Cambium Networks Reports Third Quarter 2019 Financial Results
- Revenues of
$65.7 million , up 11% year-over-year - Wi-Fi revenues increased 132% year-over-year, up 20% sequentially
- Gross margin of 48.4%, non-GAAP gross margin of 48.7%
- Net income of
$2.0 million or$0.08 per diluted share, non-GAAP net income of$3.7 million or$0.15 per diluted share - Adjusted EBITDA(1) of
$6.8 million or 10.3% of revenues
GAAP | Non-GAAP (1) | ||||||||||||||||||||||
(in millions, except percentages) | Q3 2019 | Q2 2019 | Q3 2018 | Q3 2019 | Q2 2019 | Q3 2018 | |||||||||||||||||
Revenues | $ | 65.7 | $ | 69.2 | $ | 59.0 | $ | 65.7 | $ | 69.2 | $ | 59.0 | |||||||||||
Gross margin | 48.4 | % | 49.6 | % | 46.6 | % | 48.7 | % | 50.1 | % | 46.8 | % | |||||||||||
Operating margin | 6.3 | % | (13.6 | )% | (1.8 | )% | 8.8 | % | 10.3 | % | 0.4 | % | |||||||||||
Adjusted EBITDA margin | 10.3 | % | 11.8 | % | 2.5 | % | |||||||||||||||||
[1] 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 third quarter of 2019.
“We are pleased that our profitability remained strong as a result of improved operating efficiencies and tighter cost controls,” said
Bhatnagar continued, “Cambium Networks continues to broaden our technology portfolio and remains well positioned for growth as a leader in fixed wireless broadband infrastructure and cloud powered enterprise Wi-Fi solutions. We will continue to capitalize on the strength of our technologies, while focusing on improving profitability through cost reduction initiatives and disciplined discretionary spending.”
Revenues of
Non-GAAP gross margin for the third quarter 2019 was 48.7%, compared to 46.8% for the third quarter 2018, and 50.1% for the second quarter 2019. Non-GAAP operating income for the third quarter 2019 was
For the third quarter 2019, adjusted EBITDA was
Cash used in operating activities was
Third Quarter 2019 Highlights
- Revenues of
$65.7 million increased 11% year-over-year. - GAAP gross margin of 48.4%, up 180 basis points from 46.6% for the third quarter 2018, and down 120 basis points compared to 49.6% for the second quarter 2019.
- Non-GAAP gross margin of 48.7%, up 190 basis points from 46.8% for the third quarter 2018, and down 140 basis points compared to 50.1% for the second quarter 2019.
- GAAP net income of
$2.0 million or$0.08 per diluted share, non-GAAP net income$3.7 million or$0.15 per diluted share. - Adjusted EBITDA of
$6.8 million or 10.3% of revenues, compared to$1.5 million or 2.5% of revenues for the third quarter 2018, and$8.1 million or 11.8% of revenues for the second quarter 2019. - Increased new channel partners by over 1,450 year-over-year, an increase of 29%.
- Announced new cloud managed cnPilot indoor and outdoor Wi-Fi solutions (cnPilot e505, cnPilot e510 and cnPilot e425H).
- Announced Citizens Broadband Radio Service (CBRS) wireless broadband connectivity solution on the PMP 450 product line. Demonstrated CBRS capabilities with Initial Commercial Deployment (ICD) with four network operators, utilizing both
Federated Wireless andGoogle for spectrum access system (SAS) services inSeptember 2019 . - Inaugural inclusion in both the 2019 Gartner Magic Quadrant for the Wired and Wireless LAN Access Infrastructure and the 2019 Forrester New Wave report for wireless solutions.
- Awarded manufacturer of the year for 2019 as voted by the members of the
North America Wireless Internet Service Providers Association (WISPA).
Fourth Quarter 2019 Financial Outlook
Taking into account the company’s current visibility, and incorporating the acquisition of Xirrus (excluding any one-time charges affecting the acquisition), the financial outlook as of
- GAAP revenues between
$63.0-$66.0 million - GAAP gross margin between 48.0%-49.4%; and non-GAAP gross margin between 48.2%-49.5%
- GAAP operating income between
$1.2-$2.4 million ; and non-GAAP operating income between$2.4-$3.6 million - GAAP (net loss)/net income between
($1.0)-$0.0 million or between($0.04) and$0.00 per diluted share; and non-GAAP net income between$0.8-$1.7 million or between$0.03 and $0.07 per diluted share - Adjusted EBITDA between
$3.4-$4.5 million ; and adjusted EBITDA margin between 5.3%-6.9% - GAAP taxes between 19.0%-21.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%
- Approximately 25.6 million weighted average diluted shares outstanding
Cash requirements are expected to be as follows:
- Paydown of debt:
$2.4 million - Interest expense: approximately
$1.4 million - Capital expenditures:
$1.0-$1.1 million
Conference Call and Webcast
In addition, on
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 registration statement on Form S-1 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.
