0000950170-23-037148 | 10-Q | XBRL Viewer

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Amount and Amortization of Software and Intangible Assets

The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands):


		December 31, 2022							June 30, 2023
	Useful Life	Gross carrying amount		Accumulated amortization			Net balance		Gross carrying amount		Accumulated amortization			Net balance

Customer relationships	5 - 18 years		19,300		(10,127	)		9,173		19,300		(10,876	)		8,424
Total		$	19,300	$	(10,127	)	$	9,173	$	19,300	$	(10,876	)	$	8,424

Schedule of Estimated Amortization Expense of Capitalized Software and Intangible Assets

Based on capitalized intangible assets as of June 30, 2023, estimated amortization expense amounts in future fiscal years are as follows (unaudited and in thousands):


Year ending December 31,	Amortization
2023 (July - December)		749
2024		1,498
2025		1,498
2026		1,498
2027		1,498
Thereafter		1,683
Total amortization	$	8,424

Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 6. Debt

As of June 30, 2023, the Company had $26.7 million outstanding under its current term loan facility and $0.0 million outstanding under its revolving credit facility. The Company has available $45.0 million under its revolving credit facility (unaudited).

The following table reflects the current and noncurrent portions of the external debt facilities at December 31, 2022 and June 30, 2023 (in thousands):


	December 31,			June 30,
	2022			2023

Term loan facility	$	28,031		$	26,719
Less debt issuance costs		(410	)		(341	)
Total debt		27,621			26,378
Less current portion of term facility		(3,281	)		(3,281	)
Current portion of debt issuance costs		123			115
Total long-term external debt, net	$	24,463		$	23,212

Secured credit agreement

On June 9, 2023, the Company entered into the first amendment to its BofA Agreement ("First Amendment") which amended the original Bank of America Agreement ("BofA Agreement") to replace the benchmark used for the interest rate on Eurodollar Rate Loans from US Dollar LIBOR to the Term Secured Overnight Financing Rate ("SOFR"). Our outstanding debt under the BofA Agreement are now known as Term SOFR Loans, with the term selected by the Company. The new benchmark became effective on June 17, 2023, when the current interest period on the Eurodollar Rate Loan using the US Dollar LIBOR benchmark ended. Entry into the First Amendment transaction enabled for the Company to elect the practical expedient included in ASC 848, Reference Rate Reform, and it accounted for the First Amendment as if the modification were not significant. The First Amendment did not create a material impact on the consolidated financial statements.

Based on the terms of the First Amendment, interest on the Term SOFR Loan accrues on the outstanding principal amount of the Term and Revolving Facilities on a quarterly basis and is equal to the base rate equal to the rate per annum as now determined by reference to the 1-month, 3-month or 6-month Term SOFR rate as selected by the Company, plus a SOFR adjustment of 0.10%. The applicable margin range between 1.75% and 2.25% as determined by the Company's performance as measured by the consolidated leverage ratio that is added to calculate the all-in rate remains unchanged with the First Amendment. At June 30, 2023, the applicable margin was 1.75% and the effective interest rate on the term loan was 7.52% (unaudited).

The Company is still required to make quarterly principal payments of $0.7 million, with the remaining principal due on maturity on November 17, 2026. The Company is required to pay interest quarterly on the outstanding balance. The Company is still permitted to voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans under the BofA First Amendment at any time without premium or penalty.

Maturities on the external debt outstanding at June 30, 2023 is as follows (unaudited and in thousands):


Year ending December 31,
2023 (July- December)		1,312
2024		2,625
2025		2,625
2026		19,500
Total	$	26,062

As of June 30, 2023, the Company was in compliance with all affirmative and negative covenants (unaudited).

Net interest expense, including bank charges and amortization of debt issuance costs on the external debt, was $0.4 million and $0.6 million for the three-month periods ended June 30, 2022 and 2023, respectively, and $0.9 million and $1.2 million for the six-month periods ended June 30, 2022 and 2023, respectively (unaudited).

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 613	$ 592	$ 1,185	$ 1,201
Short-term lease cost	94	119	193	253
Variable lease costs	150	147	311	290
Total lease expense	$ 857	$ 858	$ 1,689	$ 1,744

Revenues from Contracts with Customers - Schedule of Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 59,542	$ 69,296	$ 136,943	$ 131,192
Sales Revenue, Product Line \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
North America
Disaggregation of Revenue [Line Items]
Revenues	$ 39,526	$ 31,140	$ 87,119	$ 59,461
North America \| Sales Revenue, Product Line \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	67.00%	45.00%	63.00%	45.00%
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenues	$ 6,769	$ 21,281	$ 26,477	$ 41,613
Europe, Middle East and Africa \| Sales Revenue, Product Line \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	11.00%	31.00%	19.00%	32.00%
Caribbean and Latin America
Disaggregation of Revenue [Line Items]
Revenues	$ 6,015	$ 7,960	$ 9,700	$ 13,044
Caribbean and Latin America \| Sales Revenue, Product Line \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	10.00%	11.00%	7.00%	10.00%
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenues	$ 7,232	$ 8,915	$ 13,647	$ 17,074
Asia Pacific \| Sales Revenue, Product Line \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	12.00%	13.00%	10.00%	13.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
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+ Details

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Share Capital	Additional Paid in Capital	Treasury Shares	Accumulated (deficit) equity	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2021	$ 112,137	$ 3	$ 124,117	$ (3,906)	$ (7,378)	$ (699)
Beginning balance, shares at Dec. 31, 2021		26,735,000
Net (loss) income	754				754
Share-based compensation	4,458		4,458
Issuance of ordinary shares under ESPP, shares		87,000
Issuance of ordinary shares under ESPP	1,606		1,606
Issuance of vested shares		146,000
Treasury shares withheld for net settlement	(606)			(606)
Treasury shares withheld for net settlement, shares		(31,000)
Proceeds from exercise of share options	249		249
Proceeds from exercise of share options, shares		27,000
Foreign currency translation	(446)					(446)
Ending balance at Jun. 30, 2022	118,152	$ 3	130,430	(4,512)	(6,624)	(1,145)
Ending balance, shares at Jun. 30, 2022		26,964,000
Beginning balance at Mar. 31, 2022	112,408	$ 3	126,437	(4,321)	(8,946)	(765)
Beginning balance, shares at Mar. 31, 2022		26,825,000
Net (loss) income	2,322				2,322
Share-based compensation	2,284		2,284
Issuance of ordinary shares under ESPP, shares		87,000
Issuance of ordinary shares under ESPP	1,606		1,606
Issuance of vested shares		52,000
Treasury shares withheld for net settlement	(191)			(191)
Treasury shares withheld for net settlement, shares		(13,000)
Proceeds from exercise of share options	103		103
Proceeds from exercise of share options, shares		13,000
Foreign currency translation	(380)					(380)
Ending balance at Jun. 30, 2022	118,152	$ 3	130,430	(4,512)	(6,624)	(1,145)
Ending balance, shares at Jun. 30, 2022		26,964,000
Beginning balance at Dec. 31, 2022	145,373	$ 3	138,997	(4,922)	12,822	(1,527)
Beginning balance, shares at Dec. 31, 2022		27,313,273
Net (loss) income	1,634				1,634
Share-based compensation	5,937		5,937
Issuance of ordinary shares under ESPP, shares		88,290
Issuance of ordinary shares under ESPP	1,102		1,102
Issuance of vested shares		178,000
Treasury shares withheld for net settlement	(587)			(587)
Treasury shares withheld for net settlement, shares		(35,000)
Proceeds from exercise of share options	$ 492		492
Proceeds from exercise of share options, shares	59,112	59,112
Foreign currency translation	$ 100					100
Ending balance at Jun. 30, 2023	154,051	$ 3	146,528	(5,509)	14,456	(1,427)
Ending balance, shares at Jun. 30, 2023		27,603,028
Beginning balance at Mar. 31, 2023	152,536	$ 3	142,009	(5,133)	17,098	(1,441)
Beginning balance, shares at Mar. 31, 2023		27,397,000
Net (loss) income	(2,642)				(2,642)
Share-based compensation	3,312		3,312
Issuance of ordinary shares under ESPP, shares		88
Issuance of ordinary shares under ESPP	1,102		1,102
Issuance of vested shares		133,000
Treasury shares withheld for net settlement	(376)			(376)
Treasury shares withheld for net settlement, shares		(23,000)
Proceeds from exercise of share options	105		105
Proceeds from exercise of share options, shares		8,000
Foreign currency translation	14					14
Ending balance at Jun. 30, 2023	$ 154,051	$ 3	$ 146,528	$ (5,509)	$ 14,456	$ (1,427)
Ending balance, shares at Jun. 30, 2023		27,603,028

Other (Income) Expense, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Other Expense
Other Non Operating Income and Expense [Line Items]
Foreign exchange (gains) and losses	$ 0.1	$ (0.4)	$ 0.2	$ (0.3)

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Product Warranty Liability [Line Items]
Accrued warranty	$ 1,467	$ 1,651	$ 1,731
Other Current Liabilities
Product Warranty Liability [Line Items]
Accrued warranty	1,200
Other Noncurrent Liabilities
Product Warranty Liability [Line Items]
Accrued warranty	$ 300

Revenues from Contracts with Customers - Schedule of Revenue by Product Category (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 59,542	$ 69,296	$ 136,943	$ 131,192
Sales Revenue, Product Line \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
Point-to-Multi-Point
Disaggregation of Revenue [Line Items]
Revenues	$ 26,734	$ 28,269	$ 49,026	$ 59,195
Point-to-Multi-Point \| Sales Revenue, Product Line \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	45.00%	41.00%	36.00%	45.00%
Point-to-Point
Disaggregation of Revenue [Line Items]
Revenues	$ 25,074	$ 15,684	$ 43,082	$ 30,398
Point-to-Point \| Sales Revenue, Product Line \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	42.00%	22.00%	31.00%	23.00%
Enterprise
Disaggregation of Revenue [Line Items]
Revenues	$ 6,420	$ 24,014	$ 42,076	$ 39,522
Enterprise \| Sales Revenue, Product Line \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	11.00%	35.00%	31.00%	30.00%
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 1,314	$ 1,329	$ 2,759	$ 2,077
Other \| Sales Revenue, Product Line \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	2.00%	2.00%	2.00%	2.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

