Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 23, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CMBM | ||
Entity Registrant Name | CAMBIUM NETWORKS CORP | ||
Entity Central Index Key | 0001738177 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Shell Company | false | ||
Entity Public Float | $ 175,028,150 | ||
Entity Common Stock, Shares Outstanding | 27,338,844 | ||
Entity Current Reporting Status | Yes | ||
Entity File Number | 001-38952 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 3800 Golf Road | ||
Entity Address, Address Line Two | Suite 360 | ||
Entity Address, City or Town | Rolling Meadows | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60008 | ||
City Area Code | 345 | ||
Local Phone Number | 814-7600 | ||
Entity Incorporation State Country Code | E9 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Ordinary shares, $0.0001 par value | ||
Security Exchange Name | NASDAQ | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2022. | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Chicago, Illinois | ||
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 48,162 | $ 59,291 |
Receivables, net of allowances of $683 and $577 | 89,321 | 69,773 |
Inventories, net | 57,068 | 33,777 |
Recoverable income taxes | 117 | 860 |
Prepaid expenses | 11,857 | 12,170 |
Other current assets | 6,464 | 4,718 |
Total current assets | 212,989 | 180,589 |
Noncurrent assets | ||
Property and equipment, net | 11,271 | 10,490 |
Software, net | 8,439 | 5,867 |
Operating lease assets | 4,011 | 5,899 |
Intangible assets, net | 9,173 | 10,777 |
Goodwill | 9,842 | 9,842 |
Deferred tax assets, net | 12,782 | 7,604 |
Other noncurrent assets | 955 | 1,200 |
TOTAL ASSETS | 269,462 | 232,268 |
Current liabilities | ||
Accounts payable | 31,284 | 28,241 |
Accrued liabilities | 28,042 | 21,948 |
Employee compensation | 7,394 | 16,601 |
Current portion of long-term external debt, net | 3,158 | 2,489 |
Deferred revenues | 8,913 | 6,880 |
Other current liabilities | 8,429 | 5,981 |
Total current liabilities | 87,220 | 82,140 |
Noncurrent liabilities | ||
Long-term external debt, net | 24,463 | 26,965 |
Deferred revenues | 8,617 | 5,363 |
Noncurrent operating lease liabilities | 2,170 | 4,112 |
Other noncurrent liabilities | 1,619 | 1,551 |
Total liabilities | 124,089 | 120,131 |
Shareholders' equity | ||
Share capital; $0.0001 par value; 500,000,000 shares authorized at December 31, 2021 and 2022; 26,892,082 shares issued and 26,735,175 outstanding at December 31, 2021 and 27,522,734 shares issued and 27,313,273 outstanding at December 31, 2022 | 3 | 3 |
Additional paid in capital | 138,997 | 124,117 |
Treasury shares, at cost, 156,907 shares at December 31, 2021 and 209,461 shares at December 31, 2022 | (4,922) | (3,906) |
Accumulated (deficit) earnings | 12,822 | (7,378) |
Accumulated other comprehensive loss | (1,527) | (699) |
Total shareholders’ equity | 145,373 | 112,137 |
TOTAL LIABILITIES AND EQUITY | $ 269,462 | $ 232,268 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowances for receivables | $ 577 | $ 683 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 27,522,734 | 26,892,082 |
Common stock, shares, outstanding | 27,313,273 | 26,735,175 |
Treasury stock, shares | 209,461 | 156,907 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 296,899 | $ 335,854 | $ 278,459 |
Cost of revenues | 151,759 | 175,058 | 139,049 |
Gross profit | 145,140 | 160,796 | 139,410 |
Operating expenses | |||
Research and development | 49,865 | 51,322 | 46,371 |
Sales and marketing | 44,452 | 41,819 | 37,756 |
General and administrative | 24,982 | 25,065 | 24,696 |
Depreciation and amortization | 5,961 | 6,171 | 6,639 |
Total operating expenses | 125,260 | 124,377 | 115,462 |
Operating income | 19,880 | 36,419 | 23,948 |
Interest expense, net | 1,977 | 4,269 | 5,326 |
Other expense (income), net | (114) | 244 | 491 |
Income before income taxes | 18,017 | 31,906 | 18,131 |
Benefit for income taxes | (2,183) | (5,515) | (444) |
Net income | $ 20,200 | $ 37,421 | $ 18,575 |
Earnings per share | |||
Basic | $ 0.75 | $ 1.42 | $ 0.72 |
Diluted | $ 0.72 | $ 1.31 | $ 0.70 |
Weighted-average number of shares outstanding to compute net earnings per share | |||
Basic | 26,919,550 | 26,421,087 | 25,707,092 |
Diluted | 28,025,278 | 28,628,136 | 26,403,112 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based compensation included in costs and expenses | $ 10,680 | $ 7,717 | $ 3,436 |
Cost of Revenues | |||
Share-based compensation included in costs and expenses | 219 | 152 | 67 |
Research and Development | |||
Share-based compensation included in costs and expenses | 4,532 | 3,044 | 1,599 |
Sales and Marketing | |||
Share-based compensation included in costs and expenses | 2,603 | 1,935 | 980 |
General and Administrative | |||
Share-based compensation included in costs and expenses | $ 3,326 | $ 2,586 | $ 790 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 20,200 | $ 37,421 | $ 18,575 |
Other comprehensive loss | |||
Foreign currency translation adjustment | (828) | (135) | (185) |
Comprehensive income | $ 19,372 | $ 37,286 | $ 18,390 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Share Capital | Additional Paid in Capital | Treasury Shares | Accumulated (deficit) equity | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2019 | $ 39,929 | $ 3 | $ 104,773 | $ (1,094) | $ (63,374) | $ (379) |
Beginning balance, shares at Dec. 31, 2019 | 25,673,000 | |||||
Net income | 18,575 | 18,575 | ||||
Share-based compensation | 3,436 | 3,436 | ||||
Issuance of vested shares | 234,000 | |||||
Treasury shares withheld for net settlement | 4 | 4 | ||||
Treasury shares withheld for net settlement, shares | (11,000) | |||||
Proceeds from exercise of share options | $ 1,628 | 1,628 | ||||
Proceeds from exercise of share options, shares | 138,878 | 139,000 | ||||
Foreign currency translation | $ (185) | (185) | ||||
Ending balance at Dec. 31, 2020 | 63,387 | $ 3 | 109,837 | (1,090) | (44,799) | (564) |
Ending balance, shares at Dec. 31, 2020 | 26,035,000 | |||||
Net income | 37,421 | 37,421 | ||||
Share-based compensation | 7,717 | 7,717 | ||||
Issuance of ordinary shares under ESPP | 1,756 | 1,756 | ||||
Issuance of ordinary shares under ESPP, shares | 82,000 | |||||
Issuance of vested shares | 229,000 | |||||
Treasury shares withheld for net settlement | (2,816) | (2,816) | ||||
Treasury shares withheld for net settlement, shares | (65,000) | |||||
Proceeds from exercise of share options | $ 4,807 | 4,807 | ||||
Proceeds from exercise of share options, shares | 454,354 | 454,000 | ||||
Foreign currency translation | $ (135) | (135) | ||||
Ending balance at Dec. 31, 2021 | 112,137 | $ 3 | 124,117 | (3,906) | (7,378) | (699) |
Ending balance, shares at Dec. 31, 2021 | 26,735,175 | |||||
Net income | 20,200 | 20,200 | ||||
Share-based compensation | 10,680 | 10,680 | ||||
Issuance of ordinary shares under ESPP | 1,966 | 1,966 | ||||
Issuance of ordinary shares under ESPP, shares | 152,096 | |||||
Issuance of vested shares | 236,133 | |||||
Treasury shares withheld for net settlement | (1,016) | (1,016) | ||||
Treasury shares withheld for net settlement, shares | (52,000) | |||||
Proceeds from exercise of share options | $ 2,234 | 2,234 | ||||
Proceeds from exercise of share options, shares | 242,423 | 242,423 | ||||
Foreign currency translation | $ (828) | (828) | ||||
Ending balance at Dec. 31, 2022 | $ 145,373 | $ 3 | $ 138,997 | $ (4,922) | $ 12,822 | $ (1,527) |
Ending balance, shares at Dec. 31, 2022 | 27,313,273 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 20,200 | $ 37,421 | $ 18,575 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 3,913 | 3,356 | 3,685 |
Amortization of software and intangible assets | 3,683 | 3,621 | 3,583 |
Amortization of debt issuance costs | 304 | 1,130 | 546 |
Share-based compensation | 10,680 | 7,717 | 3,436 |
Deferred income taxes | (5,189) | (6,065) | (1,072) |
Provision for inventory excess and obsolescence | 3,743 | 11 | 1,896 |
Other | (125) | (207) | 540 |
Change in assets and liabilities: | |||
Receivables | (12,906) | (11,174) | 3,165 |
Inventories | (27,034) | 174 | 5,696 |
Prepaid expenses | 286 | (8,034) | 1,163 |
Accounts payable | 2,767 | (2,710) | 6,097 |
Accrued employee compensation | (8,866) | 1,885 | 11,116 |
Accrued liabilities | (427) | 2,517 | 1,495 |
Other assets and liabilities | 5,917 | 318 | (3,020) |
Net cash provided by (used in) operating activities | (3,054) | 29,960 | 56,901 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (4,574) | (6,259) | (3,407) |
Purchase of software | (4,671) | (3,907) | (1,659) |
Cash paid for acquisitions | (334) | ||
Net cash used in investing activities | (9,245) | (10,166) | (5,400) |
Cash flows from financing activities: | |||
Proceeds from issuance of term loan | 29,812 | ||
Proceeds from issuance of revolver debt | 10,000 | ||
Repayment of term loan | (1,969) | (55,250) | (10,000) |
Repayment of revolver debt | (10,000) | ||
Payment of debt issuance costs | (1,220) | ||
Issuance of ordinary shares under ESPP | 1,966 | 1,756 | |
Taxes paid from shares withheld | (986) | (2,816) | 4 |
Proceeds from share option exercises | 2,234 | 4,807 | 1,628 |
Payment to extinguish debt | (42) | ||
Net cash (used in) provided by financing activities | 1,245 | (22,953) | (8,368) |
Effect of exchange rate on cash | (75) | (22) | (7) |
Net increase (decrease) in cash | (11,129) | (3,181) | 43,126 |
Cash, beginning of period | 59,291 | 62,472 | 19,346 |
Cash, end of period | 48,162 | 59,291 | 62,472 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 1,349 | 779 | 2,232 |
