UPDATE: D.A. Davidson Reiterates Neutral Rating, Lowers PT on Aviat Networks Following FQ3'13 Results

In a report published Thursday, D.A. Davidson analyst Aalok K. Shah reiterated a Neutral rating on Aviat Networks

, but slightly lowered the price target from $4.00 to $3.40. In the report, Shah noted, “Aviat reported FQ3'13 financial results of $118.3 million in revenue (down ~8% sequentially) and pro-forma EPS of $0.02; in line with guidance. Revenue was in line with the Street consensus estimate while EPS missed by $0.02. We modeled for revenue of $118.3 million and EPS of $0.04. Non-GAAP gross margin fell 110bp sequentially to 29.1%, below guidance, though the company noted a one-time $1.1 million inventory write-down reduced GM by 100bp. As guided, Non-GAAP opex in the quarter increased modestly to $32.6 million. Book to bill in the quarter was less than 1.0.” Aviat Networks closed on Wednesday at $3.40.