Cambium Networks Corp (CMBM) Reports Q3 2023 Financial Results: Revenues Decrease by 47% YoY
Revenues of $43.0 million, a decrease of 28% sequentially and 47% year-over-year
Operating loss of $22.1 million, non-GAAP operating loss of $15.5 million
Net loss of $26.2 million or a loss of $0.95 per diluted share, non-GAAP net loss of $12.1 million or a loss of $0.44 per diluted share
Adjusted EBITDA loss of $14.4 million or (33.5)% of revenues
On November 2, 2023, Cambium Networks Corp (NASDAQ:CMBM), a leading provider of wireless networking infrastructure solutions, announced its financial results for the third quarter of 2023. The company reported a significant decrease in revenues and a net loss, highlighting the challenges faced in the current financial period.
Financial Performance Overview
Revenues for Q3 2023 were reported at $43.0 million, marking a decrease of 28% sequentially and 47% year-over-year. The company's gross margin stood at 25.5%, with a non-GAAP gross margin of 27.7%. Cambium Networks Corp (NASDAQ:CMBM) reported an operating loss of $22.1 million, with a non-GAAP operating loss of $15.5 million. The net loss for the quarter was $26.2 million or a loss of $0.95 per diluted share, with a non-GAAP net loss of $12.1 million or a loss of $0.44 per diluted share. The adjusted EBITDA loss was $14.4 million or (33.5)% of revenues.
As mentioned in our preliminary third quarter results press release, we are challenged by high channel inventories for Enterprise products, delayed government defense orders due to budgetary timing issueswhich now appear to be resolving during the fourth quarter 2023, and lower revenues in the Point-to-Multi-Point business, which is expected to continue until the FCCs approval and subsequent ramp of sales of Cambiums 6 GHz products, said Morgan Kurk, president and CEO. Cambium is taking steps to improve profitability and to rationalize business operations with the current demand environment.
Financial Tables Summary
The GAAP gross margin for Q3 2023 was 25.5%, compared to 50.7% for Q3 2022, and 49.1% for Q2 2023. The GAAP operating loss for Q3 2023 was $22.1 million, compared to operating income of $10.0 million for Q3 2022, and operating loss of $2.7 million for Q2 2023. The GAAP net loss for Q3 2023 was $26.2 million, or net loss of $0.95 per diluted share, compared to net income of $9.4 million, or net earnings of $0.34 per diluted share for Q3 2022, and net loss of $2.6 million, or net loss of $0.10 per diluted share for Q2 2023.
Non-GAAP gross margin for Q3 2023 was 27.7% compared to 51.3% for Q3 2022, and 50.3% for Q2 2023. Non-GAAP operating loss for Q3 2023 was $15.5 million, compared to non-GAAP operating income of $13.8 million for Q3 2022, and non-GAAP operating income of $1.6 million for Q2 2023. Non-GAAP net loss for Q3 2023 was $12.1 million, or a net loss of $0.44 per diluted share, compared to net income of $11.3 million, or $0.40 per diluted share for Q3 2022, and net income of $0.9 million, or $0.03 per diluted share, for Q2 2023.
Looking Ahead
For the fourth quarter ending December 31, 2023, Cambium Networks Corp (NASDAQ:CMBM) expects revenues to be between $45.0-$50.0 million, with a GAAP gross margin between 36.3%-43.3%; and non-GAAP gross margin between 38.0%-45.0%. The GAAP net loss is expected to be between $8.0 -$11.5 million or a net loss between $0.29 and $0.41 per diluted share; and non-GAAP net loss between $4.0 -$7.5 million or a net loss between $0.14 and $0.27 per diluted share.
Explore the complete 8-K earnings release (here) from Cambium Networks Corp for further details.
This article first appeared on GuruFocus.
