Financial Data and Key Metrics Changes - Cambium Networks reported revenues of $43 million for Q3 2023, a decrease of 28% quarter-over-quarter and 47% year-over-year [41] - Non-GAAP gross profit for Q3 2023 was $11.9 million, down $29.7 million compared to the prior year and down $18 million sequentially [12] - Non-GAAP net loss for Q3 2023 was $12.1 million, or a loss of $0.44 per diluted share, compared to non-GAAP net income of $11.3 million or earnings of $0.4 per diluted share for Q3 2022 [13] - Non-GAAP gross margin was 27.7%, down from 51.3% in Q3 2022 [87] - Cash used in operating activities was $200,000 for Q3 2023, compared to cash provided by operating activities of $2.2 million for Q3 2022 [30] Business Line Data and Key Metrics Changes - Revenues from point-to-multi-point (PMP) products decreased 12% sequentially and were down 10% year-over-year due to high channel inventories and anticipation of FCC approval for six gigahertz spectrum [97] - Point-to-point (PTP) revenues decreased 37% sequentially but grew 3% year-over-year, impacted by temporary US federal budgetary issues [21] - 28 gigahertz fixed products reported record revenues, increasing 144% sequentially during Q3 2023 [5] Market Data and Key Metrics Changes - North America, CALA, and APAC regions weakened sequentially, while AMEA region grew 111% quarter-over-quarter, driven by demand from a large 28 gigahertz customer [42] - Total devices under cloud management in Q3 2023 surpassed one million, increasing approximately 4% from Q2 2023 and up over 17% year-over-year [24] Company Strategy and Development Direction - The company is implementing a "focus and simplify" strategy to build core platforms for multiple solutions, improving efficiency and reducing costs [4] - Cambium aims to emphasize sectors that can be differentiated through products or services, with a focus on returning to higher levels of profitability [80] - The company plans to rationalize its product portfolio, emphasizing best-in-class products and consolidating offerings onto a unified platform [64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to lower revenue levels but noted benefits from a cost reduction plan aimed at aligning costs with revenues [9] - The company expects a significant portion of delayed defense orders to ship during Q4 2023, anticipating stronger PTP revenues [21] - Management expressed optimism about future opportunities, particularly in defense revenues and the expected ramp-up of six gigahertz products [66] Other Important Information - Cambium's cash balance was $27.5 million as of September 30, 2023, a decrease of $4.4 million from Q2 2023 [90] - The company expects to realize annualized cash savings of $24 million in 2024 through operational and capital expenditure reductions [40] Q&A Session Summary Question: Can you talk about the competitive environment for enterprise products? - Management noted that the industry is facing supply chain challenges and that they are not leading in discounting but are following others to maintain prices [38] Question: What is the current headcount? - The overall headcount, including contractors, is in the 800 range [105] Question: Can you provide an update on gross margin recovery? - Management expects to return to historical gross margin levels in the 50% range once headwinds are cleared [115] Question: What is the expected impact of government programs like BEAD? - Management indicated that while BEAD funding is primarily focused on fiber, it may favor Cambium in the future, but timing remains uncertain [56] Question: What are the expectations for cash flow and breakeven? - Management stated that they will provide more details in the next quarter's call, but they are preparing for potential cash flow challenges in early 2024 [118]

Basis of Presentation There have been no material changes to the Company's significant accounting policies disclosed in the 2022 Form 10-K, Part II, Item 8. Note 2. Balance sheet components Inventories, net consisted of the following (in thousands): The increase in inventory is primarily due to lower demand for our PMP products and a slowdown in Enterprise product orders due to higher channel inventory. Inventory reserves are established for estimated excess and obsolete inventory equal to the difference be ...

Cambium Networks Corporation (NASDAQ:CMBM) Q2 2023 Earnings Conference Call August 1, 2023 4:30 PM ET Company Participants Peter Schuman - Vice President of Investor Relations & Industry Analyst Relations Morgan Kurk - President and CEO Atul Bhatnagar - Director Andrew Bronstein - CFO Conference Call Participants Simon Leopold - Raymond James Scott Searle - ROTH MKM George Notter - Jefferies Erik Suppiger - JMP Securities Tim Savageaux - Northland Capital Markets Paul Essi - William K. Woodruff & Co. Operat ...

During the three-month period ended June 30, 2023, there were no significant changes to our critical accounting policies and estimates. Please refer to Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for our fiscal year ended December 31, 2022, filed on February 27, 2023, for a more complete discussion of our critical accounting policies and estimates. Excluding the impact of changes in interest rates and th ...

Cambium Networks Corporation. (NASDAQ:CMBM) Q1 2023 Earnings Conference Call May 8, 2023 4:30 PM ET Company Participants Peter Schuman - Vice President, Investor & Industry Analyst Relations Atul Bhatnagar - President and Chief Executive Officer Andrew Bronstein - Chief Financial Officer Conference Call Participants Simon Leopold - Raymond James Scott Searle - ROTH Capital Partners Samik Chatterjee - JPMorgan & Chase George Notter - Jefferies LLC Erik Suppiger - JMP Securities Paul Essi - William K. Woodruf ...

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. 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 ...

Gross margin increased from 47.9% in 2021 to 48.9% in 2022. The increase reflects price increases introduced in the fourth quarter of 2021 and increased revenue in higher margin products, such as Wi-Fi and software subscriptions partially offset by higher production costs due to increases in component charges as a result of component shortages and increases in component costs, and higher logistics costs to meet demand, including costs of alternative distribution, shipment and transportation modes as a resul ...

Cambium Networks Corporation (NASDAQ:CMBM) Q4 2022 Earnings Conference Call February 16, 2023 4:30 PM ET Company Participants Peter Schuman - Vice President, Investor & Industry Analyst Relations Atul Bhatnagar - President and Chief Executive Officer Andrew Bronstein - Chief Financial Officer Conference Call Participants Simon Leopold - Raymond James Angela Jin - JPMorgan Scott Searle - ROTH Capital Partners Erik Suppiger - JMP Securities Paul Essi - William K. Woodruff Tim Savageaux - Northland Capital Mar ...

Cambium Networks Corporation (NASDAQ:CMBM) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Company Participants Peter Schuman - Vice President of Investor and Industry Analyst Relations Atul Bhatnagar - President and Chief Executive Officer Andrew Bronstein - Chief Financial Officer Conference Call Participants Scott Searle - ROTH Capital Partners Paul Essi - William K. Woodruff Operator Good afternoon. My name is Sean, and I'll be your conference operator today. At this time, I would like to w ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission File Number: 001-38952 CAMBIUM NETWORKS CORPORATION (Exact Name of Registrant as Specified in its Charter) Cayman Islands Not Applicable (State o ...