- Earnings call transcript Q1 2023

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Operator

Good afternoon. Welcome to the Aviat Networks' First Quarter Fiscal 2023 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please note, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Investor of Director Fredrickson, Relations. Andrew Thank you.

begin. may You

Andrew Fredrickson

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

in find replay a can in updated our our XX-Q, at the presentation website press of IR along of two today's You www.aviatnetworks.com, section hours. release Form approximately investor with and call

the with followed today the review company's on followed are President results by With who remarks Gray, financial Smith, me CFO, and CEO, and Q&A. by quarter. then first quarter, our opening Aviat's Pete who David our on outlook, will Pete begin closing provide of fiscal Aviat's will will strategy remarks

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

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

supplemental which tables included at information. refer of and GAAP to webcast, www.aviatnetworks.com the IR website other Please section today’s financial GAAP reconciliation measures. call and is and non-GAAP in both during reference Additionally, and non-GAAP which financial available will our to therein, press release, our financial management

time, and to Pete over I President would turn CEO, Aviat's this Pete? like call to the Smith. At

Pete Smith

first for Aviat quarter XXXX. to everyone. Andrew you Thanks, of us results and for year Thank Networks' joining the review good afternoon, fiscal

was in significant the in for Communications. two first One, company a acquisition meaningful in over quarter Redline ways. our This decade we closed

We realization look the forward cost synergy are Aviat system. has so encouraged demonstrating by the value taken integration of far operating place and the and to that

Airtel our for our new customers brand XG Aviat. agreement demonstration win our This another we a leading and XG, chain the with Aviat differentiation of value of Bharti operating products to announced our This in and represents India, meaningful delivers world Secondly, system. customer services for services. through shows that supply products around and Aviat's

results of quarter our Aviat In last EBITDA fiscal year; which QX margin delivered first Gross of of represents points free XX.X% XXXX, increase of for XX debt quarter. last $XX.X Now, the EPS the the million, sheet. versus balance turning same year. year revenue to $XX.X expansion a million, versus non-GAAP year; of increase versus strong XX% period QX of prior XX%; of basis growth adjusted

has of come. for greater assets realized we reflect minimize to chain team despite the execution These part tax $XX deferred continued payments results of inflationary million As tax supply cash assets, will than years our Aviat ongoing and that challenges. to maintain

from benefits see and the to trends of continue networks. private We XG, rural broadband, three

the to next believe networks we mobile with growth and this to XG, We internationally related still XXXX. early XX business pick we XG over operators in X months. the to business of year In grow calendar network U.S., the terms days microwave into our of up and both head continues are Tier in expect as

of XX added more Aviat in ISP government with customers continues wireless the broadband, quarter. to segment than use The rural tailwind to capital On put a funding.

anticipation impact calendar of of fund spend indications the will to recipients RDOF that year XXXX, believe not the we beginning are funding meaningfully there against until company fund While distributions.

market a government. leader remain the private multimillion in large quarter very a and county win we large with secured Lastly, in a dollar networks,

deal addition our strategy to reflects software, hosted in and grow our offering, share network which this includes the routers microwave private In space. to of wallet

new we In announced products. two the quarter,

coupled multi-band and multi-band licensed will easily provides with network operators our cost buildouts. XX capacity. particularly vendor additional deploy agnostic which This the existing allows only an per up capacity to Aviat beneficial be solution, link multi-band complete of extended to vendor in recently, microwave enables from equipment solutions gigabits second. with network most single compelling First box, industries installed the microwave effectively when distance portfolio, This, which with legacy and to multi-band most XG the operators upgrade any and

running another need total solutions routing stack in radio portfolio, on lowering of eliminating all IP/MPLS, This the is step external for announced software full edge goal ownership. vendor new only be routing customers. Aviat's the is network thus to using a our the cost Secondly, to outdoor to availability expand with and software the platforms. routers, company to our integrated of that our deployed Aviat segment the enables