Interest paid | $ 807 | $ 2,062 | $ 3,998 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Description of Business and Summary of Significant Accounting Policies Business Cambium Networks Corporation (“Cambium” or "Cambium Networks" or the “Company”), incorporated under the laws of the Cayman Islands, is a holding company whose principal operating entities are Cambium Networks, Ltd. (UK), Cambium Networks, Inc. (USA), and Cambium Networks Private Limited (India). On June 26, 2019, the Company completed an Initial Public Offering and the Company's ordinary shares began trading on the Nasdaq Global Markets. Cambium Networks Corporation and its wholly owned subsidiaries design, develop, and manufacture wireless broadband and Wi-Fi networking infrastructure solutions that are used by businesses, governments, and service providers in urban, suburban and rural environments. Cambium Networks' products simplify and automate the design, deployment, optimization, and management of broadband and Wi-Fi access networks through intelligent automation. The Company operates on a calendar year ending December 31. As such, all references to 2020, 2021 and 2022 contained within these notes relate to the calendar year, unless otherwise indicated. Basis of Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Cambium Networks Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. In 2022, management determined that certain costs previously included as general and administrative expenses related to other functions of the business. Prior period results have been revised to reflect the allocation of these costs to their respective functions. These costs primarily include facility costs such as leased space and shared IT costs. Revisions were made to increase research and development expense by $ 3.4 million and selling and marketing expense by $ 1.0 million and decrease general and administrative expense by $ 4.4 million for the year ended December 31, 2021 and to increase research and development expense by $ 3.2 million and selling and administrative expense by $ 1.0 million and decrease general and administrative expense by $ 4.2 million for the year ended December 31, 2020. These revisions were concluded to be immaterial and had no impact on operating income. Use of Accounting Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates these estimates, including those related to the provision for excess and obsolete inventory, the carrying amount of estimated inventory returns, the estimated amount expected to be refunded to customers in respect of inventory returns, fair value of equity awards granted to employees and the associated forfeiture rates, fair value of assets acquired, liabilities assumed, goodwill and identifiable intangible assets in business combinations, leases, provision for income taxes, recoverability of deferred tax assets. The Company bases estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Segments Management has determined that it operates as one operating segment and one reporting unit as it only reports financial information on an aggregate and consolidated basis to its Chief Executive Officer, who is the Company’s chief operating decision maker ("CODM"). Decisions about resource allocation or operating performance assessments are not made below a total company level. Consequently, impairment testing of goodwill is performed at the consolidated level as one reporting unit. Recognition of revenues Revenues consist primarily of revenues from the sale of hardware products. Revenues also include amounts for software products, extended warranty on hardware products and software subscription services. Substantially all products are sold through distributors and other channel partners, such as resellers and systems integrators. The Company recognizes revenue to reflect the transfer of control of promised products or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for products or services. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company identifies its distinct performance obligations under each contract. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. Hardware products with essential embedded software, software products, extended warranty on hardware products and software subscriptions have been identified as separate performance obligations. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring products or services to a customer. Exchanges made as part of the Company’s stock rotation program meet the definition of a right of return. An adjustment to revenue is made to adjust the transaction price to exclude the consideration related to products expected to be returned. The Company records an asset at the carrying amount of the estimated stock returns and a liability for the estimated amount expected to be refunded to the customer. The transaction price also excludes other forms of consideration provided to the customer, such as volume-based rebates and cooperative marketing allowances. The Company recognizes revenue when, or as, it satisfies a performance obligation by transferring control of a promised product or service to a customer. Revenue from hardware products with embedded software is recognized when control is transferred to the customer, which is typically at the time of shipment. Software revenue is from perpetual license software and is recognized at the point in time the customer is able to use or benefit from the software. Extended warranty is available for purchase on hardware products and is a performance obligation that is satisfied over time, beginning on the effective date of the warranty term and ending on the expiration of the warranty term. The Company recognizes revenue on extended warranties on a straight-line basis over the warranty period. Revenue from subscription services is recognized ratably over the term in which the services are provided and our performance obligation is satisfied. Multiple performance obligations The Company enters into revenue arrangements that may consist of multiple performance obligations, such as hardware and extended warranty. The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis for each distinct product or service in the contract. The best evidence of standalone selling price is the observable price of a product or service when the Company sells that product or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the transaction price allocated to each performance obligation using the expected costs plus a margin approach. Receivables and concentration of credit risk Trade accounts receivable are recorded at invoiced amounts, net of the allowance for credit losses. The Company considers the credit risk of all customers and regularly monitors credit risk exposure in its trade receivables. The Company’s standard credit terms with their customers are generally net 30 to 60 days . The Company had one customer representing more than 10 % of trade receivables at December 31, 2021 and 2022. The Company had two customers representing more than 10 % of revenues for the years ended December 31, 2020 and 2021 and one customer representing more than 10 % of revenues for the year ended December 31, 2022. The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based on historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables, and credit and liquidity indicators for individual customers. Inventory The Company’s inventories are primarily finished goods for resale and, to a lesser extent, raw materials, which have been either consigned to the Company’s third-party manufacturers or are held by the Company. Inventories are stated at the lower of cost or net realizable value. In determining the cost of raw materials, consumables and goods purchased for resale, the weighted average purchase price is used. For finished goods, cost is computed as production cost including capitalized inbound freight costs. The valuation of inventory also requires the Company to estimate excess or obsolete inventory. The determination of excess or obsolete inventory is based on the cost of inventory on hand versus the Company's forecast of demand, and in consideration of historical usage and management's judgment. Any adjustments to the valuation of inventory are included in cost of revenues. Property and equipment Per ASC 360, Property, Plant, and Equipment , property and equipment is stated at cost. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of each asset based on its asset class. Leasehold improvements are amortized over the shorter of their useful lives or the lease term. See Note 3 – Property and equipment for the useful lives for each asset class. Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in operating expense in the Consolidated Statements of Operations. For the years ended 2020, 2021 and 2022, the loss recognized was immaterial. Software Software may be purchased or developed internally for internal use. Costs related to internal use software are accounted for in accordance with ASC 350-40, Internal Use Software. Costs are expensed as incurred during the preliminary project stage of an internal use software project. Costs are capitalized once the project has been approved by management and is in the application development stage. Post implementation/operation costs, such as maintenance and training costs, are expensed as incurred. Any costs incurred to provide upgrades or enhancements are capitalized only if they provide additional functionality that did not previously exist. Amortization of internal use software begins when the software is ready for internal use and is amortized over its estimated useful life. The amortization expense for internal use software is computed using the straight-line method over three to seven years . Costs related to certain software, which is available for sale, are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased, or Marketed , when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and the product is ready for coding. The Company does not typically capitalize costs related to the development of first-generation product offerings as technological feasibility generally coincides with general availability of the software. Amortization of software costs to be sold or marketed externally begins when the product is available for sale to customers and is amortized using the straight-line method over its estimated useful life of three years . Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations. Critical accounting estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, as well as assumptions about customer attrition rate. Other estimates associated with the accounting for acquisitions may change as additional info rmation becomes available regarding the assets acquired and liabilities assumed. Goodwill and intangible assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired in a business combination. Goodwill is measured at cost and is not amortized. Intangible assets acquired, either individually or with a group of assets, are initially recognized and measured at fair value. The Company uses third-party specialists to assist management to determine fair values and estimated useful lives for intangible assets acquired in business combinations. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives of between 3 and 18 years . The Company has no intangible assets with indefinite lives. In accordance with ASC 350, Goodwill and Other , the Company assesses goodwill for impairment at least annually and whenever events or circumstances that would more likely than not, reduce the fair value below its carrying value. The Company tested goodwill for impairment at December 31. The Company did no t recognize an impairment loss of goodwill for the years ended December 31, 2020, 2021 and 2022. Annual impairment testing is completed at the reporting unit level. Management has concluded the Company operates as one reporting unit and one operating segment for annual impairment testing. In completing its impairment evaluations, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. In performing this qualitative assessment, the Company assesses relevant events and changes in circumstances, including industry and market conditions, operating results, business plans, and entity-specific events that would affect the fair value or the carrying amount of a reporting unit. If it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company determines the fair value of the reporting unit and compares the fair value to its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and no further steps are required. Impairment of long-lived assets The Company evaluates its long-lived assets, including property and equipment, software, right of use assets, and definite-lived intangible assets for impairment by completing a quarterly qualitative assessment and whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. An impairment loss is recognized when the net book value of such assets exceeds the estimated future undiscounted cash flows attributable to the assets or asset group. If impairment is indicated, the asset is written down to its estimated fair value. The Company did no t recognize any material impairment losses of long-lived assets for the years ended December 31, 2020, 2021 and 2022. Leases The Company has both cancelable and noncancelable operating leases for office space, vehicles, and office equipment. The Company records leases in accordance with ASC 842, Leases , (“ASC 842”). The Company records a right-of-use asset and lease liability on its consolidated balance sheet for all leases that qualify. The operating lease liability represents the present value of the future minimum lease payments over the lease term using the Company’s incremental borrowing rate at the lease commencement date. The right-of-use asset reflects adjustments for the derecognition of deferred rent and prepaid rent. Leases with an initial term of 12 months or less are not recorded on the Company’s consolidated balance sheet, and are expensed on a straight-line basis over the lease term. The Company does not include any renewal periods in the lease term for its leases as sufficient economic factors do not exist that would compel it to continue to use the underlying asset beyond the initial non-cancelable term. The Company has elected to combine the lease and non-lease components into a single lease component for all of its leases. See Note 15 – Leases for further details. Product warranties The Company provides a standard warranty on its products, with the term depending on the product, and records a liability for the estimated future costs associated with potential warranty claims. Provisions for warranty claims are recorded at the time products are sold based on historical experience factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. These provisions are reviewed and adjusted by management periodically to reflect actual and anticipated experience. The warranty costs are reflected in the Company’s consolidated statements of operations within cost of revenues. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment. Income taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted income tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect of a change in income tax rates on deferred tax assets and liabilities is recognized in the income tax provision in the period that includes the enactment date. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and adjusts the valuation allowances accordingly. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In general, it is the practice and intention of the Company to reinvest the earnings of its subsidiaries in those operations. As of December 31, 2020, 2021 and 2022, the Company had not made a provision for withholding taxes on approximately $ 13.8 million, $ 27.2 million and $ 41.7 million, respectively, of undistributed earnings at each period-end that are indefinitely reinvested. Generally, such amounts become subject to taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability to the undistributed earnings in these subsidiaries. The Company may be subject to income tax audits in all of the jurisdictions in which it operates and, as a result, must also assess exposures to any potential issues arising from current or future audits of current and prior years’ tax returns. Accordingly, the Company must assess such potential exposures and, where necessary, provide for any expected loss. The Company would recognize the benefit of a tax position if it is more likely than not to be sustained. Recognized tax positions are measured at the largest amount more likely than not to be realized upon settlement. To the extent that the Company establishes a liability, its income tax expense would be increased. If the Company ultimately determines that payment of these amounts is unnecessary, it would reverse the liability and recognize an income tax benefit during the period in which new information becomes available indicating that the liability is no longer necessary. The Company would record an additional income tax expense in the period in which new information becomes available indicating that the income tax liability is greater than its original estimate. The Company did not record such an adjustment for the years ended December 31, 2020, 2021 or 2022. Share-based compensation The Company accounts for share-based compensation in accordance with the guidance in ASC 718, Share-based Payments , by measuring and recognizing compensation expense for all share-based payments based on estimated grant date fair values for equity settled awards. Awards are granted under the 2019 Share Incentive Plan. The 2019 Share Incentive Plan provides for the grant of incentive share options, nonqualified share options, share appreciation rights, restricted share awards, restricted share units, or other share-based awards and performance awards. The Company also issues shares under its Employee Share Purchase Plan ("ESPP"). The first offering period or purchase period under the ESPP began on January 1, 2021. Under the ESPP, the purchase price of the Company's shares is 85 % of the lower of the fair market value of the shares on the first trading date of each offering period or on the purchase date. Contingencies In accordance with ASC 450, Contingencies , the Company periodically evaluates all pending or threatened contingencies and any commitments, if any, that are reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Foreign currency translation The Company records any gain and loss associated with foreign currencies in accordance with ASC 830, Foreign Currency Matters . The reporting currency of the Company is the U.S. dollar and the functional currency for each operating subsidiary is the local currency of the operating subsidiary other than for Cambium Networks, Ltd. (UK) for which the functional currency is the U.S. dollar. Local currency denominated monetary assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues, cost of revenues and expenses are translated at the average exchange rate in effect during the applicable period. The Company recognizes foreign exchange gains and losses in other expense on its consolidated statements of operations and accumulated other comprehensive income (loss) on its consolidated balance sheets. Research and development costs Research and development expenses consists primarily of salary and benefit expenses for employees and contractors engaged in research, design and development activities, and costs for prototypes, travel costs and shared facility and IT costs. The Company also incurs research and development costs associated with the development of software for both internal use and to be marketed externally. Research and development costs, other than those associated with the development of software that meet the criteria for capitalization, are expensed as incurred. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Note 2. Balance sheet components Receivables, net The Company’s accounts receivable arise from sales on credit to customers. The Company establishes an estimate for credit losses to present the net amount of accounts receivable expected to be collected. The estimate is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivables. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity indicators for individual customers. The components of receivable, net are as follows (in thousands): December 31, December 31, 2021 2022 Trade accounts receivable $ 69,471 $ 89,758 Other receivables 985 140 Total receivables 70,456 89,898 Less: Allowance for credit losses ( 683 ) ( 577 ) Receivables, net $ 69,773 $ 89,321 The estimate for credit losses activity was as follows (in thousands): Year ended Year ended December 31, 2021 2022 Beginning balance $ 919 $ 683 Increase, charged to expense 172 93 Recoveries ( 163 ) ( 199 ) Amounts written-off ( 245 ) — Ending balance $ 683 $ 577 Inventories, net Inventories, net consisted of the following (in thousands): December 31, December 31, 2021 2022 Finished goods $ 31,991 $ 50,052 Raw materials 7,353 15,010 Gross inventory 39,344 65,062 Less: Excess and obsolete provision ( 5,567 ) ( 7,994 ) Inventories, net $ 33,777 $ 57,068 The following table reflects the activity in the Company’s inventory excess and obsolete provision (in thousands): Year ended Year ended 2021 2022 Beginning balance $ 5,855 $ 5,567 Inventory written off ( 468 ) ( 1,316 ) Increase in excess and obsolete provision 180 3,743 Ending balance $ 5,567 $ 7,994 Accrued liabilities Accrued liabilities consisted of the following (in thousands): December 31, December 31, 2021 2022 Accrued goods and services $ 12,278 $ 10,633 Accrued inventory purchases 2,218 3,189 Accrued customer rebates 7,355 13,797 Other 97 423 Accrued liabilities $ 21,948 $ 28,042 Accrued warranty Provision for warranty claims is primarily related to our hardware products and recorded at the time products are sold. The change to accrued warranty was as follows (in thousands): Year ended Year ended 2021 2022 Beginning balance $ 1,714 $ 1,731 Fulfillment of assumed acquisition warranty ( 216 ) ( 142 ) Provision increase, net 233 62 Ending balance $ 1,731 $ 1,651 At December 31, 2021, $ 1.2 million is included in Other current liabilities and $ 0.5 million is included in Other noncurrent liabilities on the Company’s consolidated balance sheet. At December 31, 2022, $ 1.2 million is included in Other current liabilities and $ 0.5 million is included in Other noncurrent liabilities on the Company’s consolidated balance sheet. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3. Property and equipment Property and equipment, net consisted of the following (in thousands): December 31, December 31, Useful Life 2021 2022 Equipment and tooling 3 to 5 years $ 29,621 $ 33,026 Computer equipment 3 to 5 years 3,835 4,572 Furniture and fixtures 10 years 844 809 Leasehold improvements 2 to 3 years 457 472 Total cost 34,757 38,879 Less: Accumulated depreciation ( 24,267 ) ( 27,608 ) Property and equipment, net $ 10,490 $ 11,271 Total depreciation expense was $ 3.7 million, $ 3.4 million and $ 3.9 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Software
Software | 12 Months Ended |
Dec. 31, 2022 | |
Research and Development [Abstract] | |
