AVNW

Image source: The Motley Fool. Thursday, Aug. 27, 2026 at 8:30 a.m. ET Vice President, Corporate Finance - Andrew Fredrickson President and Chief Executive Officer - Pete Smith Senior Vice President and Chief Financial Officer - Andy Schmidt Vice President and Chief Accounting Officer - Jonanna Mikulenka Operator: Welcome to Aviat Networks' Fourth Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Andrew Fredrickson, Vice President, Corporate Finance. You may begin. Andrew Fredrickson: Thank you, and welcome to Aviat Networks' Fourth Quarter Fiscal 2026 Results Conference Call and Webcast. You can find our press release and updated investor presentation in the IR section of our website at www.aviatnetworks.com, 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 Andy Schmidt, CFO, to review financial results for the quarter. Pete will then provide closing remarks on Aviat's strategy and outlook. As a reminder, during today's call and webcast, management may make forward-looking statements regarding Aviat's business, including, but not limited to, statements relating to fiscal guidance, financial projections, business drivers, new products and expansions, the economic activity in different regions. These and other forward-looking statements reflect the company's opinions only as of the date of this call and webcast and involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements. Additional information on factors that could cause actual results to differ materially from the statements expressed or implied on this call can be found in our most recent filings with the SEC. The company undertakes no obligation to revise or make public any revision of these forward-looking statements in light of new information or future events. Additionally, during today's call and webcast, management will reference both GAAP and non-GAAP financial measures. Please refer to our press release, which is available in the IR section of our website at www.aviatnetworks.com and financial tables therein, which include a GAAP to non-GAAP reconciliation and other supplemental financial information. At this time, I would like to turn the call over to Aviat's President and CEO, Pete Smith. Pete? Peter Smith: Thanks, Andrew. Let's review the highlights from the fourth quarter. Quarterly revenues of $121 million, up 4.8% versus the year ago period. Adjusted EBITDA of $11.9 million, non-GAAP EPS of $0.64, year-end backlog of $367 million, up 14% versus the end of fiscal year 2025. This marks a strong end to Aviat's fiscal 2026. Full year revenue was $440 million, up 1.2% versus the prior fiscal year. This represents our sixth consecutive year of revenue growth. Aviat is the only microwave company to achieve this growth during the last 6 years. I would also like to note that this was the first time in over a decade that Aviat has had all 4 quarters in the fiscal year with at least $100 million in revenue. This is a tremendous achievement, and I would like to thank all of our customers, supplier partners and employees in making this possible. Since FY '23, we have been expanding outside of our core microwave business with a focus on mission-critical access. In FY '26, sales of non-microwave, i.e., mission-critical access products grew significantly versus FY '25 and is the result of Aviat's strategic decisions and execution in years prior, allowing us to diversify our business and gain access to larger, faster-growing segments. We are glad to see this strategy coming to fruition. Now I'd like to talk more about recent developments in our end markets. In the U.S., strong quarterly sales and bookings set the stage for an exciting year ahead. We see several growth vectors aligning for Aviat. First, we believe our multi-dwelling unit MDU, opportunity will deliver meaningful revenues to Aviat this year. We announced an order received from an existing customer in the range of $25 million to $30 million. We expect all of this revenue in fiscal 2027. The Aviat team continues to work to win additional markets and adjacent opportunities to increase our capture rate in fiscal 2027 and beyond. Secondly, we see private networks continuing to be a core foundation for Aviat's growth. In state and local public safety networks, Aviat remains the leader and continues to pursue opportunities for more share of demand. According to industry research, city and state government budgets are expected to grow 6.4% and 4.2%, respectively. Video-intensive applications like drones and body cameras as well as other data-intensive tools drive increased bandwidth demand within private networks, which necessitates more or upgraded microwave links. As highlighted in our last earnings call, utility private networks are poised for growth. Power infrastructure and grid connectivity are emerging as key bottlenecks to AI infrastructure deployment. This build-out requires secure, highly reliable communication networks to connect and manage grid assets. Aviat participates here, thanks to our portfolio of industry-leading solutions geared towards utilities. Our microwave radio portfolio of Aprisa SCADA radios and LTE 5G routers, combined with our network management software and our Health Assurance and Frequency Assurance offerings provides utilities a one-stop shop for its network connectivity build-out and management needs. With the SpaceX IPO and the announcement of a potential fourth cellular network in the U.S., there is a significant amount of investor interest in low earth orbit or LEO networks. We believe that there is a valuable niche to fill in the communication space specifically around nomadic or very remote locations. Therefore, we see the technology as being complementary and not necessarily competitive with Aviat. We see the following for LEO and Aviat. One, Aviat's core business is largely unthreatened. Two, there is an idea of SpaceX building out a terrestrial network. While the architecture of that conceptual network is not fully formed, should this materialize, Aviat is well positioned if and when the architecture requires terrestrial backhaul. Three, most exciting is the new functionality that LEO brings. LEO offers redundant communications. This is most valued by private network customers, and we are seeing opportunities for Aviat through integration with microwave and cellular router solutions. For microwave networks, satellite provides a low-cost, easy-to-deploy backup path for critical remote sites. For cellular routers and public safety and fleet applications, satellite fills LTE and 5G coverage gaps with automatic failover. In both cases, Aviat's opportunity is to deliver an integrated solution that improves resilience while simplifying deployment, management and operations for our customers. Aviat's customers are engaged in trials to demonstrate the value proposition of this redundancy. Please see Slide 11 in our investor presentation to get a picture of the ongoing trials and connectivity solution we bring. Moving on to international. Aviat's business has seen particular traction in the EMEA region, where revenues were up 53% in the fourth quarter and up 33% for all of fiscal 2026. This growth has been driven in part by recent international private network wins, including with defense customers, including blackned as well as energy firms. As we pursue more such private network business, we see this segment as growing -- a growing portion of our international business in the future. Moving on to supply chain. Like others in the technology hardware space, Aviat has not been immune from component shortages and cost inflation. Specifically, we are most focused on securing supply for memory, printed circuit boards or PCBs, capacitors and FPGAs. We will be opening the playbook we used during COVID supply chain crisis to secure favorable placement and allocations among our suppliers. Although Aviat has been able to manage through these current allocations and shortages with our inventory and safety stock, we have also had some headwinds to our gross margins from component cost inflation. We plan to pass along these price increases to our customers to help offset these rising costs. With that, I will now turn the call over to Andy to go through the financial results. Andrew Schmidt: Thanks, Pete. I'll review some of the key fiscal year 2026 and fourth quarter results. Please note that our detailed financials can be found in our press release and all comparisons discussed are between fourth quarter of fiscal year '26 and fourth quarter of fiscal year '25, unless otherwise noted. For the fourth quarter, we reported total revenue of $120.9 million as compared to $115.3 million for the same period last year, an increase of 4.8%. Revenues for the 12-month period were $439.7 million versus $434.6 million the year ago 12-month period. North America, which comprised 56.5% of our total revenues for the quarter were $68.3 million. This was up $10.3 million or 17.8% versus the year ago period. These results were complemented by a limited set of deployments for our North American-based MDU project in the quarter. International revenues, which made up 43.5% of total revenues were $52.6 million for the quarter. For fiscal 2026, North American revenues were $220 million, up 6% versus fiscal year '25. International revenues were $219.6 million in fiscal '26 compared to $227 million in fiscal '25. EMEA showed solid results for fiscal '26, while APAC stabilized. We feel our international business overall is poised for growth in fiscal '27. Gross margins in the fourth quarter were 30.8% on a GAAP basis and 30.9% on a non-GAAP basis. This compares to 34.2% GAAP and 34.7% non-GAAP in the prior year. The year-over-year change in gross margin is typically due to volumes, regional and product mix. That said, as Pete noted earlier, our current period gross margin was negatively affected by component shortages and associated price inflation. For fiscal 2026, gross margins were 31.5% on a GAAP basis and 31.8% on a non-GAAP basis. This compares to 32.1% GAAP and 32.8% non-GAAP in fiscal '25. Fourth quarter GAAP operating expenses were $31.4 million. Non-GAAP operating expenses, which exclude the impact of restructuring charges, share-based compensation and other costs were $27.3 million. For fiscal '26, GAAP operating expenses were $119.1 million and non-GAAP operating expenses were $109.2 million. This is versus $128.9 million GAAP and $113.5 million non-GAAP in fiscal '25, a decrease of $9.8 million and $4.3 million, respectively. This is the result of the entire management team diligently managing costs, continuously reviewing corporate needs and driving process efficiency efforts. Fourth quarter operating income was $5.8 million on a GAAP basis and $10 million on a non-GAAP basis. This compares to $8.9 million GAAP and $12.9 million non-GAAP in the year ago period. For fiscal '26, GAAP operating income was $19.2 million, up $8.7 million versus the last fiscal year. Fiscal 2026 non-GAAP operating income was $30.6 million, up $1.5 million or 5.2% versus the last fiscal year. The fourth quarter non-GAAP tax benefit was $0.5 million. As a reminder, as of fiscal 2026 year-end, the company has over $420 million of net operating losses or NOLs that will continue to generate shareholder value via minimal cash tax payments for the foreseeable future. Fourth quarter GAAP net loss was $1.3 million and non-GAAP net income was a positive $8.3 million, which excludes restructuring charges, depreciation and amortization, share-based compensation, interest and other income, other nonrecurring expenses and the noncash tax provision. Fourth quarter GAAP loss per share was $0.10 on a fully diluted basis and non-GAAP earnings per share came in at a positive $0.64 on a fully diluted basis. Adjusted EBITDA for the fourth quarter was $11.9 million or 9.8% of revenues. For the fiscal year, adjusted EBITDA was $36.7 million. Moving on to the balance sheet. Our cash and marketable securities at the end of the fourth quarter were $72.8 million. Our outstanding debt was $97 million, bringing the net debt position to $24.2 million. Aviat made continued improvements in its balance sheet. Unbilled receivables were lower for the third consecutive quarter. The fourth quarter balance was $3.1 million lower compared to the fiscal 2026 third quarter ending balance. This brings our total unbilled receivables balance to $82.1 million. Inventories were also lower sequentially by $3.6 million, bringing our inventory balance to $69 million. For the full fiscal year, Aviat generated cash from operations of $13.6 million. Combined with the other balance sheet improvements, this is good progress for shareholders. Other points to make. Aviat used $2.2 million to repurchase approximately 131,000 shares in the quarter at an average price of $16.55 per share. Finally, we are pleased to share that in the context of our control environment, we have fully remediated our past 5 material weaknesses. Rest assured, Aviat's core value of continuous improvement is still in play, and we will continue to work to further strengthen our foundation. With that, I'll turn it back to Pete for some final comments. Peter Smith: Thanks, Andy. Regarding our fiscal 2027 guidance, we are establishing our outlook as follows: full year revenues to be in the range of $455 million to $470 million; full year adjusted EBITDA to be in the range of $50 million to $55 million. Note that our guidance is full fiscal year. Some additional color on seasonality. Based on our backlog and current outlook, the first quarter will be the foundation on which Aviat's revenue builds throughout fiscal 2027. Additionally, we expect the second half of the fiscal 2027 to have higher overall revenues versus the first half of fiscal 2027. See Slide 23 in the investor presentation for a view of the seasonality Aviat has typically experienced and for use in your models. With that, operator, let's open up for questions. Operator: [Operator Instructions] Our first question coming from the line of Scott Searle with ROTH Capital. Scott Searle: Nice job on the quarter. Also nice to see the balance sheet improvements and the cleanup of the material weaknesses. Maybe just to dive in, I wonder if you could give us an idea of the breakdown in North America between carrier contribution and private networks? And then specifically, looking into the September quarter and how we ramp up from an MDU contribution standpoint. Pete, how is that shaping up just in terms of the context of how we should think about the flow of that into the course of fiscal '27? Peter Smith: So we ended the year with record backlog, up 14%. A lot of that was worked throughout the year that landed in the May, June time frame. There's this pervasive component availability. So when we said in the script that the Q1 is going to be a foundation, we think given the timing of our wins and given the supply chain ramp-up, we think if you put a revenue profile together, Q1 will be the lowest. Q2 and Q4 will be peaks and Q3 should be higher than Q1. And then with respect to the overall, I have -- I don't have the U.S. breakdown in front of me, but we're about 45% private networks, 55% service providers or mobile network operators. And I think that -- I'll give a qualitative statement. I would say the U.S. has more private networks than the overall Aviat. So I think that gives you a vector on that, Scott. Scott Searle: Okay. Pete, just to clarify, though, on the MDU front, do you expect contribution in the September quarter? Or is there a lot of predeployment activity ongoing, more engineering and otherwise, and we should expect to ramp up into the second half of the year or second quarter? Peter Smith: Yes. So we think the ramp-up is going to occur in the second quarter. There is a chance that we get some in the September quarter. And let me just give a little more color on this. We completed more proof of concepts in a variety of markets. And we believe that the customer has moved us ahead in the supplier pecking order where we think we're established as the preferred vendor. So what we really need to do is get that site readiness over the hump in the September quarter, get all of our components on order and enjoy the win in the December quarter. Scott Searle: Great. And 2 other quick ones, if I could. Just on the satellite LEO opportunity. I'm wondering if you're actually starting to see interesting contribution today. It seems like there's a lot of activity, but I'm wondering what you're factoring into that fiscal '27 guidance at this point in time. And then second, gross margins, some component headwinds on that front. I'm wondering how you're thinking about that in terms of fiscal '27, broadly speaking. Is there some expansion in gross margin opportunities given some incremental scale and product mix? Or are you still seeing some headwinds on the component front? Andrew Schmidt: Sure, Scott. This is Andy. Great to hear from you. In terms of gross margins, as Pete commented on revenue, Q1 is going to be our building block and we go up from there. So we -- it is, let's call it, the foundation or lowest part of the year, it's going to be affected by lower volume, of course. Pete did talk to in his prepared remarks, strategies that we're deploying to offset the component inflation, if you will. Those are going to be more realized in Q2 and going forward, not in Q1. But again, we do have plans and we expect Q2, 3 and 4 to have more upward pressure on gross margin. Peter Smith: And there's no LEO in the guide. Operator: Our next question in queue coming from the line of Christian Schwab with Craig-Hallum. Christian Schwab: Congrats on the solid quarter. I'm wondering if you could give us an update on your large European competitor who is exiting their microwave business, we believe, by the end of this calendar year. Are you seeing any business benefit from that currently? And would you anticipate or see an increased dialogue that you think will benefit you in your next fiscal year? Peter Smith: A competitor of our European competitor has communicated that their pipeline of opportunities is improving. And I would suggest that the same thing is transpiring with us. To convert a microwave network, it's a 6- to 18-month proposition. And the good news for us was the announcement was made November of 2025. And immediately after that, I think Aviat and all of our non-for-sale competitors created a pipeline and are pursuing that. And I would say we've had, kind of, normal course of business wins. And I would say that our competitors have probably had that as well where networks get exchanged at a low level. I think the possibility for this to improve is probably in the March and June quarters for Aviat as well as the competitors that have been working over the -- what will be a period of 1 year, 1.5 years to convert the uncertainty to wins. Christian Schwab: And then as it relates to BEAD, is there -- there's been a lot of fluctuations of people tied to that. And just wondering what's your current thoughts. I think before, we thought maybe some things would start in fiscal year '27, but really had more of a multiyear outlook. I'm just wondering if there's any update on your current thoughts there. Peter Smith: Yes. In front of me, we've got quotes out to our customers. We're working to turn those quotes into business. So it's becoming tactical rather than theoretical. And I would also say that we still believe it to be a 3-year impact. And we -- our estimate is in the December quarter, it should have the first real impact to our revenue. Christian Schwab: Okay. Fantastic. And then lastly, regarding your belief that you're the preferred vendor and showing proof of concepts of different applications on the MDU ramp. I appreciate the $25 million to $30 million significant order in hand. Should we anticipate that there could be more significant orders as we go through fiscal year '27? Or is that yet too early? Peter Smith: I don't want you to anticipate, but there could be. How about that? Trying to split the middle there. But it's a fair question, and we're hopeful. Let's not put it in the model, but that's what we're working towards. Operator: Our next question in queue coming from the line of Jaeson Schmidt with Lake Street. Jaeson Schmidt: Just following up on Christian's last question on the MDU opportunity and potential for more orders. Can you help us size the potential follow-on orders? Or how are you looking at this opportunity sort of in the intermediate term here? Peter Smith: Yes. So I think what's really critical to driving the size of the opportunity is subscriber growth, and we're in the early innings of the subscriber growth. And the more subscribers that come online for this Tier 1, the bigger the opportunity. I mean for the last time we talked, we sized this as an 8-figure opportunity, and we put that in our 8-K during our quiet period, we would say that, just that we think it's going to get bigger. So then the next question is, does it cross the barrier for 9 figures? I don't know -- I think the total annual opportunity is in the $100 million neighborhood, how the -- and that's predicated on, one, the customer achieving their subscriber growth metrics. And two, our share versus the competitive share. So if you want to look at this as what could it be, what could it all be? I would say we hit the $100 million figure. The precursors to that are -- the market opportunity hits the $100 million level. How that parses out between Aviat and the competition, it's looking more favorable, but I don't see any situation where we'd be sole sourced. And then what's probably more important is how many subscribers come on to those MDU units. Jaeson Schmidt: Okay. That's really helpful. And then just as a follow-up, can you update us on the Aprisa router funnel and what you're seeing and expectations for fiscal '27? Peter Smith: So we're not going to break out guidance specifically for Aprisa. The Aprisa business on the utility front, which is why we bought it, continue to enjoy it, is performing well. We've talked in the past about the LTE router and basically putting this router into public safety or police cars. What I can say is that we have initial orders in the U.S., Europe and Latin America. It's still relatively small, and there's a long lead cycle -- a long, kind