Cambium Networks Reports Fourth Quarter and Full Year 2020 Financial Results
- Record revenues of
$82.8 million , increased 13% sequentially, up 29% year-over-year - Gross margin of 51.0%, non-GAAP(1) gross margin of 51.2%
- Record net income of
$10.5 million or$0.38 per diluted share, record non-GAAP(1) net income of$10.7 million or$0.38 per diluted share - Record Adjusted EBITDA(1) of
$13.9 million or 16.8% of revenues - Net cash provided by operating activities
$15.1 million
GAAP | Non-GAAP (1) | |||||||||||||||||||||||
(in millions, except percentages) | Q4 2020 | Q3 2020 | Q4 2019 | Q4 2020 | Q3 2020 | Q4 2019 | ||||||||||||||||||
Revenues | $ | 82.8 | $ | 73.0 | $ | 64.1 | $ | 82.8 | $ | 73.0 | $ | 64.1 | ||||||||||||
Gross margin | 51.0 | % | 49.4 | % | 52.0 | % | 51.2 | % | 49.7 | % | 52.4 | % | ||||||||||||
Operating margin | 13.8 | % | 10.0 | % | 2.9 | % | 16.0 | % | 14.6 | % | 6.6 | % | ||||||||||||
Adjusted EBITDA margin | 16.8 | % | 15.6 | % | 8.2 | % |
GAAP | Non-GAAP (1) | |||||||||||||||
(in millions, except percentages) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues | $ | 278.5 | $ | 267.0 | $ | 278.5 | $ | 267.0 | ||||||||
Gross margin | 50.1 | % | 49.1 | % | 50.3 | % | 49.5 | % | ||||||||
Operating margin | 8.6 | % | 0.5 | % | 12.0 | % | 8.3 | % | ||||||||
Adjusted EBITDA margin | 13.4 | % | 9.8 | % |
Refer to Supplemental Financial Information accompanying this press release for a reconciliation of GAAP to non-GAAP numbers and for reconciliation of adjusted EBITDA for the fourth quarter and full year ended
“Our fourth quarter record results reflect the strong demand for wireless broadband connectivity and the increased need for improved networking infrastructure,” said
Bhatnagar continued, “We benefited greatly during 2020 from the investments we have made over the past few years in fixed wireless infrastructure technologies including Point-to-Multi-Point with CBRS compatible products and new opportunities such as gigabit wireless solutions with our 60 GHz millimeter wave products, enterprise Wi-Fi 6 and wireless aware switching products. We have recently added a premium version of our software-as-a-service solution, the cloud-first cnMaestro X, allowing network operators to dramatically improve quality of service from a single-pane-of-glass in the cloud. We look forward to the addition of 5G technology with our 28 GHz millimeter wave products during calendar 2021, as we reach new customers and enter markets demanding higher performance.”
Revenues of
GAAP gross margin for the fourth quarter 2020 was 51.0%, compared to 52.0% for the fourth quarter 2019, and 49.4% for the third quarter 2020. GAAP operating income for the fourth quarter 2020 was
Non-GAAP gross margin for the fourth quarter 2020 was 51.2%, compared to 52.4% for the fourth quarter 2019, and 49.7% for the third quarter 2020. Non-GAAP operating income for the fourth quarter 2020 was
For full year 2020, revenues of
Cash provided by operating activities was
Fourth Quarter 2020 Highlights
- Record revenues of
$82.8 million , up 13% sequentially, an increase of 29% year-over-year. - Record GAAP net income of
$10.5 million or$0.38 per diluted share, record non-GAAP net income of$10.7 million or$0.38 per diluted share. - Record Adjusted EBITDA of
$13.9 million or 16.8% of revenues, compared to$5.3 million or 8.2% of revenues for the fourth quarter 2019, and$11.4 million or 15.6% of revenues for the third quarter 2020. - Net cash provided by operating activities
$15.1 million .
