Q1 2025 Aviat Networks Inc Earnings Call Transcript
Key Points
- Aviat Networks Inc (AVNW) reported a year-over-year revenue increase of 1.7%, reaching $88.4 million for the first quarter of fiscal 2025.
- The company has seen growth in its international revenue, which increased by 44% from the same period last year, driven primarily by the Palink acquisition.
- Aviat Networks Inc (AVNW) is experiencing a growing demand for its network management software, Provision Plus, which represents a significant upgrade opportunity for over 1 million Palink radios.
- The company has successfully secured its first purchase order for the Prisa 5G router from an American utility company, marking progress in its private 5G business.
- Aviat Networks Inc (AVNW) is optimistic about its future, with expectations of stronger results in the back half of fiscal year 2025, supported by a strong bookings trajectory and a favorable demand environment.
- The company reported a non-GAAP gross margin of 23% and an adjusted EBITDA of minus $7.7 million, indicating financial challenges.
- Aviat Networks Inc (AVNW) faced difficulties due to ongoing Tier 1 CapEx weakness and timing challenges from private network and international projects.
- The global microwave market saw an 8% year-over-year contraction, impacting Aviat Networks Inc (AVNW) as it was unable to offset Tier 1 weakness.
- Gross margins were significantly impacted by lower volume and a mix shift away from North America towards international business.
- The company had to manage higher operating expenses associated with the preparation for the stoppage of transition services with NEC, affecting profitability.
Good afternoon. Welcome to Aviat Networks first quarter, fiscal 2025 earnings call at this time. All participants are in Alyssa only mode a question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Mr Andrew Fredrickson, Director of Investor Relations. Thank you. You may begin.
Thank you and welcome to Aviat Networks first quarter, fiscal 2025 results conference call and webcast.
You can find our press release and updated investor presentation in the IR section of our website at www dot avian networks dotcom. Along with a replay of today's call with me today are Pete Smith, Aviat's President and CEO who will begin with opening remarks on the company's fiscal quarter followed by Michael Conaway. Our CFO who will review the financial results for the quarter.
Pete will then provide closing remarks on Aviat's strategy and outlook followed by Q&A
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