ROLLING
MEADOWS, Ill., Oct. 4, 2023
/PRNewswire/ -- 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
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SOURCE Cambium Networks