- Raised guidance for upcoming 4Q 2015 to be reported September 8, 2015
- On March 3 announced restructuring to save $4M to $5M by the end of fiscal year 2015 with an incremental cost savings of approximately $10M to $12M in fiscal year 2016.
- 56c/share cash
- $70M market cap
- Revenues of $340M/year
- Institutions hold 70% of shares with several activist investors among them
- Recently announced a multi-million multi-year contract in the Philippines
- Named top-rated microwave specialist for 2015 according research firm Infonetics…received 7 out of 10 No. 1 places leaving CRNT, Ericsson. Huawei, Dragonwire eating dust
Here are excerpts of the press release raising guidance:
Aviat Networks to Release Fiscal Fourth Quarter and Fiscal Year 2015 Financial Results on September 8, 2015; Raises Fiscal Fourth Quarter Revenue Outlook
SANTA CLARA, Calif., Aug. 20, 2015 /PRNewswire/ -- Aviat Networks, Inc. (AVNW), a leading expert in microwave networking solutions announced it is raising its fiscal fourth quarter revenue outlook to $85 million to $88 million. The previous range was $80 million to $85 million.
The company will host a conference call at 4:30 p.m. ET on September 8, 2015 to discuss its financial results. To listen to the live conference call, please dial toll free 888-395-3227 or 719-325-2402, access code 8371663, by 4:20 p.m. ET.
Competitors CRNT recently reported earnings surprising everyone with its return to profitability. 25% market share leader Ericsson is winding down microwave operations benefitting AVNW and CRNT.
On March 3, 2015 AVNW announced an aggressive restructuring plan aimed at improving its financial results going forward.
The restructuring press release stated:
The restructuring plan is part of Aviat Networks' ongoing efforts to lower fixed overhead costs and operating expenses, and generate cash. In addition to these restructuring actions, Aviat expects to achieve additional savings from non-headcount cost reductions.
These actions are expected to result in cost and expense savings of approximately $4 million to $5 million by the end of fiscal year 2015 with an incremental cost savings of approximately $10 million to $12 million in fiscal year 2016. These actions augment the ongoing efforts to optimize Aviat Networks' overall cost structure with the near term dynamics of the microwave radio and telecommunications markets and are expected to return Aviat Networks to profitability. The comprehensive restructuring program includes:
• Reducing the global workforce through the consolidation of functions and simplification of operational processes, and
• Selectively focusing on market verticals and geographies where management sees the highest potential for profitable growth.
"We have made significant improvements to our cost structure over the last several quarters," says Michael Pangia, President and CEO, Aviat Networks. "While the long-term outlook for microwave and millimeter wave wireless transport remains positive, management is committed to running Aviat Networks as a profitable, cash generating business and these restructuring actions are a critical step in accomplishing these objectives. These additional efforts have been carefully selected to have minimal impact on the introduction of our new products and allow us to maintain our strong service offerings to support key customers around the globe."
About Aviat Networks:
Aviat Networks, Inc. (AVNW) is a leading global provider of microwave networking solutions transforming communications networks to handle the exploding growth of IP-centric, multi-Gigabit data services. With more than one million systems sold in over 140 countries, Aviat Networks provides LTE-proven microwave networking solutions to mobile operators, including some of the largest and most advanced 4G/LTE networks in the world. Public safety, utility, government and defense organizations also trust Aviat Networks' solutions for their mission-critical applications where reliability is paramount. In conjunction with its networking solutions, Aviat Networks provides a comprehensive suite of localized professional and support services enabling customers to effectively and seamlessly migrate to next generation Carrier Ethernet/IP networks. For more than 50 years, customers have relied on Aviat Networks' high performance and scalable solutions to help them maximize their investments and solve their most challenging network problems. Headquartered in Santa Clara, California, Aviat Networks operates in more than 100 countries around the world