Worth Watching Stock for Traders: Aviat Networks Inc (NASDAQ: AVNW)

Aviat Networks Inc (NASDAQ: AVNW) stock recorded daily change of -2.1% to close at $20.55 with the total traded volume of 52603 shares along average volume of 33578 shares. 52-week range of the stock remained $ 7.1 – 22.49 while its day low price was $20 and its hit its day high price at $21.02. Its previous closing value stands at $20.99.

viat Networks, Inc. (AVNW) recently stated financial results for its fiscal 2020 fourth quarter and twelve months ended July 3, 2020.

Pete Smith, Aviat Networks’ President and Chief Executive Officer stated, “Despite COVID-19, we achieved an yearly Adjusted EBITDA of $13.5M, which exceeded the top end of our Adjusted EBITDA guidance of $11-$12M, and increased over 50% from $8.8M for fiscal 2019.  I want to extend my appreciation to our consumers, suppliers and employees who helped us achieved such strong financial results during this challenging time.”

Fiscal 2020 Fourth Quarter and Twelve-Month Comparisons

The Company stated total revenues of $62.7M for its fiscal 2020 fourth quarter, contrast to $64.2M in the comparable fiscal 2019 period, a decrease of $(1.6M) or (2.5%).  North America revenue of $38.2M reduced by $(1.0M) or (2.6%), contrast to $39.2M in the comparable fiscal 2019 period.  International revenue of $24.4M declined by $(0.6M) or (2.3%), contrast to $25.0M in the comparable fiscal 2019 period.  The decline in international revenue was anticipated given the current lower spending environment in Africa, as well as high order volumes in the APAC region in the previous fiscal year period.

For the twelve months ended July 3, 2020, the Company stated total revenues of $238.6M, contrast to $243.9M in the comparable fiscal 2019 period, a decline of $(5.2M) or (2.1%).  North America revenue of $151.7M increased by $18.8M or 14.2%, contrast to $132.9M in the comparable fiscal 2019 period.  International revenue of $86.9M declined by $(24.0M) or (21.7%), contrast to $111.0M in the comparable fiscal 2019 period.

In the fiscal 2020 fourth quarter, the Company stated both GAAP and non-GAAP gross margin of 34.9%.  This compares to GAAP gross margin of 35.2% and non-GAAP gross margin of 35.1% in the comparable fiscal 2019 period.

For the twelve months ended July 3, 2020, the Company stated GAAP gross margin of 35.5% and non-GAAP gross margin of 35.6%.  This compares to GAAP gross margin of 32.5% and non-GAAP gross margin of 32.5% in the comparable fiscal 2019 period, an improvement of 300 and 310 basis points, respectively.

GAAP total operating expenses for the fiscal 2020 fourth quarter were $19.7M, contrast to $20.1M in the comparable fiscal 2019 period, a decrease of $(0.4)M or (1.8%). Non-GAAP total operating expenses, not including the impact of restructuring charges and share-based compensation, for the fiscal 2020 fourth quarter were $17.5M, contrast to $19.8M in the comparable fiscal 2019 period, a decrease of $(2.2)M or (11.3%).  Non-GAAP operating expenses reduced primarily related to cost-cutting measures implemented in fiscal 2020.

For the twelve months ended July 3, 2020, the Company stated GAAP total operating expenses of $81.3M, contrast to $77.9M in the comparable fiscal 2019 period, a raise of $3.4M or 4.4%.  On a non-GAAP basis, not including the impact of restructuring charges and share-based compensation, total operating expenses for the twelve months ended July 3, 2020 were $75.8M, contrast to $75.0M in the fiscal 2019 period, a raise of $0.7M or 1.0%. Non-GAAP operating expenses increased primarily Because of fiscal 2020 containing an extra week.

The Company stated GAAP operating income of $2.1M for the fiscal 2020 fourth quarter, contrast to a GAAP operating income of $2.5M in the comparable fiscal 2019 period, a $(0.4)M year-over-year decline.  On a non-GAAP basis, the Company stated operating income of $4.4M for the fiscal 2020 fourth quarter, contrast to a non-GAAP operating income of $2.8M in the comparable fiscal 2019 period, a $1.6M year-over-year increase.

For the twelve months ended July 3, 2020, the Company stated $3.4M in GAAP operating income, contrast to a GAAP operating income of $1.4M in the comparable fiscal 2019 period, a $2.0M year-over-year improvement.  On a non-GAAP basis, the Company stated operating income of $9.1M for the twelve months ended July 3, 2020, contrast to $4.3M in the comparable fiscal 2019 period, a $4.8M year-over-year improvement.

The Company stated GAAP net income of $1.1M in the fiscal 2020 fourth quarter or GAAP net income per share of $0.21.  This contrast to a GAAP net income of $3.8M or GAAP net income per share of $0.69 in the fiscal 2019 fourth quarter.  On a non-GAAP basis, the Company stated net income of $4.1M or a non-GAAP net income per share of $0.75, contrast to a non-GAAP net income of $2.6M or non-GAAP net income per share of $0.47 in the comparable fiscal 2019 period.

For the twelve months ended July 3, 2020, the Company stated GAAP net income of $0.3M or a GAAP net income per share of $0.05.  This contrast to GAAP net income of $9.7M or a GAAP net income per share of $1.73 in the comparable fiscal 2019 period.  On a non-GAAP basis, for the twelve months ended July 3, 2020, the Company stated net income of $8.2M or a net income per share of $1.51, contrast to non-GAAP net income of $3.2M or $0.58 per share in the comparable fiscal 2019 period.

Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) for the fiscal 2020 fourth quarter was $5.5M, contrast to $3.9M in the comparable fiscal 2019 period, a year-over-year increase of about $1.6M.  For the twelve months ended July 3, 2020, the Company stated Adjusted EBITDA of $13.5M, contrast to $8.8M in the comparable fiscal 2019 period, a year-over-year increase of about $4.8M.

The Company stated cash and cash equivalents as of July 3, 2020 of $41.6M, contrast to $31.9M as of June 28, 2019, a raise of $9.7M.  Sequentially, cash and cash equivalents increased by about $2.4M, contrast to the fiscal 2020 third quarter ended April 3, 2020.

Its earnings per share (EPS) expected to touch remained -13.90% for this year while earning per share for the next 5-years is expected to reach at 12.00%.  The company has 5.39M of outstanding shares and 106.24M shares were floated in the market. The price moved ahead of 0.13% from the mean of 20 days, 1.35% from mean of 50 days SMA and performed 41.87% from mean of 200 days price.

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