We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cambium (CMBM) Q2 Loss Wider Than Expected on Lower Revenues
Read MoreHide Full Article
Cambium Networks Corporation (CMBM - Free Report) reported soft second-quarter 2024 results, with the top and bottom lines missing the respective Zacks Consensus Estimate. The leading wireless solutions provider recorded a year-over-year revenue contraction due to a decline in net sales, high inventory levels and macroeconomic headwinds. High incentives and discounts to distributors also hurt revenues.
Net Income
On a GAAP basis, the company reported a net loss of $9.1 million or a loss of 33 cents per share compared with a net loss of $2.6 million or a loss of 10 cents per share a year ago. The downturn was primarily attributable to a significant revenue decline.
Non-GAAP net loss was $7.1 million or a loss of 25 cents per share against a net income of $0.9 million or 3 cents per share in the year-ago quarter. The bottom line was wider than the Zacks Consensus Estimate of a loss of 21 cents.
Cambium Networks Corporation Price, Consensus and EPS Surprise
Quarterly net sales decreased considerably to $45.9 million from $59.5 million in the year-ago quarter. The net sales decline in the Point-to-Multi-Point (PMP) and Point-to-Point (PTP) businesses hurt the top line. The top line missed the consensus estimate of $47 million.
By product category, revenues from PMP were $19.6 million compared with $26.7 million a year ago. Inventory adjustments and the timing of the FCC’s approval of the 6 GHz spectrum affected demand from service providers.
Revenues from the PTP business were down to $13.6 million from $25.1 million in the year-ago quarter. Delays in the U.S. federal budgetary allocations for defense sales affected the PTP segment sales. Revenues from the Enterprise business witnessed a sharp improvement to $11.3 million from $6.4 million in the year-ago quarter.
Region-wise, revenues from North America decreased to $20.6 million from $39.5 million in the year-ago quarter. Net sales in the EMEA region more than doubled to $15 million from $6.8 million. Revenues from the Asia Pacific fell to $5 million from $7.2 million in the year-earlier quarter. Revenues from the Caribbean and Latin America region declined from $6 million to $5.3 million.
Other Details
Non-GAAP gross profit was $15.4 million for a corresponding margin of 33.5% compared with respective figures of $29.9 million and 50.3% in the year-ago quarter. Lower volumes of high-margin Enterprise products, low freight capitalization and elevated inventory levels adversely impacted the gross margin. Non-GAAP operating loss was $7.9 million against an operating income of $1.6 million in the prior-year quarter.
Cash Flow & Liquidity
In the June quarter, Cambium generated $2.4 million in cash from operating activities against cash utilization of $4.5 million in the prior-year quarter. As of Jun 30, 2024, the company had $42.6 million in cash with $65.7 million in long-term debt.
Outlook
For the third quarter of 2024, revenues are estimated to be in the range of $43-$48 million. Non-GAAP gross margin is projected to be 41.5-43.5%. Non-GAAP operating expenses are expected to be $23.4-$24.4 million. The company anticipates a non-GAAP net loss of $3.8-$5.4 million or a loss of 14-19 cents per share.
For 2024, revenues are estimated to be in the range of $180-$190 million. Non-GAAP gross margin is projected to be about 37%. The company anticipates a non-GAAP net loss of $24.6-$29.4 million or a loss of 87 cents to $1.04 per share.
Cambium is taking active initiatives to optimize cost structure. Its strategy to identify and invest in key growth areas is likely to bring long-term benefits. Management expects the normalization of channel inventory for the Enterprise business to take a considerable amount of time. FCC’s approval of Cambium’s affordable 6 GHz solutions will likely boost the PMP business’s prospects. The company anticipates revenues in the PTP business to improve as defense allocation picks up.
Keysight Technologies, Inc. (KEYS - Free Report) is due to release third-quarter fiscal 2024 earnings on Aug 20. The Zacks Consensus Estimate for earnings is pegged at $1.35 per share, implying a decline of 38.4% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 5.5%. KEYS delivered an average earnings surprise of 4.4% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is slated to release second-quarter fiscal 2025 earnings on Aug 22. The Zacks Consensus Estimate for earnings is pegged at $1.63 per share, indicating growth of 14% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 18.7%. WDAY delivered an average earnings surprise of 10.9% in the last four reported quarters.
Ubiquiti Inc. (UI - Free Report) is slated to release fourth-quarter fiscal 2024 earnings on Aug 23. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, indicating a decline of 3.5% from the year-ago reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cambium (CMBM) Q2 Loss Wider Than Expected on Lower Revenues
Cambium Networks Corporation (CMBM - Free Report) reported soft second-quarter 2024 results, with the top and bottom lines missing the respective Zacks Consensus Estimate. The leading wireless solutions provider recorded a year-over-year revenue contraction due to a decline in net sales, high inventory levels and macroeconomic headwinds. High incentives and discounts to distributors also hurt revenues.
