avnw-20220823
0001377789false00013777892022-08-232022-08-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
Form 8-K
______________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 23, 2022
_______________________
AVIAT NETWORKS, INC.
(Exact name of registrant as specified in its charter)
______________________________________
Delaware
001-33278
20-5961564
(State or other jurisdiction
(Commission File
(I.R.S. Employer
of incorporation)
Number)
Identification No.)
200 Parker Dr., Suite C100A, Austin, Texas 78728
(Address of principal executive offices, including zip code)
(408)-941-7100
Registrant’s telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share
AVNWNASDAQ Stock Market LLC
Preferred Share Purchase RightsNASDAQ Stock Market LLC
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2)
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02 Results of Operations and Financial Condition

On August 23, 2022, Aviat Networks, Inc.(the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended July 1, 2022. A copy of the press release is filed as Exhibit 99.1 to this report. The Company also posted to its website an Investor Presentation with respect to its fourth quarter ended July 1, 2022.
The information in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
The press release and Investor Presentation refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in Exhibit 99.1 of this report.

Item 9.01 Financial Statements and Exhibits.
(d)    Exhibits.
Exhibit No.    Description
99.1     Press Release, issued by Aviat Networks, Inc. on August 23, 2022.
104     Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AVIAT NETWORKS, INC.
August 23, 2022
By:
/s/ David M. Gray
Name:
David M. Gray
Title:
Senior Vice President, Chief Financial Officer



Document

News
Release
https://cdn.kscope.io/bcb1a8d3da56a618c416d58bb12f904a-aviatlogoa13.jpg

www.aviatnetworks.com
Aviat Networks Announces Fiscal 2022 Fourth Quarter and Twelve Months Financial Results
Total Q4 Revenue of $77.4 million; Up 8.0% Year-over-Year
Q4 GAAP Operating Income of $5.2 million; Up 40.4% Year-over-Year
Q4 Adjusted EBITDA of $9.1 million; Up 31.1% compared to Prior Year


AUSTIN, TX, August 23, 2022 -- Aviat Networks, Inc. (NASDAQ: AVNW), (“Aviat Networks,” “Aviat,” or the “Company”), the leading expert in wireless transport solutions, today reported financial results for its fiscal 2022 fourth quarter and twelve months ended July 1, 2022. These results do not include the financial results of Redline Communications Group Inc., whose acquisition by Aviat was completed on July 5, 2022, in Aviat’s fiscal 2023 first quarter.
Fourth Quarter Highlights
Company executed on key long-term strategic objectives resulting in continued year-over-year increase in quarterly revenues and Adjusted EBITDA
Highest bookings quarter in seven years, and the highest in North America in over a decade
Highest bookings quarter for multi-band to date, with 60% coming from the EMEA region
Highest bookings quarter for management software since the Company’s inception, including the first SaaS-based Health Assurance Software sale with a large U.S. state government
Announced collaboration with MaxLinear on next generation System on Chip:
the most advanced technology Modem for wireless transport in development
Fourth Quarter Financial Highlights
Total Revenues: $77.4 million, +8.0% from the same quarter last year
North America: $48.8 million, + 5.1% from the same quarter last year
International: $28.6 million, +13.3% from the same quarter last year
GAAP Results: Gross Margin 35.5%; Operating Expenses $22.2 million; Operating Income $5.2 million; Net Income $4.5 million; Net Income per diluted share (‘Net Income per share”) $0.39
Non-GAAP Results: Adjusted EBITDA $9.1 million; Gross Margin 35.7%; Operating Expenses $19.5 million; Operating Income $8.1 million; Net Income $7.8 million; Net Income per share $0.67
Net Cash and Marketable securities: $47.8 million; no loans outstanding at quarter-end
Buy Back: Repurchased $0.75 million of stock in the quarter



