Aviat Networks, Inc. · NASDAQ:AVNW
Aviat Networks — Q1 2024 Earnings Presentation
24 slides from Aviat Networks's earnings presentation, Dec 7, 2023
Slide 1: Aviat Networks Investor Presentation Fiscal Q1 2024
Aviat Networks Investor Presentation Fiscal Q1 2024 December 7, 2023
Slide 2: 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 our results for the fiscal
Slide 3: Company Overview
AVIAT NETWORKS Aviat Networks is the leading wireless transport and access solutions provider NASDAQ Listed: AVNW Headquartered in Austin, TX 3,000+ Customers Worldwide Global Manufacturing Capabilities Leading Technologies – 200+ Patents 3 Company Overview AviatCloudLTE Wireless Transport Access Ro
Slide 4: A Long History of Wireless Leadership
AVIAT NETWORKS4 A Long History of Wireless Leadership Invigorated by New Leadership and Consistent Execution Over 75 Years of Expertise 1944 Aviat Networks can trace its wireless beginnings back to Lenkurt Electric 2007 Harris Stratex Networks forms as the result of the merger between Harris MCD and
Slide 5: NEC Microwave Transaction Summary
AVIAT NETWORKS5 Transaction Significantly Increases Aviat’s Scale and Strengthens Position as the Leading Microwave Specialist Company NEC Microwave Transaction Summary Transaction Overview Financing • Aviat Networks acquired the microwave backhaul business NEC Corporation for $65.5 million, structu
Slide 6: Transaction Creates a Larger Company with Global Scale
AVIAT NETWORKS6 Transaction Creates a Larger Company with Global Scale, Increased Operating Leverage, and Stronger Innovation and Ability to Serve Combined Financial Profile Scale Revenue $353M ~$140M Margins Gross Margin 36% ~30% Profitability Adj. EBITDA 14% ~0% A global provider of wireless trans
Slide 7: Investment Opportunity
AVIAT NETWORKS Investment Opportunity 7 Global Investment in Mission Critical, 5G, and Rural Broadband Networks Underpin Strong and Growing Demand Environment $11 billion TAM serving private networks, mobile service providers, and rural broadband network operators around the world End-to-end portfol
Slide 8: Aviat's Competitive Advantage
AVIAT NETWORKS Aviat’s Competitive Advantage vs. Microwave Specialists vs. Wireless Generalists Products ✓ Modular radio platform ✓ End-to-end offering of radios, multi- band, routers, access ✓ Better RF performance • Highly leveraged in chipsets • Difficult to create new product variants quickly •
Slide 9: Wireless Transport and Access Markets Overview
AVIAT NETWORKS Wireless Transport and Access Markets Overview 9 Aviat Differentiation Aligned with Private Networks, 5G and Rural Broadband WIRELESS ACCESS Growth Markets STATE & LOCAL GOV’T UTILITY PUBLIC SAFETY 4G/5G MOBILE WIRELESS TRANSPORT Core Markets INDUSTRIAL LICENSED/ UNLICENSED PTP/PTMP I
Slide 10: Aviat Product Portfolio
AVIAT NETWORKS Aviat Product Portfolio 10 Health Assurance (HAS) Continuously analyzes the network Detailed reports on network issues Reduces downtime Frequency Assurance (FAS) Monitors and reports interference Protects against WiFi-6E Improves link performance/uptime ProVision Plus Simplifies netwo
Slide 11: How Aviat Lowers Total Cost of Ownership
AVIAT NETWORKS How Aviat Lowers Total Cost of Ownership 11 1. Reduced Tower Footprint What: Lower power consumption, faster installation, smaller antennas, reduced tower loading, lower lease costs How: Fewer boxes, high system gain, Multi-Band 2. Capacity Scalability What: Less congestion, fewer tru
Slide 12: Microwave is a Crucial Backhaul Technology
AVIAT NETWORKS Microwave is a Crucial Backhaul Technology 12 Microwave Fiber Speed to Deploy High Reliability Low Latency Terrain Flexibility Capacity Cost Per Link Per Foot Microwave / Millimeter Wave Fiber Satellite Copper Microwave Backhaul is Essential in Communication Networks Globall
