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Aviat Networks, Inc., together with its subsidiaries, is a global supplier of microwave networking and wireless access networking solutions, backed by an extensive suite of professional services and support. Aviat was incorporated in Delaware in 2006 to combine the businesses of Harris Corporation s Microwave Communications Division ( MCD ) and Stratex Networks, Inc. ( Stratex ).
Operating margin is thin at 2.43%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 6.5%, steady but not accelerating. Margins contracted 2.3pp, which offsets some of the top-line progress.
Free cash flow declined 126% versus the prior year, cash generation momentum has weakened. ROIC dropped from 4.99% to 2.52%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$434M
▲ +6.5% YoY
Net Income (TTM)
$9M
▼ -87.5% YoY
Op. Margin
5.14%
▼ -2.3pp YoY
ROIC
3.45%
▼ -2.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$12M
▼ -126.0% YoY
Op. Cash Flow (TTM)
$21M
▼ -81.3% YoY
Net Debt
$29M
Cash & Equiv.
$78M
5Y CAGR: +12.7%
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