Full Year Financial Highlights
Total Revenues: $303.0 million, +10.2% from the prior year
North America: $199.8 million, +9.1% from the prior year
International: $103.2 million, +12.3% from the prior year
GAAP Results: Gross Margin 36.1%; Operating Expenses $80.5 million; Operating Income $28.7 million; Net Income $21.2 million; Net Income per diluted share (‘Net Income per share”) $1.79
Non-GAAP Results: Adjusted EBITDA $38.3 million; Gross Margin 36.2%; Operating Expenses $75.8 million; Operating Income $33.9 million; Net Income $32.7 million; Net Income per share $2.76
Buy Back: Repurchased $5.4 million of stock in the current year
Fiscal 2022 Fourth Quarter and Twelve-Month Comparisons

Revenues
The Company reported total revenues of $77.4 million for its fiscal 2022 fourth quarter, compared to $71.7 million in the comparable fiscal 2021 period, an increase of $5.7 million or 8.0%. North America revenue of $48.8 million increased by $2.4 million or 5.1%, compared to $46.4 million in the comparable fiscal 2021 period. International revenue of $28.6 million increased by $3.4 million or 13.3%, compared to $25.3 million in the comparable fiscal 2021 period. The increase in international revenue was high order volumes in the APAC and Europe regions offset by lower spending environment in Africa.

For the twelve months ended July 1, 2022, the Company reported total revenues of $303.0 million, compared to $274.9 million in the comparable fiscal 2021 period, an increase of $28.0 million or 10.2%. North America revenue of $199.8 million increased by $16.7 million or 9.1%, compared to $183.1 million in the comparable fiscal 2021 period. International revenue of $103.2 million increased by $11.3 million or 12.3%, compared to $91.8 million in the comparable fiscal 2021 period.

Gross Margins
In the fiscal 2022 fourth quarter, the Company reported GAAP and non-GAAP gross margin of 35.5% and 35.7%, respectively. This compares to GAAP gross margin of 36.1% and non-GAAP gross margin of 36.2% in the comparable fiscal 2021 period.

For the twelve months ended July 1, 2022, the Company reported GAAP gross margin of 36.1% and non-GAAP gross margin of 36.2%. This compares to GAAP gross margin of 37.3% and non-GAAP gross margin of 37.5% in the comparable fiscal 2021 period, a decline of -120 and -130 basis points, respectively.

Operating Expenses
GAAP total operating expenses for the fiscal 2022 fourth quarter were $22.2 million, compared to $22.1 million in the comparable fiscal 2021 period, an increase of $0.1 million or 0.3%. Non-GAAP total operating expenses, excluding the impact of restructuring charges and share-based compensation, for the fiscal 2022 fourth quarter



were $19.5 million, compared to $20.4 million in the comparable fiscal 2021 period, an increase of $(0.9) million or (4.2)%.

For the twelve months ended July 1, 2022, the Company reported GAAP total operating expenses of $80.5 million, compared to $80.4 million in the comparable fiscal 2021 period, an increase of $0.1 million or 0.1%. On a non-GAAP basis, excluding the impact of restructuring charges and share-based compensation, total operating expenses for the twelve months ended July 1, 2022 were $75.8 million, compared to $75.6 million in the fiscal 2021 period, an increase of $0.2 million or 0.3%.

Operating Income
The Company reported GAAP operating income of $5.2 million for the fiscal 2022 fourth quarter, compared to a GAAP operating income of $3.7 million in the comparable fiscal 2021 period, a $1.5 million year-over-year increase. On a non-GAAP basis, the Company reported operating income of $8.1 million for the fiscal 2022 fourth quarter, compared to a non-GAAP operating income of $5.6 million in the comparable fiscal 2021 period, a $2.5 million year-over-year increase.

For the twelve months ended July 1, 2022, the Company reported $28.7 million in GAAP operating income, compared to a GAAP operating income of $22.2 million in the comparable fiscal 2021 period, a $6.5 million year-over-year improvement. On a non-GAAP basis, the Company reported operating income of $33.9 million for the twelve months ended July 1, 2022, compared to $27.4 million in the comparable fiscal 2021 period, a $6.5 million year-over-year improvement.