Software | Note 4. Software Software consisted of the following (in thousands): December 31, 2021 December 31, 2022 Useful Life Gross carrying amount Accumulated amortization Net balance Gross carrying amount Accumulated amortization Net balance Acquired and Software for internal use 3 to 7 years $ 15,855 $ ( 14,907 ) $ 948 $ 15,995 $ ( 15,326 ) $ 669 Software marketed for external sale 3 years 7,164 ( 2,245 ) 4,919 11,650 ( 3,880 ) 7,770 Total $ 23,019 $ ( 17,152 ) $ 5,867 $ 27,645 $ ( 19,206 ) $ 8,439 Amortization of acquired and internal use software is computed using the straight-line method over an estimated useful life of generally three to seven years . Amortization expense recognized on acquired and internal use software is reflected in depreciation and amortization in the consolidated statements of operations. Amortization expense was $ 0.8 million, $ 0.7 million and $ 0.4 million for the years ended December 31, 2020, 2021 and 2022, respectively. Amortization expense recognized on software to be sold or marketed externally was $ 0.6 million, $ 0.8 million and $ 1.6 million for the years ended December 31, 2020, 2021 and 2022, respectively, and is included in cost of revenues on the consolidated statements of operations. Based on capitalized software assets at December 31, 2022, estimated amortization expense in future fiscal years is as follows (in thousands): Year ending December 31, Acquired and internal use software Software Total 2023 286 2,934 3,220 2024 170 2,769 2,939 2025 120 1,750 1,870 2026 87 317 404 2027 6 — 6 Thereafter — — — Total amortization $ 669 $ 7,770 $ 8,439 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets When the Company acquired the trade assets of Motorola Solutions, Inc.’s wireless point-to-point and point-to-multi-point businesses, the transaction generated goodwill and certain intangible assets. The goodwill associated with this transaction was recorded by Cambium Networks Corporation and allocated to Cambium Networks, Ltd. and Cambium Networks, Inc. using a revenue and asset allocation method. Although goodwill has been allocated to two operating subsidiaries, the Company operates as one operating segment and one reporting unit and therefore, goodwill is reported, and impairment testing performed, at the Cambium Networks Corporation consolidated level. The carrying amount of goodwill for the years ended December 31, 2021 and 2022 was $ 9.8 million. The was no change in the carrying amount of goodwill for the years ended December 31, 2021 and 2022. The Company tests goodwill and intangible assets for impairment annually on December 31 and more frequently if impairment indicators exist. For 2021 and 2022, the Company performed qualitative assessments of significant events and circumstances such as a reporting unit’s historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors, including the impact of the current global outbreak of COVID-19 and macro-economic developments, to determine the existence of potential indicators of impairment and assess if it is more likely than not that the fair value of the reporting unit or intangible asset is less than their carrying value. If indicators of impairment are identified, a quantitative impairment test is performed. The qualitative assessments for 2021 and 2022 included our assessment of supply chain constraints, COVID-19, and macroeconomic considerations. Based on the operating results for 2021 and 2022 and these other considerations, the Company believes that it is more likely than not that the enterprise value for its one reporting unit and the fair value of intangibles is still greater than their carrying values. Accordingly, there was no goodwill impairment to record for either period. In addition, there were no triggering events or changes in circumstances during 2021 and 2022 that would have required an interim impairment assessment other than at the annual test date. The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands): December 31, 2021 December 31, 2022 Useful Life Gross Accumulated Net balance Gross Accumulated Net balance Unpatented 3 - 7 years $ 14,660 $ ( 14,555 ) $ 105 $ 14,660 $ ( 14,660 ) $ — Customer 5 - 18 years 19,300 ( 8,628 ) 10,672 19,300 ( 10,127 ) 9,173 Patents 7 years 11,300 ( 11,300 ) — 11,300 ( 11,300 ) — Trademarks 10 years 5,270 ( 5,270 ) — 5,270 ( 5,270 ) — Total $ 50,530 $ ( 39,753 ) $ 10,777 $ 50,530 $ ( 41,357 ) $ 9,173 Intangible assets are amortized over their expected useful life and none are expected to have a significant residual value at the end of their useful life. Intangible assets amortization expense was $ 2.2 million, $ 2.1 million and $ 1.6 million for the years ended December 31, 2020, 2021 and 2022, respectively. Based on capitalized intangible assets as of December 31, 2022, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Year ending December 31, Amortization 2023 1,498 2024 1,498 2025 1,498 2026 1,498 2027 1,498 Thereafter 1,683 Total amortization $ 9,173 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt As of December 31, 2022, the Company had $ 28.0 million outstanding under its current term loan facility with Bank of America and $ 0.0 million in borrowings under its revolving credit facility. The Company has available $ 45.0 million under its revolving credit facility with Bank of America. As of December 31, 2021, the Company had $ 30.0 million outstanding under its term loan facility with Bank of America and $ 0.0 million in borrowings under its revolving credit facility with Bank of America. The following table reflects the current and noncurrent portions of the external debt facilities at December 31, 2021 and December 31, 2022 (in thousands): December 31, December 31, 2021 2022 Term loan facility $ 30,000 $ 28,031 Less debt issuance costs ( 546 ) ( 410 ) Total debt 29,454 27,621 Less current portion of term facility ( 2,625 ) ( 3,281 ) Current portion of debt issuance costs 136 123 Total long-term external debt, net $ 26,965 $ 24,463 Secured credit agreements On November 17, 2021 ("Closing Date"), Cambium Networks entered into a credit agreement (the “BofA Credit Agreement") among Cambium Networks, Ltd. as the borrower (the “Borrower”), Cambium Networks Corporation as Holdings and a Guarantor (“Holdings”), Cambium (US), L.L.C., as Intermediate Holdings and a Guarantor, certain other subsidiaries of Holdings party thereto as Guarantors (with the Borrower and each Guarantor being, individually, a “Loan Party” and collectively, the “Loan Parties”), Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), a Lender, Swingline Lender and an L/C Issuer, the other Lenders party thereto from time to time and Bank of America, N.A. as Sole Lead Arranger and Sole Bookrunner. The BofA Credit Agreement provides for loans and other financial accommodations to the Borrower in an aggregate principal amount of up to $ 75.0 million in the form of (i) a five-year term loan facility (the “Term Facility”) in the amount of $ 30.0 million, all of which was drawn on the Closing Date to repay the outstanding balance under the existing credit facility with Silicon Valley Bank and (ii) a five-year revolving credit facility (the “Revolving Facility” and together with the Term Facility, the “Credit Facilities”) in the amount of $ 45.0 million, including a $ 5.0 million sublimit for the issuance of letters of credit and a $ 5.0 million sublimit for Swingline Loans. The Credit Facilities were made available (a) to repay existing outstanding indebtedness under the existing credit facilities with Silicon Valley Bank, (b) to pay fees and expenses incurred in connection with the transactions contemplated by the BofA Credit Agreement and (c) for working capital requirements and other general corporate purposes of the Loan Parties and their subsidiaries. The Term Facility and the Revolving Facility terminate on the date that is five ( 5 ) years after the Closing Date (the “Maturity Date”). The Borrower has the option to borrow Term Loans under the Term Facility in the form of either Base Rate Loans or Eurodollar Rate Loans, as defined in the BofA Credit Agreement. The Term Facility borrowed on the Closing Date was borrowed as a Eurodollar Rate Loan with a six ( 6 ) month Interest Period. The outstanding principal amounts of the Term Facility bear interest for the applicable Interest Period at a rate per annum equal to the Eurodollar Rate (the rate equal to the London Interbank Offered Rate) for such Interest Period plus the Applicable Rate (which is 2.00 % per annum for the first full fiscal quarter following the Closing Date and thereafter ranges from 1.75 % to 2.25 % per annum, depending on Holdings’ Consolidated Leverage Ratio). If Holdings’ Consolidated Leverage Ratio is less than 1.00 :1.00, the Applicable Rate for the Term Facility will be 1.75 %. If Holdings’ Consolidated Leverage Ratio is greater than or equal to 1.00 :1.00 but less than 2.00 :1.00, the Applicable Rate for the Term Facility will be 2.00 %. If Holdings’ Consolidated Leverage Ratio is greater than or equal to 2.00 :1.00, the Applicable Rate for the Term Facility will be 2.25 %. Based on the Company's Consolidated Leverage Ratio at December 31, 2022, the applicable rate on the Term Facility was 1.75 % and the effective interest rate on the Term Facility was 6.86 %. The Borrower has the option to borrow Revolving Loans under the Revolving Facility in the form of either Base Rate Loans or Eurodollar Rate Loans. The outstanding principal amounts of Eurodollar Rate Loans borrowed under the Revolving Facility bear interest at the same rates as described above for the Eurodollar Rate Loan under the Term Facility. The outstanding principal amounts of the Credit Facilities that are borrowed as (or converted to) Base Rate Loans under the BofA Credit Agreement bear interest from the applicable Borrowing date at a rate per annum equal to the Base Rate (a fluctuating rate of interest per annum equal to the highest of (a) the Federal Funds Rate plus 0.50 %, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the one ( 1 ) month Eurodollar Rate plus 1.75 %) plus the Applicable Rate (which is 0.25 % per annum for the first full fiscal quarter following the Closing Date and thereafter ranges from 0.00 % to 0.50 % per annum, depending on Holdings’ Consolidated Leverage Ratio). If Holdings’ Consolidated Leverage Ratio is less than 1.00 :1.00, the Applicable Rate for Base Rate Loans under the Revolving Facility will be 0.00 %. If Holdings’ Consolidated Leverage Ratio is greater than or equal to 1.00 :1.00 but less than 2.00 :1.00, the Applicable Rate for Base Rate Loans under the Revolving Facility will be 0.25 %. If Holdings’ Consolidated Leverage Ratio is greater than or equal to 2.00 :1.00, the Applicable Rate for Base Rate Loans under the Revolving Facility will be 0.50 %. The Borrower will pay an undrawn commitment fee ranging from 0.20 % to 0.25 % (depending on Holdings’ Consolidated Leverage Ratio) on the unused portion of the Revolving Facility. Obligations under the BofA Credit Agreement are guaranteed by Holdings and its material Subsidiaries pursuant to the BofA Credit Agreement. To secure the obligations of