CAMBIUM NETWORKS CORPORATION | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATION | |||||||||||
(In thousands, except share and per share amounts) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||
Revenues | $ | 65,703 | $ | 69,151 | $ | 58,981 | |||||
Cost of revenues | 33,871 | 34,839 | 31,469 | ||||||||
Gross profit | 31,832 | 34,312 | 27,512 | ||||||||
Gross margin | 48.4 | % | 49.6 | % | 46.6 | % | |||||
Operating expenses | |||||||||||
Research and development | 9,895 | 15,189 | 9,810 | ||||||||
Sales and marketing | 10,363 | 14,227 | 10,805 | ||||||||
General and administrative | 5,996 | 13,063 | 5,520 | ||||||||
Depreciation and amortization | 1,449 | 1,227 | 2,448 | ||||||||
Total operating expenses | 27,703 | 43,706 | 28,583 | ||||||||
Operating income (loss) | 4,129 | (9,394 | ) | (1,071 | ) | ||||||
Operating margin | 6.3 | % | (13.6 | )% | (1.8 | )% | |||||
Interest expense | 2,105 | 2,301 | 2,033 | ||||||||
Other expense | 61 | 56 | 116 | ||||||||
Income (loss) before income taxes | 1,963 | (11,751 | ) | (3,220 | ) | ||||||
Provision (benefit) for income taxes | 3 | 8,623 | (665 | ) | |||||||
Net income (loss) | $ | 1,960 | $ | (20,374 | ) | $ | (2,555 | ) | |||
Earnings (loss) per share | |||||||||||
Basic and diluted | $ | 0.08 | $ | (1.47 | ) | $ | (0.19 | ) | |||
Weighted-average number of shares outstanding to compute net earnings (loss) per share | |||||||||||
Basic and diluted | 25,634,417 | 13,865,111 | 13,600,411 | ||||||||
Share-based compensation included in costs and expenses: | |||||||||||
Cost of revenues | $ | 14 | $ | 182 | $ | — | |||||
Research and development | 199 | 4,863 | — | ||||||||
Sales and marketing | 374 | 3,607 | — | ||||||||
General and administrative | 241 | 7,426 | — | ||||||||
Total share-based compensation expense | $ | 828 | $ | 16,078 | $ | — | |||||
CAMBIUM NETWORKS CORPORATION | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands) | |||||||
September 30, 2019 | December 31, 2018 | ||||||
ASSETS | (Unaudited) | ||||||
Current assets | |||||||
Cash | $ | 18,950 | $ | 4,441 | |||
Accounts receivable, net of allowance | 59,824 | 60,389 | |||||
Inventories, net | 41,933 | 30,710 | |||||
Recoverable income taxes | 527 | 679 | |||||
Prepaid expenses | 6,301 | 3,465 | |||||
Other current assets | 4,516 | 5,889 | |||||
Total current assets | 132,051 | 105,573 | |||||
Noncurrent assets | |||||||
Property and equipment, net | 8,257 | 7,965 | |||||
Software, net | 4,084 | 3,944 | |||||
Operating lease assets | 6,957 | — | |||||
Intangible assets, net | 15,693 | 8,493 | |||||
Goodwill | 8,963 | 8,060 | |||||
Deferred tax assets, net | 496 | 8,022 | |||||
TOTAL ASSETS | $ | 176,501 | $ | 142,057 | |||
LIABILITIES AND EQUITY (DEFICIT) | |||||||
Current liabilities | |||||||
Accounts payable | $ | 20,894 | $ | 23,710 | |||
Accrued liabilities | 20,425 | 18,263 | |||||
Employee compensation | 4,961 | 4,377 | |||||
Current portion of long-term external debt | 9,329 | 8,836 | |||||
Payable to Sponsor | — | 5,582 | |||||
Deferred revenues | 7,557 | 2,770 | |||||
Other current liabilities | 5,870 | 2,761 | |||||
Total current liabilities | 69,036 | 66,299 | |||||
Noncurrent liabilities | |||||||
Long-term external debt | 56,522 | 94,183 | |||||
Deferred revenues | 5,184 | 1,541 | |||||
Noncurrent operating lease liabilities | 5,544 | — | |||||
Other noncurrent liabilities | — | 605 | |||||
Total liabilities | 136,286 | 162,628 | |||||
Shareholders' equity (deficit) | |||||||
Share capital; $0.0001 par value; 500,000,000 shares authorized at December 31, 2018 and September 30, 2019; 77,179 shares issued and outstanding at December 31, 2018 and 25,725,542 issued and 25,634,417 outstanding at September 30, 2019 | 3 | — | |||||
Additional paid in capital | 103,992 | 772 | |||||
Capital contribution | — | 24,651 | |||||
