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CISCO REPORTS SECOND QUARTER EARNINGS

Published

2 years ago

on

SAN JOSE, Calif., Feb. 14, 2024 /PRNewswire/ — 

News Summary:

$12.8 billion in revenue, down 6% year over year; GAAP EPS $0.65, down 3% year over year, and Non-GAAP EPS $0.87, down 1% year over year

Revenue growth in security, collaboration and observabilityProgress on business model transformation in Q2 FY 2024:Total software revenue was flat year over year and software subscription revenue up 5% year over yearTotal annualized recurring revenue (ARR) at $24.7 billion, up 6% year over year and product ARR up 9% year over yearRemaining performance obligations (RPO) at $35.7 billion, up 12% year over year and product RPO up 12% year over yearDividend increased by 3% to $0.40 per shareQ2 FY 2024 Results:Revenue: $12.8 billionDecrease of 6% year over yearEarnings per Share: GAAP: $0.65; Non-GAAP: $0.87GAAP EPS decreased 3% year over yearNon-GAAP EPS decreased 1% year over yearQ3 FY 2024 Guidance:   Revenue: $12.1 billion to $12.3 billionEarnings per Share: GAAP: $0.51 to $0.56; Non-GAAP: $0.84 to $0.86FY 2024 Guidance:Revenue: $51.5 billion to $52.5 billionEarnings per Share: GAAP: $2.61 to $2.73; Non-GAAP: $3.68 to $3.74

Cisco today reported second quarter results for the period ended January 27, 2024. Cisco reported second quarter revenue of $12.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.6 billion or $0.65 per share, and non-GAAP net income of $3.5 billion or $0.87 per share.

“We delivered a solid second quarter with strong operating leverage and capital returns,” said Chuck Robbins, chair and CEO of Cisco. “We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”

“Focused execution and operating discipline drove our solid top and bottom-line results and strong margins in Q2,” said Scott Herren, CFO of Cisco. “We are making good progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns, as evidenced by our increased dividend.”

GAAP Results

Q2 FY 2024

Q2 FY 2023

Vs. Q2 FY 2023

Revenue

$    12.8 billion

$      13.6 billion

(6) %

Net Income

$     2.6  billion

$       2.8  billion

(5) %

Diluted Earnings per Share (EPS)

$           0.65

$             0.67

(3) %

 

Non-GAAP Results

Q2 FY 2024

Q2 FY 2023

Vs. Q2 FY 2023

Net Income

$      3.5 billion

$      3.6 billion

(3) %

EPS

$           0.87

$            0.88

(1) %

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Cisco Increases Quarterly Dividend

Cisco has declared a quarterly dividend of $0.40 per common share, a 1-cent increase or up 3%, over the previous quarter’s dividend, to be paid on April 24, 2024, to all stockholders of record as of the close of business on April 4, 2024. Future dividends will be subject to Board approval.

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q2 FY 2024 Highlights

Revenue — Total revenue was $12.8 billion, down 6%, with product revenue down 9% and service revenue up 4%. Revenue by geographic segment was: Americas down 4%, EMEA down 7%, and APJC was down 12%. Product revenue performance reflected growth in Security up 3%, Collaboration up 3% and Observability up 16%. Networking was down 12%.

Gross Margin — On a GAAP basis, total gross margin, product gross margin, and service gross margin were 64.2%, 62.7%, and 68.2%, respectively, as compared with 62.0%, 60.2%, and 67.2%, respectively, in the second quarter of fiscal 2023.

On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 66.7%, 65.2%, and 70.5%, respectively, as compared with 63.9%, 62.1%, and 69.1%, respectively, in the second quarter of fiscal 2023.

Total gross margins by geographic segment were: 65.7% for the Americas, 68.1% for EMEA and 68.2% for APJC.

Operating Expenses — On a GAAP basis, operating expenses was flat at $5.1 billion, and were 40.0% of revenue. Non-GAAP operating expenses were $4.3 billion, up 1%, and were 33.8% of revenue.

Operating Income — GAAP operating income was $3.1 billion, down 6%, with GAAP operating margin of 24.2%. Non-GAAP operating income was $4.2 billion, down 4%, with non-GAAP operating margin at 33.0%.

Provision for Income Taxes — The GAAP tax provision rate was 16.7%. The non-GAAP tax provision rate was 19.0%.

Net Income and EPS — On a GAAP basis, net income was $2.6 billion, a decrease of 5%, and EPS was $0.65, a decrease of 3%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 3%, and EPS was $0.87, a decrease of 1%.

Cash Flow from Operating Activities — $0.8 billion for the second quarter of fiscal 2024, a decrease of 83% compared with $4.7 billion for the second quarter of fiscal 2023.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments — $25.7 billion at the end of the second quarter of fiscal 2024, compared with $26.1 billion at the end of fiscal 2023.

Remaining Performance Obligations (RPO) — $35.7 billion, up 12% in total, with 50% of this amount to be recognized as revenue over the next 12 months. Product RPO and service RPO were each up 12%.

Deferred Revenue — $25.8 billion, up 8% in total, with deferred product revenue up 9%. Deferred service revenue was up 7%.

Capital Allocation — In the second quarter of fiscal 2024, we returned $2.8 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.39 per common share, or $1.6 billion, and repurchased approximately 25 million shares of common stock under our stock repurchase program at an average price of $49.54 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the program is $8.4 billion with no termination date.

Guidance

Cisco expects to achieve the following results for the third quarter of fiscal 2024:

Q3 FY 2024

Revenue

$12.1 billion – $12.3 billion

Non-GAAP gross margin rate

66% – 67%

Non-GAAP operating margin rate

33.5% – 34.5%

Non-GAAP EPS

$0.84 – $0.86

Cisco estimates that GAAP EPS will be $0.51 to $0.56 for the third quarter of fiscal 2024.

Cisco expects to achieve the following results for fiscal 2024:

FY 2024

Revenue

$51.5 billion – $52.5 billion

Non-GAAP EPS

$3.68 – $3.74

Cisco estimates that GAAP EPS will be $2.61 to $2.73 for fiscal 2024.

Our Q3 FY 2024 and FY 2024 guidance assumes an effective tax provision rate of 18% for GAAP and 19% for non-GAAP results.

A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Editor’s Notes:

Q2 fiscal year 2024 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, February 14, 2024 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).Conference call replay will be available from 4:00 p.m. Pacific Time, February 14, 2024 to 12:00 a.m. Pacific Time, February 21, 2024 at 1-800-876-5258 (United States) or 1-203-369-3998 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, February 14, 2024. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

 

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited) 

Three Months Ended

Six Months Ended

January 27, 2024

January 28, 2023

January 27, 2024

January 28, 2023

REVENUE:

Product

$         9,232

$       10,155

$       20,371

$       20,400

Service

3,559

3,437

7,088

6,824

Total revenue

12,791

13,592

27,459

27,224

COST OF SALES:

Product

3,443

4,038

7,400

8,217

Service

1,131

1,127

2,285

2,234

Total cost of sales

4,574

5,165

9,685

10,451

GROSS MARGIN

8,217

8,427

17,774

16,773

OPERATING EXPENSES:

Research and development

1,943

1,855

3,856

3,636

Sales and marketing

2,458

2,384

4,964

4,775

General and administrative

642

582

1,314

1,147

Amortization of purchased intangible assets

66

71

133

142

Restructuring and other charges

12

243

135

241

Total operating expenses

5,121

5,135

10,402

9,941

OPERATING INCOME

3,096

3,292

7,372

6,832

Interest income

324

219

684

388

Interest expense

(120)

(107)

(231)

(207)

Other income (loss), net

(139)

11

(222)

(123)

Interest and other income (loss), net

65

123

231

58

INCOME BEFORE PROVISION FOR INCOME TAXES

3,161

3,415

7,603

6,890

Provision for income taxes

527

642

1,331

1,447

NET INCOME

$         2,634

$         2,773

$         6,272

$         5,443

Net income per share:

Basic

$           0.65

$           0.68

$           1.55

$           1.33

Diluted

$           0.65

$           0.67

$           1.54

$           1.32

Shares used in per-share calculation:

Basic

4,055

4,103

4,056

4,105

Diluted

4,073

4,116

4,079

4,115

 

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

January 27, 2024

Three Months Ended

Six Months Ended

Amount

Y/Y %

Amount

Y/Y %

Revenue:

Americas

$         7,510

(4) %

$       16,532

5 %

EMEA

3,484

(7) %

7,148

(3) %

APJC

1,798

(12) %

3,779

(7) %

Total

$       12,791

(6) %

$       27,459

1 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

January 27, 2024

Three Months Ended

Six Months Ended

Gross Margin Percentage:

Americas

65.7 %

65.9 %

EMEA

68.1 %

68.8 %

APJC

68.2 %

67.6 %

 

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

January 27, 2024

Three Months Ended

Six Months Ended

Amount

Y/Y %

Amount

Y/Y %

Revenue:

Networking

$         7,081

(12) %

$       15,904

(1) %

Security

973

3 %

1,984

4 %

Collaboration

989

3 %

2,106

3 %

Observability

188

16 %

378

18 %

Total Product

9,232

(9) %

20,371

— %

Services

3,559

4 %

7,088

4 %

Total

$       12,791

(6) %

$       27,459

1 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

January 27, 2024

July 29, 2023

ASSETS

Current assets:

