Aviat (News - Alert) Networks, an end-to-end network management solutions provider for mobility and fixed network applications, announced financial results for the fourth quarter and fiscal year 2010, which ended July 2, 2010.
The company reported revenue for the fourth quarter of fiscal 2010 at $116.3 million, compared with $135.2 million in the year ago period. It recorded a net loss of $88.8 million, or $1.49 per share, compared with a net loss of $3.4 million, or $0.06 per share, in the year ago quarter.
For fiscal year 2010, the company reported revenue of $478.9 million, compared with revenue of $679.9 million in the prior year. Net loss for fiscal year 2010 was $130.2 million, or a loss per share of $2.19, compared with a net loss of $355.0 million, or a loss per share of $6.05 for fiscal year 2009.
The fourth quarter results of fiscal 2010 include $71.1 million of impairment charges for intangible assets and property, plant and equipment. Cash equivalents and short-term investments were $141.7 million, compared with $140.5 million in the prior quarter.
Aviat Networks generated positive operating cash flow of $6.5 million in the quarter due to continued focus on cash management during the period.
“While the overall economic environment had an adverse impact on our business in fiscal 2010, we have recently begun to implement significant and meaningful strategic and operational changes that will allow Aviat Networks to stabilize revenues and form a foundation – based on our core competencies – upon which we can resume profitable growth,” Chuck Kissner, chairman and CEO of Aviat Networks, said.
In addition to implementing their restructuring plan, Aviat Networks has finalized several aspects of their strategic plan, Kissner added. “Where the restructuring plan reduces costs, streamlines our business and restores future profitability, our strategic plan refocuses our programs, optimizes our product portfolio and prioritizes key markets where we have a competitive advantage to drive long-term sustainable revenue growth.”
The company recorded a non-GAAP net loss of $7.5 million for the quarter, or $0.13 per diluted share, compared with non-GAAP net income of $5.1 million, or $0.09 per diluted share, in the year ago quarter.
Revenue in the North America segment was $38.1 million in the fourth quarter of fiscal 2010, compared with $59.4 million in the year ago period. International revenue was $78.2 million, compared with $75.8 million in the year ago period.
“During the quarter, as planned, we implemented a change to our revenue recognition standards, ASU 2009-13 and ASU 2009-14,” Tom Cronan, CFO of Aviat Networks, said.
In addition, the company also incurred several charges totaling $83.5 million, including $75.9 million related to intangible assets and property, plant and equipment and software impairment charges.
“With these changes and charges behind us, we can focus on executing our strategic and operational plan for fiscal 2011,” Cronan added. “With our new operating model, strong balance sheet and consistent cash flow generation, we believe we are well-positioned to resume profitable growth once our restructuring actions are complete.”
Aviat Networks has identified several elements of its going-forward strategic plan, which will be complete in September. It has established four key objectives for fiscal 2011 to improve operational efficiency, improve its ability to serve its customers as a strategic vendor, focus on innovation in the company's areas of core competency, and achieve profitability post-restructuring.
The company plans to accelerate innovation in wireless transmission, including microwave backhaul, in order to extend its performance leadership over competitive solutions.
Aviat Networks also plans to realign its WiMAX (News - Alert) business to become more complementary with and integral to its wireless transmission offerings. It will expand its solutions orientation, increasing focus on its services business, specifically network operations management and network design and installation.
The company hopes that revenue will be in the range of $100 million to $120 million in the first fiscal quarter of 2011.
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