Aviat Networks (NASDAQ:AVNW) held its fourth-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/.
The full earnings call is available at https://edge.media-server.com/mmc/p/yuwjwtv3/
Summary
Aviat Networks reported a 4.8% increase in quarterly revenues to $121 million and a year-end backlog of $367 million, marking a strong fiscal 2026 finish.
The company is diversifying beyond its core microwave business into mission-critical access products, which showed significant sales growth.
Aviat's strategic focus includes expanding private networks in public safety and utility sectors, leveraging opportunities in MDU, and exploring integration with LEO networks.
International revenues, particularly in EMEA, grew significantly, driven by private network wins.
The company faces supply chain challenges but plans to offset costs through price increases to customers.
Fiscal 2027 guidance includes revenue projections of $455 to $470 million and adjusted EBITDA of $50 to $55 million, with growth expected in the second half.
Operational highlights include a solid balance sheet, reduced inventories, and remediation of past material weaknesses.
Management remains optimistic, citing potential growth from the U.S. BEAD program and increased market share from a European competitor's exit.
Full Transcript
OPERATOR
Welcome to Aviat Networks' fourth quarter fiscal 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Andrew Fredrickson, Vice President, Corporate Finance. You may begin.
Andrew Fredrickson, Vice President, Corporate Finance
Thank you and welcome to Aviat Networks' fourth quarter fiscal 2026 results conference call and webcast. You can find our press release and updated investor presentation in the IR section of our website at www.aviatnetworks.com along with a replay of today's call. With me today are Pete Smith, Aviat's President and CEO, who will begin with opening remarks on the Company's fiscal quarter, followed by Andy Schmidt, CFO, to review financial results for the quarter.
Pete will then provide closing remarks on Aviat's strategy and outlook. As a reminder, during today's call and webcast, management may make forward-looking statements regarding Aviat's business, including but not limited to statements relating to fiscal guidance, financial projections, business drivers, new products and expansions, the economic activity in different regions. These and other forward-looking statements reflect the Company's opinions only as of the date of this call and webcast and involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements.
Additional information on factors that could cause actual results to differ materially from the statements expressed or implied on this call can be found in our most recent filings with the SEC. The Company undertakes no obligation to revise or make public any revision of these forward-looking statements in light of new information or future events. Additionally, during today's call and webcast, management will reference both GAAP and non-GAAP financial measures.
Please refer to our press release which is available in the IR section of our website at www.aviatnetworks.com and financial tables therein, which include a GAAP to non-GAAP reconciliation and other supplemental financial information. At this time I would like to turn the call over to Aviat's President and CEO, Pete Smith.
Pete Smith, President and CEO
Thanks, Andrew. Let's review the highlights from the fourth quarter. Quarterly revenues of $121 million, up 4.8% versus the year-ago period. Adjusted EBITDA of $11.9 million. Non-GAAP EPS of $0.64. Year-end backlog of $367 million, up 14% versus the end of fiscal year 2025. This marks a strong end to Aviat's fiscal 2026. Full year revenue was $440 million, up 1.2% versus the prior fiscal year. This represents our sixth consecutive year of revenue growth.
Aviat is the only microwave company to achieve this growth during the last six years. I would also like to note that this was the first time in over a decade that Aviat has had all four quarters in the fiscal year with at least $100 million in revenue. This is a tremendous achievement and I would like to thank all of our customers, supplier partners and employees in making this possible. Since FY23 we have been expanding outside of our core microwave business with a focus on mission-critical access.
In FY26, sales of non-microwave, i.e., mission-critical access products, grew significantly versus FY25 and is the result of Aviat's strategic decisions and execution years prior, allowing us to diversify our business and gain access to larger, faster growing segments. We are glad to see this strategy coming to fruition. Now I'd like to talk more about recent developments in our end markets. In the U.S., strong quarterly sales and bookings set the stage for an exciting year ahead.