Cash and cash equivalents

$              13,715

$              10,123

Investments

11,956

16,023

Accounts receivable, net of allowance of $79 at January 27, 2024 and $85 at July 29, 2023

4,884

5,854

Inventories

3,209

3,644

Financing receivables, net

3,476

3,352

Other current assets

4,887

4,352

Total current assets

42,127

43,348

Property and equipment, net

2,005

2,085

Financing receivables, net

3,364

3,483

Goodwill

39,087

38,535

Purchased intangible assets, net

1,678

1,818

Deferred tax assets

7,338

6,576

Other assets

5,575

6,007

TOTAL ASSETS

$            101,174

$            101,852

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

$                4,936

$                1,733

Accounts payable

1,848

2,313

Income taxes payable

1,876

4,235

Accrued compensation

3,216

3,984

Deferred revenue

14,011

13,908

Other current liabilities

4,964

5,136

Total current liabilities

30,851

31,309

Long-term debt

6,669

6,658

Income taxes payable

3,390

5,756

Deferred revenue

11,760

11,642

Other long-term liabilities

2,253

2,134

Total liabilities

54,923

57,499

Total equity

46,251

44,353

TOTAL LIABILITIES AND EQUITY

$            101,174

$            101,852

 

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Six Months Ended

January 27,
2024

January 28,
2023

Cash flows from operating activities:

Net income

$              6,272

$              5,443

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization, and other

823

853

Share-based compensation expense

1,463

1,097

Provision (benefit) for receivables

12

6

Deferred income taxes

(816)

(845)

(Gains) losses on divestitures, investments and other, net

205

109

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

Accounts receivable

941

1,393

Inventories

442

(569)

Financing receivables

(33)

834

Other assets

(403)

(210)

Accounts payable

(476)

42

Income taxes, net

(4,656)

118

Accrued compensation

(763)

(146)

Deferred revenue

293

633

Other liabilities

(125)

(57)

Net cash provided by operating activities

3,179

8,701

Cash flows from investing activities:

Purchases of investments

(2,253)

(3,797)

Proceeds from sales of investments

2,484

587

Proceeds from maturities of investments

4,044

2,316

Acquisitions, net of cash and cash equivalents acquired

(878)

(3)

Purchases of investments in privately held companies

(50)

(70)

Return of investments in privately held companies

123

39

Acquisition of property and equipment

(304)

(346)

Other

(1)

(19)

Net cash provided by (used in) provided by investing activities

3,165

(1,293)

Cash flows from financing activities:

Issuances of common stock

349

316

Repurchases of common stock – repurchase program

(2,504)

(1,760)

Shares repurchased for tax withholdings on vesting of restricted stock units

(581)

(310)

Short-term borrowings, original maturities of 90 days or less, net

1,398

(602)

Issuances of debt

2,537

—

Repayments of debt

(750)

—

Dividends paid

(3,163)

(3,120)

Other

(7)

(5)

Net cash used in financing activities

(2,721)

(5,481)

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

(32)

3

Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents

3,591

1,930

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

11,627

8,579

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$           15,218

$           10,509

Supplemental cash flow information:

Cash paid for interest

$                 203

$                 178

Cash paid for income taxes, net

$              6,804

$              2,172

 

CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)

January 27, 2024

October 28, 2023

January 28, 2023

Amount

Y/Y%

Amount

Y/Y%

Amount

Y/Y%

Product

$    16,249

12 %

$    16,011

14 %

$    14,517

7 %

Service

19,407

12 %

18,742

11 %

17,255

2 %

Total

$    35,656

12 %

$    34,753

12 %

$    31,772

4 %

We expect 50% of total RPO at January 27, 2024 will be recognized as revenue over the next 12 months.

 

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

January 27, 2024

October 28, 2023

January 28, 2023

Deferred revenue:

Product

$       11,640

$       11,689

$       10,679

Service

14,131

13,970

13,248

Total

$       25,771

$       25,659

$       23,927

Reported as:

Current

$       14,011

$       13,812

$       13,109

Noncurrent

11,760

11,847

10,818

Total

$       25,771

$       25,659

$       23,927

 

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)

DIVIDENDS

STOCK REPURCHASE PROGRAM

TOTAL

Quarter Ended

Per Share

Amount

Shares

Weighted-
Average Price
per Share

Amount

Amount

Fiscal 2024

January 27, 2024

$             0.39

$          1,583

25

$          49.54

$          1,254

$          2,837

October 28, 2023

$             0.39

$          1,580

23

$          54.53

$          1,252

$          2,832

Fiscal 2023

July 29, 2023

$             0.39

$          1,589

25

$          50.49

$          1,254

$          2,843

April 29, 2023

$             0.39

$          1,593

25

$          49.45

$          1,259

$          2,852

January 28, 2023

$             0.38

$          1,560

26

$          47.72

$          1,256

$          2,816

October 29, 2022

$             0.38

$          1,560

12

$          43.76

$             502

$          2,062

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME

(In millions)

Three Months Ended

Six Months Ended

January 27,
2024

January 28,
2023

January 27,
2024

January 28,
2023

GAAP net income

$         2,634

$         2,773

$         6,272

$         5,443

Adjustments to cost of sales:

Share-based compensation expense

139

106

242

187

Amortization of acquisition-related intangible assets

175

153

356

306

Acquisition-related/divestiture costs

1

1

1

3

Total adjustments to GAAP cost of sales

315

260

599

496

Adjustments to operating expenses:

Share-based compensation expense

662

498

1,212

913

Amortization of acquisition-related intangible assets

66

71

133

142

Acquisition-related/divestiture costs

64

48

139

123

Russia-Ukraine war costs

—

2

(2)

5

Significant asset impairments and restructurings

12

243

135

241

Total adjustments to GAAP operating expenses

804

862

1,617

1,424

Adjustments to interest and other income (loss), net:

(Gains) and losses on investments

88

(44)

139

65

Total adjustments to GAAP interest and other income (loss), net

88

(44)

139

65

Total adjustments to GAAP income before provision for income taxes

1,207

1,078

2,355

1,985

Income tax effect of non-GAAP adjustments

(303)

(212)

(561)

(404)

Significant tax matters

—

—

—

164

Total adjustments to GAAP provision for income taxes

(303)

(212)

(561)

(240)

Non-GAAP net income

$         3,538

$         3,639

$         8,066

$         7,188

  

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS

Three Months Ended

Six Months Ended

January 27,
2024

January 28,
2023

January 27,
2024

January 28,
2023

GAAP EPS

$           0.65

$           0.67

$           1.54

$           1.32

Adjustments to GAAP:

Share-based compensation expense

0.20

0.15

0.36

0.27

Amortization of acquisition-related intangible assets

0.06

0.05

0.12

0.11

Acquisition-related/divestiture costs

0.02

0.01

0.03

0.03

Significant asset impairments and restructurings

—

0.06

0.03

0.06

(Gains) and losses on investments

0.02

(0.01)

0.03

0.02

Income tax effect of non-GAAP adjustments

(0.07)

(0.05)

(0.14)

(0.10)

Significant tax matters

—

—

—

0.04

Non-GAAP EPS

$           0.87

$           0.88

$           1.98

$           1.75

Amounts may not sum due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,
AND NET INCOME

(In millions, except percentages)

Three Months Ended

January 27, 2024

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
andother
income
(loss), net

Net
Income

Y/Y

GAAP amount

$ 5,789

$ 2,428

$ 8,217

$ 5,121

— %

$ 3,096

(6) %

$    65

$ 2,634

(5) %

% of revenue

62.7 %

68.2 %

64.2 %

40.0 %

24.2 %

0.5 %

20.6 %

Adjustments to GAAP amounts:

Share-based compensation expense

58

81

139

662

801

—

801

Amortization of acquisition-related intangible assets

175

—

175

66

241

—

241

Acquisition/divestiture-related costs

1

—

1

64

65

—

65

Significant asset impairments and restructurings

—

—

—

12

12

—

12

(Gains) and losses on investments

—

—

—

—

—

88

88

Income tax effect/significant tax matters

—

—

—

—

—

—

(303)

Non-GAAP amount

$ 6,023

$ 2,509

$ 8,532

$ 4,317

1 %

$ 4,215

(4) %

$  153

$ 3,538

(3) %

% of revenue

65.2 %

70.5 %

66.7 %

33.8 %

33.0 %

1.2 %

27.7 %

               

Three Months Ended

January 28, 2023

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and other
income
(loss), net

Net

Income

GAAP amount

$   6,117

$   2,310

$   8,427

$   5,135

$   3,292

$      123

$   2,773

% of revenue

60.2 %

67.2 %

62.0 %

37.8 %

24.2 %

0.9 %

20.4 %

Adjustments to GAAP amounts:

Share-based compensation expense

40

66

106

498

604

—

604

Amortization of acquisition-related intangible assets

153

—

153

71

224

—

224

Acquisition/divestiture-related costs

1

—

1

48

49

—

49

Significant asset impairments and restructurings

—

—

—

243

243

—

243

Russia-Ukraine war costs

—

—

—

2

2

—

2

(Gains) and losses on investments

—

—

—

—

—

(44)

(44)

Income tax effect/significant tax matters

—

—

—

—

—

—

(212)

