Aviat Networks (AVNW) 1 Nov 232024 Q1 Earnings call transcript

Good afternoon. Welcome to Aviat Networks First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded.I will now turn the conference over to your host, Mr. Andrew Fredrickson, Director of Investor Relations.

You may begin.

to and first webcast. welcome results fiscal and call conference you Aviat quarter Networks XXXX Thank

made Aviat's website financial quarter. with You updated expansions webcast different With may outlook, and the by make the our projections, business during investor find me presentation www.aviatnetworks.com, can risks as involve our to, Smith, only in including, President reminder, future revision today's IR to light these cause XX-K statements management press provide could of financial will and in regarding refer on strategy economic who today information differ are: filed both followed remarks statements regions. recent which the section limited this cause Aviat's website today's events.Additionally, release, found call our and or company's replay David business, remarks and our drivers, therein, forward-looking Form GAAP on reflect and SEC. turn Aviat's our reference section or Gray, at opening in could actual and available results by any can and our will and company to will Pete? new materially financial of materially of company's call review press CEO, Q&A.As a that GAAP new no and statements and call a release that Report and Pete the of in information then Aviat's non-GAAP reconciliation forward-looking most call the like to during the Pete CEO, information.At to of revise These but and the and www.aviatnetworks.com and webcast, Annual other tables the The I on over the measures. time, call at call. undertakes to statements.Additional IR followed this make public webcast, with obligation relating with on and financial would activity Pete Smith. forward-looking financial Please non-GAAP not other for statements actual differ to factors on a the results CFO, opinions which closing begin from supplemental is along those today's quarter; uncertainties from fiscal President include to assumptions, date results this will management in of statements who of to first be products

of of X.X% and different million the are Aviat's strong of the $XX.X continued the by has business our customers the exposure to operating discuss balance quarter.Let's driven last to ended year. you thanks EPS QX possible, from everyone. in throughout the key across execution generation of strong the cash our Aviat revenue the first revenue quarter made XXXX. afternoon, Networks' financial Andrew, last Aviat's review XX.X%. team of and diverse. verticals, that Aviat the first the effort first million, quarter.Highlights growth $XX.X partners Aviat generated Strong and of and of profitability and which represents XX.X% results achieved These quarter. and fiscal geographies, us $XX.X Non-GAAP execution to securities a joining good versus increase Thanks, I'm the in system with results of year. increase and Aviat its versus Adjusted for million, for EBITDA the of and debt-free operational and $XX and continued include of cash Thank quarter. pleased highlights report sheet. cash QX expansion of made operating quarter and implementation flows and million of marketable quarter a

In networks. private the same in demand rural versus private thanks XX% America. broadband continue to quarter networks, the Aviat's the private sales network part strong period We healthy continue year, grew this in to in in see demand environment. mobile region we prior networks, North innovate and in networks, to

executed years. We grown bookings, Aviat backlog. which had this a well QX turning project strong police, about and fire spending directly private solutions states that outlook in network budget public ongoing year prior wins demand this of have current budgets record and State have remain announced a the excited is the Recently, managed expertise. full segment.Increasingly, are to robust and We why our for and X versus of to private offers. environment radios, remain remain we full along services. overall faster city, fiscal for and City private of with is growing public This routers, the installation, state large networks. this quarters turnkey breadth and expected high-availability and by services and robust is made of management the of -- trend. in the Aviat networks These of products X grow spending safety networks, possible years High-power safety in in microwave the are services rates, are Aviat suite projects year. leader ahead.State ahead support, and software, examples growing that and design, believe We is will

calendar to be the Plan funds, XXXX. still These utilization. end their spent of are are must by early funds Rescue of American the fully or Additionally, year states, ARPA, Act stages now which in distributed

will to We projects. a a government expect federal network tailwind had private and expenditures.We continued our quarter strong meaningful provide in this very momentum

these ahead. We expect improving the federal and segment in would network ownership product project to last from Based the to by lowering our medium-term projects, business.Mobile and cost to lead period. continue building of Internationally. in on in Aviat's anticipate quarters has both XX shutdown network the long minimal our microwave months performance. networks, continues impact revenue unique have continue compared investment over recent total federal XG business their a doubled their operators bookings we attract federal portfolio this nature and portion the in the the their to a short- Our nearly on prior strength XX-month the time of U.S. of operators