Share-Based Compensation - Summary of Restricted Shares Activity (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Number of Units
Number of Units, RSUs, beginning balance \| shares	696,990
Number of Units, RSUs granted \| shares	115,811
Number of Units, RSUs vested \| shares	(177,621)
Number of Units, RSUs forfeited \| shares	(9,289)
Number of Units, RSUs, ending balance \| shares	625,891
Weighted average grant date fair value
Weighted average grant date fair value, RSUs, beginning balance \| $ / shares	$ 18.22
Weighted average grant date fair value, RSUs granted \| $ / shares	15.51
Weighted average grant date fair value, RSUs vested \| $ / shares	16.27
Weighted average grant date fair value, RSUs forfeited \| $ / shares	18.14
Weighted average grant date fair value, RSUs, ending balance \| $ / shares	$ 18.25

Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Current and Noncurrent Portions of External Debt Facilities

The following table reflects the current and noncurrent portions of the external debt facilities at December 31, 2022 and June 30, 2023 (in thousands):


	December 31,			June 30,
	2022			2023

Term loan facility	$	28,031		$	26,719
Less debt issuance costs		(410	)		(341	)
Total debt		27,621			26,378
Less current portion of term facility		(3,281	)		(3,281	)
Current portion of debt issuance costs		123			115
Total long-term external debt, net	$	24,463		$	23,212

Schedule of Maturities on External Debt Outstanding

Maturities on the external debt outstanding at June 30, 2023 is as follows (unaudited and in thousands):


Year ending December 31,
2023 (July- December)		1,312
2024		2,625
2025		2,625
2026		19,500
Total	$	26,062

Revenues from Contracts with Customers - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Customer	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) Customer
Revenue From Contract With Customer [Line Items]
Deferred revenue	$ 17.6		$ 17.6		$ 17.5
Revenue recognized	$ 2.1	$ 2.0	$ 5.5	$ 4.0
Revenue practical expedient, incremental cost of obtaining contract [true/false]			true
Minimum
Revenue From Contract With Customer [Line Items]
Collection period for trade accounts receivable			30 days
Maximum
Revenue From Contract With Customer [Line Items]
Collection period for trade accounts receivable			60 days
Customer Concentration Risk \| Accounts Receivables
Revenue From Contract With Customer [Line Items]
Number of customers \| Customer			2		1
Customer Concentration Risk \| Accounts Receivables \| Customer A
Revenue From Contract With Customer [Line Items]
Concentration risk, percentage			10.00%		10.00%

Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows and are included in general and administrative expense (unaudited and in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2023		2022		2023
Operating lease cost	$	592	$	613	$	1,201	$	1,185
Short-term lease cost		119		94		253		193
Variable lease costs		147		150		290		311
Total lease expense	$	858	$	857	$	1,744	$	1,689

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases were as follows (in thousands, except lease term and discount rate):


	Balance Sheet Caption	December 31, 2022			June 30, 2023

Operating leases:
Operating lease assets	Operating lease assets	$	4,011		$	4,823
Current lease liabilities	Other current liabilities	$	1,930		$	1,940
Noncurrent lease liabilities	Noncurrent operating lease liabilities	$	2,170		$	3,033
Weighted average remaining lease term (years):
Operating leases			2.67			3.26
Weighted average discount rate:
Operating leases			6.11	%		6.30	%

Supplemental Cash Flow Information

Supplemental cash flow information related to leases were as follows (unaudited and in thousands):


	Six Months Ended June 30,
	2022		2023
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,289	$	1,214

Remaining Maturities on Lease Liabilities

Remaining maturities on lease liabilities as of June 30, 2023 is as follows (unaudited and in thousands):


	Operating leases
2023 (July - December)		1,250
2024		1,592
2025		1,228
2026		814
2027		440
Thereafter		198
Total lease payments		5,522
Less: interest		549
Present value of lease liabilities	$	4,973

Revenues from Contracts with Customers - Additional Information (Details 1) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Deferred revenue	$ 17.6	$ 17.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligation expected to be recognized period		1 year
Deferred revenue		$ 8.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligation expected to be recognized period	1 year
Deferred revenue	$ 8.3

Other (Income) Expense, Net

6 Months Ended

Jun. 30, 2023

Other Income and Expenses [Abstract]

Other (Income) Expense, Net

Note 8. Other (income) expense, net

Net other (income) expense changed from income of $0.4 million for the three-month period ended June 30, 2022 to expense of $0.1 million for the three-month period ended June 30, 2023. Net other (income) expense changed from income of $0.3 million for the six-month period ended June 30, 2022 to expense of $0.2 million for the six-month period ended June 30, 2023. Net other (income) expense mostly represents foreign exchange gains and losses.

Share-Based Compensation - Summary of Stock Option Activity (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Options
Options outstanding, Beginning balance \| shares	3,395,219
Options granted \| shares	80,000
Options exercised \| shares	(59,112)
Options expired \| shares	(3,313)
Options forfeited \| shares	(1,312)
Options outstanding, Ending balance \| shares	3,411,482	3,395,219
Options exercisable \| shares	2,276,431
Options vested and expected to vest \| shares	3,345,167
Weighted average exercise price
Weighted average exercise price, Outstanding beginning balance \| $ / shares	$ 13.83
Weighted average exercise price, Options granted \| $ / shares	15
Weighted average exercise price, Options exercised \| $ / shares	8.31
Weighted average exercise price, Options expired \| $ / shares	12
Weighted average exercise price, Options forfeited \| $ / shares	12.00
Weighted average exercise price, Outstanding ending balance \| $ / shares	13.95	$ 13.83
Weighted average exercise price, Options exercisable \| $ / shares	12.84
Weighted average exercise price, Options vested and expected to vest \| $ / shares	$ 13.93
Weighted average remaining contractual term (years)
Weighted average remaining contractual term, Options outstanding	7 years 2 months 12 days	7 years 7 months 6 days
Weighted average remaining contractual term, Options exercisable	6 years 7 months 6 days
Weighted average remaining contractual term, Options vested and expected to vest	7 years 2 months 12 days
Aggregate intrinsic value, Outstanding \| $	$ 8,971,974	$ 28,985,969
Aggregate intrinsic value, Options exercisable \| $	7,758,912
Aggregate intrinsic value, Options vested and expected to vest \| $	$ 8,903,786

Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment information

Note 14. Segment information

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The Company’s CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company determined that it operates as one operating segment and one reporting unit.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Property and Equipment

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property and equipment

Note 3. Property and equipment

Property and equipment, net consisted of the following (in thousands):


		December 31,			June 30,
	Useful Life	2022			2023

Equipment and tooling	3 to 5 years	$	33,026		$	34,665
Computer equipment	3 to 5 years		4,572			5,126
Furniture and fixtures	10 years		809			829
Leasehold improvements	2 to 3 years		472			521
Total cost			38,879			41,141
Less: Accumulated depreciation			(27,608	)		(29,766	)
Property and equipment, net		$	11,271		$	11,375

Total depreciation expense was $1.0 million and $1.0 million for the three-month periods ended June 30, 2022 and 2023, respectively and $1.9 million and $2.1 million for the six-month periods ended June 30, 2022 and 2023, respectively.

Goodwill and Intangible Assets - Schedule of Carrying Amount and Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 19,300	$ 19,300
Accumulated amortization	(10,876)	(10,127)
Total amortization	8,424	9,173
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	19,300	19,300
Accumulated amortization	(10,876)	(10,127)
Total amortization	$ 8,424	$ 9,173
Customer Relationships \| Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life	5 years
Customer Relationships \| Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life	18 years

Earnings (loss) per share - Additional Information (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of diluted ner loss per share	1,762,872	1,708,983

Software - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Acquired and Software for Internal Use
Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 0.1	$ 0.1	$ 0.2	$ 0.3
Acquired and Software for Internal Use \| Minimum
Finite Lived Intangible Assets [Line Items]
Useful life	3 years		3 years
Acquired and Software for Internal Use \| Maximum
Finite Lived Intangible Assets [Line Items]
Useful life	7 years		7 years
Software Marketed for External Sale
Finite Lived Intangible Assets [Line Items]
Useful life	3 years		3 years
Amortization expense	$ 0.6	$ 0.4	$ 1.2	$ 0.7

Balance Sheet Components

6 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Balance sheet components

Note 2. Balance sheet components

Inventories, net

Inventories, net consisted of the following (in thousands):


	December 31,			June 30,
	2022			2023

Finished goods	$	50,052		$	71,024
Raw materials		15,010			20,116
Gross inventory		65,062			91,140
Less: Excess and obsolete provision		(7,994	)		(8,792	)
Inventories, net	$	57,068		$	82,348

Accrued liabilities

Accrued liabilities consisted of the following (in thousands):


	December 31,		June 30,
	2022		2023

Accrued goods and services	$	10,633	$	10,078
Accrued inventory purchases		3,189		4,744
Accrued customer rebates		13,797		11,061
Other		423		481
Accrued liabilities	$	28,042	$	26,364

Accrued warranty

Provisions for warranty claims are primarily related to our hardware products and are recorded at the time products are sold. The change to accrued warranty was as follows (in thousands):


	Year ended December 31,			Six months ended June 30,
	2022			2023

Beginning balance	$	1,731		$	1,651
Fulfillment of assumed acquisition warranty		(142	)		(157	)
Provision increase (decrease), net		62			(27	)
Ending balance	$	1,651		$	1,467

At June 30, 2023, $1.2 million is included in Other current liabilities and $0.3 million is included in Other noncurrent liabilities on the Company’s condensed consolidated balance sheet.

