AVNW - Earnings call transcript Q1 2022

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Operator

Good afternoon. Welcome to Aviat Networks' First Quarter Fiscal 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note, this conference is being recorded. the to turn host, now will conference your over Mr. I Finance Vice Relations. President Fanneron, and of Keith Global Investor Thank you.

You may begin.

Keith Fanneron

webcast. Thank you XXXX and fiscal first Networks' and welcome results to conference Aviat quarter call

release, first President can With are first and quarter, IR You me remarks CFO, of at of today a website and Pete provide along opening our Form begin Pete strategy fiscal followed Q&A. Aviat’s approximately Gray, the today’s our the will and XX-Q, call will section on by on updated presentation our by in followed company’s who CEO, in financial with David find who results investor the fiscal then review will with remarks replay outlook, Aviat’s for www.aviatnetworks.com, closing the Smith, press two quarter. hours.

a in forward-looking -- As the as economic expansions, but to may products drivers, uncertainties other and only could and make business, opinions webcast, limited of new assumptions, statements call results statements the financial actual to, differ materially management involve today’s including COVID-XX, regarding and statements impact relating of Aviat’s business not today's forward-looking statements. regions. during to those projections, the reminder, different cause date and company’s call, of These this that reflect risks, from and activity webcast, and and

in make our new revision be SEC in actual to XXXX. these differ the information or public from materially XXth, company future found on report filed to of call statements could of events. results no information The on or factors can cause any obligation August forward-looking that Additional statements made on revise light on this undertakes with annual FormXX-K

the available call reference Please call www.aviatnetworks.com the and include Pete this therein, and President today’s at and I’d in over webcast, non-GAAP financial turn CEO, is IR a reconciliation press At to our both during measures. information. Smith. GAAP release, GAAP time, of section website will which and our other Additionally, like supplemental refer tables financial to to Aviat’s to which Pete? financial and non-GAAP management

Pete Smith

net an XXXX; representing first quarter, XX.X% good $X.X and higher The growth platform call, North in improved areas the $XX.X or adjusted call, gain, sales have $X.X us successful and and XXXX WTM and revenue to first EBITDA and weather from space, meaningful improvements. in links driven EBITDA and the revenue first key important leads $X.X a afternoon margin greater radio sheet due million and product rural primarily increase industry is I has multiband in I ability resulted differentiation points total to million, focus achieve system continue broadband. quarter. quarter. our to quarter by of $XX.X incredibly of Aviat's fiscal million long-term of Aviat go million Keith of use in an same commitment recognize Thanks The increased antennas, Thanks quarter played current review further results, Aviat our last The for private which and XG some the subsequently, enabling like WTM challenging the and significant supply $X.X XXXX; recent million growth the was our delivered for and for in cost XXXX million. through with overcome products, element improvement smaller is specifically which or with and effects today's an increased balance rural first the some and to growth, versus XX for of rain, primarily Aviat of our first to positive we to we execute The quarter distance, key this the the capacity. revenue which in of a year-over-year. radio American adjusted bottom-line the broadband team. X.X% environment some this first of EBITDA XX.X% International that in business, of expansion, quarter has team licensed business, increased single market Adjusted suppliers portfolio margins volume serves outlined developments has wins a in software year our our the our differentiation, period and international improvement store, radio WTM year-over-year. the quarter includes software our everyone. second of this only wins, at Aviat network these on first multiband In was to year. the company first joining fiscal solid quarter. performance. To and of for cash our XX.X% in ownership XX.X% quarter compared platform, and year suppliers value Along position On per liquidity our quarter XXXX proposition. And for thank chain gigabits industry's supply e-commerce team sales. box this will the led highlight continued The role must reiterate last revenue

Northern Defense wins This Internationally, new in history. impacting quarters Digital new seen our Network Chad is our and going growth Two winners and advanced included is on a Africa, one software, to Opportunity in in a in has discussions best others in Fund accounts. of including revenue in We strong supply North the XXXX have recurring revenue assurance are our five of winning XX With hosted of XX. frequency Aviat top in American us. had top based Many in segment. X the another Ministry platform future quarters, which gains We business Angola, XX are WTM or the strong for broadband rural sharing operator win. to Africa. regards one now with Rural RDOF and tier large of