Non-GAAP amount

$   6,311

$   2,376

$   8,687

$   4,273

$   4,414

$        79

$   3,639

% of revenue

62.1 %

69.1 %

63.9 %

31.4 %

32.5 %

0.6 %

26.8 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,
AND NET INCOME

(In millions, except percentages)

Six Months Ended

January 27, 2024

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
and other
income
(loss), net

Net Income

Y/Y

GAAP amount

$ 12,971

$ 4,803

$ 17,774

$ 10,402

5 %

$ 7,372

8 %

$  231

$ 6,272

15 %

% of revenue

63.7 %

67.8 %

64.7 %

37.9 %

26.8 %

0.8 %

22.8 %

Adjustments to GAAP amounts:

Share-based compensation expense

100

142

242

1,212

1,454

—

1,454

Amortization of acquisition-related intangible assets

356

—

356

133

489

—

489

Acquisition/divestiture-related costs

1

—

1

139

140

—

140

Significant asset impairments and restructurings

—

—

—

135

135

—

135

Russia-Ukraine war costs

—

—

—

(2)

(2)

—

(2)

(Gains) and losses on investments

—

—

—

—

—

139

139

Income tax effect/significant tax matters

—

—

—

—

—

—

(561)

Non-GAAP amount

$ 13,428

$ 4,945

$ 18,373

$ 8,785

3 %

$ 9,588

10 %

$  370

$ 8,066

12 %

% of revenue

65.9 %

69.8 %

66.9 %

32.0 %

34.9 %

1.3 %

29.4 %

 

Six Months Ended

January 28, 2023

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and other
income
(loss), net

Net

Income

GAAP amount

$ 12,183

$   4,590

$ 16,773

$   9,941

$   6,832

$        58

$   5,443

% of revenue

59.7 %

67.3 %

61.6 %

36.5 %

25.1 %

0.2 %

20.0 %

Adjustments to GAAP amounts:

Share-based compensation expense

71

116

187

913

1,100

—

1,100

Amortization of acquisition-related intangible assets

306

—

306

142

448

—

448

Acquisition/divestiture-related costs

3

—

3

123

126

—

126

Significant asset impairments and restructurings

—

—

—

241

241

—

241

Russia-Ukraine war costs

—

—

—

5

5

—

5

(Gains) and losses on investments

—

—

—

—

—

65

65

Income tax effect/significant tax matters

—

—

—

—

—

—

(240)

Non-GAAP amount

$ 12,563

$   4,706

$ 17,269

$   8,517

$   8,752

$      123

$   7,188

% of revenue

61.6 %

69.0 %

63.4 %

31.3 %

32.1 %

0.5 %

26.4 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE

(In percentages)

Three Months Ended

Six Months Ended

January 27,
2024

January 28,
2023

January 27,
2024

January 28,
2023

GAAP effective tax rate

16.7 %

18.8 %

17.5 %

21.0 %

Total adjustments to GAAP provision for income taxes

2.3 %

0.2 %

1.5 %

(2.0) %

Non-GAAP effective tax rate

19.0 %

19.0 %

19.0 %

19.0 %

 

GAAP TO NON-GAAP GUIDANCE

Q3 FY 2024

Gross Margin
Rate

Operating Margin
Rate

Earnings per
Share (2)

GAAP

63.5% – 64.5%

20.5% – 21.5%

$0.51 – $0.56

Estimated adjustments for:

Share-based compensation expense

1.0 %

6.5 %

$0.15 – $0.16

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

1.5 %

2.0 %

$0.05 – $0.06

Significant asset impairments and restructurings (1)

—

4.5 %

$0.10 – $0.11

Non-GAAP

66% – 67%

33.5% – 34.5%

$0.84 – $0.86

 

FY 2024

Earnings per
Share (2)

GAAP

$2.61 – $2.73

Estimated adjustments for:

Share-based compensation expense

$0.59 – $0.61

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

$0.23 – $0.25

Significant asset impairments and restructurings (1)

$0.16 – $0.18

(Gains) and losses on investments

$0.03

Non-GAAP

$3.68 – $3.74

(1) On February 14, 2024, Cisco announced a restructuring plan in order to realign the organization and enable further investment in key priority areas. This restructuring plan will impact approximately 5 percent of Cisco’s global workforce. Cisco currently estimates that it will recognize pre-tax charges to its GAAP financial results of approximately $800 million consisting of severance and other one-time termination benefits and other costs. These charges are primarily cash-based. Cisco expects to take the majority of these actions in the third quarter of fiscal 2024 and recognize approximately $500 million of these charges. Cisco expects approximately $150 million of these charges to be recognized in the fourth quarter of fiscal 2024, and the remaining amount of these charges primarily through the first half of fiscal 2025.

(2) Estimated adjustments to GAAP earnings per share are shown after income tax effects.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, asset impairments, Russia–Ukraine war costs, restructurings, (gains) and losses on investments and significant tax matters or other events, which may or may not be significant unless specifically stated.

Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as the alignment of our investments to future growth opportunities, the role that our innovation plays as our customers adopt AI and secure their organizations, the progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns) and the future financial performance of Cisco (including the guidance for Q3 FY 2024 and full year FY 2024) that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on November 21, 2023 and September 7, 2023, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three and six months ended January 27, 2024 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia–Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Annualized recurring revenue represents the annualized revenue run-rate of active subscriptions, term licenses, operating leases and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis.

About Cisco

Cisco (Nasdaq: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more at newsroom.cisco.com and follow us on X at @Cisco.

Copyright © 2024 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

 

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Technology

Cryoport Reports First Quarter 2026 Financial Results

Published

53 minutes ago

on

May 4, 2026

By

First quarter revenue grew 16% year-over-year to $47.8 millionCommercial cell and gene therapy (CGT) revenue grew 26% year-over-year to $9.1 million, reflecting continued expansion in approved CGT programsLife Sciences Services revenue increased 18% year-over-year, led by 21% growth in BioStorage/BioServices Life Sciences Products revenue increased 15% year-over-year, driven by strong demand for cryogenic systems Supporting a record 766 global clinical trials and 21 commercially approved CGTs as of March 31, 2026Company raises full-year revenue guidance to $192 million – $196 million

NASHVILLE, Tenn., May 4, 2026 /PRNewswire/ — Cryoport, Inc. (NASDAQ: CYRX) (“Cryoport” or the “Company”), a leading global provider of integrated temperature-controlled supply chain solutions for the life sciences, today announced financial results for its first quarter (Q1) of 2026.

Jerrell Shelton, CEO of Cryoport, commented, “Cryoport delivered a strong start to 2026 with first-quarter revenue of $47.8 million, up 16% year-over-year, reflecting a continuation of our momentum over the past several quarters across our integrated services and products platform. Revenue in support of commercial Cell and Gene Therapies (CGT) grew 26% to $9.1 million, while clinical trial support revenue grew 18% to $12.9 million. We continue to support one of the industry’s broadest CGT pipelines, and our leadership across both clinical and commercial programs positions us well for sustainable growth.

“Our Life Sciences Services segment delivered another strong quarter, with revenue increasing 18% year-over-year, including 21% growth in BioStorage/BioServices. This performance reflects the increasing scope and complexity of the Cell & Gene Therapy programs we support and underscores the critical role we play in supporting our clients with our integrated, temperature-controlled supply chain services.

“Our Life Sciences Products segment also performed very well, generating 15% revenue growth, driven by global demand for MVE Biological Solutions’ cryogenic systems. MVE continues to innovate and further solidify its position as the global leader in high-quality cryogenic systems.

“This growth across both our reporting segments, combined with solid gross margins and continued operational discipline, drove a $2.2 million year-over-year improvement in adjusted EBITDA from continuing operations, advancing us meaningfully along our “pathway to profitability.”

“Looking ahead, we see multiple growth catalysts extending beyond 2026, including the planned launch of BioServices operations at our Global Supply Chain Center in Paris, France in the third quarter, and the planned opening of our new Global Supply Chain Center in Santa Ana, California in the fourth quarter. These strategic investments expand our global footprint in key geographies and further strengthen our ability to support the advancement and commercialization of life-saving therapies globally. Reflecting on our strong performance in the first quarter and increased visibility into the remainder of the year, we are raising our full-year revenue guidance to $192 million to $196 million,” concluded Mr. Shelton.

The following table presents Q1 2026 revenue compared with Q1 2025:

Cryoport, Inc. and Subsidiaries

Revenue 

Three Months Ended
March 31,
(unaudited)

(in thousands)

2026

2025

% Change

Life Sciences Services

$              26,898

$              22,865

18 %

BioLogistics Solutions

21,668

18,531

17 %

BioStorage/BioServices 

5,230

4,334

21 %

Life Sciences Products

$              20,900

$              18,175

15 %

Total Revenue

$              47,798

$              41,040

16 %

BioLogistics Solutions revenue increased 17% year-over-year in Q1 2026, driven by increasing customer activity, continued commercial product maturation, and clinical advancement within the CGT market. BioStorage/BioServices revenue grew 21% year-over-year, reflecting strong demand for our expanded, integrated services offering, which provides seamless, secure handling of temperature-sensitive materials across our global network.

Revenue from the support of commercial CGTs increased 26% year-over-year to $9.1 million and as of March 31, 2026, the number of commercial therapies we support increased to 21.

