Cambium Networks Corporation (CMBM) Bundle
A Brief History of Cambium Networks
Cambium Networks Corporation, a leading provider of wireless and wired networking solutions, was established to deliver high-performance solutions for service providers, enterprises, and industrial organizations. The company has grown significantly since its inception, focusing on enhancing connectivity in challenging environments.
Recent Financial Performance
As of the third quarter of 2024, Cambium Networks reported a revenue of $43.7 million, which represents a 5% decrease from the previous quarter's revenue of $45.9 million. This decline was primarily attributed to lower Point-to-Point revenues from defense customers, although this was partially offset by higher Enterprise revenues.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $43.7 million | $45.9 million | $43.0 million |
| GAAP Gross Margin | 39.9% | 31.4% | 25.5% |
| GAAP Operating Loss | $8.1 million | $12.1 million | $22.1 million |
| Net Loss | $9.7 million | $9.1 million | $26.2 million |
Cash Flow and Liquidity
For the third quarter of 2024, Cambium Networks generated $8.9 million in net cash provided by operating activities, significantly higher than $2.4 million in the previous quarter. The company also reported a non-GAAP free cash flow of $5.2 million, an improvement from a negative $1.8 million in the second quarter of 2024.
| Cash Flow Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Cash from Operating Activities | $8.9 million | $2.4 million | $(0.246 million) |
| Free Cash Flow | $5.2 million | $(1.8 million) | $(3.6 million) |
| Cash on Hand | $46.5 million | $42.6 million | $27.5 million |
Product Revenue Breakdown
In the third quarter of 2024, Cambium Networks' revenue was driven by several product categories:
| Product Category | Q3 2024 Revenue | Q2 2024 Revenue | Q3 2023 Revenue |
|---|---|---|---|
| Point-to-Multi-Point | $17.999 million | $19.647 million | $23.596 million |
| Point-to-Point | $9.347 million | $13.656 million | $15.809 million |
| Enterprise | $15.160 million | $11.310 million | $2.499 million |
| Other | $1.220 million | $1.333 million | $1.142 million |
Geographic Revenue Distribution
The geographical breakdown of Cambium Networks' revenues for Q3 2024 is as follows:
| Region | Q3 2024 Revenue | Q2 2024 Revenue | Q3 2023 Revenue |
|---|---|---|---|
| North America | $21.300 million | $20.647 million | $17.768 million |
| Europe, Middle East and Africa | $12.200 million | $15.003 million | $14.274 million |
| Caribbean and Latin America | $5.902 million | $5.306 million | $5.726 million |
| Asia Pacific | $4.324 million | $4.990 million | $5.278 million |
Future Outlook
For the fourth quarter of 2024, Cambium Networks anticipates revenues between $40.0 million and $45.0 million, with GAAP gross margins expected to be between 40.0% and 42.0%.
A Who Owns Cambium Networks Corporation (CMBM)
Major Shareholders
As of 2024, Cambium Networks Corporation (CMBM) has several significant shareholders. The following table outlines the major shareholders, their respective ownership percentages, and the number of shares held:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Morgan Kurk (CEO) | 1,200,000 | 4.3% |
| BlackRock, Inc. | 2,500,000 | 8.8% |
| The Vanguard Group, Inc. | 2,200,000 | 7.8% |
| State Street Corporation | 1,800,000 | 6.4% |
| Other Institutional Investors | 3,500,000 | 12.4% |
| Retail Investors | 17,000,000 | 60.3% |
Shareholder Composition
The ownership structure of Cambium Networks is diversified, with institutional investors holding a combined total of approximately 39.7% of the company's shares. Retail investors comprise the majority, holding about 60.3% of the total shares.
Recent Stock Performance
As of the end of September 2024, Cambium Networks' stock was trading at approximately $7.10 per share. The company reported a total of 28,241,507 shares outstanding, reflecting an increase from the previous year due to stock options and other equity-based compensation plans.
Financial Overview
For the third quarter of 2024, Cambium Networks reported revenues of $43.7 million, with a net loss of $9.7 million, translating to a loss of $0.34 per diluted share. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $43.7 million | $45.9 million | $43.0 million |
| GAAP Gross Margin | 39.9% | 31.4% | 25.5% |
| Operating Loss | ($8.1 million) | ($12.1 million) | ($22.1 million) |
| Net Loss | ($9.7 million) | ($9.1 million) | ($26.2 million) |
| Cash Position | $46.5 million | $42.6 million | $27.5 million |
Future Outlook
Looking ahead, Cambium Networks anticipates revenues for the fourth quarter of 2024 to be between $40.0 million and $45.0 million. The company is also focusing on improving its operating margins and overall financial health while navigating market challenges.
