34 unchanged sentences
• the ability of our subcontractors to timely perform;
−Removed: • continued weakness in the global economy affecting customer spending;
+Added: • weakness in the global economy affecting customer spending;
• retention of our key personnel;
21 unchanged sentences
In the discussion herein, our fiscal year ending July 2, 2021 is referred to as “fiscal 2021” or “2021” and our fiscal year ended July 3, 2020 is referred to as “fiscal 2020” or “2020.”
+Added: On April 7, 2021, we effected a two-for-one split in the form of a stock dividend to shareholders of record as of April 1, 2021.
We anticipate growth in revenue in fiscal 2021.
−Removed: We have a healthy backlog entering fiscal 2021 and we anticipate continuing our strong momentum across all verticals.
+Added: We continue to have a backlog entering the final quarter of fiscal 2021 and we anticipate continuing our strong momentum across all verticals.
We have made inroads into the U.S.
rural broadband and wireless internet service provider areas and there is now further evidence of investment to support 5G deployments with our U.S.
−Removed: service provider customers.
−Removed: Internationally, we are continuing a more conservative view of our revenue opportunity based on a variety of factors that have led to an overall capital spending decline and increased competitive intensity.
+Added: service provider customers and we have returned to growth for international.
In March 2020, the World Health Organization characterized the current respiratory illness caused by novel coronavirus disease, known as COVID-19, as a pandemic.
3 unchanged sentences
The COVID-19 pandemic has led to an increase in our expenses, including as a result of impacts associated with preventive and precautionary measures that we, other businesses and governments are taking or requiring.
−Removed: The extent to which the COVID-19 pandemic impacts our business, prospects and results of operations will depend on future developments, which are highly uncertain and cannot be predicted with certainty, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, including the ongoing vaccination efforts and how quickly and to what extent normal economic and operating activities can resume.
+Added: The extent to which the COVID-19 pandemic impacts our business, prospects and results of operations will depend on future developments, which are highly uncertain and cannot be predicted with certainty, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or treat its impact, including the ongoing vaccination efforts and how quickly and to what extent normal economic and
+Added: operating activities can resume.
Management is actively monitoring the impact of the COVID-19 pandemic on our financial condition, liquidity, operations, suppliers, industry, and workforce.
2 unchanged sentences
Our manufacturing sites remain operational, and we are maintaining social distancing and have enhanced cleaning protocols and usage of personal protective equipment, where appropriate.
−Removed: The impact to our supply chain lead times and ability to fulfill orders was minimal for the three and six months ended January 1, 2021.
+Added: The impact to our supply chain lead times and ability to fulfill orders was minimal for the three and nine months ended April 2, 2021.
However, depending on pandemic-related factors like the uncertain duration of temporary manufacturing restrictions as well as our ability to perform field services during shelter in place orders, we could experience constraints and delays in fulfilling customer orders in future periods.
−Removed: We are monitoring, assessing and adapting to the situation and preparing for implications to our business, supply chain and customer demand.
−Removed: We expect these challenges to continue until business and economic activities return to more normal levels.
−Removed: The financial results for the three and six months ended January 1, 2021 reflect some of the reduced activity experienced during the period in various locations around the world and are not necessarily indicative of the results for the full year.
+Added: We are monitoring, assessing and adapting to the situation and preparing for possible implications to our business, supply chain and customer demand.
+Added: We expect the potential for these challenges to continue until business and economic activities return to more normal levels.
+Added: The financial results for the three and nine months ended April 2, 2021 reflect some of the reduced activity experienced during the period in various locations around the world and are not necessarily indicative of the results for the full year.
Operations Review
−Removed: The market for mobile backhaul continued to be our primary addressable market segment globally in the first half of fiscal 2021.
−Removed: In North America, we supported long-term evolution (“LTE”) deployments of our mobile operator customers, public safety network deployments for state and local governments, and private network implementations for utilities and other customers.
+Added: The market for mobile backhaul continued to be our primary addressable market segment globally in the first nine months of fiscal 2021.
+Added: In North America, we supported 5G and long-term evolution (“LTE”) deployments of our mobile operator customers, public safety network deployments for state and local governments, and private network implementations for utilities and other customers.