Debt - Schedule of Current and Noncurrent Portions of External Debt Facilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Less debt issuance costs	$ (341)	$ (410)
Total debt	26,378	27,621
Less current portion of term facility	(3,281)	(3,281)
Current portion of debt issuance costs	115	123
Total long-term external debt, net	23,212	24,463
Term Loan Facility
Debt Instrument [Line Items]
Long-term debt, Gross	$ 26,719	$ 28,031

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://www.xbrl.org/2003/role/exampleRef
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-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69F

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/exampleRef
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1B
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-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Paragraph 1F
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-Publisher FASB
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


		December 31,			June 30,
	Useful Life	2022			2023

Equipment and tooling	3 to 5 years	$	33,026		$	34,665
Computer equipment	3 to 5 years		4,572			5,126
Furniture and fixtures	10 years		809			829
Leasehold improvements	2 to 3 years		472			521
Total cost			38,879			41,141
Less: Accumulated depreciation			(27,608	)		(29,766	)
Property and equipment, net		$	11,271		$	11,375

Share Capital - Shares (Share Capital Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule Of Capitalization Equity [Line Items]
Share options exercised, shares			59,112
Proceeds from exercise of share options	$ 105	$ 103	$ 492	$ 249
Share Capital
Schedule Of Capitalization Equity [Line Items]
Beginning balance, shares	27,397,000	26,825,000	27,313,273	26,735,000
Issuance of ordinary shares under employee share purchase plan, shares	88	87,000	88,290	87,000
Issuance of vested shares, Number of shares			177,396
Share options exercised, shares	8,000	13,000	59,112	27,000
Shares withheld for net settlement of shares issued, Number of shares			(35,043)
Ending balance, shares	27,603,028	26,964,000	27,603,028	26,964,000
Beginning balance			$ 3
Ending balance	$ 3		$ 3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 1,634	$ 754
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	2,124	1,853
Amortization of software and intangible assets	2,193	1,841
Amortization of debt issuance costs	154	153
Share-based compensation	5,937	4,937
Deferred income taxes	(3,324)	(1,293)
Provision for inventory excess and obsolescence	1,060	132
Other	(162)	(6)
Change in assets and liabilities:
Receivables	192	(3,930)
Inventories	(26,340)	(13,797)
Prepaid expenses	3,803	8,170
Accounts payable	(1,340)	(210)
Accrued employee compensation	(1,515)	(10,918)
Accrued liabilities	615	1,306
Other assets and liabilities	4,489	1,769
Net cash used in operating activities	(10,480)	(9,239)
Cash flows from investing activities:
Purchase of property and equipment	(2,236)	(2,268)
Purchase of software	(3,333)	(2,001)
Net cash used in investing activities	(5,569)	(4,269)
Cash flows from financing activities:
Repayment of term loan	(1,313)	(656)
Issuance of ordinary shares under ESPP	1,102	1,127
Taxes paid from shares withheld	(433)	(529)
Proceeds from share option exercises	492	249
Net cash provided by (used in) financing activities	(152)	191
Effect of exchange rate on cash	17	(45)
Net decrease in cash	(16,184)	(13,362)
Cash, beginning of period	48,162	59,291
Cash, end of period	31,978	45,929
Supplemental disclosure of cash flow information:
Income taxes paid	2,843	422
Interest paid	$ 880	$ 284

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (2,642)	$ 2,322	$ 1,634	$ 754
Other comprehensive income (loss)
Foreign currency translation adjustment	14	(380)	100	(446)
Comprehensive income (loss)	$ (2,628)	$ 1,942	$ 1,734	$ 308

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Debt - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Jun. 09, 2023	Nov. 17, 2021	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Debt Instrument [Line Items]
Net interest expense			$ 600	$ 400	$ 1,200	$ 900
BofA Credit Agreement
Debt Instrument [Line Items]
Debt outstanding			26,062		26,062
Debt instrument, maturity date		Nov. 17, 2026
Debt instrument, principal payments					$ 700
Debt instrument, frequency of payment					quarterly
BofA Credit Agreement \| SOFR
Debt Instrument [Line Items]
Debt instrument, interest rate, adjustments					interest on the Term SOFR Loan accrues on the outstanding principal amount of the Term and Revolving Facilities on a quarterly basis and is equal to the base rate equal to the rate per annum as now determined by reference to the 1-month, 3-month or 6-month Term SOFR rate as selected by the Company, plus a SOFR adjustment of 0.10%. The applicable margin range between 1.75% and 2.25% as determined by the Company's performance as measured by the consolidated leverage ratio that is added to calculate the all-in rate remains unchanged with the First Amendment.
Debt instrument base rate					0.10%
Term Loan Facility
Debt Instrument [Line Items]
Debt outstanding			26,719		$ 26,719		$ 28,031
Term Loan Facility \| Bank of American
Debt Instrument [Line Items]
Debt outstanding			$ 26,700		$ 26,700
Term Loan Facility \| BofA Credit Agreement
Debt Instrument [Line Items]
Debt instrument, effective interest rate			7.52%		7.52%
Term Loan Facility \| BofA Credit Agreement \| Applicable Margin Rate
Debt Instrument [Line Items]
Debt instrument base rate					1.75%
Revolving Credit Facility
Debt Instrument [Line Items]
Debt outstanding			$ 0		$ 0
Revolving Credit Facility \| Silicon Valley Bank
Debt Instrument [Line Items]
Debt Instrument amount available under credit facility			$ 45,000		$ 45,000
Maximum \| BofA Credit Agreement \| Applicable Margin Rate
Debt Instrument [Line Items]
Debt instrument base rate	2.25%
Minimum \| BofA Credit Agreement \| Applicable Margin Rate
Debt Instrument [Line Items]
Debt instrument base rate	1.75%

Share Capital - Shares

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Share Capital - Shares

Note 10. Share capital - shares

The following table reflects the share capital activity (unaudited):


	Number of shares			Par value (in thousands)
Balance at December 31, 2022		27,313,273		$	3
Issuance of ordinary shares under employee share purchase plan		88,290			—
Issuance of vested shares		177,396			—
Share options exercised		59,112			—
Shares withheld for net settlement of shares issued		(35,043	)		—
Balance at June 30, 2023		27,603,028		$	3

As of June 30, 2023, no dividends have been declared or paid (unaudited).

- Definition

The entire disclosure for equity.

+ References

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+ Details

Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
U.S. Plan
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution, percent of match			100.00%
Defined contribution plan, maximum annual contributions per employee, percent			4.00%
Defined contribution plan employers matching contribution vesting period			2 years
Defined contribution plan, employer discretionary contribution amount	$ 0.5	$ 0.5	$ 0.9	$ 1.0
UK Plan
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution, percent of match			5.00%
Defined contribution plan, maximum annual contributions per employee, percent			7.00%
Defined contribution plan, employer discretionary contribution amount	$ 0.1	$ 0.1	$ 0.2	$ 0.2
Defined contribution plan, employee matching contribution, percent of match			3.00%
Defined contribution plan, employer matching contribution, percent of employees' gross pay			1.00%

Leases - Supplemental Cash Flow Information related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$ 1,214	$ 1,289

Share-Based Compensation - Schedule of Estimated Fair Value of Weighted Average Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate	3.66%	2.43%
Weighted-average expected volatility	67.60%	61.30%
Expected term (in years)	5 years 7 months 6 days	4 years 6 months 18 days
Weighted average grant-date fair value per share of options granted	$ 9.28	$ 8.15

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Accrued goods and services	$ 10,078	$ 10,633
Accrued inventory purchases	4,744	3,189
Accrued customer rebates	11,061	13,797
Other	481	423
Accrued liabilities	$ 26,364	$ 28,042

Revenues from Contracts with Customers

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenues from contracts with customers

Note 15. Revenues from contracts with customers

Revenues consist primarily of revenues from the sale of hardware products with essential embedded software. Revenues also include amounts for software products, extended warranty on hardware products and subscription services. Substantially all products are sold through distributors and other channel partners, such as resellers and systems integrators.

The Company recognizes revenue to reflect the transfer of control of promised products or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for products or services.

The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

The Company identifies its distinct performance obligations under each contract. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. Hardware products with essential embedded software, software products, and purchased extended warranty on hardware products have been identified as separate and distinct performance obligations.

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring products or services to a customer. An adjustment to revenue is made to adjust the transaction price to exclude the consideration related to products expected to be returned. The Company records an asset at the carrying amount of the estimated stock returns and a liability for the estimated amount expected to be refunded to the customer. The transaction price also excludes other forms of consideration provided to the customer, such as volume-based rebates and co-operative marketing allowances.

The Company recognizes revenue when, or as, it satisfies a performance obligation by transferring control of a promised product or service to a customer. Revenue from hardware products with essential embedded software is recognized when control of the asset is transferred, which is typically at the time of shipment. Revenue from perpetual license software is recognized at the point in time that the customer is able to use or benefit from the software. Extended warranty on hardware products is a performance obligation that is satisfied over time, beginning on the effective date of the warranty period and ending on the expiration of the warranty period. The Company recognizes revenue on extended warranties on a straight-line basis over the warranty period. Revenue from software subscriptions is recognized ratably over the term in which the services are provided and the performance obligation is satisfied.

The Company enters into revenue arrangements that may consist of multiple performance obligations, such as hardware products and extended warranty. The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis for each distinct product or service in the contract. The best evidence of standalone selling price is the observable price of a product or service when the Company sells that product or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the transaction price allocated to each performance obligation using the expected costs plus a margin approach.

Disaggregation of revenues

Revenues by product category were as follows (unaudited and in thousands, except percentages):


	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2023				2022				2023
Point-to-Multi-Point	$	28,269	41	%	$	26,734	45	%	$	59,195	45	%	$	49,026	36	%
Point-to-Point		15,684	22	%		25,074	42	%		30,398	23	%		43,082	31	%
Enterprise		24,014	35	%		6,420	11	%		39,522	30	%		42,076	31	%
Other		1,329	2	%		1,314	2	%		2,077	2	%		2,759	2	%
Total Revenues	$	69,296	100	%	$	59,542	100	%	$	131,192	100	%	$	136,943	100	%

The Company’s products are predominately sold through third-party distributors and distributed through a third-party logistics provider with facilities in the United States, Netherlands and China. The Company has determined the geographical distribution of product revenues based upon the ship-to destinations specified by its distributor customers.

Revenues by geography were as follows (unaudited and in thousands, except percentages):


	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2023				2022				2023
North America	$	31,140	45	%	$	39,526	67	%	$	59,461	45	%	$	87,119	63	%
Europe, Middle East and Africa		21,281	31	%		6,769	11	%		41,613	32	%		26,477	19	%
Caribbean and Latin America		7,960	11	%		6,015	10	%		13,044	10	%		9,700	7	%
Asia Pacific		8,915	13	%		7,232	12	%		17,074	13	%		13,647	10	%
Total Revenues	$	69,296	100	%	$	59,542	100	%	$	131,192	100	%	$	136,943	100	%

Contract balances

The following table summarizes contract balances as of December 31, 2021 and June 30, 2023 (in thousands):


	December 31, 2022		June 30, 2023

Trade accounts receivable, net of allowance for credit losses	$	89,181	$	86,671
Deferred revenue - current		8,913		8,307
Deferred revenue - noncurrent		8,617		9,281
Refund liability	$	3,186	$	10,109

Deferred revenue consists of amounts due or received from customers in advance of the Company satisfying performance obligations under contractual arrangements. Deferred revenue is classified as current or noncurrent based on the timing of when revenue will be recognized. The changes in deferred revenue were due to normal timing differences between the Company’s performance and the customers’ payment.

