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Cambium Networks(CMBM) - 2024 Q3 - Quarterly Results
CMBMCambium Networks(CMBM)2024-11-07 21:10

Financial Performance - Revenues for Q3 2024 were 43.7million,adecreaseof543.7 million, a decrease of 5% from 45.9 million in Q2 2024[1] - Net loss for Q3 2024 was 9.7million,oralossof9.7 million, or a loss of 0.34 per diluted share, compared to a net loss of 9.1million,or9.1 million, or 0.33 per diluted share in Q2 2024[4] - Operating loss for Q3 2024 was 8.1million,animprovementfromalossof8.1 million, an improvement from a loss of 12.1 million in Q2 2024[3] - The company reported a net loss of (9,676)thousand,comparedto(9,676) thousand, compared to (9,143) thousand in the previous quarter and (26,200)thousandinthesamequarterlastyear[10]−ForthethreemonthsendedSeptember30,2024,thecompanyreportedanetlossof(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 26,200,000forthesameperiodin2023,representinga63.126,200,000 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 2.3million,representinga652.3 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),animprovementfrom(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 8.9millionforQ32024,significantlyhigherthan8.9 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,asignificantrecoveryfrom5,235,000, 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 171,181thousand,upfrom171,181 thousand, up from 162,571 thousand at the end of the previous year[11] - Cash balance significantly improved to 46,491thousand,comparedto46,491 thousand, compared to 18,710 thousand at December 31, 2023[11] - Total liabilities rose to 178,979thousand,comparedto178,979 thousand, compared to 136,941 thousand at the end of the previous year[11] - Shareholders' equity decreased to 43,630thousandfrom43,630 thousand from 80,934 thousand at December 31, 2023, primarily due to an accumulated deficit of (109,864)thousand[11]FutureOutlook−ThecompanyexpectsQ42024revenuestobebetween(109,864) thousand[11] Future Outlook - The company expects Q4 2024 revenues to be between 40.0 million and 45.0million[5]−GAAPgrossmarginforQ42024isprojectedtobebetween40.045.0 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 9,149thousandinthepreviousquarterbutdownfrom9,149 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,comparedto9,275,000, 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 6,262,000inSeptember2024comparedto6,262,000 in September 2024 compared to 3,240,000 in June 2024[12] - The company incurred 2,069,000ininterestpaidduringSeptember2024,comparedto2,069,000 in interest paid during September 2024, compared to 922,000 in June 2024 and 474,000inSeptember2023[12]RevenueBreakdown−Point−to−Multi−Pointrevenueswere474,000 in September 2023[12] Revenue Breakdown - Point-to-Multi-Point revenues were 17,999,000 in September 2024, down from 19,647,000inJune2024anddownfrom19,647,000 in June 2024 and down from 23,596,000 in September 2023[13] - North America generated 21,300,000inrevenuesforSeptember2024,anincreaseof20.421,300,000 in revenues for September 2024, an increase of 20.4% from 17,768,000 in September 2023[14]