Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q2 2023 Earnings Presentation
24 slides from Aviat Networks's earnings presentation, Feb 1, 2023
Slide 1: Aviat Networks (NASDAQ: AVNW) Fiscal Q2 2023
Aviat Networks (NASDAQ: AVNW) Fiscal Q2 2023
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: Aviat Networks Company Profile
Aviat Networks Company Profile OVERVIEW REVENUE SUMMARY • Aviat Networks is a leading pureplay wireless microwave transport Revenue by region Revenue by market Revenue by product/service equipment, software and services provider • US Headquarters (Austin, TX) APAC Europe 14% • Global Customer Base (
Slide 4: Business Financial Summary
Business Financial Summary KEY STATISTICS KEY FINANCIAL METRICS LTM Trading Symbol AVNW Revenue $323.9M Shares Outstanding ~11.3 million Adjusted EBITDA* $42.2M Stock Price $32.35 Market Cap ~$366 million* Cash & Mkt Securities $21.4M Headquarters Austin, Texas # of Employees ~700 Debt $0.0M 52 Week
Slide 5: Aviat: Wireless Transport and Access Solutions Pureplay
Aviat: Wireless Transport and Access Solutions Pureplay WIRELESS ACCESS WIRELESS TRANSPORT Growth Markets Core Markets INDUSTRIAL $8B INDUSTRIAL LICENSED/ UNLICENSED TAM Aviat PV+ STATE UTILITY Differentiation PTP/PMP LOCAL $150M WISP Best in TAM* Class Wireless Transport Products PUBLIC SAFETY INDU
Slide 6: Recent Wins
Recent Wins 5G Networks Private Networks Bharti Airtel Dish Network Safaricom Globe Virginia State Police High capacity 5G High capacity 5G 5G transport Extension of contract » 2024 Complete network wireless transport wireless transport Rural Broadband Nextlink Internet High-speed wireless backhaul
Slide 7: Aviat's Investment Thesis
Aviat’s Investment Thesis Tremendous Market • 5G, critical communications, rural broadband, emerging economies underpin demand Opportunity • 6% share in a $3B market, significant opportunity for growth Well Positioned to Capture • Strong incumbency to grow with installed base • Compelling value prop
Slide 8: Rural Broadband Opportunity
Rural Broadband Opportunity “There are up to 42 million Americans for whom this essential network is not available, and millions more for whom it is available but unaffordable.” Brookings Institute $73B+ in Wireless Transport is the Aviat is #1 in USA Rural Available Funding Solution Broadband Trans
Slide 9: Aviat's Large and Growing 5G Opportunity
Aviat’s Large and Growing 5G Opportunity Wireless transport accounts for 60% of global Modest growth in overall wireless transport with significant cellular transport links from 2021 through 2027 5G market growth rates (41% CAGR) Transport Technologies 5G Wireless Transport Market Forecast ($M) 100%
Slide 10: Well Positioned in Growing 5G and Rural Broadband Markets
Well Positioned in Growing 5G and Rural Broadband Markets • Best in Class Wireless Transport Products • Industry’s highest capacity, highest power radios on the market for lowest TCO • First to integrate microwave and IP/MPLS routing • Unique multi-band solution for 5G AviatCloud • Unique Software (
Slide 11: Aviat: The Leader in Private Networks Wireless Transport
Aviat: The Leader in Private Networks Wireless Transport Why we win Growth Drivers Segments We Address Aviat Leadership ARPA Funding Gas Mission Critical Product Differentiation ($350B for US States’ water, sewer and Water - Highest Power Radios broadband infrastructure). States upgrading Electric U
Slide 12: MaxLinear and Aviat Collaborate on New Chip
MaxLinear and Aviat Collaborate on New Chip • Aviat has partnered with MaxLinear on a new SoC (system on chip) • Based on latest generation of technology, this will be the most capable modem chip ever created • Secures technology leadership Aviat Enjoys Technology Leadership with Current Portfolio o
