Aviat Networks (AVNW) Q4 2024 earnings summary

Executive summary

• Q4 revenue reached $117M, up 28% year-over-year; full-year revenue was $408.1M, up 19%.

• Pasolink acquisition contributed $25M in Q4 revenue and was accretive to adjusted EBITDA and non-GAAP net income.

• Integration of Pasolink and 4RF ahead of plan, strengthening international business and product portfolio.

• Cash from operations was $8.3M in Q4 and $30.5M for the year; cash and marketable securities at $64.6M.

• Private networks business saw record revenue, with increased market share and a significant statewide win in the U.S.

Financial highlights

• Q4 adjusted EBITDA: $11.9M (10.2% margin); full-year adjusted EBITDA: $48.1M, up 6.4%.

• Q4 non-GAAP EPS: $0.72; Q4 non-GAAP net income: $9.2M; Q4 GAAP net income: $1.5M.

• Q4 non-GAAP gross margin: 35.9%; Q4 GAAP gross margin: 35.3%.

• Year-end backlog: $292M, up from $289M last year.

• Cash and marketable securities: $64.6M; net cash position: $16.3M.

Outlook and guidance

• Fiscal 2025 revenue guidance: $450M–$490M; adjusted EBITDA: $46M–$52M.

• Revenue expected to build through the year, with Q1 lowest and Q4 highest.

• Gross margins expected to improve sequentially through fiscal 2025.

• 4RF acquisition expected to be accretive to gross margins and open new addressable markets.