Aviat Networks, Inc. (NASDAQ:AVNW) Q2 2023 Earnings Call Transcript

Scott Searle: Hey, Pete. Maybe just a follow-up on Redline, you’re a couple of quarters in now. I’m wondering if you could give us a little bit of an update about how that’s tracking from a revenue standpoint? It sounds like you’re starting to get some cross synergies from a sales perspective in terms of backhaul capabilities, but I’m wondering what that line of opportunity is looking like on the private networks front, how should we think about that going forward over the next 12-plus months?

Peter Smith: Yeah. So the private network funnel is starting to grow. We haven’t had a win. When we got prep for the call, we thought about — talking about that more, and we said we wanted to have a win before we started to kind of put that in the earnings deck. So we — but we see when we made the acquisition of Redline, we thought that our channels and our access to private networks and the product portfolio was going to work. And it’s not working yet, but we think we’re one to two quarters away from saying, yes, the investment thesis is proven. With respect to revenue, it contributed less than 10%. And it was accretive to our gross margins, and we are ahead of the EBITDA guidance we gave for the year. On Redline, we said it was 1% to 1.4%, and we factored that into our increased EBITDA guidance that we mentioned at the end of the recorded call.

Scott Searle: Great. Thanks.

Operator: Thank you. And this does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Pete Smith for any further remarks.

Pete Smith: Well, thanks, everyone, for attending the call and your support. Fortunately, the line state opened during the Austin Ice Storm. We are looking forward to updating our progress in 90 days, and let’s stay in touch. Thanks, everyone.

Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.