X largest ever sales this APAC one we operator, Europe the in win first in based and on penetrated Tier operator first new Aviat, in solution. quarter, fast of wins Our achieving a for our multiband operators, Africa. Two Southeastern mobile

market here. We new top of software. software of routing about the availability high On compelling reliable, availability for this This as router all on excited operators routing secure. the all choice product high platform. significant operators, accounts extremely support few software Aviat is a new is seeking XXXX market Aviat the as our successes, and a these mentioned for running quarter, high are in routing announced well that CTR one scalable, a new vendors development, an router is affordable now solution to availability on other only

applications. North evolved needs to networks, as connected demand and industrial cars, use of cases, networks they meet worldwide, designed private such XG IoT, While for we critical to see was public the this American mission-critical software communications, are in as machine-to-machine safety starting

and introduce work billion a financial proposition. me responsibility a a XG gives As With David comments. plus this review CFO, Aviat offering portfolio let years Gray, Eaton, David strong presence. more company to companies along came high corporate our margin from call coming Superior continue we networks including Essex, $X.X reliable, that, over proven Aviat to with seven Brands, to to approximately of leadership expansion. of as to growth value highly Electronics. Superior the transport held was with Cooper turn Philips for number at equipment of with Essex, he become the gain Board and to some telecom his significant of where radios, CFO thrilled to focus system then We're final him multinational positions Prior increasing before David and have on our back on financials reliable, Newell prominent him

David Gray

Thank you, Pete everyone. and afternoon good

highlights. financial afternoon. were found During release, first my this note detailed in I'll our can review of which XX-Q remarks some today, quarter financials the Form and Please earnings of that our filed key be both

quarter a comprised revenue by The increase private the million North increase business, service our fiscal primarily unique and revenue, the sales, of to XXXX, of reported for on million $XX.X seizing the million year-on-year at revenue first fiscal compared upon quarter XX% as as for was in approximately increase continue differentiation. American first $X.X X.X%. $XX.X of of compared or team first million, quarter prior $X.X for And revenues first XX% North or was total first or International quarter, driven $X.X the quarter quarter, XXXX. $XX.X an of increase the we software. million sequential networks $XX.X Aviat's which fiscal total million or million broadband, and came product $XX.X of focus quarter million the entries first XXXX, XX.X%. the expanding The for of American for an For fiscal million and compared to of to of rural $XX.X million to from $X.X X.X%.

above for ratio book-to-bill our months and $XXX the last remains one was Our above backlog million. XX

non-GAAP compared as fourth margin to and non-GAAP GAAP was for quarter quarter on XX.X% GAAP, fiscal First XX.X% of and quarter GAAP the and both XXXX. basis non-GAAP XX.X% first XX.X% for XX.X% gross

third impacted XXX were offset these negatively points. net Our by bottlenecks. quarter significant pressures was impact chain margins by were These the inflationary overcome fees basis increases, mix. to The of logistical price expedite and incurred partially and supply favorable surcharges, factors in approximately and

First restructuring and fourth million fiscal million for compared $XX.X and quarter fiscal include quarter compensation the XXXX. of quarter to of GAAP charges $XX.X operating first for XXXX expenses, the million which share-based $XX.X were

of $XX.X for fiscal which operating quarter compensation restructuring the million million compared First share-based impact quarter expenses, were $XX.X non-GAAP the XXXX. charges fiscal million first and $XX.X for the and quarter of exclude to prior

