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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.
Aviat
Aviat
Aviat Revenue by Geographic Location
Revenue by Geographic Location
North America Revenue
CapyFin.comAfrica and the Middle East Revenue
CapyFin.comLatin America and Asia Pacific Revenue
CapyFin.com 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
- The timing of Aviat’s receipt of payment for products or services from its customers
Revenue & Expenses
Visualization of income flow from segment revenue to net income