On this page of StockholderLetter.com we present the latest annual shareholder letter from AVIAT NETWORKS, INC. — ticker symbol AVNW. Reading current and past AVNW letters to shareholders can bring important insights into the investment thesis.
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9/23/2025 Letter Continued (Full PDF)
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9/25/2023 AVNW Stockholder Letter
• 10/7/2024 AVNW Stockholder Letter
• More "Manufacturing" Category Stockholder Letters
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AVNW Benford's Law Stock Score = 74
9/23/2025 Letter Continued (Full PDF)
•
9/25/2023 AVNW Stockholder Letter•
10/7/2024 AVNW Stockholder Letter•
More "Manufacturing" Category Stockholder Letters•
AVNW Benford's Law Stock Score = 74AVNW Shareholder/Stockholder Letter Transcript:
3UR[\ 6WDWHPHQW $QQXDO 5HSRUW $YLDW 1HWZRUNV ,QF AVIAT NETWORKS, INC. Fiscal Year 2025 Fourth Quarter Summary RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA), in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow. We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort. AVIAT NETWORKS, INC. Fiscal Year 2025 Summary RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES(1) Condensed Consolidated Statements of Operations (Unaudited) Twelve Months Ended June 27, 2025 (In thousands, except percentages and per share amounts) GAAP gross margin . . . . . . . . . . . . Share-based compensation . . . . . . . . Merger and acquisition related expense Non-GAAP gross margin . . . . . . . . $139,436 233 2,890 142,559 % of Revenue 32.1% 32.8% GAAP research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Share-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-GAAP research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,768 (534) 35,234 8.2% GAAP selling and administrative expenses . . . . Share-based compensation . . . . . . . . . . . . . . . . Merger and acquisition related expense . . . . . . . . Non-GAAP selling and administrative expenses . $ 89,482 (6,300) (4,896) 78,286 20.6% GAAP operating expense . . . . . . . . . . . Share-based compensation . . . . . . . . . . . Merger and acquisition and other expenses. Restructuring (charges) recovery . . . . . . . Non-GAAP operating expense . . . . . . . . $128,861 (6,834) (4,896) (3,611) 113,520 29.7% GAAP operating income . . . . . . . . . Share-based compensation . . . . . . . . Merger and acquisition related expense Restructuring charges. . . . . . . . . . . . Non-GAAP operating income . . . . . $ 10,575 7,067 7,786 3,611 29,039 2.4% GAAP income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjustment to reflect pro forma tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-GAAP income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5% GAAP net income . . . . . . . . . . . . . . Share-based compensation . . . . . . . . . Merger and acquisition related expense . Restructuring charges. . . . . . . . . . . . . Other (income) expense, net . . . . . . . . Adjustment to reflect pro forma tax rate Non-GAAP net income . . . . . . . . . . . Diluted net income per share: GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,341 7,067 7,786 3,611 941 635 $ 21,381 Shares used in computing net income per share GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Adjusted EBITDA: GAAP net income . . . . . . . . . . . . . . . . . . . Depreciation and amortization of property, plant Interest expense, net . . . . . . . . . . . . . . . . . . Other (income) expense, net . . . . . . . . . . . . . Share-based compensation . . . . . . . . . . . . . . Merger and acquisition related expense . . . . . . Restructuring charges. . . . . . . . . . . . . . . . . . Provision for income taxes . . . . . . . . . . . . . . Adjusted EBITDA . . . . . . . . . . . . . . . . . . . (1) and equipment and intangible assets . 2,235 (635) 1,600 8.1% 18.0% 26.1% 6.7% 0.4% 0.3% 4.9% 0.10 1.67 12,826 12,826 1,341 8,045 6,058 941 7,067 7,786 3,611 2,235 $ 37,084 0.3% 8.5% The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures. AVIAT NETWORKS, INC. 200 Parker Drive, Suite C100A Austin, TX 78728 Notice of Annual Meeting of Stockholders for Fiscal Year 2025 to be held on November 5, 2025 TO THE HOLDERS OF COMMON STOCK OF AVIAT NETWORKS, INC. NOTICE IS HEREBY GIVEN that the Annual Meeting of Stockholders for fiscal year 2025 (the Annual Meeting ) of Aviat Networks, Inc. (the Company ) will be held online only on November 5, 2025, at 12:30 p.m. Central Time. You may attend the Annual Meeting online via webcast by visiting www.virtualshareholdermeeting.com/AVNW2025 and entering your 16-digit control number included with the proxy card. You will be able to vote your shares and submit questions while attending the Annual Meeting online for the following purposes: 1. To elect seven directors to serve until the Company s 2026 Annual Meeting of Stockholders or until their successors have been elected and qualified; 2. To vote on the ratification of the appointment by our Audit Committee of Grant Thornton LLP ( Grant Thornton ) as the Company s independent registered public accounting firm for fiscal year 2026; 3. To hold an advisory, non-binding vote to approve the Company s named executive officer compensation ( Say-on-Pay ); 4. To approve the Third Amended and Restated 2018 Incentive Plan of the Company; and 5. To transact such other business as may properly come before the Annual Meeting or any adjournment or postponement or other delay thereof. Only holders of common stock at the close of business on September 11, 2025 are entitled to notice of and to vote at the Annual Meeting or any adjournment, postponement or other delay thereof. Whether or not you expect to attend the Annual Meeting online, we urge you to submit a proxy to vote your shares. This will help ensure the presence of a quorum at the Annual Meeting. By Order of the Board of Directors September 23, 2025 /s/ Peter A. Smith President and Chief Executive Officer