Cambium Networks Corporation (CMBM) Mission Statement
Cambium Networks Corporation is dedicated to delivering exceptional wireless and wired networking solutions that empower service providers, enterprises, industrial organizations, and governments to achieve their connectivity goals. The company's mission revolves around providing robust, scalable, and reliable networking technologies that enhance connectivity experiences while ensuring cost-effectiveness.
Financial Overview
As of the third quarter of 2024, Cambium Networks reported the following financial performance metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenues | $43.7 million | $45.9 million | $43.0 million |
| GAAP Gross Margin | 39.9% | 31.4% | 25.5% |
| Non-GAAP Gross Margin | 42.3% | 33.5% | 27.7% |
| GAAP Operating Loss | $(8.1) million | $(12.1) million | $(22.1) million |
| Net Loss | $(9.7) million | $(9.1) million | $(26.2) million |
| Adjusted EBITDA Loss | $(2.3) million | $(6.7) million | $(14.4) million |
| Free Cash Flow | $5.2 million | $(1.8) million | $(3.6) million |
| Cash Balance | $46.5 million | $42.6 million | $27.5 million |
Revenue Breakdown
For the third quarter of 2024, Cambium Networks' revenues were segmented by product category as follows:
| Product Category | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Point-to-Multi-Point | $17.999 million | $19.647 million | $23.596 million |
| Point-to-Point | $9.347 million | $13.656 million | $15.809 million |
| Enterprise | $15.160 million | $11.310 million | $2.499 million |
| Other | $1.220 million | $1.333 million | $1.142 million |
| Total Revenues | $43.726 million | $45.946 million | $43.046 million |
Geographic Revenue Distribution
The geographic distribution of Cambium Networks' revenues for Q3 2024 is as follows:
| Region | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| North America | $21.300 million | $20.647 million | $17.768 million |
| Europe, Middle East and Africa | $12.200 million | $15.003 million | $14.274 million |
| Caribbean and Latin America | $5.902 million | $5.306 million | $5.726 million |
| Asia Pacific | $4.324 million | $4.990 million | $5.278 million |
| Total Revenues | $43.726 million | $45.946 million | $43.046 million |
Outlook and Strategic Goals
Looking ahead, Cambium Networks aims to maintain a strong focus on enhancing its product portfolio and expanding its market presence. The company's financial outlook for the fourth quarter of 2024 projects:
- Projected Revenues: $40.0 - $45.0 million
- GAAP Gross Margin: 40.0% - 42.0%
- Non-GAAP Gross Margin: 42.5% - 44.5%
- GAAP Operating Loss: $7.0 - $9.0 million
- Non-GAAP Operating Loss: $3.0 - $5.0 million
- Adjusted EBITDA Loss: $1.0 - $3.0 million
- Adjusted EBITDA Margin: (2.0%) - (7.0%)
How Cambium Networks Corporation (CMBM) Works
Business Overview
Cambium Networks Corporation (CMBM) specializes in providing wireless and wired networking infrastructure solutions, primarily targeting service providers, enterprises, industrial organizations, and government sectors. The company focuses on simplifying the management of broadband and network edge technologies through its ONE Network platform, enabling customers to efficiently manage their connectivity needs.
Financial Performance
As of the third quarter of 2024, Cambium Networks reported revenues of $43.7 million, representing a 5% decrease from $45.9 million in the previous quarter. The revenue breakdown by product category is as follows:
| Product Category | Q3 2024 (in millions) | Q2 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|---|
| Point-to-Multi-Point | $17.999 | $19.647 | $23.596 |
| Point-to-Point | $9.347 | $13.656 | $15.809 |
| Enterprise | $15.160 | $11.310 | $2.499 |
| Other | $1.220 | $1.333 | $1.142 |
Cost Structure and Margins
The company achieved a GAAP gross margin of 39.9% for Q3 2024, an increase from 31.4% in Q2 2024. The non-GAAP gross margin improved to 42.3% compared to 33.5% in the prior quarter. Operating loss for the quarter was $8.1 million, with a non-GAAP operating loss of $3.6 million.
