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Cambium Networks IPO: What You Need To Know

Shanthi Rexaline

The wide adoption of the internet has spawned many companies that have potential to turn in staggering growth. A communications products company with an addressable market opportunity of over $22 billion is set to debut this week.

The IPO Terms

Cambium Networks (NASDAQ: CMBM) proposes to offer 5.8 million shares in an initial public offering, with the pricing estimated to be between $13 and $15, according to a S-1/A filing done June 13.

At mid-point of the price range, the company expects to raise about $81.2 million.

Cambium qualifies as an "emerging growth company" and therefore it has opted to comply with some reduced public company reporting requirements.

JP Morgan and Goldman Sachs are the leading underwriters for the offering.

The company seeks to list its shares on the Nasdaq under the ticker symbol CMBM.

The Company

Founded in 2011, Cambium provides wireless broadband networking infrastructure solutions for internet service providers, enterprises and government agencies. Its wireless portfolio includes intelligent radios, smart antennas, radio frequency, or RF, algorithms, wireless-aware switches and its cloud-based network management software.

The intelligent edge – automated optimization of data flow at the outermost points in the network enabled by Cambium's proprietary RF technology and software – offers network operators increased performance, visibility, control and management.

The Illinois, Chicago-based company touts a customer base of over 10,000 network operators, with about 70% of revenues coming from existing customers.

The Finances

Cambium reported revenues of $241.76 million for the fiscal year 2018, up from the $216.67 million reported in 2017. The revenues for the three-month period ended March 31 increased about 16.5% year-over-year to $68.11 million.

It operates internationally, with sales outside the U.S. accounting for 57% of its total revenues in 2018.

The company swung to a loss of $1.51 million in 2018 from a profit of $9.13 million in 2017. However, it reported a profit of $1.86 million for the three months ended March 2019.

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