the Loan Parties under the Credit Facilities, each Loan Party has entered into a Security and Pledge Agreement (the “Security Agreement”), dated as of November 17, 2021, pursuant to which the applicable Grantors granted to the Administrative Agent, for the benefit of the Lenders and the other Secured Parties, a valid and perfected first priority lien and security interest, subject to customary exceptions, in (i) equity interests of the Domestic Loan Parties, and (ii) substantially all tangible and intangible personal property of the Domestic Loan Parties (unless and until certain Events of Default have occurred and are continuing, at which time the Administrative Agent may require a Foreign Loan Party to provide a valid and perfected security interest in substantially all of its tangible and intangible assets subject to certain customary exceptions), and all proceeds and products of the property and assets described above. In addition to the liens granted under the Security Agreement, Cambium (US), L.L.C. entered into a Share Charge, as chargor (the “Chargor”) dated November 17, 2021 (the “Share Charge”) with Bank of America, as Collateral Agent for itself and for the Secured Parties (the “Collateral Agent”), pursuant to which the Chargor pledged to the Collateral Agent the shares of the Borrower. The BofA Credit Agreement contains certain representations and warranties, certain affirmative covenants, certain negative covenants, certain financial covenants and certain conditions that are customarily required for similar financings. These covenants include, among others: • A restriction on creating or assuming certain liens; • A restriction on creating, incurring or assuming additional indebtedness, subject to specified permitted debt; • A restriction on making or holding certain investments, subject to certain exceptions; • A restriction on mergers, liquidations, consolidations and other fundamental changes, subject to specified exceptions; • A restriction on certain sales and other dispositions of property or assets, including sale and leaseback transactions, subject to certain conditions and exceptions; • A restriction on payments of dividends, share repurchases and other distributions, subject to certain exceptions; and • A restriction on entering into certain transactions with affiliates. In addition, Holdings may not permit its consolidated leverage ratio to exceed 2.75 :1.00, and must maintain a minimum consolidated fixed charge coverage ratio of not less than 1.25 :1.00. Determination of compliance with the consolidated leverage ratio commenced as of December 31, 2021 and compliance with the consolidated fixed charge coverage ratio commenced as of March 31, 2022. Based on the above covenants in the BofA Agreement, the Company believes that all covenants will be met at subsequent testing dates for the next twelve months and has classified the amounts due in excess of twelve months as noncurrent. As of December 31, 2022, the Company was in compliance with both its consolidated leverage ratio and fixed charge coverage ratio. The BofA Credit Agreement also contains customary Events of Default that include, among others, non-payment of principal, interest or fees, violations of certain covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross defaults to material indebtedness and events constituting a change of control. The occurrence and continuance of an Event of Default could result in the termination of commitments under the Credit Facilities and the declaration that all outstanding loans are immediately due and payable in whole or in part. Maturities on the external debt outstanding at December 31, 2022 under the BofA Agreement are as follows (in thousands): Year ending December 31, 2023 2,625 2024 2,625 2025 2,625 2026 19,500 Total $ 27,375 Interest expense, net Net Interest expense, including bank charges and amortization of debt issuance costs on the external debt, was $ 5.3 million, $ 4.3 million and $ 2.0 million for the years ended December 31, 2020, 2021 and 2022, respectively. Interest expense for the year ended December 31, 2021 included $ 0.7 million of additional amortization of deferred issuance costs related to the Silicon Valley Bank credit agreement. Expected discontinuation of LIBOR In July 2017, the United Kingdom’s Financial Conduct Authority ("FCA"), which regulates LIBOR, announced it will no longer compel banks to submit rates for the calculation of LIBOR after 2021 and in March 2021, confirmed the dates each tenor would cease. The 1-week and 2-month US Dollar LIBOR tenors ceased on December 31, 2021 and the remaining five US Dollar tenors (overnight, 1-month, 3-month, 6-month and 12-month) will cease on June 30, 2023. The BofA Credit Agreement matures on November 17, 2026 , which is after the cessation of all tenors of the US Dollar LIBOR rate. The Company is evaluating the potential impact of the transition from LIBOR as an interest rate benchmark to other potential alternative reference rates, including SOFR. Eurodollar loans under the BofA Credit Agreement are currently indexed to Eurodollar Rate (the rate equal to the London Interbank Offered Rate). The BofA Credit Agreement contemplates the discontinuation of LIBOR and provides that a benchmark replacement rate shall be determined by reference to other applicable rates and additionally allows the Company to switch to a Base Rate loan, as defined in the BofA Credit Agreement. The Company will continue to actively assess the related opportunities and risks involved in this transition. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | Note 7. Employee benefit plans The Company’s employee benefit plans currently consist of a defined contribution plan in the United States and a separate defined contribution plan in the UK. The Company does not offer any other postretirement benefit plans, such as retiree medical and dental benefits or deferred compensation agreements to its employees or officers. U.S. plan U.S. regular, full-time employees are eligible to participate in the Cambium Networks, Inc. 401(k) Plan, which is a qualified defined contribution plan under section 401(k) of the Internal Revenue Service Code. Under the Cambium Networks, Inc. 401(k) Plan, the Company contributes a dollar-for-dollar match of the first 4 % an employee contributes to the plan. Employees are eligible to participate on the first day of the month following their date of hire and begin receiving company contributions three-months after they become eligible to participate in the plan. Company matching contributions are made each pay period, but the funds do not vest until the employee’s second anniversary of employment with the Company. Employees are always fully vested in their own contributions. All contributions, including the Company match, are made in cash and invested in accordance with the participants’ investment elections. Contributions made by the Company under the Cambium Networks, Inc. 401(k) Plan were $ 1.0 million, $ 1.2 million and $ 1.4 million for the years ended December 31, 2020, 2021 and 2022, respectively. UK plan Regular, full-time UK employees are eligible to participate in the Cambium Networks Ltd. Stakeholder Pension Scheme, which is a qualified defined contribution plan. Employees are eligible to participate on the first of the month following receipt of their enrollment form, and eligible employees are automatically enrolled in the plan at a default employee contribution rate of 3 % and a company contribution rate of 5 % of the employee’s basic salary. The Company contribution rate increases by 1 % for each additional 1% that the employee contributes up to a maximum of 7 %. Company matching contributions vest immediately and employees are always vested in their own contributions. All contributions, including the Company match, are made in cash and deposited in the participant’s account each pay period. The total contributed by the Company under this plan was $ 0.4 million, $ 0.4 million and $ 0.4 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net | Note 8. Other expense (income), net Other expense (income), net was expense of $ 0.5 million, $ 0.2 million and income of $( 0.1 ) million for the years ended December 31, 2020, 2021 and 2022, respectively, and represents foreign exchange losses. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation | Note 9. Share-based compensation 2019 Share incentive plan In June 2019, the Company’s Board of Directors adopted, and its shareholders approved, the 2019 Share Incentive Plan (“2019 Plan”). The 2019 Plan provides for the grant of incentive share options, nonqualified share options, share appreciation rights, restricted share awards (“RSAs”), restricted share units (“RSUs”), other share-based awards and performance awards. The share reserve under the 2019 Plan will be automatically increased on the first day of each fiscal year, beginning with the fiscal year ending December 31, 2020 and will continue until, and including, the fiscal year ending December 31, 2029. The number of shares added annually will be equal to the lowest of 1,320,000 shares, 5 % of the number of the Company’s shares outstanding on the first day of such fiscal year, or an amount determined by the Board of Directors. On February 25, 2022 the Company registered 1,320,000 additional shares that may be issued under the 2019 Plan. The Company’s employees, officers, directors, consultants, and advisors are eligible to receive awards under the 2019 Plan. Incentive share options, however, may only be granted to its employees. The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plans during the year ended December 31, 2022: Number of shares Available for grant at December 31, 2021 1,853,240 Added to 2019 Share Incentive Plan 1,320,000 RSUs granted ( 418,896 ) Options granted ( 963,000 ) Shares withheld in settlement of taxes and/or exercise price 52,554 Expirations 8,799 Forfeitures 147,667 Available for grant at December 31, 2022 2,000,364 As of December 31, 2022, the Company estimates the pre-tax unrecognized compensation expense of $ 22.7 million related to all unvested share-based awards, including share options and restricted share units will be recognized through the fourth quarter of 2026. The Company expects to satisfy the exercise of share options and future distributions of shares for restricted share units and restricted share awards by issuing new ordinary shares which have been reserved under the 2019 Plan. The Company uses the Black-Scholes option pricing model to estimate the fair value of share options. The Company utilized a forfeiture rate of 8.2 % d uring the year ended December 31, 2022 for estimating the forfeitures of share options and restricted share units granted. Share options Share options typically have a contractual term of ten years from grant date. The following is a summary of option activity for the Company’s share incentive plans for year ended December 31, 2022: Options Weighted Weighted Aggregate Outstanding at