The refund liability is the estimated amount expected to be refunded to customers in relation to product exchanges made as part of the Company’s stock rotation program and returns that have been authorized, but not yet received by the Company. The increase in the refund liability is driven by the higher expected stock rotations of enterprise products as the channel aligns its inventory position with market demand. It is included within Other current liabilities in the condensed consolidated balance sheets.

Receivables and concentration of credit risk

Trade accounts receivable represent amounts for which the Company has an unconditional right to payment. Amounts are in accordance with contractual terms and are recorded at face amount less an allowance for credit losses. The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivables. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity indicators for individual customers.

The Company considers the credit risk of all customers and regularly monitors credit risk exposure in its trade receivables. The Company’s standard credit terms with its customers are generally net 30 to 60 days. The Company had one customer representing more than 10% of trade receivables at December 31, 2022 and two customers representing more than 10% of trade receivables at June 30, 2023.

Remaining performance obligations

Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations included in a contract that are unsatisfied, or partially satisfied, as of the end of a period. As of December 31, 2022, deferred revenue (current and noncurrent) of $17.5 million represents the Company’s remaining performance obligations, of which $8.9 million is expected to be recognized within one year, with the remainder to be recognized thereafter. As of June 30, 2023, deferred revenue (current and noncurrent) of $17.6 million represents the Company’s remaining performance obligations, of which $8.3 million is expected to be recognized within one year, with the remainder to be recognized thereafter (unaudited).

Revenue recognized during the three-month and six-month periods ended June 30, 2023 which was previously included in deferred revenues as of December 31, 2022 was $2.1 million and $5.5 million, respectively, compared to $2.0 million and $4.0 million of revenue recognized during the three-month and six-month periods ended June 30, 2022, respectively, which was previously included in deferred revenues as of December 31, 2021 (unaudited).

Cost to obtain a contract

Sales commissions are incremental costs of obtaining a contract. The Company has elected to recognize these expenses as incurred, as the amortization period of these costs is one year or less.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Software

6 Months Ended

Jun. 30, 2023

Research and Development [Abstract]

Software

Note 4. Software

Software consisted of the following (in thousands):


		December 31, 2022							June 30, 2023
	Useful Life	Gross carrying amount		Accumulated amortization			Net balance		Gross carrying amount		Accumulated amortization			Net balance

Acquired and Software for internal use	3 to7 years	$	15,995	$	(15,326	)	$	669	$	16,453	$	(15,525	)	$	928
Software marketed for external sale	3 years		11,650		(3,880	)		7,770		14,683		(5,127	)		9,556
Total		$	27,645	$	(19,206	)	$	8,439	$	31,136	$	(20,652	)	$	10,484

Amortization of acquired and internal use software is computed using the straight-line method over an estimated useful life of generally three to seven years. Amortization expense recognized on acquired and internal use software is reflected in depreciation and amortization in the condensed consolidated statements of operations. Amortization expense was $0.1 million and $0.1 million for the three-month periods ended June 30, 2022 and 2023, respectively. Amortization expense was $0.3 million and $0.2 million for the six-month periods ended June 30, 2022 and 2023, respectively.

Amortization expense recognized on software to be sold or marketed externally was $0.4 million and $0.6 million for the three-month periods ended June 30, 2022 and 2023, respectively, and $0.7 million and $1.2 million for the six-month periods ended June 30, 2022 and 2023, respectively, and is included in cost of revenues on the condensed consolidated statements of operations.

Based on capitalized software assets at June 30, 2023, estimated amortization expense in future fiscal years is as follows (unaudited and in thousands):


Year ending December 31,	Acquired and internal use software		Software marketed for external use		Total
2023 (July - December)		180		1,516		1,696
2024		321		3,589		3,910
2025		272		2,762		3,034
2026		149		1,498		1,647
2027		6		191		197
Thereafter		—		—		—
Total amortization	$	928	$	9,556	$	10,484

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues	$ 59,542	$ 69,296	$ 136,943	$ 131,192
Cost of revenues	30,300	35,857	68,041	68,587
Gross profit	29,242	33,439	68,902	62,605
Operating expenses
Research and development	13,008	11,440	27,270	24,382
Sales and marketing	11,528	10,842	23,198	21,271
General and administrative	5,836	6,958	12,503	13,502
Depreciation and amortization	1,573	1,534	3,069	2,980
Total operating expenses	31,945	30,774	66,040	62,135
Operating income (loss)	(2,703)	2,665	2,862	470
Interest expense, net	579	407	1,176	904
Other (income) expense, net	64	(371)	218	(294)
Income (loss) before income taxes	(3,346)	2,629	1,468	(140)
Provision (benefit) for income taxes	(704)	307	(166)	(894)
Net income (loss)	$ (2,642)	$ 2,322	$ 1,634	$ 754
Earnings (loss) per share
Basic	$ (0.10)	$ 0.09	$ 0.06	$ 0.03
Diluted	$ (0.10)	$ 0.08	$ 0.06	$ 0.03
Weighted-average number of shares outstanding to compute net earnings (loss) per share
Basic	27,432,705	26,836,853	27,387,112	26,793,505
Diluted	27,432,705	27,588,772	28,315,457	27,917,728

Balance Sheet Components - Schedule of Change to Accrued Warranty (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Standard Product Warranty Disclosure [Abstract]
Beginning balance	$ 1,651	$ 1,731
Fulfillment of assumed acquisition warranty	(157)	(142)
Provision increase (decrease), net	(27)	62
Ending balance	$ 1,467	$ 1,651

Subsequent Events - Additional Information (Details) $ in Millions	Aug. 01, 2023 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Expected termination benefits, contract termination costs, and other associated costs	$ 2

Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

Note 16. Leases

The Company has operating leases for offices, vehicles and equipment. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets and are expensed on a straight-line basis over the lease term.

Right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s lease payments are typically fixed or contain fixed escalators. The Company’s leases typically include certain lock-in periods and renewal options to extend the lease but does not consider options to extend the lease it is not reasonably certain to exercise. The Company elected the practical expedient to not separate the lease and non-lease components of its leases and currently has no leases with options to purchase the leased property.

The components of lease expense were as follows and are included in general and administrative expense (unaudited and in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2023		2022		2023
Operating lease cost	$	592	$	613	$	1,201	$	1,185
Short-term lease cost		119		94		253		193
Variable lease costs		147		150		290		311
Total lease expense	$	858	$	857	$	1,744	$	1,689

Supplemental balance sheet information related to leases were as follows (in thousands, except lease term and discount rate):


	Balance Sheet Caption	December 31, 2022			June 30, 2023

Operating leases:
Operating lease assets	Operating lease assets	$	4,011		$	4,823
Current lease liabilities	Other current liabilities	$	1,930		$	1,940
Noncurrent lease liabilities	Noncurrent operating lease liabilities	$	2,170		$	3,033
Weighted average remaining lease term (years):
Operating leases			2.67			3.26
Weighted average discount rate:
Operating leases			6.11	%		6.30	%

Supplemental cash flow information related to leases were as follows (unaudited and in thousands):


	Six Months Ended June 30,
	2022		2023
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	1,289	$	1,214

The Company’s current lease terms range from one to five years and may include options to extend the lease by one to four years.

Remaining maturities on lease liabilities as of June 30, 2023 is as follows (unaudited and in thousands):


	Operating leases
2023 (July - December)		1,250
2024		1,592
2025		1,228
2026		814
2027		440
Thereafter		198
Total lease payments		5,522
Less: interest		549
Present value of lease liabilities	$	4,973

As of June 30, 2023, the Company had entered into an agreement for their new corporate headquarters in Illinois. The Company will recognize the right-of-use asset and lease liability upon commencement of the lease, which is expected in the third quarter of 2023 when the exact space to be leased is defined and the Company has access to the space.

Software - Schedule of Estimated Amortization Expense of Capitalized Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
2023 (July - December)	$ 1,696
2024	3,910
2025	3,034
2026	1,647
2027	197
Net balance	10,484	$ 8,439
Acquired and Internal Use Software
Finite Lived Intangible Assets [Line Items]
2023 (July - December)	180
2024	321
2025	272
2026	149
2027	6
Net balance	928
Software Marketed for External Use
Finite Lived Intangible Assets [Line Items]
2023 (July - December)	1,516
2024	3,589
2025	2,762
2026	1,498
2027	191
Net balance	$ 9,556

Business and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Research and Development
Business And Significant Accounting Policies [Line Items]
Increase (decrease) in operating expenses	$ 0.8	$ 1.7
Selling and Marketing Expenses
Business And Significant Accounting Policies [Line Items]
Increase (decrease) in operating expenses	0.3	0.5
General and Administrative Expenses
Business And Significant Accounting Policies [Line Items]
Increase (decrease) in operating expenses	$ (1.1)	$ (2.2)

Balance Sheet Components - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory, Net [Abstract]
Finished goods	$ 71,024	$ 50,052
Raw materials	20,116	15,010
Gross inventory	91,140	65,062
Less: Excess and obsolete provision	(8,792)	(7,994)
Inventories, net	$ 82,348	$ 57,068

Software (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Carrying Amount and Amortization of Software and Intangible Assets

The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands):


		December 31, 2022							June 30, 2023
	Useful Life	Gross carrying amount		Accumulated amortization			Net balance		Gross carrying amount		Accumulated amortization			Net balance

Customer relationships	5 - 18 years		19,300		(10,127	)		9,173		19,300		(10,876	)		8,424
Total		$	19,300	$	(10,127	)	$	9,173	$	19,300	$	(10,876	)	$	8,424

Schedule of Estimated Amortization Expense of Capitalized Software and Intangible Assets

Based on capitalized intangible assets as of June 30, 2023, estimated amortization expense amounts in future fiscal years are as follows (unaudited and in thousands):


Year ending December 31,	Amortization
2023 (July - December)		749
2024		1,498
2025		1,498
2026		1,498
2027		1,498
Thereafter		1,683
Total amortization	$	8,424

Capitalized Software Assets

Schedule of Carrying Amount and Amortization of Software and Intangible Assets

Software consisted of the following (in thousands):


		December 31, 2022							June 30, 2023
	Useful Life	Gross carrying amount		Accumulated amortization			Net balance		Gross carrying amount		Accumulated amortization			Net balance

Acquired and Software for internal use	3 to7 years	$	15,995	$	(15,326	)	$	669	$	16,453	$	(15,525	)	$	928
Software marketed for external sale	3 years		11,650		(3,880	)		7,770		14,683		(5,127	)		9,556
Total		$	27,645	$	(19,206	)	$	8,439	$	31,136	$	(20,652	)	$	10,484

