Aviat Networks (AVNW) Q4 FY26 earnings call: guidance and Q&A

Asked for a breakdown of North America revenue between carrier and private networks, and the expected flow of MDU revenue into FY27, specifically for the September quarter.

Pete Smith stated North America is approximately 45% private networks and 55% service providers. For MDU, the ramp-up is expected in Q2 FY27, with a chance of some contribution in Q1 FY27, following successful proof of concepts and becoming the preferred vendor.

“So what we really need to do is get that site readiness over the hump in the September quarter, get all of our components on order and enjoy the win in the December quarter.”

asked by Scott Searle · answered by Peter Smith

Inquired about current contribution from LEO satellite opportunities in FY27 guidance and the gross margin trajectory for FY27 given component headwinds.

Pete Smith clarified that there is "no LEO in the guide." Andy Schmidt explained that Q1 FY27 gross margins would be affected by lower volume, but strategies to offset component inflation would be realized from Q2 onwards, expecting upward pressure on gross margins but not as high as mid-30s due to product mix.

“And there's no LEO in the guide.”

asked by Scott Searle · answered by Peter Smith

Asked about any business benefit seen from a large European competitor exiting the microwave business and anticipated increased dialogue for FY27.

Pete Smith noted that converting microwave networks takes 6-18 months. While Aviat has seen "normal course of business wins," the full impact of the competitor's exit (announced November 2025) is expected to materialize more significantly in the March and June quarters of FY27.

“To convert a microwave network, it's a 6- to 18-month proposition. And the good news for us was the announcement was made November of 2025.”

asked by Christian Schwab · answered by Peter Smith

Followed up on the MDU ramp, asking if more significant orders beyond the $25-$30 million already secured should be anticipated in FY27.

Pete Smith stated that while he doesn't want to create anticipation, there "could be" more significant orders. He sized the total annual opportunity for the MDU market at around $100 million, contingent on subscriber growth and Aviat's share versus competition.

“I don't want you to anticipate, but there could be. How about that? Trying to split the middle there. But it's a fair question, and we're hopeful.”

asked by Christian Schwab · answered by Peter Smith

Asked for an update on the Aprisa router funnel and expectations for FY27.

Pete Smith indicated that the Aprisa utility business is performing well. For the LTE router in public safety, initial orders have been received in the U.S., Europe, and Latin America, but it's still relatively small with a long sales cycle. He expressed confidence in the compelling value proposition against competitors like Cradlepoint.

“What I can say is that we have initial orders in the U.S., Europe and Latin America. It's still relatively small, and there's a long lead cycle -- a long, kind of, runway to get government agencies into the purchasing funnel.”

asked by Jaeson Schmidt · answered by Peter Smith

Asked about the type of customers driving the MDU opportunity and what factors would lead to the high or low end of the FY27 revenue guidance range.

Pete Smith described MDU customers as a "U.S. Tier 1 that has access to 39 gigahertz spectrum," serving apartment dwellers. For the high end of guidance, he cited more MDU subscriber growth/share gain, BEAD program impact, private network conversions (including Aprisa LTE router), and new Tier 1 interest.

“I'd like to talk about how to make it -- to get to the higher end, more MDU and how does that, one, is more subscriber growth; two, share gain versus the competition.”

asked by Theodore O'Neill · answered by Peter Smith