As of March 31, 2026, Cryoport supported a total of 766 global clinical trials, a net increase of 55 clinical trials over March 31, 2025, with 91 of these clinical trials in Phase 3. The number of trials by phase and region are as follows: 

Cryoport Supported Clinical Trials by Phase

Clinical Trials

March 31,

2024

2025

2026

Phase 1

286

304

318

Phase 2

312

328

357

Phase 3

77

79

91

Total

675

711

766

Cryoport Supported Clinical Trials by Region

Clinical Trials

March 31,

2024

2025

2026

Americas

518

544

569

EMEA

112

118

143

APAC

45

49

54

Total

675

711

766

In Q1 2026, four Biologics License Applications (BLA) / Marketing Authorization Applications (MAA) filings occurred. During the first quarter, Cryoport’s customer, Rocket Pharmaceuticals, received U.S. Food and Drug Administration (FDA) accelerated approval for their gene therapy KRESLADI™ for the treatment of pediatric patients with severe leukocyte adhesion deficiency-I (LAD-I). Severe LAD-I is an ultra-rare, life-threatening pediatric genetic immunodeficiency characterized by recurrent infections and high early-childhood mortality without treatment. For the balance of 2026, we anticipate another 10 possible BLA/MAA application filings and 8 additional new therapy approvals.

Operational milestones

Life Sciences Services

BioServices launch at our Global Supply Chain Center in Paris, France, expected in Q3, 2026.Continued progress toward the launch of our state-of-the-art Global Supply Chain Center in Santa Ana, California, expected in Q4, 2026.First cryopreserved clinical trial patient materials shipped in Q1 for two of our clients at our IntegriCell® facilities in Belgium and the U.S.Cryoport Systems named Best Logistics & Supply Chain Management Supplier – Digital Technology & Software at the 2026 Asia Pacific Biopharma Excellence Awards in Singapore.

Life Sciences Products

MVE Biological Solutions (MVE) introduced its new Fusion® 800 Series, the next evolution of MVE’s patented, award-winning Fusion technology, a self-sustaining cryogenic freezer that eliminates the need for a continuous liquid nitrogen (LN₂) supply feed, delivering exceptional reliability, safety, and sustainability in a compact footprint designed for space-constrained environments.Release of MVE HE (High Efficiency) cryogenic storage systems series integrated with the new MVE CryoVerse™ Connect Controller platform.

Financial Highlights

On June 11, 2025, the Company completed the divestiture of its CRYOPDP specialty courier business to DHL Group as part of a strategic partnership. The results of CRYOPDP, a former business within Cryoport’s Life Sciences Services segment, are presented as discontinued operations for all periods and are excluded from the non-GAAP financial measures in this release.

Revenue

Total revenue for Q1 2026 was $47.8 million, compared to $41.0 million for Q1 2025, a year-over-year increase of 16%, or $6.8 million. Life Sciences Services revenue for Q1 2026 (representing 56% of our total revenue) was $26.9 million, compared to $22.9 million for Q1 2025, up 18% year-over-year, including BioStorage/BioServices revenue of $5.2 million, up 21% year-over-year. Life Sciences Products revenue for Q1 2026 (representing 44% of our total revenue) was $20.9 million, compared to $18.2 million for Q1 2025, up 15% year-over-year.

Gross Margin

Total gross margin was 45.8% for Q1 2026, compared to 45.4% for Q1 2025. Gross margin for Life Sciences Services was 48.9% for Q1 2026, compared to 47.9% for Q1 2025. Gross margin for Life Sciences Products was 41.9% for Q1 2026, compared to 42.3% for Q1 2025.

Operating Costs and Expenses

Operating costs and expenses were $31.5 million for Q1 2026, compared to $25.8 million for Q1 2025.

Loss from Continuing Operations

Loss from continuing operations was $9.4 million for Q1 2026, compared to a loss of $6.7 million for Q1 2025.

Net Loss – including Discontinued Operations

Net loss was $10.5 million for Q1 2026, compared to net loss of $12.0 million for Q1 2025.Net loss attributable to common stockholders for Q1 2026 was $12.5 million, or $0.25 per share, compared to net loss attributable to common stockholders of $14.0 million, or $0.28 per share for Q1 2025.

Adjusted EBITDA from Continuing Operations

Adjusted EBITDA from continuing operations was a negative $0.6 million for Q1 2026, compared to a negative $2.8 million for Q1 2025.

Cash, Cash equivalents, and Short-Term Investments

Cryoport held $403.6 million in cash, cash equivalents, and short-term investments as of March 31, 2026.

Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.

Additional Information

Further information on Cryoport’s financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport’s financial performance are provided in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, which is expected to be filed with the SEC on May 4, 2026. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport’s website at www.cryoportinc.com.

Earnings Conference Call Information

IMPORTANT INFORMATION: In addition to the earnings release, a document titled “Cryoport First Quarter 2026 in Review”, providing a review of Cryoport’s business update, will be issued at 4:05 p.m. ET on Monday, May 4, 2026. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.

Cryoport management will host a conference call at 5:00 p.m. ET on May 4, 2026. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company’s reported results. A slide deck will accompany the call.

Conference Call Information

Date:

Monday, May 4, 2026

Time:

5:00 p.m. ET

Dial-in numbers:

1-800-717-1738 (U.S.), 1-646-307-1865 (International)

Confirmation code:

Request the “Cryoport Call” or Conference ID: 1191652

Live webcast:

‘Investor Relations’ section at www.cryoportinc.com or click here.


Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.

The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company’s website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until May 11, 2026. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 1191652#.

About Cryoport, Inc.

Cryoport, Inc. (Nasdaq: CYRX) is a leading global provider of integrated temperature-controlled supply chain solutions for the life sciences, with an emphasis on regenerative medicine. We support biopharmaceutical companies, contract manufacturers (CDMOs), contract research organizations (CROs), developers, and researchers with a comprehensive suite of services and products designed to minimize risk and maximize reliability across the temperature-controlled supply chain for the life sciences. Our integrated supply chain platform includes the Cryoportal® Logistics Management Platform, advanced temperature-controlled packaging, informatics, specialized biologistics, biostorage, bioservices, cryopreservation services, and cryogenic systems, which in varying combinations deliver end-to-end solutions that meet the rigorous demands of the life sciences. With innovation, regulatory compliance, and agility at our core, we are “Enabling the Future of Medicine™.” 

Headquartered in Nashville, Tennessee, our company maintains a strong global presence with operations across the Americas, EMEA, and APAC.

For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at https://x.com/cryoport for live updates.

Forward-Looking Statements

Statements in this press release which are not purely historical, including statements regarding the Company’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to the Company’s industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as the Company’s outlook and guidance for full-year 2026 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Company operates, the Company’s plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, the Company’s expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of the Company’s clients. Forward-looking statements also include those related to the Company’s expectations about future benefits relating to the CRYOPDP divestiture and strategic partnership with DHL (collectively, the “DHL Transaction”), the Company’s plans regarding its Global Supply Chain Centers, including expected timing of future openings, the Company’s plans and expectations relating to its strategic pivot to expand its global partnerships, and the Company’s expectation of revenue contribution from IntegriCell’s cryopreservation service centers throughout 2026. It is important to note that the Company’s actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effects of changing economic and geopolitical conditions, supply chain constraints, inflationary pressures, tariffs and other trade restrictions, foreign currency fluctuations, trends in the products markets, any U.S federal government shutdown, variations in the Company’s cash flow, market acceptance risks, and technical development risks. Additional risks and uncertainties relating to the DHL Transaction include, but are not limited to, the risk that any disruption resulting from the DHL Transaction may adversely affect our businesses and business relationships, including with employees and suppliers. The Company’s business could be affected by other factors discussed in the Company’s SEC reports, including in the “Risk Factors” section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and the Company cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release.

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

Three Months Ended
March 31,
(unaudited)

(in thousands, except share and per share data)

2026

2025

Revenue

Life Sciences Services revenue

$                   26,898

$                   22,865

Life Sciences Products revenue

20,900

18,175

Total revenue

47,798

41,040

Cost of revenue:

Cost of services revenue

13,747

11,920

Cost of products revenue

12,138

10,479

Total cost of revenue

25,885

22,399

Gross margin

21,913

18,641

Operating costs and expenses:

Selling, general and administrative

27,620

21,901

Engineering and development

3,907

3,934

Total operating costs and expenses:

31,527

25,835

Loss from operations

(9,614)

(7,194)

Other income (expense):

Investment income

3,090

1,573

Interest expense

(432)

(583)

Other expense, net

(2,368)

(300)

Loss before provision for income taxes

(9,324)

(6,504)

Provision for income taxes

(108)

(234)

Loss from continuing operations

$                   (9,432)

$                   (6,738)

Loss from discontinued operations, net

(1,112)

(5,243)

Net loss

$                 (10,544)

$                 (11,981)

Paid-in-kind dividend on Series C convertible preferred stock

(2,000)

(2,000)

Net loss attributable to common stockholders

$                 (12,544)

$                 (13,981)

Net loss per share attributable to common stockholders – basic and diluted

$                     (0.25)

$                     (0.28)

Weighted average common shares issued and outstanding – basic and diluted

49,897,817

49,947,012

 

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

March 31,

December 31,

2026

2025

(in thousands)

(unaudited)

