Aviat Networks (AVNW) Misses Q2 EPS, Revs
Aviat Networks (NASDAQ: AVNW) reported Q2 EPS of ($0.17), $0.68 worse than the analyst estimate of $0.51. Revenue for the quarter came in at $56 million versus the consensus estimate of $57.77 million.
Pete Smith, Aviat Networks' President and Chief Executive Officer stated, \"As we announced on January 22nd, our fiscal 2020 second quarter results were adversely impacted by a cyberattack at one of our contract manufacturing vendors, which constrained capacity by approximately three weeks and led to lower than expected results. However, the issue has been fully remediated, our competitive position continues to improve, and our outlook remains largely intact."
Mr. Smith continued, "Through the first half of fiscal 2020, North America revenue is up over 17% and orders even more so given the momentum we have and continue to build. We are laser-focused on supporting our customers, creating new opportunities across multiple vertical segments and we believe market dynamics are becoming more favorable for our solutions. Internationally, we knew revenue would be impacted by the spending environment in Africa, which was the case, though we are anticipating an increase in orders in the second half of the year based on conversations with customers and a strong start to the fiscal 2020 third quarter. The APAC region is what really drove international revenue down year-over-year, though it\'s important to note the strength we had in fiscal 2019, and the new 5G-related business that we have been awarded. This should favorably impact our results towards the end of fiscal 2020 and in the years that follow. For the full fiscal year, we still anticipate a modest decline in revenue, stronger gross margins, an increase in profitability, and ongoing improvements in our cash position and balance sheet. Even with the cyber attack\'s impact on our first-half results, we believe we are in position to deliver $11 million to $12 million of Adjusted EBITDA."
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