Aviat Networks(US:AVNW)2024-05-01 20:13Revenue Performance - Total revenue for the third quarter of fiscal 2024 was $111.6 million, representing a 33.7% increase compared to $83.5 million in the same period of fiscal 2023[119]. - Revenue from product sales increased by 29.3% to $70.9 million in the third quarter of fiscal 2024, while service revenue rose by 42.2% to $40.8 million[123]. - Revenue in North America decreased by $1.7 million (3.6%) in the third quarter of fiscal 2024, but increased by $4.3 million (2.9%) for the first nine months compared to fiscal 2023[119]. - Revenue in Africa and the Middle East decreased by $7.8 million (40.7%) in the third quarter of fiscal 2024, and by $8.5 million (19.2%) for the first nine months[121]. - Revenue in Europe increased by $2.7 million (69.2%) in the third quarter of fiscal 2024, and by $3.7 million (26.8%) for the first nine months[122]. - Revenue in Latin America and Asia Pacific surged by $34.9 million (244.2%) in the third quarter of fiscal 2024, and by $39.3 million (78.1%) for the first nine months[122]. Gross Margin and Expenses - Gross margin for the third quarter of fiscal 2024 increased by $6.7 million to $36.5 million, while gross margin for the first nine months rose by $13.7 million[124]. - The gross margin percentage for the third quarter of fiscal 2024 was 32.7%, down from 35.7% in the same quarter of fiscal 2023, primarily due to dilution from the NEC Transaction[125]. - Research and development expenses increased by $4.1 million (63.0%) for the third quarter and $6.8 million (36.4%) for the first nine months of fiscal 2024 compared to the same periods in fiscal 2023, primarily due to increased product development activities and costs from the NEC Transaction[126]. - Selling and administrative expenses rose by $5.5 million (34.5%) for the third quarter and $12.1 million (24.2%) for the first nine months of fiscal 2024, mainly due to merger and acquisition expenses and costs from the NEC Transaction[127]. Acquisitions - The company completed the acquisition of NEC's wireless transport business for approximately $54.5 million, enhancing its product portfolio and market scale[114][115]. - The company acquired Redline Communications Group Inc. for $20.4 million, further strengthening its position in mission-critical data infrastructure[116]. Cash Flow and Financing - Net cash provided by operating activities was $22.2 million for the first nine months of fiscal 2024, a $31.2 million increase from $(9.0) million in the prior year, attributed to improvements in working capital and increased net income[136]. - Net cash used in investing activities was $35.0 million for the first nine months of fiscal 2024, compared to $11.7 million in the prior year, primarily due to payments related to the NEC Transaction[137]. - Net cash provided by financing activities was $49.3 million for the first nine months of fiscal 2024, a $43.1 million increase from $6.2 million in the prior year, mainly due to $50.0 million of Term Loan borrowings for the NEC Transaction[138]. - As of March 29, 2024, the Company had total cash and cash equivalents of $58.2 million, with $20.6 million held in the United States and $37.6 million held by foreign entities[135]. Interest and Debt - Interest expense, net increased by $0.8 million (660.7%) for the third quarter and $1.2 million (576.7%) for the first nine months of fiscal 2024, primarily due to interest on Term Loan borrowings for the NEC Transaction[130]. - The effective interest rate on the Company's outstanding Term Loan borrowings as of March 29, 2024, was 7.9%[149]. - The Company estimates a 10% change in interest rates could impact annual interest expense by approximately $0.4 million on its outstanding long-term debt[149]. - The Company believes its existing cash, available borrowings, and future cash collections will be sufficient for its anticipated requirements for at least the next 12 months[140].