Aviat Networks, a provider of microwave networking solutions, posted significant drop in revenue in third quarter of fiscal 2016 due to weak spending in telecom sector.
The US-based technology company reported revenues of $60.4 million in Q3 fiscal 2016 as compared to $74.8 million in the same year-ago period — primarily due to lower spending by the company’s mobile operator customer base.
The Santa Clara, California-based Aviat Networks today said the timing associated with some Private Network projects coming to completion also impacted both product and service revenues across geographic segments.
Aviat Networks generated $27.1 million from North America, $18.2 million from Africa and Middle East, $4.3 million from Europe and Russia and $10.8 million from Latin America and Asia Pacific in Q3 fiscal 2016.
Michael Pangia, president and CEO of Aviat Networks, said: “The mobile operator segment continues to face economic headwinds. This will continue though we remain well positioned with our customers to capitalize when spending levels rise again.”
Research & development expenses of Aviat Networks declined $1.4 million or 21.9 percent, though the company increased development costs to support both the Mobile Operator and Private Network segments.
Aviat Networks reported net loss of $6.7 million for the third quarter as compared to net loss of $8.1 million for the comparable fiscal 2015 period.
Michael Pangia said: “While revenues in our Q4 will be challenged, we expect Q4 bookings to be significantly higher, based on this Private Network momentum, which should have a positive impact on our future performance.”
Aviat Networks will continue to focus on lowering cost structure, enhancing gross margins, improving efficiencies and processes, and realigning investments in support of both Private Network and Mobile Operator customers.
The enhancements announced by Aviat Networks as part of Phase II of its realignment plans should result in $14-$16 million of savings in FY17.
