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•	Revenue of $58.3 million; Book to Bill > 1

•	GAAP Gross Margin of 16.9%, a decline of 430 basis points year-over-year; Non-GAAP Gross Margin of 25.7%, an improvement of 440 basis points year-over-year

•	GAAP Operating Expenses of $23.1 million, a reduction of $0.6 million or 2.6% year-over-year; Non-GAAP Operating Expenses of $21.1 million, a reduction of $1.9 million or 8.3% year-over-year

•	GAAP Net Loss Attributable to Aviat Networks of $(15.2) million

•	Non-GAAP Loss from Continuing Operations Attributable to Aviat Networks of $(6.4) million

•	Adjusted EBITDA of $(4.5) million

•	Revenue of $268.7 million; Book to Bill > 1

•	GAAP Gross Margin of 23.0%, a decline of 100 basis points year-over-year; Non-GAAP Gross Margin of 24.9%, an improvement of 80 basis points year-over-year

•	GAAP Operating Expenses of $89.2 million, a reduction of $17.5 million or 16.4% year-over-year; and Non-GAAP Operating Expenses of $85.0 million, a reduction of $14.3 million or 14.4% year-over-year

•	GAAP Net Loss Attributable to Aviat Networks of $(29.9) million

•	Non-GAAP Loss from Continuing Operations Attributable to Aviat Networks of $(19.4) million

•	Adjusted EBITDA of $(11.5) million

•	Cash and cash equivalents at Fiscal 2016 year-end of $30.5 million

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•	continued price and margin erosion as a result of increased competition in the microwave transmission industry;

•	the impact of the volume, timing and customer, product and geographic mix of our product orders;

•	our ability to meet financial covenant requirements which could impact, among other things, our liquidity;

•	the timing of our receipt of payment for products or services from our customers; our ability to meet projected new product development dates or anticipated cost reductions of new products;

•	our suppliers' inability to perform and deliver on time as a result of their financial condition, component shortages or other supply chain constraints;

•	customer acceptance of new products;

•	the ability of our subcontractors to timely perform;

•	continued weakness in the global economy affecting customer spending;

•	retention of our key personnel;

•	our ability to manage and maintain key customer relationships;

•	uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation;

•	our failure to protect our intellectual property rights or defend against intellectual property infringement claims by others;

•	the results of restructuring efforts;

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•	the ability to preserve and use our net operating loss carryforwards;

•	the effects of currency and interest rate risks; and

•	the impact of political turmoil in countries where we have significant business.

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(1)

The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP loss from continuing operations attributable to Aviat Networks excluded share-based compensation, foreign exchange loss on intercompany dividend receivable, amortization of intangible assets, specific one-time inventory write-down, restructuring charges and adjustment to reflect pro forma tax rate. Adjusted EBITDA attributable to Aviat Networks was determined by excluding depreciation and amortization on property, plant and equipment, interest expense, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from the GAAP loss from continuing operations attributable to Aviat Networks. 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.

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