of, runway to get government agencies into the purchasing funnel. But I would also say that our performance in the mobile cellular router sector is we're going up against Cradlepoint. And the reason we have those initial orders and significant engagements is because we have a compelling value proposition that customers like, and it's just going to take time, but we believe that it will happen. Operator: [Operator Instructions] Our next question is coming from the line of Dave Kang with B. Riley. Dave Kang: First question is, just wondering how much -- regarding that Middle East projects that were delayed last quarter, how much of that was captured in the fourth quarter? Peter Smith: I think most of it, Dave, most of it was recaptured. Dave Kang: Got it. And did that mix also played into that gross margin? I know you talked about supply chain headwind, but also the mix. Andrew Schmidt: Primarily the component inflation has affected this quarter. Mix is pretty much representative. As I said in the prepared remarks, Americas were about 56.5%, which is fairly typical. Peter Smith: Just to add to that, Dave, right? So the nature of the inflation in the component environment is sometimes there's spot market, sometimes it's prices go up even after you make the order. And in the next few weeks, we're going to go out to our customers for more price. So unfortunately, the nature of the inflation is it's a little more abrupt than typical. So we got impacted by that abruptness, and we're going to work to offset those -- that inflation. I think we should get some improvement in the December quarter and then the back half, it should be better still. Dave Kang: So by second half, can we expect like mid-30s in terms of gross margin expectations? Andrew Schmidt: That would be aspirational. A lot of the growth, again, is coming out of MDU as we've talked through in these other markets, and that has pretty much what we call more of a middle of our product strategy profile. So again, we ended the year at about 32%. That's a safe harbor in terms of how we operate, just looking at historical. Again, as we -- as Pete talked to these different strategies, we expect some upward pressure. So that's good. But I wouldn't necessarily go as high as what you're suggesting as we speak today. Dave Kang: Got it. And my last question is regarding your fiscal '27 revenue outlook. Just wondering if any BEAD factored into that outlook? Peter Smith: A small amount, relatively conservative. So BEAD kicks in, we will revisit the guidance. Operator: Our next question coming from the line of Theodore O'Neill with Litchfield Hills Research. Theodore O'Neill: Congratulations on the good quarter. I want to also follow up on the MDU opportunity. Can you tell us -- I'm sure you can't mention them by name, but can you tell us about the type of customers that are driving the MDU opportunity? Peter Smith: Well, we've disclosed and a lot of industry folks -- we've disclosed that it's a U.S. Tier 1 that has access to 39 gigahertz spectrum. So that narrows it down and the field installers have leaked this, but it's not for us to disclose. So -- and their customers' customers are apartment dwellers that typically, the profile is they skew younger, lots of remote work from home that require bandwidth beyond what's economically delivered today. Theodore O'Neill: Okay. And Pete, last quarter, you talked about war-induced pushouts of about $9 million. And you already said that part of that had come into Q4. Did that all make in? Or are you still experiencing some kind of war-induced issues out there? Peter Smith: Actually, so the customer was not overdue. So -- but that was in the Middle East, war-induced issue. And we would say that there's steady state that, that problem has reversed. And I would say our demand in that customer base and our supply is at steady state. Theodore O'Neill: Okay. And finally, on the range of revenue guidance, there's a range of $15 million. Can you talk about what -- sort of what would make it at the high end or the low end of that, sort of, the give and take in that? Peter Smith: Yes. I'd like to talk about how to make it -- to get to the higher end, more MDU and how does that, one, is more subscriber growth; two, share gain versus the competition. Two is our de minimis modeling of BEAD. So if BEAD kicks in the way we've wished it would have kicked in over the last 5 years, then we will revisit guidance. And then three would be private networks. And Christian asked a question about the competitive dynamics in private networks. We think we're well positioned if some of those convert or if private networks, the Aprisa LTE router opportunity is in there. If either of those 2 things happen, that will pop up our private network. And then lastly, we see some -- given the competitive dynamics globally, we have more Tier 1 interest than normal new Tier 1. So that would be the fourth potential lever to move us from, let's say, the midpoint to the high end. So we have 4 possibilities. Operator: Our next question coming from the line of Rustam Kanga with Citizens Bank. Rustam Kanga: Andy and Pete, nice close to the year. Regarding the historical revenue pattern at 48% to 52% for the back half of the year for your guidance for next year. Are you looking at something, like, more towards the range of 40%, 60%? Or could it be more pronounced than that? Andrew Fredrickson: Russ, this is Andrew Fredrickson. Yes. So we mentioned that the second half of the year would be a little bit more back half weighted. I would think you could think about it incrementally more than maybe where it's been historically. So maybe it's something closer to 45%, 55%, but we'll certainly continue to keep you updated as we advance through the year. But if you look at the investor Slide #23 in our investor presentation, we have historical numbers over the last couple of fiscal years. I would say at a minimum, that's a good kind of guidance level from a seasonality perspective. But again, maybe you have a couple more percentage points in the back half. Peter Smith: Yes. Slide 23 is the model that we're signing up to. Rustam Kanga: Sounds good. And then regarding the MDU opportunity, I understand that it's hinging on the subscriber growth there. Just curious if the number of markets that you're operating there has grown or sustained from what you've talked about in the previous quarter. Peter Smith: Yes. I think we're slated or are in 25 markets. And if we roll back the clock, we were 1, 7, 11 to 13. So now I think we're approaching the 25 market level. Operator: And I'm showing no further questions in the Q&A queue at this time. I will now turn the call back over to Mr. Pete Smith with any closing remarks. Peter Smith: It's an exciting time for Aviat. Thanks, everyone, for joining. We look forward to again updating you in November. Thanks. Operator: This concludes today's conference call. Thank you for your participation, and you may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Aviat Networks (AVNW) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

InterDigital, Inc. IDCC reported better-than-expected second-quarter 2026 results, driven by healthy licensing momentum and contributions from its new Streaming and Cloud Services business. The company generated second-quarter revenues of $260.2 million, which declined 13% year over year but surpassed the Zacks Consensus Estimate. Non-GAAP earnings of $4.62 per share also comfortably beat expectations. The year-over-year decline largely reflected lower catch-up revenues compared with the prior-year period.Annualized recurring revenue increased 13% year over year to a record $625.7 million, highlighting strength in IDCC's underlying licensing portfolio. The increasing recurring revenue base provides greater revenue visibility and should help support continued investments in wireless, video and artificial intelligence (AI) technologies. InterDigital's recently signed agreement with Amazon.com, Inc. AMZN represents a significant step in expanding its licensing business beyond smartphones. The agreement covers Amazon services and devices, including Prime Video, with final financial terms to be established through binding arbitration.The deal helped Streaming and Cloud Services generate $110 million in second-quarter revenues against no revenues in the year-ago quarter. This emerging business could become an important growth driver as InterDigital looks to monetize its intellectual property across streaming platforms, cloud services, consumer electronics, IoT devices and automobiles. Such diversification should gradually reduce the company's dependence on traditional smartphone licensing opportunities.IDCC also remains well-positioned to capitalize on increasing investments in 5G, connected devices and next-generation video technologies. Its extensive patent portfolio and continued research investments provide a foundation for signing additional licensing agreements. InterDigital has collaborated with major academic institutions worldwide to expedite 6G research as it aims to strengthen its position in the next generation of wireless communications. Data traffic demand is growing exponentially worldwide and 5G networks are required to support this high-capacity end-user throughput. The MIMO (Multiple-Input, Multiple-Output) technology leverages an active antenna system that consists of multiple antenna elements to augment the performance, reliability and overall efficiency of wireless communication systems. The 6G technology, which relies on Massive MIMO, will enable significantly higher data rates than its predecessors, leading to improved spectrum efficiency. The company is actively contributing to the development of 6G standards, with research spanning integrated sensing and communication, sub-terahertz technologies, AI-native network architecture and post-quantum security. Its work also builds on advancements in 5G-Advanced, including massive MIMO, non-terrestrial networks, extended reality and AI/ML-driven network optimization.These initiatives are particularly important given InterDigital's licensing-focused business model. By developing technologies that could become essential to future wireless standards, the company is seeking to expand its portfolio of standard-essential patents and create additional licensing opportunities over the long term. Although commercial 6G deployment remains several years away, InterDigital's continued investment in next-generation wireless research could strengthen its technological leadership and support future royalty growth. InterDigital has surged 23.2% in the past year compared with the industry’s growth of 28.2%. It has outperformed peers like Aviat Networks, Inc. AVNW and Comtech Telecommunications Corp. CMTL. While Aviat has declined 6.6%, Comtech is down 10.3% over this period. One-Year IDCC Stock Price Performance Image Source: Zacks Investment Research Following strong quarterly results, InterDigital raised its 2026 revenue outlook to $775-$845 million from the previous range of $675-$775 million. Adjusted EBITDA is now projected between $469 million and $529 million, up from the prior forecast of $381-$477 million.The company also increased its non-GAAP earnings guidance to $10.85-$12.81 per share from $8.74-$11.84. InterDigital's healthy financial position provides additional flexibility. The company exited June with approximately $1.11 billion in cash, cash equivalents and short-term investments. Its asset-light licensing model and strong liquidity should help fund research initiatives while supporting shareholder returns. InterDigital's solid second-quarter performance, record recurring revenues, Amazon deal and raised guidance paint an encouraging picture. Expansion into Streaming and Cloud Services also broadens the company's long-term addressable market. Investors seeking exposure to the expanding wireless, streaming and connected-device ecosystems may consider buying IDCC stock following its solid second-quarter performance. InterDigital sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $120.9 million in Q4 fiscal 2026, up 4.8% year-over-year; full-year revenue of $439.7 million, up 1.2% versus fiscal 2025. Adjusted EBITDA: $11.9 million in Q4, or 9.8% of revenues; $36.7 million for the full fiscal year. Non-GAAP EPS: $0.64 per diluted share in Q4. GAAP Net Loss: $1.3 million in Q4, or $0.10 loss per diluted share. Gross Margin: 30.8% GAAP and 30.9% non-GAAP in Q4, down from 34.2% GAAP and 34.7% non-GAAP in the prior year; full-year margins were 31.5% GAAP and 31.8% non-GAAP. Operating Income: $5.8 million GAAP and $10 million non-GAAP in Q4; $19.2 million GAAP and $30.6 million non-GAAP for fiscal 2026. Operating Expenses: $31.4 million GAAP and $27.3 million non-GAAP in Q4; $119.1 million GAAP and $109.2 million non-GAAP for the full year. Backlog: $367 million at year-end, up 14% versus the end of fiscal 2025. North America Revenue: $68.3 million in Q4, up 17.8% year-over-year, comprising 56.5% of total revenues; $220 million for fiscal 2026, up 6%. International Revenue: $52.6 million in Q4, comprising 43.5% of total revenues; $219.6 million for fiscal 2026, down from $227 million in fiscal 2025. EMEA Revenue: Up 53% in Q4 and up 33% for all of fiscal 2026. Cash and Marketable Securities: $72.8 million at quarter-end; outstanding debt of $97 million, resulting in a net debt position of $24.2 million. Cash from Operations: $13.6 million for the full fiscal year. Unbilled Receivables: $82.1 million at quarter-end, down $3.1 million sequentially. Inventories: $69 million, down $3.6 million sequentially. Share Repurchases: $2.2 million used to repurchase approximately 131,000 shares in the quarter. Fiscal 2027 Guidance: Full-year revenues expected in the range of $455 million to $470 million; adjusted EBITDA expected in the range of $50 million to $55 million. Warning! GuruFocus has detected 6 Warning Signs with AVNW. Is AVNW fairly valued? Test your thesis with our free DCF calculator. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Aviat Networks Inc (NASDAQ:AVNW) reported a strong Q4 with revenue of $121 million, up 4.8% year-over-year, and full-year revenue of $440 million, marking its sixth consecutive year of growth. The company achieved record backlog of $367 million, up 14% year-over-year, providing strong visibility for fiscal 2027. Aviat Networks Inc (NASDAQ:AVNW) secured a significant $25-30 million MDU order, expected to contribute fully in fiscal 2027, with potential for further expansion. International business, particularly in EMEA, showed strong growth with Q4 revenues up 53% and full-year up 33%, driven by private network wins. The company fully remediated its past five material weaknesses, improving its control environment and balance sheet, with net debt reduced to $24.2 million. Aviat Networks Inc (NASDAQ:AVNW) is well-positioned to benefit from LEO satellite integration, offering complementary solutions for redundancy in private networks, with no LEO revenue in guidance yet. The company has over $420 million in NOLs, which will minimize cash tax payments for the foreseeable future. Gross margins declined to 30.9% non-GAAP in Q4, down from 34.7% year-over-year, due to component shortages and cost inflation. The company faces ongoing supply chain challenges, including shortages in memory, PCBs, capacitors, and FPGAs, which may impact margins and delivery timelines. Fiscal 2027 guidance implies modest revenue growth of 3.5-6.9%, with Q1 expected to be the weakest quarter due to supply chain ramp-up and MDU deployment timing. International revenues declined 3.3% in fiscal 2026, with APAC only stabilizing, indicating ongoing weakness outside EMEA. The MDU opportunity is dependent on subscriber growth and competitive share, with no guarantee of reaching the $100 million potential, and the company is not sole source. BEAD funding is modeled conservatively in guidance, with only a small amount factored in, and any significant impact is not expected until December quarter. The company plans to pass on component cost increases to customers, which could face resistance and impact customer relationships. Q: Can you provide an update on the MDU opportunity, including the expected revenue ramp and the potential size of the total opportunity?A: Pete Smith (CEO) stated that the $25 million to $30 million order from an existing customer is expected to be fully recognized in fiscal 2027, with the primary revenue ramp beginning in the December quarter. He noted the company is now in approximately 25 markets, up from 11-13 previously. The total annual opportunity is estimated to be in the $100 million neighborhood, contingent on the customer's subscriber growth and Aviat's market share, which is trending favorably. Q: What is the company's fiscal 2027 guidance and how should we model seasonality?A: Pete Smith (CEO) provided guidance for full-year revenues of $455 million to $470 million and adjusted EBITDA of $50 million to $55 million. He indicated that Q1 will be the lowest revenue quarter, with Q2 and Q4 expected to be peaks. Andrew Fredrickson (IR) added that the second half will be more heavily weighted, potentially closer to a 45%/55% split, and directed investors to slide 23 of the investor presentation for historical seasonality. Q: How is the company addressing component shortages and cost inflation, and what is the expected impact on gross margins?A: Pete Smith (CEO) explained that Aviat is facing headwinds from inflation in memory, PCBs, capacitors, and FPGAs. The company is reopening its COVID-era playbook to secure supply and plans to pass price increases to customers. Andy Schmidt (CFO) noted that Q1 gross margins will be affected by lower volume, but expects upward pressure in Q2 through Q4 as pricing strategies take effect. He cautioned that reaching mid-30s gross margin would be "aspirational," with the current safe harbor around 32%. Q: What is the company's view on the LEO satellite opportunity and is it factored into guidance?A: Pete Smith (CEO) stated that LEO is complementary, not competitive, to Aviat's core business. The opportunity lies in integrating satellite with microwave and cellular router solutions for redundancy in private networks. He confirmed that there is no LEO revenue included in the fiscal 2027 guidance, as the company is still engaged in customer trials. Q: Is Aviat seeing any business benefits from a large European competitor exiting the microwave business?A: Pete Smith (CEO) confirmed that the company's pipeline of opportunities is improving following the competitor's November 2025 announcement. However, converting microwave networks takes 6-18 months, so he expects the tangible benefits to materialize in the March and June quarters of fiscal 2027. Q: What is the current status of the BEAD program and its potential impact on fiscal 2027?A: Pete Smith (CEO) stated that BEAD is becoming "tactical rather than theoretical," with quotes being turned into business. He expects the first real revenue impact in the December quarter and believes it will be a three-year opportunity. A small, conservative amount of BEAD revenue is included in the guidance, and the company would revisit guidance if it kicks in more significantly. Q: Can you provide an update on the Aprisa router funnel and expectations for fiscal 2027?A: Pete Smith (CEO) noted that the utility-focused Aprisa business is performing well. The LTE router, targeting public safety and fleet applications, has initial orders in the US, Europe, and Latin America. While the sales cycle for government agencies is long, the company believes its compelling value proposition against competitors like Cradlepoint will drive growth over time. Q: Were the delayed Middle East projects recaptured in the fourth quarter, and did they impact gross margins?A: Pete Smith (CEO) confirmed that most of the war-induced delayed projects were recaptured in Q4. Andy Schmidt (CFO) clarified that the gross margin decline was primarily due to component inflation rather than product mix, as the regional mix was fairly typical for the quarter. Q: What are the key levers that could move revenue to the high end of the fiscal 2027 guidance range?A: Pete Smith (CEO) outlined four potential levers: 1) higher MDU subscriber growth and share gains, 2) a more significant BEAD kick-in, 3) wins in private networks, including the Aprisa LTE router opportunity, and 4) increased interest from new Tier 1 customers due to global competitive dynamics. Q: Can you provide more detail on the type of customer driving the MDU opportunity?A: Pete Smith (CEO) reiterated that it is a US Tier 1 operator with access to 39 GHz spectrum. The end customers are apartment dwellers, typically younger and working from home, who require bandwidth beyond what is economically delivered by current technologies. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Fourth Quarter Total Revenue of $120.9 million Q4 Operating Income of $5.8 million; Q4 Non-GAAP Operating Income of $10.0 million Q4 Net Loss of $1.3 million; Q4 Adjusted EBITDA of $11.9 million Q4 Diluted Loss per Share of $(0.10); Q4 Non-GAAP Diluted Earnings per Share of $0.64 AUSTIN, Texas, Aug. 27, 2026 /PRNewswire/ -- Aviat Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2026 fourth quarter and twelve months ended July 3, 2026. Fourth Quarter Highlights Completed sixth consecutive fiscal year of revenue growth; FY26 revenue of $439.7 million, up 1.2% versus the prior year Increased Q4 total revenue to $120.9 million, up 4.8% versus the year ago period; Q4 North America revenue of $68.3 million, up 17.8% versus the year ago period Finished the fiscal year with backlog of $367 million, up 14% year-over-year; maintained a trailing-twelve month book-to-bill ratio greater than 1 in the quarter Secured significant order in the U.S. from an existing customer for $25.0 million to $30.0 million Repurchased $2.2 million of shares in Q4 at an average price of $16.55 per share Fourth Quarter Financial Highlights Total Revenues: $120.9 million; North America revenues of $68.3 million, up $10.3 million from the year ago period GAAP Results: Gross Margin 30.8%; Operating Expenses $31.4 million; Operating Income $5.8 million; Net Loss $1.3 million; Net Loss per diluted share ("Net Loss per share") $(0.10) Non-GAAP Results: Adjusted EBITDA $11.9 million; Gross Margin 30.9%; Operating Expenses $27.3 million; Operating Income $10.0 million; Net Income $8.3 million; Net Income per share $0.64 Cash and Cash Equivalents: $72.8 million Net Debt: $24.2 million Full Year Financial Highlights Total Revenues: $439.7 million, up 1.2% from last year GAAP Results: Gross Margin 31.5%; Operating Expenses $119.1 million; Operating Income $19.2 million; Net Income $2.5 million, Net Income per diluted share $0.19 Non-GAAP Results: Adjusted EBITDA $36.7 million; Gross Margin 31.8%; Operating Expenses $109.2 million; Operating Income $30.6 million; Net Income per diluted share $1.66 Fiscal 2026 Fourth Quarter and Twelve Months Ended July 3, 2026 RevenuesThe Company reported total revenues of $120.9 million for its fiscal 2026 fourth quarter, compared to $115.3 million in the fiscal 2025 fourth quarter, an increase of $5.5 million or 4.8%. North America revenue of $68.3 million increased by $10.3 million or 17.8%, compared to $58.0 million in the prior year due to growth with mobile service providers and private network customers. International revenue of $52.6 million decreased by $4.8 million or 8.3%, compared to $57.3 million in the prior year due to timing of certain mobile network projects. For the twelve months ended July 3, 2026, total revenue increased by 1.2% to $439.7 million, compared to $434.6 million in the same period of fiscal 2025. North America revenue of $220.0 million increased by $12.4 million or 6.0%, compared to $207.6 million in the same period of fiscal 2025. International revenue of $219.7 million decreased by $7.4 million or 3.2% as compared to $227.0 million in the same period of fiscal 2025. Gross MarginsIn the fiscal 2026 fourth quarter, the Company reported GAAP gross margin of 30.8% and non-GAAP gross margin of 30.9%. This compares to GAAP gross margin of 34.2% and non-GAAP gross margin of 34.7% in the fiscal 2025 fourth quarter, a decrease of 340 and 380 basis points, respectively. The fluctuations were driven by product and customer mix. For the twelve months ended July 3, 2026, the Company reported GAAP gross margin of 31.5% and non-GAAP gross margin of 31.8%. This compares to GAAP gross margin of 32.1% and non-GAAP gross margin of 32.8% in the same period of fiscal 2025. Operating ExpensesThe Company reported GAAP total operating expenses of $31.4 million for the fiscal 2026 fourth quarter, compared to $30.6 million in the fiscal 2025 fourth quarter, an increase of $0.8 million or 2.7%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and litigation and other expenses for the fiscal 2026 fourth quarter were $27.3 million, compared to $27.1 million in the prior year, an increase of $0.2 million or 0.8%. For the twelve months ended July 3, 2026, the Company reported total operating expenses of $119.1 million, compared to $128.9 million in the same period of fiscal 2025, a decrease of $9.8 million or 7.6%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and litigation and other expenses for the twelve months ended July 3, 2026 were $109.2 million, as compared to $113.5 million in the same period of fiscal 2025, a decrease of $4.3 million or 3.8%. Operating IncomeThe Company reported GAAP operating income of $5.8 million for the fiscal 2026 fourth quarter, compared to $8.9 million in the fiscal 2025 fourth quarter, a decrease of $3.1 million or 34.4%. On a non-GAAP basis, the Company reported operating income of $10.0 million for the fiscal 2026 fourth quarter, compared to $12.9 million in the prior year, a decrease of $2.9 million or 22.7%. For the twelve months ended July 3, 2026, the Company reported GAAP operating income of $19.2 million, as compared to $10.6 million in the same period of fiscal 2025, an increase of $8.7 million or 81.9%. On a non-GAAP basis, the Company reported operating income of $30.6 million, compared to $29.0 million in the same period of fiscal 2025, an increase of $1.5 million or 5.2%. Income TaxesThe Company reported GAAP income tax expense of $6.2 million in the fiscal 2026 fourth quarter, compared to $5.0 million in the fiscal 2025 fourth quarter. For the twelve months ended July 3, 2026, the Company reported GAAP income tax expense of $10.7 million compared to $2.2 million in the same period of fiscal 2025. Net Income / Net Income Per ShareThe Company reported GAAP net loss of $1.3 million in the fiscal 2026 fourth quarter and GAAP net loss per share of $0.10. This compared to GAAP net income of $5.2 million or GAAP net income per share of $0.40 in the fiscal 2025 fourth quarter. On a non-GAAP basis, the Company reported net income of $8.3 million or non-GAAP net income per share of $0.64, compared to non-GAAP net income of $10.7 million or $0.83 per share in the prior year. The Company reported GAAP net income of $2.5 million for the twelve months ended July 3, 2026, or GAAP net income per fully diluted share of $0.19. This compared to GAAP net income of $1.3 million or $0.10 per share in the comparable fiscal 2025 period. On a non-GAAP basis, the Company reported net income of $21.6 million or net income per share of $1.66 for the twelve months ended July 3, 2026, as compared to non-GAAP net income of $21.4 million or $1.67 per share in the comparable fiscal 2025 period. Adjusted EBITDAAdjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2026 fourth quarter was $11.9 million, compared to $15.1 million in the fiscal 2025 fourth quarter. For the twelve months ended July 3, 2026, the Company reported Adjusted EBITDA of $36.7 million, as compared to $37.1 million in the comparable fiscal 2025 period. Balance Sheet HighlightsThe Company reported $72.8 million in cash and cash equivalents as of July 3, 2026, compared to $78.1 million as of March 27, 2026. As of July 3, 2026, total debt was $97.0 million. Fiscal 2027 Full Year GuidanceThe Company established its fiscal 2027 full year revenue and Adjusted EBITDA guidance as follows: Full year Revenue between $455 and $470 million Full year Adjusted EBITDA between $50 and $55 million Conference Call DetailsAviat Networks will host a conference call at 8:30 a.m. Eastern Time (ET) on August 27, 2026, to discuss its financial and operational results for the fiscal 2026 fourth quarter ended July 3, 2026. Participating on the call will be Peter Smith, President and Chief Executive Officer; Andy Schmidt, Senior Vice President and Chief Financial Officer; Jonanna Mikulenka, Vice President and Chief Accounting Officer; and Andrew Fredrickson, Vice President, Corporate Finance. Following management's remarks, there will be a question and answer period. Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website. About Aviat NetworksAviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn. Forward-Looking StatementsThe information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat's beliefs and expectations regarding outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2027, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, its ability to maintain effective internal control over financial reporting and management systems and remediate material weaknesses, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption that the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers' inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions. For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended July 3, 2026 filed with the SEC on August 27, 2026, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future. Investor Relations:Andrew FredricksonEmail: [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/aviat-networks-announces-fiscal-2026-fourth-quarter-and-twelve-months-financial-results-302861018.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a sixth consecutive year of revenue growth, driven by a strategic pivot toward mission-critical access and non-microwave product diversification. Secured a significant $25 million to $30 million order from a U.S. Tier 1 customer for multi-dwelling unit (MDU) applications, validating the company's expansion into high-growth segments. International growth was led by the EMEA region, which saw a 53% revenue increase in Q4 due to private network wins in defense and energy sectors. Management identified utility private networks as a critical growth vector, as power grid connectivity becomes a bottleneck for AI infrastructure deployment. Gross margins faced headwinds from abrupt component cost inflation in memory, PCBs, and FPGAs, prompting plans for customer price increases to offset these costs. Positioned low earth orbit (LEO) satellite technology as a complementary rather than competitive offering, providing redundancy for remote microwave and cellular sites. Fiscal 2027 revenue guidance of $455 million to $470 million assumes a back-half weighted profile, with Q1 serving as the lowest foundational quarter. The MDU project is expected to ramp significantly in the second quarter of fiscal 2027 as site readiness and component supply align with preferred vendor status. Guidance includes only a conservative, de minimis contribution from BEAD funding, with management expecting the first real tactical impact in the December quarter. Management anticipates gross margin improvement in the second half of fiscal 2027 as price increases take effect and supply chain volatility stabilizes. Strategic upside to guidance is tied to four levers: faster MDU subscriber growth, BEAD acceleration, private network share gains, and new Tier 1 international interest. Successfully remediated all five previously identified material weaknesses, strengthening the company's internal control environment. Utilized $2.2 million to repurchase approximately 131,000 shares, reflecting a commitment to capital allocation and shareholder value. Maintains over $420 million in net operating losses (NOLs), which management expects will minimize cash tax payments for the foreseeable future. Inventory and unbilled receivables both decreased sequentially, signaling improved balance sheet management and cash flow generation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management sized the total annual MDU market opportunity in the $100 million range, contingent on the customer's subscriber growth and Aviat's competitive share. The company has expanded its presence from early trials to approximately 25 markets, positioning itself as a preferred vendor for a U.S. Tier 1 operator. Management noted an improving pipeline of opportunities following a major European competitor's decision to exit the microwave business. Conversion of these networks typically takes 6 to 18 months, with potential revenue benefits expected to materialize in the March and June quarters. Current margin pressure is attributed to spot market volatility and price increases occurring after orders are placed. Aviat plans to implement price increases in the coming weeks, with the full benefit expected to be realized in the second half of fiscal 2027. Management confirmed that most of the $9 million in war-induced project delays from the previous quarter were recaptured in Q4. Operations with the affected customer base have returned to a steady state for both demand and supply.

