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Aviat Networks Provides Plan to Lower Costs and Expenses to Better Position Company for Future Profitability

 Aviat Networks Provides Plan to Lower Costs and Expenses to Better Position
                       Company for Future Profitability

Aviat Networks Enters into a Strategic Managed Services Agreement with a Key
Customer

Aviat Networks Updates 2QFY14 Revenue Guidance

PR Newswire

SANTA CLARA, Calif., Jan. 14, 2014

SANTA CLARA, Calif., Jan. 14, 2014 /PRNewswire/ --Aviat Networks, Inc.
(NASDAQ: AVNW), the leading expert in microwave networking solutions, today
summarized cost reduction plans that are expected to better position Aviat
Networks for current and future demand cycles. In addition, Aviat Networks
summarized the expected impact of a managed services agreement with a key
customer, updated guidance for revenue in the second quarter of fiscal 2014
and announced the date and dial-in information for its next earnings call.

Aviat Networks management is developing a plan to lower quarterly non-GAAP
operating expense to approximately $28 million for the fourth quarter of
fiscal 2014. Both fixed and variable costs are being examined. Cost savings
are expected from efforts to consolidate the Aviat Networks' supply chain and
locations globally, focus its selling efforts, leverage a single technology
platform, and simplify its back office operations. Management currently
expects the annual savings of these efforts to be approximately $12 million to
$14 million entering fiscal year 2015. After presenting to the Board of
Directors and finalizing the plan, management will disclose additional details
in filings with the Securities and Exchange Commission in the upcoming weeks.

Aviat Networks is entering into a managed services agreement with a key
customer. The agreement is expected to solidify Aviat Networks' relationship
with this key customer as Aviat Networks provides a broader set of value-added
services including network design and planning services, inventory and spares
management and warehousing services in an Aviat-controlled facility. Although
invoicing and cash collections are triggered by the shipment of equipment from
Aviat's factory, the arrangement will change the timing of revenue recognition
as equipment is expected to temporarily reside in an Aviat-controlled
warehouse. As a result, Aviat Networks expects to defer approximately $5
million in second quarter of fiscal 2014 revenue. As the Company defers
revenue on this agreement, reported revenue will be impacted. The net impact
on deferred revenue related to this agreement is expected to stabilize within
the next three to four quarters. Other than the items noted above, the
commercial terms and conditions for this key account remain substantially
unchanged.

Including the deferred revenue impact of the managed services agreement, Aviat
Networks is lowering its expected second quarter of fiscal 2014 revenue to a
range of $83 million to $87 million due to lower than expected customer orders
in Africa. Management's prior revenue guidance of $100 million to $107 million
for the second quarter of fiscal 2014 explicitly excluded any impact from the
managed services agreement. Although the change in revenue is expected to
impact earnings per share, Aviat Networks is unable to quantify the expected
impact at this time.

Aviat Networks ended the second quarter of fiscal 2014 with a cash balance of
$63 million. Cash was impacted by a $13 million tax payment to a foreign
jurisdiction. Aviat Networks continues to appeal this decision.

Today's announcement is based on management's preliminary analysis of
operations for the quarter ended December 27, 2013. Aviat Networks will report
complete second quarter of fiscal 2014 financial results after the market
closes on January 30, 2014. No further financial information for the second
quarter of fiscal 2014 will be provided prior to that date.

Aviat Networks will host a conference call at 4:30 p.m. ET on January 30, 2014
to discuss its financial results for the second quarter of fiscal 2014. To
listen to the live conference call, please dial 480-629-9712 or toll free at
877-941-2068, access code 4662815, by 4:20 p.m. ET. A replay also will be
available starting approximately one hour after the completion of the call
until February 6, 2014. To access the replay, dial 303-590-3030 or toll free
at 800-406-7325, access code 4662815. Investors are invited to listen via
webcast, which will be broadcast live and via replay at
http://investors.aviatnetworks.com/events.cfm.

About Aviat Networks, Inc.

Aviat Networks, Inc. (NASDAQ: AVNW) is a leading global provider of microwave
networking solutions transforming communications networks to handle the
exploding growth of IP-centric, multi-Gigabit data services. With more than
750,000 systems installed around the world, Aviat Networks provides LTE-proven
microwave networking solutions to mobile operators, including some of the
largest and most advanced 4G/LTE networks in the world. Public safety,
utility, government and defense organizations also trust Aviat Networks'
solutions for their mission-critical applications where reliability is
paramount. In conjunction with its networking solutions, Aviat Networks
provides a comprehensive suite of localized professional and support services
enabling customers to effectively and seamlessly migrate to next generation
Carrier Ethernet/IP networks. For more than 50 years, customers have relied on
Aviat Networks' high performance and scalable solutions to help them maximize
their investments and solve their most challenging network problems.
Headquartered in Santa Clara, California, Aviat Networks operates in more than
100 countries around the world. For more information, visit
www.aviatnetworks.com or connect with Aviat Networks on Twitter, Facebook and
LinkedIn.

Forward-Looking Statements

The information contained in this document includes forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
Section 21E of the Securities Exchange Act and Section 27A of the Securities
Act. All statements, trend analyses and other information contained herein
about the markets for the services and products of Aviat Networks, including
all statements about Aviat Networks' efforts to reduce costs, expectations
regarding revenue in the second quarter of fiscal year 2014 and the reasons
therefor, and managed services relationship with a key customer and impact
thereof, as well as other statements identified by the use of forward-looking
terminology, including "anticipates," "believe," "plan," "estimate," "expect,"
"goal," "will," "see," "continues," "delivering," "view," and "intend," or the
negative of these terms or other similar expressions, constitute
forward-looking statements. These forward-looking statements are based on
estimates reflecting the current beliefs of the senior management of Aviat
Networks. These forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially from those
suggested by the forward-looking statements. Forward-looking statements should
therefore be considered in light of various important factors, including those
set forth in this document. Important factors that could cause actual results
to differ materially from estimates or projections contained in the
forward-looking statements include the following:

  othe impact of the volume, timing and customer, product and geographic mix
    of our product orders;
  oour ability to meet projected new product development dates or anticipated
    cost reductions of new products;
  ocontinued price erosion as a result of increased competition in the
    microwave transmission industry
  oour suppliers' inability to perform and deliver on time as a result of
    their financial condition, component shortages or other supply chain
    constraints;
  ocustomer acceptance of new products;
  othe ability of our subcontractors to timely perform;
  ocontinued weakness in the global economy affecting customer spending;
  oretention of our key personnel;
  oour ability to manage and maintain key customer relationships;
  ouncertain economic conditions in the telecommunications sector combined
    with operator and supplier consolidation;
  othe timing of our receipt of payment for products or services from our
    customers;
  oour failure to protect our intellectual property rights or defend against
    intellectual property infringement claims by others;
  othe impact of political turmoil in countries where we have significant
    business.

For more information regarding the risks and uncertainties for our business,
see "Risk Factors" in our Form 10-K filed with the U.S. Securities and
Exchange Commission ("SEC") on September 23, 2013 as well as other reports
filed by Aviat Networks, Inc. with the SEC from time to time. Aviat Networks
undertakes no obligation to update publicly any forward-looking statement for
any reason, except as required by law, even as new information becomes
available or other events occur in the future.

SOURCE Aviat Networks, Inc.

Website: http://www.us.aviatnetworks.com
Contact: (Investor Relations) Peter Salkowski, Aviat Networks, Inc., (408)
567-7117, investorinfo@aviatnet.com
 
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