Full Year 2020 Highlights
- Revenues of
$278.5 million increased 4% compared to 2019. - Point-to-Multi-Point revenues of
$172.6 million increased 11% compared to 2019. - Enterprise Wi-Fi revenues of
$40.0 million increased 12% compared to 2019. - GAAP gross margin of 50.1%, up 100 basis points from 2019. Non-GAAP gross margin of 50.3%, increased 80 basis points from 2019.
- GAAP net income of
$18.6 million or$0.70 per diluted share, non-GAAP net income$24.1 million or$0.86 per diluted share. - Adjusted EBITDA of
$37.4 million or 13.4% of revenues, compared to$26.2 million or 9.8% of revenues for 2019, and represents a 43% increase for 2020. - Increased new channel partners by over 2,340 year-over-year, an increase of 34%.
- Devices under cnMaestro® Cloud management increased 40% compared to 2019.
First Quarter 2021 Financial Outlook
Taking into account our current visibility, the financial outlook as of
- Revenues between
$81.0-$85.0 million - GAAP gross margin between 49.3%-50.3%; and non-GAAP gross margin between 49.5%-50.5%
- GAAP operating income between
$9.7-$11.5 million ; and non-GAAP operating income between$11.6-$13.4 million - Interest expense, net of approximately
$1.4 million - GAAP net income between
$8.1-$9.6 million or between$0.29 and$0.34 per diluted share; and non-GAAP net income between$8.4-$9.7 million or between$0.30 and$0.34 per diluted share - Adjusted EBITDA between
$12.6-$14.5 million ; and adjusted EBITDA margin between 15.6%-17.0% - GAAP taxes between 2.0%-5.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%
- Approximately 28.3 million weighted average diluted shares outstanding
Cash requirements are expected to be as follows:
- Paydown of debt:
$2.5 million - Cash flow interest expense: approximately
$0.9 million - Capital expenditures:
$3.2-$3.6 million
Full Year 2021 Financial Outlook
- Revenues between
$317.5-$331.4 million , increasing between 14%-19% - Adjusted EBITDA margin between 15.0%-16.0%
Conference Call and Webcast
In addition,
About
Cautionary Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of the federal securities laws. 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 of our 2019 Form 10-K filed with the
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION | ||||||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||
Revenues | $ | 82,805 | $ | 72,971 | $ | 64,062 | $ | 278,459 | $ | 267,028 | ||||||||||
Cost of revenues | 40,568 | 36,902 | 30,767 | 139,049 | 135,799 | |||||||||||||||
Gross profit | 42,237 | 36,069 | 33,295 | 139,410 | 131,229 | |||||||||||||||
Gross margin | 51.0 | % | 49.4 | % | 52.0 | % | 50.1 | % | 49.1 | % | ||||||||||
Operating expenses | ||||||||||||||||||||
Research and development | 11,862 | 10,213 | 12,126 | 43,188 | 47,692 | |||||||||||||||
Sales and marketing | 10,152 | 8,293 | 11,445 | 36,784 | 46,253 | |||||||||||||||
General and administrative | 7,176 | 8,604 | 5,936 | 28,851 | 30,125 | |||||||||||||||
Depreciation and amortization | 1,601 | 1,643 | 1,901 | 6,639 | 5,858 | |||||||||||||||
Total operating expenses | 30,791 | 28,753 | 31,408 | 115,462 | 129,928 | |||||||||||||||
Operating income | 11,446 | 7,316 | 1,887 | 23,948 | 1,301 | |||||||||||||||
Operating margin | 13.8 | % | 10.0 | % | 2.9 | % | 8.6 | % | 0.5 | % | ||||||||||
Interest expense, net | 1,197 | 1,259 | 1,402 | 5,326 | 8,076 | |||||||||||||||
Other expense, net | 411 | 318 | 295 | 491 | 546 | |||||||||||||||
Income (loss) before income taxes | 9,838 | 5,739 | 190 | 18,131 | (7,321 | ) | ||||||||||||||
(Benefit) provision for income taxes | (668 | ) | 144 | 1,239 | (444 | ) | 10,280 | |||||||||||||
Net income (loss) | $ | 10,506 | $ | 5,595 | $ | (1,049 | ) | $ | 18,575 | $ | (17,601 | ) | ||||||||
Earnings (loss) per share | ||||||||||||||||||||
