The following is a summary of the Aviat Networks, Inc. (AVNW) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Total revenue for the quarter was $88.4 million, a slight increase of 1.7% from the previous year.

• Adjusted EBITDA stood at minus $7.7 million.

• Non-GAAP gross margin of 23% was noted, reflecting a decline from previous margins.

• Non-GAAP EPS showed a loss of $0.87.

Business Progress:

• Aviat continues to integrate and leverage its recent acquisitions, including the Pasolink and 4RF deals, aiming to boost its offerings in network management software and 5G routers.

• A strategic shift is being implemented by transferring Pasolink product manufacturing to Aviat's contract manufacturers to manage orders and inventory more effectively.

• New contracts with Midwestern electric utilities are underway, valued at over $8 million, to supply Aprisa access products for network upgrades, reflecting growing business in private network solutions.

Opportunities:

• Expansion of Aviat's network management software, ProVision Plus, presents a $50 million opportunity over five years to enhance usability and features for over one million Pasolink radios across 500+ customers.

• The company sees significant growth potential in the private 5G network segment, evidenced by new contracts and interest in secure communication infrastructure from utilities and public safety networks.

Risks:

• Aviat faces tough market conditions marked by prolonged Tier 1 CapEx weakness and challenges in timing for private network and international projects.

• The company also faces operational disruptions stemming from a need to finalize frequencies and designs for private network projects, delaying revenue recognition.

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