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Apr 03, 2020
Aviat Q3 2020 Earnings Report
Aviat Networks' financial performance improved in Q3 2020, marked by revenue growth and increased gross margins.
Key Takeaways
Aviat Networks reported a 13.6% increase in revenue for Q3 2020, with North America revenue up by 30%. Gross margins increased by 570 basis points, and Adjusted EBITDA improved by $4 million compared to Q3 2019. The company reaffirmed its prior guidance and remains on track to deliver $11 - $12 million of Adjusted EBITDA in FY20.
Total revenue increased by 13.6% year-over-year to $61.4 million.
North America revenue grew by 30% to $37.3 million.
GAAP gross margin increased to 35.8% from 30.1% in the prior year.
GAAP operating income was $1.2 million, a $3.7 million improvement year-over-year.
Revenue by Geographic Location
Forward Guidance
Aviat Networks reaffirms prior guidance and remains on track to deliver $11 - $12 million of Adjusted EBITDA in FY20.
Positive Outlook
- Remain on track to meet guidance
- Deliver between $11 and $12 million of Adjusted EBITDA this fiscal year
- Eyes set on both top- and bottom-line growth next fiscal year
- Changes underway now and more to come that should open up new revenue streams
- Drive profitability which in turn, should lead to increased shareholder value
Challenges Ahead
- Impact of COVID-19 on Aviat’s business, operations and cash flows
- Continued price and margin erosion as a result of increased competition in the microwave transmission industry
- The impact of the volume, timing and customer, product and geographic mix of our product orders
- Aviat’s ability to meet financial covenant requirements which could impact, among other things, its liquidity
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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