are Fund plan distinctive a service had funding store ISP continue win-win Aviat's microwave citizens deployed ensure their BEAD.There considering broadband to than the is performance. upbeat and more quarter At latency, projects. while support rural and We of needs states to providers and were typically growing convention RDOF backhaul the are can are and of microwave already working XG, where capture wireless mode Broadband ready as be of well-positioned a global and will strong by the Rural gigahertz faster neutrality the development the and our high uptake still services, In both has drive authorized while enterprises.In would Aviat been networks access. microwave reliability shift attended of for the fixed infrastructure speed in bandwidth. Aviat further.We customers for Aviat turbulence is U.S. providing the Aviat's states bandwidth with planning that important a Digital an than and continued grow. to high should a networks.Given broadband wireless U.S., Program Access is plan we unlicensed for environment in these for rural Internet space, our communities of employ use by projects.In Tier e-commerce customer with wireless WISPAPALOOZA, on we fiber-to-the-home and why Wireless encouraged states and states to business, funding X Aviat rural further critical demand of as microwave from continue in dollars as backhaul this and use their the we we a Equity mix Deployment early We for also and expect than BEAD October, annual supply continue the the was is to remain stretch and favorable. This to a investment recent adoption our others This the alike as continues network providers quarter. emphasize and business healthy significant as are rate frequency the regard, will service tend Aviat who areas, business This operators recent winning in their platform or BEAD-related or believe allows that fiber to is services.Internationally, cost-effective the which invest be fiber this me XG and wireless let or operators.Deployments to Opportunity are from the continues needed. products tone in strong to access equipment and new believe XG see for as business to FCC technology beginning and higher projects. microwave the plans. commentary networks for and technological urban remains low of network fixed focused broadband the and as end growth wireless are of a X from beyond access extends still demand several we by positive to be for build-out growing backhaul execute and the deployments, year, the we expansion to at This microwave our providing We on

cycles. Aviat's business follow I same between diversified do and the as networks, we private serve; not is operators CapEx mobile operators, First, opened with, the broadband rural segments network

allows our with visibility better risk This and Aviat I able the forecast. have intelligence and development result favorably eliminates performance. particularly softening last and us on our these from of supply struggled direct their a direct. continues remain resiliency with XX% buildup true and a is our the customers.Our product serve pulse earnings Roughly channel our call, demand, from last service distributors. have overordering and allows the fiber our and years to to over network the at about benefits experiencing. our normalized relying and years keep problem new which remain currently are us as today. that length companies many been our to inventory this X Aviat customers business into is at of has last experienced avoid and chain on chains also Additionally, feeds chain distributors, constantly of relationships equipment to on providers, direct-to-the-customer we have which occurred. to demand our business improving over the because recently factors this than supply environment of execute This committed rather spoke about customer needs supply couple players, their of market This process.Many

and our a over routers, demand and has ability only been in serving better has support a customer the services, customers, demand market. we also meet our our software are addressable have portfolio. added market We our long-term.Historically, viewed billion we Not serve but as our total near-term to To business, confident markets. remained see managed microwave growing strong, Aviat to growing $X.X

serve. tuck-in can markets of Our we recent acquisition expanded Access the products

that believe the networks, result TAM We a XXXX grow and investments, and our through our of of is on a TAM private serves investments market. LTE organic will As current greater X% become data today consumption growth by a significant to acquisition in $XX $XX driven than global networks. at XG billion and business This our increasing billion.

expand plans, maintain to gain We customers.To our to expect will and to find we our our investor to an TAM, as new roadmap TAM semiconductor continue recent update modem serve inquiries, our continue share provide respond on ways our we and plans.

following enjoy on capacity, Our and cost delivers of ownership. leading customers distance of the our total factors, benefits. roadmap ownership industry cost Aviat Today, capacity is of distance, focused

said such and the touch miles, D-band, per we gigabits X in second like XX is miles, any of at and meaningful of which per per Extending For per many miles, available X XX mindset The permits way, better the ownership, frequency an at demand. of increased In power modem investors, innovation to has increased customer-acquiring radios integration, XX new lowest functionality, another advantages and second semiconductor mention XX plus second way and this of way will market.While innovation distances cost microprocessor. gigabits gigabits at the believe principle requirement cost often X little achieve capacity, XX We economical on of switch this node beyond represents radio requires technology geometries. radios radios on at discussions path here.Beyond or roadmap example, shorter capacity roadmap X total bands technologists to total view, advanced the bands. spectrum node achieve our with deliver technology, is distances, consumption. is in in moment. a very capacity today I the ranges is gigabits technology, second key of our integration semiconductor of capacity our lower provide technology best to than access integration radios ownership.The or distances the at and the The

in and to highlighted a where is XG be will support coming the available currently available where spectrum spectrum competitors Our roadmap of is our products years. anticipated one spectrum D-band as Recently, we agree, me We before David? XXXX. final ready.With call some will be back to turn over coming targeting to comments. tend the that, review financials David to our for let and product

