For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cambium (CMBM) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.Cambium is one of 609 companies in the Computer and Technology group. The Computer and Technology group currently sits at #2 within the Zacks Sector Rank. ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth ...

Financial Performance - Total revenue for the three-month period ended September 30, 2024, was $43.7 million, an increase of 1.6% year-over-year[110] - Operating loss for the same period was $8.1 million, with a net loss of $9.7 million[110] - Revenues for the three-month period ended September 30, 2024, increased by $0.7 million, or 1.6%, to $43.7 million compared to $43.0 million for the same period in 2023, driven primarily by higher Enterprise product revenues[120] - The company reported a net loss of $9.7 million for the three-month period ended September 30, 2024, compared to a net loss of $26.2 million in the same period of 2023[120] - Revenues decreased by $48.0 million, or 26.7%, to $132.0 million for the nine-month period ended September 30, 2024, from $180.0 million for the same period in 2023[135] Revenue Breakdown - Revenues from Enterprise products are beginning to rebound, with expectations for continued improvement throughout the remainder of 2024[105] - Enterprise product revenues surged by $12.7 million, or 506.6%, from $2.5 million in 2023 to $15.2 million in 2024, with significant growth in Europe, Middle East, and Africa regions[124] - Point-to-Multi-Point product revenues decreased by $5.6 million, or 23.7%, from $23.6 million in 2023 to $18.0 million in 2024, primarily due to lower demand in Europe, Middle East, and Africa[122] - North America revenues increased by $3.5 million, or 19.9%, from $17.8 million in 2023 to $21.3 million in 2024, driven by higher demand for Wi-Fi 6 products[125] - Europe, Middle East, and Africa revenues decreased by $2.1 million, or 14.5%, from $14.3 million in 2023 to $12.2 million in 2024, mainly due to lower demand for PMP and PTP products[125] Cost Management - Total operating expenses decreased by $7.6 million, or 22.9%, from $33.1 million in 2023 to $25.5 million in 2024, with notable reductions in research and development and general and administrative expenses[128] - Research and development expenses fell by $3.9 million, or 29.5%, to $9.3 million in 2024, primarily due to lower staff-related costs and reduced engineering materials spending[129] - General and administrative expense decreased by $2.5 million, or 29.2%, to $6.1 million for the three-month period ended September 30, 2024, from $8.7 million for the same period in 2023[131] - Sales and marketing expense decreased by $5.0 million, or 15.4%, to $27.8 million for the nine-month period ended September 30, 2024, from $32.9 million for the same period in 2023[145] Macroeconomic Factors - The company is facing softened demand due to macroeconomic factors, including higher interest rates and concerns about a global economic slowdown[104] - The company continues to monitor the impact of macroeconomic factors, including inflationary pressures and potential global recession[106] Debt and Compliance - As of September 30, 2024, the company was not in compliance with its quarterly EBITDA covenant under its Amended Credit Agreement[109] - The company is seeking forbearance from Bank of America due to noncompliance with the quarterly EBITDA covenant and monthly liquidity covenant as of October 31, 2024[157] - As of September 30, 2024, the company had $22.8 million outstanding on the term loan and $45.0 million on the revolving credit facility, with effective interest rates of 8.85% and 8.66%, respectively[156] Cash Flow and Liquidity - Cash balance increased by $27.8 million to $46.5 million as of September 30, 2024, following a $45.0 million draw on the revolving credit facility[150] - Net cash used in operating activities improved from $10.7 million in 2023 to $4.3 million in 2024, despite a net loss of $45.3 million[153] - Cash used in investing activities increased to $10.8 million in 2024, primarily due to leasehold improvements for the new headquarters[154] - Net cash provided by financing activities was $43.0 million in 2024, mainly from the drawdown on the revolving credit facility[155] Impairment and Valuation - The fair value of the Company's one reporting unit was higher than its carrying value, indicating no impairment of goodwill as of September 30, 2024[165] - No impairment charges were identified in the recoverability test of long-lived assets as of September 30, 2024[167] Interest Expense - Interest expense increased from $0.6 million in 2023 to $1.4 million in 2024, reflecting higher borrowing costs[120] - Interest expense increased by $0.8 million, or 126.3%, to $1.4 million for the three-month period ended September 30, 2024, from $0.6 million for the same period in 2023[132] - Interest expense increased by $1.8 million, or 99.8%, to $3.6 million, driven by higher interest rates on the term loan and the addition of interest on the revolving credit facility[148] Market Risks - The Company has not entered into any foreign currency hedging transactions, exposing it to risks related to fluctuations in foreign currency exchange rates[169] - The Company’s revenue contracts are primarily denominated in U.S. dollars, making it vulnerable to fluctuations in foreign currency values[169] - There have been no material changes in market risk since December 31, 2023[172]

