Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q1 FY2018 Earnings Presentation
20 slides from Aviat Networks's earnings presentation, November 2017
Slide 1: Fiscal 2018 First Quarter Investor Presentation
Fiscal 2018 First Quarter Investor Presentation AVNW (NASDAQ) November 2017
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: FY18 First Quarter Executive Commentary
FY18 FIRST QUARTER EXECUTIVE COMMENTARY ($’s in millions) “While revenue was slightly below our prior expectations, we exceeded our gross margin targets and our operating expenses were lower than anticipated. Adjusted EBIDTA of $0.9 million came in at the higher end of our guidance and also represen
Slide 4: FY18 First Quarter Financial Highlights
FY18 FIRST QUARTER FINANCIAL HIGHLIGHTS (NON-GAAP COMPARISONS) Income Statement Summary (Non-GAAP) Q1 FY18 ($’s in millions) Q1 FY17 Variance Key Take-Aways – Q1 Performance Actual Actual • Revenue of $56.2 million, a decrease of $2.0 million or 3.5% Revenue $56.2 $58.2 ($2.0) • YOY decline primaril
Slide 5: FY18 Q1 Balance Sheet Key Indicators
FY18 Q1 BALANCE SHEET KEY INDICATORS (BALANCE SHEET STRENGTHENED – CASH POSITION INCREASED YEAR-OVER-YEAR) ($’s in millions) Q1 FY18 Q4 FY17 Q1 FY17 Key Take-Aways – Q1 Performance Cash and Cash • Cash, cash equivalents and restricted cash position increased $3.4 million Equivalents (and $39.6 $36.2
Slide 6: Trending Quarter Financials
TRENDING 6 QUARTER FINANCIALS Sales Gross Profit ($ in millions) ($ in millions) Operating Expenses Adjusted EBITDA ($ in millions) ($ in millions) _________________ Note: Aviat has a June 30th fiscal year end. SLIDE 6 AVIAT NETWORKS
Slide 7: Trending Quarter Balance Sheet Key Indicators
TRENDING 6 QTR BALANCE SHEET KEY INDICATORS Cashflow from Operations Days Sales Outstanding (DSO) ($ in millions) (in Days) Inventory Turns Cash Conversion Cycle* (CCC) (in Days) *Includes unbilled receivables SLIDE 7 AVIAT NETWORKS
Slide 8: 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 9: 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 10: Driving Our Optimism: Marquee Customers
DRIVING OUR OPTIMISM: MARQUEE CUSTOMERS Leading Provider in Key Markets Served – Global Service Providers Opportunity to leverage significant installed base SLIDE 10 AVIAT NETWORKS
Slide 11: Specialization and Reach to Drive Growth Within 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 12: Growing Private Networks Customer Base
DRIVING OUR OPTIMISM: GROWING PRIVATE NETWORKS CUSTOMER BASE SLIDE 12 AVIAT NETWORKS
Slide 13: Driving Our Optimism: Industry Leading Products
DRIVING OUR OPTIMISM: INDUSTRY LEADING PRODUCTS MOST SECURE, HYBRID SPLIT-MOUNT NETWORK MISSION CRITICAL PLATFORM OUTDOOR RADIO UNIT MANAGEMENT INDUSTRY’S HIGHEST CAPACITY MICROWAVE UPGRADED (RAC70) UPGRADED (Latency) ECLIPSE ODU 600 PROVISION MICROWAVE ROUTERS HIGHEST POWER MICROWAVE RADIO ALL NEW
Slide 14: Driving Our Optimism: Innovation Aviat WTM 4000
DRIVING OUR OPTIMISM: 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 c
Slide 15: Industry-Leading Services Capabilities
DRIVING OUR OPTIMISM: 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 15 AVIAT NETWORKS
Slide 16: Well Positioned to Grow Share and Drive Profitability
WELL POSITIONED TO GROW SHARE AND DRIVE PROFITABILITY 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 Plann
Slide 17: Significant Year-Over-Year Improvements in FY17
SIGNIFICANT YEAR-OVER-YEAR IMPROVEMENTS IN FY17 Income Statement Summary (Non-GAAP) KEY TAKE-AWAY’S: FY17 FY16 ($’s in millions) Variance • Goal was to be profitable in FY17 Actual Actual • $20 million improvement in non-GAAP net income Revenue $241.9 $268.7 ($26.8) • Revenue Gross Margin $75.9 $66.
Slide 18: Continued Momentum in FY18 Financial Outlook -- Updated
CONTINUED MOMENTUM IN FY18 FINANCIAL OUTLOOK -- UPDATED Income Statement Summary (Non-GAAP) Income Statement Summary (Non-GAAP) FY17 FY18 FY18 Q1 Results FY18 Q2 Sequential ($’s in millions) Full-Year ($’s in millions) Results (Outlook) Comparisons Actual Outlook (Actual) Up $3.8M - $6.8M Revenue $2
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: Aviat Networks
Aviat NETWORKS WWW.AVIATNETWORKS.COM