Slide 13: Multi-Band: The Ideal Solution for 5G Transport
Multi-Band: The Ideal Solution for 5G Transport Gbps More Capacity Longer Distance Lower Spectrum Costs $100K 10 MULTI-BAND XD $70,000 EXTENDED DISTANCE 5 SAVINGS $50K Software scalable 2.5 No new hardware MULTI- BAND $25K No site visits 1 Time Distance, Km $10K Year 1 Year 2 Year 3 Year 5 1 5 10 15
Slide 14: Upgrade Any Vendor's Microwave Network with Aviat's Vendor Agnostic Multi-Band
Upgrade Any Vendor’s Microwave Network with Aviat’s Vendor Agnostic Multi-Band (MB-VA) EXISTING ADD Aviat’s 3rd Party Microwave Radio E-Band or Multi-Band Radio Unable to Support 5G Capacity Supports 5G Capacity (10Gbps) (<1Gbps) Leverage Existing Installed Base Investment Estimated 70% of the Large
Slide 15: Aviat – A Highly Differentiated Offering
Aviat – A Highly Differentiated Offering Innovations in Products, Software & Services, & Supply Chain WIRELESS TRANSPORT SOFTWARE & SERVICES SUPPLY CHAIN & PRODUCTS Ex: HEALTH ASSURANCE SOFTWARE DELIVERY Ex: MULTI-BAND (HAS) Ex: AVIAT STORE Unique Attribute Industry’s only single box Comprehensive H
Slide 16: Innovative SaaS Cloud-Based Platform
Innovative SaaS Cloud-Based Platform AVIATCLOUD Secure Hosted Software and Services (www.aviatcloud.com) AVIAT AVIAT AVIAT AVIAT AVIAT AVIAT MANAGED EDUCATE* DESIGN STORE* MY ORDERS CARE* SERVICES* SW Licensing, TAC, Network monitoring Online & in-person repair/return, Managed services Cloud-based p
Slide 17: Competitive Positioning: Why We Will Win Versus…
Competitive Positioning: Why We Will Win Versus… Specialists » Aviat Advantage Competitor Implication Highly leveraged in chipsets, products designed for cost Modular radio platform. Full portfolio of radios and – difficult to create new product variants quickly, and Products routers. Better RF perf
Slide 18: Aviat Operating Model Framework
Aviat Operating Model Framework Excellence in Customer Focus Innovation Talent Supply Chain Our Actions We listen during the commercial We deliver innovative, high-quality We drive a performance culture and We achieve a competitive and sales process to understand our solutions that meet key customer
Slide 19: Second Fiscal Quarter 2023 Financial Highlights and Historical Performance
Second Fiscal Quarter 2023 Financial Highlights and Historical Performance
Slide 20: Second Fiscal Quarter 2023 Non-GAAP Year-Over-Year Comparison
Year-Over-Year Comparison ($’s in millions) Q2 FY22 Q2 FY23 • Q2 Fiscal 2023 Revenue of $90.7 Second Fiscal Actual Actual Million, Up 16.5%Year-Over-Year. Revenue $77.9 $90.7 Quarter 2023 Gross Margin % 36.3% 35.7% • Q2 Fiscal 2023 Adjusted EBITDA of $12.9 Million, up $2.8M Year- Non-GAAP Operating
Slide 21: Balance Sheet Highlights
($’s in millions, Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 except for DSO, FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 Balance Sheet DPO and Turns) Actual Actual Actual Actual Actual Actual Actual Actual Actual Highlights Cash Equivalents and Marketable $43.0 $45.8 $47.9 $47.3 $42.3 $33.8 $47.8 $22.9 $21.4 Secur
Slide 22: Rolling TTM Historical Performance
Rolling TTM Historical Performance ($’s million) $336 $333 $324 Rolling TTM Revenue $313 $311 $303 $298 $297 $289 $282 $275 $269 $266 $247 $247 $250 $246 $251 $245 $244 $242 $243 $242 $244 $242 $240 $236 $240 $239 $233 $233 ($’s million) Rolling TTM Adj. EBITDA $42 $38 $39 $36 $33 $34 $34 $31 $19 $1
Slide 23: Cash Benefit of Historical Net Operating Losses (NOLs)
Cash Benefit of Historical Net Operating Losses (NOLs) Total NOLs (M) Deferred Tax Asset on AVNW Balance Sheet $103 $103 $102 $100 $98 $95 $92 $90 Intl., $180 $12 US, $330 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 • Over $500 million of historical NOLs (net of FIN48) •
Slide 24: Aviat Networks
Aviat NETWORKS DOGOeO WWW.AVIATNETWORKS.COM