Have you evaluated the performance of Cambium's (CMBM) international operations for the quarter ending September 2024? Given the extensive global presence of this company, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, ...

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $43.7 million, a decrease of 5% sequentially, with growth in the enterprise business offset by declines in P2P and PMP businesses [9][24] - Non-GAAP gross margin improved to 42.3% from 33.5% in Q2 2024, reflecting better inventory management and reduced excess and obsolete inventory charges [11][27] - Free cash flow was positive at $5.2 million, with a cash balance of $46.5 million as of September 30, 2024 [11][31] - Non-GAAP net loss for Q3 2024 was $3.8 million, an improvement from a loss of $7.1 million in Q2 2024 [29] Business Line Data and Key Metrics Changes - Enterprise business revenues increased by 34% sequentially to $15.2 million, driven by improved demand across all geographies [9][24] - PTP business revenues declined by 32% sequentially, primarily due to lower defense orders [10][25] - PMP business revenues decreased by 8% sequentially, attributed to slower adoption of 6 gigahertz deployments in North America [24] Market Data and Key Metrics Changes - EMEA revenues decreased by 9% sequentially, reflecting a decline in the PTP business for defense [26] - North America revenue increased by 3%, driven by higher enterprise revenues [26] - Asia Pacific revenue decreased by 14% sequentially, while CALA improved by 11% quarter-over-quarter [26] Company Strategy and Development Direction - The company is focusing on improving operational efficiency and optimizing its go-to-market strategy for the enterprise segment [36] - A new PMP platform, EVO, was announced, merging two major product lines to enhance performance and economic viability [37] - The enterprise business is viewed as a key growth area, with significant changes in sales strategy to target specific verticals [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future growth of defense revenues despite current budget constraints [10][40] - The company is optimistic about the enterprise segment's potential, indicating a shift in focus from traditional markets [47] - Management acknowledged ongoing price pressures in the commercial segment but remains committed to improving margins [44] Other Important Information - The company is seeking forbearance from the bank regarding covenant breaches and is in negotiations to address noncompliance issues [32][46] - Total devices under cnMaestro Cloud Management increased approximately 3% from Q2 2024 and over 14% year-over-year [22] Q&A Session Summary Question: Expectations for improvement in the defense market - Management indicated that while defense business has been delayed, it has not been lost to competitors, but there is uncertainty about future government spending [45] Question: Insights on gross margin improvements - Management noted that gross margins are on an upward trend due to better inventory management and expect to approach historical levels in the high 40s to around 50% [42][43] Question: Future focus on enterprise business - Management confirmed that the enterprise segment is seen as the future growth area for the company, with efforts to maintain and potentially grow market share in the P2P market [47]

Cambium Networks Corporation (CMBM) reported mixed third-quarter 2024 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The leading wireless solutions provider recorded year-over-year marginal revenue growth due to strength in the Enterprise segment.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Lower Point-to-Point revenues due to weakness in defense vertical affected the top line. Healthy growth in free cash flow was a positive. ...

For the quarter ended September 2024, Cambium (CMBM) reported revenue of $43.73 million, up 1.6% over the same period last year. EPS came in at -$0.14, compared to -$0.44 in the year-ago quarter.The reported revenue represents a surprise of -3.47% over the Zacks Consensus Estimate of $45.3 million. With the consensus EPS estimate being -$0.17, the EPS surprise was +17.65%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Cambium (CMBM) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.17. This compares to loss of $0.44 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.65%. A quarter ago, it was expected that this company would post a loss of $0.21 per share when it actually produced a loss of $0.25, delivering a surprise of -19.05%.Over the last four quarters, the company has surpassed conse ...