Treasury shares, at cost, 0 shares at December 31, 2018 and 91,125 shares at September 30, 2019 | (1,094 | ) | — | ||||
Accumulated deficit | (62,325 | ) | (45,773 | ) | |||
Accumulated other comprehensive loss | (361 | ) | (221 | ) | |||
Total shareholders’ equity (deficit) | 40,215 | (20,571 | ) | ||||
TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | 176,501 | $ | 142,057 | |||
CAMBIUM NETWORKS CORPORATION | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 1,960 | $ | (20,374 | ) | $ | (2,555 | ) | |||
Adjustments to reconcile net income (loss) to net cash (used in ) provided by operating activities: | |||||||||||
Depreciation and amortization | 1,568 | 1,393 | 2,529 | ||||||||
Amortization of debt issuance costs | 663 | 177 | 142 | ||||||||
Share-based compensation | 828 | 16,078 | - | ||||||||
Deferred income taxes | (9 | ) | 7,198 | (1,106 | ) | ||||||
Other | (31 | ) | (429 | ) | 265 | ||||||
Change in assets and liabilities: | |||||||||||
Receivables | 2,423 | 1,717 | (1,343 | ) | |||||||
Inventories | (1,977 | ) | (4,034 | ) | (3,996 | ) | |||||
Accounts payable | (6,223 | ) | 2,736 | 4,776 | |||||||
Accrued employee compensation | (1,394 | ) | 346 | 902 | |||||||
Other assets and liabilities | (9,609 | ) | 1,146 | 3,546 | |||||||
Net cash (used in) provided by operating activities | (11,801 | ) | 5,954 | 3,160 | |||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (828 | ) | (579 | ) | (1,343 | ) | |||||
Purchase of software | (157 | ) | (332 | ) | (467 | ) | |||||
Cash paid for acquisition | (2,000 | ) | — | — | |||||||
Net cash used in investing activities | (2,985 | ) | (911 | ) | (1,810 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of term loan | — | — | — | ||||||||
Proceeds from issuance of revolver debt | — | — | — | ||||||||
Repayment of term loan | (23,087 | ) | (2,375 | ) | (1,125 | ) | |||||
Repayment of revolver debt | (10,000 | ) | — | — | |||||||
Payment of debt issuance costs | (128 | ) | (208 | ) | — | ||||||
Proceeds from initial public offering, net of underwriters commission and fees and payment of deferred offering costs | (3,428 | ) | 64,981 | — | |||||||
Taxes paid related to net share settlement of equity awards | (802 | ) | — | — | |||||||
Net cash (used in) provided by financing activities | (37,445 | ) | 62,398 | (1,125 | ) | ||||||
Effect of exchange rate on cash | (65 | ) | 4 | (2 | ) | ||||||
Net (decrease) increase in cash | (52,296 | ) | 67,445 | 223 | |||||||
Cash, beginning of period | 71,246 | 3,801 | 3,932 | ||||||||
Cash, end of period | $ | 18,950 | $ | 71,246 | $ | 4,155 | |||||
Supplemental disclosure of cash flow information: | |||||||||||
Income taxes paid | $ | 1,076 | $ | 155 | $ | 293 | |||||
Interest paid | $ | 1,371 | $ | 1,949 | $ | 1,778 | |||||
Significant non-cash activities: | |||||||||||
Issuance of shares for unreturned capital and accumulated yield | $ | — | $ | 49,252 | $ | — | |||||
Deferred offering costs included in accrued liabilities | $ | 179 | $ | 3,246 | $ | — | |||||
CAMBIUM NETWORKS CORPORATION | ||||||||
SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
REVENUES BY PRODUCT TYPE | ||||||||
Three Months Ended | ||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||
Point-to-Multi-Point | $ | 38,856 | $ | 41,730 | $ | 33,024 | ||
Point-to-Point | 15,976 | 17,830 | 20,566 | |||||
Wi-Fi | 10,141 | 8,430 | 4,370 | |||||
Other | 730 | 1,161 | 1,021 | |||||
Total Revenues | $ | 65,703 | $ | 69,151 | $ | 58,981 | ||
REVENUES BY REGION | ||||||||
Three Months Ended | ||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||
North America | $ | 29,032 | $ | 30,056 | $ | 29,104 | ||
Europe, Middle East and Africa | 21,749 | 22,994 | 17,082 | |||||
Caribbean and Latin America | 8,008 | 8,420 | 6,624 | |||||
Asia Pacific | 6,914 | 7,681 | 6,171 | |||||
Total Revenues | $ | 65,703 | $ | 69,151 | $ | 58,981 | ||