Net Income / Net Income Per Share
The Company reported GAAP net income of $4.5 million in the fiscal 2022 fourth quarter or GAAP net income per share of $0.39. This compared to a GAAP net income of $2.8 million or GAAP net income per share of $0.24 in the fiscal 2021 fourth quarter. On a non-GAAP basis, the Company reported net income of $7.8 million or a non-GAAP net income per share of $0.67, compared to a non-GAAP net income of $5.3 million or non-GAAP net income per share of $0.44 in the comparable fiscal 2021 period.

For the twelve months ended July 1, 2022, the Company reported GAAP net income of $21.2 million or a GAAP net income per share of $1.79. This compared to GAAP net income of $110.1 million or a GAAP net income per share of $9.42 in the comparable fiscal 2021 period. On a non-GAAP basis, for the twelve months ended July 1, 2022, the Company reported net income of $32.7 million or a net income per share of $2.76, compared to non-GAAP net income of $26.0 million or $2.23 per share in the comparable fiscal 2021 period.




Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) for the fiscal 2022 fourth quarter was $9.1 million, compared to $7.0 million in the comparable fiscal 2021 period, a year-over-year increase of approximately $2.2 million. For the twelve months ended July 1, 2022, the Company reported Adjusted EBITDA of $38.3 million, compared to $32.8 million in the comparable fiscal 2021 period, a year-over-year increase of approximately $5.6 million.

Balance Sheet Highlights
The Company reported cash and marketable securities of $47.8 million as of July 1, 2022, compared to $33.8 million as of April 1, 2022. As of July 1, 2022, the Company has no loans outstanding. During our fiscal 2022 fourth quarter, as part of our stock repurchase program approved by our board of directors in November 2021, we purchased approximately 26,000 shares of our common stock for $0.75 million and classified them as treasury shares, taking total repurchases for fiscal 2022 to 175,000 shares or $5.4 million

Conference Call Details
Aviat Networks will host a conference call at 5:00 p.m. Eastern Time (ET) today, August 23, 2022, to discuss its financial and operational results for the fiscal 2022 fourth quarter. Participating on the call will be Peter Smith, President and Chief Executive Officer; David M. Gray, Sr. Vice President and Chief Financial Officer; and Andrew Fredrickson, Director of Corporate Development and Investor Relations. Following management's remarks, there will be a question and answer period.

Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at https://investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website.

About Aviat Networks    
Aviat Networks, Inc. is the leading expert in wireless transport solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high-performance products, simplified operations, and the best overall customer experience.  Aviat Networks is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on TwitterFacebook and LinkedIn.




Forward-Looking Statements
The information contained in this document includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat’s beliefs and expectations regarding business conditions, new product solutions, customer positioning, revenue, future orders, bookings, new contracts, cost structure, operating income, profitability in fiscal 2023, process improvements, realignment plans and review of strategic alternatives. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements.

Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the impact of COVID-19; disruptions relating to the ongoing conflict between Russia and Ukraine; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; the timing of our receipt of payment; our ability to meet product development dates or cost reductions of products; our suppliers’ inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the ability to preserve and use our net operating loss carryforwards; the effects of currency and interest rate risks; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships.




For more information regarding the risks and uncertainties for Aviat’s business, see “Risk Factors” in Aviat’s Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on August 25, 2021, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Investor Relations:
Andrew Fredrickson
Director, Corporate Development & Investor Relations
Phone: (408) 501-6214
Email: andrew.fredrickson@aviatnet.com



