Aviat Networks Message Board

Sponsor

To: Rob Preuss who wrote (298)	5/7/2010 11:48:40 AM
From: The Ox	Read Replies (3) of 309

I am very, very disappointed with their performance. Sales for the 9 months in 2010 have fallen to $362Mil from $544Mil (a drop of 33%), yet R+D plus SG+A expenses have basically stayed the same. Absolutely awful, imo. As a percentage of revenue, their operating expenses have gone up from under 25% last year to over 33% this year. Many mergers have serious difficulties the first few years and it looks to this observer that AVNW has not found the synergies they expected. If they expecting business to boom in a few quarters, then this may explain why these numbers look so lousy right now. The most aggressive estimates are for 23% revenue growth next year. They will need to see this type of improvement or they will need to lower their operating costs substantially, as I see it.