8-K
false0001738177CAMBIUM NETWORKS CORP00017381772023-02-162023-02-16

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 16, 2023

 

 

CAMBIUM NETWORKS CORPORATION

(Exact name of Registrant as Specified in Its Charter)

 

 

Cayman Islands

001-38952

00-0000000

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

c/o Cambium Networks, Inc.

3800 Golf Road, Suite 360

 

Rolling Meadows, Illinois

 

60008

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 345 943-3100

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Ordinary shares, $0.0001 par value

 

CMBM

 

Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


Item 2.02 Results of Operations and Financial Condition.

On February 16, 2023, Cambium Networks Corporation (the "Company") issued a press release announcing financial results for the three-month period and year ended December 31, 2022. The press release contains forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

The press release dated February 16, 2023 is furnished herewith as Exhibit 99.1. The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

Exhibit No.

 

Description

99.1

 

Press release dated February 16, 2023

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

CAMBIUM NETWORKS CORPORATION

 

 

 

 

Date:

February 16, 2023

By:

 /s/ Andrew P. Bronstein

 

 

Name:

Title:

Andrew P. Bronstein
Chief Financial Officer

 

 


EX-99

Exhibit 99.1

https://cdn.kscope.io/f1456307ecf9a3503881a9ecac0ee125-img178355216_0.jpg  

Cambium Networks Reports Fourth Quarter and Full Year 2022 Financial Results

Revenues of $84.5 million, increased 4% sequentially, and 7% year-over-year
North America revenues of $44.4 million, grew 47% sequentially, and increased 33% year-over-year
Gross margin of 49.0%, non-GAAP(1) gross margin of 49.6%
Operating income of $9.5 million, non-GAAP(1) operating income of $13.2 million
Net income of $10.0 million or $0.35 per diluted share, non-GAAP(1) net income of $10.3 million or $0.36 per diluted share
Adjusted EBITDA(1) of $14.3 million or 16.9% of revenues

ROLLING MEADOWS, Ill., Feb. 16, 2023 — Cambium Networks Corporation (“Cambium Networks”) (NASDAQ: CMBM), a leading provider of wireless networking infrastructure solutions, today announced financial results for the fourth quarter and full year 2022 ended December 31, 2022.

 

 

GAAP

 

 

Non-GAAP (1)

 

(in millions, except percentages)

 

Q4 2022

 

 

Q3 2022

 

 

Q4 2021

 

 

Q4 2022

 

 

Q3 2022

 

 

Q4 2021

 

Revenues

 

$

84.5

 

 

$

81.2

 

 

$

78.7

 

 

$

84.5

 

 

$

81.2

 

 

$

78.7

 

Gross margin

 

 

49.0

%

 

 

50.7

%

 

 

43.8

%

 

 

49.6

%

 

 

51.3

%

 

 

44.2

%

Operating margin

 

 

11.2

%

 

 

12.3

%

 

 

3.7

%

 

 

15.6

%

 

 

17.0

%

 

 

7.3

%

Net Income

 

$

10.0

 

 

$

9.4

 

 

$

1.4

 

 

$

10.3

 

 

$

11.3

 

 

$

4.4

 

Adjusted EBITDA margin

 

 

 

 

 

 

 

 

 

 

 

16.9

%

 

 

18.2

%

 

 

8.6

%

 

 

 

GAAP

 

 

Non-GAAP (1)

 

(in millions, except percentages)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

$

296.9

 

 

$

335.9

 

 

$

296.9

 

 

$

335.9

 

Gross margin

 

 

48.9

%

 

 

47.9

%

 

 

49.5

%

 

 

48.2

%

Operating margin

 

 

6.7

%

 

 

10.8

%

 

 

11.6

%

 

 

14.1

%

Net Income

 

$

20.2

 

 

$

37.4

 

 

$

26.9

 

 

$

35.6

 

Adjusted EBITDA margin

 

 

 

 

 

 

 

 

13.1

%

 

 

15.3

%

(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 fourth quarter and full year 2022 ended December 31, 2022.

“Our fourth quarter included healthy growth in revenues, solid profitability, and improved cash generation,” said Atul Bhatnagar, president and CEO. “The Point-to-Multi-Point business returned to sequential growth, and we had a strong quarter for the Point-to-Point business from global defense spending.”

