---

---

---

---

•	Revenue of $58.2 million; Book to Bill > 1

•	GAAP Gross Margin of 29.8%, an increase of 340 basis points year-over-year; Non-GAAP Gross Margin of 29.9%, an improvement of 340 basis points year-over-year

•	GAAP Operating Expenses of $20.3 million, a reduction of $2.3 million or 10.3% year-over-year; Non-GAAP Operating Expenses of $19.7 million, a reduction of $2.4 million or 10.9% year-over-year

•	GAAP Net Loss Attributable to Aviat Networks of $(0.6) million, an improvement of $0.6 million year-over-year

•	Non-GAAP Loss from Continuing Operations Attributable to Aviat Networks of $(2.6) million, a decline of $1.2 million year-over-year

•	Adjusted EBITDA of $(0.6) million compared to Adjusted EBITDA of $0.7 million in Q1 Fiscal 2016

•	Cash and cash equivalents at Fiscal 2017 first quarter end of $31.8 million; net cash increased $1.3 million from FY16 year-end

---

---

---

•	continued price and margin erosion as a result of increased competition 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 which could impact, among other things, our liquidity;

•	the timing of our receipt of payment for products or services from our customers;

•	our ability to meet projected new product development dates or anticipated cost reductions of new products;

•	our suppliers' inability to perform and deliver on time as a result of their financial condition, component shortages, or other supply chain constraints;

•	customer acceptance of new products;

•	the ability of our subcontractors to timely perform;

•	continued 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 by others;

•	the results of restructuring efforts;

•	the ability to preserve and use our net operating loss carryforwards;

•	the effects of currency and interest rate risks; and

---

•	the impact of political turmoil in countries where we have significant business.

---

---

---

---

(1)

The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP loss from continuing operations attributable to Aviat Networks excluded share-based compensation, restructuring charges, foreign exchange loss on intercompany dividend receivable, specific one-time inventory write-down, tax refund from Inland Revenue Authority of Singapore and adjustment to reflect the pro forma tax rate. 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 the GAAP loss from continuing operations attributable to Aviat Networks. 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.

---