At quarter, the we integration Redline to acquisition. has the beginning Communications plan. The according close gone the of

from to fiscal just ahead one We remain quarter. contribution a we profitability perspective, have confident in breakeven revenue and adjusted year. we EBITDA and from provided cost Redline the our on in of schedule takeout fact, guidance hitting In are this previously business close

of see front, there the improvement. peak of Allocations half we shortening. chain key Lead decline are are batteries, level. are still We logic, supply have face now for continue but in improvement are now to specific events. and challenges, to times continued rare areas components and opportunities analog, crisis of programmable the On cables. Decommit antennas,

$X the our issue products. Redline's revenue from access supply and logistics came supply significant million. A quarter, of portion the impacted approximately by In constraints

there. implement operating will the we system, Aviat As improve we

our the half will and results year. to result As in issues, are the begin Redline over plan this supply show base this Redline of back the we accelerating to a manufacturing to expect that of move products Aviat

In summary, challenges. face an quarter perspective, the in this operational from was ongoing solid even of

significant three differentiated our and XG, products, growth drivers, well-positioned leaves our private and opportunities networks to with broadband grow software rural to services continues backlog and Our capture offering. Aviat

With David? comments. for me to before David to that, our turn coming financials call some let final the over review back

David Gray

and Pete you, everyone. good Thank afternoon,

will I XXXX fiscal in noting today, afternoon. financial review found our press filed be remarks my of detailed the highlights, release some this key first our and financials quarter can During XX-Q

reminder, discussed between As noted unless quarter fiscal the fiscal today quarter XXXX are all of first the comparisons a and XXXX of first otherwise.

$X.X revenues period America, by was revenue, well For as million. as first total XX.X%, same revenue and we the XX% revenue strong or increase American reported of Redline for North driven growth million quarter, the in to $XX.X comprised acquisition. was $XX.X year, compared million, Latin million million $XX.X which and of last international an for total contribution Asia-Pacific the first quarter $XX.X from the as

which We quarter started fiscal continued our ratio above in book-to-bill four trend one, XXXX. of trailing

improvement Gross accretive the and from and both The margins as prior on year. were contribution by non-GAAP and GAAP inflation gross fully a compared actions XX.X% margin the quarter business. GAAP XX.X% non-GAAP of resulted Redline the in basis well being for as XX.X% for the to in as pricing offset

related one-time the First quarter the of costs. Redline were of increase million as as GAAP M&A year, including from operating well expenses, $X expenses operating acquisition $XX.X charge prior of restructuring a an $X.X by driven million, million

from and basis, First costs, share-based Redline quarter to continue from restructuring like the an aggressively. year $XX.X acquisition. non-GAAP for costs compensation On million. the charges, the manage were primarily expenses, operating prior deal exclude impact like $X.X a increase is This due which we million of to

Canadian First provision legal liability quarter to restructuring. tax year. last $X.X million to deferred due compared entities tax million increase million to related recording was $X is $X.X The a

The As foreseeable payments a reminder, tax future. not the million the has will taxes NOLs value $XXX continue cash tax provision minimal paid. to via in year-over-year will increase of company cash our generate that for shareholder over increase

of loss an of and net quarter $X.X gain $X.X income first quarter. net liability, compared $X.X million, $X.X decline those of recorded $X.X from of recorded million last as loss securities related GAAP resulted on million year. million GAAP tax securities marketable deferred million to value to and in $X FX the the restructuring M&A of opposed last a million The $X.X We million decline to expenses

First the restructuring period year. compensation non-cash income, related and was compared $X.X which M&A million charges, excludes same quarter tax provision last to for million non-GAAP net share-based cost $X.X

share same $X.XX non-GAAP $X.XX Redline year, a quarter was mildly acquisition per came dilutive last the by at in XX%. First compared fully period to share basis EPS for half to on diluted per cent. QX in an one The EPS increase of approximately

quarter was slightly XX.X% the was The XX% QX for million, for EBITDA to EBITDA Adjusted our million ahead accretive Adjusted the were plan. from acquisition $X.X of quarter. increase prior of the or margins Redline $XX.X year. an

