•
Mar 31, 2022

Cambium Networks Q1 2022 Earnings Report

Announced first quarter 2022 financial results, impacted by supply chain challenges and COVID lockdowns in China.

Key Takeaways

Cambium Networks reported revenues of $61.9 million for Q1 2022, a decrease of 30% year-over-year, primarily due to lower Point-to-Multi-Point and Point-to-Point revenues resulting from global supply and distribution constraints and slower demand from North American service providers. The company faced supply chain challenges due to COVID lockdowns in Shenzhen and Shanghai.

Revenues of $61.9 million, decreased 30% year-over-year.

GAAP net loss of $1.6 million or $0.06 per diluted share, non-GAAP net income of $0.3 million or $0.01 per diluted share.

Adjusted EBITDA of $1.9 million or 3.9% of revenues, compared to $16.5 million or 18.6% for the first quarter 2021.

Net cash used in operating activities of $19.2 million, compared to $7.6 million used in operating activities for the first quarter 2021.

Total Revenue
$61.9M
Previous year: $88.5M
-30.1%
EPS
$0.01
Previous year: $0.41
-97.6%
Gross Margin
47.1%
Previous year: 49.9%
-5.6%
Non-GAAP Gross Margin
47.8%
Adjusted EBITDA Margin
3.1%
Previous year: 18.6%
-83.3%
Gross Profit
$29.2M
Previous year: $44.2M
-34.0%
Cash and Equivalents
$38.4M
Previous year: $51.2M
-25.0%
Free Cash Flow
-$19.9M
Previous year: -$8.38M
+138.0%
Total Assets
$214M
Previous year: $212M
+1.0%

Cambium Networks

Cambium Networks

Cambium Networks Revenue by Segment

Cambium Networks Revenue by Geographic Location

Forward Guidance

For the second quarter ending June 30, 2022, Cambium Networks expects revenues between $65.0-$73.0 million, GAAP operating (loss) income between ($2.75)-$0.7 million, and adjusted EBITDA between $2.2-$5.8 million.

Positive Outlook

  • Revenues between $65.0-$73.0 million
  • GAAP gross margin between 46.9%-47.9%; and non-GAAP gross margin between 47.5%-48.5%
  • GAAP operating expenses between $33.3-$34.3 million; and non-GAAP operating expenses between $29.7-$30.7 million
  • Non-GAAP operating income between $1.2-$4.7 million
  • Adjusted EBITDA between $2.2-$5.8 million; and adjusted EBITDA margin between 3.4%-7.9%

Challenges Ahead

  • GAAP operating (loss) income between ($2.75)-$0.7 million
  • GAAP net (loss) income between ($2.8)-$0.0 million or between ($0.10) and $0.00 per diluted share
  • Interest expense, net of approximately $0.7 million
  • Paydown of debt: $1.3 million
  • Capital expenditures: $1.4-$1.6 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income