Bhatnagar continued, “Cambium’s innovation in wireless broadband continues to benefit service providers, enterprises, industrial customers, and government agencies around the world with our broadening portfolio of gigabit wireless products and solutions. Our high-quality, yet affordable solutions, allow our customers to dramatically improve performance and quality of service. During 2023, Cambium expects to grow revenues and increase profitability as we continue to have healthy growth in the Enterprise business, ramp our next generation of multi-gigabit fixed wireless solutions in the Point-to-Multi-Point business, and benefit from increased global defense spending for our Point-to-Point products.”


Revenues of $84.5 million for the fourth quarter 2022 increased $5.8 million year-over-year primarily as a result of higher revenues for Enterprise and Point-to-Point products, partially offset by lower Point-to-Multi-Point revenues primarily due to less demand from service providers ahead of the ramp of product transitions to new technologies. Revenues for the fourth quarter 2022 increased by $3.3 million compared to $81.2 million for the third quarter 2022, due to record Point-to-Point revenues, and higher Point-to-Multi-Point revenues, offset by lower Enterprise revenues.

GAAP gross margin for the fourth quarter 2022 was 49.0%, compared to 43.8% for the fourth quarter 2021, and 50.7% for the third quarter 2022. GAAP operating income for the fourth quarter 2022 was $9.5 million, compared to $2.9 million for the fourth quarter 2021, and $10.0 million for the third quarter 2022. GAAP net income for the fourth quarter 2022 was $10.0 million, or net earnings of $0.35 per diluted share, compared to $1.4 million, or net earnings of $0.05 per diluted share for the fourth quarter 2021, and $9.4 million, or net earnings of $0.34 per diluted share for the third quarter 2022.

Non-GAAP gross margin for the fourth quarter 2022 was 49.6%, compared to 44.2% for the fourth quarter 2021, and 51.3% for the third quarter 2022. Non-GAAP operating income for the fourth quarter 2022 was $13.2 million, compared to $5.8 million for the fourth quarter 2021, and $13.8 million for the third quarter 2022. Non-GAAP net income for the fourth quarter 2022 was $10.3 million, or $0.36 per diluted share, compared to $4.4 million, or $0.16 per diluted share for the fourth quarter 2021, and $11.3 million, or $0.40 per diluted share, for the third quarter 2022. For the fourth quarter 2022, adjusted EBITDA was $14.3 million or 16.9% of revenues, compared to adjusted EBITDA of $6.7 million or 8.6% of revenues for the fourth quarter 2021, and $14.7 million or 18.2% of revenues for the third quarter 2022.

For full year 2022, revenues of $296.9 million decreased by $39.0 million compared to full year 2021. GAAP gross margin was 48.9% for full year 2022 compared to 47.9% for 2021. Non-GAAP gross margin was 49.5% of revenues for full year 2022, compared to 48.2% of revenues for 2021. GAAP operating income of $19.9 million for full year 2022 compared to $36.4 million for 2021. Non-GAAP operating income was $34.3 million or 11.6% of revenues for full year 2022, compared to $47.4 million or 14.1% of revenues during 2021. GAAP net income for full year 2022 was $20.2 million, or net earnings of $0.72 per diluted share, compared to GAAP net income of $37.4 million, or net earnings of $1.31 per diluted share, for 2021. For full year 2022, non-GAAP net income was $26.9 million or $0.94 per diluted share, compared to $35.6 million or $1.26 per diluted share for 2021. Adjusted EBITDA for full year 2022 was $38.8 million or 13.1% of revenues, compared to $51.2 million or 15.3% of revenues for 2021.

Cash provided by operating activities was $4.0 million for the fourth quarter 2022, compared to $5.6 million for the fourth quarter 2021, and $2.2 million for the third quarter 2022. Cash totaled $48.2 million as of December 31, 2022, $11.1 million lower than December 31, 2021, due primarily to higher inventories and the paydown of debt, offset by earnings.