Slide 13: Aviat's Market Opportunities
AVIAT NETWORKS • Upgrade cycle in public safety, utilities and other private networks driven by increase bandwidth needs • Private LTE / 5G market to be $8B by 2027 • Aviat’s end-to-end product and services allow for increasing share of wallet capture and competitive advantage Aviat’s Market Opportu
Slide 14: Enterprise Private Network Summary
AVIAT NETWORKS Public Safety and Security Oil & Gas Water Electric Utilities National / Regional Government Enterprise Private Network Summary 14 • Growth in Private LTE and Industrial IoT driven by video and modern applications • States and municipalities upgrading their public safety communication
Slide 15: Mobile Networks & 5G Market Summary
AVIAT NETWORKS Mobile Networks & 5G Market Summary 15 • Mobile service provider market driven by increasing 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 • Aviat’s product por
Slide 16: Rural Broadband Summary
AVIAT NETWORKS16 Large Investments in Broadband Infrastructure Creates Opportunities for Wireless Transport Rural Broadband Summary Over $70B in Available Funding Wireless Transport is the Solution Aviat E-Commerce Platform Leads Rural Broadband CAF II Rural Digital Opportunity Fund (RDOF) 5G Fund f
Slide 17: Aviat Operating Model
AVIAT NETWORKS17 Aviat Operating Model Supports Growth-Centric Culture by Leveraging Continuous Improvement and Driving Competitive Excellence Aviat Operating Model Framework Excellence in Customer Focus Innovation Talent Supply Chain O u r A c ti o n s We listen during the commercial and sales proc
Slide 18: First Quarter Fiscal 2024 Financial Highlights and Historical Performance
First Quarter Fiscal 2024 Financial Highlights and Historical Performance
Slide 19: First Quarter Fiscal 2024 Highlights
AVIAT NETWORKS $10.7 $12.1 13.2% 13.8% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% $8.0 $8.5 $9.0 $9.5 $10.0 $10.5 $11.0 $11.5 $12.0 $12.5 $13.0 Q1 FY2023 Q1 FY2024 $81.3 $87.6 36.5% 36.6% 34.0% 35.0% 36.0% 37.0% 38.0% 39.0% 40.0% $70.0 $72.0 $74.0 $76.0 $78.0 $80.0 $82.0 $84.0
Slide 20: First Quarter Fiscal 2024 Balance Sheet Highlights
AVIAT NETWORKS First Quarter Fiscal 2024 Balance Sheet Highlights 20 • Robust cash generation, driven by profitability and lower working capital • No debt • Inventory levels reduced as Aviat consumed buffer stock that helped to navigate supply chain issues over the past two years Strong Balance Shee
Slide 21: Rolling Trailing Twelve Months Historical Performance
AVIAT NETWORKS Rolling Trailing Twelve Months Historical Performance 21 -$11 -$9 -$12 -$13 -$5 $2 $8 $9 $9 $7 $10 $10 $10 $9 $9 $12 $8 $12 $14 $18 $19 $31 $33 $34 $34 $36 $38 $39 $42 $44 $47 $48 R o lli n g T T M A d j. E B IT D A $313 $298 $269 $247 $245 $244 $242 $240 $233 $236 $243 $247 $250 $242
Slide 22: Cash Benefit of Historical Net Operating Losses
AVIAT NETWORKS Cash Benefit of Historical Net Operating Losses (NOLs) 22 Cash Tax Savings Will Continue for the Foreseeable Future (>5 years) at Levels Commensurate with our Earnings Before Tax Performance • $490 million of gross NOLs • NOL’s reduce Aviat’s statutory federal and state blended tax ra
Slide 23: GAAP to Non-GAAP Reconciliation
AVIAT NETWORKS23 GAAP to Non-GAAP Reconciliation RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Condensed Consolidated Statements of Operations (Unaudited) % of % of % of % of Revenue Revenue Revenue Revenue GAAP gross margin $31,852 36.4% $29,454 36.3% GAAP net income (loss) $4,005 4.6% ($2,746
Slide 24: Aviat Networks
Aviat NETWORKS DOGeO WWW.AVIATNETWORKS.COM