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. Excluding 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) Sponsor fees associated with advisory services, and (v) share-based compensation expense. 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 Sponsor fees, in order to eliminate the impact on reported performance caused by these fees, which are related to our past ownership structure. 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, and non-GAAP net income are used as a supplement to our unaudited 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. 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
Cambium Networks' control while the associated employment taxes are cash-based expenses that vary in amount from period-to-period and are dependent on market forces as well as jurisdictional tax regulations that are often beyondCambium Networks' control. In addition, in the three-month period endedJune 30, 2019 ,Cambium Networks incurred a one-time share-based compensation expense of$16.1 million in connection with (i) the recognition of deferred share-based compensation expense and (ii) the issuance of 2,172,000 share options, each upon the completion of our initial public offering as well as employment taxes paid byCambium Networks in conjunction with the settlement of deferred share-based compensation into ordinary shares. - Amortization of acquired intangibles includes customer relationships, unpatented technology, patents, software, and trademarks.
- Amortization of capitalized software costs include capitalized research and development activities amortized over their useful life and included in cost of revenues.
- Debt amortization costs associated with the extinguishment of long-term debt.
Cambium Networks excludes these expenses from non-GAAP income since they result from an event that is outside the ordinary course of continuing operations. - Acquisition and integration costs consist of legal and professional fees relations to the acquisition of Xirrus.
Cambium Networks excludes these expenses since they result from an event that is outside the ordinary course of continuing operations. - 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.
Cambium Networks excludes these expenses since they result from an event that is outside the ordinary course of continuing operations. - Restructuring expenses primarily consist of severance costs for employees which are not related to future operating expenses.
Cambium Networks excludes these expenses since they result from an event that is outside the ordinary course of continuing operations. Excluding these charges permits more accurate comparisons ofCambium Networks' ongoing business results.
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):
CAMBIUM NETWORKS CORPORATION | |||||||||||
SUPPLEMENTAL SCHEDULE OF NON-GAAP ADJUSTED EBITDA | |||||||||||
(In thousands) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||
Net income (loss) | $ | 1,960 | $ | (20,374 | ) | $ | (2,555 | ) | |||
Interest expense, net | 2,105 | 2,301 | 2,033 | ||||||||
Provision (benefit) for income taxes | 3 | 8,623 | (665 | ) | |||||||
Depreciation and amortization | 1,568 | 1,393 | 2,528 | ||||||||
EBITDA | 5,636 | (8,057 | ) | 1,341 | |||||||
Share-based compensation | 966 | 16,078 | — | ||||||||
Sponsor management fee | — | 125 | 125 | ||||||||
Xirrus one-time acquisition charges | 168 | — | — | ||||||||
Adjusted EBITDA | $ | 6,770 | $ | 8,146 | $ | 1,466 | |||||
Adjusted EBITDA Margin | 10.3 | % | 11.8 | % | 2.5 | % | |||||
The following table reconciles all other GAAP to non-GAAP financial measures (in thousands):
CAMBIUM NETWORKS CORPORATION | ||||||||||||
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES | ||||||||||||
(in thousands, except per share data) | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||||||
GAAP gross profit | $ | 31,832 | $ | 34,312 | $ | 27,512 | ||||||
Share-based compensation expense | 14 | 182 | — | |||||||||
