Aviat Networks, Inc.

Good afternoon. Welcome to Aviat Network's third quarter fiscal 2022 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. Aviat.

Thank you and welcome to Aviat Network's third quarter fiscal 2022 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. President and CEO, who will begin with opening remarks on the company's fiscal third quarter, followed by David Gray, our CFO, who will review the financial results for the quarter and first nine months of fiscal 2022. He 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 opinion only as of the date of this call and webcast and involve assumptions, risks, and uncertainties that could cause actual results to differ materially from those statements. Additional information on factors that could cause actual results to differ materially statements made on this call can be found in our annual report on Form 10-K, filed with the SEC on August 25, 2021. The company undertakes no obligation to revise or make public any revisions 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 GAAP to non-GAAP reconciliation and other supplemental financial information. At this time, I would like to turn the call over to Aviat's President and CEO, Pete Smith. Pete?

Thanks, Andrew, and good afternoon, everyone. Thanks for joining us to review another successful quarter. The company continued to execute on our key long-term focus areas of growth, margin expansion, and meaningful bottom line improvements, despite continued supply chain and inflationary challenges. The Aviat team commitment resulted in revenue of $74.5 million which represents growth of 12.2% versus Q3 of last year, and nine-month revenue growth of 11.0% versus last year. EBITDA of $9.5 million represents growth of 23% versus the same period prior. For nine months, EBITDA increased 13.2% versus the prior year period. Non-GAAP EPS increased of 38%. Continued rock solid balance sheet and liquidity position, continued share buybacks. These results would not have been possible without the tireless dedication and execution of our operations team, engineering team, and supplier partners. Remarkably, our team produced these results despite a tornado impacting our Austin facility during the last 10 days of the quarter. All of our team members evacuated safely before the event. Our facility was damaged, but we were able to respond quickly and recover the lost production time prior to quarter end. We do not anticipate any continuing impacts from the event. Supply chain continues to be a challenge. Let's address the supply environment from Aviat's perspective. We experienced fewer supply interruptions, but we still experienced interruptions. Lead times have improved, but are now stable. However, some suppliers are now shipping ahead of lead times. This is a precursor to an improved environment. Many semiconductor chips remain on allocation. We have greater than 100 components that are on allocation. We remain subject to the risk of a supplier push-out and decommits late in the quarter. Specifically, we overcame six supplier decommits in Q3. Q3 is plagued by lockdowns in Asia. Fortunately, our inventory approach buffered the supply interruptions. These lockdowns have impacted three levels down in the supply chain. Overall, we see the environment as improving, but risks still remain. Now let's move to the key highlights of the third quarter. We continue to see a strong demand environment across our three main market segments, 5G, private networks, and rural broadband. In 5G, operators need to upgrade backhaul capacity to enable enhanced mobile broadband capabilities and new applications like fixed wireless access and private 5G services. While we have seen some 5G-related build-outs in certain customers, we believe the lion's share of the 5G opportunity is still in front of us. In private networks, due to the growing need for secure and reliable communications, this business was a catalyst for Aviat's growth in Q3. We remain positive about and committed to our strategy of continued share gain and share wallet expansion in this segment. And finally, for rural broadband, our business remains strong and we look forward to the opportunity provided by large funding sources coming in the quarters and years ahead. I'm referring here to the $20 billion Rural Digital Opportunity Fund, or RDOF, and the $65 billion bipartisan infrastructure fund, which have yet to impact our business. In the quarter, Aviata announced a new rural broadband wind with QuickLine Communications, one of the largest Internet service providers in the U.K., QuickLine selected Aviat multiband radios to deliver highly reliable 10 gigabits per second capacity over extended distances. Aviat solutions enable QuickLine to add new business and residential customers with faster speeds and more reliability. This win validates our value proposition for ISPs in the international market, which includes fast deliveries and a seamless experience with the Aviat store, and the highest capacity radios on the market, including our innovative portfolio of multi-band products. From a software standpoint, we recently announced the availability of our new health assurance software, or HASS. This software, the next offering after our frequency assurance software, or FASS, and our suite of software applications, is designed to enable the highest possible level of network performance and reliability by proactively analyzing a customer's network and identifying potential problems before traffic impact occurs. Thanks to an intuitive and easy-to-understand map-based interface and intelligent algorithms, Aviance has reduced the level of microwave expertise required to operate the network, lowering operations costs, and improving total cost of ownership. We believe HAAS will continue the trajectory of growth in our software applications business, building on the momentum created by FAS. We continued the share buyback program during Q3, re-purchasing two million of Aviat's stock under the previously announced $10 million authorization. Before turning the call over to David, let me provide a couple of additional observations and insights. First, this was a very good quarter and first three quarters 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 believe we are well positioned to capture significant opportunities with our differentiated products, software, and services offerings. Finally, the Redline communications transaction is progressing in the regulatory review cycle. We see the Redline transaction as an opportunity to further demonstrate the Aviat operating system. With that, let me turn the call over to David to review our financials before coming back for some final comments. David?