Moving balance sheet. onto the

spending prior to and from quarter, the to the Our marketable quarter derisk the of acquisition, related strategic Redline supply cash restructuring million securities chain. first in at $XX.X investment and due the primarily the inventory were continued $XX.X million end

to impacted were certain by collections emerging availability since markets, cash ForEx which started in reverse. customer Additionally, has

have balance to well-positioned debt no continue our us very solid to on long-term our We plans. execute leaving sheet and remains

back I it comments. With will that, to Pete final Pete? for turn some

Pete Smith

Thanks David.

Q&A. additional will XXXX. and revenue their as that our opening for it a year before X is few This We the mix grow good a where American we of in international North buildouts. to QX. example start XG The network fiscal operators in investing seeing up of Tier anticipate a portion result mobile business is Just Airtel XG comments a both expect win of this, network route fiscal

assured, opportunities have as these volume to we outset, assess margin than advanced our will lower The improvements. up Rest we these goal. the margin secure these key Aviat gross long-term opportunities present, revved Aviat's wins, margins. EBITDA average the At operating system growth be that

meet sheet also position and us challenges plans. strengthen I has us chain has acquire take execute enabled balance over market the which has in and strategic rapidly customer allowed two as a how our navigate us commitments to us helped turn to This leader. Redline years, the to supply It share. to our last strong the given restructuring to want emphasize flexibility Aviat's

over and such in next-generation a purchase for then on to and that MaxLinear from stack software partnership, million We our have routing partner made Metaswitch to control as system investment will $X.X come. chip take our technology years Aviat our benefit investments

leverage continue to We and investments benefit healthy to will opportunities balance organic further that to growth make shareholders. sheet in both inorganic plan our

team the of in Aviat the We and markets. are the its encouraged work outlook for by and our results, hard Aviat dedication

the to profit top million, and the XXXX of environment, revenue to year be fiscal to on $XX of in and $XXX range an the $XX including be Based three We end our are for X for revenue and EBITDA range XXXX fiscal in the we raising year uptake now $XXX guidance. to million. XG demand of adjusted million see Tier million demand, in strong

call that With open the let's for operator, questions.

Operator

Instructions] [Operator you. Thank

Capital that Ross Searle Partners. I'm question I sorry, with have Markets. ROTH first The from Capital is Scott coming

Your line is open.

Scott Searle

gross trend how on kind in should be of heard Hey, come the good taking to like? I margins Hey, maybe impact for questions. think and to blended point confirm And of and we million as how about the you're gross into seeing the just quick going lower I to Thanks the costs margins, XXX that as December the overall related basis that, that Want dive mix, incremental logistics to go real margins, Pete, quarter. quarter impact India in to afternoon. quarter. in what are that gross look starting part we thinking into $X

Pete Smith

All right.

more was So, the -- can progression. that the so margin gross was that comment David on made in margin, around the but a mixed the remark X.X we revenue, that deeply

David Gray

Yeah.

year. basis. in pricing the we the So actions And diluted. and of made kind saw more some all pressured, you then, our get not we mean, line have a kind number our of, take by I improvement slightly that with the little the Airtel and were quarter be but looking balance with offset dilutive, announcement of than the margins up we them out have some show Still to in that'll made able increase then, dollar in think, that that, the sales by -- is expect of quarter But more some given contribution the what of of results. Redline the chance we bit was this to up I so inflationary that the forward, on to before in having they're a one quarter, in costs cost be

Scott Searle

how starts could are the you raising We're Gotcha. your you're Airtel or fiscal where seeing but year sequentially It in fiscal how second heading Redline if us you the quarter, wondering end with into guidance. to in that first particularly progress, Helpful. quarter. And things directionally, I'm what was sounds of kind Redline? Pete, contribute of Redline the sequentially. calibrate the looks maybe just quarter, December only like top

Dish They're there. of terms in And bit a are items going meeting then their network. on requirements lately other their been catch buildout XG playing a has some up. lot for in there little the news of

guys as I play there. You starts to have imagine participating been well. that

about kind with and into those how of So go be should we progression factors, all as thinking we of March? revenue December the

Pete Smith

Yeah.