Aviat Networks, Inc. (AVNW) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +28.00%. A quarter ago, it was expected that this company would post earnings of $0.42 per share when it actually produced earnings of $0.06, delivering a surprise of -85.71%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Aviat Networks, which belongs to the Zacks Wireless Equipment industry, posted revenues of $120.89 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 10.32%. This compares to year-ago revenues of $115.34 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Aviat Networks shares have lost about 2.2% since the beginning of the year versus the S&P 500's gain of 12.1%. While Aviat Networks has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Aviat Networks was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.52 on $108.07 million in revenues for the coming quarter and $2.82 on $469.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Computer and Technology sector, Ciena (CIEN), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This developer of high-speed networking technology is expected to post quarterly earnings of $1.73 per share in its upcoming report, which represents a year-over-year change of +158.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ciena's revenues are expected to be $1.64 billion, up 34.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Aviat Networks, Inc.? Here are five stocks we like better. Fiscal 2026 ended with solid growth: Fourth-quarter revenue rose 4.8% to $120.9 million, full-year revenue increased 1.2% to $439.7 million, and backlog climbed 14% to $367 million. North American sales and EMEA private-network activity were key contributors. Margins were pressured by supply costs: Fourth-quarter non-GAAP gross margin fell to 30.9% due to component shortages and inflation, although Aviat reduced operating expenses and ended the year with $72.8 million in cash and marketable securities. Management expects acceleration in fiscal 2027: Revenue is forecast at $455 million–$470 million and adjusted EBITDA at $50 million–$55 million, supported by a $25 million–$30 million MDU order, private-network opportunities and potential BEAD demand. Growth is expected to be weighted toward the second half of the year. 3 Telecom Infrastructure Stocks Signaling Big Gains Aviat Networks (NASDAQ:AVNW) reported fourth-quarter fiscal 2026 revenue growth, a higher year-end backlog and its sixth consecutive year of annual revenue growth, while management outlined fiscal 2027 guidance calling for accelerating revenue and adjusted EBITDA. Fourth-quarter revenue rose 4.8% year over year to $120.9 million, while full-year revenue increased 1.2% to $439.7 million. President and Chief Executive Officer Pete Smith said fiscal 2026 marked the first time in more than a decade that the company generated at least $100 million of revenue in each fiscal quarter. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch “This marks a strong end to Aviat’s fiscal 2026,” Smith said. The company ended the year with backlog of $367 million, up 14% from the end of fiscal 2025. North American revenue increased 17.8% to $68.3 million in the fourth quarter and represented 56.5% of consolidated sales. The quarter included a limited set of deployments for a North American multi-dwelling-unit, or MDU, project. International revenue totaled $52.6 million. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? For the full year, North American revenue rose 6% to $220 million, while international revenue declined to $219.6 million from $227 million in fiscal 2025. Smith said revenue in Europe, the Middle East and Africa increased 53% during the fourth quarter and 33% for the full fiscal year, driven in part by international private-network wins involving defense and energy customers. Fourth-quarter GAAP gross margin fell to 30.8% from 34.2% a year earlier, while non-GAAP gross margin declined to 30.9% from 34.7%. Chief Financial Officer Andy Schmidt said component shortages and associated price inflation weighed on the period’s margins. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding Aviat is particularly focused on securing supplies of memory, printed circuit boards, capacitors and field-programmable gate arrays, Smith said. The company is using approaches developed during the COVID-era supply-chain disruption to obtain supplier allocations and plans to pass component cost increases to customers. Fourth-quarter GAAP operating income was $5.8 million, compared with $8.9 million a year earlier. Non-GAAP operating income was $10 million, compared with $12.9 million in the prior-year quarter. The company reported a GAAP net loss of $1.3 million, or $0.10 per diluted share, alongside non-GAAP net income of $8.3 million, or $0.64 per diluted share. Adjusted EBITDA totaled $11.9 million, or 9.8% of revenue, for the quarter. Full-year adjusted EBITDA was $36.7 million. Aviat ended the quarter with $72.8 million in cash and marketable securities and $97 million of outstanding debt, resulting in net debt of $24.2 million. The company generated $13.6 million of operating cash flow during fiscal 2026. Schmidt said unbilled receivables declined for a third consecutive quarter, falling $3.1 million sequentially to $82.1 million. Inventory decreased $3.6 million from the prior quarter to $69 million. During the quarter, Aviat spent $2.2 million to repurchase approximately 131,000 shares at an average price of $16.55 per share. Schmidt also said the company had fully remediated its five previously disclosed material weaknesses in its control environment. For fiscal 2026, GAAP operating expenses declined by $9.8 million to $119.1 million, while non-GAAP operating expenses decreased $4.3 million to $109.2 million. Management attributed the reductions to cost management, reviews of corporate needs and process-efficiency efforts. Smith said Aviat’s expansion beyond its core microwave business into mission-critical access products has contributed to significant growth in non-microwave sales during fiscal 2026. The company is targeting private-network demand among public-safety and utility customers, including demand created by bandwidth-intensive applications such as drones and body cameras. The company expects its MDU opportunity to become a meaningful fiscal 2027 contributor. Aviat previously announced an order from an existing customer worth approximately $25 million to $30 million and expects all associated revenue to be recognized in fiscal 2027. Management expects the MDU deployment ramp to occur primarily in the fiscal second quarter, though Smith said some contribution could occur in the fiscal first quarter. He said the company has completed additional proof-of-concept work and believes it has become the preferred vendor with the customer. Smith described the total annual MDU market opportunity as being “in the $100 million neighborhood,” contingent on subscriber growth and Aviat’s share against competitors. He said Aviat is operating in or slated to enter approximately 25 markets, compared with a smaller number of markets previously. Aviat also sees low-Earth-orbit satellite connectivity as complementary to its offerings rather than a direct threat. Smith said the company is working with customers on trials combining satellite services with microwave and cellular-router solutions to provide backup connectivity at remote locations and automatic failover where LTE or 5G coverage is unavailable. However, he said no low-Earth-orbit revenue is included in fiscal 2027 guidance. Aviat forecast fiscal 2027 revenue of $455 million to $470 million and adjusted EBITDA of $50 million to $55 million. Management expects the first fiscal quarter to be the year’s lowest revenue quarter, with revenue increasing thereafter and the second half exceeding the first half. Andrew Fredrickson, vice president of corporate finance, said investors could model revenue seasonality at roughly 45% in the first half and 55% in the second half, somewhat more back-half weighted than historical patterns. Schmidt said first-quarter gross margin will be affected by lower revenue volume, but the company expects its pricing and supply-chain actions to create more upward pressure on gross margin beginning in the second quarter. He characterized mid-30% gross-margin expectations for the second half as “aspirational,” noting MDU business is expected to carry a more middle-of-the-product-strategy margin profile. Management said the guidance includes only a small, conservative amount of revenue tied to the Broadband Equity, Access, and Deployment program. Smith said Aviat has customer quotes outstanding and expects the first material BEAD revenue impact in the December quarter, while continuing to view the program as a multiyear opportunity. Potential factors that could move revenue toward the high end of guidance include greater MDU subscriber growth and share gains, stronger BEAD activity, private-network wins, adoption of Aprisa and LTE router offerings, and increased interest from global tier-one customers, Smith said. Aviat Networks, Inc is a specialist in wireless transport solutions, designing, manufacturing and selling microwave networking products that enable the secure and reliable transmission of data, voice and video. The company's offerings address mission-critical communications needs for a broad range of end markets, including telecommunications service providers, utilities, government agencies and enterprises. Its product portfolio spans high-capacity packet microwave radios, IP transport systems and network management software. Aviat's core product lines include the WTM series of packet microwave platforms, which deliver scalable throughput and advanced resilience features, and the Eclipse packet microwave systems, which combine broadband capacity with synchronization, security and quality-of-service capabilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Aviat Networks Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

AUSTIN, Texas, Aug. 26, 2026 /PRNewswire/ -- Aviat Networks, Inc. (NASDAQ: AVNW), the leading expert in wireless transport and access solutions, announced today that it will release its fourth quarter fiscal 2026 financial results for the period ended July 3, 2026, on August 27, 2026, after the market closes. The Company will host an earnings conference call and webcast to discuss its financial and operational results on the same day, beginning at 8:30 a.m. ET. Participating on the call will be Pete Smith, President and Chief Executive Officer, Andy Schmidt, Senior Vice President and Chief Financial Officer, and Jonanna Mikulenka, Vice President and Chief Accounting Officer. Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at https://investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website. The Company also announced that it will participate in the following upcoming investor conferences. Lake Street 10th Annual Best Ideas Growth Conference to be held in New York, NY on September 10, 2026 Investors interested in scheduling a meeting with the company should contact their representative at the respective institutions. All presentations and supplemental materials will be available under the Investor Relations section of Aviat's website following the event. About Aviat Networks, Inc. Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn. Investor Contact Andrew Fredrickson [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/aviat-networks-sets-date-for-its-fiscal-2026-fourth-quarter-financial-results-conference-call-and-announces-participation-in-upcoming-investor-conferences-302859812.html

