Good day, and welcome to today’s Aviat Networks' First Quarter 2017 Financial Results Conference Call. Today's conference is being recorded. At this time I'd like to turn the conference over to your host for today’s call, Glenn Wiener, Investor Relations. Please go ahead.

Thank you, operator, and welcome to Aviat Networks' fiscal 2017 first quarter results conference call. We issued our press release, and filed our Form 10-Q after the market closed yesterday and will be posting an updated investor presentation shortly. All documents can be found on the IR section of our website. I'm joined today by Mike Pangia, President and Chief Executive Officer; and Ralph Marimon, Chief Financial Officer. During today's call, management may make forward-looking statements regarding Aviat's business, including statements relating to projections of earnings and revenue, business drivers, the timing and capabilities of new products, network expansion by mobile and private network operators, and economic activity in different regions. These and other forward-looking statements involve assumptions, risks and uncertainties that could cause actual results to differ materially from those statements. Please note, these forward-looking statements reflect the company's opinions only as of the date of this call, and the company undertakes no obligation to revise or publicly release the results of any revision of these forward-looking statements in light of new information or future events. During today's call, management will be referencing both GAAP and non-GAAP financial measures. A copy of the press release and financial tables, which include a GAAP to non-GAAP reconciliation and other supplemental financial information, is also available on the company's website in the Investor Relations section. Our call today is being broadcasted live over the internet and the webcast will be archived on the Investor Relations page of our website for those who are unable to join us. I'd like to thank you all for your interest and support of Aviat. And with that, I will turn the call over to Mike.

Thank you, Glenn. I’d also like to thank everyone joining us on today's call. Let me start by saying that across the board we are very pleased with our first quarter results. Our bookings, revenues, expenses and cash are tracking to expectations while our gross margins through the first fiscal quarter have exceeded our internal goals. Our focus on addressing the highest quality customer opportunities combined with the aggressive actions we have taken to efficiently streamline our operations are paying off and have given us a heightened sense of confidence in our business outlook. As such, since our last public remarks in September, we have a better view towards generating positive adjusted EBITDA for the full fiscal year starting with the current quarter. Our fiscal first quarter results reflect excellent execution by our team in the face of ongoing macro-economic headwinds. We posted revenue of $58.2 million, essentially flat compared to the prior quarter as we expected. Our non-GAAP gross margin rate of 29.9% was up 420 basis points sequentially and 340 basis points year over year. This represents the highest gross margin rate we've had in over three years. To put this in perspective, though, relative to our plan, first quarter gross margins reflect a favorable mix of higher margin projects which tends to vary quarter to quarter. Putting mix aside though, we still had a number of positive elements to our margin performance, including greater efficiencies in our services business and within our supply chain operations which we believe are sustainable. Similar to last quarter, our book-to-bill was well above 1. Given the nature of our private networks business, it’s not unusual to see fluctuations in our quarterly bookings. However as we have been winning large multi-year awards in North America, our backlog has strengthened considerably and as…

Good morning everyone. And thanks for joining us today. Mike provided an overview of our fiscal 2017 first quarter results but I will make a few additional comments and then discuss our balance sheet. During our remarks, I will be referencing non-GAAP financial results and as Glenn noted, you can view the reconciliation of GAAP and non-GAAP financial measures in our press release. Our revenues for the quarter were essentially flat sequentially with increases in all reportable markets except for North America. However in North America we have significant momentum moving into Q2 as a result of prior contract win. And we expect North America revenues to be up year over year in each quarter throughout the balance of fiscal 2017. Our non-GAAP gross margins of 29.9% were up significantly both on a sequential and year over year basis. As Mike noted, other than some favorable mix this is a direct reflection of our efforts to improve supply chain management as well as better resource utilization which drove higher services margin performance in Q1. We reported total non-GAAP operating expenses for the first quarter of $19.7 million which is a reduction of 7% on a sequential basis and 11% on a year-over-year basis. This reduction reflects all the initiatives that were enacted over the last couple of years. Process improvement is a continued focus for the company and we expect further gains as we move forward. Our non-GAAP operating loss for Q1 narrowed to $2.3 million which represents a sequential improvement of $3.8 million. Although our year-over-year non-GAAP operating loss increased by $1.2 million due to the decline in revenue, our business model is showing a positive trend as measured by the improved operating margins. The same story holds true when comparing adjusted EBITDA. We reported an adjusted EBITDA loss…

Thanks, Ralph. In summary we had an excellent quarter relative to our plan and the second quarter should be even better. We are making substantial progress in our process improvement and spending efficiency initiatives and are continuing to build a strong pipeline for the future. Our ability to compete has strengthened. We have highly differentiated solutions. Our radios, routers, software and services continue to drive new business for us and our recently launched AviatCloud automation platform is a testament to past investments in innovation. With a strong roadmap of products and services planned for fiscal 2017 I believe our competitiveness will be even stronger. One brief comment regarding our strategic process. We continue to explore all avenues that can advance our competitive position, offering and valuation. With that said, there is nothing specific to disclose at this time. In closing, with the actions taken and currently in process, we believe sustainable profitability is well within our reach. We're excited about our market position, prospects and the anticipated business ahead. Our team has done -- our team has done a remarkable job and I'm really looking forward to reporting on our progress. Operator, we're now ready to open up the call for questions.

[Operator Instructions] And at this time it appears that we have no questions from the phones.

End of Q&A

Okay. Thank you operator. I’d like to thank everyone for their continued support. While the past few years have been challenging, we believe the steps we have taken particularly over the last several quarters, our anticipated results in 2017 will result in increased value both our company and our shareholders. Thank you.

This does conclude today's conference. Thank you for your participation.