Aviat Networks Cuts 4Q Revenue Target; New CEO Plans Revamp
Aviat Networks Inc. (AVNW) lowered its fiscal fourth quarter revenue target, largely on component shortages and delays in the wireless network service provider moves to outsource production.Chairman and Chief Executive Chuck Kissner said he and the board Aviat not "satisfied" with the recent performance of the company and were planning a comprehensive strategic plan - including cost-cutting and refocusing the product - to to restore profitability. Actions will be announced on or before August 20, when the fourth quarter results are due.
Shares rose 22 cents in recent trading to $ 4. The stock is down 45% this year, the company struggled with declining demand, keeping the company in red.
For the quarter ended July 2 Aviat now expects revenue of $ 115 million to $ 120 million, lower than the already downbeat view of $ 125 million in May
Kissner CEO last week, returning to day-to-day monitoring activities for third time. He spent a combined 10 years as CEO of Stratex Networks, a predecessor company of Aviat.
Hedge fund Ramius LLC on Wednesday sent a letter to Kissner, having regard to the concern about the deteriorating financial performance of the company and the lack of measures to adapt to operating in line with the company's current business outlook. " Ramius reported a 6.2% stake in Aviat, which he "deeply appreciated" and in the position of "significant operational improvements.
The company in May said its fiscal third-quarter loss on lower margins improved while sales fell 24%.
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