- Aviat (AVNW -14.8%) warns it expects FQ2 (Dec. quarter) revenue of $83M-$87M, well below prior guidance of $100M-$107M and a $104M consensus. $5M of the shortfall is attributed to revenue deferrals stemming from the shift to a managed services agreement (from a typical equipment supply agreement) with a key customer. (PR)
- The mobile backhaul equipment vendor also says it's forming a cost-cutting plan that will yield $12M-$14M/year in cost savings by the start of FY15 (begins in mid-2014), and will lower its quarterly opex to $28M by the end of FQ4 2014.
- Aviat ended FQ2 with $63M in cash, down from $79.3M at the end of FQ1.
- While Aviat tumbles, rival DragonWave (DRWI +2%) is up after posting mixed FQ3 results. CC remarks (transcript) about margin improvement and diminished cash burn in FQ4 could be helping the company out.
- Ceragon (CRNT +5.1%), meanwhile, is adding to the gains it saw yesterday after announcing backhaul equipment deals with major North American and Indian carriers.
Aviat dives after cutting guidance, announcing cost cuts; peers rally
Jan 14 2014, 12:50 ET