So, progression is it, reason eased principle going be the I were And the it that ramp about supply earlier. shipments and I I think, it make the we're we might year. chain wrong if about to the overall able means that, up wrong -- to through if am and and is,

ability QX, that I We're the And ship be is we're that QX, we allocation have, what think, progress. a on to we'll we'll to sooner. so have supply then So, June build. more If -- profile it'll QX, if chain going call I environment. QX, ship eases, to or July improves not the the because and that cycle, the

to quarters. the this the way progression a So, four is model over

million. -- think we peak that quarter. said will the announcement, Redline's to that. the life Dish the go QX, and And contribute And $XX would is announcement if the We've probably beginning over said really to it -- -- to right And back quarter Dish not of to bellwether our for going is of $XX say million October on be I you the on by model a will December stick fiber now. March the Dish to then, program Dish, our We we quarter. we January in would was to revenue focused

that color Scott? helpful, Is

Scott Searle

quarter, million coming Ceragon I if get you operators but spread magnitude across I'll the example, that's a and lastly, opposed at, just to for for could there's size in then think look helpful. cycle what I buildout here. was But two they're of back big $XX a doing, and roughly us doing And Airtel. but Airtel? queue, we could, as the Very if frame historically

expect up if that's wondering I'm seeing going impact it as annual Thanks. of the as framework and front. to then And of a starts So, give you ramp that we currency an maybe what that kind just basis. on could impact on well, on of you're kind the

Pete Smith

we're not in it if -- can numbers, Yeah. could we you the have put specific would've press over -- life So, as of but allowed model we look, figures. the the this release eight

David Gray

Yeah.

Pete Smith

be reasonable. would So that

David Gray

you're know? regarding to Scott, in then, specific you currency. also question asked And Anything like a that you'd

Scott Searle

Yeah.

be denominated. dollar? to idea going strength If and top you could outside just the your of you about the forward structure putting about that gross expense should the U.S. kind of or we thinking your give Do how have exposure problematic then Thanks. on most pressure us are that contracts margins? an your of additional dollar kind of, Is how or with line,

David Gray

Yeah. Gotcha.

currency where is part, well. over as And XX% countries also we're invoiced So, local of revenue our services in USD. our invoiced of in are most that's in the local incurring for the in currency is COGS services. revenue cost Where for

So, there's a matching there.

our lose So, out we don't margin.

devalued that the gotten with that's non-GAAP we part, our stronger. charge some the where well dollars are having, get the the you I U.S. for But most obviously, amount margins. down on are receivables as protected we in see think reconciliation. And However,

And we currency U.S. strength the been a did obviously has exceptional -- dollar constant on basis.

million XXXX $XXX,XXX higher, used were $X.X we used about our -- revenue you and a to QX FY would've been if quarter, higher this of rates quarter-over-quarter. If have about

margin-wise balance extent So, sheet, we're been we're the the to an certain steps protected ourselves to a to there taking exposure-wise, hedges protect but natural has impact, and create possible. from

Scott Searle

Thanks.

Operator

you. Thank

David Gray

comment other one add have currency. on I to Sorry,

on expense is a as U.S. R&D opposed weak bad, of -- do all spend have from we some the euro, to the get well. denominated in a side dollar stronger As a so benefit our portion do fair we

ways. does it kind So, of both

Operator

you. Thank

Our Security. next question moment. Eric will One JMP be coming from of Suppiger

Erik Suppiger

Thanks the for question. taking

network in any off, but the seen of holding and slowing. too First XG broadband terms much, private economic in markets up or impact, any changes? have not comments economic in around rural changing probably the any what Presumably you