We see several growth vectors aligning for Aviat. First, we believe our multi-dwelling unit (MDU) opportunity will deliver meaningful revenues to Aviat. This year we announced an order received from an existing customer in the range of 25 to 30 million dollars. We expect all of this revenue in fiscal 2027. The Aviat team continues to work to win additional markets and adjacent opportunities to increase our capture rate in fiscal 2027 and beyond. Secondly, we see private networks continuing to be a core foundation for Aviat's growth in state and local public safety networks.
Aviat remains the leader and continues to pursue opportunities for more share of demand. According to industry research, city and state government budgets are expected to grow 6.4% and 4.2% respectively. Video-intensive applications like drones and body cameras as well as other data-intensive tools drive increased bandwidth demand within private networks which necessitates more or upgraded microwave links. As highlighted in our last earnings call, utility private networks are poised for growth.
Power infrastructure and grid connectivity are emerging as key bottlenecks to AI infrastructure deployment. This build out requires secure, highly reliable communication networks to connect and manage grid assets. Aviat participates here thanks to our portfolio of industry-leading solutions geared towards utilities. Our microwave radio portfolio, Appreza, SCADA radios and LTE/5G routers combined with our network management software and our Health Assurance and Frequency Assurance offerings provides utilities a one-stop shop for its network connectivity, build out and management needs.
With the SpaceX IPO and the announcement of a potential fourth cellular network in the U.S. there is a significant amount of investor interest in low Earth orbit, or LEO, networks. We believe that there is a valuable niche to fill in the communications space, specifically around nomadic or very remote locations. Therefore, we see the technology as being complementary and not necessarily competitive with Aviat. We see the following for LEO and Aviat: 1.
Aviat's core business is largely unthreatened. 2. There is an idea of SpaceX building out a terrestrial network. While the architecture of that conceptual network is not fully formed, should this materialize, Aviat is well positioned if and when the architecture requires terrestrial backhaul. 3. Most exciting is the new functionality that LEO brings. LEO offers redundant communications. This is most valued by private network customers and we are seeing opportunities for Aviat through integration with microwave and cellular router solutions.
For microwave networks, satellite provides a low-cost, easy-to-deploy backup path for critical remote sites. For cellular routers in public safety and fleet applications, satellite fills LTE and 5G coverage gaps with automatic failover. In both cases, Aviat's opportunity is to deliver an integrated solution that improves resilience while simplifying deployment, management and operations for our customers. Aviat's customers are engaged in trials to demonstrate the value proposition of this redundancy.
Please see slide 11 in our investor presentation to get a picture of the ongoing trials and connectivity solution we bring. Moving on to International, Aviat's business has seen particular traction in the EMEA region where revenues were up 53% in the fourth quarter and up 33% for all of fiscal 2026. This growth has been driven in part by recent international private network wins, including with defense customers, including Blacknet, as well as energy firms.
As we pursue more such private network business, we see this segment as a growing portion of our international business in the future. Moving on to supply chain, like others in the technology hardware space, Aviat has not been immune from component shortages and cost inflation. Specifically, we are most focused on securing supply for memory, printed circuit boards or PCBs, capacitors and FPGAs. We will be opening the playbook we use during the COVID supply chain crisis to secure favorable placement and allocations among our suppliers.
Although Aviat has been able to manage through these current allocations and shortages with our inventory and safety stock, we have also had some headwinds to our gross margins from component cost inflation. We plan to pass along these price increases to our customers to help offset these rising costs. With that, I will now turn the call over to Andy to go through the financial results.
Andrew Fredrickson, Vice President, Corporate Finance
Thanks, Pete. I'll review some of the key fiscal year 2026 and fourth quarter results. Please note that our detailed financials can be found in our press release and all comparisons discussed are between fourth quarter fiscal year 26 and fourth quarter fiscal year 25 unless otherwise noted. For the fourth quarter we reported total revenue of $120.9 million as compared to $115.3 million for the same period last year, an increase of 4.8%. Revenues for the twelve month period were $439.7 million versus $434.6 million the year ago twelve month period.
