Aviat Networks, Inc. (AVNW) swung to a net profit for the quarter ended Dec. 30, 2016. The company has made a net profit of $1.68 million, or $ 0.31 a share in the quarter, against a net loss of $5.68 million, or $1.09 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $3.08 million, or $0.57 a share compared with a net loss of $5.01 million, or $0.96 a share in the last year period.
Revenue during the quarter went down marginally by 2.67 percent to $68.54 million from $70.42 million in the previous year period. Gross margin for the quarter expanded 749 basis points over the previous year period to 30.81 percent. Operating margin for the quarter period stood at positive 3.67 percent as compared to a negative 7.10 percent for the previous year period.
Operating income for the quarter was $2.51 million, compared with an operating loss of $5 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $3.36 million compared to operating loss of $4.54 million in prior year period.
Commenting on the Company's fiscal 2017 second quarter results, Michael Pangia, President and Chief Executive Officer of Aviat Networks stated, "I’m pleased to report that we have achieved our objective of returning Aviat to profitability. Revenue is stabilizing, margins and working capital metrics are improving and we are operating at a lower cost structure strengthening our ability to sustain profitability and cash generation. With a stronger foundation, we are now in a better position to pursue profitable top line growth. We continue to explore all options that enhance our market position, offering and valuation."
Working capital drops significantly
Aviat Networks, Inc. has witnessed a decline in the working capital over the last year. It stood at $42.26 million as at Dec. 30, 2016, down 36.07 percent or $23.84 million from $66.10 million on Jan. 01, 2016. Current ratio was at 1.47 as on Dec. 30, 2016, down from 1.58 on Jan. 01, 2016.
Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 88 days for the last year period. Days sales outstanding went down to 96 days for the quarter compared with 106 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 56 days for the previous year period. At the same time, days payable outstanding went up to 77 days for the quarter from 75 for the same period last year.
Debt comes down
Aviat Networks, Inc. has recorded a decline in total debt over the last one year. It stood at $8 million as on Dec. 30, 2016, down 11.11 percent or $1 million from $9 million on Jan. 01, 2016. Aviat Networks has recorded a decline in short-term debt over the last one year. It stood at $8 million as on Dec. 30, 2016, down 11.11 percent or $1 million from $9 million on Jan. 01, 2016. Total debt was 5.10 percent of total assets as on Dec. 30, 2016, compared with 4.30 percent on Jan. 01, 2016. Debt to equity ratio was at 0.15 as on Dec. 30, 2016, up from 0.12 as on Jan. 01, 2016.
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