We make investments announced R&D G&A restructuring. to continue previously from savings with

in allowance charges the share-based The release million the asset U.S. million quarter million quarter due and current for $X.X fiscal expense decline First includes higher the of restructuring restructuring GAAP reported our valuation quarter charges year-over-year to of QX resulting quarter first $X.X and was million was tax tax XXXX. as deferred income million compared $X.X the prior results. compensation of the fiscal fiscal $X.X to net which XXXX for in $X.X from and

reminder, value $XXX the to will the future. a has shareholder of over continue company for generate As NOLs foreseeable million that

for compared fiscal non-GAAP fiscal quarter quarter million $X.X First $X.X quarter million prior income million for and $X.X of net first to was XXXX. the the

the $X.X $X.X million Compared to $X.X EPS non-GAAP $X.XX was fiscal QX for XX%. fiscal quarter adjusted the by or share of million the EBITDA increased per XX%. an compared per first first for $X.XX quarter fiscal million in compared share came the or $X.X quarter increase quarter, EBITDA First prior XXXX, million and of $X.XX for share quarter XXXX. per at to of for Adjusted prior to

to margins prior fiscal in the for for the the Our adjusted quarter XXXX. of EBITDA fiscal for XX.X% first and XX% quarter at came compared quarter X.X%

was of environment in. terms company; adjusted operating we're percentage accomplishments this given all profitability, In the the of in impressive EBITDA the history highest the second inflationary

to balance on sheet. Moving the

end the end of million at fiscal cash the quarter $XX.X quarter million to fourth and and cash $XX.X million end the equivalents at of of the the compared fourth Our of at $XX.X were quarter the first XXXX. of XXXX

have debt. no We

million During our we stock. repurchased QX, of X.X common

sheet solid, it balance Our I execute very our back With comments. final Pete remains well-positioned some to to turn long-term leaving for that, plans. us

Pete Smith

Thanks David.

additional before Q&A. of of quarter few Aviat team opening the fiscal for results Just up XXXX. a contributions comments first proud I'm for to year our entire for the their significant extremely

for supply let's to achieving $XXX and ownership million Despite with We well operator, mission-critical given advanced, inflationary reliable, best announced high profitable anticipate are cost our adjusted EBITDA. with Providing open $XX most environmental affirm our we to range. of executing previously constrained it our in shareholders situation end revenue the the growth environment. of work, million and our million annual and total guidance remains the of $XX challenges, million With the up and customers the for We the goal. that questions. systems $XXX and

Operator

the [Operator Instructions] Your Hills Litchfield with from first Theodore of line question comes O'Neill

Theodore O'Neill

David. much. the Congratulations very welcome on quarter aboard good Thanks and

David Gray

you. Thank

Theodore O'Neill

Yes.

some questions. So,

second about is My is question about question First margin. SG&A.

just running to to the supply supply inventory having bottlenecks. by in talked was to in logistic impacted that and expedite issues. was get know higher of you of around last on And chain that avoid remarks, some quarter into mentioned -- you mentioned were a the about hand level your chain these this inflationary trying bottlenecks, initially prepared you quarter, I logistic previous compared keep to fees year So, Q that margins pressures,

little you're So, the where more logistic about issues and talk specifically bottlenecks? both a inflationary the can you seeing

David Gray

Yes, Theo. yes, so -- thanks,

what same increase decide our the -- you and the So, the to the bit need to are place, same So, a to talk get little about an they suppliers, I coming right? expedite principally, inflationary and aspects sometimes, from to And in the logistic other price do pay suppliers want bottlenecks times chips, semiconductor is that. fee. --

price the left after price whether had are -- XXX What had up And were quarter these to So, about doing net execute were Hopefully, expedite cost in we bit inflation or I'll recovery, inflation we that with and improve, right? the XXX about of surcharges these David we bps. as instantaneous. going XXX on that then asked would recovery. last persists. bps. Kang moderating. recovery And how quarter, is And we us environment and bps our of what that of we talk second or Some the will say call of lines nearly look able we in we not mix little favorable they're a charges right? a that recovery, it or XXX And about our or business, increases, is and cost we forward,

little a time. takes recovery the So, of bit

recovery. XXXX. the And in be So, inflation, little there positive no our will color year QX more by we think given on fiscal a with net the change environment,

of business and our our cycle all our in. short -- business, which kind are really different cycles; three e-commerce price/surcharge cycle of business tied is we to Our actions have

is and and international we'll that we to start private our a quarter little lift have so Our mid business, then about mobile some to to out. going from work out. that that's or network or take that way backlog that place, in longer cycle its bit business, or which a long business network our get And in for takes in forward. that'll is -- operators, And progress a place play to cycle get

of kind we significant have cost -- highlights in that inflation the quarter. our So, did

not in that price/surcharge environment. for we offset to our be And inflationary helpful our we'll to next couple cooperation as a over think long incredible Theo? environment customers as the their the difficult able does the started have thank deteriorate. We of quarters, We to on execute fully Is pressures, recoveries. inflationary

