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Sep 30, 2020
Cambium Networks Q3 2020 Earnings Report
Reported record revenues with strong demand for wireless broadband connectivity.
Key Takeaways
Cambium Networks reported record revenues of $73.0 million for Q3 2020, an 11% increase year-over-year, and record net income of $5.6 million, or $0.21 per diluted share. The company saw strong demand across its technology portfolio, driven by the need for fixed wireless broadband infrastructure and technology upgrades.
Record revenues of $73.0 million, up 17% sequentially and 11% year-over-year.
Record GAAP net income of $5.6 million or $0.21 per diluted share, record non-GAAP net income of $7.8 million or $0.29 per diluted share.
Adjusted EBITDA of $11.4 million or 15.6% of revenues.
Net cash provided by operating activities $16.4 million.
Cambium Networks
Cambium Networks
Cambium Networks Revenue by Segment
Cambium Networks Revenue by Geographic Location
Revenue by Segment
Point-to-Multi-Point Revenue
CapyFin.comPoint-to-Point Revenue
CapyFin.comWi-Fi Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comCaribbean and Latin America Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Cambium Networks expects revenues between $74.0-$78.0 million for the fourth quarter ending December 31, 2020.
Positive Outlook
- Revenues between $74.0-$78.0 million
- GAAP gross margin between 48.9%-50.0%; and non-GAAP gross margin between 49.2%-50.2%
- GAAP operating income between $7.3-$9.1 million; and non-GAAP operating income between $9.3-$11.0 million
- GAAP net income between $5.0-$6.1 million or between $0.18 and $0.22 per diluted share; and non-GAAP net income between $6.5-$7.6 million or between $0.24 and $0.28 per diluted share
- Adjusted EBITDA between $10.3-$11.9 million; and adjusted EBITDA margin between 13.9%-15.3%
Challenges Ahead
- Interest expense, net of approximately $1.4 million
- GAAP taxes between 16.0%-19.0%; and a non-GAAP effective tax rate of approximately 17.0%-19.0%
- Approximately 27.6 million weighted average diluted shares outstanding
- Paydown of debt: $2.5 million
- Cash flow interest expense: approximately $0.9 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income