Financial Performance - Revenues for Q3 2024 were $43.7 million, a decrease of 5% from $45.9 million in Q2 2024[1] - Net loss for Q3 2024 was $9.7 million, or a loss of $0.34 per diluted share, compared to a net loss of $9.1 million, or $0.33 per diluted share in Q2 2024[4] - Operating loss for Q3 2024 was $8.1 million, an improvement from a loss of $12.1 million in Q2 2024[3] - The company reported a net loss of $(9,676) thousand, compared to $(9,143) thousand in the previous quarter and $(26,200) thousand in the same quarter last year[10] - For the three months ended September 30, 2024, the company reported a net loss of $9,676,000 compared to a net loss of $26,200,000 for the same period in 2023, representing a 63.1% improvement year-over-year[17] Margins and Profitability - GAAP gross margin improved to 39.9%, up 850 basis points from 31.4% in Q2 2024; non-GAAP gross margin was 42.3%, an 880 basis point increase from 33.5%[2][3] - Gross profit increased to $17,445 thousand, resulting in a gross margin of 39.9%, compared to 31.4% in the previous quarter and 25.5% in the same quarter last year[10] - Adjusted EBITDA loss was $2.3 million, representing a 65% improvement from a loss of $6.7 million in Q2 2024[4] - Adjusted EBITDA for the three months ended September 30, 2024, was $(2,306,000), an improvement from $(14,422,000) in the same period last year, indicating a significant reduction in losses[17] - The adjusted EBITDA margin for the three months ended September 30, 2024, was (5.3)%, an improvement from (33.5)% in the same period last year[17] Cash Flow and Liquidity - Net cash provided by operating activities was $8.9 million for Q3 2024, significantly higher than $2.4 million in Q2 2024[4] - Free cash flow for the three months ended September 30, 2024, was $5,235,000, a significant recovery from $(3,556,000) in the same period last year[18] - The company’s non-GAAP effective tax rate (ETR) for the three months ended September 30, 2024, was 23.7%, compared to 25.5% in the same period last year[19] Assets and Liabilities - Total current assets increased to $171,181 thousand, up from $162,571 thousand at the end of the previous year[11] - Cash balance significantly improved to $46,491 thousand, compared to $18,710 thousand at December 31, 2023[11] - Total liabilities rose to $178,979 thousand, compared to $136,941 thousand at the end of the previous year[11] - Shareholders' equity decreased to $43,630 thousand from $80,934 thousand at December 31, 2023, primarily due to an accumulated deficit of $(109,864) thousand[11] Future Outlook - The company expects Q4 2024 revenues to be between $40.0 million and $45.0 million[5] - GAAP gross margin for Q4 2024 is projected to be between 40.0% and 42.0%[5] Research and Development - Research and development expenses were $9,275 thousand, slightly up from $9,149 thousand in the previous quarter but down from $13,151 thousand year-over-year[10] - Research and development expenses for the three months ended September 30, 2024, totaled $9,275,000, compared to $13,151,000 in the same period last year, reflecting a 29.5% decrease[19] Inventory and Interest - The company reported a significant increase in inventories, with a change of $6,262,000 in September 2024 compared to $3,240,000 in June 2024[12] - The company incurred $2,069,000 in interest paid during September 2024, compared to $922,000 in June 2024 and $474,000 in September 2023[12] Revenue Breakdown - Point-to-Multi-Point revenues were $17,999,000 in September 2024, down from $19,647,000 in June 2024 and down from $23,596,000 in September 2023[13] - North America generated $21,300,000 in revenues for September 2024, an increase of 20.4% from $17,768,000 in September 2023[14]

Revenues of $43.7 million decreased 5% sequentially Gross margin of 39.9% and non-GAAP(1) gross margin of 42.3%, both higher sequentially Operating loss of $8.1 million, non-GAAP(1) operating loss of $3.6 million Net loss of $9.7 million or a loss of $0.34 per diluted share; non-GAAP(1) net loss of $3.8 million or a loss of $0.14 per diluted share Net cash provided by operating activities of $8.9 million; $46.5 million cash on the balance sheet Adjusted EBITDA(1) loss of $2.3 million or (5.3)% of revenues, ...