Aviat Networks, Inc. (NASDAQ:AVNW) Q1 2024 Earnings Call Transcript

Peter Smith: Yes, I will say they have exposure to Tier 1s. We modeled it conservatively, so with the slowdown in Tier 1 CapEx spending, we still are committed to the numbers we’ve set previously. So we modeled it accordingly. That’s I guess the best way to say that.

Dave Kang: Okay, and my follow-up is on your long-term, you provided gross margin, EBITDA targets of 40% and 15% just wondering what the timeframe for that and what kind of revenue are you assuming and does it include NEC?

Peter Smith: Yes, so the gross margin targets did not include NEC. That will, as we disclosed previously be somewhat dilutive in the near-term, but we expect to be able to prove on those going forward. Just looking at the core Aviat business ex-NEC, I think if we achieve the 100 basis point improvement year-over-year, that’s a good step forward in reaching that target. And then on the EBITDA side, I think we’ll be pretty close to that on a regular basis here as we exit the year just based on the revenue gains and leveraging the business.

Dave Kang: Got it. Thank you.

Operator: Thank you. I would now like to turn the conference back over to Mr. Pete Smith for closing remarks.

Peter Smith: Well, thanks to all of the investors for your continued interest in Aviat. This is being our first quarter. We think we have a foundation for a great fiscal year. We’re looking forward to closing the NEC transaction and updating you in 90 days. Thanks everyone for joining the call.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.