Basic | $ | 0.41 | $ | 0.22 | $ | (0.04 | ) | $ | 0.72 | $ | (0.89 | ) | ||||||||
Diluted | $ | 0.38 | $ | 0.21 | $ | (0.04 | ) | $ | 0.70 | $ | (0.89 | ) | ||||||||
Weighted-average number of shares outstanding to compute earnings (loss) per share | ||||||||||||||||||||
Basic | 25,775,954 | 25,691,357 | 25,670,170 | 25,707,092 | 19,741,764 | |||||||||||||||
Diluted | 27,582,283 | 26,346,730 | 25,670,170 | 26,403,112 | 19,741,764 | |||||||||||||||
Share-based compensation included in costs and expenses: | ||||||||||||||||||||
Cost of revenues | $ | 16 | $ | 16 | $ | 15 | $ | 67 | $ | 211 | ||||||||||
Research and development | 413 | 396 | 301 | 1,599 | 5,363 | |||||||||||||||
Sales and marketing | 254 | 251 | 204 | 980 | 4,185 | |||||||||||||||
General and administrative | 48 | 291 | 270 | 790 | 7,937 | |||||||||||||||
Total share-based compensation expense | $ | 731 | $ | 954 | $ | 790 | $ | 3,436 | $ | 17,696 | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands, except share information) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 62,472 | $ | 19,346 | ||||
Accounts receivable, net of allowance | 58,114 | 58,628 | ||||||
Inventories, net | 33,962 | 41,670 | ||||||
Recoverable income taxes | 1,420 | |||||||
Prepaid expenses | 4,143 | 5,323 | ||||||
Other current assets | 5,024 | 4,350 | ||||||
Total current assets | 165,135 | 129,317 | ||||||
Noncurrent assets | ||||||||
Property and equipment, net | 7,535 | 8,314 | ||||||
Software, net | 3,438 | 3,395 | ||||||
Operating lease assets | 5,083 | 6,872 | ||||||
Intangible assets, net | 12,895 | 15,100 | ||||||
9,842 | 8,552 | |||||||
Deferred tax assets, net | 1,537 | 929 | ||||||
Other noncurrent assets | 288 | |||||||
TOTAL ASSETS | $ | 205,753 | $ | 172,479 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 30,859 | $ | 25,214 | ||||
Accrued liabilities | 20,160 | 15,034 | ||||||
Employee compensation | 14,911 | 4,652 | ||||||
Current portion of long-term external debt, net | 29,201 | 9,454 | ||||||
Deferred revenues | 6,471 | 7,430 | ||||||
Other current liabilities | 6,009 | 6,084 | ||||||
Total current liabilities | 107,611 | 67,868 | ||||||
Noncurrent liabilities | ||||||||
Long-term external debt, net | 24,957 | 54,158 | ||||||
Deferred revenues | 4,448 | 4,852 | ||||||
Noncurrent operating lease liabilities | 3,332 | 5,335 | ||||||
Deferred tax liabilities, net | 9 | 337 | ||||||
Other noncurrent liabilities | 2,009 | |||||||
Total liabilities | 142,366 | 132,550 | ||||||
Shareholders' equity | ||||||||
Share capital; |
3 | 3 | ||||||
Additional paid in capital | 109,837 | 104,773 | ||||||
(1,090 | ) | (1,094 | ) | |||||
Accumulated deficit | (44,799 | ) | (63,374 | ) | ||||
Accumulated other comprehensive loss | (564 | ) | (379 | ) | ||||
Total shareholders equity | 63,387 | 39,929 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 205,753 | $ | 172,479 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | 10,506 | $ | 5,595 | $ | (1,049 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 1,763 | 1,807 | 2,046 | |||||||||
Amortization of debt issuance costs | 137 | 136 | 136 | |||||||||
Share-based compensation | 731 | 954 | 790 | |||||||||
Deferred income taxes | (388 | ) | (434 | ) | (97 | ) | ||||||
Provision for inventory excess and obsolescence | (37 | ) | 881 | (129 | ) | |||||||
Other | (31 | ) | 433 | 34 | ||||||||
Change in assets and liabilities: | ||||||||||||
Receivables | (4,766 | ) | (1,536 | ) | (31 | ) | ||||||
Inventories | (4,871 | ) | 156 | 1,028 | ||||||||
Accounts payable | 5,922 | 5,156 | 3,753 | |||||||||
Accrued employee compensation | 5,803 | 2,915 | (329 | ) | ||||||||
Other assets and liabilities | 313 | 322 | (7 | ) | ||||||||
Net cash provided by operating activities | 15,082 | 16,385 | 6,145 | |||||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property and equipment | (975 | ) | (890 | ) | (467 | ) | ||||||