Pete Smith

our been networks. is We background America dominated which North is never in by higher, private --

spends the Tier reading players. microwave a On the little of is that. bit sure a decoupled lot We CapEx XG X I'm the from from are investors side, --

feel -- us. -- we of right? So, in that funding, in we script the is environment said And seen haven't we catalyst that demand it's steady, that come front like for be on see we're rural would So, XG the broadband, the we from RDOF the positive but steady. to

spending, and -- and be see both city still there. government robust. then, So, bolstered U.S. when in, in the to XG, we did and looks demand. state We that. kicks international dive networks, a the RDOF we U.S. expect on deeper And growing Private

see we So are things good.

want that as reliant is could interest that rates on demand a be hurt. the foreign you concern, U.S. up, If exchange go

-- figure trying to trying So and we're dynamic a pretty that we're out. problem that's --

Erik Suppiger

Very good. Thank you.

Operator

moment Thank our next for question. you. One

question from is Savageaux Northland next Our coming from Tim Capital Markets.

Tim Savageaux

also at X Take swing here, afternoon. been Bharti hitting good broader Tier Pete. another XG of you've here Hey, situation maybe themes the context the this, kind of in and

just a to there's to that in sort of I big that estimates that There's cost? to bit potential a percentage spend would well. Bharti some there fiber of their you on get network RDOF low what contributions of always there in assume about of So, total? going rum in sort And provided pretty fair digit about decent a any numbers, although pretty a the lot the at sort XG figures? out single build us deal total is some you've as of size mean, of taking metrics I guess, is specific bit wiggle that of in an past the annual question, to is same trying comment in utility eight is there this fair there or

comment little tops adjusting about down, of versus and market two you. on total the to to think ways second. microwave follow-up have opportunity and specific thinking on for I And want just fiber your your versus that then to other or about kind clarification suppliers in a share what or So maybe go that then

Pete Smith

Yeah.

So, in that versus remnant our mean, investor overall, that XX% I we I deck. the in with XX% think, view the fiber. copper. and the microwave is is some rounding is satellites that chart of And -- bottom

domestic number months. in critical, really say over our visibility critical let XX to the Airtel, chain versus that would how is our right? we So, say, competition. on -- our supply Meaning supply that a is have, performance What's really XX the what well next how is I chain And competition. much the basically they're

I ourselves. distinguished think them. the we allocation of a is, components on we've we're growing problem But still have and the we variety forecast past gave

time, So, on number can bigger. if work with suppliers be can deliver then we our the

So, we're work there's happy that on a more. And inside focused with Aviat or? the helpful we of win. Is can of win lot how

Tim Savageaux

would India? that pipeline, in to a what to It you just many since be going and is. question And And -- guess America then, to ramp take at are guess mentioned also relative I that well. -- Well with more your kind pursuing? look there talked about say, how can you're be, my to was, seeing on my as be going if you side extend was might you was opportunity XG to you your Airtels traditional the had size of in that there how North question I you some out it I you or original customer will

Pete Smith

a are I we're what's tele next top not we bigger -- that is -- of kind two But global is year, player, India So, those of top have would it's Airtel in pursuit. there. telecom in five so say -- five there's -- there the many in out and active a

So.

Tim Savageaux

of like if rate on could expected contribution issues. you half $ the have should the sounds might know kind least was, run supply you Can expected? primary about And of there? what bucks. a if revenue flat specifically think is of the supply Okay. a revenue source the Redline, that Great. at were out $X that call follow-p applies we we I I you I it million million annual about contribution mean, impacted,

David Gray

provide total the -- about revenue. that, a the A happened. I to feeling detail $XXX,XXX to we X% going with It right? but quarter, that, have to just sale. million perfectly QX, $XX not the It's we're issue supply think previously than continues. had not higher it the little more under So, just integration and loss upside right? there's we'll could mean, was we as of more push But been the guided, potentially comfortable certainly our that's in

Tim Savageaux

much. very Thanks Great.

Operator

the Thank you. next One moment for while prepare we question.