Fourth Quarter 2022 Highlights

Revenues of $84.5 million, increased 4% sequentially, and was higher by 7% year-over-year.
GAAP net income of $10.0 million or $0.35 per diluted share, non-GAAP net income of $10.3 million or $0.36 per diluted share, compared to GAAP net income of $1.4 million or $0.05 per diluted share, and non-GAAP net income of $4.4 million or $0.16 per diluted share for the fourth quarter 2021.
Adjusted EBITDA of $14.3 million or 16.9% of revenues, compared to $6.7 million or 8.6% of revenues for the fourth quarter 2021.

Net cash provided by operating activities of $4.0 million, compared to $5.6 million provided by operating activities for the fourth quarter 2021.
Increased net new channel partners by over 1,300 year-over-year, an increase of over 11%.
Devices under cnMaestro® cloud management increased 21% year-over-year.

Full Year 2022 Highlights

Revenues of $296.9 million decreased 12% compared to 2021.
Enterprise Wi-Fi revenues of $109.8 million grew 64% compared to 2021.
Point-to-Multi-Point revenues of $114.9 million decreased 44% compared to 2021.
Point-to-Point revenues of $67.1 million increased 10% compared to 2021.
GAAP net income of $20.2 million or $0.72 per diluted share, non-GAAP net income $26.9 million or $0.94 per diluted share.
Adjusted EBITDA of $38.8 million or 13.1% of revenues, compared to $51.2 million or 15.3% of revenues for 2021.

Cambium Networks financial outlook does not include the potential impact of any possible future financial transactions, acquisitions, pending legal matters, or other transactions. Accordingly, Cambium Networks only includes such items in the company’s financial outlook to the extent they are reasonably foreseeable; however, actual results may differ materially from the outlook.

First Quarter 2023 Financial Outlook

Taking into account our current visibility, the financial outlook as of February 16, 2023, for the first quarter ending March 31, 2023, is expected to be as follows:

Revenues between $74.0-$80.0 million, up approximately 20%-29% year-over-year
GAAP gross margin between 48.5%-50.1%; and non-GAAP gross margin between 49.2%-50.8%
GAAP operating expenses between $33.9-$34.9 million; and non-GAAP operating expenses between $30.6-$31.6 million
GAAP operating income between $2.0-$5.2 million; and non-GAAP operating income between $5.8-$9.0 million
Interest expense, net of approximately $0.6 million
GAAP net income between $1.2-$4.0 million or between $0.04 and $0.14 per diluted share; and non-GAAP net income between $4.1-$6.8 million or between $0.14 and $0.23 per diluted share
Adjusted EBITDA between $6.8-$10.0 million; and adjusted EBITDA margin between 9.2%-12.5%
GAAP effective tax rate of approximately 11.0%-15.0%; and non-GAAP effective tax rate of approximately 17.0%-21.0%
Approximately 28.9 million weighted average diluted shares outstanding

Cash requirements are expected to be as follows:

Paydown of debt: $0.7 million

Cash interest expense: approximately $0.4 million
Capital expenditures: $3.0-$4.0 million

Full Year 2023 Financial Outlook

Revenues between $327.0-$345.0 million, increasing between approximately 10%-16%
GAAP gross margin approximately 49.4%; and non-GAAP gross margin approximately 50.0%
GAAP net income between $23.6-$26.1 million or between $0.81 and $0.89 per diluted share; and non-GAAP net income between $33.9-$36.4 million or between $1.17 and $1.25 per diluted share
Adjusted EBITDA margin between 14.5%-15.0%

Conference Call and Webcast

Cambium Networks will host a live webcast and conference call to discuss its financial results at 4:30 p.m. ET today, February 16, 2023. 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://register.vevent.com/register/BIe42a17d8cf414d09a006e67a8b042659. 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.

In addition, Cambium Networks President and CEO, Atul Bhatnagar, and CFO, Andrew Bronstein, will present and hold one-on-one meetings with investors on Tuesday, March 7, 2023, at the JMP Securities Technology Conference in San Francisco; and on Tuesday, March 14, 2023, in person at the ROTH Capital Partner Annual Conference in Dana Point, California. To join the live webcasts for the JMP Securities and ROTH Capital conferences, listeners should access the investor page of Cambium Networks website https://investors.cambiumnetworks.com/. Following the live webcasts, a replay will be available in the event archives at the same web address.

