- Oops!Something went wrong.Please try again later.
- Oops!Something went wrong.Please try again later.
Cambium Networks Corporation CMBM reported solid first-quarter 2021 results, wherein both the bottom and the top lines beat the respective Zacks Consensus Estimate.
On a GAAP basis, net income in the March quarter was $19.9 million or 70 cents per share against a net loss of $0.8 million or loss of 3 cents per share in the prior-year quarter. The improvement primarily resulted from higher operating income and a benefit from income tax.
Non-GAAP net income came in at $11.7 million or 41 cents per share compared with $1.4 million or 5 cents per share in the year-ago quarter. Also, the bottom line beat the Zacks Consensus Estimate by 8 cents, delivering a surprise of 24.2%.
Cambium Networks Corporation Price, Consensus and EPS Surprise
Cambium Networks Corporation price-consensus-eps-surprise-chart | Cambium Networks Corporation Quote
Quarterly revenues were a record $88.5 million compared with $60.4 million in the year-ago quarter. The growth was driven by solid demand for Point-to-Multi-Point, Point-to-Point and enterprise Wi-Fi solutions. Also, the top line surpassed the consensus estimate of $83 million.
During the quarter, Cambium shipped its 9 millionth radio since becoming a standalone company. It is benefiting from robust demand for wireless broadband connectivity and the acceptance of its new product introductions.
By product category, revenues at Point-to-Multi-Point came in at $57.8 million compared with $34.9 million a year ago. Point-to-Point revenues grew 33.3% to $17.5 million and revenues at Wi-Fi were $12.1 million, up from $11.5 million.
By region, revenues in North America came in at $54.2 million compared with $31 million in the prior-year quarter. Europe, Middle East and Africa revenues were $18.7 million compared with $18.7 million, while the same in Caribbean and Latin America improved 101.1% to $10.5 million. Asia Pacific revenues declined 5.6% to $5.1 million.
Non-GAAP gross profit was $44.3 million compared with $30.8 million in the prior-year quarter with respective margins of 50.1% and 51%. Total operating expenses were $30.8 million compared with $30.3 million in the prior-year quarter.
Non-GAAP operating income improved to $15.5 million from $3 million. Adjusted EBITDA totaled $16.5 million compared with $4.4 million a year ago with respective margins of 18.6% and 7.3%.
Cash Flow & Liquidity
During the first quarter, Cambium utilized $7.6 million of cash from operating activities compared with cash utilization of $0.8 million in the year-ago quarter.
As of Mar 31, 2021, the company had a $51.2 million cash balance with $22.8 million of long-term debt compared with the respective tallies of $62.5 million and $25 million at the end of the previous quarter.
Q2 & 2021 Outlook
Cambium has provided the outlook for the second quarter and full-year 2021. For the ongoing quarter, revenues are expected to be in the range of $85-$90 million. Non-GAAP EPS is anticipated to be in the range of 29-35 cents, with GAAP EPS in the band of 22-27 cents. Adjusted EBITDA is projected in the range of $12.4-$14.8 million with its margin between 14.6% and 16.4%. Further, capital expenditures are estimated between $2.5 million and $2.9 million.
For full-year 2021, revenues are projected to grow at a rate of 24-29% ranging between $345 million and $359 million. Adjusted EBITDA margin is anticipated in the 15-17% band.
Zacks Rank & Other Stocks to Consider
Cambium currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader industry are Vicor Corporation VICR, Cogent Communications Holdings, Inc. CCOI and Western Digital Corporation WDC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vicor delivered a trailing four-quarter earnings surprise of 80.6%, on average.
Cogent delivered a trailing four-quarter earnings surprise of 29%, on average.
Western Digital delivered a trailing four-quarter earnings surprise of 26.3%, on average.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Western Digital Corporation (WDC) : Free Stock Analysis Report
Cogent Communications Holdings, Inc. (CCOI) : Free Stock Analysis Report
Vicor Corporation (VICR) : Free Stock Analysis Report
Cambium Networks Corporation (CMBM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research