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Aviat Networks Inc. (AVNW) filed Quarterly Report for the period ended 2011-12-30.
Aviat Networks Inc. has a market cap of $146.3 million; its shares were traded at around $2.39 with and P/S ratio of 0.3.
This is the annual revenues and earnings per share of AVNW over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AVNW.
Highlight of Business Operations:
Demand borrowings carry an interest rate computed at the daily prime rate as published in the Wall Street Journal, which was 3.25% as of December 30, 2011. Interest on Eurodollar loans are offered at LIBOR plus a spread of between 2.00% to 2.75% based on our current leverage ratio. The interest rate on Eurodollar loans was set initially at a spread of 2.75% for the fiscal quarter ended October 1, 2010 and is adjustable quarterly thereafter based on the computed actual leverage ratio for the most recently completed fiscal quarter. The term loan is at a fixed rate of 5% per annum and provides for equal monthly payments of principal. The facility contains a minimum liquidity ratio covenant and a minimum profitability covenant. As of December 30, 2011, we were in compliance with these financial covenants. Certain of our assets, including accounts receivable, inventory, and equipment, are pledged as collateral for the credit facility.For the second quarter and first two quarters of fiscal 2012, MTN Group in Africa accounted for 8.6% and 13.3%, respectively, of our total revenue. In the same periods of fiscal 2011 there were no customers accounting for 10% or more of our revenue. We have entered into separate and distinct contracts with MTN as well as separate arrangements with MTN group subsidiaries. None of such contracts on an individual basis are material to our operations. The loss of all MTN group business could adversely affect our results of operations, cash flows and financial position.
Our revenue in North America increased $3.9 million, or 9.7%, and $5.6 million, or 7.4%, respectively, during the second quarter and first two quarters of fiscal 2012 from the same periods of fiscal 2011. While product volume is slightly higher compared with the prior year quarter, revenue growth in the second quarter of fiscal 2012 came primarily from increased services projects with larger network operators and our state and local government customers. We have seen year-over-year revenue growth in this region for each of our first two quarters in fiscal 2012 and the substantial changes in product mix of our sales from year to year. The bulk of our product revenue in North America is now from our Eclipse product platform, whereas a year ago, our legacy products made up a significant portion of the segment's sales. The revenue growth and product mix changes reflect continued success in transitioning our customer base to the new product platform as well as an increase in our services business from major customers in fiscal 2012.
Our International revenue declined $14.2 million, or 18.9%, and 4.9 million, or 3.5%, respectively, during the second quarter and first two quarters of fiscal 2012 compared with the same periods of fiscal 2011. Our business in Asia and Latin America showed improvement for both quarter and year-to-date periods from increased orders from network operators. However, our sales in Europe and Russia were down from the year ago periods primarily due to the reduction of business with a major customer in Russia. Sales to customers in Africa and Middle East decreased in the second quarter compared with same quarter in prior fiscal year, but have increased for the year-to-date period due to strong performance in the first quarter of fiscal 2012, resulting primarily from the deliveries of large orders to major network operators, including MTN in Africa.
In an amendment to the facility effective November 2, 2011, the commitment of $40.0 million under the facility was extended to expire on February 28, 2014 and provides for (1) demand borrowings at the prime rate published in the Wall Street Journal, (2) fixed term Eurodollar loans for up to six months at LIBOR plus a spread of between 2.00% to 2.75% based on the company s current leverage ratio, (3) a two-year term loan in an amount up to $8.25 million at a fixed rate of 5% per annum to be drawn by January 31, 2012, and (4) the issuance of standby or commercial letters of credit. The term loan was drawn down on January 30, 2012 and will be repaid in 24 equal monthly installments of principal plus accrued interest commencing February 29, 2012. The facility contains a minimum liquidity ratio covenant and a minimum profitability covenant and is secured by certain of the company s assets.
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