Purchase of software | (738 | ) | (485 | ) | (72 | ) | ||||||
Cash paid for acquisition | (2,666 | ) | ||||||||||
Net cash used in investing activities | (1,713 | ) | (1,375 | ) | (3,205 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Repayment of term loan | (2,500 | ) | (2,500 | ) | (2,375 | ) | ||||||
Payment of deferred offering costs | (181 | ) | ||||||||||
Taxes paid related to net share settlement of equity awards | (27 | ) | (15 | ) | ||||||||
Proceeds from share option exercises | 1,465 | 163 | ||||||||||
Net cash used in financing activities | (1,062 | ) | (2,352 | ) | (2,556 | ) | ||||||
Effect of exchange rate on cash | 45 | 18 | 12 | |||||||||
Net increase in cash | 12,352 | 12,676 | 396 | |||||||||
Cash, beginning of period | 50,120 | 37,444 | 18,950 | |||||||||
Cash, end of period | $ | 62,472 | $ | 50,120 | $ | 19,346 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Income taxes paid | $ | 606 | $ | 1,205 | $ | 270 | ||||||
Interest paid | $ | 860 | $ | 925 | $ | 1,185 | ||||||
Use of non-GAAP (Adjusted) Financial Measures
In addition to providing financial measurements based on generally accepted accounting principles in
Accordingly, we believe that these financial measures reflect our ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business and provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. These non-GAAP measures eliminate the variability caused by share-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used, the variability caused by purchase accounting and provide a more relevant measure of operating performance. Although the calculation of non-GAAP financial measures may vary from company to company, our detailed presentation may facilitate analysis and comparison of our operating results by management and investors with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results in their public disclosures. These non-GAAP financial measures are discussed below.
Adjusted EBITDA is defined as net income as reported in our consolidated statements of income excluding the impact of (i) interest expense (income), net; (ii) income tax provision (benefit); (iii) depreciation and amortization expense; (iv) nonrecurring legal expenses, (v) share-based compensation expense, (vi) secondary offering expenses, (vii) one-time acquisition costs, (viii) restructuring expenses, (ix) sponsor management fees associated with advisory services, and non-recurring legal expenses. EBITDA is widely used by securities analysts, investors and other interested parties to evaluate the profitability of companies. EBITDA eliminates potential differences in performance caused by variations in capital structures (affecting net finance costs), tax positions (such as the availability of net operating losses against which to relieve taxable profits), the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense). We adjust EBITDA to also exclude nonrecurring legal expenses since this is one-time in nature and does not reflect our ongoing operations. We adjust EBITDA for share-based compensation expense which is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond
Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and non-GAAP operating margin, non-GAAP effective tax rate and non-GAAP net income are used as a supplement to our unaudited condensed consolidated financial statements presented in accordance with GAAP. We believe these non-GAAP measures are the most meaningful for period-to-period comparisons because they exclude the impact of share-based compensation expense, amortization of acquired intangibles, and amortization of capitalized software costs as we do not consider these costs and expenses to be indicative of our ongoing operations.