North America, which comprised 56.5% of our total revenues for the quarter, was $68.3 million. This was up $10.3 million or 17.8% versus the year ago period. These results were complemented by a limited set of deployments for a North American based MDU project in the quarter. International revenues, which made up 43.5% of total revenues, were $52.6 million for the quarter. For fiscal 2026, North American revenues were $220 million, up 6% versus fiscal year 25.
International revenues were $219.6 million in fiscal 26 compared to $227 million in fiscal 25. EMEA showed solid results for fiscal 26 while APAC stabilized. We feel our international business overall is poised for growth in fiscal 27. Gross margins in the fourth quarter were 30.8% on a GAAP basis and 30.9% on a non-GAAP basis. This compares to 34.2% GAAP and 34.7% non-GAAP in the prior year. The year-over-year change in gross margin is typically due to volumes, regional and product mix, and so on.
That said, as Pete noted earlier, our current period gross margin was negatively affected by component shortages and associated price inflation. For fiscal 2026, gross margins were 31.5% on a GAAP basis and 31.8% on a non-GAAP basis. This compares to 32.1% GAAP and 32.8% non-GAAP in fiscal 25. Fourth quarter GAAP operating expenses were $31.4 million. Non-GAAP operating expenses, which exclude the impact of restructuring charges, share-based compensation and other costs, were $27.3 million.
For fiscal 26, GAAP operating expenses were $119.1 million and non-GAAP operating expenses were $109.2 million. This is versus $128.9 million GAAP and $113.5 million non-GAAP in fiscal 25, a decrease of $9.8 million and $4.3 million respectively. This is the result of the entire management team diligently managing costs, continuously reviewing corporate needs and driving process efficiency efforts. Fourth quarter operating income was $5.8 million on a GAAP basis and $10 million on a non-GAAP basis.
This compares to $8.9 million GAAP and $12.9 million non-GAAP in the year-ago period. For fiscal 26, GAAP operating income was $19.2 million, up $8.7 million versus the last fiscal year. Fiscal 2026 non-GAAP operating income was $30.6 million, up $1.5 million or 5.2% versus the last fiscal year. The fourth quarter non-GAAP tax benefit was $0.5 million. As a reminder, as of fiscal 2026 year end, the company has over $420 million of net operating losses, or NOLs, that will continue to generate shareholder value via minimal cash tax payments for the foreseeable future.
Fourth quarter GAAP net loss was $1.3 million and non-GAAP net income was a positive $8.3 million, which excludes restructuring charges, depreciation and amortization, share-based compensation, interest and other income, other non-recurring expenses and the non-cash tax provision. Fourth quarter GAAP loss per share was $0.10 on a fully diluted basis and non-GAAP earnings per share came in at a positive $0.64 on a fully diluted basis. Adjusted EBITDA for the fourth quarter was $11.9 million, or 9.8% of revenues.
For the fiscal year, adjusted EBITDA was $36.7 million. Moving on to the balance sheet, our cash and marketable securities at the end of the fourth quarter were $72.8 million. Outstanding debt was $97 million, bringing the net debt position to $24.2 million. Aviat made continued improvements in its balance sheet. Unbilled receivables were lower for the third consecutive quarter. The fourth quarter balance was $3.1 million lower compared to the fiscal 2026 third quarter ending balance.
This brings our total unbilled receivables balance to $82.1 million. Inventories were also lowered sequentially by $3.6 million, bringing our inventory balance to $69 million. For the full fiscal year, Aviat generated cash from operations of $13.6 million. Combined with the other balance sheet improvements, this is good progress for shareholders. Other points to make: Aviat used $2.2 million to repurchase approximately 131,000 shares in the quarter at an average price of $1,655 per share.