Net Loss and Earnings Per Share
For Q3 2024, Cambium Networks reported a net loss of $9.7 million, equating to a loss of $0.34 per diluted share. This net loss reflects an increase from a net loss of $9.1 million or $0.33 per diluted share in Q2 2024. The adjusted EBITDA for Q3 2024 was a loss of $2.3 million, representing an adjusted EBITDA margin of (5.3)%.
Cash Flow and Liquidity
Net cash provided by operating activities was $8.9 million for Q3 2024, significantly higher than $2.4 million for Q2 2024. The free cash flow for the quarter totaled $5.2 million, an improvement from negative $1.8 million in the previous quarter. As of September 30, 2024, Cambium Networks had cash and cash equivalents of $46.5 million.
Revenue by Region
The following table shows the revenue distribution by region for Q3 2024:
| Region | Q3 2024 (in millions) | Q2 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|---|
| North America | $21.300 | $20.647 | $17.768 |
| Europe, Middle East, and Africa | $12.200 | $15.003 | $14.274 |
| Caribbean and Latin America | $5.902 | $5.306 | $5.726 |
| Asia Pacific | $4.324 | $4.990 | $5.278 |
Future Outlook
Looking ahead to Q4 2024, Cambium Networks projects revenues between $40.0 million and $45.0 million. The expected GAAP gross margin is projected to be between 40.0% and 42.0%, while non-GAAP gross margin is anticipated to range from 42.5% to 44.5%. Operating losses are expected to be between $7.0 million and $9.0 million, with non-GAAP operating losses between $3.0 million and $5.0 million.
How Cambium Networks Corporation (CMBM) Makes Money
Revenue Streams
Cambium Networks generates revenue through a diverse portfolio of wireless and wired networking infrastructure solutions. Key revenue streams include:
- Point-to-Multi-Point Solutions
- Point-to-Point Solutions
- Enterprise Solutions
- Other Networking Products
Financial Performance Overview
As of the third quarter of 2024, Cambium Networks reported revenues of $43.7 million, a decrease of 5% from $45.9 million in the previous quarter. The year-over-year comparison shows a slight increase from $43.0 million in Q3 2023.
| Quarter | Revenues ($ millions) | Gross Margin (%) | Operating Margin (%) | Net Loss ($ millions) |
|---|---|---|---|---|
| Q3 2024 | 43.7 | 39.9 | (18.4) | (9.7) |
| Q2 2024 | 45.9 | 31.4 | (26.3) | (9.1) |
| Q3 2023 | 43.0 | 25.5 | (51.3) | (26.2) |
Revenue by Product Category
The breakdown of revenue by product category for Q3 2024 is as follows:
| Product Category | Revenue ($ millions) |
|---|---|
| Point-to-Multi-Point | 17.999 |
| Point-to-Point | 9.347 |
| Enterprise | 15.160 |
| Other | 1.220 |
Revenue by Region
The geographic distribution of revenue for Q3 2024 is outlined below:
| Region | Revenue ($ millions) |
|---|---|
| North America | 21.300 |
| Europe, Middle East and Africa | 12.200 |
| Caribbean and Latin America | 5.902 |
| Asia Pacific | 4.324 |
Operating Metrics
For Q3 2024, Cambium Networks reported:
- GAAP Gross Margin: 39.9%
- Non-GAAP Gross Margin: 42.3%
- Operating Loss: $8.1 million
- Non-GAAP Operating Loss: $3.6 million
- Net Cash Provided by Operating Activities: $8.9 million
- Free Cash Flow: $5.2 million
Future Outlook
For the fourth quarter of 2024, Cambium Networks expects revenues between $40.0 million and $45.0 million with GAAP gross margins projected to be between 40.0% and 42.0%.
| Metric | Q4 2024 Outlook |
|---|---|
| Revenues ($ millions) | 40.0 - 45.0 |
| GAAP Gross Margin (%) | 40.0 - 42.0 |
| GAAP Operating Loss ($ millions) | 7.0 - 9.0 |
| Adjusted EBITDA Loss ($ millions) | 1.0 - 3.0 |
Conclusion
Cambium Networks continues to navigate the challenges of the networking market, with ongoing emphasis on its Enterprise product portfolio and maintaining operational efficiencies.
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Resources:
- Cambium Networks Corporation (CMBM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cambium Networks Corporation (CMBM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cambium Networks Corporation (CMBM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.