About Cambium Networks

Cambium Networks delivers wireless communications that work for businesses, communities, and cities worldwide. Millions of our radios are deployed to connect people, places and things with a unified wireless fabric that spans multiple standards and frequencies of fixed wireless and Wi-Fi, all managed centrally via the cloud. Our multi-gigabit wireless fabric offers a compelling value proposition over traditional fiber and alternative wireless solutions. We work with our Cambium certified ConnectedPartners to deliver purpose-built networks for service provider, enterprise, industrial, and government connectivity solutions in urban, suburban, and rural environments, with wireless 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 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 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2022, and most recent Quarterly Report on Form 10-Q filed on November 4, 2022. 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; the impact of the global shortage of certain components including semiconductor chipsets; the constraint in global shipping and logistics; risks presented by the global COVID-19 pandemic, including new or continued government shutdowns such as the recent shutdowns in China, which has and could continue to significantly disrupt our manufacturing, supply chain, sales and other operations and negatively impact our financial 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 and tensions with China; 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; the quality of our support and services offerings; 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; the technological complexity of our products, which may contain undetected hardware defects or software bugs; 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; 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, 2022

 

 

September 30, 2022

 

 

December 31, 2021

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

84,507

 

 

$

81,200

 

 

$

78,710

 

 

$

296,899

 

 

$

335,854

 

Cost of revenues

 

 

43,138

 

 

 

40,034

 

 

 

44,196

 

 

 

151,759

 

 

 

175,058

 

Gross profit

 

 

41,369

 

 

 

41,166

 

 

 

34,514

 

 

 

145,140

 

 

 

160,796

 

Gross margin

 

 

49.0

%

 

 

50.7

%

 

 

43.8

%

 

 

48.9

%

 

 

47.9

%

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

12,874

 

 

 

12,609

 

 

 

12,492

 

 

 

49,865

 

 

 

51,322

 

Sales and marketing

 

 

12,148

 

 

 

11,033

 

 

 

11,367

 

 

 

44,452

 

 

 

41,819

 

General and administrative

 

 

5,422

 

 

 

6,058

 

 

 

6,284

 

 

 

24,982

 

 

 

25,065

 

Depreciation and amortization

 

 

1,475

 

 

 

1,506

 

 

 

1,464

 

 

 

5,961

 

 

 

6,171

 

Total operating expenses

 

 

31,919

 

 

 

31,206

 

 

 

31,607

 

 

 

125,260

 

 

 

124,377

 

Operating income

 

 

9,450

 

 

 

9,960

 

 

 

2,907

 

 

 

19,880

 

 

 

36,419

 

Operating margin

 

 

11.2

%

 

 

12.3

%

 

 

3.7

%

 

 

6.7

%

 

 

10.8

%

Interest expense, net

 

 

559

 

 

 

514

 

 

 

1,061

 

 

 

1,977

 

 

 

4,269

 

Other expense (income), net

 

 

15

 

 

 

165

 

 

 

35

 

 

 

(114

)

 

 

244

 

Income before income taxes

 

 

8,876

 

 

 

9,281

 

 

 

1,811

 

 

 

18,017

 

 

 

31,906

 

(Benefit) provision for income taxes

 

 

(1,135

)

 

 

(154

)

 

 

384

 

 

 

(2,183

)

 

 

(5,515

)

Net income

 

$

10,011

 

 

$

9,435

 

 

$

1,427

 

 

$

20,200

 

 

$

37,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.37

 

 

$

0.35

 

 

$

0.05

 

 

$

0.75

 

 

$

1.42

 

Diluted

 

$

0.35

 

 

$

0.34

 

 

$

0.05

 

 

$

0.72

 

 

$

1.31

 

Weighted-average number of shares outstanding to compute earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

27,109,926

 

 

 

26,977,155

 

 

 

26,655,437

 

 

 

26,919,550

 

 

 

26,421,087

 

Diluted

 

 

28,273,786

 

 

 

27,979,575

 

 

 

28,313,291

 

 

 

28,025,278

 

 

 

28,628,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation included in costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

$

56

 

 

$

56

 

 

$

44

 

