Aviat Networks, Inc. reported revenues of $88.4 million for the three months ended September 27, 2024, reflecting a 1.7% increase from $86.9 million in the same period of the previous year. Product sales contributed $61.1 million, up 2.6% from $59.5 million year-over-year. However, the company experienced a significant decline in gross margin, which fell to $19.8 million, a decrease of 36.6% compared to $31.2 million in the prior year. This decline was attributed to changes in customer demand and expected dilution from recent acquisitions.
The company reported an operating loss of $15.6 million for the quarter, a stark contrast to the operating income of $4.9 million recorded in the same quarter of the previous year. Net loss for the period was $11.9 million, compared to a net income of $3.6 million in the prior year, resulting in a net loss per share of $0.94, down from a net income per share of $0.31.
Aviat's cash and cash equivalents decreased to $51.0 million as of September 27, 2024, from $64.6 million at the end of the previous quarter. The company also reported an increase in accounts receivable, which rose to $169.0 million from $158.0 million, and inventories increased to $79.6 million from $62.3 million. Total liabilities increased to $343.7 million, up from $279.3 million, primarily due to a rise in long-term debt, which grew to $81.0 million from $46.0 million.
Strategically, Aviat completed the acquisition of 4RF Limited for $18.2 million on July 2, 2024, enhancing its portfolio in industrial wireless access solutions. Additionally, the company finalized the acquisition of NEC Corporation's wireless transport business on November 30, 2023, for approximately $54.5 million. This acquisition is expected to bolster Aviat's position in the wireless backhaul networks market, with revenue from this transaction contributing $25.0 million in the latest quarter.
The company has also initiated restructuring plans related to these acquisitions, with an accrued restructuring balance of $1.6 million as of September 27, 2024. No shares were repurchased during the quarter, leaving $6.9 million available under the stock repurchase program.
Overall, Aviat Networks is navigating a challenging market environment while pursuing strategic growth through acquisitions, despite facing significant financial losses in the recent quarter.
About AVIAT NETWORKS, INC.
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