UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On October 4, 2023, Cambium Networks Corporation (the "Company") issued a press release announcing certain preliminary financial results for the three-month period ended September 30, 2023. The press release contains forward-looking statements regarding the Company, and includes cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.
The press release dated October 4, 2023, is furnished herewith as Exhibit 99.1. The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liability of that Section, nor shall such information be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
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99.1 |
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104 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CAMBIUM NETWORKS CORPORATION |
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October 4, 2023 |
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/s/ Andrew P. Bronstein |
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Andrew P. Bronstein |
Exhibit 99.1
Cambium Networks Corporation Announces Preliminary Third Quarter 2023 Revenues and Reporting Date
ROLLING MEADOWS, Ill., Oct. 4, 2023 — Cambium Networks Corporation (“Cambium Networks”) (NASDAQ: CMBM), a leading provider of wireless networking infrastructure solutions, today announced preliminary revenues for the third quarter 2023 ended Sept. 30, 2023. Cambium plans to report full financial results on Thursday, Nov. 2, 2023.
Cambium Networks expects revenues of between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million provided on Aug. 1, 2023. The decrease in revenues is primarily due to a delay in government defense orders due to U.S. Federal budgetary timing issues impacting the Point-to-Point business; sluggish revenues in the Point-to-Multi-Point business, which is expected until the FCC's approval and subsequent ramp of sales of Cambium's 6 GHz products; a decrease in orders and an increase in stock rotations from distributors in the Enterprise business; and continued economic headwinds, particularly in EMEA. As a result of these market challenges, Cambium Networks is suspending its guidance for the full year 2023.
The company records revenues from sell-in to distributors. However, although Cambium’s reported revenues declined, point-of-sale revenues—representing the sales of Cambium's products out of the distribution channel as reported by Cambium’s distributors—are expected to be significantly higher for the third quarter 2023 than Cambium’s reported revenues, indicating a decrease in channel inventories. Cambium expects that its reported revenues will continue to be under pressure until channel inventories return to pre-pandemic levels.
The outlook for Cambium Networks' third quarter 2023 net income (loss) and income (loss) per share are expected to be below the low end of the previous GAAP and non-GAAP ranges. Cash is expected to be approximately $27 million; in addition, Cambium Networks has available an unused $45 million revolving credit line.
Conference Call and Webcast
Cambium Networks will host a live webcast and conference call to discuss its financial results and Q&A at 4:30 p.m. ET, on Thursday, Nov. 2, 2023. On the call will be Morgan Kurk, president and CEO, and Andrew Bronstein, CFO. The call will be moderated by Peter Schuman, VP of investor & industry analyst relations.
To join the financial results live webcast and view additional materials which will be posted to the investor website, listeners should access the investor page of Cambium Networks website https://investors.cambiumnetworks.com/. Following the live webcast, a replay will be available in the event archives at the same web address for a period of one year.
To access the live conference call by phone, listeners should register in advance at https://register.vevent.com/register/BIe5b0682df41d424994bf8930c81ce039 receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique passcode.
About Cambium Networks
Cambium Networks enables service providers, enterprises, industrial organizations, and governments to deliver exceptional digital experiences, and device connectivity, with compelling economics. Our ONE Network platform simplifies management of Cambium Networks wired and wireless broadband and network edge technologies. Our customers can focus more resources on managing their business rather than the network. We deliver connectivity that just works.
Cautionary Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of the federal securities laws, including statements concerning our expected third quarter revenues, net income, cash and available borrowings. All statements other than statements of historical fact contained in this document, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this document are only predictions. We have based these
forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this document and are subject to a number of risks, uncertainties and assumptions including those described in the "Risk factors" section and elsewhere in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2023, and our Quarterly Reports on Form 10-Q filed on May 9, 2023, and August 2, 2023. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances assumed in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations include: the unpredictability of our operating results; uncertainties with respect to the timing of new government orders, the velocity at which our distributors will sell down current inventories of our products and macro-economic conditions in our target markets; our inability to predict and respond to emerging technological trends and network operators' changing needs; the impact of the tensions between Russia and Ukraine, which may disrupt our sales and product design activities in the region; our reliance on third-party manufacturers, which subjects us to risks of product delivery delays and reduced control over product costs and quality; our reliance on distributors and value-added resellers for the substantial majority of our sales; the inability of our third-party logistics and warehousing providers to deliver products to our channel partners and network operators in a timely manner; our or our distributors' and channel partners' inability to attract new network operators or sell additional products to network operators that currently use our products; our channel partners' inability to effectively manage inventory of our products, timely resell our products or estimate expected future demand; our inability to manage our growth and expand our operations; unpredictability of sales and revenues due to lengthy sales cycles; our inability to maintain an effective system of internal controls, produce timely and accurate financial statements or comply with applicable regulations; our reliance on the availability of third-party licenses; risks associated with international sales and operations; current or future unfavorable economic conditions, both domestically and in foreign markets and political tensions among the U.S. and China; and our inability to obtain intellectual property protections for our products.
Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.
Contacts:
Investors:
Peter Schuman, IRC
VP Investor & Industry Analyst Relations
Cambium Networks
+1 (847) 264-2188
Peter.schuman@cambiumnetworks.com