Table 1
AVIAT NETWORKS, INC.
Fiscal Year 2022 Fourth Quarter Summary
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months EndedTwelve Months Ended
(In thousands, except per share amounts)July 1,
2022
July 2,
2021
July 1,
2022
July 2,
2021
Revenues:
Revenue from product sales$51,739 $49,386 $208,100 $185,787 
Revenue from services25,682 22,300 94,859 89,124 
Total revenues77,421 71,686 302,959 274,911 
Cost of revenues:
Cost of product sales34,615 31,232 132,404 113,055 
Cost of services15,344 14,575 61,320 59,241 
Total cost of revenues49,959 45,807 193,724 172,296 
Gross margin27,462 25,879 109,235 102,615 
Operating expenses:
Research and development expenses5,258 6,269 22,596 21,810 
Selling and administrative expenses16,352 14,769 57,656 56,324 
Restructuring charges611 1,109 238 2,271 
Total operating expenses22,221 22,147 80,490 80,405 
Operating income5,241 3,732 28,745 22,210 
Other income, net2,077 29 1,690 230 
Income before income taxes7,318 3,761 30,435 22,440 
Provision for (benefit from) income taxes2,785 930 9,275 (87,699)
Net income$4,533 $2,831 $21,160 $110,139 
Net income per share:
Basic$0.41 $0.25 $1.89 $9.98 
Diluted$0.39 $0.24 $1.79 $9.42 
Weighted average shares outstanding:
Basic11,151 11,158 11,167 11,036 
Diluted11,726 11,950 11,820 11,688 



Table 2
AVIAT NETWORKS, INC.
Fiscal Year 2022 Fourth Quarter Summary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)July 1,
2022
July 2,
2021
ASSETS
Current Assets:
Cash and cash equivalents$36,877 $47,942 
 Marketable securities10,893 — 
Accounts receivable, net73,168 48,135 
Unbilled receivables45,857 37,521 
Inventories25,394 23,436 
Customer service inventories1,775 1,431 
Asset held for sale— 2,218 
Other current assets12,437 9,556 
Total current assets206,401 170,239 
Property, plant and equipment, net8,887 11,701 
Deferred income taxes95,412 103,467 
Right of use assets2,759 3,816 
Other assets10,445 8,430 
TOTAL ASSETS$323,904 $297,653 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$42,394 $32,405 
Accrued expenses26,451 28,154 
Short-term lease liabilities513 769 
Advance payments and unearned revenue33,740 32,304 
Restructuring liabilities1,381 2,737 
Total current liabilities104,479 96,369 
Unearned revenue8,920 8,592 
Long-term lease liabilities2,412 3,223 
Other long-term liabilities273 356 
Reserve for uncertain tax positions5,504 5,164 
Deferred income taxes563 614 
Total liabilities122,151 114,318 
Commitments and contingencies
Equity:
Preferred stock— — 
Common stock112 112 
Treasury stock(6,147)(787)
Additional paid-in-capital823,259 818,939 
Accumulated deficit(599,442)(620,602)
Accumulated other comprehensive loss(16,029)(14,327)
Total equity201,753 183,335 
TOTAL LIABILITIES AND EQUITY$323,904 $297,653 




 
AVIAT NETWORKS, INC.
Fiscal Year 2022 Fourth Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE
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, diluted net income per share and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA), 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.

Table 3
AVIAT NETWORKS, INC.
Fiscal Year 2022 Fourth Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Consolidated Statements of Operations
(Unaudited)
 Three Months EndedTwelve Months Ended
 July 1, 2022% of
Revenue
July 2, 2021% of
Revenue
July 1, 2022% of
Revenue
July 2, 2021% of
Revenue
 (In thousands, except percentages and per share amounts)
GAAP gross margin$27,462 35.5 %$25,879 36.1 %$109,235 36.1 %$102,615 37.3 %
Share-based compensation169 93 440 372 
Non-GAAP gross margin27,631 35.7 %25,972 36.2 %109,675 36.2 %102,987 37.5 %
GAAP research and development expenses$5,258 6.8 %$6,269 8.7 %$22,596 7.5 %$21,810 7.9 %
Share-based compensation(143)(71)(246)(250)
Non-GAAP research and development expenses5,115 6.6 %6,198 8.6 %22,350 7.4 %21,560 7.8 %
GAAP selling and administrative expenses$16,352 21.1 %$14,769 20.6 %$57,656 19.0 %$56,324 20.5 %
Share-based compensation(1,058)(603)(3,148)(2,299)
Merger and acquisition related expense(905)— (1,061)— 
Non-GAAP selling and administrative expenses14,389 18.6 %14,166 19.8 %53,447 17.6 %54,025 19.7 %
GAAP operating income$5,241 6.8 %$3,732 5.2 %$28,745 9.5 %$22,210 8.1 %
Share-based compensation1,370 767 3,834 2,921 
Merger and acquisition related expense905 — 1,061 — 
Restructuring charges611 1,109 238 2,271 
Non-GAAP operating income8,127 10.5 %5,608 7.8 %33,878 11.2 %27,402 10.0 %
GAAP income tax provision (benefit) $2,785 3.6 %$930 1.3 %$9,275 3.1 %$(87,699)(31.9)%
Tax receivable from Department of Federal Revenue of Brazil —  1,646 
Release of valuation allowance 432  7,486 
Adjustment to reflect pro forma tax rate(2,485)(1,062)(8,075)79,767 
Non-GAAP income tax provision300 0.4 %300 0.4 %1,200 0.4 %1,200 0.4 %



