Aviat Networks, Inc.

good afternoon welcome to aviat network second quarter fiscal 2021 earnings call at this time all participants are in a listen-only mode a question and answer session will follow the formal presentation please note this conference is being recorded i will now turn the conference over to your host mr keith saneron vice president of global finance and investor relations thank you you may begin thank you and welcome to aviat network second quarter fiscal 2021

results conference call, and webcast. You can find our Form 10Q press release and updated investor presentation in the IR section of our website at www.aviatnetworks.com, along with a replay of today's call in approximately two hours. With me today are Pete Smith, Aviat's President and CEO, who will begin with opening remarks on the company's fiscal second quarter, followed by Eric Chang, our CFO, who will review the financial results for the quarter, and first half of fiscal 2021. Pete will then provide closing remarks on AVIAT's strategy and outlook, followed by Q&A. As a reminder, during today's call and webcast, management may make forward-looking statements regarding AVIAT's business, including but not limited to statements relating to financial projections, business drivers, new products, and expansions, the impact of COVID-19, and economic activity in different regions. These and other forward-looking statements reflect the company's opinions only as of the date of this call and webcast and involve assumptions, risks, and uncertainties that could cause actual results of different material from those statements. Additional information on the factors that could cause actual results of different material from statements made on this call can be found in our annual report on Form 10-K filed with the SEC on August 27, 2020. The company undertakes no obligations to revise or make public any revision of these forward-looking statements in light of new information or future events. Additionally, during today's call and webcast, management will reference both GAAP and non-GAAP financial measures. Please refer to our press release, which is available in the IR section of our website at www.avionnetworks.com and financial tables therein, which include a GAAP to non-GAAP reconciliation and other supplemental financial information. At this time, I'd like to turn the call over to Aviatz President and CEO, Pete Smith. Pete?

Thanks, Keith, and good afternoon, everyone. I hope everyone remains safe and well during this period of working remotely and managing through the COVID-19 pandemic. And I hope everyone is off to a great new year. Thanks for joining us to review a successful quarter across the business. the company continued to execute on our key long-term focus areas of growth, margin expansion, expense reductions, and meaningful bottom-line improvements. Focused commitment by all members of the Avia team resulted in our highest reported quarterly revenues in more than five years and expense reduction, record adjusted EBITDA margins, a solid balance sheet and liquidity position, and significant customer wins in our mobile, 5G, and rural broadband businesses. During the quarter, we benefited from improved sales, including increased software sales and overall mix, with revenues at $70.5 million. Revenue increased 6.4% sequentially from our first quarter fiscal year 2021 and 26% from the year-ago quarter. North American revenue increased over 34.8% year-over-year. International revenue improved 9.5% year-over-year. These strong second quarter revenues were driven primarily by our 5G, private networks, and rural broadband businesses. Adjusted EBITDA was 10.1 million for the second quarter, representing an improvement of $9.7 million versus the same period last year, and an improvement of 20.4% from our first quarter fiscal year 2021. Adjusted EBITDA margins were a record, 14.3% for the second quarter. During the quarter, we continued to demonstrate Aviat's differentiation in wireless transport products, software and services, and e-commerce. We've demonstrated the viability of these offerings with key wins in 5G, private networks, and rural broadband. As I've mentioned on prior calls, our high-capacity, single-box, multi-band radio platform provides the industry's simplest multi-band solution, which lowers a customer's total cost of ownership. Our unique multi-band hardware and software solutions recently led to Aviat being selected by a US-based Tier 1 5G operator as a key microwave transport vendor. We couldn't be more pleased to have been selected, and we believe this award further validates our position as a leader in wireless backhaul solutions for 5G networks. We look forward to sharing more on this soon. During the second quarter, Aviat was also awarded a multimillion-dollar contract with NexLink Internet for high-speed wireless backhaul to support rural broadband connectivity. NexLink, a leading U.S. Internet service provider, provides high-speed connectivity to commercial and residential subscribers in Texas, Oklahoma, Illinois, Kansas, and Nebraska. Both the U.S.-based Tier 1 5G operator And Nextlink wins are as a result of Aviat having the lowest total cost of ownership offering driven by the industry's only single box multi-band solution for optimum capacity, the highest system gain radios for small antennas, and better reliability. Design software that simplifies network planning. The Aviat store for simplified purchasing and reduced logistics costs and next day shipping. and AVIAT's local North American service and support. We remain excited about the 5G and rural broadband opportunities that lay ahead. 5G builds will drive new backhaul upgrades, and our rural broadband business will benefit from meaningful government funding, including the $9 billion 5G fund for rural America and the $20 billion Rural Digital Opportunity Fund. With respect to private networks, our business remains strong and is growing. Aviat has a highly differentiated offering. Our leading RF performance along with our software and services capabilities are keys to Aviat's success here. We continue to receive orders in the private network business for our frequency assurance software, or FAS, a unique software offering for interference monitoring and analysis, providing customers increased network reliability and uptime. Our software and services platform remains a key focus for long-term growth, and we look forward to announcing new innovative software solutions. At the outset, I mentioned the execution of the team. Our commercial and operations team are on continuous improvement trajectories. I want to recognize them for their results. In addition, we have strengthened the team with the additions of Spencer Stokely to lead our HR function, and Astrodel to lead our product development organization. These new additions will drive improvements in our talent and, in turn, differentiation in our products and services. Before turning the call over to Eric, let me provide a couple additional observations and insights. First, this was a very good quarter and first half of our fiscal year. We remain focused and continue to execute, and those collective efforts are reflected in our financial, and operational results. We've continued to demonstrate our ability to grow and to take share of demand. In addition, we must continue to lower our expenses to drive greater profitability and shareholder value. We've made significant progress on improving and optimizing our cost structure and remain on track to realize previously announced cost savings. Looking forward, we see three significant drivers, 5G, private networks, and rural broadband and believe we are well-positioned to capture significant opportunities with our differentiated product software and services offering. With that, let me turn the call over to Eric to review our financials before coming back for some final comments. Eric?