Schedule of Estimated Amortization Expense of Capitalized Software and Intangible Assets

Based on capitalized software assets at June 30, 2023, estimated amortization expense in future fiscal years is as follows (unaudited and in thousands):


Year ending December 31,	Acquired and internal use software		Software marketed for external use		Total
2023 (July - December)		180		1,516		1,696
2024		321		3,589		3,910
2025		272		2,762		3,034
2026		149		1,498		1,647
2027		6		191		197
Thereafter		—		—		—
Total amortization	$	928	$	9,556	$	10,484

Earnings (loss) per share - Computation of Basic and Diluted Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net (loss) income	$ (2,642)	$ 2,322	$ 1,634	$ 754
Denominator:
Basic weighted average shares outstanding	27,432,705	26,836,853	27,387,112	26,793,505
Dilutive effect of share option awards		560,263	711,996	892,072
Dilutive effect of RSUs		187,826	212,160	223,752
Dilutive effect of employee share purchase plan		3,830	4,189	8,399
Diluted weighted average shares outstanding	27,432,705	27,588,772	28,315,457	27,917,728
Net (loss) earnings per share, basic	$ (0.10)	$ 0.09	$ 0.06	$ 0.03
Net (loss) earnings per share, diluted	$ (0.10)	$ 0.08	$ 0.06	$ 0.03

Business and Significant Accounting Policies (Policies)	6 Months Ended
Business and Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements include the accounts of Cambium Networks Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of June 30, 2023, and for the three-month and six-month periods ended June 30, 2022 and 2023, and the related notes are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements, and, in the opinion of management, reflect all adjustments, which comprise only normal recurring adjustments necessary to state fairly the Company’s financial position as of June 30, 2023 and results of operations for the three-month and six-month periods ended June 30, 2022 and 2023 and cash flows for the six-month periods ended June 30, 2022 and 2023. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and related notes thereto for the year ended December 31, 2022 included in the Company’s annual report on Form 10-K and filed with the SEC on February 27, 2023. The results of operations for the three-month and six-month periods ended June 30, 2023 are not necessarily indicative of the operating results to be expected for the full year. In 2022, management determined that certain costs previously included as general and administrative expenses related to other functions of the business. Prior periods have been revised to reflect the allocation of these costs to their respective functions. These costs primarily include facility costs such as leased space and shared IT costs. Revisions were made to increase research and development expense by $0.8 million and selling and marketing expense by $0.3 million and decrease general and administrative expense by $1.1 million for the three-month period ended June 30, 2022. Revisions were made to increase research and development expense by $1.7 million and selling and marketing expense by $0.5 million and decrease general and administrative expense by $2.2 million for the six-month period ended June 30, 2022.
Update to Significant Accounting Policies	Update to Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies disclosed in the 2022 Form 10-K, Part II, Item 8.

Share Capital - Shares (Tables)

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Shares (Share Capital Activity)

The following table reflects the share capital activity (unaudited):


	Number of shares			Par value (in thousands)
Balance at December 31, 2022		27,313,273		$	3
Issuance of ordinary shares under employee share purchase plan		88,290			—
Issuance of vested shares		177,396			—
Share options exercised		59,112			—
Shares withheld for net settlement of shares issued		(35,043	)		—
Balance at June 30, 2023		27,603,028		$	3

Leases - Additional Information (Details)	6 Months Ended
Leases - Additional Information (Details)	Jun. 30, 2023
Leases [Line Items]
Lessee operating lease option to extend	true
Lessee not yet commenced, description	As of June 30, 2023, the Company had entered into an agreement for their new corporate headquarters in Illinois. The Company will recognize the right-of-use asset and lease liability upon commencement of the lease, which is expected in the third quarter of 2023 when the exact space to be leased is defined and the Company has access to the space.
Minimum
Leases [Line Items]
Lessee operating lease term of contract	1 year
Lessee operating lease option to extend period	1 year
Maximum
Leases [Line Items]
Lessee operating lease term of contract	5 years
Lessee operating lease option to extend period	4 years

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 31,978	$ 48,162
Receivables, net of allowances of $577 and $600	86,819	89,321
Inventories, net	82,348	57,068
Recoverable income taxes	98	117
Prepaid expenses	8,042	11,857
Other current assets	9,020	6,464
Total current assets	218,305	212,989
Noncurrent assets
Property and equipment, net	11,375	11,271
Software, net	10,484	8,439
Operating lease assets	4,823	4,011
Intangible assets, net	8,424	9,173
Goodwill	9,842	9,842
Deferred tax assets, net	16,106	12,782
Other noncurrent assets	929	955
TOTAL ASSETS	280,288	269,462
Current liabilities
Accounts payable	30,067	31,284
Accrued liabilities	26,364	28,042
Employee compensation	5,852	7,394
Current portion of long-term external debt, net	3,166	3,158
Deferred revenues	8,307	8,913
Other current liabilities	15,323	8,429
Total current liabilities	89,079	87,220
Noncurrent liabilities
Long-term external debt, net	23,212	24,463
Deferred revenues	9,281	8,617
Noncurrent operating lease liabilities	3,033	2,170
Other noncurrent liabilities	1,632	1,619
Total liabilities	126,237	124,089
Shareholders' equity
Share capital; $0.0001 par value; 500,000,000 shares authorized at December 31, 2022 and June 30, 2023; 27,522,734 shares issued and 27,313,273 outstanding at December 31, 2022 and 27,847,532 shares issued and 27,603,028 outstanding at June 30, 2023	3	3
Additional paid in capital	146,528	138,997
Treasury shares, at cost, 209,461 shares at December 31, 2022 and 244,504 shares at June 30, 2023	(5,509)	(4,922)
Accumulated earnings	14,456	12,822
Accumulated other comprehensive loss	(1,427)	(1,527)
Total shareholders' equity	154,051	145,373
TOTAL LIABILITIES AND EQUITY	$ 280,288	$ 269,462

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Note 5. Goodwill and Intangible Assets

There was no change in the carrying amount of goodwill during the three-month period ended June 30, 2023 (unaudited).

The Company tests goodwill and intangible assets for impairment annually on December 31 and more frequently if impairment indicators exist. Accordingly, the Company performs quarterly qualitative assessments of significant events and circumstances such as a reporting unit’s historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors and macro-economic developments, to determine the existence of potential indicators of impairment and assess if it is more likely than not that the fair value of the reporting unit or intangible asset is less than their carrying value. If indicators of impairment are identified, a quantitative impairment test is performed.

The qualitative assessment for the quarter did not indicate the existence of impairment indicators. Based on the operating results for the three-month period ended June 30, 2023 and other considerations, the Company believes that it is more likely than not that the enterprise value for its one reporting unit and the fair value of intangibles is still greater than their carrying values. Accordingly, no goodwill impairment indicators were present at June 30, 2023 that would necessitate an interim impairment assessment.

The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands):


		December 31, 2022							June 30, 2023
	Useful Life	Gross carrying amount		Accumulated amortization			Net balance		Gross carrying amount		Accumulated amortization			Net balance

Customer relationships	5 - 18 years		19,300		(10,127	)		9,173		19,300		(10,876	)		8,424
Total		$	19,300	$	(10,127	)	$	9,173	$	19,300	$	(10,876	)	$	8,424

Intangible assets are amortized over their expected useful life and none are expected to have a significant residual value at the end of their useful life. Intangible assets amortization expense was $0.4 million and $0.4 million for the three-month periods ended June 30, 2022 and 2023, respectively, and $0.8 million and $0.8 million for the six-month periods ended June 30, 2022 and 2023, respectively.

Based on capitalized intangible assets as of June 30, 2023, estimated amortization expense amounts in future fiscal years are as follows (unaudited and in thousands):


Year ending December 31,	Amortization
2023 (July - December)		749
2024		1,498
2025		1,498
2026		1,498
2027		1,498
Thereafter		1,683
Total amortization	$	8,424

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense of Capitalized Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]
2023 (July - December)	$ 749
2024	1,498
2025	1,498
2026	1,498
2027	1,498
Thereafter	1,683
Total amortization	$ 8,424	$ 9,173

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 01, 2023	May 31, 2023	Jun. 30, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted						115,811
Share-based compensation income tax benefits				$ 0	$ 300	$ 100	$ 500
Share-based compensation expense						$ 5,937	4,937
Forfeiture rate utilized for estimating forfeitures of options granted						8.20%
Unrecognized pre-tax share based compensation expense related to unvested share option awards				$ 9,600		$ 9,600
Shares vested						177,621
Perforamance awards issued				625,891		625,891		696,990
Employee Share Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of outstanding shares added annually			275,000
Percentage of outstanding shares			1.00%
Share-based compensation expense				$ 200	$ 300	$ 500	$ 500
Percentage of purchase price shares on first trading day of offering period and purchase date			85.00%
Number of additional shares available under ESPP	273,133
Shares issued under the ESPP				88,290	87,229	88,290	87,229
Time-based Share Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share options contractual term						10 years
Share options vesting period						4 years
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Forfeiture rate utilized for estimating forfeitures of options and restricted share units granted						8.20%
Unrecognized pre-tax compensation expense, net of estimated forfeitures				$ 9,200		$ 9,200
Vesting period of restricted shares						4 years
Share-based payment award, requisite service period						4 years
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Perforamance awards issued		135,000
Performance options issued		60,000
Performance Shares \| Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized pre-tax compensation expense, net of estimated forfeitures				$ 1,300		$ 1,300
Shares vesting, percentage		50.00%
Perforamance awards issued				67,500		67,500
Performance options issued				30,000		30,000
Performance Shares \| Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted						67,500
Unrecognized pre-tax compensation expense, net of estimated forfeitures				$ 1,200		$ 1,200
Shares vesting, percentage		50.00%
Performance options issued				30,000		30,000
2019 Share Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized	1,320,000
Percentage of outstanding shares			5.00%
2019 Share Incentive Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of outstanding shares added annually			1,320,000
2019 Share Incentive Plan \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares vested						177,621
Shares to pay employees' portion of minimum payroll withholding taxes						35,043

Segment Information - Additional Information (Details)	6 Months Ended
Segment Information - Additional Information (Details)	Jun. 30, 2023 Segment
Segment Reporting [Abstract]
Number of reporting segments	1
Number of operating segment	1

Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income taxes

Note 12. Income taxes

The Company’s provision for income taxes is based upon the estimated annual tax rate for the year applied to federal, state and foreign income. The Company recorded a provision for income taxes of $0.3 million for the three-month period ended June 30, 2022 and a benefit for income taxes of $0.7 million for the three-month period ended June 30, 2023, with an effective tax rate of 11.7% and 21.0%, respectively. In the three-month period ended June 30, 2022, the effective tax rate of 11.7% was different from the statutory rate of 21.0%, primarily due to tax benefits arising on Research and Development tax credits, Foreign Derived Intangible Income, and the revaluing of UK deferred tax assets at a higher future tax rate. For the three-month period ended June 30, 2023, the Company’s effective tax rate of 21.0% was not materially different from the statutory rate of 21.0%.