In international markets, our business continued to rely on a combination of customers increasing their capacity to handle subscriber growth, the ongoing build-out of some large 3G deployments, and LTE deployments.
4 unchanged sentences
(1) Africa and the Middle East, (2) Europe and Russia, and (3) Latin America and Asia Pacific.
−Removed: Revenue by region for the three and six months ended January 1, 2021 and December 27, 2019 and the related changes were as follows:
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Revenue by region for the three and nine months April 2, 2021 and April 3, 2020 and the related changes were as follows:
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
North America $ 42,021 $ 37,250 $ 4,771 12.8 % $ 136,678 $ 113,489 $ 23,189 20.4 %
5 unchanged sentences
$ 66,404 $ 61,379 $ 5,025 8.2 % $ 203,225 $ 175,990 $ 27,235 15.5 %
−Removed: Our revenue in North America increased by $12.7 million, or 34.8%, during the second quarter of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: Revenue in North America increased by $18.4 million, or 24.2%, during the first six months of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: The increase in North America revenue during the three and six months of fiscal 2021 was primarily due to an increase in the number of private network projects.
−Removed: Our revenue in Africa and the Middle East increased by $1.8 million or 20.4% during the second quarter of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: Revenue in Africa and the Middle East increased by $1.8 million, or 9.2%, during the first six months of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: This increase in revenue during the three and six months of fiscal 2021 was primarily due to increased sales to mobile operators in the region.
−Removed: Revenue in Europe and Russia decreased by $0.9 million, or 37.5%, for the second quarter of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: Revenue in Europe and Russia decreased by $2.1 million, or 35.2%, during the first six months of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: This decrease during the three and six months of fiscal 2021 was primarily due to lower sales to mobile operators in the region.
−Removed: Revenue in Latin America and Asia Pacific increased by $0.9 million, or 11.5%, during the second quarter of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: Revenue in Latin America and Asia Pacific increased by $4.1 million, or 31.0%, during the first six months of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: This increase during the three and six months of fiscal 2021 was primarily due to increased sales to mobile operators in the region.
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Our revenue in North America increased by $4.8 million, or 12.8%, during the third quarter of fiscal 2021 compared with the same period of fiscal 2020.
+Added: Revenue in North America increased by $23.2 million, or 20.4%, during the first nine months of fiscal 2021 compared with the same period of fiscal 2020.
+Added: The increase in North America revenue during the three and nine months of fiscal 2021 was primarily due to an increase in the number of private network projects.
+Added: Our revenue in Africa and the Middle East increased by $0.7 million or 7.3% during the third quarter of fiscal 2021 compared with the same period of fiscal 2020.
+Added: Revenue in Africa and the Middle East increased by $2.5 million, or 8.6%, during the first nine months of fiscal 2021 compared with the same period of fiscal 2020.
+Added: This increase in revenue during the three and nine months of fiscal 2021 was primarily due to increased sales to mobile operators in the region.
+Added: Revenue in Europe and Russia increased by $1.4 million, or 72.4%, for the third quarter of fiscal 2021 compared with the same period of fiscal 2020.
+Added: Revenue in Europe and Russia decreased by $0.7 million, or 8.7%, during the first nine months of fiscal 2021 compared with the same period of fiscal 2020.
+Added: This increase and decrease during the three and nine months of fiscal 2021 was primarily due to level of sales to mobile operators in the region.
+Added: Revenue in Latin America and Asia Pacific decreased by $1.8 million, or 13.8%, during the third quarter of fiscal 2021 compared with the same period of fiscal 2020.
+Added: Revenue in Latin America and Asia Pacific increased by $2.3 million, or 8.7%, during the first nine months of fiscal 2021 compared with the same period of fiscal 2020.
+Added: The decrease in the third quarter was from lower sales to mobile operator customers.
+Added: The increase during the nine months of fiscal 2021 was primarily due to increased sales to mobile operators in the region during the first half of fiscal 2021.
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
Product sales $ 45,246 $ 40,930 $ 4,316 10.5 % $ 136,401 $ 111,676 $ 24,725 22.1 %
2 unchanged sentences
$ 66,404 $ 61,379 $ 5,025 8.2 % $ 203,225 $ 175,990 $ 27,235 15.5 %
−Removed: Our revenue from product sales increased by $12.5 million, or 36.7%, for the second quarter of fiscal 2021 compared with the same quarter of fiscal 2020.
