AVNW 8-K

Aviat Networks, Inc. (AVNW)

8-K 2026-08-27 For: 2026-08-27

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Added on August 27, 2026


	Three Months Ended				Twelve Months Ended
(In thousands, except per share amounts)	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Revenues:
Product sales	$	89,524	$	67,405	$	314,223	$	287,657
Services	31,363		47,935		125,459		146,949
Total revenues	120,887		115,340		439,682		434,606
Cost of revenues:
Product sales	63,294		49,477		221,449		208,017
Services	20,349		26,397		79,942		87,153
Total cost of revenues	83,643		75,874		301,391		295,170
Gross margin	37,244		39,466		138,291		139,436
Operating expenses:
Research and development	7,238		7,434		28,401		35,768
Selling and administrative	22,384		21,134		88,509		89,482
Restructuring charges	1,800		2,019		2,144		3,611
Total operating expenses	31,422		30,587		119,054		128,861
Operating income	5,822		8,879		19,237		10,575
Interest expense, net	2,211		1,806		7,679		6,058
Other (income) expense, net	(1,290)		(3,106)		(1,661)		941
Income before income taxes	4,901		10,179		13,219		3,576
Provision for income taxes	6,177		4,982		10,680		2,235
Net (loss) income	$	(1,276)	$	5,197	$	2,539	$	1,341

Net (loss) income per share of common stock outstanding:
Basic	$	(0.10)	$	0.41	$	0.20	$	0.11
Diluted	$	(0.10)	$	0.40	$	0.19	$	0.10
Weighted-average shares outstanding:
Basic	12,920		12,709		12,847		12,681
Diluted	12,920		12,867		13,027		12,826


(In thousands)	July 3, 2026		June 27, 2025
ASSETS
Current Assets:
Cash and cash equivalents	$	72,844	$	59,690
Accounts receivable, net	192,245		180,321
Unbilled receivables	82,125		105,870
Inventories	69,005		83,979

Other current assets	23,026		33,715
Total current assets	439,245		463,575
Property, plant and equipment, net	18,776		17,453
Goodwill	19,411		19,655
Intangible assets, net	23,574		26,897
Deferred income taxes	82,064		88,149
Right of use assets	2,001		3,113
Other assets	13,891		14,454
Total long-term assets	159,717		169,721
Total assets	$	598,962	$	633,296
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	119,500	$	148,093
Accrued expenses	34,125		38,897
Short-term lease liabilities	442		1,090
Advance payments and unearned revenue	59,943		73,735
Other current liabilities	1,243		1,757
Current portion of long-term debt	7,900		18,624
Total current liabilities	223,153		282,196
Long-term debt	89,100		68,966
Unearned revenue	9,017		8,063
Long-term lease liabilities	1,739		2,241
Other long-term liabilities	—		430
Reserve for uncertain tax positions	5,260		3,242
Deferred income taxes	3,305		4,975
Total liabilities	331,574		370,113
Commitments and contingencies
Stockholder’s equity:

Common stock	129		127
Treasury stock	(9,744)		(7,076)
Additional paid-in-capital	872,081		866,119
Accumulated deficit	(574,633)		(577,172)
Accumulated other comprehensive loss	(20,445)		(18,815)
Total stockholders’ equity	267,388		263,183
Total liabilities and stockholders’ equity	$	598,962	$	633,296


	Three Months Ended								Twelve Months Ended
	July 3, 2026		% of Revenue		June 27, 2025		% of Revenue		July 3, 2026		% of Revenue		June 27, 2025		% of Revenue
	(In thousands, except percentages and per share amounts)
GAAP gross margin	$	37,244	30.8	%	$	39,466	34.2	%	$	138,291	31.5	%	$	139,436	32.1	%
Share-based compensation	41				19				146				233
Litigation and other expenses	68				595				1,315				2,890
Non-GAAP gross margin	37,353		30.9	%	40,080		34.7	%	139,752		31.8	%	142,559		32.8	%

GAAP research and development expenses	$	7,238	6.0	%	$	7,434	6.4	%	$	28,401	6.5	%	$	35,768	8.2	%
Share-based compensation	(37)				(78)				(135)				(534)
Non-GAAP research and development expenses	7,201		6.0	%	7,356		6.4	%	28,266		6.4	%	35,234		8.1	%