Share-based compensation expense and associated employment taxes paid are excluded. Management may issue different types of awards, including share options, restricted share awards and restricted share units, as well as awards with performance or other market characteristics, and excludes the associated expense in this non-GAAP measure. Share-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond
Nonrecurring legal expenses include settlements of existing or threatened litigation. Secondary offering expenses were incurred by
Amortization of acquired intangibles includes customer relationships, unpatented technology, patents, software, and trademarks, and are excluded since these are not indicative of continuing operations.
Amortization of capitalized software costs include capitalized research and development activities amortized over their useful life and included in cost of revenues and are excluded since these are not indicative of continuing operations.
Acquisition and integration costs consist of legal and professional fees relating to the acquisition of
One-time charges associated with the completion of an acquisition including items such as contract termination costs, severance and other acquisition-related restructuring costs; costs incurred in connection with integration activities; and legal and accounting costs.
Restructuring expenses primarily consist of severance costs for employees which are not related to future operating expenses.
Our non-GAAP tax adjustments include the tax impacts from share-based compensation expense including excess or decremental tax benefits available to the company that are recorded when incurred, one-time and ongoing impacts from the company's valuation allowance recognized in the quarter ended
Non-GAAP fully weighted basic and diluted shares are shown as outstanding during the entire period presented and include dilutive shares, if their effect to earnings per share is dilutive. We also use non-GAAP fully weighted basic and diluted shares to provide more comparable per-share results across periods.
These non-GAAP financial measures do not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. There are limitations in the use of non-GAAP measures, because they do not include all the expenses that must be included under GAAP and because they involve the exercise of judgment concerning exclusions of items from the comparable non-GAAP financial measure. In addition, other companies may use other measures to evaluate their performance, or may calculate non-GAAP measures differently, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We present a “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” in the tables below.
The following table reconciles net income (loss) to Adjusted EBITDA, the most directly comparable financial measure, calculated and presented in accordance with GAAP (in thousands):
SUPPLEMENTAL SCHEDULE OF NON-GAAP ADJUSTED EBITDA | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||
Net income (loss) | $ | 10,506 | $ | 5,595 | $ | (1,049 | ) | $ | 18,575 | $ | (17,601 | ) | |||||||||
Interest expense, net | 1,197 | 1,259 | 1,402 | 5,326 | 8,076 | ||||||||||||||||
(Benefit) provision for income taxes | (668 | ) | 144 | 1,239 | (444 | ) | 10,280 | ||||||||||||||
