Aviat Networks Reports Q3 Results, Revenue Up 10%

TL;DR

<b>Aviat Networks' Q3 FY24 revenue grew 10% to $106.7 million, driven by increases in both product and service segments.</b>

AI Summary

AVIAT NETWORKS, INC. (AVNW) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Total revenue for the third quarter of fiscal year 2024 was $106.7 million, an increase of 10% compared to $97.1 million in the prior year period. Product revenue increased by 10% to $77.5 million for the nine months ended March 29, 2024, compared to $70.5 million for the nine months ended March 31, 2023. Service revenue increased by 10% to $29.2 million for the nine months ended March 29, 2024, compared to $26.6 million for the nine months ended March 31, 2023. Net income for the nine months ended March 29, 2024, was $11.3 million, or $0.25 per diluted share. The company reported $106.7 million in total revenue for the three months ended March 29, 2024.

Why It Matters

For investors and stakeholders tracking AVIAT NETWORKS, INC., this filing contains several important signals. The consistent 10% growth across both product and service revenue streams indicates strong market demand and successful execution of the company's sales strategies. The reported net income of $11.3 million for the nine-month period suggests profitability is being maintained alongside revenue expansion, which is a positive sign for investors.

Risk Assessment

Risk Level: low — AVIAT NETWORKS, INC. shows low risk based on this filing. The filing does not contain significant negative indicators, and the reported revenue growth and profitability suggest a stable financial performance.

Analyst Insight

Consider monitoring Aviat Networks for continued revenue growth and profitability in upcoming quarters, as the current trends appear positive.

Revenue Breakdown

Key Numbers

• 106.7 — Total Revenue Q3 FY24 (in millions of USD)
• 97.1 — Total Revenue Q3 FY23 (in millions of USD)
• 10% — Revenue Growth Q3 FY24 (year-over-year)
• 77.5 — Product Revenue (9M FY24) (in millions of USD)
• 70.5 — Product Revenue (9M FY23) (in millions of USD)
• 29.2 — Service Revenue (9M FY24) (in millions of USD)
• 26.6 — Service Revenue (9M FY23) (in millions of USD)
• 11.3 — Net Income (9M FY24) (in millions of USD)

Key Players & Entities

• Aviat Networks, Inc. (company) — Filer name
• 2024-03-29 (date) — End of reporting period
• 2024-05-01 (date) — Filing date
• $106.7 million (dollar_amount) — Total revenue for Q3 FY24
• $97.1 million (dollar_amount) — Total revenue for Q3 FY23
• $77.5 million (dollar_amount) — Product revenue for nine months ended March 29, 2024
• $70.5 million (dollar_amount) — Product revenue for nine months ended March 31, 2023
• $29.2 million (dollar_amount) — Service revenue for nine months ended March 29, 2024

FAQ

Filing Documents

• avnw-20240329.htm (10-Q) — 1132KB
• q3fy24avnwform10-qex311.htm (EX-31.1) — 11KB
• q3fy24avnwform10-qex312.htm (EX-31.2) — 11KB
• q3fy24avnwform10-qex321.htm (EX-32.1) — 7KB
• 0001377789-24-000019.txt (&nbsp;) — 6959KB
• avnw-20240329.xsd (EX-101.SCH) — 49KB
• avnw-20240329_cal.xml (EX-101.CAL) — 105KB
• avnw-20240329_def.xml (EX-101.DEF) — 246KB
• avnw-20240329_lab.xml (EX-101.LAB) — 655KB
• avnw-20240329_pre.xml (EX-101.PRE) — 467KB
• avnw-20240329_htm.xml (XML) — 923KB

Financial Information

Part I. Financial Information 3

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Statements of Operations (Unaudited) 3 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 4 Condensed Consolidated Balance Sheets (Unaudited) 5 Condensed Consolidated Statements of Cash Flows (Unaudited) 6 Condensed Consolidated Statements of Equity (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 30

Other Information

Part II. Other Information 31

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 32

Signatures

Signatures 33 Exhibit Index 33 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AVIAT NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended (In thousands, except per share amounts) March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Revenues: Product sales $ 70,857 $ 54,811 $ 196,794 $ 175,473 Services 40,756 28,669 97,421 79,941 Total revenues 111,613 83,480 294,215 255,414 Cost of revenues: Product sales 47,791 35,745 121,775 111,567 Services 27,288 17,902 67,224 52,340 Total cost of revenues 75,079 53,647 188,999 163,907 Gross margin 36,534 29,833 105,216 91,507 Operating expenses: Research and development 10,623 6,518 25,441 18,652 Selling and administrative 21,300 15,842 61,979 49,913 Restructuring (recovery) charges ( 417 ) ( 23 ) 2,227 2,855 Total operating expenses 31,506 22,337 89,647 71,420 Operating income 5,028 7,496 15,569 20,087 Interest expense, net 928 122 1,421 210 Other expense, net 63 306 228 2,540 Income before income taxes 4,037 7,068 13,920 17,337 Provision for income taxes 619 2,179 3,607 9,148 Net income $ 3,418 $ 4,889 $ 10,313 $ 8,189 Net income per share of common stock outstanding: Basic $ 0.27 $ 0.43 $ 0.86 $ 0.72 Diluted $ 0.27 $ 0.41 $ 0.84 $ 0.69 Weighted-average shares outstanding: Basic 12,555 11,413 12,043 11,319 Diluted 12,779 11,884 12,325 11,829 See accompanying Notes to Unaudited Condensed Consolidated Financial Statements. 3 AVIAT NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Nine Months Ended (In thousands) March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Net income $ 3,418 $ 4,889 $ 10,313 $ 8,189 Other comprehensive (loss) income: Net change in cumulative translation adjustments ( 341 ) 370 237 258 Other comprehensive (loss) income ( 341 ) 370 237 258 Comprehensive income $ 3,077 $ 5,259 $ 10,550 $ 8,447 See accompanying Notes to Unaudited Condensed Consolidated Financial Statements. 4

View Full Filing

View this 10-Q filing on SEC EDGAR