Finally, we are pleased to share that in the context of our control environment, we have fully remediated our past five material weaknesses. Rest assured, Aviat's core value of continuous improvement is still in play and we will continue to work to further strengthen our foundation. With that, I'll turn it back to Pete for some final comments.
Pete Smith, President and CEO
Thanks, Andy. Regarding our fiscal 2027 guidance, we are establishing our outlook as follows: full year revenues to be in the range of $455 to $470 million; full year adjusted EBITDA to be in the range of $50 to $55 million. Note that our guidance is full fiscal year. Some additional color on seasonality: Based on our backlog and current outlook, the first quarter will be the foundation on which Aviat's revenue builds throughout fiscal 2027. Additionally, we expect the second half of fiscal 2027 to have higher overall revenues versus the first half of fiscal 2027.
See slide 23 in the investor presentation for a view of the seasonality Aviat has typically experienced and for use in your models. With that, operator, let's open up for questions.
OPERATOR
Thank you. Ladies and gentlemen, to ask a question at this time, you will need to press star 1-1 on your touchtone telephone and wait for your name to be announced. To withdraw your question, simply press star 1-1 again. Please stand by while we compile the queue. Our first question, coming from the line of Scott Seeley with ROTH Capital, is now open.
Scott Seeley, Analyst at ROTH Capital
Hey, good morning. Thanks for taking the questions. Nice job on the quarter. Also nice to see the balance sheet improvements and the cleanup of the material weaknesses. Hey, maybe just to dive in, I wonder if you give us an idea of the breakdown in North America between carrier contribution and private networks and then specifically looking into the September quarter and how we ramp up from an MDU contribution standpoint. Pete, how is that shaping up just in terms of the context of how we should think about the flow of that into the course of fiscal 27?
Pete Smith, President and CEO
So, you know, we ended the year with record backlog, up 14%. You know, a lot of that was work throughout the year that landed in the May/June timeframe. There's this pervasive component availability, so, you know, when we said in the script that Q1 is going to be a foundation, we think, given the timing of our wins and given the supply chain ramp up, we think if you put a revenue profile together, Q1 will be the lowest, Q2 and Q4 will be peaks, and Q3 should be higher than Q1.
And then with respect to the, you know, overall, I don't have the US breakdown in front of me, but we're about 45% private networks, 55% service providers or mobile network operators. And I think that the, you know, I'll give a qualitative statement: I would say the US has more private networks than the overall Aviat. So I think that gives you a vector on that.
Scott Seeley, Analyst at ROTH Capital
Okay, thank you. Just to clarify though, on the MDU front, do you expect contribution in the September quarter or is there a lot of pre-deployment activity ongoing, more engineering and otherwise, and we should expect to ramp up into the second half of the year or second quarter?
Pete Smith, President and CEO
Yeah, so we think the ramp up is going to occur in second quarter. There's a chance that we get some in the September quarter. And let me just give a little more color on this. We completed more proof of concepts in a variety of markets and we believe that the customer has moved us ahead in the supplier pecking order where we think we're established as the preferred vendor. So what we really need to do is get that site readiness over the hump in the September quarter, get all of our components on order, and enjoy the win in the December quarter.
Scott Seeley, Analyst at ROTH Capital
Great, thank you. And two other quick ones if I could: just on the satellite LEO opportunity, I'm wondering if you're actually starting to see interesting contribution today. It seems like there's a lot of activity, but I'm wondering what you're factoring into that fiscal 27 guidance at this point in time. And then second, gross margins — some component headwinds on that front. I'm wondering how you're thinking about that in terms of fiscal 27, broadly speaking.
Is there some expansion in gross margin opportunities given some incremental scale and product mix, or are you still seeing some headwinds on the component front? Thanks.
Andrew Fredrickson, Vice President, Corporate Finance
Sure. Scott, this is Andy. Great to hear from you. In terms of gross margins, as Pete commented on revenue, Q1 is going to be our building block and we go up from there — so let's call it the foundation or lowest part of the year. You know it's going to be affected by lower volume. Of course, Pete did talk to, in his prepared remarks, strategies that we're deploying to offset the component inflation, if you will. Those are going to be more realized in Q2 and going forward, not in Q1.