Theodore O'Neill

helpful. Yes, Okay. that's good. That's

stay So, result or give you SG&A know idea, ago this a the which whether is for down? as I of about years but don't some go next since and down the qualitatively should of can give same you year the guidance was sequentially. at restructuring, not can rest SG&A, below you down about -- you question to I up coming -- least, rise through us about the you're talked an have continue

David Gray

has be little been our a in of to there expect We there historically overall bit seasonality as OpEx.

the the greenlit. be QX So, year. to point R&D said much from for restructuring that And into the should continue savings low projects the invest having that, get of we

what but out of be should there anything it that you we ordinary shouldn't have, So, haven't a be reasonable before. from the currently lift seen

Theodore O'Neill

Okay. Thank you very much.

David Gray

Theo. Thanks Thanks.

Operator

ROTH next Your question Capital. is from Scott Searle with

Scott Searle

David Thanks good And afternoon. for welcome congratulations. Hey Nice taking aboard, questions. my quarter.

David Gray

Scott. Thank

Scott Searle

in Just questions. to follow-up and to the dive prior quickly

private Looking how you your And at But was in there I'm pretty are in provide over was are what he wondering quarter, that's little a more in thinking gross moving going margin? on the was on, favorable more lot could there mix color, else kind like seeing directionally, if but in parts I June you're networks. if a something that assuming what bit you're that the go quarter, the get wondering constraints, the quarter, quarter, And concerns also December left as I'm in terms one, deliver that feeling ability kind are visibility front. September backlog also book-to-bill supply the that constraints, Also, of good the wondering were Sounds the given shells you those into supply the but about of wondering sequentially of in higher we of there you're how the and if have here near-term? are? any by table near-term? kind the to given on of the the

David Gray

North volume primarily the is off where Pete The private the mix driven, take anywhere by increase and as with American larger private networks else have dominate. Start networks evidenced in mix one. can next you

licensing certainly as some was big as that well. driver software So, well the and as revenue

to would So, in we so been didn't performing be to -- achieve. not that did able we have a million to say $X terms $X we -- that answer? would out million, of chain, And get supply revenue if we to Scott, I would what had better

Scott Searle

like quarter, okay. forward levels then they're feeling to December how inventory looking are chain, supply And directionally seem your the the you given

the with flattish they're quarter. June think I

concerns? in about Are you So, you're are there from that from particular supply progressed any standpoint? worried think directionally there? anything there things How a do

David Gray

Yes.

our give we're So, -- said, -- of you the chain, so folks if into I quarter, the that we'll quarter. the one-off out managing not a a on get next them starting industry. in that don't But supplier the components I be have will microwave that me better I'm impacted navigate thousands of but than But With lot the same, we at think radio to overall. one the then of positive of end better to and need because we single chain exception by supply feel a supply feeling supply go ability if feel come, a the of that in uncertainty get hurt. might if that neutral the we're let's to if doesn't the the we're event, also we we chain, slightly the

Scott Searle

revenue all to been geographic That's some that take to in great. mix, it of I'll Europe. positive hasn't just a Historically, neutral on bit wins some in sounds like for big get long. little base you you guys. a Pete, the day digging start

you a they that are do that what conversation showing or we've what's of not little And on wildly a up? terms showing what for elaborate So, you? on Is can bit seeing there, in the in they going wondering bigger I'm the you into if maybe opportunity up -- pipeline?

