Aviat Networks Reports $434.6 Million Revenue with 6.5% Growth, Decline in Net Income

Aviat Networks, Inc. reported a total revenue of $434.6 million for the fiscal year ending June 27, 2025, marking a 6.5% increase from $408.1 million in the previous fiscal year. The growth was primarily driven by contributions from recent acquisitions, including the NEC wireless transport business and 4RF Limited, which together accounted for approximately $126.8 million in revenue. However, the company experienced a decline in net income, which fell to $1.3 million from $10.8 million in fiscal 2024, largely due to increased costs associated with higher volumes of lower-margin sales and a significant rise in interest expenses.

In terms of operational performance, Aviat's North American revenue remained relatively stable, increasing by 0.7% to $207.6 million, while international revenue saw more significant growth, particularly in Europe, which rose by 28.9% to $31.7 million, and Latin America and Asia Pacific, which increased by 13.5% to $145.9 million. The company’s gross margin decreased to 32.1% from 35.5% in the prior year, reflecting the impact of lower-margin sales and increased costs. Research and development expenses slightly decreased to $35.8 million, representing 8.2% of revenue, while selling and administrative expenses rose by 5.2% to $89.5 million.

Aviat's strategic developments included the completion of two significant acquisitions: the NEC wireless transport business, which was finalized on November 30, 2023, and the acquisition of 4RF Limited on July 2, 2024. These acquisitions are expected to enhance Aviat's product offerings and market position, particularly in the industrial wireless access sector. The company also continues to invest in its e-commerce platform, the Aviat Store, aimed at improving customer service and reducing operational costs.

As of June 27, 2025, Aviat reported a backlog of approximately $323 million, up from $292 million the previous year, indicating a strong demand for its products and services. The company employed 923 individuals, with a focus on enhancing its workforce capabilities to support its growth strategy. Looking ahead, Aviat anticipates continued demand for its microwave and millimeter-wave technologies, particularly as mobile networks evolve and expand, although it acknowledges potential challenges from competitive pricing pressures and macroeconomic conditions.

In its forward-looking statements, Aviat emphasized the importance of maintaining effective internal controls over financial reporting, noting that it had identified material weaknesses in its control environment. The company is actively working on remediation plans to address these weaknesses, which could impact its financial reporting and operational effectiveness in the near term. Despite these challenges, Aviat remains committed to leveraging its acquisitions and expanding its market presence to drive future growth.