Aviat Networks, Inc.

Good afternoon. Welcome to Aviat Network's third quarter fiscal 2026 earnings call. Currently, 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, Corporate Finance. Thank you. You may begin.

Thank you, and welcome to Aviat Network's third quarter fiscal 2026 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. With me today are Pete Smith, Aviat's president and CEO, who will begin with opening remarks on the company's fiscal quarter, followed by Andy Schmidt, CFO, to review the financial results for the quarter. Pete will then provide closing remarks on Aviat's strategy and outlook, followed by a question and answer session. Janana Mikulenka, Aviat's chief accounting officer, is also with us on the 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 filings with the SEC. 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.aviannetworks.com, and financial tables therein, which include a GAAP to non-GAAP reconciliation and other supplemental financial information. At this time, I would like to turn the call over to Aviab's President and CEO, Pete Smith. Pete?

Thanks, Andrew, and good afternoon. Let's review the highlights from the third quarter. Total revenues of $100.0 million. Adjusted EBITDA of $4.4 million. Non-GAAP BPS of six cents. lowered inventories by $4.0 million versus the December quarter, maintained a trailing 12-month book-to-bill ratio greater than 1.0. Quarterly results were impacted by the conflict in the Middle East, where we saw certain project pushouts and unfavorable end-of-quarter demand shifts in several Tier 1 customers, totaling approximately $9 million in revenue. Now, let me talk more about our end markets and key developments. In the US, we see reason for optimism in the quarters ahead as we gain increased visibility on timing of our multi-dwelling unit or MDU opportunity. Growing demand from utilities as they invest to meet increased power demand from artificial intelligence build outs and the nearing arrival of the broadband equity access and deployment or BEAD program. On the MDU, we have increased confidence in the level of commitment to this project from our Tier 1 customer, and we believe that we have secured a favored position as the supplier of choice. This is translating to increased visibility on timing for the markets we have won and opening the door to additional market areas for deployment. For the projects in progress, we have installations occurring now and through the rest of Q4. These are still relatively small, We expect a larger step up during fiscal 2027. As the Avion installations progress and we compete for additional markets related to the MDU opportunity, we are seeing more prospects to provide services and other value-added solutions to our Tier 1 customer. Overall, we are feeling better about this opportunity today than at any other previous point. and believe we will have meaningful revenue contribution from this project in fiscal year 2027. Further, we have validated our next-generation offering in this area. Should subscriber growth materialize, we anticipate demand for this next-gen product in fiscal year 2028. Private networks remain Aviat's largest segment today, and within private networks, utilities are Aviat's second largest customer group in this segment. Aviat has been strategically focused on growing our presence and offerings with utilities over the last several years with product innovations like our ultra high powered 11 gigahertz radio and the 2024 acquisition of 4RF. Even prior to the demand brought on by artificial intelligence and data center build outs, there was a growing need for increased investment in America's grid from a modernization and reliability standpoint. Today, the outlook for AVIAD and utilities is quite robust. Recent industry reports suggest that utilities will deploy $1.4 trillion on capital spending plans over the next five years. This forecast is up over 20% versus a year ago. Approximately half of this spend will go towards transmission and distribution. where AVIAD's network hardware is critical for smart grid connectivity and management, substation monitoring and security, crew communications, and wildfire detection. Power generation has become the primary constraint and a fundamental determinant of growth for artificial intelligence or AI. This build out of the grid lifts the importance of mission critical communication, and AVIAD is well positioned to capture increasing share of demand in this market. The utility segment is approaching 10% of our overall business. Our funnel of opportunity is strong, and the discussions we are having with many of the largest utilities in the U.S. signals that this growth opportunity will remain for several years ahead. Lastly, on the BEAD program, our customers continue to signal that purchase orders related to the program should begin in mid to late calendar 2026. This is consistent with the message we have told investors for approximately a year now. However, as final approvals are made, the set of opportunities is beginning to take shape. 46 of the 56 states and territories have signed their final award agreement. The total funding for the approved deployment spend to date is approximately $20 billion. The size of the opportunity depends on the allocation of B funds towards fixed wireless access, which in our estimation stands between 10% and 15% of the award dollars. The allocation of funds to wireless has been increasing over time. Feedback from four of our wireless internet service provider customers, who have all won the deployment projects, signal that calendar 2027 will likely see the largest ramp purchase orders for Avion. But we still remain very early in the fund deployment lifecycle and we'll provide updates as available. Aviat stands at the ready to assist all of its customers with bead opportunities thanks to its Build America, Buy America certifications, our e-commerce Aviat store presence, and our leading position in serving rural broadband needs. Apart from these growth drivers, we've invested in our roadmap. We've taken our North American all-indoor radio to international markets. We are also bringing Pass-a-Link radios to North America in early fiscal 2027. Both these represent installed-based opportunities for an addressable market of over 250 million. I will now turn the call over to Andy to go through the financial results.