Current assets

Cash and cash equivalents

$                     272,912

$                     250,494

Short-term investments

130,722

160,714

Accounts receivable, net

39,004

33,359

Inventories

21,750

23,188

Prepaid expenses and other current assets

6,147

8,419

Total current assets

470,535

476,174

Property and equipment, net

89,805

85,448

Operating lease right-of-use assets

39,299

39,720

Intangible assets, net

138,721

138,082

Goodwill

22,137

22,400

Deposits

2,046

2,092

Deferred tax assets

1,066

1,073

 Total assets 

$                     763,609

$                     764,989

Current liabilities

Accounts payable and other accrued expenses                                         

$                       15,937

$                       15,283

Accrued compensation and related expenses

17,007

12,980

Deferred revenue

2,314

943

Current portion of operating lease liabilities

3,641

4,133

Current portion of finance lease liabilities

419

422

Current portion of convertible senior notes, net

185,390

185,094

Current portion of notes payable

159

163

Total current liabilities

224,867

219,018

Notes payable, net

1,027

1,087

Operating lease liabilities, net

39,173

39,078

Finance lease liabilities, net

680

741

Deferred tax liabilities

1,580

1,354

Other long-term liabilities

663

444

Contingent consideration

630

629

Total liabilities

268,620

262,351

Total stockholders’ equity

494,989

502,638

Total liabilities and stockholders’ equity

$                     763,609

$                     764,989

Note Regarding Use of Non-GAAP Financial Measures

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measure of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 is included in this release: adjusted EBITDA from continuing operations. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including adjusted EBITDA from continuing operations, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

Adjusted EBITDA from continuing operations is defined as loss from continuing operations adjusted for net interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, cost reduction initiatives, investment income, unrealized loss on investments, foreign currency loss, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events, as applicable.

Management believes that adjusted EBITDA from continuing operations provides a useful measure of Cryoport’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport’s ongoing operating performance. Further, management and the Company’s board of directors utilize adjusted EBITDA from continuing operations to gain a better understanding of Cryoport’s comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA from continuing operations is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA from continuing operations, when read in conjunction with Cryoport’s GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport’s ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport’s underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport’s underlying business.

Cryoport, Inc. and Subsidiaries

Reconciliation of GAAP loss from continuing operations to adjusted EBITDA

(unaudited)

Three Months Ended
March 31,

2026

2025

(in thousands)

GAAP loss from continuing operations

$          (9,432)

$            (6,738)

Non-GAAP adjustments to loss:

Depreciation and amortization expense

6,402

6,134

Acquisition and integration costs

—

1

Cost reduction initiatives

—

216

Investment income

(3,090)

(1,573)

Unrealized loss on investments

2,105

193

Foreign currency loss

454

245

Interest expense, net

432

583

Stock-based compensation expense

2,395

3,064

Change in fair value of contingent consideration

15

(5,178)

Income taxes

108

234

Adjusted EBITDA from continuing operations

$             (611)

$            (2,819)

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cryoport-reports-first-quarter-2026-financial-results-302761639.html

SOURCE Cryoport, Inc.

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Technology

Aviat Networks Announces Fiscal 2026 Third Quarter and Nine Month Financial Results

Published

53 minutes ago

on

May 4, 2026

By

Total Q3 QTD Revenues of $100.0 million

Q3 QTD Operating Income of $0.9 million; Q3 QTD Non-GAAP Operating Income of $3.0 million

Q3 QTD Net Earnings of $(2.1) million; Q3 QTD Adjusted EBITDA of $4.4 million

Q3 QTD Diluted Earnings per Share of $(0.16); Q3 QTD Non-GAAP Diluted Earnings per Share of $0.06

AUSTIN, Texas, May 4, 2026 /PRNewswire/ — Aviat Networks, Inc. (“Aviat Networks,” “Aviat,” or the “Company”), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2026 third quarter ended March 27, 2026.

Third Quarter Highlights

Recorded fiscal 2026 year-to-date revenue growth for the first nine months in North America of $2.1 million or 1.4% compared to the same nine-month period of fiscal 2025Increased year-to-date GAAP operating income to $13.4 million compared to $1.7 million in the comparable year-to-date period last yearReduced quarterly GAAP operating expenses by $1.7 million and Non-GAAP operating expenses by $0.8 million versus the year-ago periodMaintained a trailing-twelve month book-to-bill ratio greater than 1.0

Third Quarter QTD Financial Highlights

Total Revenues: $100.0 millionGAAP Results: Gross Margin 29.3%; Operating Expenses $28.3 million; Operating Income $0.9 million; Net Loss $2.1 million; Net Loss per diluted share (“Net Loss per share”) $0.16Non-GAAP Results: Adjusted EBITDA $4.4 million; Gross Margin 29.4%; Operating Expenses $26.4 million; Operating Income $3.0 million; Net Income $0.7 million; Net Income per share $0.06Cash and cash equivalents: $78.1 millionNet debt: $26.1 million

Fiscal 2026 Third Quarter and Nine Months Ended March 27, 2026

Revenues

The Company reported total revenues of $100.0 million for its fiscal 2026 third quarter, compared to $112.6 million in the fiscal 2025 third quarter, a decrease of $12.6 million or 11.2%. North America revenue of $46.2 million decreased by $3.2 million or 6.6%, compared to $49.4 million in the prior year due to timing of certain private and mobile network projects. International revenue of $53.8 million decreased by $9.4 million or 14.9%, compared to $63.2 million in the prior year, due to timing of capital expenditure plans of mobile network operators and revenue delays related to the conflict in the Middle East.

For the nine months ended March 27, 2026, revenue decreased by 0.1% to $318.8 million, compared to $319.3 million in the same period of fiscal 2025. North America revenue of $151.7 million increased by $2.1 million or 1.4%, compared to $149.6 million in the same period of fiscal 2025. International revenue of $167.1 million decreased by $2.6 million or 1.5% as compared to $169.7 million in the same period of fiscal 2025.

Gross Margins

In the fiscal 2026 third quarter, the Company reported GAAP gross margin of 29.3% and non-GAAP gross margin of 29.4%. This compares to GAAP gross margin of 34.9% and non-GAAP gross margin of 35.8% in the fiscal 2025 third quarter, a decrease of 560 and 640 basis points, respectively. The decrease was driven by regional and product mix in the quarter.

For the nine months ended March 27, 2026, the Company reported GAAP gross margin of 31.7% and non-GAAP gross margin of 32.1%. This compares to GAAP gross margin of 31.3% and non-GAAP gross margin of 32.1% in the same period of fiscal 2025, an increase of 40 and 0 basis points, respectively.

Operating Expenses

The Company reported GAAP total operating expenses of $28.3 million for the fiscal 2026 third quarter, compared to $30.0 million in the fiscal 2025 third quarter. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition and other expenses for the fiscal 2026 third quarter were $26.4 million, compared to $27.2 million in the prior year, a decrease of $0.8 million or 3.1%.

For the nine months ended March 27, 2026, the Company reported total operating expenses of $87.6 million, compared to $98.3 million in the same period of fiscal 2025, a decrease of $10.6 million or 10.8%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses and other expenses for the nine months ended March 27, 2026 were $81.9 million, compared to $86.4 million in the same period of fiscal 2025, a decrease of $4.5 million or 5.2%.

Operating Income

The Company reported GAAP operating income of $0.9 million for the fiscal 2026 third quarter, compared to GAAP operating income of $9.3 million in the fiscal 2025 third quarter, a decrease of $8.4 million. Operating income decreased primarily due to lower gross margin dollars. On a non-GAAP basis, the Company reported operating income of $3.0 million for the fiscal 2026 third quarter, compared to non-GAAP operating income of $13.0 million in the prior year, a decrease of $10.1 million.

For the nine months ended March 27, 2026, the Company reported a GAAP operating income of $13.4 million, compared to a GAAP operating income of $1.7 million in the same period of fiscal 2025, an increase of $11.7 million. On a non-GAAP basis, the Company reported operating income of $20.5 million, compared to an operating income of $16.1 million in the same period of fiscal 2025, an increase of $4.4 million.

Net Income / Net Income Per Share

The Company reported GAAP net loss of $2.1 million in the fiscal 2026 third quarter or GAAP net loss per share of $0.16. This compared to GAAP net income of $3.5 million or GAAP net income per share of $0.27 in the fiscal 2025 third quarter. On a non-GAAP basis, the Company reported non-GAAP net income of $0.7 million or non-GAAP net income per share of $0.06, compared to non-GAAP net income of $11.3 million or $0.88 per share in the prior year.

The Company reported GAAP net income of $3.8 million for the nine months ended March 27, 2026, or GAAP net income per diluted share of $0.29. This compared to GAAP net loss of $3.9 million or $0.30 per share in the comparable fiscal 2025 period. On a non-GAAP basis, the Company reported net income of $13.3 million or net income per share of $1.02 for the nine months ended March 27, 2026, as compared to non-GAAP net income of $10.6 million or $0.83 per share in the comparable fiscal 2025 period.

Adjusted EBITDA

Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) for the fiscal 2026 third quarter was $4.4 million, compared to $14.9 million in the fiscal 2025 third quarter.

For the nine months ended March 27, 2026, the Company reported Adjusted EBITDA of $24.8 million, as compared to $22.0 million in the comparable fiscal 2025 period, an increase of $2.8 million.

