UPDATE: Aviat Networks (AVNW) Reports Q2 EPS of $0.54 on Revenues of $65.1M; Offers FY19 Revenue Guidance & Provides Fiscal Second Half Outlook
Aviat Networks (NASDAQ: AVNW) reported Q2 EPS of $0.54, versus $0.53 reported last year. Revenue for the quarter came in at $65.1 million, versus $61.7 million reported last year.
"We had a very strong second quarter, with revenue and Adjusted EBITDA coming in at the high-end of our most recent guidance. Bookings were exceptionally strong and through the first half of the year, our book to bill was above 1 and our backlog continued to build," stated Michael Pangia, President and Chief Executive Officer of Aviat Networks. "Our business is tracking to plan, and we anticipate continued momentum throughout this fiscal year. While there can always be project delays or macro-economic issues that impact quarterly results, we have increased confidence in our ability to meet our top- and bottom-line objectives this fiscal year."
Fiscal 2019 Second Half Outlook
- The Company expects revenue in the second half of fiscal 2019 to be in the range of $125.0 million - $130.0 million, which would result in total revenue of ~$250.0 million to $255.0 million in fiscal 2019 or growth of ~3.1% to 5.2%. The Company noted that fiscal fourth quarter revenues are anticipated to be higher than the fiscal third quarter, primarily driven by the international market.
- Non-GAAP gross margins in the second half of fiscal 2019 are anticipated to be 34.0% - 35.0%, dependent on revenue mix in the second half of the fiscal year. We anticipate non-GAAP gross margin to be modestly better in the fourth quarter, compared to the third quarter, primarily due to higher volume. This would result in non-GAAP gross margin of ~33% in fiscal 2019, with both the third and fourth fiscal quarters anticipated to be within the projected range.
- Non-GAAP operating expenses in the second half of fiscal 2019 are anticipated to be in the range of $38.0 million - $39.0 million, with the higher end of the range dependent upon achieving anticipated top- and bottom-line results. The Company expects its quarterly run rate in the second half of fiscal 2019 for non-GAAP operating expenses to be ~$19.0 million, with increases to this amount based on investments in growth-related areas. This would result in total operating expenses of $75.5 million to $76.5 million for fiscal 2019.
- Based on the above, we anticipate non-GAAP operating income of approximately $7.5 million to $8.0 million and Adjusted EBITDA of approximately $12.5 million to $13.0 million, slightly above the Company's prior guidance.
- The Company reiterated its prior comments with respect to working capital and its balance sheet and still expects to finish the year with an improvement in its cash position.
GUIDANCE:
Aviat Networks sees FY2019 revenue of $250-255 million.
For earnings history and earnings-related data on Aviat Networks (AVNW) click here.