Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q2 FY2018 Earnings Presentation
20 slides from Aviat Networks's earnings presentation, February 2018
Slide 1: Fiscal 2018 Second Quarter Investor Presentation
Fiscal 2018 Second Quarter Investor Presentation AVNW (NASDAQ) February 2018
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: An Introduction to Our Company
AVIAT NETWORKS: AN INTRODUCTION TO OUR COMPANY 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 Aut
Slide 4: FY18 Second Quarter Executive Commentary
FY18 SECOND QUARTER EXECUTIVE COMMENTARY ($’s in millions) “I’m very pleased with our results this quarter, as we exceeded our gross margin, adjusted EBITDA and cash generation targets. Our success was primarily driven by continued strength in our private networks business and in North America, whic
Slide 5: FY18 Second Quarter Non-GAAP Financial Highlights
FY18 SECOND QUARTER NON-GAAP FINANCIAL HIGHLIGHTS (COMPARES FISCAL 2018 SECOND QUARTER VS. FISCAL 2018 FIRST QUARTER) Income Statement Summary (Non-GAAP) Key Take-Aways Q2 FY18 Q1 FY18 ($’s in millions) Variance • Revenue increased ~10% sequentially, primarily due to higher North Actual Actual Ameri
Slide 6: Fiscal 2018 – 1st Half of the Year Performance
FISCAL 2018 – 1ST HALF OF THE YEAR PERFORMANCE (COMPARES FIRST HALF OF THE YEAR RESULTS FOR FISCAL 2018 VS. FISCAL 2017 Income Statement Summary (Non-GAAP) 1H FY18 1H FY17 ($’s in millions) Variance Actual Actual Revenue $117.9 $126.7 ($8.8) Gross Margin $39.1 $38.9 $0.2 Gross Margin % 33.2% 30.7% 2
Slide 7: FY18 Q2 Balance Sheet Key Indicators
FY18 Q2 BALANCE SHEET KEY INDICATORS (BALANCE SHEET STRENGTHENED – CASH POSITION INCREASED YEAR-OVER-YEAR) ($’s in millions) Q2 FY18 Q1 FY18 Q4 FY17 Key Take-Aways Cash and Cash • Cash, cash equivalents and restricted cash position increased $2.5 Equivalents (and $42.1 $39.6 $36.2 million sequential
Slide 8: Trending 6 Quarter Financials
TRENDING 6 QUARTER FINANCIALS Sales Gross Profit ($ in millions) ($ in millions) Operating Expenses Adjusted EBITDA ($ in millions) ($ in millions) _________________ Note: Aviat has a June 30th fiscal year end. SLIDE 8 AVIAT NETWORKS
Slide 9: Trending Quarter Balance Sheet Key Indicators
TRENDING 6 QTR BALANCE SHEET KEY INDICATORS Cash Flow from Operations Days Sales Outstanding (DSO) ($ in millions) (in Days) Total Cash Total Cash = $31.8M = $42.1M Inventory Turns Cash Conversion Cycle* (CCC) (in Days) *Includes unbilled receivables SLIDE 9 AVIAT NETWORKS
Slide 10: Looking Ahead to the Future
Looking Ahead to the Future Key Trends/Factors Driving our Optimism Market Dynamics Customer Momentum Product Innovation Process Excellence Competitive Positioning
Slide 11: Looking Ahead: Compelling Market Demand Drivers
LOOKING AHEAD: 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 Dem
Slide 12: Driving Our Optimism: Specialization and Reach in 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 13: Driving Our Optimism: Growing Private Networks Customer Base
DRIVING OUR OPTIMISM: GROWING PRIVATE NETWORKS CUSTOMER BASE SLIDE 13 AVIAT NETWORKS
Slide 14: Marquee Service Provider Customers
MARQUEE SERVICE PROVIDER CUSTOMERS Leading Provider in Key Markets Served Opportunity to leverage significant installed base Maintaining customer base, adding new accounts and well-positioned for 5G adoption SLIDE 14 AVIAT NETWORKS
Slide 15: Industry Leading Products
INDUSTRY LEADING PRODUCTS MOST SECURE, HYBRID SPLIT-MOUNT INDUSTRY’S NETWORK MISSION-CRITICAL PLATFORM OUTDOOR RADIO UNIT MANAGEMENT HIGHEST CAPACITY MICROWAVE UPGRADED (Capacity) UPGRADED (Latency) ECLIPSE ODU 600 PROVISION MICROWAVE ROUTERS HIGHEST POWER MICROWAVE RADIO ALL NEW PLATFORM WTM 4000 S
Slide 16: WTM 4000: Example of Innovation
WTM 4000: EXAMPLE OF 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 cu
Slide 17: Industry-Leading Services Capabilities
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 17 AVIAT NETWORKS
Slide 18: Fiscal Year 2018 Outlook
FISCAL YEAR 2018 OUTLOOK Income Statement Summary (Non-GAAP) Income Statement Summary (Non-GAAP) FY17 Q3 FY18 Q3 FY17 FY18 ($’s in millions) ($’s in millions) ($’s in millions) Actual Outlook Actual Outlook Revenue $58.7 $62.0 - $65.0 Revenue $241.9 $245.0 - $255.0 Gross Margin (as a %) 30.2% 30.0 -
Slide 19: Key Take-Aways
KEY TAKE-AWAYS 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 wi
Slide 20: www.aviatnetworks.com
Aviat NETWORKS WWW.AVIATNETWORKS.COM