Lantronix, Inc. (LTRX) came out with quarterly earnings of $0.04 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.04, delivering a surprise of -20%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Lantronix, which belongs to the Zacks Computer - Networking industry, posted revenues of $31.15 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.50%. This compares to year-ago revenues of $28.84 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lantronix shares have not added anything since the beginning of the year versus the S&P 500's gain of 12.2%. While Lantronix has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lantronix was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $32 million in revenues for the coming quarter and $0.29 on $138.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Networking is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Aviat Networks, Inc. (AVNW), another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -39.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aviat Networks, Inc.'s revenues are expected to be $109.58 million, down 5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lantronix, Inc. (LTRX) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, November 4, 2025 at 12 a.m. ET President and Chief Executive Officer — Peter Smith Chief Financial Officer — Andrew Fredrickson Andrew Fredrickson: Thank you, and welcome to Aviat Networks First Quarter Fiscal 2026 Results Conference Call and Webcast. You can find our press release and updated investor presentation in the IR section of our website at www.aviatnetworks.com, 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 myself to review the financial results for the quarter. Pete will then provide closing remarks on Aviat's strategy and outlook, followed by Q&A. As a reminder, during today's call and webcast, management may make forward-looking statements regarding Aviat's business, including, but not limited to, statements relating to fiscal guidance, financial projections, business drivers, new products and expansions and economic activity in different regions. These and other forward-looking statements reflect the company's opinions only as of the date of this call and webcast and involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements. Additional information on factors that could cause actual results to differ materially from the statements expressed or implied on this call can be found in our most annual report on Form 10-K filed with the SEC. The company undertakes no obligation to revise or make public any revision of these forward-looking statements in light of new information or future events. Additionally, during today's call and webcast, management will reference both GAAP and non-GAAP financial measures. Please refer to our press release, which is available in the IR section of our website at www.aviatnetworks.com and financial tables therein, which include a GAAP to non-GAAP reconciliation and other supplemental financial information. At this time, I would now like to turn the call over to Aviat's President and CEO, Pete Smith. Pete? Peter Smith: Thanks, Andrew, and good afternoon. Let's review the highlights from the first quarter. Total revenues of $107.3 million, up 21.4% versus the year ago period. Non-GAAP gross margin of 33.8%, adjusted EBITDA of $9.1 million, non-GAAP EPS of $0.43. These quarterly results represent a good start for Aviat in achieving our goals for fiscal 2026 and are a good return to performance versus our year ago Q1. I'd like to thank all of Aviat's employees, partners and customers for playing a part in this quarter. Let's discuss our end markets and key developments. Private networks remain a core area of focus for Aviat Networks. In the first quarter, we secured a number of meaningful project bookings across public safety and utility networks. The strong state and local government budgets continue to set the stage for a good fiscal 2026 environment for our private network opportunities. In the utility vertical, we continue to grow our funnel by pursuing the cross-selling opportunities from the 4RF Aprisa acquisition. These efforts and our end-to-end portfolio and turnkey solutions have resulted in a number of meaningful bookings with utilities, including one large multistate and multiphase network modernization project worth approximately $8 million. We expect to have more large wins in this segment, thanks to our unique product offering, which includes our access and router solutions, our backhaul radios such as our IRU 600 ultra-high power microwave radio and our ProVision Plus and frequency and health assurance software, all combined to offer utilities and other private network operators leading performance and lowest total cost of ownership. I am also pleased to announce the launch of our Aprisa LTE 5G router solution for police, fire and emergency vehicles. Public safety has long been our leading segment within private networks, and this is a major step in expanding our solutions offering for these customers. This solution addresses a critical segment of this market that is entirely new to Aviat. The global cellular router and gateway market is expected to grow at a 12% annual rate and reach $2.8 billion in annual revenues by 2028. This growth is driven by the increasing demand in applications like real-time data sharing and video streaming and GPS tracking across a wide range of connected devices, including mobile data terminals, body-worn cameras, sensors and surveillance systems and vehicles of all kinds. This solution is made in the U.S.A., is available now and supports all major frequency bands, including FirstNet and is certified by all the major carriers in the U.S. and many international carriers. Please reference Slide 9 in our investor deck for more information on this opportunity for Aviat. As part of this product rollout, we have also enabled our ProVision Plus software to help simplify the complexity inherent with 5G networking for public safety mobility applications that also provide carrier coverage visibility and vehicle tracking to increase productivity, reduce downtime and minimize security risks, all while lowering operating costs. The introduction of this offering is also significant as it builds on the technology acquired in the 4RF acquisition and validates our ability to not only identify and acquire the right technology, but to successfully integrate it, build upon it and leverage it to create new high-value solutions for our target markets. We're excited to see where this offering goes. Before moving on to our mobile service provider business, let's briefly address the U.S. federal government shutdown and its impact on Aviat. Roughly 5% of our business is with the federal government. So from that perspective, we do not anticipate a large impact. We saw some small opportunities where the timing was accelerated to beat the shutdown in Q1, and we also anticipate that some opportunities will be pushed out until after the shutdown is over. Most likely, this will mean some revenues are pushed out of our fiscal second quarter, but that they will come back in the third quarter. If the shutdown extends a significant amount of time, its impact to our business will become harder to predict. At this time, though, we do not believe that the shutdown will have a significant impact on Aviat's FY '26 business. In regards to our mobile service provider market, we continue to gain traction both in North America and globally. The operating environment continues to strengthen for Aviat versus a year ago, and we remain positive on the setup for fiscal 2026. In North America, we continue to make good strides with our Tier 1s. In regards to BEAD, we continue to see fixed wireless access and other wireless solutions as growing beneficiaries of the program. We believe wireless makes the most sense for the performance per dollar and the speed to deploy. We still anticipate that Aviat will not see any benefit from BEAD until calendar 2026, likely in the back half of the year. I would now like to turn the call over to Andrew to review the financial results of the quarter before coming back for closing remarks. Andrew Fredrickson: Thanks, Pete. I'll review some of the key fiscal 2026 first quarter results. Please note that our detailed financials can be found in our press release and all comparisons discussed are between the first quarter of fiscal year 2026 and the first quarter of fiscal year 2025, unless otherwise noted. For the first quarter, we reported total revenues of $107.3 million as compared with $88.4 million for the same period last year, an increase of $18.9 million or 21.4% year-over-year. North America, which comprised 49.1% of our total revenues for the quarter was $52.6 million, an increase of $10.4 million or 24.7% from the same period last year due to growth both in private networks and mobile network operators. International revenues were $54.7 million for the quarter, an increase of $8.5 million or 18.3% from the same period last year. This was driven by increased mobile network operator business versus a year ago and growing private network demand. Gross margins in the first quarter were 33.2% on a GAAP basis and 33.8% on a non-GAAP basis. This compares to 22.4% GAAP and 23.2% non-GAAP in the prior year. The change in gross margin is primarily due to regional and product mix in the quarter in addition to higher volumes in this quarter as compared to a year ago. First quarter GAAP operating expenses were $30.5 million, down versus $35.4 million in the year ago period. Non-GAAP operating expenses, which exclude the impact of restructuring charges, share-based compensation and deal costs were $28.4 million, a decrease of $1.7 million versus the prior year. This decrease is due to disciplined cost management and increased efficiencies at Aviat. First quarter operating income was $5.2 million on a GAAP basis and $7.9 million on a non-GAAP basis. This compares to a $15.6 million GAAP loss and a $9.5 million non-GAAP loss in the year ago period. The first quarter tax provision was $2.3 million. As a reminder, the company has over $450 million of net operating losses or NOLs that will continue to generate shareholder value via minimal cash tax payments for the foreseeable future. First quarter GAAP net income was $0.2 million and non-GAAP net income, which excludes restructuring charges, share-based compensation, M&A-related and other nonrecurring expenses and the noncash tax provision was $5.5 million. First quarter non-GAAP EPS came in at $0.43 on a fully diluted basis, up by $1.30 versus the year ago period. Adjusted EBITDA for the first quarter was $9.1 million or 8.5% of revenues, an increase of $16.8 million versus last year. Moving on to the balance sheet. Our cash and marketable securities at the end of the first quarter were $64.8 million. Our outstanding debt was $106.5 million, bringing our net debt position to $41.7 million. With that, I'll turn it back to Pete for some final comments. Pete? Peter Smith: Thanks, Andrew. We are pleased with the start of fiscal 2026 and look forward to continuing to execute our strategy to capture additional share of wallet in private networks and win more share of demand within mobile networks. We are maintaining our annual fiscal 2026 guidance unchanged at full year revenues to be in the range of $440 million to $460 million, full year adjusted EBITDA to be in the range of $45 million to $55 million. With that, operator, let's open up for questions. Operator: [Operator Instructions]. Our first question comes from the line of Scott Searle from ROTH Capital Partners. Scott Searle: Nice job on the quarter, Pete, Andrew. Just real quickly, I know you're not updating or expanding guidance in terms of the fiscal year given the current macro environment, and we're only in the first fiscal quarter. But I'm wondering if you can comment on the sequential outlook as we're going into December. I would assume there's some seasonal uptick there. And along those lines, where are you expecting the strength to come from? Is it from Tier 1 North American providers? Is it private networks? Or are you seeing something going on from an international standpoint? Andrew Fredrickson: Yes. I think U.S. public safety is perhaps the strongest, and that's going to give us a quarter-over-quarter lift. So we feel -- Scott, we feel good about that. We also want to be cautious that it is early in the year and the government shutdown, while it's a small part of our business, we just want to be conservative, and that's why in our remarks, we feel increasingly confident about FY '26. We just don't want to get over our skis on the December quarter. That's -- I mean, so we could start the dialogue about Pete and Andrew are conservative. We will take that criticism. But we see significant strength right now in U.S. private networks, principally driven by public safety. Scott Searle: Okay. Fair enough. And then just in terms of some of the specific growth categories, 4RF is something you guys have started to talk about more recently have seen some strength there. You've identified public safety. I'm wondering how big this opportunity could be as you start to think about where we could be if you look out several quarters from a 4RF standpoint. And I'm not sure if I heard any update on MDUs in your opening remarks. I'm wondering if you could give us some updated thoughts in terms of what you're seeing there and if that opportunity is expanding beyond the Tier 1 that you were dealing with. Andrew Fredrickson: You're asking all the questions, Scott. So with respect to the MDU, we've demonstrated all that you could ask with respect to our 28 gigahertz and 39 gigahertz performance. We've demonstrated carrier-grade serviceability. We've demonstrated the MU MIMO. We've had customer links going for almost 2 years, right? We are focused on Tier 1s with this. We're not prepared to give an