December 31, 2021 2,797,992 $ 12.64 7.9 $ 38,295,799 Options granted 963,000 $ 15.61 — $ — Options exercised ( 242,423 ) $ 9.21 — $ — Options expired ( 8,799 ) $ 14.77 — $ — Options forfeited ( 114,551 ) $ 9.64 — $ — Outstanding at December 31, 2022 3,395,219 $ 13.83 7.6 $ 28,985,969 Options exercisable at December 31, 2022 1,807,566 $ 12.45 6.8 $ 17,697,417 Options vested and expected to vest at December 31, 2022 3,337,698 $ 13.81 7.6 $ 28,535,242 The intrinsic value for share options outstanding and exercisable is defined as the difference between the market value of the Company’s ordinary shares as of the end of the period and the grant price. At December 31, 2020, 2021 and 2022, the aggregate intrinsic value of options exercisable under the Company’s share incentive plans was $ 12.7 million, $ 18.5 million and $ 17.7 million, respectively, as determined as of the date of grant. No share options were exercised prior to 2020. The Company had 138,878 , 454,354 and 242,423 options exercised during the years ended December 31, 2020, 2021 and 2022, respectively. The cash received from the share options exercised in 2020, 2021 and 2022 was $ 1.6 million, $ 4.8 million and $ 2.2 million, respectively. At December 31, 2022, there was $ 12.1 million in unrecognized pre-tax share-based compensation expense, net of estimated forfeitures, related to unvested share option awards. The unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of 2.8 years. The Company estimates the fair value of share options using the Black-Scholes option pricing model. The fair value of share options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of share options is estimated using the following weighted-average assumptions: Year Ended December 31, 2020 2021 2022 Expected dividend yield — — — Risk-free interest rate 0.39 % 1.14 % 2.96 % Weighted-average expected volatility 50.0 % 50.9 % 72.9 % Expected term (in years) 6.5 6.5 5.5 Weighted average grant-date fair value per share of options granted $ 7.56 $ 21.36 $ 9.94 Restricted shares The following is a summary of restricted shares activity for the Company’s share incentive plans for the year ended December 31, 2022: Units Weighted RSU balance at December 31, 2021 547,343 $ 22.47 RSUs granted 418,896 $ 15.31 RSUs vested ( 236,133 ) $ 22.05 RSUs forfeited ( 33,116 ) $ 24.47 RSU balance at December 31, 2022 696,990 $ 18.22 During 2021 and 2022, 267,175 and 418,896 RSUs were granted under the 2019 Plan, respectively. The Company withheld 64,761 and 52,554 shares to pay the employees’ portion of the minimum payroll withholding taxes on the RSUs and RSAs that vested in 2021 and 2022, respectively. At December 31, 2022, there was $ 10.6 million in unrecognized pre-tax compensation expense, net of estimated forfeitures, related to unvested share awards. The unrecognized compensation expense is expected to be recognized over a weighted average period of 2.7 years. Employee share purchase plan In June 2019, the Company’s Board of Directors adopted, and its shareholders approved, the Employee Share Purchase Plan (“ESPP”). The ESPP was effective on June 25, 2019 and the offering period or purchase period under the ESPP began on January 1, 2021. A total of 1,334,427 shares are available under the ESPP, which includes 550,000 shares originally available, 256,730 additional shares registered on March 24, 2020, 260,345 additional shares registered on March 1, 2021 and 267,352 additional shares registered on February 25, 2022. The number of shares that will be available for sale under the ESPP will be increased annually on the first day of each fiscal year beginning in 2020, and will be equal to the lowest of: 275,000 shares; 1 % of the outstanding shares as of the last day of the immediately preceding fiscal year, or such other amount as the administrator may determine. The purchase price of the shares will be 85 % of the lower of the fair market value of our shares on the first trading day of each offering period or on the purchase date. For the year ended December 31, 2021, the Company recognized $ 0.7 million of share-based compensation expense related to the ESPP. There were 39,061 and 42,401 shares issued under the ESPP during the six-month offering periods that ended on June 30, 2021 and December 31, 2021, respectively. For the year ended December 31, 2022, the Company recognized $ 0.9 million of share-based compensation expense related to the ESPP. There were 87,229 and 64,867 sh ares issued under the ESPP during the six-month offering periods that ended on June 30, 2022 and December 31, 2022, respectively. |
Share Capital - Shares
Share Capital - Shares | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Share capital - shares | Note 10. Share capital – shares The following table reflects the share capital activity: Number of Par value Balance at December 31, 2021 26,735,175 $ 3 Issuance of ordinary shares under employee share purchase plan 152,096 — Issuance of vested shares 236,133 — Share options exercised 242,423 — Shares withheld for net settlement of shares issued ( 52,554 ) — Balance at December 31, 2022 27,313,273 $ 3 As of December 31, 2022, no dividends have been declared or paid. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | Note 11. Earnings per share Basic net earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Diluted net earnings per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period. For purposes of this calculation, share options, RSUs, and RSAs are considered to be ordinary share equivalents but are excluded from the calculation of diluted earnings (loss) per share when including them would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted net earnings per share (in thousands, except for share and per share data): Year Ended December 31, 2020 2021 2022 Numerator: Net income $ 18,575 $ 37,421 $ 20,200 Denominator: Basic weighted average shares outstanding 25,707,092 26,421,087 26,919,550 Dilutive effect of share option awards 228,388 1,846,998 851,011 Dilutive effect of restricted share units and restricted share awards 467,632 348,934 242,528 Dilutive effect of employee share purchase plan — 11,117 12,189 Diluted weighted average shares outstanding 26,403,112 28,628,136 28,025,278 Net earnings per share, basic $ 0.72 $ 1.42 $ 0.75 Net earnings per share, diluted $ 0.70 $ 1.31 $ 0.72 In the computation of diluted earnings per share for the year ended December 31, 2020, 2,082 ordinary share equivalents were excluded because their inclusion would have been antidilutive. In the computation of diluted earnings per share for the year ended December 31, 2021, no ordinary share equivalents were excluded. In the computation of diluted earnings per share for the year ended December 31, 2022, 1,361,666 ordinary share equivalents were excluded because their inclusion would have been antidilutive. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12. Income taxes For the years ended December 31, 2020, 2021 and 2022, income before income taxes includes the following components (in thousands): Years ended December 31, 2020 2021 2022 United States $ 2,648 $ 10,943 $ 10,269 Foreign 15,483 20,963 7,748 Total $ 18,131 $ 31,906 $ 18,017 For the years ended December 31, 2020, 2021 and 2022, the benefit for income taxes consists of the following (in thousands): Years ended December 31, 2020 2021 2022 Current: U.S. federal $ ( 198 ) $ 268 $ 1,174 State ( 181 ) ( 94 ) 847 Foreign 1,007 376 985 Current tax provision 628 550 3,006 Deferred: U.S. federal $ ( 664 ) $ ( 1,662 ) $ ( 3,814 ) State ( 144 ) ( 147 ) ( 610 ) Foreign ( 264 ) ( 4,256 ) ( 765 ) Deferred tax benefit ( 1,072 ) ( 6,065 ) ( 5,189 ) Benefit for income taxes $ ( 444 ) $ ( 5,515 ) $ ( 2,183 ) In applying the statutory tax rate in the effective income tax rate reconciliation, the Company used the statutory U.S. federal income tax rate of 21 % rather than the Cayman Islands zero percent rate. The table below reconciles the Company's tax provision based on the statutory U.S. federal income tax rate to its effective tax rate for the years ended December 31, 2020, 2021 and 2022 (in thousands): Years ended December 31, 2020 2021 2022 Income tax expense at federal statutory rate $ 3,808 $ 6,700 $ 3,784 State and local income taxes net of federal benefit ( 295 ) 10 27 Tax rate changes ( 925 ) 21 ( 873 ) Valuation allowance changes ( 1,226 ) ( 7,902 ) 857 Foreign rate differential ( 181 ) ( 164 ) 138 Research and development ( 1,455 ) ( 811 ) ( 2,840 ) Share-based compensation - excess tax benefit ( 171 ) ( 3,444 ) ( 778 ) Foreign derived intangible income ( 349 ) — ( 2,258 ) Other 350 75 ( 240 ) Benefit for income taxes $ ( 444 ) $ ( 5,515 ) $ ( 2,183 ) Foreign rate differential represents the non-U.S. jurisdictions. The country having the greatest impact on the tax rate adjustment line shown in the above table as “foreign rate differential” for the years ended December 31, 2020, 2021 and 2022 is the UK where the statutory income tax rate was 19.0 % for 2020, 2021 and 2022. The deferred tax assets and liabilities result from differences in the timing of the recognition of certain income and expense items for tax and financial reporting purposes. The sources of these differences for the years ended December 31, 2021 and 2022 are as follows (in thousands): Years ended December 31, 2021 2022 NOL and tax credit carryforwards $ 6,886 $ 5,883 Capitalized research costs — 6,017 Disallowed interest carryforwards 909 906 Lease liability 584 289 Property and equipment 27 — Share-based compensation 1,130 2,665 Intangible assets 221 260 Other 353 320 Subtotal 10,110 16,340 Less: Valuation allowance ( 471 ) ( 1,328 ) Net deferred tax assets 9,639 15,012 Property and equipment — ( 775 ) Operating lease assets ( 505 ) ( 242 ) Prepaid expenses and other assets ( 400 ) ( 425 ) Capitalized software development costs ( 1,141 ) ( 788 ) Net deferred tax liabilities ( 2,046 ) ( 2,230 ) Total deferred tax assets, net $ 7,593 $ 12,782 Deferred tax assets/liabilities included in the balance sheet are: Years ended December 31, 2021 2022 Deferred tax assets - non-current $ 7,604 $ 12,782 Deferred tax liabilities - non-current 11 — Total deferred tax assets, net $ 7,593 $ 12,782 For the years ended December 31, 2021 and 2022, the following table reflects the activity in the Company’s valuation allowance on deferred tax assets (in thousands): Years ended December 31, 2021 2022 Beginning balance $ 8,373 $ 471 (Release) increase of valuation allowance ( 7,902 ) 857 Ending balance $ 471 $ 1,328 In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. The Company considers projected future taxable income, reversing taxable temporary differences, carryback opportunities, and tax-planning strategies in making this assessment. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets before they otherwise expire. Cumulative losses are objective evidence that limit the ability to consider other subjective evidence such as the Company’s projections for future growth. