 2019 Guidance and Key Drivers
FISCAL YEAR 2019 GUIDANCE AND KEY DRIVERS Income Statement Summary (Non-GAAP) KEY DRIVERS FOR FY 2019: FY19 Outlook Commentary ($’s in millions) ➢ Opportunities across all private network verticals Revenue $250.0 - $260.0 Anticipate YOY growth of ~4.0% - 7.0% globally ➢ Increasing share with service
Slide 16: Key Take-Aways
KEY TAKE-AWAYS • Competitive position continues to strengthen; multiple opportunities for long-term growth • Increasing investment in growth related activities; continue to optimize other areas • Expecting stronger second quarter with significant bottom-line improvements; maintaining positive full y
Slide 17: Follow Aviat Networks
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