Replies to post #84331 on Savvy Trades and Investments

[Knowledge is King]

AVNW($54.05) announces restructuring; news AH going into 3-day weekend?? Hmmm

But, stock repurchase program reinstated...



Item 2.05 Costs Associated with Exit or Disposal Activities.




On February 11, 2021, the Board of Directors (the “Board”) of Aviat Networks, Inc. (the "Company") approved a restructuring plan (the “Restructuring Plan”) in order to continue to reduce its operating costs and improve profitability as part of its transformational initiative to optimize its business model and increase efficiencies. The Restructuring Plan is anticipated to entail a reduction in force of approximately 30 employees to be implemented through the second quarter of fiscal year 2022 (the “Reduction in Force”), with a certain number of positions being consolidated and/or relocated.




The Company estimates that Restructuring Plan charges will be approximately $1.3 million and will be recorded as restructuring expenses which consist of one-time severance charges, continuation of health benefits and outplacement services. The foregoing estimated charges will be cash expenditures. The Company anticipates it will generate approximately $1.1 million in net annual savings, a portion of which will be allocated to support growth-related initiatives to be in a stronger position to drive continuous top- and bottom- line performance.




Management will continue to analyze the Company’s cost structure and evaluate other potential restructuring and cost reduction opportunities in light of the Company’s strategic priorities. While no definitive determination has been made yet, the Company may undertake and implement additional realignment and cost reduction measures and incur additional charges, which the Company would record as restructuring charges in the appropriate period as they are determined.






Item 8.01 Other Events




On February 11, 2021 the Board of Directors of Aviat Networks, Inc. (the “Company”) voted to re-instate the stock repurchase program which was announced in a Form 8-K filed on May 15, 2018, and which has been suspended since the close of market on February 18, 2020.




As of February 11, 2021, $3.4 million remained available for repurchase under the $7.5 million stock repurchase program. The Company may acquire the shares through authorized Rule 10b5-1 plans, open market transactions, privately-negotiated transactions, block purchases, or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934. The amount and timing of the repurchases will depend upon market conditions. The remaining shares repurchased under this program will be recorded as treasury stock.