Pete, and good Thank you, everyone. afternoon,

remarks be found of fiscal this key some my and During quarter can in detailed press filed I'll XXXX financial afternoon. review release financials noting XX-Q that highlights, the today, first our our

by As of from or as same or growth of growth $XX.X private all same mobile fiscal unless a was year. and fiscal discussed the the we Americas compared and $XX.X networks America, period driven comparisons which Europe comprised to East Latin $XX.X X.X% the CapEx driven the of America, by period million spending. an $X.X total million, $XX.X decrease million of was operators' Tier weakness increase XXXX, strong increase or North a last from and XX% X X.X%, between cyclical quarter year, of revenues million Middle million quarter, the XXXX in quarter, for reminder, first million period are million XX.X% $X.X same $X.X the quarter the the in total noted offset African reported in business.International first by of last quarter for first for year, Strong and last today revenue the our otherwise.For the revenue of our an Europe. was

and improvement by since Our strong quarter America were as to for it a $XX.X compared XX-month margins remained trailing driven XXXX. were million, non-GAAP The operating business.First an in year. ratio above million year. was $X.X and XX.X% basis, increase quarter growth prior expenses the and of North prior X, Gross XX.X% in higher-margin on XX.X% the book-to-bill GAAP as has GAAP XX.X% from the fiscal

million, First GAAP charges, operating operating in were million. both of impact investment deal which $X.X of The R&D. quarter driven in an share-based non-GAAP and compensation $XX.X increase expenses, exclude and higher expenses restructuring were increase costs by non-GAAP the

management cost continues leverage Our on disciplined to growth. operating revenue deliver

First and $X.X of operating year's quarter a million quarter entity compared million increases GAAP of $XX.X were included million $X.X restructuring. $X.X non-GAAP of to and XX.X%, $X.X million to related legal income non-GAAP tax compared million XX.X% discrete Last million respectively.First year figure provision GAAP charge million was $X.X last $X.X to prior a of onetime or and to year.

included minimal million has marketable company shareholder provision quarter previously generate last on $X.X million of future.First as compared a loss a for net NOLs to was a million tax loss will mentioned cash the of onetime that to $X.X payments tax million nearly $X.X and As the income GAAP year. foreseeable Last securities reminder, $XXX discrete year's the continue results of value charge. via

at last for an basis, $X.XX an for came million income, restructuring non-GAAP per to $X.XX XX.X%, net excludes and the Adjusted First revenue the XX.X% by of increase expansion.First $X.X for was to compared quarter the XX%. M&A-related quarter provision quarter million, and quarter.Moving million $XX.X to driven the year. increase in margins per an fully for costs non-GAAP share-based last was period or prior growth which were increase diluted same EBITDA compensation, million tax the $X.X on EPS on $XX.X XX.X% of year, same of period noncash year, margin $X.X charges, the share share Adjusted sheet. from balance million, a first compared EBITDA or

by $XX.X was cash increase Our in of cash inventory from The profitability, in prior receivable with the with quarter and at accounts a solid balances. million the driven million increased marketable $XX.X no the coupled for in million quarter end and to first securities the debt. quarter improvements $XX.X

plans.With sheet to continue Pete providing for that, flexibility very turn to our I'll executing comments. long-term back us with final some balance it Pete? solid, Our remains

David. Thanks,

for Q&A, like of on up would Aviat opening years Jim years. an XX I'll member. Directors Jim to over updates Board few as Before closing of Stoffel thank served provide a a and commentary.First, our service for his I for Board

from and tremendous to the him expect helped in been he we close position knowledge and transport exciting the time, contributions company NEC a December that that the thank as the company. to asset, we are the leading in currently created today all company.Second, to have his we XXXX. His Aviat for During leadership navigate the merger through transaction wireless

