Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — 29th Annual ROTH Capital Conference (March 2017)
20 slides from Aviat Networks's conference presentation, March 2017
Slide 1: 29th Annual ROTH Capital Conference
29th Annual ROTH Capital Conference AVNW (NASDAQ) March 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: About Us
ABOUT US 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 Automation Highest Performance Profession
Slide 4: A Look Back: Transforming Our Business
A LOOK BACK: TRANSFORMING OUR BUSINESS • Since FY13, the industry has been impacted by a slowdown in wireless infrastructure investments; compounded in developing markets exposed to lower oil prices and currency devaluation versus the US dollar. • With reduced demand/lower volume, competition intens
Slide 5: FY17 Second Quarter Financial Highlights
FY17 SECOND QUARTER FINANCIAL HIGHLIGHTS (SEQUENTIAL COMPARISONS – Q2 FY17 VS. Q1 FY17 – NON-GAAP) Income Statement Summary (Non-GAAP) ($’s in millions) Q2 FY17 Q1 FY17 Sequential Actual Actual Variance Revenue of $68.5 million, up $10.3 million or 17.6%. Revenue $68.5 $58.2 $10.3 Gross Margin $21.5
Slide 6: FY17 Six Month Comparisons -- Financial Highlights
FY17 SIX MONTH COMPARISONS -- FINANCIAL HIGHLIGHTS (1H FY17 VS. 1H & 2H FY16 – NON-GAAP) Income Statement Summary (Non-GAAP) Sequential Comparisons Year-Over-Year Comparisons 1H FY17 2H FY16 1H FY17 1H FY16 ($’s in millions) Variance Variance Actual Actual Actual Actual Revenue $126.7 $118.7 $8.0 $1
Slide 7: Trending Quarter Financials
TRENDING 6 QUARTER FINANCIALS Sales and Growth Gross Profit ($ in millions) ($ in millions) $100.0 20% $25.0 $21.5 50% $79.6 18% $21.0 15% $80.0 $70.4 $68.5 $20.0 $17.4 40% 10% $16.5 $60.5 $58.3 $58.2 $14.5 $15.0 $60.0 5% $15.0 29.9% 31.3% 30% 0% 0% 26.4% 25.7% 23.4% 23.9% $40.0 -4% -5% $10.0 20% -1
Slide 8: FY17 Q2 Balance Sheet Key Indicators
FY17 Q2 BALANCE SHEET KEY INDICATORS ($’s in millions) Q2 FY17 Q1 FY17 Q4 FY16 Cash and • Cash increase driven by higher profitability and improved Equivalents $35.0 $31.8M $30.5M conversion cycles; also favorably impacted by higher NA mix. Accounts Receivable $56.2 $49.7M $63.4M • Positive cash fro
Slide 9: Trending Quarters - Balance Sheet Key Indicators
TRENDING 6 QUARTERS - BALANCE SHEET KEY INDICATORS Cashflow from Operations Days Sales Outstanding (DSO) ($ in millions) (in Days) $6.00 $4.60 $5.00 120 $3.80 99 99 99 $4.00 100 91 $1.80 78 $2.00 $0.70 75 80 $0.00 60 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 -$2.00 40 -$4.00 20 -$6.00 0 -$8.00 -$7.1
Slide 10: Compelling Market Demand Drivers
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 Demand Fiber Autom
Slide 11: Driving Our Optimism: Marquee Customer Base
DRIVING OUR OPTIMISM: MARQUE CUSTOMER BASE Leading Provider in Key Markets Served – Global Service Providers MTN Strong Global Brand with a Targeted Sales Approach (Focus on Profitability and Cash Generation) SLIDE 11 AVIAT NETWORKS
Slide 12: 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 Suppl
Slide 13: Growing Private Networks Customer Base
DRIVING OUR OPTIMISM: GROWING PRIVATE NETWORKS CUSTOMER BASE SLIDE 13 AVIAT NETWORKS
Slide 14: Aviat's Momentum Continues with Key Customer Wins
AVIAT’S MOMENTUM CONTINUES WITH KEY CUSTOMER WINS Aviat Selected By US Federal Agencies for Aviat Partners with Airtel Nigeria for Enterprise Digicel Selects Aviat Networks' Transmission Microwave Solutions Access Solution • Awarded two Indefinite Delivery / Indefinite Quantity (ID/IQ) contracts • S
Slide 15: Driving Our Optimism: Industry Leading Products
DRIVING OUR OPTIMISM: INDUSTRY LEADING PRODUCTS INDUSTRY’S LOWEST INDUSTRY’S FIRST LATENCY MWAVE INDUSTRY’S INTEGRATED MOST MICROWAVE ROUTER RELIABLE INDOOR HIGHEST POWER TRUNKING MWAVE RADIO EVER BUILT MOST SECURE, INDUSTRY’S HYBRID MISSION SMALLEST, CRITICAL PLATFORM NEW LIGHTEST INDUSTRY’S SPLIT
Slide 16: 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
Slide 17: Driving Our Optimism: 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 17 AVIAT NETWORKS
Slide 18: Looking Ahead - FY17 2H Financial Outlook
LOOKING AHEAD – FY17 2H FINANCIAL OUTLOOK Income Statement Summary (Non-GAAP) FY16 2nd Half FY17 1st Half FY17 2nd Half ($’s in millions) Actual Actual Estimates Revenue $118.7 $126.7 $130.0 - $140.0 Operating Income (Loss) ($12.4) $1.0 Positive Adjusted EBITDA ($9.2) $4.1 Positive Positioned for Gr
Slide 19: Key Takeaways
KEY TAKEAWAYS We are a different company – stronger foundation driven by operational excellence and improved performance. Top-line stabilizing with growth anticipated. Sustainable gross margin and operating expense improvements. Strong installed customer base with near- and long-term growth
Slide 20: Aviat Networks
Aviat NETWORKS WWW.AVIATNETWORKS.COM
Aviat Networks — 29th Annual ROTH Capital Conference (March 2017) on 6ix