update on news. But with respect to -- we're not ready to kind of go the next step on the news, but we are making great progress with our customer base, and we feel very confident about our prospects for the future. So that's what I would say about the MDU. I would -- this wasn't a question, but I would also say that in learning about the MDU market, it's aligned with fixed wireless access, which is the fastest-growing segment in all of wireless. And we've started to unlock additional technology sets that will serve us for a couple of years as we explore opportunities outside of our core microwave business into adjacencies. So there's learning that has occurred that will benefit us say it's not in a model, but a couple of years from now, we think that this is a good development for the medium- to long-term future. And then you started to ask about 4RF. And we see good traction in -- I'll go back a couple -- I mean, maybe a year ago. When we looked at their small customer base versus our customer base, -- we're both strong in utilities. And then there was only 11% overlap between their customer base and our customer base. So in terms of an acquisition, the customer or channel synergy is tremendous, and we've owned it for a year and 5 months, and we're starting to see the traction in selling microwave to the historical 4RF customers and vice versa, the 4RF solution into the Aviat utility base, which I would say, if you think about Aviat, our best customers are public safety, our second best customers and channel strength is in utilities. So we're excited about that. Operator: Our next question comes from the line of Jaeson Schmidt from Lake Street. Jaeson Schmidt: Just curious if you could discuss what you're seeing in India and sort of what you're baking in from that region into this kind of fiscal '26 outlook? Andrew Fredrickson: Sure, Jaeson. So I'll take a first answer on that one. So this quarter, we did have a good mix of revenue from India in the quarter, and the margins were relatively favorable there as well. So from that standpoint, this quarter, it was a good mix and result for us. I'd say in terms of the overall fiscal year, last year, India was, call it, a mid-single-digit contributor as a country overall on a percentage basis to our revenues. I would expect them to be relatively the same this year. That being said, we have good customer diversification, both from a geographic and individual customer standpoint. And so we're not thinking about India as being kind of a single driver within our overall business. Peter Smith: And Jaeson, I would add that I think that there is an upgrade cycle to come in India. I don't think it will be this in our -- the Aviat fiscal year, but I think it could be a growth driver for -- from July through June and our fiscal year '27. So I agree 100% with what Andrew said. And if you want to look out further, I could see India being -- the India upgrade or replacement cycle having an impact, say, a year from now and beyond. Jaeson Schmidt: Okay. That's really helpful. And then just as a follow-up, when we look at gross margin for fiscal '26, is it fair to expect you guys to be able to kind of grow gross margin sequentially throughout the year? Andrew Fredrickson: Yes. So this quarter, gross margins were up, especially versus the year ago period, mainly due to overall volumes globally. In terms of looking out for all of fiscal '26, I would say there's some opportunity to grow margins by a percentage point or 2, I'd say, is the most likely outcome. I don't know that it would be kind of sequential. But by the end of the year, I think you could expect us to be kind of at that mid-30s percent. Operator: Our next question comes from the line of Rustam Kanga from Citizens. Rustam Kanga: Nice print here. Just one question on the Aprisa Router. Could you just kind of speak to the opportunity there from a competitive displacement standpoint versus your #1 competitor and some of the smaller players there and kind of how you're thinking about that opportunity? Andrew Fredrickson: Yes. So just to go back to the -- what we call the mobile cellular router opportunity, it's a $2.8 billion market growing at 12%. And we would say the incumbent is principally what Ericsson owns via their Cradlepoint acquisition. Telefonica can be there. You can also think about Semtech. Out of that $2.8 billion, we think we're ready to engage $800 million of that opportunity. We have $0 today. And why -- so why are we talking about this when we haven't done $1 of revenue? It's because this offering is the combination of 4RF, our Aviat's kind of hardware and software platform and our #1 market channel in public safety. And we basically engaged approximately 10 state police or large municipal government police departments. There's no friction. There's a lot of interest in our solution. It will take probably another 6 months, but we think that this is going to be a big growth driver towards the end of this fiscal year going into next fiscal year. And we think we're super excited about it. Rustam Kanga: Awesome. Great to hear. And then just wanted to touch on federal. I appreciate the 5% of the business metric there. Just curious if you could just help us quantify or maybe ring-fence the magnitude of sort of the accelerated pull-ins and then how much is sort of baked into the guide for Q2 that you said might push into Q3, just how to sort of think of that as a relative mix perspective? Andrew Fredrickson: I mean worst case for this quarter, maybe 1% pull in. It's really hard to judge. Worst-case push out, and I don't think it will be this bad would be 4% to 5%. And look, I don't want to get trapped in this guidance because if the government opens tomorrow, then we'll have a mad dash to get stuff out because the customer base is going to really want this done. So to be conservative, let's say, the government shutdown doesn't get restored until January, then we have to be a little more conservative. If it opens up tomorrow, then it's not as bad. I know that, that doesn't -- this is one of the reasons we guide on an annual basis. And I know when you put your forecast out, this doesn't help, but I want to be -- say where we're at. Sorry, I couldn't be more definitive. Operator: Our next question comes from the line of Theodore O'Neill from Litchfield Hills Research. Theodore O'Neill: Congratulations on the good quarter. Pete, on the Slide 9 here about the cellular routing solution for public safety. I'm just wondering what's the driver here? Do they -- do these vehicles not have routers? Or do they need some -- an updated router? I'm wondering if you could just fill me in on that. Peter Smith: All right. So a lot of the vehicles, actually, I think most, if not all, the vehicles have routers in them. And what has transpired is there's some dissatisfaction with the incumbents on their price point and their OpEx business model. And then further, we have deep customer intimacy from our public safety microwave networks. We're a trusted provider. We hypothesized that this was going to be interesting for Aviat's growth. And based on the -- our 10 chosen customers' engagement, we see dissatisfaction with some of the functionality, some of the business model with the incumbent, and we have the hardware, the software and perhaps most importantly, the channel and the customer relationships. So that's what I would say. Theodore O'Neill: That makes sense. So you're already the incumbent provider for other parts of the network. So it just -- it makes it an easy sell. Peter Smith: Yes. And to be kind of maybe overly specific, the procurement person for the microwave public safety network typically is a couple of doors down from the person that's responsible for the technology that goes into the emergency vehicle or the... Theodore O'Neill: Yes. Okay. And my other question is about the multi-dwelling unit fixed wireless broadband. So Verizon acquired Starry Group Holdings, so they could go after that market. And I was wondering what that acquisition means for Aviat, if anything? Peter Smith: Two, I think, first, it validates our effort in the multi-dwelling unit space. If a company like Verizon is going to spend on what we believe to be channel access, we think that, that bodes well for the growth of hardware and software in the MDU space. Also, we did look at the Starry assets. We didn't look at it from a channel perspective, but we looked at it from a hardware perspective. And what I could say is we're a couple of generations ahead of where Starry left off. Operator: Our next question comes from the line of Egor Tolmachev from Freedom Bank Broker. Egor Tolmachev: Could you please share a quick update on BEAD program progress you see among your clients and maybe how it will impact your business? Peter Smith: BEAD. Okay. So on BEAD, we've been super conservative all along with respect to BEAD. And last earnings call, I was a bit more bullish. And the reason we are bullish is now our customers are talking to us specifically about BEAD funding and BEAD deployments. So we are getting significantly more encouraged about BEAD. We see some specifics that there's growing non-fiber support. So Utah and Arizona have quantified the maximum they're willing to pay for a fiber connection, which means that -- so their number in Utah and Arizona, they limited to, I think, less than 15,000. That could swing 40% of the connections to be non-fiber-based. New Mexico is proposing 40% for fixed wireless, which will drive microwave backhaul. Washington is at 39%. And Kansas proposed 50% of locations to be served by hybrid and fixed wireless access. So we think all of these developments and our customer engagement bode well for us capturing some of the BEAD and BEAD funding. And the question we have is, will that be in the March, June or the September quarter? We don't know. But as we get nearer to landing some of those -- or our customers get nearer to deploying some of the BEAD money, we will circle back and update you on our progress and what it might mean for revenue growth going forward. Egor Tolmachev: And maybe a quick follow-up on your Intercom telecom partnership. Can you maybe provide some quantitative estimates or timing of -- for this partnership? Peter Smith: The partnership is ongoing. So it's established and it's working. And yes, I think that's about all I could say about the partnership. So thank you. Operator: This concludes the question-and-answer session. I would now like to turn it back to Pete for closing remarks. Peter Smith: Thanks, everyone, for joining. I have a few things to point out. We basically lapped the year ago poor performance. Now our adjusted EBITDA is at a level of $54 million. Independent of the cellular router opportunity, we see the public safety market remaining attractive. In the Q&A session, we poked at the MDU, which we see as an emerging market and gets Aviat firmly into fixed wireless access, which would be good. The mobile cellular router is an attractive segment. We see BEAD incrementally moving forward. So with all that, thanks for calling in, and we look forward to updating you on progress in 90 days. Operator: Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect. Before you buy stock in Aviat Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aviat Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Aviat (AVNW) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Aviat Networks, Inc. (AVNW) came out with quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -85.63%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.54, delivering a surprise of +12.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Aviat Networks, which belongs to the Zacks Wireless Equipment industry, posted revenues of $100 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.35%. This compares to year-ago revenues of $112.64 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Aviat Networks shares have added about 8.1% since the beginning of the year versus the S&P 500's gain of 5.6%. While Aviat Networks has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Aviat Networks was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.97 on $124.23 million in revenues for the coming quarter and $2.35 on $448.67 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Ubiquiti Inc. (UI), is yet to report results for the quarter ended March 2026. This computer networking company is expected to post quarterly earnings of $3.18 per share in its upcoming report, which represents a year-over-year change of +6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ubiquiti Inc.'s revenues are expected to be $785.13 million, up 18.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Ubiquiti Inc. (UI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research