In the six-month periods ended June 30, 2022 and 2023, the Company recorded a tax benefit of $0.9 million and $0.2 million, respectively, with an effective income tax rate of 638.6% and (11.3)%, respectively. For the six-month period ended June 30, 2022, the effective income tax rate of 638.6% was different from the statutory rate of 21.0%, primarily due to tax benefits arising on Research and Development tax credits, Foreign Derived Intangible Income, and the revaluing of UK deferred tax assets at a higher future tax rate. For the six-month period ended June 30, 2023, the effective income tax rate of (11.3)% was different from the statutory rate of 21.0%, primarily due to Foreign Derived Intangible Income, tax benefits arising on Research and Development tax credits, and the revaluing of UK deferred tax assets at a higher future tax rate.

In applying the statutory tax rate in the effective income tax rate reconciliation, the Company used the statutory U.S. federal income tax rate of 21% rather than the Cayman Islands zero percent rate.

The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for a valuation allowance on a quarterly basis.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
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-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Share Capital - Shares - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares
Stockholders' Equity Note [Abstract]
Common stock dividends declared	$ 0
Common stock dividends paid	$ 0

Software - Schedule of Software (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 31,136	$ 27,645
Accumulated amortization	(20,652)	(19,206)
Net balance	10,484	8,439
Acquired and Software for Internal Use
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	16,453	15,995
Accumulated amortization	(15,525)	(15,326)
Net balance	$ 928	669
Acquired and Software for Internal Use \| Minimum
Finite Lived Intangible Assets [Line Items]
Useful Life	3 years
Acquired and Software for Internal Use \| Maximum
Finite Lived Intangible Assets [Line Items]
Useful Life	7 years
Software Marketed for External Sale
Finite Lived Intangible Assets [Line Items]
Useful Life	3 years
Gross carrying amount	$ 14,683	11,650
Accumulated amortization	(5,127)	(3,880)
Net balance	$ 9,556	$ 7,770

Related Party Transactions - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Vector Capital Management L.P.
Related Party Transaction [Line Items]
Related party transactions	$ 0	$ 0

Balance Sheet Components (Tables)

6 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Schedule of Inventories, Net

Inventories, net consisted of the following (in thousands):


	December 31,			June 30,
	2022			2023

Finished goods	$	50,052		$	71,024
Raw materials		15,010			20,116
Gross inventory		65,062			91,140
Less: Excess and obsolete provision		(7,994	)		(8,792	)
Inventories, net	$	57,068		$	82,348

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	December 31,		June 30,
	2022		2023

Accrued goods and services	$	10,633	$	10,078
Accrued inventory purchases		3,189		4,744
Accrued customer rebates		13,797		11,061
Other		423		481
Accrued liabilities	$	28,042	$	26,364

Schedule of Change to Accrued Warranty

Provisions for warranty claims are primarily related to our hardware products and are recorded at the time products are sold. The change to accrued warranty was as follows (in thousands):


	Year ended December 31,			Six months ended June 30,
	2022			2023

Beginning balance	$	1,731		$	1,651
Fulfillment of assumed acquisition warranty		(142	)		(157	)
Provision increase (decrease), net		62			(27	)
Ending balance	$	1,651		$	1,467

Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Total cost	$ 41,141	$ 38,879
Less: Accumulated depreciation	(29,766)	(27,608)
Property and equipment, net	11,375	11,271
Equipment and Tooling
Property Plant And Equipment [Line Items]
Total cost	$ 34,665	$ 33,026
Equipment and Tooling \| Minimum
Property Plant And Equipment [Line Items]
Useful Life	3 years	3 years
Equipment and Tooling \| Maximum
Property Plant And Equipment [Line Items]
Useful Life	5 years	5 years
Computer Equipment
Property Plant And Equipment [Line Items]
Total cost	$ 5,126	$ 4,572
Computer Equipment \| Minimum
Property Plant And Equipment [Line Items]
Useful Life	3 years	3 years
Computer Equipment \| Maximum
Property Plant And Equipment [Line Items]
Useful Life	5 years	5 years
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Useful Life	10 years	10 years
Total cost	$ 829	$ 809
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total cost	$ 521	$ 472
Leasehold Improvements \| Minimum
Property Plant And Equipment [Line Items]
Useful Life	2 years	2 years
Leasehold Improvements \| Maximum
Property Plant And Equipment [Line Items]
Useful Life	3 years	3 years

Employee Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Employee benefit plans

Note 7. Employee benefit plans

The Company’s employee benefit plans currently consist of a retirement plan in the United States and a separate defined contribution plan in the UK. The Company does not offer any other postretirement benefit plans, such as retiree medical and dental benefits or deferred compensation agreements to its employees or officers.

U.S. plan

U.S. employees that satisfy certain eligibility requirements, including requirements related to age and length of service, are eligible to participate in the Cambium Networks, Inc. 401(k) Plan. The plan is intended to qualify as a tax-qualified 401(k) plan so that contributions to the 401(k) plan, and income earned on such contributions, are not taxable to participants until withdrawn or distributed from the 401(k) plan. Under the 401(k) plan, each employee is fully vested in his or her deferred salary contributions. Employee contributions are held and invested by the plan’s trustee as directed by participants. Under the Cambium Networks, Inc. 401(k) Plan, the Company matches 100% of employee contributions to the 401(k) plan up to a maximum amount of 4% of eligible wages, which matching contributions are subject to vesting in equal annual increments over two years of service. All contributions, including the Company match, are made in cash. Contributions made by the Company under the Cambium Networks, Inc. 401(k) Plan were $0.5 million and $0.5 million for the three-month periods ended June 30, 2022 and 2023, respectively, and $1.0 million and $0.9 million for the six-month periods ended June 30, 2022 and 2023, respectively.

UK plan

UK employees who satisfy certain eligibility requirements are eligible to participate in the Cambium Networks Ltd. Stakeholder Pension Scheme, which is a qualified defined contribution plan. Employees are eligible to participate on the first of the month following receipt of their enrollment form, and eligible employees are automatically enrolled in the plan at a default employee contribution rate of 3% of eligible compensation and a company contribution rate of 5% of the employee’s basic salary. The Company contribution rate increases by 1% for each additional 1% that the employee contributes up to a maximum of 7%. Company matching contributions vest immediately and employees are always vested in their own contributions. All contributions, including the Company match, are made in cash and deposited in the participant’s account each pay period. The total contributed by the Company under this plan was $0.1 million and $0.1 million for the three-month periods ended June 30, 2022 and 2023, respectively, and $0.2 million and $0.2 million for the six-month periods ended June 30, 2022 and 2023, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
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-Name Accounting Standards Codification
-Section 55
-Paragraph 17
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-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//715/tableOfContent

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 1
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,000	$ 1,000	$ 2,124	$ 1,853

Revenues from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenues by Product Category

Revenues by product category were as follows (unaudited and in thousands, except percentages):


	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2023				2022				2023
Point-to-Multi-Point	$	28,269	41	%	$	26,734	45	%	$	59,195	45	%	$	49,026	36	%
Point-to-Point		15,684	22	%		25,074	42	%		30,398	23	%		43,082	31	%
Enterprise		24,014	35	%		6,420	11	%		39,522	30	%		42,076	31	%
Other		1,329	2	%		1,314	2	%		2,077	2	%		2,759	2	%
Total Revenues	$	69,296	100	%	$	59,542	100	%	$	131,192	100	%	$	136,943	100	%

Schedule of Revenue by Geography

Revenues by geography were as follows (unaudited and in thousands, except percentages):


	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2023				2022				2023
North America	$	31,140	45	%	$	39,526	67	%	$	59,461	45	%	$	87,119	63	%
Europe, Middle East and Africa		21,281	31	%		6,769	11	%		41,613	32	%		26,477	19	%
Caribbean and Latin America		7,960	11	%		6,015	10	%		13,044	10	%		9,700	7	%
Asia Pacific		8,915	13	%		7,232	12	%		17,074	13	%		13,647	10	%
Total Revenues	$	69,296	100	%	$	59,542	100	%	$	131,192	100	%	$	136,943	100	%

Summary of Contract Balances

The following table summarizes contract balances as of December 31, 2021 and June 30, 2023 (in thousands):


	December 31, 2022		June 30, 2023

Trade accounts receivable, net of allowance for credit losses	$	89,181	$	86,671
Deferred revenue - current		8,913		8,307
Deferred revenue - noncurrent		8,617		9,281
Refund liability	$	3,186	$	10,109

Business and Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Business and significant accounting policies

Note 1. Business and significant accounting policies

Business

Cambium Networks Corporation (“Cambium” or “Cambium Networks” or the “Company”), incorporated under the laws of the Cayman Islands, is a holding company whose principal operating entities are Cambium Networks, Ltd. (UK), Cambium Networks, Inc. (USA), and Cambium Networks Private Limited (India). On June 26, 2019, the Company completed an Initial Public Offering and the Company's ordinary shares began trading on the Nasdaq Global Markets.

Cambium Networks Corporation and its wholly owned subsidiaries design, develop, and manufacture wireless and fiber broadband and enterprise networking infrastructure solutions that are used by businesses, governments, and service providers in urban, suburban and rural environments. Cambium's products simplify and automate the design, deployment, optimization, and management of broadband and Wi-Fi access networks through intelligent automation.

Basis of Presentation

The unaudited condensed consolidated financial statements include the accounts of Cambium Networks Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The condensed consolidated financial statements as of June 30, 2023, and for the three-month and six-month periods ended June 30, 2022 and 2023, and the related notes are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements, and, in the opinion of management, reflect all adjustments, which comprise only normal recurring adjustments necessary to state fairly the Company’s financial position as of June 30, 2023 and results of operations for the three-month and six-month periods ended June 30, 2022 and 2023 and cash flows for the six-month periods ended June 30, 2022 and 2023. The condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. The condensed consolidated financial statements contained herein should be read in conjunction with the consolidated financial statements and related notes thereto for the year ended December 31, 2022 included in the Company’s annual report on Form 10-K and filed with the SEC on February 27, 2023. The results of operations for the three-month and six-month periods ended June 30, 2023 are not necessarily indicative of the operating results to be expected for the full year.

