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Cambium Networks (CMBM) investor relations material
Cambium Networks Q3 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2024 revenue was $43.7 million, with strong enterprise growth offset by declines in point-to-point (P2P) and defense revenues; revenue rose 1.6% year-over-year but fell 5% sequentially.
Gross margin improved to 42.3% non-GAAP and 39.9% GAAP, driven by lower inventory reserves and production costs.
Operating loss narrowed to $8.1 million GAAP and $3.6 million non-GAAP; net loss was $9.7 million GAAP ($0.34/share) and $3.8 million non-GAAP ($0.14/share).
Free cash flow was $5.2 million, and cash balance stood at $46.5 million as of September 30, 2024.
The company breached EBITDA and liquidity covenants, is seeking forbearance, and is implementing cost reductions to address liquidity and profitability challenges.
Financial highlights
Q3 2024 revenue: $43.7 million (down 5% sequentially, up 1.6% year-over-year); nine-month revenue: $132.0 million (-26.7% year-over-year).
Non-GAAP gross margin: 42.3%; GAAP gross margin: 39.9%; nine-month gross margin: 30.7%.
Non-GAAP net loss: $3.8 million; GAAP net loss: $9.7 million; adjusted EBITDA loss: $2.3 million, improved from $6.7 million in Q2.
Cash from operations was $8.9 million, inventories decreased by $7 million to $43 million.
Interest expense for Q3 2024 increased to $1.4 million from $0.6 million year-over-year.
Outlook and guidance
Q4 2024 revenue expected between $40–$45 million.
Non-GAAP gross margin guidance: 42.5%–44.5%; GAAP gross margin: 40.0%–42.0%.
Non-GAAP operating loss projected at $3–$5 million; adjusted EBITDA between -$1 and -$3 million.
Management expects continued financial improvement, though at a slower pace, with ongoing revenue headwinds and competitive pressures.
The company projects future noncompliance with financial covenants and is seeking solutions with its lender.
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