 

$

219

 

 

$

152

 

Research and development

 

 

1,258

 

 

 

1,241

 

 

 

851

 

 

 

4,532

 

 

 

3,044

 

Sales and marketing

 

 

702

 

 

 

696

 

 

 

561

 

 

 

2,603

 

 

 

1,935

 

General and administrative

 

 

879

 

 

 

855

 

 

 

677

 

 

 

3,326

 

 

 

2,586

 

Total share-based compensation expense

 

$

2,895

 

 

$

2,848

 

 

$

2,133

 

 

$

10,680

 

 

$

7,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain revisions were made within operating expenses in prior periods to conform to the current period. These revisions had no impact to operating income.


CAMBIUM NETWORKS CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In thousands, except share information)

 

(Unaudited)

 

 

 

December 31, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$

48,162

 

 

$

59,291

 

Accounts receivable, net of allowance of $577 and $683

 

 

89,321

 

 

 

69,773

 

Inventories, net

 

 

57,068

 

 

 

33,777

 

Recoverable income taxes

 

 

117

 

 

 

860

 

Prepaid expenses

 

 

11,857

 

 

 

12,170

 

Other current assets

 

 

6,464

 

 

 

4,718

 

Total current assets

 

 

212,989

 

 

 

180,589

 

 

 

 

 

 

 

 

Noncurrent assets

 

 

 

 

 

 

Property and equipment, net

 

 

11,271

 

 

 

10,490

 

Software, net

 

 

8,439

 

 

 

5,867

 

Operating lease assets

 

 

4,011

 

 

 

5,899

 

Intangible assets, net

 

 

9,173

 

 

 

10,777

 

Goodwill

 

 

9,842

 

 

 

9,842

 

Deferred tax assets, net

 

 

12,782

 

 

 

7,604

 

Other noncurrent assets

 

 

955

 

 

 

1,200

 

TOTAL ASSETS

 

$

269,462

 

 

$

232,268

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

31,284

 

 

$

28,241

 

Accrued liabilities

 

 

28,042

 

 

 

21,948

 

Employee compensation

 

 

7,394

 

 

 

16,601

 

Current portion of long-term external debt, net

 

 

3,158

 

 

 

2,489

 

Deferred revenues

 

 

8,913

 

 

 

6,880

 

Other current liabilities

 

 

8,429

 

 

 

5,981

 

Total current liabilities

 

 

87,220

 

 

 

82,140

 

Noncurrent liabilities

 

 

 

 

 

 

Long-term external debt, net

 

 

24,463

 

 

 

26,965

 

Deferred revenues

 

 

8,617

 

 

 

5,363

 

Noncurrent operating lease liabilities

 

 

2,170

 

 

 

4,112

 

Other noncurrent liabilities

 

 

1,619

 

 

 

1,551

 

Total liabilities

 

 

124,089

 

 

 

120,131

 

Shareholders' equity

 

 

 

 

 

 

Share capital; $0.0001 par value; 500,000,000 shares authorized at December 31, 2022 and December 31, 2021; 27,313,273 outstanding at December 31, 2022 and 26,735,175 outstanding at December 31, 2021

 

 

3

 

 

 

3

 

Additional paid in capital

 

 

138,997

 

 

 

124,117

 

Treasury shares, at cost, 209,461 shares at December 31, 2022 and 156,907 shares at December 31, 2021

 

 

(4,922

)

 

 

(3,906

)

Accumulated earnings (deficit)

 

 

12,822

 

 

 

(7,378

)

Accumulated other comprehensive loss

 

 

(1,527

)

 

 

(699

)

Total shareholders’ equity

 

 

145,373

 

 

 

112,137

 

TOTAL LIABILITIES AND EQUITY

 

$

269,462

 

 

$

232,268

 

 

 

 

 

 

 

 

 

 


CAMBIUM NETWORKS CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

December 31, 2022

 

 

September 30, 2022

 

 

December 31, 2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net income

 

$

10,011

 

 

$

9,435

 

 

$

1,427

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization of software and intangible assets

 

 

1,972

 

 

 

1,930

 

 

 

1,731

 

Amortization of debt issuance costs

 

 

75

 

 

 

