Entering text into the input field will update the search result below

Aviat's Acquisition Of Redline Is A Positive For The Bottom Line

May 03, 2022 11:39 AM ETAviat Networks, Inc. (AVNW)2 Comments
Chetan Woodun profile picture
Chetan Woodun


  • Aviat Networks has made a proposal to acquire Redline Communications, a Canadian wireless company that specializes in virtual fiber.
  • The acquisition not only provides the U.S. company with an end-to-end solution in a rapidly growing industry but is also accretive to its gross margins.
  • There is more in terms of marketing and cost synergies after the deal gets done by August and the management executes.
  • On the other hand, there could be short-term pains when third-quarter financial results are announced on May 4 due to supply chain concerns and higher inflation.
  • Over the longer term, Aviat is a buy and can deliver a potential upside of 18% based on its lower valuations.

A chemical engineer in a white helmet holds a phone in his hands while watching the working oil pumps

Larisa Rudenko/iStock via Getty Images

I provided insights as to how Aviat Networks (NASDAQ:AVNW) is transforming into a Wireless-as-a-Service model back in July last year. The U.S. company's proposal to acquire Redline Communications (RDLCF) in

Avait and Redline price % change
Data by YCharts

Orange presentation

Redline's products (rdlcom.com)


Comparison with peers (Seeking Alpha)

AVNW valuation grade

Valuations (Seeking Alpha)

This article was written by

Chetan Woodun profile picture
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I like to write around themes like automated supply chains, Generative AI, telcos Capex, the deflationary nature of software, semiconductors, etc and I am often contrarian. I have also covered biotechs.I have also been an entrepreneur in real estate ( a mediocre one), a business owner, and a farmer, and dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I help needy families by providing sponsored work and contributing peer reviews and opinions for enterprise tech.I have been investing for the last 25 years, initially in mutual or indexed funds before later opting for individual stocks. Got a lot of experience in the 2008/2009 downturn when I lost a lot due mostly to wrong advice. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best analysts.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.