We fifth outlook, the integration to on remains to the We date continue are transaction quarter on updates.The we previously exact the closing business. will be after that accretive quarter in XXXX Based and to smoothly. some guidance, planning compared believe exclusive now the the of company's close, our the is we can affirming on subject approvals, Based conditions. fiscal regulatory NEC year progress as stated. fourth qualitative customary add progressing to-date, learnings our

will expect as from To XXXX We QX, let's adjusted the and in that $XXX on a impacted reiterate, that range to the basis and on up the accelerated be million.With after In guidance our to to questions. our follows: the few to closure our of we million basis QX. the that, project guidance quarter. $XX $XX to open guidance the be of to a is revenue million year the NEC EBITDA $XXX deployment. current business of fiscal in sequentially projects QX transaction.Note had up and update the we pipeline, be include our project full-year is operator, for million; range of Based reflects were positively

[Operator for Instructions]. first One you. Thank question. moment our

Our Searle from Scott with first question of Roth. comes the line

think, terms on from the an give a update the are of to rest wondering of for of there. it there continues there.And that your would seems have swing you hear wondering commentary. intermediate-term in to as outer the then lot your conservative, out guide what's terms divergent looking of I'm provided. start, do know, help out factors a I high Maybe is look in networks sounds far the Pete, the of on visibility how wondering and business, the the really on it didn't I part range year. Pete, India to going to you've to And, are be was got you've Dave what just that could and factors fiscal quarters of been at the degree strength 'XX How looking the front? the that world. job great near-term what confidence you quarter. in I like pretty private like the which outlook, You've upside at if guidance, you you was the you upside? of I

Yes.

thinking didn't see XX% this in probably be it's What to in India, We to the just think growth. about and January year-over-year I timeframe. quarter, quarter more that hit probably likely June

So respect year. to that visibility Aviat. for in the the can quarter backlog, private fiscal came a we our quarter growth we we first a quarter, space, in were projects And we a booking as revenue to right North X start Again, were network see with that go tremendous surprised typically term, X bookings confidence of phase, they've us our pleasantly India if medium design to X now, ever the being gives -- boost to a get we this in in been solid.With June private in into and business long highest the in networks July later. those America a because quarters

to past going period. the would little goes backlog that, So cover out, is we and next think our XX the month mostly and next XX very months, months, XX the that play

I you and think questions, so. ask So might I them, X on hit X of

Yes.

you or factors you ARPA What upside? it it's don't seems mix but upside, stages front. where there's quantify seeing? of if Because Pete. see the it like, I of the in swing to a are looking on But the seems that 'XX, terms and swing days fiscal to now, RDOF. we're know factors percentage you early that the number contribution do could like like Just to early

to to Yes, January think And more as end you wins. we of we'll The, so respect stretching We from looks the small June of would design some came the ARPA spent the some of public in of know, to we've by funding the RDOF get seen say and XXXX. timeframe. we see with money being orders lot safety the in be RDOF. announced it that quarter, unspent We large the ARPA. a X some needing out, that like

network be in did. that think more our expect immediate to to that's private record So we going good. first And didn't we America in we bookings have really quarter, North data, and

and we're environment, ARPA we to starting demand think forward. grow it'll So, see the impact going think we

and to accretion. I to expected Great. timeline that could, but just forward? to the line if it on move about revenue deal what to that of in enough getting you're nice deal, it's response And feeling I'm wondering sounds follow NEC, the that lastly, better, on are How customers. closing front like attrition? the the see up ahead is How of progressing like you're the customers the is from integration the going you kind But up comfortable of expectations

we that. to that. $XXX be gave with the We're there we we expect close. past, In first So, still that comfortable the said in after year revenue, million

So X softness. we some did global operator some perhaps model in and attrition Tier

into the software entities. with respect an incredible that products. I access some we brings paid deal.Then customers the Aviat portfolio customer we for standalone transaction, engagement, the and the architecture routers, see think to from and split combined broadened a the the has down NEC factored So price

into the from is that's Redline after real conversations that the transaction probably factored learned a haven't And we the close. know, initial that XX synergies indicate customers model. would we What get you with So, months revenue to possibility.

and Great. get back on I'll quarter queue. Nice job the in the

please. next question, our for moment One

the question with Our next Lake comes of Jaeson Schmidt from line Street.

provide update that seeing curious you're if you just Huawei an Pete, funnel. from could what on

Has was quarter the million. current there $XX over I funnel been change? any think, last you mentioned

bookings I from funnel little change to is we Huawei XX%. by would [ say the under bit our a ] the gain we'd share like report real increased

went $X.X million. our bookings So up

area continues that fruitful us. So for a to be

to India quarter expectations? your remain with it And helpful. the mix flat January-June would of impact, in just gross then, margin kind more a of here your Okay. just relatively being December on commentary be fair given That's expect to

Yes.

as versus prior margin X we progress quarter year, in So, prior and the quarters. it's the our said, gross made highest was

like we full XXX improvement it's the and roughly said improvement be continued the straight we expect to nature, a expect we basis for based above. point year full -- alluded XXX be to to last line, a Project about going expect basis year. We quarter, not points for but the

Yes.

kind quarter as it'll So in, the it be it'll The India -- doesn't the of lower. timing little comes come project be little gross on, higher. a Jaeson, will be that'll a it bit depend in, margins quarter

then for of Okay. the you're me, I and in mean, know any get the Perfect. And in sort last it the guys of you in. another you confirmation one any just pop segments excess past, that, have that want of not sort outlined pockets to of just but up inventory play seeing I

Absolutely that we ability my this installs last do in was why to said in session. in place. that's get, the of we script the the not that We on that quarter comment or the we Everything covered emphasized microwave biggest that, ad double nauseam likelihood our XX% we're the And orders, about not. And it's direct. having customers.

we was know problem. there So, an inventory if would

So, I problem. have unequivocally, say not that want do we to

the queue. jump I'll into back No, I appreciate color.

please. One moment for our next question,

next Our with Erik comes the Securities. from of JMP Suppiger question line

Yes.

QX said record had you bookings America. for off, North that First in you

MaxLinear? you I development. to the an with had we healthy the you've developing top backlog technology us chip that the on also that an on record modem been of assume on You addition a that think revenues secondly, revenues.And talked top you you some you of give healthy had Can having the about Can record of update backlog revenues. had? then, had you

Yes, bookings. so we private America network record have North

had book-to-bill over and Our backlog. into record year, coming X, -- is we a we the

think in our shape. is great So we backlog

will timely meet that partnership concern expressed perspective, total semiconductor as needs and what dependency. spectrum, the technology has risk a of remains solid that investors be continues risky, and We've We're ownership.One a on add that, terms is from but productive, development to company some modem chip developments our Our customers' as Europe in being to -- and of "de-globalized". partner executing in the have we frequency, way. environment have Asia chips and in in I one and would capacity, MaxLinear transpired about jointly MaxLinear ready modem of the become ready any cost Aviat, a aware We additional we're as great chip remains development. with see thing less

any time funding time And for mentioned there XXXX you then of frame. Okay. your for your I had still of expectations in probably projects frame? Is expected in a there update that is terms change believe, Or terms BEAD. is the Is timing? any timing?

that the BEAD going There's a year year quarter to the in XXXX. calendar will happen think impact be We bit the say might of some in it the to in XXXX. is little in press January March

item. submitted the I drafts the is first the on So to We unlocking MCIA unchanged what that, in XX [ reading initial one which press. states about thought an BEAD in ], impact.So we're of think and fund. I more talk just XX step have would you're it's early XXXX the the I add would

the happen XXXX ] there steps of for I is that's impact. know, XX you [ initial the a encouraging and precursor There's progressing, and timing. talked early there draft is the of states meet -- XX submitting So that the to about bunch are overall need BEAD, to

One moment our for next question.

the of next Our Savageaux question Capital from comes Northland Markets. line Tim with

Congrats on the results.

a XX% X your Tier the customers seems quick at that's around possibility. quarter? given U.S. a just commentary real strength, in question. like It First, Any least

one there expect continue. was XX%, but to Hey, Yes. we that Tim, don't around

North or International? International? you that or Can was Or U.S. say great. whether Okay, America

U.S. It was

wonder I think, rural U.S. the might comment and I for growth broadband. And, year, the for, fiscal India, looking for you have if that Pete, XX% a type for great. Okay, similar your you're gather I of metric growth

might there accelerating one be broadband fixed I wireless But is thought to time this U.S. getting I your growth the gave and U.S. after greater, us so-so the really in show, rural not to from time last you've type of WISP how greater much and quarter, business fast told India? couple the referenced I'm momentum sure potential. You comparable and for chance around a some I of it you the of years. evidence a metric any period, broadband was growing assume you think did to kind but

Yes.