But again we do have plans and we expect Q2, 3 and 4 to have more upward pressure on gross margin.
Pete Smith, President and CEO
And there's no LEO in the guide.
OPERATOR
Thank you. Our next question in queue, coming from the line of Christian Schwab with Craig-Hallum. Your line is now open.
Christian Schwab, Analyst at Craig-Hallum
Great. Congrats on the solid quarter. I'm wondering if you could give us an update on your large European competitor who is exiting their microwave business — we believe by the end of this calendar year. Are you seeing any business benefit from that currently, and would you anticipate or see an increased dialogue that you think will benefit you in your next fiscal year?
Pete Smith, President and CEO
A competitor of our European competitor has communicated that their pipeline of opportunities is improving, and I would suggest that the same thing is transpiring with us. You know, to convert a microwave network, it's a, you know, six- to 18-month proposition. And, you know, the good news for us was the announcement was made November of 2025 and, you know, immediately after that I think Aviat and all of our non–for sale competitors created a pipeline and are pursuing that.
And, you know, I would say we've had kind of normal course of business wins and probably, I would say that our competitors have probably had that as well, where networks get exchanged at a low level. I think the possibility for this to improve is probably in the March and June quarters for Aviat, as well as the competitors that have been working over the, what will be, a period of a year, year and a half to convert the uncertainty to wins.
Christian Schwab, Analyst at Craig-Hallum
Thank you. And then as it relates to, you know, BEAD, there's been a lot of fluctuations tied to that, and just wondering what your current thoughts — I think before we thought maybe some things would start in fiscal year 27 but really had more of a multi-year outlook. I'm just wondering if there's any update on your current thoughts there.
Pete Smith, President and CEO
In front of me. We've got quotes out to our customers. We're working to turn those quotes into business. So it's becoming tactical rather than theoretical. And I would also say that we still believe it to be a three-year impact, and our estimate is in the December quarter it should have the first real impact to our revenue.
Christian Schwab, Analyst at Craig-Hallum
Okay, fantastic. And then lastly, regarding your belief that you're the preferred vendor and showing proof of concepts of different, you know, applications, on the MDU ramp — appreciate the $25 to $30 million significant order in hand. Should we anticipate that there could be more significant orders as we go through fiscal year 27, or is that yet too early?
Pete Smith, President and CEO
I don't want you to anticipate, but there could be. How about that? Trying to split it, split the middle there. But it's a fair question and we're hopeful. Let's not put it in the model, but that's what we're working towards.
Christian Schwab, Analyst at Craig-Hallum
Fantastic. No other questions.
OPERATOR
Thank you. Our next question in queue coming from the lineup, Jason Smith with Lake Street. Your line is now open.
Jason Smith, Analyst at Lake Street
Thanks, guys, for taking my questions. Just following up on Christian's last question on the MDU opportunity and potential for more orders. Can you help us size the potential follow-on orders, or how are you looking at this opportunity sort of in the intermediate term here?
Pete Smith, President and CEO
Yeah. So I think, you know, what's really critical to driving the size of the opportunity is subscriber, subscriber growth. And we're in the early, the early, early innings of the subscriber growth and the, the more subscribers that come online for this tier one, the bigger the opportunity. I mean, for, you know, the last time we talked we sized this as an eight-figure opportunity and we put that in our 8-K during our quiet period. We would say that just that we think it's going to get bigger.
So then the next question is does it cross the barrier for nine figures? I don't know. I think the total annual opportunity is in the $100 million neighborhood. And that's predicated on one, the customer achieving their subscriber growth metrics and two, our share versus the competitive share. So if you want to look at this as what could it be? What could it all be? I would say we hit the $100 million figure. The precursors to that are the market, the market opportunity hits the $100 million level.