Depreciation and amortization | 1,763 | 1,807 | 2,046 | 7,268 | 6,367 | ||||||||||||||||
EBITDA | 12,798 | 8,805 | 3,638 | 30,725 | 7,122 | ||||||||||||||||
Share-based compensation | 731 | 954 | 915 | 3,436 | 17,959 | ||||||||||||||||
Secondary offering expenses | 381 | 381 | |||||||||||||||||||
Nonrecurring legal expenses | 1,625 | 1,625 | |||||||||||||||||||
Sponsor management fee | 250 | ||||||||||||||||||||
74 | 30 | 242 | |||||||||||||||||||
Restructuring expense | 19 | 644 | 1,180 | 644 | |||||||||||||||||
Adjusted EBITDA | $ | 13,910 | $ | 11,403 | $ | 5,271 | $ | 37,377 | $ | 26,217 | |||||||||||
Adjusted EBITDA Margin | 16.8 | % | 15.6 | % | 8.2 | % | 13.4 | % | 9.8 | % | |||||||||||
The following table reconciles all other GAAP to non-GAAP financial measures (in thousands):
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
GAAP gross profit | $ | 42,237 | $ | 36,069 | $ | 33,295 | $ | 139,410 | $ | 131,229 | ||||||||||
Share-based compensation expense | 16 | 16 | 15 | 67 | 211 | |||||||||||||||
Amortization of capitalized software costs | 163 | 163 | 145 | 629 | 509 | |||||||||||||||
Restructuring expense | 117 | 117 | ||||||||||||||||||
Non-GAAP gross profit | $ | 42,416 | $ | 36,248 | $ | 33,572 | $ | 140,106 | $ | 132,066 | ||||||||||
Non-GAAP gross margin | 51.2 | % | 49.7 | % | 52.4 | % | 50.3 | % | 49.5 | % | ||||||||||
GAAP research and development expense | $ | 11,862 | $ | 10,213 | $ | 12,126 | $ | 43,188 | $ | 47,692 | ||||||||||
Share-based compensation expense | 413 | 396 | 426 | 1,599 | 5,626 | |||||||||||||||
Restructuring expense | 19 | 131 | 653 | 131 | ||||||||||||||||
Non-GAAP research and development expense | $ | 11,449 | $ | 9,798 | $ | 11,569 | $ | 40,936 | $ | 41,935 | ||||||||||
GAAP sales and marketing expense | $ | 10,152 | $ | 8,293 | $ | 11,445 | $ | 36,784 | $ | 46,253 | ||||||||||
Share-based compensation expense | 254 | 251 | 204 | 980 | 4,185 | |||||||||||||||
Restructuring expense | 362 | 504 | 362 | |||||||||||||||||
Non-GAAP sales and marketing expense | $ | 9,898 | $ | 8,042 | $ | 10,879 | $ | 35,300 | $ | 41,706 | ||||||||||
GAAP general and administrative expense | $ | 7,176 | $ | 8,604 | $ | 5,936 | $ | 28,851 | $ | 30,125 | ||||||||||
Share-based compensation expense | 48 | 291 | 270 | 790 | 7,937 | |||||||||||||||
Secondary offering expenses | 381 | 381 | ||||||||||||||||||
Nonrecurring legal expenses | 1,625 | 1,625 | ||||||||||||||||||
74 | 30 | 242 | ||||||||||||||||||
Restructuring expense | 34 | 23 | 34 | |||||||||||||||||
Non-GAAP general and administrative expense | $ | 6,747 | $ | 6,688 | $ | 5,558 | $ | 26,002 | $ | 21,912 | ||||||||||
GAAP depreciation and amortization | $ | 1,601 | $ | 1,643 | $ | 1,901 | $ | 6,639 | $ | 5,858 | ||||||||||
Amortization of acquired intangibles | 552 | 551 | 593 | 2,205 | 1,603 | |||||||||||||||
Non-GAAP depreciation and amortization | $ | 1,049 | $ | 1,092 | $ | 1,308 | $ | 4,434 | $ | 4,255 | ||||||||||
GAAP operating income | $ | 11,446 | $ | 7,316 | $ | 1,887 | $ | 23,948 | $ | 1,301 | ||||||||||
Share-based compensation expense | 731 | 954 | 915 | 3,436 | 17,959 | |||||||||||||||
Secondary offering expenses | 381 | 381 | ||||||||||||||||||
Nonrecurring legal expenses | 1,625 | 1,625 | ||||||||||||||||||
Amortization of capitalized software costs | 163 | 163 | 145 | 629 | 509 | |||||||||||||||
