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Aviat Posts Wider Loss in Q1 - Analyst Blog

By: Zacks.com
Posted: 10/31/2013 11:40:00 AM
Referenced Stocks: AVNW;HRS;MSI;SHOR

Aviat Networks Inc .'s ( AVNW ) first-quarter fiscal 2014 adjusted net loss widened to $7.8 million or 13 cents per share from net income of $2.8 million or 5 cents per share in the year-ago quarter. The company's reported loss was also wider than the Zacks Consensus Estimate of a loss of 3 cents per share.

On GAAP basis, the company reported a net loss of $13.6 million or 22 cents a share in the quarter compared with loss of $2.2 million or 4 cents in the prior-year quarter. The quarter's loss was primarily a result of the pre-tax charges levied on the company amounting to $6.3 million. The charges consisted of share-based compensation expense, restructuring expense, amortization of purchased intangibles and warehouse consolidation costs.

Revenue

Total revenue for the first quarter was $93.4 million, down 18.8% from $115.0 million in the prior-year quarter. Revenues from the North America region declined 12.9% to $33.7 million and that from the International region declined 21.8% to $59.7 million. Apart from these, the top line was also impacted by additional charges on depreciation and amortization on property and interest expense.

Income and Expenses

The company incurred total GAAP SG&A expense of approximately $22.2 million, down 4.7% from $23.3 million in the first quarter of fiscal 2013. GAAP R&D expense was $9.7 million versus $9.3 million in the prior-year quarter.

Loss from continuing operations of the company was $13.4 million compared with operating income of $0.7 million in the prior-year period. The company's GAAP gross margin in the quarter was 23.1% down from 33.7% in the prior-year quarter.

Balance Sheet

Exiting the quarter, cash and cash equivalents were $79.3 million, down 11.9% from $90.0 million in the last quarter. Cash and cash equivalents declined 10% year over year. The shareholder's equity also dropped to $137.9 million compared with last quarter's figure of $149.9 million.

Outlook

For second quarter of fiscal 2014, Aviat Networks expects revenues to be in the range of $100 million to $107 million. The company also projects adjusted loss per share from continuing operations between 8 cents and 3 cents per share. The company did not provide any guidance for fiscal 2014.

Aviat Networks currently has a Zacks Rank #3 (Hold). Some other better-placed stocks from the same industry that are worth mentioning at the moment include ShoreTel, Inc. ( SHOR ), Harris Corporation ( HRS ) and Motorola Solutions, Inc. ( MSI ).ShoreTel currently holds a Zacks Rank #1 (Strong Buy), whereas Harris Corporation and Motorola carry a Zacks Rank #2 (Buy) each. 



AVIAT NETWORKS (AVNW): Free Stock Analysis Report

HARRIS CORP (HRS): Free Stock Analysis Report

MOTOROLA SOLUTN (MSI): Free Stock Analysis Report

SHORETEL INC (SHOR): Free Stock Analysis Report

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