Balance Sheet Highlights

The Company reported $78.1 million in cash and cash equivalents as of March 27, 2026, compared to $59.7 million as of June 27, 2025, an increase of $18.4 million. As of March 27, 2026, total debt was $104.3 million, an increase of $16.7 million from June 27, 2025.

Fiscal 2026 Full Year Outlook

The Company is updating its fiscal 2026 full year guidance to:

Full year Revenue between $428 and $440 millionFull year Adjusted EBITDA between $35.0 and $40.0 million

Conference Call Details

Aviat Networks will host a conference call at 5:00 p.m. Eastern Time (ET) today, May 4, 2026, to discuss its financial and operational results for the fiscal 2026 third quarter ended March 27, 2026. Participating on the call will be Peter Smith, President and Chief Executive Officer; Andy Schmidt, Senior Vice President and Chief Financial Officer; Jonanna Mikulenka, Vice President and Chief Accounting Officer; and Andrew Fredrickson, Vice President, Corporate Finance. Following management’s remarks, there will be a question and answer period.

Interested parties may access the conference call live via the webcast through Aviat Network’s Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company’s investor relations website.

About Aviat Networks

Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn.

Forward-Looking Statements

The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat’s beliefs and expectations regarding outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2026, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, its ability to maintain effective internal control over financial reporting and management systems and remediate material weaknesses, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including “anticipate,” “believe,” “plan,” “estimate,” “expect,” “goal,” “will,” “see,” “continue,” “delivering,” “view,” and “intend,” or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such 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. Therefore, you should not rely on any of these forward-looking statements.

Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers’ inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions.

For more information regarding the risks and uncertainties for Aviat’s business, see “Risk Factors” in Aviat’s Form 10-K for the fiscal year ended June 27, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on September 10, 2025, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Investor Relations:
Andrew Fredrickson
Email: investorinfo@aviatnet.com 

 

Table 1

AVIAT NETWORKS, INC.

Fiscal Year 2026 Third Quarter Summary

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended

Nine Months Ended

(In thousands, except per share amounts)

March 27,
2026

March 28,
2025

March 27,
2026

March 28,
2025

Revenues:

Product sales

$          68,405

$          76,824

$        224,699

$        220,252

Services

31,598

35,816

94,096

99,014

Total revenues

100,003

112,640

318,795

319,266

Cost of revenues:

Product sales

51,009

51,370

158,155

158,540

Services

19,711

21,974

59,593

60,756

Total cost of revenues

70,720

73,344

217,748

219,296

Gross profit

29,283

39,296

101,047

99,970

Operating expenses:

Research and development

7,656

7,704

21,163

28,334

Selling and administrative

20,365

22,121

66,125

68,348

Restructuring charges

323

177

344

1,592

Total operating expenses

28,344

30,002

87,632

98,274

Operating income

939

9,294

13,415

1,696

Interest expense, net

1,848

1,557

5,468

4,252

Other expense (income), net

1,400

3,068

(371)

4,047

(Loss) income before income taxes

(2,309)

4,669

8,318

(6,603)

(Benefit from) provision for income taxes

(244)

1,141

4,503

(2,747)

Net (loss) income

$          (2,065)

$           3,528

$           3,815

$          (3,856)

Net (loss) income per share of common stock outstanding:

Basic

$           (0.16)

$            0.28

$            0.30

$           (0.30)

Diluted

$           (0.16)

$            0.27

$            0.29

$           (0.30)

Weighted-average shares outstanding:

Basic

12,918

12,689

12,844

12,672

Diluted

12,918

12,838

13,030

12,672

 

Table 2

AVIAT NETWORKS, INC.

Fiscal Year 2026 Third Quarter Summary

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

March 27,
2026

June 27,
2025

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

$             78,129

$             59,690

Accounts receivable, net

187,624

180,321

Unbilled receivables

85,260

105,870

Inventories

72,609

83,979

Other current assets

26,740

33,715

Total current assets

450,362

463,575

Property, plant and equipment, net

18,990

17,453

Goodwill

19,473

19,655

Intangible assets, net

24,395

26,897

Deferred income taxes

86,977

88,149

Right-of-use assets

2,214

3,113

Other assets

14,134

14,454

Total long-term assets

166,183

169,721

Total assets

$           616,545

$           633,296

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable

$           112,063

$           148,093

Accrued expenses

40,082

38,897

Short-term lease liabilities

547

1,090

Advance payments and unearned revenue

67,845

73,735

Other current liabilities

160

1,757

Current portion of long-term debt

5,595

18,624

Total current liabilities

226,292

282,196

Long-term debt

98,668

68,966

Unearned revenue

9,724

8,063

Long-term operating lease liabilities

1,858

2,241

Other long-term liabilities

328

430

Reserve for uncertain tax positions

3,724

3,242

Deferred income taxes

4,175

4,975

Total liabilities

344,769

370,113

Commitments and contingencies

Stockholder’s equity:

Preferred stock

—

—

Common stock

129

127

Treasury stock

(7,576)

(7,076)

Additional paid-in-capital

870,340

866,119

Accumulated deficit

(573,357)

(577,172)

Accumulated other comprehensive loss

(17,760)

(18,815)

Total stockholders’ equity

271,776

263,183

Total liabilities and stockholders’ equity

$           616,545

$           633,296

 

AVIAT NETWORKS, INC.
Fiscal Year 2026 Third Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE

To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development expenses, selling and administrative expenses, operating expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and adjusted income before interest, tax, depreciation and amortization (Adjusted EBITDA), in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow.

1We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort.

 

Table 3
AVIAT NETWORKS, INC.
Fiscal Year 2026 Third Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Condensed Consolidated Statements of Operations
(Unaudited)

Three Months Ended

Nine Months Ended

March 27,
2026

% of

Revenue

March 28,
2025

% of

Revenue

March 27,
2026

% of

Revenue

March 28,
2025

% of

Revenue

(In thousands, except percentages and per share amounts)

GAAP gross margin

$        29,283

29.3 %

$       39,296

34.9 %

$   101,047

31.7 %

$    99,970

31.3 %

Share-based compensation

37

(1)

105

214

Merger and acquisition and other expenses

69

995

1,247

2,295

Non-GAAP gross margin

29,389

29.4 %

40,290

35.8 %

102,399

32.1 %

102,479

32.1 %

GAAP research and development expenses

$          7,656

7.7 %

$        7,704

6.8 %

$    21,163

6.6 %

$    28,334

8.9 %

Share-based compensation

(35)

(149)

(98)

(456)

Non-GAAP research and development expenses

7,621

7.6 %

7,555

6.7 %

21,065

6.6 %

27,878

8.7 %

GAAP selling and administrative expenses

$        20,365

20.4 %

$       22,121

19.6 %

$    66,125

20.7 %

$    68,348

21.4 %

Share-based compensation

(1,508)

(1,840)

(4,280)

(4,956)

Merger and acquisition and other expenses

(70)

(595)

(1,057)

(4,890)

Non-GAAP selling and administrative expenses

18,787

18.8 %

19,686

17.5 %

60,788

19.1 %

58,502

18.3 %

GAAP operating expense

$        28,344

28.3 %

$       30,002

26.6 %

$    87,632

27.5 %

$    98,274

30.8 %

Share-based compensation

(1,543)

(1,989)

(4,378)

(5,412)

Merger and acquisition and other expenses

(70)

(595)

(1,057)

(4,890)

Restructuring charges

(323)

(177)

(344)

(1,592)

Non-GAAP operating expense

26,408

26.4 %

27,241

24.2 %

81,853

25.7 %

86,380

27.1 %

GAAP operating income

$            939

0.9 %

$        9,294

8.3 %

$    13,415

4.2 %

$     1,696

0.5 %

Share-based compensation

1,580

1,988

4,483

5,626

Merger and acquisition and other expenses

139

1,590

2,304

7,185

Restructuring charges

323

177

344

1,592

Non-GAAP operating income

2,981

3.0 %

13,049

11.6 %

20,546

6.4 %

16,099

5.0 %

GAAP income tax (benefit) provision

$           (244)

(0.2) %

$        1,141

1.0 %

$     4,503

1.4 %

$    (2,747)

(0.9) %

Adjustment to reflect pro forma tax rate

644

(941)

(2,703)

3,947

Non-GAAP income tax provision

400

0.4 %

200

0.2 %

1,800

0.6 %

1,200

0.4 %

GAAP net (loss) income

$         (2,065)

(2.1) %

$        3,528

3.1 %

$     3,815

1.2 %

$    (3,856)

(1.2) %

Share-based compensation

1,580

1,988

4,483

5,626

Merger and acquisition and other expenses

139

1,590

2,304

7,185

Restructuring charges

323

177

344

1,592

Other expense (income), net

1,400

3,068

(371)

4,047

Adjustment to reflect pro forma tax rate

(644)

941

2,703

(3,947)

Non-GAAP net income

$            733

0.7 %

$       11,292

10.0 %

$    13,278

4.2 %

$    10,647

3.3 %

Diluted net (loss) income per share:

GAAP

$          (0.16)

$          0.27

$       0.29

$      (0.30)

Non-GAAP

$           0.06

$          0.88

$       1.02

$       0.83

Shares used in computing diluted net (loss)
income per share

GAAP

12,918

12,838

13,030

12,672

Non-GAAP

13,074

12,838

13,030

12,818

Adjusted EBITDA:

GAAP net (loss) income

$         (2,065)

(2.1) %

$        3,528

3.1 %

$     3,815

1.2 %

$    (3,856)

(1.2) %

Depreciation and amortization of property,
plant and equipment and intangible assets

1,426

1,830

4,247

5,935

Interest expense, net

1,848

1,557

5,468

4,252

Other expense (income), net

1,400

3,068

(371)

4,047

Share-based compensation

1,580

1,988

4,483

5,626

Merger and acquisition and other expenses

139

1,590

2,304

7,185

Restructuring charges

323

177

344

1,592

(Benefit from) provision for income taxes

(244)

1,141

4,503

(2,747)

Adjusted EBITDA

$          4,407

4.4 %

$       14,879

13.2 %

$    24,793

7.8 %

$    22,034

6.9 %

(1)

The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures.

