Aviat Networks, Inc.

Good afternoon. Welcome to our Viet Network's third 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 Fanaran, Vice President of Global Finance and Investor Relations. Thank you. You may begin.

Thank you, and welcome to Aviat Network's third 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 third quarter, followed by Eric Chang, our CFO, who will review the financial results for the third quarter and first nine months 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 related 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 to differ material from these statements. Additional information on factors that could cause actual results to differ material from the 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 obligation 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.aviatnetworks.com, and financial tables therein, which include a gap to non-gap, reconciliation, and other supplemental financial information. At this time, I'd like to turn the call over to Avion's President and CEO, Pete Smith. Pete?

Thanks, Keith, and good afternoon, everyone. Thanks for joining us to review another successful colloquium. 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 third quarter and year-to-date revenue growth of 8.2% and 15.5% compared to the same periods last year. Third quarter and year-to-date adjusted EBITDA margins of 11.0% and 12.7%. A solid balance sheet and liquidity position. A significant customer win for our new software-as-a-service, SAS, offering. A five-year agreement with the U.S. state government provides Aviats FAS and other software via a hassle-free subscription service. North American third quarter revenue increased 12.8% year-over-year, and for the first nine months increased 20.4% compared to the same period last year. International third quarter revenue increased 1.1% year-over-year, and for the first nine months increased 6.5% compared to the same period last year. Adjusted EBITDA was $7.3 million for the third quarter, representing an improvement of $3.8 million versus the same period last year. Adjusted EBITDA margins improved to 11.0% for the third quarter compared to 5.7% for the same period last year. The improvement in revenue and adjusted EBITDA for the third quarter and year-to-date basis was primarily due to gross margin expansion from higher volume of private network business, increased sales through our Aviat store, which serves primarily the rural broadband space, improved international business driven by multiband winds, and an increase in software sales. We also benefited from previously announced restructuring. For the first nine months, non-GAAP operating expenses decreased 5.2% compared to the prior year. We continue to demonstrate Aviad's differentiation in our products, software and services, and e-commerce. We've demonstrated the viability of these offerings with recent 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. During the third quarter, as previously announced, Aviat was awarded a contract with DISH, where Aviat was selected as the wireless backhaul supplier for their nationwide 5G network. DISH has also placed their first orders with Aviat in the quarter. Along with DISH, during the quarter, Aviat also announced a new win with LTD Broadband for high-speed wireless back to support rural broadband connectivity. LTD Broadband, a leading U.S. Internet service provider, provides high-speed connectivity to commercial and residential subscribers in Iowa, Minnesota, Nebraska, South Dakota, and Wisconsin. In addition to... The NextLink internet win, we now have three out of the top 10 and nine of the top 30 Rural Digital Opportunity Fund winners in our customer base. The DISH and LTD broadband wins are the result of Aviat's 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. Aviat 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 ahead. We believe 5G builds will drive new backhaul upgrades and that our rural broadband business will benefit from meaningful government funding including 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. We also recently announced groundbreaking new software available on the Avia WTM 4000 radio platform. This new software, called A2C+, lowers customer cost by doubling the capacity with it. out additional equipment by combining two or four separate channels onto a single antenna, delivering the highest system gain, enabling smaller antennas, thus reducing tower labor and leasing costs, simplifying spares, and lowering power consumption. Increasing capacity for multiband enabling three plus zero in a single box and doubling the available microwave capacity. Competitive offerings require three or even four separate boxes with increased complexity and cost. Before turning the call over to Eric, let me provide a couple of additional observations. and insights. First, this was a very good quarter and first nine months 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. Looking forward, we see three significant drivers, 5G, private networks, and rural broadband. and we believe we are well-positioned to capture significant opportunities with our differentiated products, software, and services offerings. With that, let me turn the call over to Eric to review our financials before coming back for some final comments. Eric?