Pete Smith

European airwave win that the shareholder that So, in U.K. letter that's in was our

Europe that upswing. changed year the on a building leadership EMEA is region, over think in we ago, funnel -- a we leadership and little Our the about the

very X operators. with good networks Tier to Europe our So, private respect we about feel and

share a to see we and cycle think our And is funnel, Africa, bit we that Eastern the in that the And that don't going and doing Europe, and be. well, to job we we Asia-Pac with those then, Latin conversion little rates Huawei good there. what to opportunities a and Steve's be respect gains, how going America. in So, know -- know

in million our opportunity other opportunity of us have funnel, We -- a folks. $XX of and is this to bunch this new is

and play Huawei hold there a and the the are now -- of dynamics going So, to But know how we what don't be. to time and on, had bat. going stranglehold Huawei to are million $XX formally, competitive up getting we're is -- we're out, lot

that couple quarters, over share we're So, we hope about the about talk can there. we next and some gains encouraged

Scott Searle

could, Very I lastly, your XX. Great. ARPA lot funding dig you've on I believe the of of helpful. yet. if related not really And just a commentary that funding has to top released in been got to XX

So I'm to to should come benefit that the that all benefit you're XXXX of the in of seeing actually calendar Thanks. if expect wondering, start timeframe? or we

Pete Smith

positive We that as that year got funding in -- catalyst yard I yes, hits. a would calendar you've up think be XXXX right, the

Scott Searle

Nice so Great. Thanks much. quarter.

Pete Smith

Thank you.

Operator

next B. question from comes Your Dave Riley. with Kang

Dave Kang

you. regarding Thank I chips. is afternoon. question guess first Good my

the been stabilizing, hasn't still case? were quarter, you inflationary lead out the stretched changed you then? stabilizing that or -- pressure was last times Or thought that last because months. mentioned couple things of So that pressure since has in Is the

Pete Smith

some guess think is a and right? the when folks for CEOs read as worth literature. to I Yes, all it's this can semiconductor is. and you last -- the positive of my same companies I the asked guess I and to have take listen And think whatever this right? do And all me better, it neutral gets is quarter,

through Lead of comes is guess. season we're would April. improve but we though, that's from I environment the And that are to and the we've stability. neutral after my just not Year, Christmas and Aviat's worse. where positive had starts New we of getting stable. think get couple times Chinese as in environment exposed I say, the the months After a

start suppliers event, So will But we said, has of think that exceptional to get hurt. there with if we it better. our an should be should -- that one get

that we I'd give I to the so that's you. be all? help at Does but run business So could best that our precise, like can better, more information

Dave Kang

helpful. very Yes,

step for should expect outlook as neutral Just on situation But in the quarter, a gross margin, sort I you sequentially of know assuming concerned, flattish we even December so it bit the talk down? didn't little next of is margin What in about was terms about margin, we the gross down gross the quarter year, should kind second How should or quarter. think regarding about your far supply thinking trend we quarter. or first as a be of trajectory? maybe chain further

Pete Smith

Yes.

the any not up, to excursions, to going figure So going know be it be incrementally inflation have that and we start was to starting put processes last think much January to out, to pass surcharges. and our problem come, ready But on provided and didn't for in So is, right? were delivered. price going don't inflation how additional we with we're how should was we to it we how

So we're working through that.

be and So if we think tell investors We difficulty. want I mix that, as in this full price we in price more differentiation uptake what products, up. to inflation. is because you of don't should we Yes, then our be. the flattish work should we was tell our quarter, what our to cooperating we can't And next actions. But recognize on is customers I'd recovery and enough our can't I mix have are to offset going you get I tick specific our know to think like the margins

Dave Kang

products. was that you And Got you raised last your was said to as communicated did is, surge cause your they take go that of When up? a in it. And try sort when My customers? orders advantage before to prices on prices they that of done? question

Pete Smith

Yes.

around is the unprecedented. throw unprecedented. So likes this word -- is everybody environment to It

have our be bringing pretty for is, But ahead and negotiation say it's I've in for a a seen of we past not role ahead example de with demand And that pull I certainly price short-cycle familiar customers, increase. or then it that I that saw to done demand bigger single To our was where price my I'm -- that, we was point material. e-commerce of effective. would can't in so a in instantaneously. And was increase. a and to honest, minimis And

Dave Kang

Thank you. it. Got

Operator

Your next comes Northland. Tim question with from Savageaux

Tim Savageaux

Good congrats the on afternoon, and quarter.