How that parses out between Aviat and the competition, it's looking more favorable. But I don't, I don't see in any situation where we'd be sole source. And then what's probably more important is how many subscribers come on to those MDU units.
Jason Smith, Analyst at Lake Street
Okay, that's really helpful. And then just as a follow-up, can you update us on the Aprisa router funnel and what you're seeing and expectations for fiscal 27.
Pete Smith, President and CEO
So we're not going to break out guidance specifically for Aprisa. The Aprisa business on the utility front, which is why we bought in, continue to enjoy it, is performing well. We've talked in the past about the LTE router and basically putting this router into public safety or police cars. What I can say is that we have initial orders in the U.S., Europe and Latin America. It's still relatively small and there's a long lead, a long kind of runway to get government agencies into the purchasing funnel.
But I would also say that our performance in the mobile cellular router sector is we're going up against Cradlepoint. And the reason we have those initial orders and significant engagements is because we have a compelling value proposition that customers like. And it's just going to take time, but we believe that it will happen.
Jason Smith, Analyst at Lake Street
Gotcha. Thanks a lot, guys.
OPERATOR
Thank you. And as a reminder to ask a question, please press star 11. Our next question coming from the lineup, Dave Kang with B. Riley. Your line is now open.
Dave Kang, Analyst at B. Riley
Good morning. Thank you. First question is just wondering, regarding that, you know, Middle East projects that were delayed last quarter, how much of that was captured in the fourth quarter?
Pete Smith, President and CEO
Yeah, I think most of it, Dave. Most of it was recaptured.
Dave Kang, Analyst at B. Riley
Got it. And that mix also played into that gross margin. I know you talked about supply chain headwind, but also the mix,
Andrew Fredrickson, Vice President, Corporate Finance
Primarily the component inflation has affected this quarter. Mix is pretty much representative. As said in prepared remarks, Americas were about 56.5%, which is fairly typical.
Pete Smith, President and CEO
Just to add to that, Dave. Right. So the nature of the inflation in the component environment is sometimes they're spot markets, sometimes it's, you know, prices go up even after you make the order. And, you know, in the next few weeks we're going to go out to our customers for more price. So unfortunately the nature of the inflation is it's a little more abrupt than typical. So we got impacted by that abruptness and we're going to work to offset that inflation.
I think we should get some improvement in the December quarter and then the back half it should be better still.
Dave Kang, Analyst at B. Riley
So by second half, can we expect like mid-30s in terms of gross margin expectations?
Andrew Fredrickson, Vice President, Corporate Finance
That would be aspirational. A lot of the growth again is coming out of MDU we've talked to in these other markets. And that has pretty much what we call more of a middle of our product strategy profile. So again, we ended the year at about 32%. That's a safe harbor in terms of how we operate. Just looking at historical, again, as we, as Pete talked to these different strategies, we expect some upward pressure. Pressure. So that's good. But I wouldn't necessarily go as high as what you're suggesting as we speak today.
Dave Kang, Analyst at B. Riley
Got it. And my last question is regarding your fiscal 27 revenue outlook. Just wondering if any BEAD be factored into that outlook.
Andrew Fredrickson, Vice President, Corporate Finance
A small. A small amount. Relatively conservative. So if BEAD kicks in, we will revisit the guidance.
Dave Kang, Analyst at B. Riley
Got it. Thank you.
OPERATOR
Thank you. Our next question coming from the line of Theodore O'Neill with Litchfield Health Research. Your line is now open.
Theodore O'Neill, Analyst at Litchfield Health Research
Thank you and congratulations on the good quarter. I want to also follow up on the MDU opportunity. Can you tell us, I'm sure you can't mention them by name, but can you tell us about the type of customers that are driving the MDU opportunity?
