Welcome to today’s Aviat Networks' Fiscal 2017 Second Quarter Results Conference Call. I'd now like to turn the call over to Mr. Glenn Wiener. Please go ahead, sir.

Thank you, operator, and welcome to Aviat Networks' fiscal 2017 second quarter results conference call. We issued our press release after the market closed and posted an updated investor presentation on our website in the Investor Relations section. Additionally, the Company intends to file its Form 10-Q with Securities and Exchange on or before February 13. Joining us on today’s call will be Michael Pangia, President and CEO, and Kevin Holwell, our Vice President of Finance and Eric Chang, our Principal Accounting Officer. Ralph Marimon, our Chief Financial Officer, unfortunately is not able to join us today due to a personal family matter. During today's call, management may make forward-looking statements regarding Aviat's business, including statements related 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. In addition, 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. At this time, 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 Pangia. Mike?

Thank you, Glenn. I’d also like to thank everyone joining today's call. I'm very happy to report that our second fiscal quarter - that in our second fiscal quarter we were profitable on net income basis both GAAP and non-GAAP. We reported non-GAAP earnings per share of $0.57 and adjusted EBITDA of just under $5 million, which represents close to a $9 million year-over-year improvement. We also increased our cash by over 3 million sequentially. The strategy we implemented to improve our business has proven to be effective and we are increasingly confident that we can sustain profitability moving forward. Our focus on process improvements and driving efficiencies in our business will continue and we are now in a position to increase our actions towards profitable topline growth. Overall, I'm very proud of our accomplishments as a company and as a team. Although, there is more to do I want to thank all of our employees for seeing our turnaround through and enabling us to achieve these much improved results. Now let's talk about the quarter. We reported revenue of 68.5 million which was 10.3 million or 17.7% higher than the prior quarter and came within 2.7% on a year-over-year basis. While our book to bill was under 1, it was within our expected range and as I mentioned on our last investor call, bookings will vary from quarter to quarter. This quarter, we reported non-GAAP gross margins of 31.3%, an improvement of 140 basis points sequentially. When comparing to last year’s second quarter, gross margins increased by approximately 800 basis points, higher volumes in North America led to a favorable mix and positively impacted margins, stronger operational execution in our supply chain and services areas also contributed to better performance. And we believe these improvements are sustainable moving forward.…

[Operator Instructions] And your first question comes from the line of Orin Hirschman from AIGH Investment Partners.

Hi. Congratulations on the terrific results. I know it's been long in coming and you're working very hard. And thank God it's nice, it's very gratifying to see. A quick question just on the actual numbers themselves. The non-GAAP EPS number, that included the -- I want to make sure I know the exact number -- that included roughly $750,000 benefit plus another minor benefit?

That's correct. Yes.

Okay. Do you happen to have the adjusted EPS number without those one-time benefits?

I think it’s about $0.15 per share impact roughly.

Okay. So it would have been $0.42.

That’s correct. Yeah.

Okay. In terms of -- you know, carriers are steady. Any reason to believe that there's any big change in the spending or that's really going to depend on a year or two from now 5G and we're just going to -- more of a steady-state mode? And it's nice to win the Nigerian in -- but is that actually for the carrier or is that for their trying to get corporate customers for private networks? I wasn't clear on that.

Yeah. It’s more -- so the enterprise play in Nigeria is more associated with working with the operator to drive business with corporate business, utilizing our solutions. As far as the mobile operator front, I mean we feel very confident that we actually have an opportunity to enter some other operators that we’re currently not doing business with. Having said that, the business will continue to be steady and I wouldn't rule out opportunities for growth within some existing accounts again based on probably more in the position of taking some share from others that are with those customers, not expecting any major uptick in CapEx in the near term, but we definitely anticipate that to be the case in the medium to longer term.

Okay. In terms of the market, it’s really been working so well for you, which is North America, private corporate networks, obviously that's really been great and it gets you in where you do a $60 million or a $70 million fourth quarter. What gets you to the $75 million to $80 million mark, assuming that the carrier world kind of just stays in the doldrums, but steady like you outlined? What's needed to get you even further on the private network side? Or it's just a matter of time?

Well, so first I can say that I have a very, very strong funnel of opportunities, which puts us into a, I guess, more an optimistic position on our ability to generate growth moving forward. So it first starts with the line of sight the opportunities that I see that would represent further growth within the private networks vertical. I do want to again go back to what I said earlier, whether it's private networks or mobile and when I talk about mobile, there's different tiers to mobile, everything from the top tier all the way down to lower tier regional providers. We have a lot of opportunity to actually start addressing customers that we haven't really focused on that much in the past that are in some of these two tiers and in some geographies that we haven't really focused on even within private networks and we see a lot of opportunity as I said earlier to actually position ourselves and take share, from others to drive growth. If the overall market picks up, to me, that would even provide further fuel for us to drive growth even further than we anticipate.

Is there anything critical on the new product side?

So our current portfolio that we have is very strong. We have a number of dimensions to our offerings that differentiate us from others. So when you look at total cost of ownership and include the services layer, we feel very good about our position. We will be introducing some new products in the coming weeks. Stay tuned for that and we believe that that will be a further catalyst to position us even more favorably and open up additional opportunities on some of the new customers that I highlighted earlier.

[Operator Instructions] And there are no further questions.

Thank you operator.