Cambium Networks(US:CMBM)2024-11-07 21:10Financial 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]