Aviat Networks, Inc. (AVNW) saw its loss narrow to $0.40 million, or $0.08 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $7.87 million, or $1.50 a share. On an adjusted basis, net profit for the quarter stood at $0.37 million, or $0.07 a share compared with a net loss of $6.64 million, or $1.26 a share in the last year period.
Revenue during the quarter went down marginally by 2.92 percent to $58.70 million from $60.47 million in the previous year period. Gross margin for the quarter expanded 637 basis points over the previous year period to 30.21 percent. Operating margin for the quarter period stood at positive 0.12 percent as compared to a negative 12.56 percent for the previous year period.
Operating income for the quarter was $0.07 million, compared with an operating loss of $7.59 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $0.70 million compared to operating loss of $6.33 million in prior year period.
Commenting on the Company's fiscal 2017 third quarter results, Michael Pangia, president and chief executive officer of Aviat Networks stated, "Generating consistent profitability, and building our cash position remain top priorities, and during the quarter, we accomplished both. We reported positive operating income and Adjusted EBITDA. We also increased our net cash position by $4.9 million, while generating $5.1 million in cash from operations. Gross margins remain above 30% and we took steps to further optimize our business and lower our fixed costs. While revenue and bookings were lower than initially expected, much of this was due to timing. In fiscal 2018, we anticipate the Company will return to top-line growth while further improving profitability."
For financial year 2017, Aviat Networks, Inc. expects revenue to be in the range of $242 million to $247 million.
For the fourth-quarter, Aviat Networks, Inc. expects revenue to be in the range of $57 million to $62 million.
Working capital drops significantly
Aviat Networks, Inc. has witnessed a decline in the working capital over the last year. It stood at $43.61 million as at Mar. 31, 2017, down 27.08 percent or $16.19 million from $59.80 million on Apr. 01, 2016. Current ratio was at 1.51 as on Mar. 31, 2017, down from 1.58 on Apr. 01, 2016.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 98 days for the last year period. Days sales outstanding went down to 94 days for the quarter compared with 107 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 65 days for the previous year period. At the same time, days payable outstanding went up to 78 days for the quarter from 74 for the same period last year.
Debt comes down
Aviat Networks, Inc. has recorded a decline in total debt over the last one year. It stood at $8 million as on Mar. 31, 2017, down 11.11 percent or $1 million from $9 million on Apr. 01, 2016. Total debt was 5.28 percent of total assets as on Mar. 31, 2017, compared with 4.70 percent on Apr. 01, 2016. Debt to equity ratio was at 0.15 as on Mar. 31, 2017, up from 0.13 as on Apr. 01, 2016.
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