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Dec 27, 2019
Aviat Q2 2020 Earnings Report
Aviat Networks' financial results were negatively impacted by a cyberattack at a contract manufacturing vendor and international revenue decline, but North America revenue remained relatively stable.
Key Takeaways
Aviat Networks reported a decrease in total revenues for Q2 2020, primarily due to a cyberattack that constrained capacity and a decline in international revenue. North America revenue saw a slight decrease, while international revenue was significantly impacted by the spending environment in Africa and lower order volumes in the APAC region. The company reported a GAAP operating loss and a non-GAAP operating loss for the quarter.
Total revenues decreased by 14% compared to the same period last year, totaling $56.0 million.
North America revenue declined slightly by 2.3% to $36.5 million, but bookings increased.
International revenue decreased significantly by 29.7% to $19.5 million due to challenges in Africa and APAC.
The company reported a GAAP operating loss of $(1.5) million and a non-GAAP operating loss of $(0.7) million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Aviat Networks anticipates a modest decline in revenue for the full fiscal year, but expects stronger gross margins, an increase in profitability, and ongoing improvements in its cash position and balance sheet. They believe they are in position to deliver $11 million to $12 million of Adjusted EBITDA.
Positive Outlook
- Anticipates an increase in orders in the second half of the year based on conversations with customers and a strong start to the fiscal 2020 third quarter.
- New 5G-related business that has been awarded should favorably impact results towards the end of fiscal 2020 and in the years that follow.
- Expects stronger gross margins.
- Expects an increase in profitability.
- Anticipates ongoing improvements in cash position and balance sheet.
Challenges Ahead
- Anticipates a modest decline in revenue for the full fiscal year.
- Fiscal 2020 second quarter results were adversely impacted by a cyberattack.
- Revenue was impacted by the spending environment in Africa.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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