−Removed: Product sales increased compared to the same period in fiscal 2020 in North America, Africa and the Middle East, and in Latin America, with small declines in the other regions.
−Removed: Our services revenue increased by $2.0 million, or 9.1%, during the second quarter of fiscal 2021 compared with the same quarter of fiscal 2020.
−Removed: Services revenue increased in North America and Latin America and Asia Pacific, offset by lesser declines in Africa and the Middle East and Europe and Russia.
−Removed: Our revenue from product sales increased by $20.4 million, or 28.8%, for the first six months of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: Product sales increased for all regions, except for Europe and Russia compared to the same period in fiscal 2020.
−Removed: Our services revenue increased by $1.8 million, or 4.1%, during the first six months of fiscal 2021 compared with the same period of fiscal 2020.
−Removed: Service sales increased for all regions, except for Europe and Russia and Africa and the Middle East compared to the same period in fiscal 2020.
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Our revenue from product sales increased by $4.3 million, or 10.5%, for the third quarter of fiscal 2021 compared with the same quarter of fiscal 2020.
+Added: Our services revenue increased by $0.7 million, or 3.5%, during the third quarter of fiscal 2021 compared with the same quarter of fiscal 2020.
+Added: Our revenue from product sales increased by $24.7 million, or 22.1%, for the first nine months of fiscal 2021 compared with the same period of fiscal 2020.
+Added: Our services revenue increased by $2.5 million, or 3.9%, during the first nine months of fiscal 2021 compared with the same period of fiscal 2020.
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
Revenue $ 66,404 $ 61,379 $ 5,025 8.2 % $ 203,225 $ 175,990 $ 27,235 15.5 %
6 unchanged sentences
32.1 % 27.9 % 33.2 % 30.5 %
−Removed: Gross margin for the second quarter of fiscal 2021 increased by $8.6 million, or 46.9% compared with the same quarter of fiscal 2020.
−Removed: Gross margin for the first six months of fiscal 2021 increased by $10.3 million, or 25.2%.
−Removed: For the three and six months of fiscal 2021, gross margin improved over the same period in fiscal 2020 primarily due to higher volume and increased profitability of product and service businesses, mainly in North America.
−Removed: Product margin as a percentage of product revenue increased in the second quarter of fiscal 2021 compared with the same period of fiscal 2020 primarily due to improved margins in North America.
−Removed: Service margin as a percentage of service revenue decreased in the second quarter of fiscal 2021 compared with the same period in fiscal 2020 primarily due to regional and service mix.
−Removed: Product margin and service margin as a percentage of product revenue and service revenue, respectively, improved in the first six months of fiscal 2021 compared with the same period of fiscal 2020 due to improved product and service margins in all regions, except Europe and Russia.
+Added: Gross margin for the third quarter of fiscal 2021 increased by $3.6 million, or 16.5% compared with the same quarter of fiscal 2020.
+Added: Gross margin for the first nine months of fiscal 2021 increased by $13.9 million, or 22.1%.
+Added: For the three and nine months of fiscal 2021, gross margin improved over the same period in fiscal 2020 primarily due to higher volume of Private Network business and increased sales through Aviat Store which serves primarily the Rural Broadband space.
+Added: Both product and service margin as a percentage of product and service revenue increased in the third quarter of fiscal 2021 and in the first nine months of fiscal 2021 compared with the same period of fiscal 2020 primarily due to higher level of Private Network business and increased sales through Aviat Store.
Research and Development Expenses
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
Research and development $ 5,275 $ 4,875 $ 400 8.2 % $ 15,541 $ 15,069 $ 472 3.1 %
7.9 % 7.9 % 7.6 % 8.6 %
−Removed: Our research and development expenses increased by $0.4 million, or 8.9%, in the second quarter of fiscal 2021 compared with the same period of fiscal 2020 primarily due to increased product development activities.
−Removed: Our research and development expenses were relatively flat for the six months of fiscal 2021 compared to the comparable periods of fiscal 2020.