In 2022, management determined that certain costs previously included as general and administrative expenses related to other functions of the business. Prior periods have been revised to reflect the allocation of these costs to their respective functions. These costs primarily include facility costs such as leased space and shared IT costs. Revisions were made to increase research and development expense by $0.8 million and selling and marketing expense by $0.3 million and decrease general and administrative expense by $1.1 million for the three-month period ended June 30, 2022. Revisions were made to increase research and development expense by $1.7 million and selling and marketing expense by $0.5 million and decrease general and administrative expense by $2.2 million for the six-month period ended June 30, 2022.

Update to Significant Accounting Policies

There have been no material changes to the Company’s significant accounting policies disclosed in the 2022 Form 10-K, Part II, Item 8.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Note 13. Commitments and contingencies

In accordance with ASC 460, Guarantees, the Company recognizes the fair value for guarantee and indemnification arrangements it issues or modifies, if these arrangements are within the scope of the interpretation. In addition, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications in order to identify if a loss has incurred. If the Company determines it is probable that a loss has occurred, then any such estimated loss would be recognized under those guarantees and indemnifications and would be recognized in the Company’s condensed consolidated statements of operations and corresponding condensed consolidated balance sheets during that period.

Indemnification

The Company generally indemnifies its customers against claims brought by a third party to the extent any such claim alleges that the Company’s product infringes a patent, copyright or trademark or violates any other proprietary rights of that third party. The maximum potential amount of future payments the Company may be required to make under these indemnification agreements is not estimable.

The Company indemnifies its directors and officers and select key employees, including key employees serving as directors or officers of the Company’s subsidiaries, for certain events or occurrences, subject to certain limits, while the director or officer is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the director’s or officer’s term of service. The Company may terminate the indemnification agreements with its directors, officers or key employees upon the termination of their services as directors or officers of the Company or its subsidiaries, or the termination of activities for which indemnification has been provided, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that limits its exposure. The Company believes the fair value of these indemnification agreements is minimal.

Purchase commitments with contract manufacturers and suppliers

We purchase components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that allow them to procure inventory and components based upon criteria as defined by us, such as forecasted demand. The Company may be liable to purchase excess product or aged material or components from our suppliers following reasonable mitigation efforts.

Warranties

The Company offers a standard warranty on its products, with the term depending on the product, and records a liability for the estimated future costs associated with potential warranty claims. The Company’s responsibility under its standard warranty is the repair or replacement of in-warranty defective product, or to credit the purchase price of the defective product, at its discretion, without charge to the customer. The Company’s estimate of future warranty costs is largely based on historical experience factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. The standard warranty is included in either Other current liabilities or Other noncurrent liabilities on its condensed consolidated balance sheets, depending on the time period covered by the warranty. The Company also offers an extended warranty for purchase that represents a future performance obligation for the Company. The extended warranty is included in deferred revenues (both current and noncurrent) on the condensed consolidated balance sheets and recognized on a straight-line basis over the term of the extended warranty. The warranty costs are reflected in the Company’s condensed consolidated statements of operations within cost of revenues.

Legal proceedings

Third parties may from time to time assert legal claims against the Company. The Company records accruals for loss contingencies to the extent that it concludes it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. The Company evaluates, on a regular basis, developments in legal proceedings and other matters that could cause a change in amounts recorded. Due to the inherent uncertainty involving legal matters, the ultimate resolution could differ from amounts recorded. There is no pending or threatened legal proceedings to which the Company is a party, that in the Company’s opinion, is likely to have a material adverse effect on its financial condition or results of operations.

Earnings (loss) per share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Earnings Per Share

Performance-based share awards are only included in the calculation of diluted earnings per share if the performance metric would have been achieved as of June 30, 2023 if that had been the end of the contingency period. The following table sets forth the computation of basic and diluted net earnings per share (unaudited and in thousands, except for share and per share data):


	Three Months Ended June 30,					Six Months Ended June 30,
	2022		2023			2022		2023
Numerator:
Net (loss) income	$	2,322	$	(2,642	)	$	754	$	1,634
Denominator:
Basic weighted average shares outstanding		26,836,853		27,432,705			26,793,505		27,387,112
Dilutive effect of share option awards		560,263		—			892,072		711,996
Dilutive effect of RSUs		187,826		—			223,752		212,160
Dilutive effect of employee share purchase plan		3,830		—			8,399		4,189
Diluted weighted average shares outstanding		27,588,772		27,432,705			27,917,728		28,315,457
Net (loss) earnings per share, basic	$	0.09	$	(0.10	)	$	0.03	$	0.06
Net (loss) earnings per share, diluted	$	0.08	$	(0.10	)	$	0.03	$	0.06

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Schedule Of Income Taxes [Line Items]
Provision (benefit) for income taxes	$ (704)	$ 307	$ (166)	$ (894)
Effective tax rate	21.00%	11.70%	(11.30%)	638.60%
Statutory rate	21.00%	21.00%	21.00%	21.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Earnings (loss) per share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings (loss) per share

Note 11. Earnings (loss) per share

Basic net earnings (loss) per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net earnings per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period. For purposes of this calculation, share options, RSUs, and ESPP awards are considered to be ordinary share equivalents but are excluded from the calculation of diluted earnings per share when including them would have an anti-dilutive effect. Performance-based share awards are only included in the calculation of diluted earnings per share if the performance metric would have been achieved as of June 30, 2023 if that had been the end of the contingency period. The following table sets forth the computation of basic and diluted net earnings per share (unaudited and in thousands, except for share and per share data):


	Three Months Ended June 30,					Six Months Ended June 30,
	2022		2023			2022		2023
Numerator:
Net (loss) income	$	2,322	$	(2,642	)	$	754	$	1,634
Denominator:
Basic weighted average shares outstanding		26,836,853		27,432,705			26,793,505		27,387,112
Dilutive effect of share option awards		560,263		—			892,072		711,996
Dilutive effect of RSUs		187,826		—			223,752		212,160
Dilutive effect of employee share purchase plan		3,830		—			8,399		4,189
Diluted weighted average shares outstanding		27,588,772		27,432,705			27,917,728		28,315,457
Net (loss) earnings per share, basic	$	0.09	$	(0.10	)	$	0.03	$	0.06
Net (loss) earnings per share, diluted	$	0.08	$	(0.10	)	$	0.03	$	0.06

In the computation of diluted earnings per share for the three-month and six-month periods ended June 30, 2022, the Company did not include any share equivalents because their inclusion would have been antidilutive. In the computation of diluted earnings per share for the three-month and six-month periods ended June 30, 2023, 1,762,872 ordinary share equivalents and 1,708,983 ordinary share equivalents, respectively, were excluded because their inclusion would have been antidilutive (unaudited).

Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 18. Subsequent Events

On August 1, 2023, the Company announced and initiated a corporate cost reduction to better align Cambium's cost structure with current economic conditions and position the Company to achieve near-term and long-term targets to maintain profitability, improve cash flow and maintain a strong balance sheet. The Company expects to incur approximately $2.0 million in costs, primarily related to one-time termination benefits, contract termination costs, and other associated costs, the majority of which will be incurred in the third quarter of 2023, and expects all costs incurred and cost reductions to be completed by the end of the fourth quarter of 2023.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based compensation included in costs and expenses	$ 3,062	$ 2,517	$ 5,937	$ 4,937
Cost of Revenues
Share-based compensation included in costs and expenses	59	50	115	107
Research and Development
Share-based compensation included in costs and expenses	1,388	1,011	2,657	2,033
Selling and Marketing
Share-based compensation included in costs and expenses	728	578	1,428	1,205
General and Administrative
Share-based compensation included in costs and expenses	$ 887	$ 878	$ 1,737	$ 1,592

Revenues from Contracts with Customers - Summary of Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Trade accounts receivable, net of allowance for credit losses	$ 86,671	$ 89,181
Deferred revenue - current	8,307	8,913
Deferred revenue - noncurrent	9,281	8,617
Refund liability	$ 10,109	$ 3,186

Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions

Note 17. Related party transactions

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal.

For the three-month and six-month periods ended June 30, 2022 and 2023, the Company did not have any material related party transactions to disclose (unaudited).

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
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-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Section 50
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-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Paragraph 1
-Subparagraph (d)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Leases - Supplemental Balance Sheet Information related to Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating leases:
Operating lease assets	$ 4,823	$ 4,011
Current lease liabilities	$ 1,940	$ 1,930
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Noncurrent operating lease liabilities	$ 3,033	$ 2,170
Weighted average remaining lease term (years):
Operating leases	3 years 3 months 3 days	2 years 8 months 1 day
Weighted average discount rate:
Operating leases	6.30%	6.11%

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	CMBM
Entity Registrant Name	CAMBIUM NETWORKS CORP
Entity Central Index Key	0001738177
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,605,505
Entity Current Reporting Status	Yes
Entity File Number	001-38952
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	3800 Golf Road
Entity Address, Address Line Two	Suite 360
Entity Address, City or Town	Rolling Meadows
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60008
City Area Code	345
Local Phone Number	814-7600
Entity Incorporation State Country Code	E9
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Ordinary shares, $0.0001 par value
Security Exchange Name	NASDAQ

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowances for receivables	$ 600	$ 577
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	27,847,532	27,522,734
Common stock, shares, outstanding	27,603,028	27,313,273
Treasury stock, shares	244,504	209,461

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following is a summary of option activity for the Company’s share incentive plans for the six-month period ended June 30, 2023 (unaudited):


	Options			Weighted average exercise price		Weighted Average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at December 31, 2022		3,395,219		$	13.83		7.6	$	28,985,969
Options granted1		80,000		$	15.00		—	$	—
Options exercised		(59,112	)	$	8.31		—	$	—
Options expired		(3,313	)	$	12.00		—	$	—
Options forfeited		(1,312	)	$	12.00		—	$	—
Outstanding at June 30, 2023		3,411,482		$	13.95		7.2	$	8,971,974
Options exercisable at June 30, 2023		2,276,431		$	12.84		6.6	$	7,758,912
Options vested and expected to vest at June 30, 2023		3,345,167		$	13.93		7.2	$	8,903,786

1 Options granted includes the time-based share options and the performance-based share options for which a grant date has been established, as described below.