Net Income
On a GAAP basis, the company reported a net loss of $9.1 million or a loss of 33 cents per share compared with a net loss of $2.6 million or a loss of 10 cents per share a year ago. The downturn was primarily attributable to a significant revenue decline.
Non-GAAP net loss was $7.1 million or a loss of 25 cents per share against a net income of $0.9 million or 3 cents per share in the year-ago quarter. The bottom line was wider than the Zacks Consensus Estimate of a loss of 21 cents.
Cambium Networks Corporation Price, Consensus and EPS Surprise
Cambium Networks Corporation price-consensus-eps-surprise-chart | Cambium Networks Corporation Quote
Revenues
Quarterly net sales decreased considerably to $45.9 million from $59.5 million in the year-ago quarter. The net sales decline in the Point-to-Multi-Point (PMP) and Point-to-Point (PTP) businesses hurt the top line. The top line missed the consensus estimate of $47 million.
By product category, revenues from PMP were $19.6 million compared with $26.7 million a year ago. Inventory adjustments and the timing of the FCC’s approval of the 6 GHz spectrum affected demand from service providers.
Revenues from the PTP business were down to $13.6 million from $25.1 million in the year-ago quarter. Delays in the U.S. federal budgetary allocations for defense sales affected the PTP segment sales. Revenues from the Enterprise business witnessed a sharp improvement to $11.3 million from $6.4 million in the year-ago quarter.
Region-wise, revenues from North America decreased to $20.6 million from $39.5 million in the year-ago quarter. Net sales in the EMEA region more than doubled to $15 million from $6.8 million. Revenues from the Asia Pacific fell to $5 million from $7.2 million in the year-earlier quarter. Revenues from the Caribbean and Latin America region declined from $6 million to $5.3 million.
Other Details
Non-GAAP gross profit was $15.4 million for a corresponding margin of 33.5% compared with respective figures of $29.9 million and 50.3% in the year-ago quarter. Lower volumes of high-margin Enterprise products, low freight capitalization and elevated inventory levels adversely impacted the gross margin. Non-GAAP operating loss was $7.9 million against an operating income of $1.6 million in the prior-year quarter.
Cash Flow & Liquidity
In the June quarter, Cambium generated $2.4 million in cash from operating activities against cash utilization of $4.5 million in the prior-year quarter. As of Jun 30, 2024, the company had $42.6 million in cash with $65.7 million in long-term debt.
Outlook
For the third quarter of 2024, revenues are estimated to be in the range of $43-$48 million. Non-GAAP gross margin is projected to be 41.5-43.5%. Non-GAAP operating expenses are expected to be $23.4-$24.4 million. The company anticipates a non-GAAP net loss of $3.8-$5.4 million or a loss of 14-19 cents per share.
For 2024, revenues are estimated to be in the range of $180-$190 million. Non-GAAP gross margin is projected to be about 37%. The company anticipates a non-GAAP net loss of $24.6-$29.4 million or a loss of 87 cents to $1.04 per share.
Cambium is taking active initiatives to optimize cost structure. Its strategy to identify and invest in key growth areas is likely to bring long-term benefits. Management expects the normalization of channel inventory for the Enterprise business to take a considerable amount of time. FCC’s approval of Cambium’s affordable 6 GHz solutions will likely boost the PMP business’s prospects. The company anticipates revenues in the PTP business to improve as defense allocation picks up.
Zacks Rank
Cambium currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Keysight Technologies, Inc. (KEYS - Free Report) is due to release third-quarter fiscal 2024 earnings on Aug 20. The Zacks Consensus Estimate for earnings is pegged at $1.35 per share, implying a decline of 38.4% from the year-ago reported figure.
Keysight has a long-term earnings growth expectation of 5.5%. KEYS delivered an average earnings surprise of 4.4% in the last four reported quarters.
Workday, Inc. (WDAY - Free Report) is slated to release second-quarter fiscal 2025 earnings on Aug 22. The Zacks Consensus Estimate for earnings is pegged at $1.63 per share, indicating growth of 14% from the year-ago reported figure.
Workday has a long-term earnings growth expectation of 18.7%. WDAY delivered an average earnings surprise of 10.9% in the last four reported quarters.
Ubiquiti Inc. (UI - Free Report) is slated to release fourth-quarter fiscal 2024 earnings on Aug 23. The Zacks Consensus Estimate for earnings is pegged at $1.67 per share, indicating a decline of 3.5% from the year-ago reported figure.