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company’s projections for growth. As of December 31, 2021 the Company’s deferred tax assets were primarily the result of UK and U.S. net operating losses (“NOLs”), tax credit carryforwards from the UK and U.S., share-based compensation, and the UK corporate interest restriction. As of December 31, 2022, the Company's deferred tax assets were primarily the result of capitalized research costs, UK net operating losses, tax credit carryforwards from the UK and U.S., share-based compensation, and UK corporate interest restriction. For the year ended December 31, 2021, the Company recorded a net decrease in its valuation allowance of $ 7.7 million, related to the deferred tax assets (NOL and research and development credits) of the UK Company. In 2021, management concluded that all of the valuation allowance on the Company's UK entity's deferred tax assets was no longer needed. This was primarily due to a 12-quarter cumulative income through the first quarter of 2021 and the forecast of future taxable income. As of December 31, 2021, based on the evaluation of positive and negative evidence, the Company believes it is more likely than not that the net deferred tax assets will be realized by its UK entity. Accordingly, management has recognized a non-recurring tax benefit of $ 7.7 million related to the reversal of this valuation allowance. For the year ended December 31, 2022, the Company recorded an increase in its valuation allowance of $ 0.8 million related to the deferred tax assets (California research and development credits) of the U.S. Company. During 2022, the Company added state research and development tax credit benefits in the state of California, which are only available to offset actual tax liabilities. The state research and development tax credits are in excess of the amount reasonably expected to be utilized over the next five years. Accordingly, the Company established an additional $ 0.8 million of valuation allowance during 2022, for a total of $ 1.3 million valuation allowance on the related deferred tax asset at December 31, 2022. During 2021, the Company's valuation allowance on the research and development tax credits for the state of California decreased $ 0.2 million and was $ 0.5 million at December 31, 2021. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and therefore, the need for a valuation allowance on a quarterly basis. Regarding the valuation allowance remaining on the research and development tax credits for the state of California, the Company may release all or a portion of its valuation allowance, if results and other subjective evidence continue to reflect pre tax income such that the deferred tax assets become more likely than not to be realizable. The Company has gross income tax NOL carryforwards related to its U.S. and international operations. For the year ended December 31, 2021, the NOL carryforward was approximately $ 28.7 million, of which $ 25.6 million has an indefinite life and $ 3.1 million had a life greater than 10 years. For the year ended December 31, 2022, the NOL carryforward was approximately $ 17.0 million, of which $ 15.3 million has an indefinite life and $ 1.7 million has a life greater than 10 years. The Company’s gross NOL carryforwards expire as follows: Years ended December 31, 2021 2022 Unlimited carryforward $ 25.6 million $ 15.3 million 10+ year carryforward $ 3.1 million $ 1.7 million The Company has tax credit carryforwards related to research and development. For the year ended December 31, 2021, the carryforward was approximately $ 1.5 million, of which $ 0.7 million had an indefinite life and $ 0.8 million had a life of greater than 10 years. For the year ended December 31, 2022, the carryforward was approximately $ 2.0 million, all of which has an indefinite life. The Company’s research and development tax credit carryforwards and their expiration are as follows: Years ended December 31, 2021 2022 Unlimited carryforward $ 0.7 million $ 2.0 million 10+ year carryforward $ 0.8 million — The Company has gross corporate interest restriction (“CIR”) disallowance carryforwards related to its UK operations. For the year ended December 31, 2021, the CIR carryforward was approximately $ 4.8 million, all of which had an indefinite life. For the year ended December 31, 2022, the CIR carryforward was approximately $ 3.9 million, all which has an indefinite life. The Company has recorded a reduction to the deferred tax asset of $ 0.9 million related to utilization of a portion of the CIR as of December 31, 2022. The Company’s gross carryforwards expire as follows: Years ended December 31, 2021 2022 Unlimited carryforward $ 4.8 million $ 3.9 million The Company files income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions and many foreign jurisdictions. The U.S., UK, and India are the main taxing jurisdictions in which the Company operates. Open tax years subject to audit vary depending on the tax jurisdiction. In the U.S., the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2019 . In the UK, the tax returns that are open are for the tax years 2020, 2021, and 2022 . In India, the tax returns that are open are for India assessment years 2018 through 2022 . The Company believes its tax positions comply with applicable tax law and intends to vigorously defend its position. However, differing positions on certain issues could be upheld by tax authorities, which could adversely affect the Company’s financial condition and results of operations. The Company does no t have any unrecognized tax positions as of December 31, 2021 and 2022. The Company recorded income tax benefits of $ 0.4 million, $ 5.5 million, and $ 2.2 million for the years ended December 31, 2020, 2021 and 2022, with an effective tax rate of ( 2.4 )%, ( 17.3 )% and ( 12.1 )%, respectively. The Company’s effective tax rate of ( 2.4 )% for the year ended December 31, 2020 differed from the U.S. statutory rate of 21.0 % primarily due to a benefit on research and development credit, a benefit on the partial release of a valuation allowance, and a tax benefit due to the increase of the tax rate applied to UK deferred tax assets. For the year ended December 31, 2021, the Company's effective tax rate was ( 17.3 )%. The effective tax rate differed from the U.S. statutory rate of 21.0 % primarily due to a benefit on the release of a valuation allowance against its deferred tax assets of $ 7.9 million and a $ 3.4 million benefit arising on employee restricted share vesting and option exercises. For the year ended December 31, 2022, the Company's effective tax rate was ( 12.1 )%. The effective tax rate differed from the U.S. statutory rate of 21.0 % primarily due to research and development tax credits of $ 2.8 million, a benefit on Foreign Derived Intangible Income of $ 2.3 million, and a tax benefit of $ 0.9 million on revaluation of the UK deferred tax assets at a higher tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 13. Commitments and contingencies In accordance with ASC 460, Guarantees , the Company recognizes the fair value for guarantee and indemnification arrangements it issues or modifies, if these arrangements are within the scope of the interpretation. In addition, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications in order to identify if a loss has incurred. If the Company determines it is probable that a loss has occurred, then any such estimated loss would be recognized under those guarantees and indemnifications and would be recognized in the Company’s consolidated statements of operations and corresponding consolidated balance sheets during that period. Indemnification The Company generally indemnifies its distributors, value added reseller and network operators against claims brought by a third party to the extent any such claim alleges that the Company’s product infringes a patent, copyright or trademark or violates any other proprietary rights of that third party. Although the Company generally tries to limit the maximum amount of potential future liability under its indemnification obligations, in certain agreements this liability may be unlimited. The maximum potential amount of future payments the Company may be required to make under these indemnification agreements is not estimable. The Company indemnifies its directors and officers and select key employees, including key employees serving as directors or officers of the Company’s subsidiaries, for certain events or occurrences, subject to certain limits, while the director or officer is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the director’s or officer’s term of service. The Company may terminate the indemnification agreements with its directors, officers or key employees upon the termination of their services as directors or officers of the Company or its subsidiaries, or the termination of activities for which indemnification has been provided, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that limits its exposure. The Company believes the fair value of these indemnification agreements is minimal. Purchase commitments with contract manufacturers and suppliers We purchase components from a variety of suppliers and use contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that allow them to procure inventory based upon criteria as defined by us, such as forecasted demand. The Company may be liable to purchase excess product or aged material from our suppliers following reasonable mitigation efforts. Warranties The Company offers a standard warranty on its products, with the term depending on the product, and records a liability for the estimated future costs associated with potential warranty claims. The Company’s responsibility under its standard warranty is the repair or replacement of in-warranty defective product, or to credit the purchase price of the defective product, at its discretion, without charge to the customer. The Company’s estimate of future warranty costs is largely based on historical experience factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. The standard warranty is included in either Other current liabilities or Other noncurrent liabilities on the Company’s consolidated balance sheets, depending on the time period covered by the warranty. The Company also offers an extended warranty for purchase that represents a future performance obligation for the Company. The extended warranty is included in deferred revenues (both current and noncurrent) on the consolidated balance sheets and recognized on a straight-line basis over the term of the extended warranty. The warranty costs are reflected in the Company’s consolidated statements of operations within cost of revenues. Legal proceedings Third parties may from time to time assert legal claims against the Company. The Company records accruals for loss contingencies to the extent that it concludes it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. The Company evaluates, on a regular basis, developments in legal