GAAP selling and administrative expenses	$	22,384	18.5	%	$	21,134	18.3	%	$	88,509	20.1	%	$	89,482	20.6	%
Share-based compensation	(1,641)				(1,344)				(5,921)				(6,300)
Litigation and other expenses	(598)				(6)				(1,656)				(4,896)
Non-GAAP selling and administrative expenses	20,145		16.7	%	19,784		17.2	%	80,932		18.4	%	78,286		18.0	%

GAAP operating expense	$	31,422	26.0	%	$	30,587	26.5	%	$	119,054	27.1	%	$	128,861	29.7	%
Share-based compensation	(1,678)				(1,422)				(6,056)				(6,834)
Litigation and other expenses	(598)				(6)				(1,656)				(4,896)
Restructuring (charges) recovery	(1,800)				(2,019)				(2,144)				(3,611)
Non-GAAP operating expense	27,346		22.6	%	27,140		23.5	%	109,198		24.8	%	113,520		26.1	%

GAAP operating income	$	5,822	4.8	%	$	8,879	7.7	%	$	19,237	4.4	%	$	10,575	2.4	%
Share-based compensation	1,719				1,441				6,202				7,067
Litigation and other expenses	666				601				2,971				7,786
Restructuring charges	1,800				2,019				2,144				3,611
Non-GAAP operating income	10,007		8.3	%	12,940		11.2	%	30,554		6.9	%	29,039		6.7	%

GAAP income tax provision	$	6,177	5.1	%	$	4,982	4.3	%	$	10,680	2.4	%	$	2,235	0.5	%
Adjustment to reflect pro forma tax rate	(6,677)				(4,582)				(9,380)				(635)
Non-GAAP income tax (benefit) provision	(500)		(0.4)	%	400		0.3	%	1,300		0.3	%	1,600		0.4	%

GAAP net (loss) income	$	(1,276)	(1.1)	%	$	5,197	4.5	%	$	2,539	0.6	%	$	1,341	0.3	%
Share-based compensation	1,719				1,441				6,202				7,067
Litigation and other expenses	666				601				2,971				7,786
Restructuring charges	1,800				2,019				2,144				3,611
Other (income) expense, net	(1,290)				(3,106)				(1,661)				941
Adjustment to reflect pro forma tax rate	6,677				4,582				9,380				635
Non-GAAP net income	$	8,296	6.9	%	$	10,734	9.3	%	$	21,575	4.9	%	$	21,381	4.9	%

Diluted net (loss) income per share:
GAAP	$	(0.10)			$	0.40			$	0.19			$	0.10
Non-GAAP	$	0.64			$	0.83			$	1.66			$	1.67

Shares used in computing net income per share
GAAP	12,920				12,867				13,027				12,826
Non-GAAP	13,042				12,867				13,027				12,826

Adjusted EBITDA:
GAAP net (loss) income	$	(1,276)	(1.1)	%	$	5,197	4.5	%	$	2,539	0.6	%	$	1,341	0.3	%
Depreciation and amortization of property, plant and equipment and intangible assets	1,871				2,110				6,118				8,045
Interest expense, net	2,211				1,806				7,679				6,058
Other (income) expense, net	(1,290)				(3,106)				(1,661)				941
Share-based compensation	1,719				1,441				6,202				7,067
Litigation and other expenses	666				601				2,971				7,786
Restructuring charges	1,800				2,019				2,144				3,611
Provision for income taxes	6,177				4,982				10,680				2,235
Adjusted EBITDA	$	11,878	9.8	%	$	15,050	13.0	%	$	36,672	8.3	%	$	37,084	8.5	%


	Three Months Ended				Twelve Months Ended
	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
(In thousands)
North America	$	68,321	$	58,017	$	220,034	$	207,606
International:
Africa and the Middle East	14,084		11,218		57,952		49,428
Europe	12,725		8,337		42,043		31,713
Latin America and Asia Pacific	25,757		37,768		119,653		145,859
Total international	52,566		57,323		219,648		227,000
Total revenue	$	120,887	$	115,340	$	439,682	$	434,606


To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and Adjusted EBITDA, in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow.
1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort.


(1)			The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment and intangible assets, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures.