ROLLING
MEADOWS, Ill., Jan. 18,
2024 /PRNewswire/ -- Cambium Networks Corporation
("Cambium Networks") (NASDAQ: CMBM), a leading provider of wireless
networking infrastructure solutions, today announced preliminary
revenues for the fourth quarter 2023 ended December 31, 2023. Cambium plans to report full
financial results on Thursday, Feb. 15,
2024.
Cambium Networks expects revenues of approximately $40.0 million compared to the previous outlook of
$45.0-$50.0
million provided on Nov. 2,
2023. While the company shipped $51
million in product revenues during the quarter, this was
offset in part by an $11 million
reduction to revenues as the result of incentives provided to
distributors during the fourth quarter of 2023, offering aggressive
Enterprise product discounts to clear excess channel inventories.
The company records revenues from sell-in to distributors.
Point-of-sale revenues—representing the sales of Cambium's products
out of the distribution channel as reported by Cambium's
distributors—are significantly higher for the fourth quarter 2023
than Cambium's reported revenues, indicating a continued decrease
in channel inventories.
The outlook for Cambium Networks' fourth quarter 2023 net loss
and loss per share are expected to be below the low end of the
previous GAAP and non-GAAP ranges. The gross margin will also be
below the low end of the range due to increased excess and obsolete
inventory reserves. Cash is expected to be approximately
$18 million; and while the company
did negotiate new interim debt covenants during Q4'23, it did not
draw on any of its $45 million
revolving credit line with Bank of America during the fourth
quarter 2023.
The company expect full year 2024 revenues of between
$215 million to $245 million.
In addition, Cambium announced today that Andrew Bronstein, Cambium's chief financial
officer, will be leaving the company effective February 2,
2024, to pursue an outside opportunity. Cambium is working to find
a permanent replacement. In the interim, John Becerril, Cambium's chief accounting
officer, will assume the responsibilities as acting chief financial
officer. Andrew has agreed to assist in the transition to a new
chief financial officer following his departure.
"I want to thank Andrew for his time and dedication to Cambium
over his tenure and for his assistance in my onboarding over the
past six months where we have developed a strong relationship,"
said Morgan Kurk, president and CEO.
"Andrew's leadership, combined with a number of financial and
operational improvements, leave Cambium stronger than it was when
he joined in April 2022."
Conference Call and Webcast
Cambium Networks will host a live webcast and conference call to
discuss its financial results and Q&A at 4:30 p.m. ET, on Thursday,
Feb. 15, 2024. On the call will be Morgan Kurk, president and CEO, and John Becerril, interim CFO. The call will be
moderated by Peter Schuman, VP of
investor & industry analyst relations.
To join the financial results live webcast and view additional
materials which will be posted to the investor website, listeners
should access the investor page of Cambium Networks website
https://investors.cambiumnetworks.com/. Following the live
webcast, a replay will be available in the event archives at the
same web address for a period of one year.
To access the live conference call by phone, listeners
should register in advance at
https://edge.media-server.com/mmc/p/bw2siubc. Upon
registration, telephone participants will receive a confirmation
email detailing how to join the conference call, including the
dial-in number and a unique passcode.
About Cambium Networks
Cambium Networks enables
service providers, enterprises, industrial organizations, and
governments to deliver exceptional digital experiences, and device
connectivity, with compelling economics. Our ONE Network platform
simplifies management of Cambium Networks wired and wireless
broadband and network edge technologies. Our customers can focus
more resources on managing their business rather than the network.
We deliver connectivity that just
works.
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 third quarter
revenues, net income, cash and available borrowings. 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.
In some cases, you can identify forward-looking statements by
terms such as "may," "should," "expects," "plans," "anticipates,"
"could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential" or "continue" or
the negative of these terms or other similar expressions. 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 and
elsewhere in our 2022 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 27, 2023, and our Quarterly Reports on
Form 10-Q 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 assumed 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; uncertainties with respect to the timing of
new government orders, the velocity at which our distributors will
sell down current inventories of our products and macro-economic
conditions in our target markets; our inability to predict and
respond to emerging technological trends and network operators'
changing needs; the impact of the tensions between Russia and Ukraine, which may disrupt our sales and
product design activities in the region; 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; our or
our distributors' and channel partners' inability to attract new
network operators or sell additional products to network operators
that currently use our products; our channel partners' inability to
effectively manage inventory of our products, timely resell our
products or estimate expected future demand; our inability to
manage our growth and expand our operations; unpredictability of
sales and revenues due to lengthy sales cycles; our inability to
maintain an effective system of internal controls, produce timely
and accurate financial statements or comply with applicable
regulations; our reliance on the availability of third-party
licenses; risks associated with international sales and operations;
current or future unfavorable economic conditions, both
domestically and in foreign markets and political tensions among
the U.S. and China; and our
inability to obtain intellectual property protections for our
products.
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.
Contacts:
Investors:
Peter Schuman, IRC
VP Investor & Industry Analyst Relations
Cambium Networks
+1 (847) 264-2188
Peter.schuman@cambiumnetworks.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cambium-networks-corporation-announces-preliminary-fourth-quarter-2023-revenues-reporting-date-and-cfo-transition-302038763.html
SOURCE Cambium Networks