 Three Months EndedTwelve Months Ended
 July 1, 2022% of
Revenue
July 2, 2021% of
Revenue
July 1, 2022% of
Revenue
July 2, 2021% of
Revenue
 (In thousands, except percentages and per share amounts)
GAAP net income
$4,533 5.9 %$2,831 3.9 %$21,160 7.0 %$110,139 40.1 %
Share-based compensation1,370 767 3,834 2,921 
Merger and acquisition related expense905 — 1,061 — 
Restructuring charges611 1,109 238 2,271 
Other income, net(2,077)(29)(1,690)(230)
Release of valuation allowance (432) (7,486)
Tax receivable from Department of Federal Revenue of Brazil —  (1,646)
Adjustment to reflect pro forma tax rate2,485 1,062 8,075 (79,767)
Non-GAAP net income
$7,827 10.1 %$5,308 7.4 %$32,678 10.8 %$26,202 9.5 %
Diluted net income per share:
GAAP$0.39 $0.24 $1.79 $9.42 
Non-GAAP$0.67 $0.44 $2.76 $2.23 
Shares used in computing diluted net income per share
GAAP/Non-GAAP11,726 11,950 11,820 11,688 
Adjusted EBITDA:
GAAP net income
$4,533 5.9 %$2,831 3.9 %$21,160 7.0 %$110,139 40.1 %
Depreciation and amortization of property, plant, and equipment
1,019 1,367 4,463 5,383 
Other income, net(2,077)(29)(1,690)(230)
Share-based compensation1,370 767 3,834 2,921 
Merger and acquisition related expense905 — 1,061 — 
Restructuring charges611 1,109 238 2,271 
Provision for (benefit from) income taxes2,785 930 9,275 (87,699)
Adjusted EBITDA
$9,146 11.8 %$6,975 9.7 %$38,341 12.7 %$32,785 11.9 %
_____________________________________________________
(1)     The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by Aviat Networks. Aviat monitors the non-GAAP financial measures included above, and our management believes they are helpful to investors because they provide an additional tool to use in evaluating Aviat’s financial and business trends and operating results. In addition, Aviat’s management uses these non-GAAP measures to compare Aviat’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. Our non-GAAP net income excludes share-based compensation, and other non-recurring charges (recovery) and Adjusted EBITDA is determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from the 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.



Table 4
AVIAT NETWORKS, INC.
Fiscal Year 2022 Fourth Quarter Summary
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
 
 Three Months EndedTwelve Months Ended
July 1,
2022
July 2,
2021
July 1,
2022
July 2,
2021
 (In thousands)
North America$48,776 $46,393 $199,801 $183,071 
International:
Africa and the Middle East10,167 12,885 47,527 44,023 
Europe and Russia4,464 1,773 12,973 8,826 
Latin America and Asia Pacific14,014 10,635 42,658 38,991 
28,645 25,293 103,158 91,840 
Total revenue$77,421 $71,686 $302,959 $274,911