+Added: Our research and development expenses increased by $0.4 million and $0.5 million, or 8.2% and 3.1%, in the three and nine months, respectively of fiscal 2021 compared with the same periods of fiscal 2020 primarily due to increased product development activities.
Selling and Administrative Expenses
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
Selling and administrative $ 15,106 $ 15,233 $ (127) (0.8) % $ 41,555 $ 44,334 $ (2,779) (6.3) %
22.7 % 24.8 % 20.4 % 25.2 %
−Removed: Our selling and administrative expenses decreased by $0.8 million, or 5.8%, in the second quarter of fiscal 2021 compared with the same period in fiscal 2020.
−Removed: Our selling and administrative expenses decreased by $2.7 million, or 9.1%, for the six months of fiscal 2021 compared with the same period in fiscal 2020.
−Removed: The decreases for the three and six months of fiscal 2021 compared to comparable periods of fiscal 2020 were primarily due to lower travel expenses and restructuring savings.
+Added: Our selling and administrative expenses decreased by $0.1 million, or 0.8%, in the third quarter of fiscal 2021 compared with the same period in fiscal 2020.
+Added: Our selling and administrative expenses decreased by $2.8 million, or 6.3%, for the nine months of fiscal 2021 compared with the same period in fiscal 2020.
+Added: The decreases for the three and nine months of fiscal 2021 compared to comparable periods of fiscal 2020 were primarily due to lower travel expenses and restructuring savings offset in part by higher sales-related expenses.
Restructuring Charges
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
Restructuring charges $ 1,162 $ 617 $ 545 88.3 % $ 1,162 $ 2,175 $ (1,013) (46.6) %
−Removed: In the second quarter of fiscal 2020 and the first six months of fiscal 2020, we recognized restructuring charges of $0.4 million and $1.6 million, respectively, related to the Fiscal 2020 Plan, which was primarily to consolidate product development, right size our resources to support our international business and other support functions.
+Added: In the third quarter and the first nine months of fiscal 2021, we recognized restructuring charges of $1.2 million primarily related to the restructuring plan (the “Fiscal 2021 Plan”) approved by our Board of Directors.
+Added: The Fiscal 2021 Plan is anticipated to entail a reduction in force of approximately 30 employees to be implemented through the second quarter of fiscal year 2022, with a certain number of positions being consolidated and/or relocated.
Interest Income and Interest Expense
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
Interest income $ 128 $ 112 $ 16 14.3 % $ 202 $ 318 $ (116) (36.5) %
1 unchanged sentence
Interest income reflected interest earned on our cash equivalents, which were comprised of money market funds and bank certificates of deposit.
−Removed: Interest expense was primarily related to interest associated with borrowings under the SVB Credit Facility.
−Removed: Three Months Ended Six Months Ended
−Removed: (In thousands, except percentages) January 1, 2021 December 27, 2019 $ Change % Change January 1, 2021 December 27, 2019 $ Change % Change
−Removed: Income (loss) before income taxes $ 7,916 $ (1,378) $ 9,294 (674.5) % $ 14,516 $ 224 $ 14,292 6,380.4 %
−Removed: Provision for income taxes $ 1,275 $ 293 $ 982 335.2 % $ 1,939 $ 1,841 $ 98 5.3 %
+Added: Interest expense was primarily related to interest associated with borrowings from Silicon Valley Bank (“SVB Credit Facility”).
+Added: Three Months Ended Nine Months Ended
+Added: (In thousands, except percentages) April 2, 2021 April 3, 2020 $ Change % Change April 2, 2021 April 3, 2020 $ Change % Change
+Added: Income before income taxes $ 4,163 $ 1,329 $ 2,834 213.2 % $ 18,679 $ 1,553 $ 17,126 1,102.8 %
+Added: (Benefit from) provision for income taxes $ (90,568) $ 598 $ (91,166) (15,245.2) % $ (88,629) $ 2,439 $ (91,068) (3,733.8) %
We estimate our annual effective tax rate at the end of each quarterly period, and we record the tax effect of certain discrete items in the interim period in which they occur, including changes in judgment about uncertain tax positions and deferred tax valuation allowances.
−Removed: The tax expense for the first six months of fiscal 2021 and the comparable periods in fiscal 2020 was primarily due to tax expense related to profitable subsidiaries and $0.4 million of tax expense related to an audit settlement with the Financial Administration of the Republic of Slovenia.
