Aviat (NASDAQ:AVNW) has named ex-CEO Chuck Kissner its executive chairman.
The microwave transmission hardware vendor says Kissner will assist CEO Michael Pangia with "strategic initiatives, long-term product and service planning and further alignment of Aviat's business model."
Aviat (AVNW -25.5%) badly missed FQ3 estimates and (citing poor visibility) declined to provide FQ4 guidance. The company also stated its cash balance fell by $17.2M Q/Q to $47.5M, and that it's addressing liquidity issues by "taking steps" to improve its cost structure and working capital management.
On the CC (transcript), Aviat noted African sales fell 42% Y/Y, something it blames on weak carrier spending. Nonetheless, the company's overall book-to-bill was "substantially above 1."
Other providers of microwave/backhaul hardware for carriers are also selling off on yet another rough day for high-beta tech stocks. UBNT -3.3%. CRNT -4.5%. DRWI -5.1%.
Ubiquiti and Ceragon report tomorrow, and DragonWave on May 14.
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.