Aviat Networks Reports 26.2% Revenue Growth to $118.2 Million in Quarterly Results

Aviat Networks, Inc. reported significant financial performance improvements in its quarterly report for the period ending December 27, 2024. The company achieved total revenues of $118.2 million, a 26.2% increase from $93.7 million in the same quarter of the previous year. Product sales rose by 26.6% to $82.3 million, while service revenues increased by 25.2% to $35.9 million. For the first six months of fiscal 2025, total revenues reached $206.6 million, up 14.4% from $180.6 million in the prior year. The company reported a net income of $4.5 million, or $0.35 per diluted share, compared to a net income of $1.8 million, or $0.15 per diluted share, in the same quarter last year.

The financial results reflect a notable recovery from the previous fiscal period, where Aviat reported a net loss of $7.4 million for the first half of fiscal 2024. The increase in revenues was attributed to higher demand for products and services, particularly in North America and Latin America, driven by the company's strategic acquisitions, including the NEC wireless transport business and 4RF Limited. The NEC acquisition, completed in November 2023, has expanded Aviat's product offerings and market reach, contributing to increased sales volumes.

Operationally, Aviat Networks reported a customer base exceeding 3,000, with significant relationships across various sectors, including mobile operators and government agencies. The company has also seen a geographic expansion, particularly in Europe and Latin America, where revenues increased by 49.7% and 70.4%, respectively, compared to the same quarter last year. The company’s employee headcount has also grown, reflecting its expansion efforts and increased operational capacity.

Despite the positive revenue growth, Aviat faced challenges with gross margins, which decreased to 34.6% from 38.8% in the prior year, primarily due to changes in customer mix and increased costs associated with the NEC transaction. The company reported operating expenses of $32.9 million, slightly down from $32.9 million in the previous year, with research and development expenses rising significantly by 21.8% to support ongoing product development initiatives.

Looking ahead, Aviat Networks remains optimistic about its growth trajectory, bolstered by its recent acquisitions and a strong pipeline of projects. The company anticipates continued demand for its products and services, particularly in the context of expanding 5G networks and private LTE deployments. However, it also acknowledges potential risks, including competitive pricing pressures and macroeconomic conditions that could impact future performance. The company plans to maintain its focus on operational efficiency and strategic investments to drive long-term growth.