 

Table 4
AVIAT NETWORKS, INC. 
Fiscal Year 2026 Third Quarter Summary 
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)

Three Months Ended

Nine Months Ended

March 27,
2026

March 28,
2025

March 27,
2026

March 28,
2025

(In thousands)

North America

$             46,165

$             49,402

$           151,713

$     149,589

International:

Africa and the Middle East

16,446

15,086

43,868

38,210

Europe

10,333

9,429

29,318

23,376

Latin America and Asia Pacific

27,059

38,723

93,896

108,091

Total international

53,838

63,238

167,082

169,677

Total revenue

$           100,003

$           112,640

$           318,795

$     319,266

 

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SOURCE Aviat Networks, Inc.

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Technology

V2X Reports First Quarter 2026 Results

Published

53 minutes ago

on

May 4, 2026

By

First Quarter Financial Highlights

Revenue of $1.25 billion, up 23% year-over-yearNet income of $18.9 million; Adjusted net income1 of $48.1 million, up 53% year-over-yearAdjusted EBITDA1 of $85.6 million; Adjusted EBITDA1 margin of 6.8%Diluted EPS of $0.60; Adjusted diluted EPS1 of $1.53, up 55% year-over-yearRecord backlog1 of $13.8 billion, driven by 3.2x book-to-bill1 in the quarter

Increasing 2026 Guidance

Increasing full-year 2026 guidance with 9% revenue and adjusted EBITDA1 growth at the midpoint

RESTON, Va., May 4, 2026 /PRNewswire/ — V2X, Inc. (NYSE:VVX) today announced first quarter 2026 financial results, and increased guidance for full-year 2026.

“V2X delivered a strong start to 2026, with double-digit growth on both the top and bottom lines, underscoring our team’s disciplined execution and our organization’s alignment to national security priorities,” said Jeremy C. Wensinger, President and Chief Executive Officer. “We secured approximately 50 awards in the quarter totaling approximately $4.1 billion, driving total backlog1 to a record $13.8 billion and reinforcing our position as a leading provider of mission capabilities. We are increasing our full-year outlook given the momentum underway. Supported by our strong balance sheet, we will continue to prioritize investments that accelerate innovation across the enterprise and enhance global operations, to deliver differentiated outcomes for customers and greater value for shareholders.”

First Quarter 2026 Results

In the first quarter, V2X reported revenue of $1.25 billion, representing year-over-year growth of 23%. The Company reported solid topline growth and strong operating performance, yielding double-digit growth in adjusted net income1 and adjusted EPS1. Net income for the quarter was $18.9 million. Adjusted net income1 was $48.1 million, an increase of 53%, year-over-year. First quarter GAAP diluted EPS was $0.60. Adjusted diluted EPS1 for the quarter increased 55% year-over-year to $1.53.

V2X delivered adjusted EBITDA1 of $85.6 million, with a margin1 of 6.8%, representing an increase of 28%, from the prior year.

First quarter net cash used by operating activities was $129.9 million. Adjusted net cash used by operating activities1 was $22.1 million.

At the end of the first quarter, net debt for V2X was $895.4 million, representing an improvement of $77 million year-over-year and a 2.5x net leverage ratio1. The Company expects to achieve a net leverage ratio1 less than 2.0x by the end of 2026.

As of April 3, 2026, total backlog1 was $13.8 billion and funded backlog1 was $2.3 billion. Book-to-bill1 in the first quarter was approximately 3.2x. Trailing twelve-month book-to-bill1 was approximately 1.5x.

Increasing 2026 Guidance

The Company is increasing its 2026 guidance ranges as follows:

$ millions, except for per share amounts

Prior 2026 Guidance

Updated 2026 Guidance

Revenue

$4,675

$4,825

$4,825

$4,975

Adjusted EBITDA1

$335

$350

$345

$360

Adjusted Diluted Earnings Per Share1

$5.50

$5.90

$5.75

$6.15

Adjusted Net Cash Provided by Operating Activities1

$150

$170

$160

$180

The Company is not providing a quantitative reconciliation with respect to the foregoing forward-looking non-GAAP measures in reliance on the “unreasonable efforts” exception set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. For example, unusual, one-time, non-ordinary, or non-recurring costs, which relate to M&A, integration and related activities cannot be reasonably estimated. Forward-looking statements are based upon current expectations and are subject to factors that could cause actual results to differ materially from those suggested here, including those factors set forth in the Safe Harbor Statement below. 

First Quarter Conference Call
Management will conduct a conference call with analysts and investors at 4:30 p.m. ET on Monday, May 4, 2026. U.S.-based participants may dial in to the conference call at 877-300-8521, while international participants may dial 412-317-6026. A live webcast of the conference call as well as an accompanying slide presentation will be available here: https://app.webinar.net/Q291YZzYJpN

A replay of the conference call will be posted on the V2X website shortly after completion of the call and will be available for one year. A telephonic replay will also be available through May 18, 2026, at 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 10208314. 

Presentation slides that will be used in conjunction with the conference call will also be made available online in advance on the “investors” section of the company’s website at https://gov2x.com. V2X recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under the U.S. Securities and Exchange Commission (“SEC”) Regulation FD.

__________________________________
1 See “Key Performance Indicators and Non-GAAP Financial Measures” for descriptions and reconciliations.

About V2X
V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,200 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Investor Contact

Media Contact

Mike Smith, CFA

Angelica Spanos Deoudes

IR@goV2X.com

Communications@goV2X.com

719-637-5773

571-338-5195

Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the “Act”): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act.

Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “could,” “potential,” “continue” or similar terminology. These statements are based on the beliefs and assumptions of the management of the Company based on information currently available to management. Forward-looking statements in this press release, include, but are not limited to our future performance and capabilities; all of the statements and items listed under “Increasing 2026 Guidance” above and other assumptions contained therein for purposes of such guidance; our belief that prior performance provides substantial visibility for future performance; market trends; product development; capital deployment; future net leverage ratio; and our belief that our innovation strategy, visibility, and targeted growth opportunities provide substantial opportunities for value creation.

These forward-looking statements are not guarantees of future performance, conditions, or results, and involve a number of known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside our management’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.  In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections. For a discussion of some of the risks and uncertainties that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC.

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

Three Months Ended

April 3,

March 28,

(In thousands, except per share data)

2026

2025

Revenue

$    1,254,128

$    1,015,923

Cost of revenue

1,148,310

937,820

Selling, general, and administrative expenses

61,728

43,805

Operating income

44,090

34,298

Loss on extinguishment of debt

—

(2,214)

Interest expense, net

(18,125)

(19,719)

Other expense, net

(2,446)

(2,295)

Income from operations before income taxes

23,519

10,070

Income tax expense

4,594

1,963

Net income

$        18,925

$          8,107

Earnings per share

Basic

$            0.61

$            0.26

Diluted

$            0.60

$            0.25

Weighted average common shares outstanding – basic

31,214

31,590

Weighted average common shares outstanding – diluted

31,512

32,021

 

V2X, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

April 3,

December 31,

(In thousands, except per share data)

2026

2025

Assets

Current assets

 Cash, cash equivalents and restricted cash

$      208,666

$      368,994

 Receivables

828,759

738,922

 Prepaid expenses and other current assets

131,981

127,102

Total current assets

1,169,406

1,235,018

 Property, plant, and equipment, net

50,640

52,383

 Goodwill

1,676,954

1,677,154

 Intangible assets, net

217,060

239,760

 Other non-current assets

75,409

76,525

Total non-current assets

2,020,063

2,045,822

Total Assets

$    3,189,469

$    3,280,840

Liabilities and Shareholders’ Equity

Current liabilities

 Accounts payable

$      467,420

$      557,042

 Compensation and other employee benefits

170,388

176,530

 Short-term debt

14,935

14,935

 Other accrued liabilities

280,561

267,039

Total current liabilities

933,304

1,015,546

 Long-term debt, net

1,060,928

1,083,234

 Deferred tax liabilities

30,232

28,357

 Other non-current liabilities

61,462

69,067

Total non-current liabilities

1,152,622

1,180,658

Total liabilities

2,085,926

2,196,204

Commitments and contingencies (Note 7)

Shareholders’ Equity

Preferred stock; $0.01 par value; 10,000,000 shares authorized; No shares issued and outstanding

—

—

Common stock; $0.01 par value; 100,000,000 shares authorized; 31,873,847 shares issued and
31,310,209 shares outstanding as of April 3, 2026; 31,735,083 shares issued and 31,171,445 shares
outstanding as of December 31, 2025