Schedule of Estimated Fair Value of Weighted Average Assumptions

The fair value of share options is estimated using the following weighted-average assumptions (unaudited):


	Six Months Ended June 30,
	2022			2023
Expected dividend yield		—			—
Risk-free interest rate		2.43	%		3.66	%
Weighted-average expected volatility		61.3	%		67.6	%
Expected term (in years)		4.55			5.60
Weighted average grant-date fair value per share of options granted	$	8.15		$	9.28

Summary of Restricted Shares Activity

The following is a summary of restricted shares activity for the Company’s share incentive plan for the six-month period ended June 30, 2023 (unaudited):


	Units			Weighted average grant date fair value
RSU balance at December 31, 2022		696,990		$	18.22
RSUs granted1		115,811		$	15.51
RSUs vested		(177,621	)	$	16.27
RSUs forfeited		(9,289	)	$	18.14
RSU balance at June 30, 2023		625,891		$	18.25

1 RSUs granted includes the time-based RSUs and the performance-based RSUs for which a grant date has been established, as described below.

Of the

Leases - Remaining Maturities on Lease Liabilities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Leases [Abstract]
2023 (July - December)	$ 1,250
2024	1,592
2025	1,228
2026	814
2027	440
Thereafter	198
Total lease payments	5,522
Less: interest	549
Present value of lease liabilities	$ 4,973

Goodwill and Intangible Assets - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) Unit	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Adjustments to carrying value of goodwill	$ 0
Number of reporting unit \| Unit	1
Impairment of goodwill			$ 0
Amortization expense	$ 400,000	$ 400,000	$ 800,000	$ 800,000

Debt - Schedule of Maturities on External Debt Outstanding (Details) - BofA Credit Agreement $ in Thousands	Jun. 30, 2023 USD ($)
Debt Instrument [Line Items]
2023 (July- December)	$ 1,312
2024	2,625
2025	2,625
2026	19,500
Total	$ 26,062

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Share-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-based compensation

Note 9. Share-based compensation

2019 Share incentive plan

In June 2019, the Company’s Board of Directors adopted, and its shareholders approved, the 2019 Share Incentive Plan (“2019 Plan”). The 2019 Plan provides for the grant of incentive share options, nonqualified share options, share appreciation rights, restricted share awards (“RSAs”), restricted share units (“RSUs”), other share-based awards and performance awards. The share reserve under the 2019 Plan is automatically increased on the first day of each fiscal year, beginning with the fiscal year ended December 31, 2020 and continuing until, and including, the fiscal year ending December 31, 2029. The number of shares added annually is equal to the lowest of 1,320,000 shares, 5% of the number of the Company’s shares outstanding on the first day of such fiscal year, or an amount determined by the Board of Directors. On March 1, 2023, the Company registered 1,320,000 additional shares that may be issued under the 2019 Plan.

The Company’s employees, officers, directors, consultants, and advisors are eligible to receive awards under the 2019 Plan. Incentive share options, however, may only be granted to the Company's employees.

For the three-month periods ended June 30, 2022 and 2023, the Company recorded corresponding income tax benefits of $0.3 million and $0.0 million, respectively, and for the six-month periods ended June 30, 2022 and 2023, the Company recorded corresponding income tax benefits of $0.5 million and $0.1 million, respectively.

Share options

The Company's time-based share options typically have a contractual term of ten years from grant date and typically vest over a four-year period. The Company recognized compensation expense associated with its time-based share options on a straight-line basis over the requisite service period.

The following is a summary of option activity for the Company’s share incentive plans for the six-month period ended June 30, 2023 (unaudited):


	Options			Weighted average exercise price		Weighted Average remaining contractual term (years)		Aggregate intrinsic value
Outstanding at December 31, 2022		3,395,219		$	13.83		7.6	$	28,985,969
Options granted1		80,000		$	15.00		—	$	—
Options exercised		(59,112	)	$	8.31		—	$	—
Options expired		(3,313	)	$	12.00		—	$	—
Options forfeited		(1,312	)	$	12.00		—	$	—
Outstanding at June 30, 2023		3,411,482		$	13.95		7.2	$	8,971,974
Options exercisable at June 30, 2023		2,276,431		$	12.84		6.6	$	7,758,912
Options vested and expected to vest at June 30, 2023		3,345,167		$	13.93		7.2	$	8,903,786

1 Options granted includes the time-based share options and the performance-based share options for which a grant date has been established, as described below.

The Company uses the Black-Scholes option pricing model to estimate the fair value of share options. The Company utilized a forfeiture rate of 8.2% during the six-month period ended June 30, 2023 for estimating the forfeitures of share options granted.

The fair value of share options is estimated using the following weighted-average assumptions (unaudited):


	Six Months Ended June 30,
	2022			2023
Expected dividend yield		—			—
Risk-free interest rate		2.43	%		3.66	%
Weighted-average expected volatility		61.3	%		67.6	%
Expected term (in years)		4.55			5.60
Weighted average grant-date fair value per share of options granted	$	8.15		$	9.28

At June 30, 2023, there was $9.6 million in unrecognized pre-tax share-based compensation expense, net of estimated forfeitures, related to unvested time-based share option awards. The unrecognized share-based compensation expense is expected to be recognized through the second quarter of 2027 (unaudited).

Restricted shares

The Company's time-based RSUs typically vest over a four-year period. The Company recognizes compensation expense associated with its time-based RSUs on a straight-line basis over the four-year requisite service period.

The following is a summary of restricted shares activity for the Company’s share incentive plan for the six-month period ended June 30, 2023 (unaudited):


	Units			Weighted average grant date fair value
RSU balance at December 31, 2022		696,990		$	18.22
RSUs granted1		115,811		$	15.51
RSUs vested		(177,621	)	$	16.27
RSUs forfeited		(9,289	)	$	18.14
RSU balance at June 30, 2023		625,891		$	18.25

1 RSUs granted includes the time-based RSUs and the performance-based RSUs for which a grant date has been established, as described below.

Of the 177,621 RSUs vested, the Company withheld 35,043 of those shares to pay the employees’ portion of the minimum payroll withholding taxes.

The fair value of the RSUs is based on the fair value of the Company's ordinary shares on the grant date. The Company utilized a forfeiture rate of 8.2% during the six-month period ended June 30, 2023 for estimating the forfeitures of RSUs granted.

As of June 30, 2023, there was $9.2 million in unrecognized pre-tax compensation expense, net of estimated forfeitures, related to unvested time-based restricted share units. The unrecognized compensation expense is expected to be recognized through the second quarter of 2027 (unaudited).

Performance-based share awards

In May 2023, performance-based share awards were awarded to select executive officers of the Company. The awards contain a performance-based vesting criteria and included 60,000 share options and 135,000 restricted share units. The performance-based awards have two separate annual performance periods, with 50% of the performance-based awards vesting over each of the annual performance periods ending on December 31, 2023 ("First Performance Period") and December 31, 2024 ("Second Performance Period") if the performance goal is met. If the performance goal for that performance period is not met, the performance-based awards do not vest and are forfeited. The performance goal is based on the Company's adjusted earnings per share, as publicly reported by the Company, for each performance period. The method used to measure the fair value of the performance-based awards is consistent with the methods used to measure the fair value of time-based share options and RSUs, as described above.

For performance-based awards that vest during the First Performance Period, the Company's Compensation Committee retains the ability to modify the applicable adjusted earnings per share metric. Due to this discretion, the Company has determined that the grantee does not have a mutual understanding of the key terms and conditions of the performance-based awards in the First Performance Period, and a grant date will not exist until the Compensation Committee approves the adjusted earnings per share metric for the First Performance Period. As of June 30, 2023, based on the total potential shares that could be earned, there were 30,000 share options and 67,500 RSUs outstanding for which there is no accounting grant date. Accordingly, no grant date fair value was established and the weighted average grant date fair values calculated above excludes these performance-based share options and performance-based RSUs. The Company remeasures the fair value of the awards at each reporting date until a grant date is achieved, as the service inception date precedes the grant date. As of June 30, 2023, there was $1.3 million in unrecognized pre-tax compensation expense, net of estimated forfeitures, related to unvested performance-based share awards for the First Performance Period, which would be recognized through the first quarter of 2024 upon achievement of the performance goal (unaudited).

Unlike the performance-based awards in the First Performance Period, the Compensation Committee does not have the discretion to modify the applicable adjusted earnings per share metric for performance-based awards that vest during the Second Performance Period. As such, a mutual understanding of the key terms and conditions, and thus a grant date, exists on the date that the performance-based awards are issued by the Company. As of June 30, 2023, based on the total potential shares that could be earned, there were 30,000 share options and 67,500 RSUs granted. A grant date fair value was established, and the weighted average grant date fair values calculated in the above tables include these performance-based share options and performance-based RSUs. The Company has not recognized any compensation expense on these performance-based awards since the requisite service period does not begin until January 1, 2024. As of June 30, 2023, there was $1.2 million in unrecognized pre-tax compensation expense, net of estimated forfeitures, related to these unvested performance-based share awards for the Second Performance Period, which will be recognized over the requisite service period starting January 1, 2024 through the first quarter of 2025 if it is probable that the adjusted earnings per share metric will be achieved (unaudited).

Employee share purchase plan

In June 2019, the Company’s Board of Directors adopted, and its shareholders approved, the Employee Share Purchase Plan (“ESPP”). The ESPP was effective on June 25, 2019, and the initial offering period of six-months commenced on January 1, 2021. The current offering period of six months commenced on January 1, 2023 and ran through June 30, 2023. The purchase price of the shares is 85% of the lower of the fair market value of the Company’s ordinary shares on the first trading day of the offering period and the purchase date. The ESPP includes an annual increase to the shares available for sale on the first day of each fiscal year beginning in 2020, equal to the lesser of: 275,000 shares, 1% of the outstanding shares as of the last day of the immediately preceding fiscal year, or such other amount as the administrator may determine. The Company registered 273,133 additional shares on March 1, 2023.

For the three-month periods ended June 30, 2022 and 2023, the Company recognized $0.3 million and $0.2 million, respectively, of share-based compensation expense related to the ESPP. For the six-month periods ended June 30, 2022 and 2023, the Company recognized $0.5 million and $0.5 million, respectively, of share-based compensation expense related to the ESPP. There were 87,229 shares issued under the ESPP during the three-month and six-month periods ended June 30, 2022 and 88,290 shares issued under the ESPP during the three-month and six-month periods ended June 30, 2023 (unaudited).