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Cambium Networks Corp

For the period ended Feb 15, 2024. Filed Feb 15, 2024.

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A notice of a major event between regular reports, such as results, a deal or a change of executives. It is often the first formal record of the news.

Feb 15, 2024 · Filed Feb 15, 2024

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EX-99.1 · Cautionary Note Regarding Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of the federal securities laws, including statements concerning our expected next quarter revenues, net income and cash. All statements other than statements of historical fact contained in this document, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

The forward-looking statements in this document are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this document and are subject to a number of risks, uncertainties and assumptions including those described in the “Risk factors” section of our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2023, and Form 10-Qs filed on May 9, 2023, August 2, 2023, and November 3, 2023. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include: the unpredictability of our operating results; our inability to predict and respond to emerging technological trends and network operators’ changing needs; the impact of political tensions between the United States and other countries such as the war between Russia and Ukraine, tensions with China and the evolving events in Israel and Gaza; the strength of the dollar and the impact on the cost of our products globally; current or future unfavorable economic conditions, both domestically and in our foreign markets, including the risk of a global or localized recession; our inability to predict and respond to emerging technological trends and network operators’ changing needs; the impact of competitive pressures on the development of our new products; the impact of actual or threatened health epidemics and other outbreaks; our limited or sole source suppliers’ inability to acquire or produce third-party components to build our products and the impact of supply shortages, extended lead times or changes in supply or cost of components needed to manufacture our products; our ability to effectively forecast demand or manage our inventory, including our channel inventory, which may cause us to record write-downs for excess or obsolete inventory; our reliance on third-party manufacturers, which subjects us to risks of product delivery delays and reduced control over product costs and quality; our reliance on distributors and value-added resellers for the substantial majority of our sales; the inability of our third-party logistics and warehousing providers to deliver products to our channel partners and network operators in a timely manner; or our distributors’ and channel partners’ inability to attract new network operators or sell additional products to network operators that currently use our products; the technological complexity of our products, which may contain undetected hardware defects or software bugs or subject our products to the risks of ransomware or malware or other cyber-attack; our channel partners’ inability to effectively manage inventory of our products, timely resell our products or estimate expected future demand; and current or future unfavorable economic conditions, both domestically and in foreign markets.

Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.

CAMBIUM NETWORKS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)
Three months ended · Year ended
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Revenues$40,206$43,046$84,507$220,195$296,899
Cost of revenues48,93432,08743,138149,062151,759
Gross profit(8,728)10,95941,36971,133145,140
Gross margin-21.7%25.5%49.0%32.3%48.9%
Operating expenses
Research and development13,05713,15112,87453,47849,865
Sales and marketing9,7269,67512,14842,59944,452
General and administrative6,2078,6885,42227,39824,982
Depreciation and amortization1,5961,5451,4756,2105,961
Total operating expenses30,58633,05931,919129,685125,260
Operating (loss) income(39,314)(22,100)9,450(58,552)19,880
Operating margin(97.8)%(51.3)%11.2%(26.6)%6.7%
Interest expense, net7256205592,5211,977
Other (income) expense, net(10)6315271(114)
(Loss) income before income taxes(40,029)(22,783)8,876(61,344)18,017
(Benefit) provision for income taxes(1,021)3,417(1,135)2,230(2,183)
Net (loss) income$(39,008)$(26,200)$10,011$(63,574)$20,200
(Loss) earnings per share
Basic$(1.41)$(0.95)$0.37$(2.31)$0.75
Diluted$(1.41)$(0.95)$0.35$(2.31)$0.72
Weighted-average number of shares outstanding to compute (loss) earnings per share
Basic27,680,08027,619,28127,109,92627,519,47626,919,550
Diluted27,680,08027,619,28128,273,78627,519,47628,025,278
Share-based compensation included in costs and expenses:
Cost of revenues$47$45$56$207$219
Research and development1,0051,0371,2584,6994,532
Sales and marketing5475977022,5722,603
General and administrative1,2121,1668794,1153,326
Total share-based compensation expense$2,811$2,845$2,895$11,593$10,680
CAMBIUM NETWORKS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
(Unaudited)
December 31, 2023December 31, 2022
ASSETS
Current assets
Cash$18,710$48,162
Accounts receivable, net of allowance of $283 and $57764,10389,321
Inventories, net66,87857,068
Recoverable income taxes222117
Prepaid expenses6,58911,857
Other current assets6,0696,464
Total current assets162,571212,989
Noncurrent assets
Property and equipment, net12,87911,271
Software, net11,9858,439
Operating lease assets7,8944,011
Intangible assets, net7,6759,173
Goodwill9,8429,842
Deferred tax assets, net15,23812,782
Other noncurrent assets1,335955
TOTAL ASSETS$229,419$269,462
LIABILITIES AND EQUITY
Current liabilities
Accounts payable$19,120$31,284
Accrued liabilities44,76728,042
Employee compensation5,0717,394
Current portion of long-term external debt, net3,1863,158
Deferred revenues8,7658,913
Other current liabilities13,1178,429
Total current liabilities94,02687,220
Noncurrent liabilities
Long-term external debt, net21,92624,463
Deferred revenues10,4738,617
Noncurrent operating lease liabilities6,5952,170
Other noncurrent liabilities1,6191,619
Total liabilities134,639124,089
Shareholders' equity
Share capital; $0.0001 par value; 500,000,000 shares authorized at December 31, 2023 and December 31, 2022; 27,834,908 outstanding at December 31, 2023 and 27,313,273 outstanding at December 31, 202233
Additional paid in capital152,768138,997
Treasury shares, at cost, 260,236 shares at December 31, 2023 and 209,461 shares at December 31, 2022(5,624)(4,922)
Accumulated (deficit) earnings(50,752)12,822
Accumulated other comprehensive loss(1,615)(1,527)
Total shareholders’ equity94,780145,373
TOTAL LIABILITIES AND EQUITY$229,419$269,462
CAMBIUM NETWORKS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
Cash flows from operating activities:
Net (loss) income$(39,008)$(26,200)$10,011
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization of software and intangible assets2,4142,2941,972
Amortization of debt issuance costs998175
Share-based compensation2,8112,8452,895
Deferred income taxes(2,744)3,612(3,202)
Provision for inventory excess and obsolescence10,9584,5772,024
Other(431)155(31)
Change in assets and liabilities:
Receivables9,39922,457(3,470)
Inventories1,928(1,993)(8,451)
Prepaid expenses2,224(772)(3,768)
Accounts payable(7,141)(5,156)3,114
Accrued employee compensation(145)(527)1,293
Other assets and liabilities13,410(1,619)1,564
Net cash (used in) provided by operating activities(6,226)(246)4,026
Cash flows from investing activities:
Purchase of property and equipment(1,228)(1,125)(1,332)
Purchase of software(1,118)(2,185)(1,230)
Net cash used in investing activities(2,346)(3,310)(2,562)
Cash flows from financing activities:
Repayment of term loan(656)(656)(657)
Payment of debt issuance costs(122)——
Issuance of ordinary shares under ESPP578—839
Taxes paid related to net share settlement of equity awards(48)(219)(226)
Proceeds from share option exercises—61,872
Net cash (used in) provided by financing activities(248)(869)1,828
Effect of exchange rate on cash1(24)11
Net (decrease) increase in cash(8,819)(4,449)3,303
Cash, beginning of period27,52931,97844,859
Cash, end of period$18,710$27,529$48,162
Supplemental disclosure of cash flow information:
Income taxes paid$964$1,120$438
Interest paid$486$474$310
CAMBIUM NETWORKS CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands)
(Unaudited)
REVENUES BY PRODUCT CATEGORY
Three Months Ended · Year Ended
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
Point-to-Multi-Point$22,575$23,596$29,656$95,197$114,941
Point-to-Point21,87415,80921,27680,76567,083
Enterprise(5,478)2,49931,99239,097109,844
Other1,2351,1421,5835,1365,031
Total Revenues$40,206$43,046$84,507$220,195$296,899
REVENUES BY REGION
Three Months Ended · Year Ended
December 31, 2023September 30, 2023December 31, 2022December 31, 2023December 31, 2022
North America$27,056$17,768$44,350$131,943$133,897
Europe, Middle East and Africa3,41814,27420,00744,16990,883
Caribbean and Latin America5,3035,7269,24420,72931,223
Asia Pacific4,4295,27810,90623,35440,896
Total Revenues$40,206$43,046$84,507$220,195$296,899
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.