Pete Smith, President and CEO
Well, you know, we've disclosed, and a lot of industry folks, we've disclosed that it's a U.S. tier 1 that has access to 39 GHz spectrum. So that narrows it down. And, you know, the field installers have leaked this, but it's not for us to disclose. And their customers, customers are apartment dwellers that, you know, typically the profile is they skew younger, lots of remote work from home that require bandwidth beyond what's economically delivered today.
Theodore O'Neill, Analyst at Litchfield Health Research
Okay. And Pete, last quarter you talked about war-induced pushouts of about $9 million and you already said that part of that had come into Q4. Did that did all make it in, or are you still experiencing some kind of war-induced issues out there?
Pete Smith, President and CEO
Actually, so the customer was not Urdu, but that was in the Middle East war-induced issue. And we would say that there's steady state, that that problem has reversed and I would say our demand in that customer base and our supply is at steady state.
Theodore O'Neill, Analyst at Litchfield Health Research
Okay. And finally on the range of revenue guidance, there's a range of $15 million. Can you talk about what sort of, what would make it, you know, at the high end or the low end of that, sort of give and take in that?
Pete Smith, President and CEO
Yeah, I'd like to talk about how to make it to get to the higher end—more MDU. And how does that—one, there's more subscriber growth, two, share gain versus the competition. Two is, you know, our, you know, de minimis modeling of BEAD. So if BEAD kicks in the way we wished it would have kicked in over the last five years, then we will revisit guidance. And then three would be private networks. And, you know, Christian asked a question about the competitive dynamics in private networks.
We think we're well positioned. If some of those convert or if private networks—the Aprisa LTE router opportunity is in there—if either of those two things happen, that'll pop up our private network. And then lastly we see some, given the competitive dynamics globally, we have more tier one interest than normal—new tier one. So that would be the fourth potential lever to move us from, let's say, the midpoint to the high end. So we have. We have four possibilities there.
Yep. Thank you, Theo.
Theodore O'Neill, Analyst at Litchfield Health Research
Okay, thanks. Okay, thanks, Pete.
OPERATOR
Thank you. Our next question coming from the line of Russell Kangabood with Citizens Bank. Your line is now open.
Russell Kangabood, Analyst at Citizens Bank
Great. Thank you for taking my question. Hey, Andy and Pete. Nice, nice close to the year. Regarding the historical revenue pattern at 48 to 52% for the back half of the year, for your guidance for next year, are you looking at something like more towards the range of 40, 60 or could it be more pronounced than that?
Andrew Fredrickson, Vice President, Corporate Finance
Hey, Russ, this is Andrew Frederickson. Yeah, so we mentioned that the second half of the year would be a little bit more back-half weighted. I would think you could think about it incrementally more than maybe where it's been historically. So maybe it's something closer to 45, 55. But we'll certainly continue to keep you updated as we advance through the year. But if you look at the investor slide number 23 in our investor presentation, we have historical numbers over the last couple of fiscal years.
I would say at a minimum, that's a good guidance level from a seasonality perspective. But again, maybe you have a couple more percentage points in the back half.
Pete Smith, President and CEO
Yeah. Slide 23 is the model that we're signing up to.
Russell Kangabood, Analyst at Citizens Bank
Sounds good. And then regarding the MDU opportunity, understand that it's hinging on the subscriber growth there. Just curious if the number of markets that you're operating there has grown or sustained from what you've talked about in the previous quarter.
Pete Smith, President and CEO
I think we're slated or are in 25 markets. And if we roll back the clock, we were 1, 7, 11 to 13. So now I think we're approaching the 25 market level.
Russell Kangabood, Analyst at Citizens Bank
That's great. Thanks.
OPERATOR
Thank you. I'm showing no further questions in the Q and A queue at this time. I will now turn the call back over to Mr. Pete Smith with any closing remarks.
Pete Smith, President and CEO
It's an exciting time for Aviat. Thanks, everyone, for joining. We look forward to again updating you in November. Thanks.
OPERATOR
This concludes today's conference call. Thank you for your participation, and you may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
Login to comment