Amortization of capitalized software costs | 119 | 166 | 80 | |||||||||
Non-GAAP gross profit | $ | 31,965 | $ | 34,660 | $ | 27,592 | ||||||
Non-GAAP gross margin | 48.7 | % | 50.1 | % | 46.8 | % | ||||||
GAAP research and development expense | $ | 9,895 | $ | 15,189 | $ | 9,810 | ||||||
Share-based compensation expense | 337 | 4,863 | — | |||||||||
Non-GAAP research and development expense | $ | 9,558 | $ | 10,326 | $ | 9,810 | ||||||
GAAP sales and marketing expense | $ | 10,363 | $ | 14,227 | $ | 10,805 | ||||||
Share-based compensation expense | 374 | 3,607 | — | |||||||||
Non-GAAP sales and marketing expense | $ | 9,989 | $ | 10,620 | $ | 10,805 | ||||||
GAAP general and administrative expense | $ | 5,996 | $ | 13,063 | $ | 5,520 | ||||||
Share-based compensation expense | 241 | 7,426 | — | |||||||||
Xirrus one-time acquisition charges | 168 | — | — | |||||||||
Non-GAAP general and administrative expense | $ | 5,587 | $ | 5,637 | $ | 5,520 | ||||||
GAAP depreciation and amortization | $ | 1,449 | $ | 1,227 | $ | 2,448 | ||||||
Amortization of acquired intangibles | 424 | 293 | 1,201 | |||||||||
Non-GAAP depreciation and amortization | $ | 1,025 | $ | 934 | $ | 1,247 | ||||||
GAAP operating income (loss) | $ | 4,129 | $ | (9,394 | ) | $ | (1,071 | ) | ||||
Share-based compensation expense | 966 | 16,078 | — | |||||||||
Amortization of capitalized software costs | 119 | 166 | 80 | |||||||||
Amortization of acquired intangibles | 424 | 293 | 1,201 | |||||||||
Xirrus one-time acquisition charges | 168 | — | — | |||||||||
Non-GAAP operating income | $ | 5,806 | $ | 7,143 | $ | 210 | ||||||
GAAP pre-tax income (loss) | $ | 1,963 | $ | (11,751 | ) | $ | (3,220 | ) | ||||
Share-based compensation expense | 966 | 16,078 | — | |||||||||
Amortization of capitalized software costs | 119 | 166 | 80 | |||||||||
Amortization of acquired intangibles | 424 | 293 | 1,201 | |||||||||
Xirrus one-time acquisition charges | 168 | — | — | |||||||||
Write-down of debt issuance costs upon prepayment of debt | 527 | — | — | |||||||||
Non-GAAP pre-tax income (loss) | $ | 4,167 | $ | 4,786 | $ | (1,939 | ) | |||||
GAAP provision for income taxes | $ | 3 | $ | 8,623 | $ | (665 | ) | |||||
Valuation allowance impacts | — | 8,238 | — | |||||||||
Tax impacts of share vesting | — | 2,530 | — | |||||||||
Tax effect of share-based compensation expense, amortization of acquired intangibles, Xirrus one-time acquisition charges and write-down of debt issuance costs, using non-GAAP ETR | (511 | ) | (3,010 | ) | (299 | ) | ||||||
All other discrete items | 85 | (6 | ) | 87 | ||||||||
Non-GAAP provision (benefit) for income taxes | $ | 429 | $ | 871 | $ | (453 | ) | |||||
Non-GAAP ETR | 10.3 | % | 18.2 | % | 23.4 | % | ||||||
GAAP net income (loss) | $ | 1,960 | $ | (20,374 | ) | $ | (2,555 | ) | ||||
Share-based compensation expense | 966 | 16,078 | — | |||||||||
Amortization of capitalized software costs | 119 | 166 | 80 | |||||||||
Amortization of acquired intangibles | 424 | 293 | 1,201 | |||||||||
Xirrus one-time acquisition charges | 168 | — | — | |||||||||
Write-down of debt issuance costs upon prepayment of debt | 527 | — | — | |||||||||
Non-GAAP adjustments to tax | 85 | 10,761 | 87 | |||||||||
Tax effect of share-based compensation expense, amortization of acquired intangibles, Xirrus one-time acquisition charges and write-down of debt issuance costs, using non-GAAP ETR | (511 | ) | (3,010 | ) | (299 | ) | ||||||
Non-GAAP net income (loss) | $ | 3,738 | $ | 3,915 | $ | (1,486 | ) | |||||
Non-GAAP fully weighted basic and diluted shares | 25,634 | 25,632 | 13,600 | |||||||||
Non-GAAP net income (loss) per Non-GAAP fully weighted basic and diluted shares | $ | 0.15 | $ | 0.15 | $ | (0.11 | ) |
Investor Inquiries:
Sr. Director Investor Relations
+1 (847) 264-2188
peter.schuman@cambiumnetworks.com
Source: Cambium Networks