76

 

 

 

467

 

Share-based compensation

 

 

2,895

 

 

 

2,848

 

 

 

2,133

 

Deferred income taxes

 

 

(3,202

)

 

 

(694

)

 

 

359

 

Provision for inventory excess and obsolescence

 

 

2,024

 

 

 

1,587

 

 

 

695

 

Other

 

 

(31

)

 

 

(88

)

 

 

(31

)

Change in assets and liabilities:

 

 

 

 

 

 

 

 

 

Receivables

 

 

(3,470

)

 

 

(5,506

)

 

 

1,315

 

Inventories

 

 

(8,451

)

 

 

(4,786

)

 

 

(5,683

)

Prepaid expenses

 

 

(3,768

)

 

 

(4,116

)

 

 

(6,931

)

Accounts payable

 

 

3,114

 

 

 

(137

)

 

 

4,400

 

Accrued employee compensation

 

 

1,293

 

 

 

759

 

 

 

3,671

 

Other assets and liabilities

 

 

1,564

 

 

 

851

 

 

 

2,012

 

Net cash provided by operating activities

 

 

4,026

 

 

 

2,159

 

 

 

5,565

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,332

)

 

 

(974

)

 

 

(2,062

)

Purchase of software

 

 

(1,230

)

 

 

(1,440

)

 

 

(1,316

)

Net cash used in investing activities

 

 

(2,562

)

 

 

(2,414

)

 

 

(3,378

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Proceeds from issuance of term loan

 

 

 

 

 

 

 

 

29,812

 

Repayment of term loan

 

 

(657

)

 

 

(656

)

 

 

(30,678

)

Payment of debt issuance costs

 

 

 

 

 

 

 

 

(1,220

)

Issuance of ordinary shares under ESPP

 

 

839

 

 

 

 

 

 

923

 

Taxes paid related to net share settlement of equity awards

 

 

(226

)

 

 

(231

)

 

 

(562

)

Proceeds from share option exercises

 

 

1,872

 

 

 

113

 

 

 

266

 

Payments to extinguish debt

 

 

 

 

 

 

 

 

(42

)

Net cash provided by (used in) financing activities

 

 

1,828

 

 

 

(774

)

 

 

(1,501

)

Effect of exchange rate on cash

 

 

11

 

 

 

(41

)

 

 

9

 

Net increase (decrease) in cash

 

 

3,303

 

 

 

(1,070

)

 

 

695

 

Cash, beginning of period

 

 

44,859

 

 

 

45,929

 

 

 

58,596

 

Cash, end of period

 

$

48,162

 

 

$

44,859

 

 

$

59,291

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

Income taxes paid

 

$

438

 

 

$

486

 

 

$

206

 

Interest paid

 

$

310

 

 

$

213

 

 

$

234

 

 


CAMBIUM NETWORKS CORPORATION

 

SUPPLEMENTAL FINANCIAL INFORMATION

 

(In thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES BY PRODUCT CATEGORY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31, 2022

 

 

September 30, 2022

 

 

December 31, 2021

 

 

December 31, 2022

 

 

December 31, 2021

 

Point-to-Multi-Point

 

$

29,656

 

 

$

26,090

 

 

$

37,017

 

 

$

114,941

 

 

$

204,756

 

Point-to-Point

 

 

21,276

 

 

 

15,409

 

 

 

15,329

 

 

 

67,083

 

 

 

60,761

 

Enterprise

 

 

31,992

 

 

 

38,330

 

 

 

25,779

 

 

 

109,844

 

 

 

66,933

 

Other

 

 

1,583

 

 

 

1,371

 

 

 

585

 

 

 

5,031

 

 

 

3,404

 

Total Revenues

 

$

84,507

 

 

$

81,200

 

 

$

78,710

 

 

$

296,899

 

 

$

335,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES BY REGION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31, 2022

 

 

September 30, 2022

 

 

December 31, 2021

 

 

December 31, 2022

 

 

December 31, 2021

 

North America

 

$

44,350

 

 

$

30,086

 

 

$

33,386

 

 

$

133,897

 

 

$

173,491

 

Europe, Middle East and Africa

 

 

20,007

 

 

 

29,263