Aviat Networks Inc. (AVNW, Financial) filed Quarterly Report for the period ended 2010-10-01.
Aviat Networks Inc. has a market cap of $249.8 million; its shares were traded at around $4.21 with and P/S ratio of 0.5. AVNW is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jean-Marie Eveillard of First Eagle Investment Management, LLC.
The North America segment first quarter fiscal 2011 operating loss included $4.8 million of restructuring charges, $3.9 million from the loss on sale of NetBoss assets and $0.7 million for share-based compensation.
As of October 1, 2010, our principal sources of liquidity consisted of $107.8 million in cash and cash equivalents plus $24.4 million of available credit under our current $40.0 million credit facility with Silicon Valley Bank. Cash flow used in operations for the first quarter of fiscal 2011 totaled $36.8 million.
Our cash collections in the first quarter of fiscal year 2011 were substantially lower than in the fourth quarter of fiscal year 2010 in part because we had very strong collections in the fourth quarter of fiscal year 2010 compared with revenue in that quarter. In addition, because of operational and manufacturing issues, we had substantial shipments to customers with a large quantity of products shipped in the final month of the quarter. This limited our ability to collect receivables before the quarter end. Cash use in the quarter was caused by losses in the quarter, sequential increases in receivables of approximately $13 million and a sequential reduction in accounts payables of $5 million. We expect that cash burn will continue in the second quarter of fiscal year 2011 and should result in a $10 million to $20 million decrease to cash and cash equivalents on our balance sheet.
As of October 1, 2010, we had $24.4 million of credit available under our $40.0 million revolving credit facility with Silicon Valley Bank as mentioned above. The total amount of revolving credit available was $40.0 million less $6.0 million in outstanding short term loans which mature by September 30, 2011, and $9.6 million in outstanding standby letters of credit issued under the facility.
Subsequent to October 1, 2010, we negotiated an amendment to our credit facility with Silicon Valley Bank that modifies the liquidity ratio to expand the definition of domestic unrestricted cash to include cash held by our Singapore subsidiary in the U.S. up to a maximum amount of $20.0 million. This expanded definition will increase our available credit under the facility by up to $8.0 million without changing the maximum credit amount of $40.0 million.
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Aviat Networks Inc. has a market cap of $249.8 million; its shares were traded at around $4.21 with and P/S ratio of 0.5. AVNW is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Jean-Marie Eveillard of First Eagle Investment Management, LLC.
Highlight of Business Operations:
Our net loss in the first quarter of fiscal 2011 was $21.3 million compared with a net loss of $7.8 million in the first quarter of fiscal 2010. The net loss in the first quarter of fiscal 2011 and 2010 included amortization of purchased intangibles, rebranding expenses and share compensation expense. In addition, we incurred substantial charges associated with two ongoing restructuring plans. During the first quarter of fiscal 2011, we incurred $5.6 million of restructuring charges compared with $1.1 million in the first quarter of fiscal 2010. Finally, we recognized a $3.9 million loss on the sale of NetBoss assets to a third party in the first quarter of fiscal 2011. Other assets on our Condensed Consolidated Balance Sheet as of October 1, 2010 decreased by approximately $8.0 million compared with July 2, 2010 as a result of the sale of NetBoss assets. These charges and expenses are set forth on a comparative basis in the table below:The North America segment first quarter fiscal 2011 operating loss included $4.8 million of restructuring charges, $3.9 million from the loss on sale of NetBoss assets and $0.7 million for share-based compensation.
As of October 1, 2010, our principal sources of liquidity consisted of $107.8 million in cash and cash equivalents plus $24.4 million of available credit under our current $40.0 million credit facility with Silicon Valley Bank. Cash flow used in operations for the first quarter of fiscal 2011 totaled $36.8 million.
Our cash collections in the first quarter of fiscal year 2011 were substantially lower than in the fourth quarter of fiscal year 2010 in part because we had very strong collections in the fourth quarter of fiscal year 2010 compared with revenue in that quarter. In addition, because of operational and manufacturing issues, we had substantial shipments to customers with a large quantity of products shipped in the final month of the quarter. This limited our ability to collect receivables before the quarter end. Cash use in the quarter was caused by losses in the quarter, sequential increases in receivables of approximately $13 million and a sequential reduction in accounts payables of $5 million. We expect that cash burn will continue in the second quarter of fiscal year 2011 and should result in a $10 million to $20 million decrease to cash and cash equivalents on our balance sheet.
As of October 1, 2010, we had $24.4 million of credit available under our $40.0 million revolving credit facility with Silicon Valley Bank as mentioned above. The total amount of revolving credit available was $40.0 million less $6.0 million in outstanding short term loans which mature by September 30, 2011, and $9.6 million in outstanding standby letters of credit issued under the facility.
Subsequent to October 1, 2010, we negotiated an amendment to our credit facility with Silicon Valley Bank that modifies the liquidity ratio to expand the definition of domestic unrestricted cash to include cash held by our Singapore subsidiary in the U.S. up to a maximum amount of $20.0 million. This expanded definition will increase our available credit under the facility by up to $8.0 million without changing the maximum credit amount of $40.0 million.
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