Aviat Networks Q3 Revenues Fall 11.2% to $100M, GAAP Net Loss $2.1M
Aviat Networks reported fiscal Q3 revenues of $100.0 million, down 11.2% year-over-year, resulting in a GAAP operating income of $0.9 million and a net loss of $2.1 million (–$0.16 per share). Non-GAAP earnings were $0.7 million (0.06 per share), while nine-month operating income rose to $13.4 million from $1.7 million.
1. Third Quarter Revenue Decline
Aviat Networks generated $100.0 million in Q3 revenues, down from $112.6 million a year earlier. North America sales fell 6.6% to $46.2 million and international revenues slid 14.9% to $53.8 million due to project timing and capital expenditure delays.
2. Margin Compression and Operating Income
GAAP gross margin contracted to 29.3% from 34.9%, while non-GAAP margin dipped to 29.4% from 35.8%. GAAP operating income declined to $0.9 million from $9.3 million, and non-GAAP operating income dropped to $3.0 million from $13.0 million.
3. Profitability Metrics
The company posted a GAAP net loss of $2.1 million (–$0.16 per share) versus prior-year net income of $3.5 million. On a non-GAAP basis, net income was $0.7 million (0.06 per share), with Adjusted EBITDA of $4.4 million, cash of $78.1 million and net debt of $26.1 million.
4. Year-to-Date Performance
For the nine months ended March 27, revenues edged down 0.1% to $318.8 million, while North America sales rose 1.4% to $151.7 million. GAAP operating income improved to $13.4 million from $1.7 million, and non-GAAP operating income increased to $20.5 million from $16.1 million.