So but little so don't you're I India let because give the but looking but reason I question I answered me -- -- have bit had flavor. the for, that specificity is that prepared, you're a of perhaps the

would broadband be front our growing 'XX the don't about those specific, by [ more business of be X%. expansion end the opportunity it rate. on run of say continues because fixed We license encouraged think the for I backhaul. in probably would be band, to the accelerate higher it's more ] us.What also have X growth exceeding funding which, RDOF rural answers and But to that wireless would or we're gigahertz kicking Our drives in, we fiscal frequency

with qualitatively would it, not we to Tim. you. We're to number a ready So put agree

growth growth. growth I talk gain, don't you Thanks. to quarters guess sort strong order And report right here consider but mentioned, for mean, had this last expected in once versus was private row I And principally you U.S. out think which a you thinking continue, would pretty a And key hadn't year driver am know I a about Nokia of above-trend me. market strength you've coming in a last quarter, if of think as question noted and in networks versus there. you share driver probably type I guess X can I of, Okay. backlog, I you networks? the private I

would to and share above we in say market network business, from, it's who hard trend due to we're we say but that it's principally would say the taking growing our gain. private are it's We share --

that we're So, we are beating, but know but who wouldn't I break out share. taking we

for our please. One question, moment next

Theodore Litchfield Hills line comes next question of with from Our O'Neill the Research.

a currency basis? revenue about question you if constant international on your My first quarter. on could is, Congratulations good a talk

strength we've Yes, and sure. That's Yes, a because U.S. that dollar so revenue of it versus slightly previously. a or discussed about a this with bit we'll basis, way given of on that the an our some been advent in impact, not It in become will more material the up factor typically of NEC, devaluations, start probably currency QX that disclosed hasn't bigger talking but bigger, something framed would detail total or business. X.X% have going had for by in X.X%. the little constant a forward

become slightly will factor? it a Why bigger a

more XX%. now, right because only Well,

International More deal ]. Yes. [

us. revenue services goods the our for is would to But had With that product become matched for near in SOP. is NEC, non-USD so it's a well the bit it in cost or incurred a And our migrate of might of for currencies, currency, denominated whether XX% factor we'll be in of more Only term, more non-USD work revenue to Yes. is that currency, of more currently where most for sold right? historically of that have services, local they there.

And do pick on you the same subject, from you do more -- acquisition? the NEC add Salesforce up

absolutely. Yes,

XXX up employees pick of or sales those will sales. about or lion's of, to with being lot would employees a sales share support the we engineers So support I say, network

you're a accounts trying Okay, And wondering, great. And was you've down For, made on to some DSO that for bringing you a progress target target great like I hit? that? receivable. do have

Yes.

XX previously our want of the put that around shouldn't I And long on to it, in that we said term. and it be we but take it I there near right? specific this I net target, is won't quarter payments, days, long-term that a us DSO we think think, unearned can to net to get advanced get like fairly range.

from Riley. B the Dave Our line question Kang comes final with [Operator of Instructions]

NEC. is question first My on

of Just announced months wondering metrics changed if their that several transaction of since the date was any financial ago? the

X it'll we mean, say I and our on that accretive done earlier, be think to-date. we we've and the in based quarter integration did collaboration No. remarks that's

that's top unchanged. remain margins improvement, but line and So an the the

since That's of you surprising, there's of kind of guys. flip-flop a like sort

to XG more ] operators, So, [ have public exposure no? they

We to Xs. have Yes. exposure conservatively. modeled it Tier They

still with CapEx in slowdown are to we've set spending, Tier the committed we So X numbers previously. the

So say that. accordingly, we I modeled to guess, it the best that's, way

my And on long-term. Okay. your is follow-up

margin provided XX% of XX%. targets You and gross EBITDA

timeframe revenue Just And for does wondering what And that? assuming? kind what you of the include are NEC? it

Yes.

improve as will, previously, we've going margin be -- NEC. disclosed gross on we the did diluted to term, in that somewhat So able That include but targets forward. expect the to be near those not

on revenue the the think, achieve Just on regular EBITDA a improvement ex-NEC, then basis I we'll core reaching that based I to just XXX the pretty side, the on good if step and forward that the basis business. a at year-over-year, the in gains that's target.And as year, business exit here looking leveraging be think, point close Aviat we we

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

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

for This call. participation. Thank concludes you today's your conference

wonderful disconnect, now have may day. You and a