Next of Widell Ethan coming Riley B. from Securities. question is [ph]

Your open. line is

Unidentified Analyst

Hi, you the Ethan taking could Widell if color for provide wondering in for XG calling was Thanks this in I we question. Kang. where my me on additional cycle. Dave think you are is

XG Thanks. I think you the front CapEx that was deployment? you us. mentioned spend in peaking of anticipate when is You the wondering spend for

David Gray

Peaking.

XXXX. So, in an North acceleration we that see in we that Asia-Pac. see calendar see Africa, we see through America. and -- in We see We that year like

So, the operators are notorious.

We are not rolling everyone else's out according plans. to

I So, some XXXX. that expect into to hangover of

So you peak, answer. year to want on look, than that's me But But my I am. like that XXXX. call you the I better that answering questions fly if be it are would speculate guys would calendar

Unidentified Analyst

Thanks. the somewhat do That's on of is anticipate helpful. private a really similar? do Or think longer seeing is -- tail side? you timing the network you kind And

Pete Smith

a tail. of from backlog, two-plus-years. has because our six bulk long private networks go months It drives the projects The No. to typically those

cycle pretty we're business. in a for never And -- been private our has So, the that's excited, networks better. particularly demand steady because America long North

Unidentified Analyst

you. That's great Thank hear. to

Operator

prepare William while question. coming we Essay moment go Woodrow. question our for One you. Paul Please next our from ahead. next And of Thank is [ph]

Unidentified Analyst

taking Thank you for my call.

it reconfiguring Europe? talk all, into the want Metaswitch little I play business. how to with for about the bit this? are would router the utilities, Where a trials, of you field with And First with

Pete Smith

not trials -- Europe. But here's disclosed So, in aware, that could what any Paul, I say. what field we've utilities I'm for

Metaswitch and good. a network the the engaged significant building. -- economy XXXX. that's The win funnel of bring We help principally in will to from for had back are we our are operators. customers mobile software emerging XXXX We a with CTR variety And CTR we edge, while that's that with IP/MPLS And us that. and routing a is platform, on

So, that's could I say. what

gives software tailor network think, I customers and need a for an a infrastructure. ability stack us IP/MPLS specific to their

Unidentified Analyst

And reconfiguring, when ready? Europe, Okay. will router be for the that the

Pete Smith

our we Well, on the the and months, platform, -- Europe. be next our -- IP/MPLS release would appropriate that as over router XX will we for

Unidentified Analyst

Okay.

Okay. replacement you've Maybe And million know in Europe, changes then the business. got Business is months funnel on about kind address of what identified picking I there. and some small. up, but leadership in pipeline know you you you the $XX can like next and Can the looks there. made it's might AirWave that over in still we I sales talk expect very XX you've what Huawei Europe?

Pete Smith

it's of to And our how give guidance that. of nature have we've remembered overall to on and is you predict it's significant of -- that's plans. Well, We have in over AirWave. And that $X.X what operators we customer a don't of year-over-year basis million sorry million. anchor largely all size we that the Huawei million growth do a think And certainly funnel. because from going last $X.X $X.X gain the But project business. the on of we've share I doubled -- nearly network do a to -- convert are our hard precisely year basis, region-by-region what disclosed the to part

Unidentified Analyst

Okay. Last question.

can we going margins and expand margins? service in significant were continuing the quarter. something fairly count an forward Is that on is those Your abnormal, to up that or

David Gray

Yeah.

-- costs the align. healthier around They with in even based of healthy mid mid bit little just typically to field and hope were But I on they it But the QX future. be think, would forward the and this makes think, of when we in focus quarter. as I choppy. service the a thirties, going were nature it obviously, I certainly project we've should thirties Pete had, was about that kind that improvements talking the stars upper

Unidentified Analyst

very Okay. Thank you much.

David Gray

would I it fairly be consistent. -- should

Unidentified Analyst

Okay. I had. all That's

Operator

Thank you.

from be Litchfield next one our question next next coming I'm sorry, our question. Our for will And of Theodore question O'Neill -- moment, Hills.

open. line is Your

Theodore O'Neill

Thank very you much.

is just in Pete, Airtel is countries contract, So, in just The that that or opportunity Airtel for clarification. in? XX all Airtel they're India,

Pete Smith

No.