Amortization of acquired intangibles | 552 | 551 | 593 | 2,205 | 1,603 | |||||||||||||||
74 | 30 | 242 | ||||||||||||||||||
Restructuring expense | 19 | 644 | 1,180 | 644 | ||||||||||||||||
Non-GAAP operating income | $ | 13,273 | $ | 10,628 | $ | 4,258 | $ | 33,434 | $ | 22,258 | ||||||||||
GAAP pre-tax income | $ | 9,838 | $ | 5,739 | $ | 190 | $ | 18,131 | $ | (7,321 | ) | |||||||||
Share-based compensation expense | 731 | 954 | 915 | 3,436 | 17,959 | |||||||||||||||
Secondary offering expenses | 381 | 381 | ||||||||||||||||||
Nonrecurring legal expenses | 1,625 | 1,625 | ||||||||||||||||||
Amortization of capitalized software costs | 163 | 163 | 145 | 629 | 509 | |||||||||||||||
Amortization of acquired intangibles | 552 | 551 | 593 | 2,205 | 1,603 | |||||||||||||||
74 | 30 | 242 | ||||||||||||||||||
Write-down of debt issuance costs upon prepayment of debt | 527 | |||||||||||||||||||
Restructuring expense | 19 | 644 | 1,180 | 644 | ||||||||||||||||
Non-GAAP pre-tax income | $ | 11,665 | $ | 9,051 | $ | 2,561 | $ | 27,617 | $ | 14,163 | ||||||||||
GAAP (benefit) provision for income taxes | $ | (668 | ) | $ | 144 | $ | 1,239 | $ | (444 | ) | $ | 10,280 | ||||||||
Valuation allowance impacts | (352 | ) | (470 | ) | 1,361 | (1,226 | ) | 9,599 | ||||||||||||
Tax rate change | (925 | ) | (925 | ) | ||||||||||||||||
Tax impacts of share vesting | 277 | 3 | 2,807 | |||||||||||||||||
Tax effect of Non-GAAP adjustments, using non-GAAP ETR | (365 | ) | (662 | ) | (688 | ) | (1,897 | ) | (4,295 | ) | ||||||||||
All other discrete items | 61 | 85 | ||||||||||||||||||
Non-GAAP provision for income taxes | $ | 974 | $ | 1,276 | $ | 289 | $ | 3,540 | $ | 2,085 | ||||||||||
Non-GAAP ETR | 8.4 | % | 14.1 | % | 11.3 | % | 12.8 | % | 14.7 | % | ||||||||||
GAAP net income | $ | 10,506 | $ | 5,595 | $ | (1,049 | ) | $ | 18,575 | $ | (17,601 | ) | ||||||||
Share-based compensation expense | 731 | 954 | 915 | 3,436 | 17,959 | |||||||||||||||
Secondary offering expenses | 381 | 381 | ||||||||||||||||||
Nonrecurring legal expenses | 1,625 | 1,625 | ||||||||||||||||||
Amortization of capitalized software costs | 163 | 163 | 145 | 629 | 509 | |||||||||||||||
Amortization of acquired intangibles | 552 | 551 | 593 | 2,205 | 1,603 | |||||||||||||||
74 | 30 | 242 | ||||||||||||||||||
Write-down of debt issuance costs upon prepayment of debt | 527 | |||||||||||||||||||
Restructuring expense | 19 | 644 | 1,180 | 644 | ||||||||||||||||
Non-GAAP adjustments to tax | (1,277 | ) | (470 | ) | 1,638 | (2,087 | ) | 12,490 | ||||||||||||
Tax effect of Non-GAAP adjustments, using non-GAAP ETR | (365 | ) | (662 | ) | (688 | ) | (1,897 | ) | (4,295 | ) | ||||||||||
Non-GAAP net income | $ | 10,691 | $ | 7,775 | $ | 2,272 | $ | 24,077 | $ | 12,078 | ||||||||||
Non-GAAP fully weighted basic shares | 26,035 | 25,701 | 25,673 | 26,035 | 25,673 | |||||||||||||||
Non-GAAP fully weighted diluted shares | 27,934 | 26,356 | 25,673 | 27,934 | 25,673 | |||||||||||||||
Non-GAAP net income per Non-GAAP basic share | $ | 0.41 | $ | 0.30 | $ | 0.09 | $ | 0.92 | $ | 0.47 | ||||||||||
Non-GAAP net income per Non-GAAP diluted share | $ | 0.38 | $ | 0.29 | $ | 0.09 | $ | 0.86 | $ | 0.47 |
Investor Inquiries:
Sr. Director Investor & Industry Analyst Relations
+1 (847) 264-2188
peter.schuman@cambiumnetworks.com
Source: Cambium Networks