Aviat Networks — Fiscal 2027 First Quarter Earnings Summary

Financial Performance:

• Total revenues were $102.0 million, a 5.0% decrease from $107.3 million in the prior year period.
• GAAP gross margin was 29.6%, down from 33.2% in the prior year; non-GAAP gross margin was also 29.6%, down from 33.8%.
• GAAP operating income was $0.9 million, compared to $5.2 million in the prior year.
• Non-GAAP operating income was $3.9 million, compared to $7.9 million in the prior year.
• GAAP net loss was $2.8 million ($0.22 per diluted share), compared to GAAP net income of $0.2 million ($0.01 per share) in the prior year.
• Non-GAAP net income was $1.5 million ($0.12 per share), compared to non-GAAP net income of $5.5 million ($0.43 per share) in the prior year.
• Adjusted EBITDA was $6.0 million, down from $9.1 million in the prior year.
• GAAP operating expenses were $29.3 million; non-GAAP operating expenses were $26.2 million, a 7.5% decrease from $28.4 million in the prior year.
• Cash and cash equivalents were $55.4 million as of October 2, 2026, down from $72.8 million as of July 3, 2026.
• Total debt was $85.9 million, down $11.1 million from $97.0 million (implied from $85.9M + $11.1M decrease) as of July 3, 2026; net debt was $30.5 million.

Guidance and Future Outlook:

• Updated fiscal 2027 full-year revenue guidance to a range of $450 million to $475 million.
• Updated fiscal 2027 full-year Adjusted EBITDA guidance to a range of $50.0 million to $55.0 million.

Business Segments and Product Lines:

• North America revenue was $49.2 million, a 6.5% decrease from $52.6 million in the prior year, driven by timing of private and mobile network projects.
• International revenue was $52.7 million, a 3.5% decrease from $54.7 million in the prior year, primarily due to timing of capital expenditure plans of mobile network operators.
• Record first-quarter bookings exceeded $150 million, up 75% year-over-year, resulting in a book-to-bill ratio greater than 1.5.
• Aprisa bookings grew 61% compared to the prior year period, signaling momentum with North American utility companies.

Market and Competitive Landscape:

• The decrease in gross margin was driven by regional and product mix in the quarter.
• International revenue declines were attributed to the timing of capital expenditure plans by mobile network operators.

Risks and Challenges:

• Forward-looking statements identify risks including disruptions from ongoing global conflict, price and margin erosion in the microwave transmission industry, and the impact of volume, timing, and customer/product/geographic mix of orders.
• Risks include inability to meet financial covenant requirements, payment timing, product development delays, supply chain constraints, component shortages, inflation, and customer acceptance of new products.
• Additional risks include geopolitical instability, trade wars, tariffs, currency and interest rate risks, and the ability to preserve net operating loss carryforwards.
• The company notes risks related to the realization of benefits from acquisitions and the ability to implement stock repurchase programs.

Management Commentary and Tone:

• Management highlighted ongoing cost controls that lowered non-GAAP operating expenses to $26.2 million, strengthening profitability in the quarter.
• The record bookings and book-to-bill ratio greater than 1.5 were presented as indicators of strong future order flow.
• Aprisa booking growth was cited as evidence of growing momentum with North American utility companies.

Other Key Points:

• The company reported a book-to-bill ratio greater than 1.5 for the quarter.
• Non-GAAP financial measures exclude share-based compensation, restructuring charges, and litigation and other expenses.
• The company will host a conference call on November 10, 2026, at 8:30 a.m. ET with Peter Smith (CEO), Andy Schmidt (CFO), Jonanna Mikulenka (CAO), and Andrew Fredrickson (VP, Corporate Finance).
• The press release includes reconciliations of GAAP to non-GAAP financial measures, noting that Adjusted EBITDA guidance is not reconciled to GAAP due to high variability in merger costs and share-based compensation.