India. Just

Theodore O'Neill

in out MaxLinear, how it? Okay. trying collaboration to goal And being single chip how performance -- functions chip, some there of other with And is multiple is you're is the combine funded? a the is or that get to is it the it --

Pete Smith

It's time. being via sheet balance funded our over

easy so and the the are the the -- of innovations capacity, we're sizes, that bands, the bringing on frequency channel the So number course. that's

to the that So, significant kind XX, innovation, driving going to nanometer deep that of up set XX out, think node, we're the categories we on give have power be that's and lay us we will advantages. we'll microwave semiconductor to this, And when areas, remote at know power we you start as is didn't realize increasingly compelling maybe in first towers but started looking this, -- we consumption you up put a consumption differentiator.

Theodore O'Neill

Yeah.

and -- was if because we're you've than using -- only I wondering Starlink? better Starlink had performance any back have is, haul question you now Comcast, we're here with last my And finding Okay. opportunity if

Pete Smith

knowledge. None to my

Theodore O'Neill

Okay. Thanks very much.

Pete Smith

Thanks.

Operator

Thank you. of Orin Hirschman And question be from will final coming our AIGH Partners.

Orin Hirschman

the on Hey, Orin Congratulations progress. Hirschman.

trend? airways higher with stream the wanting private video use Just doing capable move noticing on private it's capacity the particular, network difference on they've off networks, or in terms more into of of in as on in capacity any you're on terms that's comments people Whether bought beginning what Redline the video terms business, the of private in the, fit end people radio to that accelerate your side? overall the that, that to

Pete Smith

and when upgrade use largely cases, that's translates works right? video and is So, with capacity, us we way those the video think, that I an get to project, out. driven, app those we it's So, -- perform in well

two or think, as need hypothesis. an quarter another a asked and technical But might the we that be what in also You about have certainly Redline we I look to at offering. synergy

will understand we two, could well it or and describe investors. for to So to enough forthcoming as we -- if quarter be be another you more patient

Orin Hirschman

Okay. Is that type is you the deal? recurring a side, the state for software that government SaaS contract mentioned of on

Pete Smith

portion hardware that that that, believe the Yes. software both And SaaS. and I software. contains drives some

Orin Hirschman

customers, look, say, buildout two self-serve and terms at hit it et progression? so the just that area, look last real quarters next of buildout kind how three growing of rural the it's the I of terms in we're cetera, in revenues, still your rural RDOF or in to and did funding? from And just of -- inflection, let's speak, Okay. plateau portion the some if Did the for waiting the or

Pete Smith

of I at last -- -- year, end break of said we're because about remains We're we said was catalyst that -- we the things a year, about out of waiting of based broadband revenue. these And business. RDOF project the revenue. X% of end end would the At rural And so, at funding. X% say we deposited for it the was we fiscal of are it

Orin Hirschman

terms getting point is it a going break the of way so we have go in we're in And or where to out, Okay. long to you're still if to insight? --

Pete Smith

Yeah.

embedded So of the breaks lot software We look that a sell embedded no question, we look for -- software. and about software, software. peer talked we companies the one embedded out

a to standalone On have software, the long way we go.

embedded [technical suggest to we'd any have about much hardware. report, the peers that's that right difficulty] as to would break out as software, don't we like because the So, that way

Orin Hirschman

much. very Okay. Thanks

Pete Smith

you. Thank

Operator

call back like Pete. Q&A our for concludes turn session today. I over the That to to would

Pete Smith

on the joining We Thanks you everyone. interest in updating days. approximately in look our for your forward call everyone to Thanks progress and Aviat. XX

Operator

Thank you. conference That concludes call. today's

all everyone a and connect may great evening. have You

Aviat Networks (AVNW) 2 Nov 222023 Q1 Earnings call transcript