−Removed: The tax expense for the first six months of fiscal 2020 was primarily due to tax expense related to profitable subsidiaries and certain withholding taxes as well as a $0.6 million increase in our reserves for uncertain tax positions.
−Removed: During the first quarter of 2021, we received a tax refund of $1.2 million from the Federal Revenue of Brazil related to our withholding tax refund claim and recorded minimal tax expense related to interest as a discrete item.
+Added: The tax benefit for the first nine months of fiscal 2021 was primarily due to the release of valuation allowance on U.S.
+Added: federal and state deferred tax assets.
+Added: The tax expense for the first nine months of fiscal 2020 was primarily related to profitable subsidiaries and a $0.4 million increase in our reserves for uncertain tax positions.
+Added: At each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets on a more likely than not basis.
+Added: During the third quarter of fiscal 2021, we recorded a valuation allowance release of $92.2 million as a discrete item based on management’s reassessment of the
+Added: amount of its U.S.
+Added: federal and state deferred tax assets that are more likely than not to be realized, primarily as a result of increases in U.S.
+Added: profitability in the current period and expectations of continued profitability in future periods.
+Added: In performing our analysis, we used the most updated plans and estimates that we currently use to manage the underlying business and calculated the utilization of our deferred tax assets.
+Added: We continue to maintain a valuation allowance of $1.4 million on certain U.S.
+Added: federal and state deferred tax assets that we believe is not more likely than not to be realized in future periods.
+Added: During the third quarter of 2021, we received a tax refund of $3.5 million from the U.S.
+Added: Internal Revenue Service primarily related to our refundable alternative minimum tax credit claim and recorded minimal tax benefit related to interest as a discrete item.
During the second quarter of 2021, we effectively settled a tax audit with the Financial Administration of the Republic of Slovenia for fiscal years 2016 to 2018 and recorded $0.4 million of tax expense related to the denial of research and development tax relief as a discrete item.
During the second quarter of 2021, we effectively settled a tax audit with the General Authority of Zakat and Tax in Saudi Arabia for fiscal years 2016 to 2018 and recorded minimal tax benefit related to the release of previously recorded ASC 740-10 reserve as a discrete item.
−Removed: We continue to record a partial valuation allowance on our U.S.
−Removed: deferred tax assets which primarily represent future income tax benefits associated with our operating losses.
−Removed: Realization of our deferred tax assets is dependent on generating sufficient pre-tax book income in future periods.
−Removed: Although we believe it is more likely than not that future income will be sufficient to allow us to recover the value of a portion of our U.S.
−Removed: deferred tax assets, realization is not assured and future events could cause us to change our judgment.
−Removed: If future events cause us to conclude that it is not more likely than not that we will be able to recover more or less of the current anticipated portion of deferred tax assets, we would be required to either decrease or increase the valuation allowance on our deferred tax assets at that time, which would result in a charge to income tax expense and a material increase or decrease in net income in the period in which we change our judgment.
−Removed: During the second quarter of fiscal 2021, we did not record any adjustment to valuation allowance on our U.S.
−Removed: deferred tax assets.
+Added: During the first quarter of 2021, we received a tax refund of $1.2 million from the Federal Revenue of Brazil related to our withholding tax refund claim and recorded minimal tax expense related to interest as a discrete item.
Liquidity, Capital Resources, and Financial Strategies
Sources of Cash
−Removed: As of January 1, 2021, our total cash and cash equivalents were $43.0 million.
+Added: As of April 2, 2021, our total cash and cash equivalents were $45.8 million.
Approximately $25.4 million, or 55.3%, was held in the United States.
The remaining balance of $20.5 million, or 44.7%, was held by entities outside the United States.
−Removed: Of the amount of cash and cash equivalents held by our foreign subsidiaries on January 1, 2021, $15.5 million was held in jurisdictions where our undistributed earnings are indefinitely reinvested, and if repatriated, would be subject to foreign withholding taxes.
+Added: Of the amount of cash and cash equivalents held by our foreign subsidiaries on April 2, 2021, $19.1 million was held in jurisdictions where our undistributed earnings are indefinitely reinvested, and if repatriated, would be subject to foreign withholding taxes.