I Let's think XX% to first we proximity about don't broadband little I what question, update guess, an or to guess out -- at I'll to promise, which and last broadband. month to the you're get number is couch are the you picked when rural bit I with broadband four magic revenue with talk might you regard of in forum, that been it rural my to to were Pete, our when going apparently, whether get we a wins following mentioned as sort you've rural up there, any more. think you additional busy XX, and had two of

you run in I considering position follow-up market I'll to you're guess, kind in as of Do think addressable rural achieving there look a share that And in out to milestone, addition at you the broadband. a second So talked or that, about a that above in you so that, and market now? XX% here.

Pete Smith

balance yes, investor performance funding I XX% us think should put of our flow and new takes it's the more trend we Look, our to hurdle. that a So close ARPA the quarters pretty share. with funding these hold. wins, XX% over couple ARPA up presentation could that estimate possible as in that is of And the we

there year by Tim? get -- not this and in I be sooner. it's the that and confident end think So helpful? I Is might it fiscal look, would said by we end if of right, the we -- of more would that year this we're that, fiscal be

Tim Savageaux

seems top wireless have all you that more, I that. number there got are to about those so XX sure is. X And could -- Got of two the you've ask and in there, in only guess, Question the from And the on overall be you to opportunities? after extent working you're ARPA funding on is, more to and received recipients, can some two, XX questions mean, too? award by those number the it. just guys total is like on which It terms talked one XX Or follow-up estimate access won one. the But wireless I of guys? I'd I'll that, it front then this ARPA? and question fiber fixed you've XX

Pete Smith

No.

the but in you, get because how there -- tell And let question out about go are the top and some the can't XX. fiber, guys never get should your we we other many of me we can figure While funding of so that they're estimate you back received.

that, we'll as We action. haven't done that an but take

those fair questions. are So both

Tim Savageaux

internationally. think I Yes, that's and doing, shifting worth over

You Huawei. metrics, if kind of mentioned are thing But to order want these out is called know, any out are booting locations based some international out don't that of a pretty quarter. the did, that if I the you throw interesting book-to-bill you've but strong would not you that be great. on locations that legendary for

about large -- a talk maybe Tier that's so about not all talked it. And X them very of when you

want the again, bit of we're that So or about locales that, into when given Huawei you gain. Can I talk moving out, that are it's more best. the like you dig a Japan, you that -- more be when areas share been granular dynamic not explicitly about talking about Western the that Europe, or probably hanging of put some kind areas the on U.K., the have that or they're to

So and there's and we'd if I'd more guess, the competitive game the share love that? Huawei, hear wins? of say hand, outside other, I on about another to are wins one not on political those dynamic

Pete Smith

ask question. So, hard you a

mixed. decipher. us both process, supply to asked the or politics whether the voice our And the chain? engagements to customer of it's for answers or So we difficult in are are due dynamics, And the

replicate we get the And as it's we then they're -- we getting the that. dynamics understand that And kind politics. the supply on to chain, long answers. little know, up that it's both want sometimes we're a to from. day, more And color as are we But of indifferent Sometimes it. try end we for of at so can and where coming

is strongest. our high internationally in value cost, proposition is because total ownership with spectrum regions that multi-band are and our strongest of Our have with cost

the where seeing we're Huawei with high seeing costs, And biggest environment operators supply or changing. the is spectrum the having So geopolitical the that's difficulty environment chain either opportunities. that are -- political are we

So to your responsive have question I fully or…? been

Unidentified Analyst

much. Absolutely. Thanks very

Pete Smith

Sure.

Operator

Your from comes Aaron next AIGH Instructions] [Operator question Investment Martin with Partners.

