Aviat Networks, Inc.

Hello, everyone, and welcome to AVIAD Network's fourth quarter fiscal year 2025 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. Andrew Fredrickson, Vice President of Corporate Finance and Interim CFO. Thank you, and you may begin.

Thank you and welcome to Aviat Network's fourth quarter fiscal 2025 results conference call and webcast. You can find our 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. 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 fiscal guidance, financial projections, business drivers, new products and expansions, 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 materially from those statements. Additional information on factors that could cause actual results to differ materially from the statements expressed or implied on this call can be found in our most recent annual report on Form 10-K filed with the SEC. 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 the financial tables therein, which include a gap to non-gap 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. Let's review the highlights from the fourth quarter. Total revenues of $115.3 million. Non-GAAP gross margin of 35%. Record adjusted EBITDA of $15.1 million, up 27% versus the year ago period. This marks our third consecutive quarter of setting a new record adjusted EBITDA figure. Non-GAAP EPS of 83 cents, up 15% year over year. These quarterly results are a testament to our entire team and reflect the hard work, dedication, and commitment we have to our customers and our shareholders. Let's discuss our end markets and key developments. In private networks, Aviat continues to deliver for our public safety and critical infrastructure companies, including utilities and oil and gas companies with our reliable, secure backhaul, complemented by our access and routing portfolios. In public safety, we remain a leader with sustained share of demand and expect a good environment in the year ahead. Industry research shows that overall city and state budgets for fiscal year 2026 are growing by 4% and 6% respectively. Even more relevant for Aviat, allocations to city police and fire budgets are growing by 5%. and states are growing public safety budgets by 8%. This backdrop of funding growth aligns with land mobile radio or LMR network upgrades to better support video and data communications, which creates growing demand for AVIAD's suite of backhaul radios, routers, and services. Our backlog in North America remains high thanks to multiple large statewide public safety networks. Although our federal business is relatively small compared to our state and local government business, there are expanding opportunities as a result of the One Big Beautiful Bill Act, which has allocated $17 billion for the support of state and local law enforcement of border security and $6 billion for border technology. This will create opportunities for AVIAD given our leadership in public safety networks. Moving on to our mobile service provider markets. The fourth quarter represented a rebound in spending from US Tier 1 versus earlier in the fiscal year and strong revenues from certain APAC countries. Our revenues from PassLink are in line with our goal of $140 million in annualized revenues. We made a commitment to our shareholders that PassLink revenues would be at this level exiting fiscal 2025, and we are happy to have delivered. Looking ahead, we believe that fiscal 2026 will have a broader set of opportunities for Aviat to grow versus fiscal 2025, based on mobile service providers' CapEx plans globally. Many emerging market operators are still early in building out their 5G networks, and we believe there will be opportunities for Aviat to participate in these network build-outs. The North American Tier 1 market should also be stronger than in previous years, thanks to efforts to build out fixed wireless access. Regarding our rural broadband business and the broadband equity access and deployment program, we see increasing utilization of wireless solutions for this segment compared to initial estimates, which we think is wise given the speeds and capacity delivered and the cost and speed to deploy wireless versus fiber. For example, New Mexico's final BEAD proposal awards 40% of serviceable locations to fixed wireless access providers, and Washington State awarded 39%. Kansas awarded 50% of locations to hybrid and fixed wireless access solutions. This technologically neutral approach will create more opportunities for wireless backhaul, and we look forward to working closely with the states and rural broadband providers to service this program. We continue to believe that we will not see revenue impact from BEAT until calendar year 2026, and will not include it in any financial guidance until we have better visibility. Last quarter, we said that we anticipated an impact to Avia from tariffs, but we have the goal of offsetting most, if not all, of the impact on our bottom line. Thanks to the tireless work by our operations, finance, and sales teams, We have indeed seen minimal impact to Aviat's profitability as a result of tariffs thus far. We have moved nearly 1.5 million worth of supply purchases from China. We continue to execute on our plans to mitigate the impact of tariffs and are pleased with the progress Aviat has made. On the product development side, Aviat Networks recently introduced our new European Telecom Standards Institute compliant or ETSI radio. This opens up a new market opportunity for us thanks to industry-leading power, which allows customers to build networks over longer distances with fewer towers and smaller antennas, which substantially reduces total cost of ownership. The radio's all-indoor design also simplifies maintenance, enhances safety, providing a reliable and cost-effective solution for mission-critical applications. This radio has been a leading solution in North America and we are excited to bring it to our international markets. I would now like to turn the call over to Michael and Andrew to review the financial results of the quarter before coming back for closing remarks and our fiscal 2026 guidance. Michael.