Operating Activities
Cash provided by or used in operating activities is presented as net income adjusted for non-cash items and changes in operating assets and liabilities.
−Removed: Net cash provided by operating activities was $10.2 million for the first six months of fiscal 2021, compared to $10.8 million for the first six months of fiscal 2020;
+Added: Net cash provided by operating activities was $14.2 million for the first nine months of fiscal 2021, compared to $14.6 million for the first nine months of fiscal 2020;
this difference was primarily related to a net change in Accounts receivable and partially offset by the net change in Net income.
−Removed: Net cash provided by noncash items was $5.7 million for the first six months of both 2021 and 2020.
−Removed: The net changes in operating assets and liabilities resulted in a net use of cash of $8.0 million for the first six months of fiscal 2021, compared to net cash provided by operating activities of $7.2 million for the same period in fiscal 2020.
−Removed: Changes in operating assets and liabilities resulted in a net use of cash for the first six months of fiscal 2021 primarily related to Accounts receivable that fluctuate from period to period, depending on the amount, timing of sales and billing activities and cash collections;
−Removed: and the timing of Accrued expenses.
−Removed: The use of cash from assets and liabilities was partially offset by cash provided by the timing of payments of Accounts payable and changes in Inventory due to demand and our focus on inventory management.
+Added: Net cash provided by noncash items was $(81.8) million for the first nine months of 2021.
+Added: The net changes in operating assets and liabilities resulted in a net use of cash of $11.3 million for the first nine months of fiscal 2021, compared to net cash provided by operating activities of $7.4 million for the same period in fiscal 2020.
+Added: Changes in operating assets and liabilities resulted in a net use of cash for the first nine months of fiscal 2021 primarily related to Accounts receivable that fluctuate from period to period, depending on the amount, timing of sales and billing activities and cash collections;
+Added: and an increase in certain levels of inventories primarily to mitigate supply chain constraints.
+Added: The use of cash from assets and liabilities was partially offset by customer Advance payments and unearned revenue;
+Added: and the timing of payments of Accounts payable.
Investing Activities
−Removed: Net cash used in investing activities was $1.4 million and $2.4 million for the first six months of fiscal 2021 and 2020, respectively, which consisted of capital expenditures.
−Removed: During the remainder of fiscal year 2021, we expect to spend approximately $3.5 million for capital expenditures, primarily on equipment for development and manufacturing of new products and IT infrastructure.
+Added: Net cash used in investing activities was $2.4 million and $3.9 million for the first nine months of fiscal 2021 and 2020, respectively, which consisted of capital expenditures.
+Added: During the fourth quarter of fiscal year 2021, we expect to spend approximately $1 million to $2 million for capital expenditures, primarily on equipment for development and manufacturing of new products and IT infrastructure.
Financing Activities
Financing cash flows consist primarily of proceeds from and repayments of short-term debt, repurchase of stock and proceeds from the sale of shares of common stock through employee equity plans.
−Removed: Net cash used in financing activities was $7.7 million for the first six months of fiscal 2021, primarily due to $9.0 million repayment of short-term debt partially offset by cash proceeds from the issuance of common stock under employee stock plans of $1.5 million.
−Removed: Net cash used in financing activities was $2.1 million for the first six months of fiscal 2020, primarily due to repurchases of common stock of $1.4 million and the payments for taxes related to net settlement of equity awards of $0.7 million.
−Removed: As of January 1, 2021, our principal sources of liquidity consisted of $43.0 million in cash and cash equivalents;
−Removed: $23.5 million of available credit under our $25.0 million credit facility with Silicon Valley Bank (“SVB Credit Facility”), which matures on June 28, 2021, and future collections of receivables from customers.
+Added: Net cash used in financing activities was $7.7 million for the first nine months of fiscal 2021, primarily due to $9.0 million repayment of short-term debt partially offset by cash proceeds from the issuance of common stock under employee stock plans of $1.9 million.
+Added: Net cash used in
+Added: financing activities was $2.5 million for the first nine months of fiscal 2020, primarily due to repurchases of common stock of $1.8 million and the payments for taxes related to net settlement of equity awards of $0.8 million.
