Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q2 2024 Earnings Presentation
25 slides from Aviat Networks's earnings presentation, Feb 6, 2024
Slide 1: Aviat Networks Investor Presentation Fiscal Q2 2024
Aviat Networks Investor Presentation Fiscal Q2 2024 February 6, 2024
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: Company Overview
Company Overview Aviat Networks is the leading wireless Revenue Summary transport and access solutions provider End-to-End Portfolio LTM Revenue: $357 Million LATAM & Revenue by Region Revenue by Market APAC AviatCloud Mobile 20% LTE Networks 32% Europe Wireless 6% Access Routers Software Services N
Slide 4: Over 75 Years of Expertise
Over 75 Years of Expertise 1944 2010 2022 Aviat Networks can trace Harris Stratex rebrands as Aviat Networks completes the its wireless beginnings Aviat Networks acquisition of Redline back to Lenkurt Electric Communications, adding access solutions to its portfolio 2007 2020 Microwave 2023 Harris S
Slide 5: Pasolink (NEC Microwave) Transaction Summary
Pasolink (NEC Microwave) Transaction Summary • Aviat Networks acquired the microwave backhaul business of NEC Corporation, Transaction known as Pasolink, for $65.5 million, structured as an asset purchase Overview • Transaction closed in second quarter fiscal 2024 • $23.4 million of Aviat shares pri
Slide 6: Combined Financial Profile
Combined Financial Profile Pasolink Formerly NEC’s Microwave Division Pasolink A global provider of wireless transport A leader in wireless backhaul The leading global wireless transport products and services for 5G, rural networks with extensive global specialist broadband, and private networks ins
Slide 7: Investment Opportunity
Investment Opportunity Attractive Global $11 billion TAM serving private networks, mobile service providers, and rural Markets broadband network operators around the world Unique Product End-to-end portfolio including mission-critical access products and Offering routers, best-in-class microwave rad
Slide 8: Why Aviat Wins
Why Aviat Wins Aviat’s vs. vs. Competitive Advantage Microwave Specialists Wireless Generalists • Highly leveraged in chipsets ✓ Modular radio platform • Microwave not focus • Difficult to create new product ✓ End-to-end offering of radios, multi- • Less responsive and agile to Products band, router
Slide 9: Wireless Transport and Access Markets Overview
Wireless Transport and Access Markets Overview WIRELESS TRANSPORT INDUSTRIAL WIRELESS ACCESS STATE & Core Markets LOCAL Growth Markets GOV’T INDUSTRIAL LICENSED/ Aviat UNLICENSED Differentiation UTILITY PTP/PTMP WISP Best in Class Wireless Transport PUBLIC Products SAFETY INDUSTRIAL Unique Software
Slide 10: Aviat Product Portfolio
Aviat Product Portfolio Health Assurance (HAS) ProVision Plus Frequency Assurance (FAS) Continuously analyzes the network Simplifies network management Monitors and reports interference Detailed reports on network issues Easy trouble shooting with multi-layer visualization Protects against WiFi-6E R
Slide 11: How Aviat Lowers Total Cost of Ownership
How Aviat Lowers Total Cost of Ownership 4. Spectrum Fee Savings What: Reduced recurring spectrum fees How: Moving capacity from Microwave to E-Band and 1. Reduced Tower Footprint Multi-Band What: Lower power consumption, faster installation, smaller antennas, reduced tower loading, lower lease cost
Slide 12: Microwave is a Crucial Backhaul Technology
Microwave is a Crucial Backhaul Technology Wireless transport accounts for 60% Microwave Fiber of cellular transport links Speed to Deploy P Satellite Copper High Reliability P Low Latency P Microwave / Fiber Millimeter Terrain Flexibility P Wave Capacity P Source: Dell ‘Oro; Excludes North East Asi
Slide 13: Aviat's Market Opportunities
Aviat’s Market Opportunities Private Networks Mobile Networks & 5G Rural Broadband • Upgrade cycle in public safety, • Early stages of global 5G • Over $70 billion in U.S. utilities and other private upgrade cycle; mobile network government funding programs networks driven by increase data traffic e
Slide 14: Private Network Summary
Private Network Summary Growth Drivers Segments Addressed Aviat’s Leadership • Growth in Private LTE and Public Safety and Security • Mission critical product Industrial IoT driven by video and differentiation modern applications – Highest powered radios • States and municipalities – Ruggedized acce
Slide 15: Mobile Networks & 5G Market Summary
Mobile Networks & 5G Market Summary • Mobile service provider market driven by increasing Global 5G Wireless Transport Market bandwidth demand in 4G and 5G networks – Data from global networks is anticipated to grow rapidly (26% CAGR) through 2028, driven by 5G adoption and expanding 4G networks $1.
Slide 16: Rural Broadband Summary
Rural Broadband Summary Aviat E-Commerce Platform Wireless Transport is Over $70B in Leads Rural Broadband the Solution Available Funding Aviat is uniquely suited to serve WISPs Wireless transport is ideal for rural $1.5 Billion CAF II through its Aviat Store and AviatCloud communities and is lower
Slide 17: 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 18: Second Quarter Fiscal 2024 Financial Highlights and Historical Performance
Second Quarter Fiscal 2024 Financial Highlights and Historical Performance
Slide 19: Aviat Networks Fiscal 2024 Guidance
Aviat Networks Fiscal 2024 Guidance $ in millions Low-End High-End Updated Fiscal Year 2024 Revenue $425.0 $432.0 Guidance Adjusted EBITDA $51.0 $56.0 • Gross Margin – Anticipate pro forma gross margin to be in the 34-37% range for the remainder of fiscal 2024 Pasolink • Research and Development Cos
Slide 20: Second Quarter Fiscal 2024 Highlights
Second Quarter Fiscal 2024 Highlights $ in millions 41.0% $96.0 $95.0 40.0% • Revenue of $95.0 million, up 4.8% compared to Revenue $94.0 $92.0 $90.7 39.0% the same period last year & $90.0 38.8% • Non-GAAP gross margin improvement of 310 38.0% $88.0 Non-GAAP $86.0 37.0% basis points to 38.8% from 3
Slide 21: Second Quarter Fiscal 2024 Balance Sheet Highlights
Second Quarter Fiscal 2024 Balance Sheet Highlights Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 ($’s in millions, except for DSO, DPO and Turns) Actual Actual Actual Actual Actual Actual Actual Actual • Net debt position of $3.6 million Cash Equivalents and $33.8 $47.8 $22.9 $21.
Slide 22: Rolling Trailing Twelve Months Historical Performance
Rolling Trailing Twelve Months Historical Performance ($’s million) Rolling TTM Revenue $353 $357 $347 $333 $324 $311 $297 $303 $289 $282 $275 $266 $243 $246 $251 Avg $242 $240 $239 $233 ($’s million) Rolling TTM Adj. EBITDA $48 $49 $47 $42 $44 $38 $39 $36 $33 $34 $34 $31 $19 $18 $12 $14 $12 $5 $8 A
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 $98 $95 $92 Intl., $186 $90 $89 $87 $86 $86 US, $304 • $490 million of gross NOLs • Improved financial performance and outlook for Aviat • NOL’s reduce Aviat’s statutory federal and state r
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended S ix Months Ended Three Months Ended S ix Months Ended % of % of % of % of % of % of % of % of 29-Dec-23 30-Dec-22 29-Dec-23 30-Dec-22 29-
Slide 25: Aviat Networks
Aviat NETWORKS ink Xf eke WWW.AVIATNETWORKS.COM