Aaron Martin

e-commerce the It's asked A a questions the Scott. But by much your those already, were of one in is Hi. to pieces If your three of AIGH. sort those particularly price preceding with of those revenue breaking buckets of in at the of revenue guards nice, look lot retained and through buckets market Aaron passing Martin much on out to increases. and of buckets? can your -- congratulations how how cut I revenue been in three each you

David Gray

kind is the upticks the passing is cycle additional the gross look and and biggest, business on our we margins in feel our it so price, going flat cycle, mix so Aaron, the for goes, why longest that's longest is of So shortest there's inflation, about good expanding smallest cycle. forward. is our biggest no

Aaron Martin

it. Got

the -- next on XX we the As of months, the vast but in to lead of to the over get business? because it's long gradual more going be nine majority as

David Gray

Yes. fair. That's

Aaron Martin

result? the past the the Got for it. it And book-to-bill was for above XX just months or book-to-bill, on the quarter a one clarification

David Gray

due typically we to trailing nature, months only Yes, project project XX fluctuations. talk the nature the and the about

disclosing, XX talk more color. going we’re comfortable was how over let book-to-bill our the what and that's demand a and difficulties at I'll writing look are we the we script, comfortable me supply are -- Whenever about give little to chain with And more But So I the environment. months. we here.

with a comfortable demand. of focus So management we're towards team’s is our delivery. team going -- And lot pretty

the about good demand feel we So environment.

Aaron Martin

on congratulate that more thing. back to Oh, actually And this on nice buying want Thanks. Congratulations I stock quarter. wishing continued progress. quarter. you Okay. one

Pete Smith

we Right. higher a at you. all I as was our thank say. trading Well, That's wish, should I'll than triggers.

Aaron Martin

No, to buying to it is back well, depressed get keep more.

Pete Smith

Very good.

Aaron Martin

Thank you.

Operator

Your comes next Hirschman with Partners. question AIGH Orin from Investment

Orin Hirschman

How increase to the Hi. you? trigger are You you have know.

Pete Smith

Thanks.

Orin Hirschman

on just you that's more do supply, was terms have not of have it would that any overall my in the personal if in have accretive shipped Well, clue was opinion. constraints there -- could much the corner? how the you business, But been

Pete Smith

million X million. I to X think we said

Orin Hirschman

compared private ago you side, of How the mind, network the characterize keeping of a to terms would keeping it. in in six the And ago? momentum that on momentum aside Okay. year or competition overall months aspect

Pete Smith

network the potential the are the momentum RDOF catalysts think same. -- I same. opportunities it's say If The the are doing and a there's and funding, job. build we private that I'd is around same. teams The positive Yes, great better.

So I'd with some for same the say, improving. it's possibility

Orin Hirschman

by Is Or the terms led dry anything of run there [ph]? customers in the being security? the drivers same for the changed

Pete Smith

No.

First our company, are principally Responder network customers networks. XXX private So,

would Secondly, be utilities.

yards, the market as be the would our water, are about that utilities, would with on with private is were more I be further they oil of gas. months six a for the long-term utility that improving the think but I third. would is wastewater macro say drivers small caveat and and security, one the think ago, sensors utility trend Fourth part be favorable focus really which business, same to demand network I months XX demand. would And

Orin Hirschman

tiny today, a developing I on me it's side, but additional software you the on That's least, know applications. going? can just not How's but update last I sales know going, whoever of And you're piece the how side. for FAS now. the of particularly that's kind for And Okay. that

Pete Smith

Yes.

we additional not mix more we in high was launch say routing positive was And software, but this software. due the for what released that availability the would was attraction in thing well, private would the there follow while and would FAS say, with problems. to -- But detail applications to but think is additive XX not we going we and the software business quarter could the that's ready we our is talk going and network would a cited that that And we're which a are mix to about mix standalone I on to next be positive we're and us. to help operator also to starting we small. it that last software part be favorable that's as would, find internationally of So was had to It's surprise networks. offering the our still a contributor FAS or and months solve expect

Orin Hirschman

much. And Great. thanks so

Pete Smith

Thank you.

Operator

There to closing Instructions] queue. like turn additional remarks. back I would [Operator no management over it are in questions for to

Pete Smith

your in your everyone support Thanks, call. and participation the Thanks. for

business. well. everyone. XX we a for quarter, And to foundation excited we Thanks, the the building talk can't executed future. about We're During our really again We're days. you in wait to

Operator

today's conference This concludes you. call. Thank

You may disconnect. now

David Gray

Stephanie. you, Thank

Operator

Thank you, sir.

Aviat Networks (AVNW) 4 Nov 212022 Q1 Earnings call transcript