+Added: As of April 2, 2021, our principal sources of liquidity consisted of $45.8 million in cash and cash equivalents;
+Added: $23.5 million of available credit under our $25.0 million SVB Credit Facility, which matures on June 28, 2021, and future collections of receivables from customers.
We regularly require letters of credit from certain customers, and, from time to time, these letters of credit are discounted without recourse shortly after shipment occurs in order to meet immediate liquidity requirements and to reduce our credit and sovereign risk.
9 unchanged sentences
Our ability to make scheduled principal payments or pay interest on or refinance any future indebtedness depends on our future performance and financial results, which, to a certain extent, are subject to general conditions in or affecting the microwave communications market and to general economic, political, financial, competitive, legislative and regulatory factors beyond our control.
−Removed: As of January 1, 2021, we were in compliance with the quarterly financial covenants, as amended, contained in the SVB Credit Facility and there was no amount outstanding.
+Added: As of April 2, 2021, we were in compliance with the quarterly financial covenants, as amended, contained in the SVB Credit Facility and there was no amount outstanding under the SVB Credit Facility.
In addition, we have an uncommitted short-term line of credit of $0.4 million from a bank in New Zealand to support the operations of our subsidiary located there.
−Removed: This line of credit provides for $0.3 million in short-term advances at various interest rates, all of which was available as of January 1, 2021 and July 3, 2020.
−Removed: The line of credit also provides for the issuance of standby letters of credit and company credit cards, of which $0.1 million was outstanding as of January 1, 2021 and July 3, 2020.
+Added: This line of credit provides for $0.3 million in short-term advances at various interest rates, all of which was available as of April 2, 2021 and July 3, 2020.
+Added: The line of credit also provides for the issuance of standby letters of credit and company credit cards, of which $0.1 million was outstanding as of April 2, 2021 and July 3, 2020.
This facility may be terminated upon notice, is reviewed annually for renewal or modification, and is supported by a corporate guarantee.
+Added: On April 13, 2021, we filed a registration statement on Form S-3 with the SEC using a “shelf” registration process.
+Added: Once the shelf registration statement is declared effective by the SEC, we will be able to, from time to time, offer and sell, either individually or in combination, in one or more offerings, up to a total dollar amount of $200 million of any combination of the securities described in the shelf registration statement or a related prospectus supplement.
Restructuring Payments
−Removed: We had liabilities for restructuring activities totaling $1.4 million as of January 1, 2021, which were classified as current liabilities and expected to be paid out in cash over the next 12 months.
+Added: We had liabilities for restructuring activities totaling $2.0 million as of April 2, 2021, which were classified as current liabilities and expected to be paid out in cash over the next 12 months.
We expect to fund these future payments with available cash and cash provided by operations.
1 unchanged sentence
The amounts disclosed in our fiscal 2020 Annual Report on Form 10-K filed with the SEC on August 27, 2020 include our commercial commitments and contractual obligations.
−Removed: During the first six months of fiscal 2021, no material changes occurred in our contractual obligations to purchase goods and services or to make payments under operating leases or our contingent liabilities on outstanding letters of credit, guarantees, and other arrangements as disclosed in our fiscal 2020 Annual Report on Form 10-K.
+Added: During the first nine months of fiscal 2021, no material changes occurred in our contractual obligations to purchase goods and services or to make payments under operating leases or our contingent liabilities on outstanding letters of credit, guarantees, and other arrangements as disclosed in our fiscal 2020 Annual Report on Form 10-K.
Off-Balance Sheet Arrangements
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Currently we are not participating in transactions that generate relationships with unconsolidated entities or financial partnerships, including variable interest entities, and we do not have any material retained or contingent interest in assets as defined above.
−Removed: As of January 1, 2021, we did not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect liquidity.
+Added: As of April 2, 2021, we did not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect liquidity.
In addition, we are not currently a party to any related party transactions that materially affect our results of operations, cash flows or financial condition.
−Removed: As of January 1, 2021, we had commercial commitments of $59.7 million.
+Added: As of April 2, 2021, we had commercial commitments of $57.8 million.
Please refer to “Note 12 Commitments and Contingencies” of the Notes to unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q for Contractual Obligations and Off-Balance Sheet Arrangements.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.