Cambium Networks Corp
NASDAQ:CMBM
Cambium Networks Corp
Cambium Networks Corp. engages in the provision of wireless broadband networking infrastructure solutions for network operators. The company is headquartered in Rolling Meadows, Illinois and currently employs 573 full-time employees. The company went IPO on 2019-06-26. The company offers fixed wireless broadband and Wi-Fi networking infrastructure solutions for commercial and government network operators as well as broadband service providers and other network operators, including industrial organizations, broadband service providers, and public and private networks. Its wireless fabric includes intelligent radios, smart antennas, radio frequency, algorithms, wireless-aware switches, and its on-premise or cloud-based network management software. The company provides solutions, such as closed-circuit television (CCTV) backhaul, enterprise networking, hybrid networks, outdoor wireless for private networks, and small cell backhaul. Its Wi-Fi portfolio includes cnPilot cloud-managed Wi-Fi solutions; cnMatrix cloud-managed wireless-aware switching solutions; Xirrus Wi-Fi solutions, and Xirrus XMS management.
Cambium Networks Corp. engages in the provision of wireless broadband networking infrastructure solutions for network operators. The company is headquartered in Rolling Meadows, Illinois and currently employs 573 full-time employees. The company went IPO on 2019-06-26. The company offers fixed wireless broadband and Wi-Fi networking infrastructure solutions for commercial and government network operators as well as broadband service providers and other network operators, including industrial organizations, broadband service providers, and public and private networks. Its wireless fabric includes intelligent radios, smart antennas, radio frequency, algorithms, wireless-aware switches, and its on-premise or cloud-based network management software. The company provides solutions, such as closed-circuit television (CCTV) backhaul, enterprise networking, hybrid networks, outdoor wireless for private networks, and small cell backhaul. Its Wi-Fi portfolio includes cnPilot cloud-managed Wi-Fi solutions; cnMatrix cloud-managed wireless-aware switching solutions; Xirrus Wi-Fi solutions, and Xirrus XMS management.
Revenue: Q3 revenue was $43.7 million, within the company's guidance range but down 5% sequentially.
Enterprise Strength: Enterprise business revenues jumped 34% sequentially, showing broad-based geographic growth.
Defense Weakness: Lower defense spending led to a 32% decline in point-to-point revenues and was a major drag on results.
Gross Margin Recovery: Gross margin improved to 42.3% from 33.5% in Q2, driven by fewer inventory-related charges.
Cash Flow: Free cash flow was positive at $5.2 million, and the cash balance at quarter-end was $46.5 million.
Bank Covenants: The company breached some bank covenants in September and October and is negotiating with its lenders.
Q4 Guidance: Q4 revenue outlook is $40–$45 million with gross margin expected between 42.5% and 45.5%.