318

317

Treasury stock, at cost – (563,638) shares as of both April 3, 2026 and December 31, 2025

(30,274)

(30,274)

Additional paid in capital

777,994

779,084

Retained earnings

362,342

343,417

Accumulated other comprehensive loss

(6,837)

(7,908)

Total shareholders’ equity

1,103,543

1,084,636

Total Liabilities and Shareholders’ Equity

$    3,189,469

$    3,280,840

 

V2X, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

Three Months Ended

April 3,

March 28,

(In thousands)

2026

2025

Operating activities

Net income

$        18,925

$          8,107

Adjustments to reconcile net income to net cash used in operating activities:

 Depreciation expense

3,963

4,250

 Amortization of intangible assets

22,900

22,562

 Amortization of cloud computing arrangements

1,246

1,226

 Loss on disposal of property, plant, and equipment

3

253

 Stock-based compensation

3,609

2,452

 Deferred taxes

1,557

(3,074)

 Amortization of debt issuance costs

1,669

1,488

 Loss on extinguishment of debt

—

2,214

Changes in assets and liabilities:

 Receivables

(90,701)

6,502

 Other assets

(5,348)

(6,411)

 Accounts payable

(89,372)

(107,694)

 Compensation and other employee benefits

(6,050)

(42,610)

 Other liabilities

7,689

15,271

 Net cash used in operating activities

(129,910)

(95,464)

Investing activities

Purchases of capital assets

(2,291)

(2,699)

Proceeds from the disposition of assets

—

90

 Net cash used in investing activities

(2,291)

(2,609)

Financing activities

Repayments of long-term debt

(23,734)

—

Proceeds from revolver

—

141,000

Repayments of revolver

—

(141,000)

Proceeds from stock awards and stock options

60

77

Payment of debt issuance costs

—

(1,223)

Payments of employee withholding taxes on stock-based compensation

(4,758)

(2,653)

 Net cash used in financing activities

(28,432)

(3,799)

Exchange rate effect on cash

305

2,613

Net change in cash, cash equivalents and restricted cash

(160,328)

(99,259)

Cash, cash equivalents and restricted cash – beginning of period

368,994

268,321

Cash, cash equivalents and restricted cash – end of period

$       208,666

$       169,062

Supplemental disclosure of cash flow information:

Interest paid

$        17,426

$        12,945

Income taxes paid

$          2,707

$            320

Purchase of capital assets on account

$          1,510

$              48

Key Performance Indicators and Non-GAAP Measures

The primary financial performance measures we use to monitor results of operations are revenue and operating income. Management believes that these financial performance measures are the primary drivers for our earnings and net cash from operating activities. Management evaluates its contracts and business performance by focusing on revenue and operating income. Operating income represents revenue less both cost of revenue and selling, general and administrative (SG&A) expenses. Cost of revenue consists of labor, subcontracting costs, materials, and an allocation of indirect costs. SG&A expenses consist of indirect labor costs (including wages and salaries for executives and administrative personnel), bid and proposal expenses and other general and administrative expenses not allocated to cost of revenue. Backlog is the estimated amount of future revenues to be recognized under negotiated contracts. Funded backlog is contractually authorized and appropriated by the customer. Bookings includes approved values formally booked into V2X’s backlog for new business contract awards including unexercised options, contract modifications, recompetes, contract extensions and add-on work to existing contracts. Book-to-bill is derived by dividing bookings by revenue.

We manage the nature and amount of costs at the program level, which forms the basis for estimating our total costs and profitability. This is consistent with our approach for managing our business, which begins with management’s assessing the bidding opportunity for each contract and then managing contract profitability throughout the performance period.

In addition to the key performance measures discussed above, we consider adjusted net income, adjusted diluted earnings per share, adjusted operating income, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio and adjusted operating cash flow to be useful to management and investors in evaluating our operating performance, and to provide a tool for evaluating our ongoing operations. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives. We provide this information to our investors in our earnings releases, presentations, and other disclosures.

Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio, cash interest expense, net, and adjusted net cash provided by (used in) operating activities, however, are not measures of financial performance under GAAP and should not be considered a substitute for financial measures determined in accordance with GAAP.  Definitions and reconciliations of these items are provided below.

Adjusted EBITDA is defined as operating income, adjusted to exclude depreciation and amortization of intangible assets, and items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration, and related costs.Adjusted EBITDA margin is defined as adjusted EBITDA divided by revenue.Adjusted net income is defined as net income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration and related costs, amortization of acquired intangible assets, amortization of debt issuance costs, and loss on extinguishment of debt.Adjusted diluted earnings per share is defined as adjusted net income divided by the weighted average diluted common shares outstanding.Cash interest expense, net is defined as interest expense, net adjusted to exclude amortization of debt issuance costs.Adjusted net cash provided by (used in) operating activities or adjusted operating cash flow is defined as net cash provided by (or used in) operating activities adjusted to exclude infrequent non-operating items, such as M&A payments and related costs.Net leverage ratio is defined as net debt (or total debt less unrestricted cash) divided by trailing twelve-month (TTM) bank EBITDA.

Non-GAAP Tables

($K, except per share data)

Three Months Ended

April 3, 2026

March 28, 2025

Revenue

$1,254,128

$1,015,923

Net income

$18,925

$8,107

Plus:

Income tax expense

4,594

1,963

Other expense, net

2,446

2,295

Interest expense, net

18,125

19,719

Loss on extinguishment of debt

—

2,214

Operating income

$44,090

$34,298

Plus:

Amortization of intangible assets

22,900

22,562

M&A, integration and related costs

13,373

4,625

Adjusted operating income

$80,363

$61,485

Plus:

Depreciation and CCA amortization

5,209

5,476

Adjusted EBITDA

$85,571

$66,961

Adjusted EBITDA margin

6.8 %

6.6 %

Minus:

Cash interest expense, net

16,456

18,231

Income tax expense, as adjusted

13,366

9,234

Depreciation and CCA amortization

5,209

5,476

Other expense, net, as adjusted

2,446

2,545

Adjusted net income

$48,094

$31,475

($K, except per share data)

Three Months Ended

April 3, 2026

March 28, 2025

Diluted earnings per share

$0.60

$0.25

Plus:

M&A, integration and related costs

$0.33

0.11

Amortization of intangible assets

$0.56

0.54

Amortization of debt issuance costs and Loss on extinguishment of debt

$0.04

0.09

FMV land impairment

$—

$—

Gain on acquisition, net

$—

$(0.01)

Adjusted diluted earnings per share

$1.53

$0.98

Average shares outstanding:

Basic, as reported

31,214

31,590

Diluted, as reported

31,512

32,021

Adjusted diluted

31,512

32,021

Non-GAAP Tables

($K)

Three Months Ended

April 3, 2026

March 28, 2025

Net cash used by operating activities

$     (129,910)

$        (95,464)

Plus:

M&A, integration, and related payments

2,206

3,008

MARPA facility activity

105,628

(25,617)

Adjusted operating cash flow

$         (22,076)

$       (118,073)

($K)

TTM

April 3, 2026

Net income

$                          88,700

Plus:

Interest expense, net

78,316

Income tax expense

25,652

Depreciation and amortization

112,595

Additional permitted add-backs1

52,097

TTM Bank EBITDA

$                        357,360

($K, except ratio)

Period Ending

April 3, 2026

Total debt

$                   1,100,085

Cash, cash equivalents and restricted cash

$                      208,666

Less:

Restricted cash

(4,014)

Cash and cash equivalents

$                      204,652

Net debt

$                      895,433

TTM bank EBITDA

$                      357,360

Net leverage ratio

 2.51x

____________________________
1 Includes among other items, non-cash losses like loss on extinguishment of debt and/or lease impairments, stock compensation, transaction and integration related costs

SUPPLEMENTAL INFORMATION

Revenue by contract type, geographic region, contract relationship, and customer for the periods presented below was as follows: 

Revenue by Contract Type

 

Three Months Ended

April 3,

March 28,

%

(In thousands)

2026

2025

Change

Cost-plus and cost-reimbursable

$       752,405

$       623,213

20.7 %

Firm-fixed-price

372,759

363,950

2.4 %

Time-and-materials

128,964

28,760

348.4 %

Total revenue

$    1,254,128

$    1,015,923

 

Revenue by Geographic Region

 

Three Months Ended

April 3,

March 28,

%

(In thousands)

2026

2025

Change

United States

$       810,554

$       577,458

40.4 %

Middle East

314,333

318,345

(1.3) %

Asia

76,137

75,978

0.2 %

Europe

53,104

44,142

20.3 %

Total revenue

$    1,254,128

$    1,015,923

 

Revenue by Contract Relationship

 

Three Months Ended

April 3,

March 28,

%

(In thousands)

2026

2025

Change

Prime contractor

$    1,197,462

$       962,421

24.4 %

Subcontractor

56,666

53,502

5.9 %

Total revenue

$    1,254,128

$    1,015,923

 

Revenue by Customer

 

Three Months Ended

April 3,

March 28,

%

(In thousands)

2026

2025

Change

Army

$       440,114

$       442,136

(0.5) %

Navy

382,921

346,118

10.6 %

Air Force

167,833

99,126

69.3 %

Other

263,260

128,543

104.8 %

Total revenue

$    1,254,128

$    1,015,923

 

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SOURCE V2X, Inc.

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