proceedings and other matters that could cause a change in amounts recorded. Due to the inherent uncertainty involving legal matters, the ultimate resolution could differ from amounts recorded. There is no pending or threatened legal proceedings to which the Company is a party to, and in the Company’s opinion, is likely to have a material adverse effect on its financial condition or results of operations. |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from contracts with customers | Note 14. Revenue from contracts with customers Disaggregation of revenues Revenues by product category were as follows (in thousands, except percentages): Year Ended December 31, 2020 2021 2022 Point-to-Multi-Point $ 172,601 62 % $ 204,756 61 % $ 114,941 39 % Point-to-Point 60,435 22 % 60,761 18 % 67,083 22 % Enterprise 39,990 14 % 66,933 20 % 109,844 37 % Other 5,433 2 % 3,404 1 % 5,031 2 % Total Revenues $ 278,459 100 % $ 335,854 100 % $ 296,899 100 % The Company’s products are predominately distributed through a third-party logistics provider in the United States, Netherlands and China. The Company has determined the geographical distribution of product revenues based upon the ship-to destinations. Revenue by geography were as follows (in thousands, except percentages): Year Ended December 31, 2020 2021 2022 North America $ 147,328 53 % $ 173,491 52 % $ 133,897 45 % Europe, Middle East and Africa 80,927 29 % 93,082 28 % 90,883 31 % Caribbean and Latin America 29,418 11 % 40,974 12 % 31,223 10 % Asia Pacific 20,786 7 % 28,307 8 % 40,896 14 % Total Revenues $ 278,459 100 % $ 335,854 100 % $ 296,899 100 % The following countries had revenues greater than 10% of total revenues: • United States - $ 140.7 million for 2020, $ 165.3 million for 2021 and $ 132.9 million for 2022 • Italy - $ 31.6 million for 2020 Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: Percentage of Revenues Percentage of Accounts Receivable Years Ended December 31, As of December 31, 2020 2021 2022 2021 2022 Customer A 19 % 20 % 15 % 25 % 29 % Customer B 14 % 15 % * * * * denotes percentage is less than 10% Contract Balances The following table summarizes contract balances as of December 31, 2021 and December 31, 2022: December 31, December 31, Trade accounts receivable, net of allowance for credit losses $ 68,788 $ 89,181 Deferred revenue - current 6,880 8,913 Deferred revenue - noncurrent 5,363 8,617 Refund liability $ 2,516 $ 3,186 Trade accounts receivable include amounts currently due from customers. Amounts are in accordance with contractual terms and are recorded at face amount less an allowance for credit losses. Deferred revenue consists of amounts due or received from customers in advance of the Company satisfying performance obligations under contractual arrangements. Deferred revenue is classified as current or noncurrent based on the timing of when revenue will be recognized. The changes in deferred revenue were due to normal timing differences between the Company’s performance and the customers’ payment. The refund liability is the estimated amount expected to be refunded to customers in relation to product exchanges made as part of the Company’s stock rotation program and returns that have been authorized, but not yet received by the Company. It is included within other current liabilities in the consolidated balance sheets. Remaining performance obligations Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations included in a contract that are unsatisfied, or partially satisfied, as of the end of a period. As of December 31, 2021 and 2022, deferred revenue (both current and noncurrent) of $ 12.2 million and $ 17.5 million, respectively, represents the Company’s remaining performance obligations, of which $ 6.9 million and $ 8.9 million, respectively, is expected to be recognized within one year , with the remainder to be recognized thereafter. Revenue recognized during the year ended December 31, 2022 which was previously included in deferred revenues as of December 31, 2021 was $ 6.8 million. Revenue recognized during the year ended December 31, 2021 which was previously included in deferred revenues as of December 31, 2020 was $ 6.3 million. Revenue recognized during the year ended December 31, 2020 which was previously included in deferred revenues as of December 31, 2019 was $ 7.3 million. Cost to obtain a contract Sales commissions are incremental costs of obtaining a contract. The Company has elected to recognize these expenses as incurred due to the amortization period of these costs being one year or less. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 15. Leases The Company has operating leases for offices, vehicles, and office equipment. Leases with a term of 12 months or less are not recorded on the consolidated balance sheets, and are expensed on a straight-line basis over the lease term. Right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s lease payments are typically fixed or contain fixed escalators. The Company’s leases typically include certain lock-in periods and renewal options to extend the lease, but does not consider options to extend the lease it is not reasonably certain to exercise. The Company elected the practical expedient to not separate the lease and non-lease components of its leases and currently has no leases with options to purchase the leased property. The components of lease expense were as follows (in thousands): Years Ended December 31, 2020 2021 2022 Operating lease cost $ 2,586 $ 2,592 $ 2,361 Short-term lease cost 341 283 471 Variable lease costs 375 500 611 Total lease expense $ 3,302 $ 3,375 $ 3,443 Supplemental balance sheet information related to leases were as follows (in thousands, except lease term and discount rate): Balance Sheet Caption December 31, 2021 December 31, 2022 Operating leases: Operating lease assets Operating lease assets $ 5,899 $ 4,011 Current lease liabilities Other current liabilities $ 2,116 $ 1,930 Noncurrent lease liabilities Noncurrent operating lease liabilities $ 4,112 $ 2,170 Weighted average remaining lease term (years): Operating leases 3.35 2.67 Weighted average discount rate: Operating leases 6.15 % 6.11 % Supplemental cash flow information related to leases were as follows (in thousands): Years Ended December 31, 2020 2021 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 2,701 $ 2,674 $ 2,403 The Company’s current lease terms range from one to four years and may include options to extend the lease by one to four years . Remaining maturities on lease liabilities at December 31, 2022 is as follows (in thousands): Operating leases 2023 2,122 2024 1,116 2025 806 2026 384 2027 — Thereafter — Total lease payments 4,428 Less: interest 328 Present value of lease liabilities $ 4,100 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 16. Related party transactions The Company follows ASC 850, Related Party Disclosures , for the identification of related parties and disclosure of related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal. For the years ended December 31, 2020, 2021 and 2022, Vector Capital Management, LP charged $ 0.0 million, $ 0.0 million and $ 0.1 million for management advisory fees. Amounts due to Vector Capital Management, LP at December 31, 2021 and 2022 were $ 0.0 million and $ 0.1 million, respectively, and were included in Accounts Payable in the Company's consolidated balance sheets. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Cambium Networks Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. In 2022, management determined that certain costs previously included as general and administrative expenses related to other functions of the business. Prior period results have been revised to reflect the allocation of these costs to their respective functions. These costs primarily include facility costs such as leased space and shared IT costs. Revisions were made to increase research and development expense by $ 3.4 million and selling and marketing expense by $ 1.0 million and decrease general and administrative expense by $ 4.4 million for the year ended December 31, 2021 and to increase research and development expense by $ 3.2 million and selling and administrative expense by $ 1.0 million and decrease general and administrative expense by $ 4.2 million for the year ended December 31, 2020. These revisions were concluded to be immaterial and had no impact on operating income. |
Use of Accounting Estimates | Use of Accounting Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates these estimates, including those related to the provision for excess and obsolete inventory, the carrying amount of estimated inventory returns, the estimated amount expected to be refunded to customers in respect of inventory returns, fair value of equity awards granted to employees and the associated forfeiture rates, fair value of assets acquired, liabilities assumed, goodwill and identifiable intangible assets in business combinations, leases, provision for income taxes, recoverability of deferred tax assets. The Company bases estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. |
Segments | Segments Management has determined that it operates as one operating segment and one reporting unit as it only reports financial information on an aggregate and consolidated basis to its Chief Executive Officer, who is the Company’s chief operating decision maker ("CODM"). Decisions about resource allocation or operating performance assessments are not made below a total company level. Consequently, impairment testing of goodwill is performed at the consolidated level as one reporting unit. |
Recognition of revenues | Recognition of revenues Revenues consist primarily of revenues from the sale of hardware products. Revenues also include amounts for software products, extended warranty on hardware products and software subscription services. Substantially all products are sold through distributors and other channel partners, such as resellers and systems integrators. The Company recognizes revenue to reflect the transfer of control of promised products or services to a customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for products or services. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company identifies its distinct performance obligations under each contract. A performance obligation is a promise in a contract to transfer a distinct product or service to the customer. Hardware products with essential embedded software, software products, extended warranty on hardware products and software subscriptions have been identified as separate performance obligations. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring products or services to a customer. Exchanges made as part of the Company’s stock rotation program meet the definition of a right of return. An adjustment to revenue is made to adjust the transaction price to exclude the consideration related to products expected to be returned. The Company records an asset at the carrying amount of the estimated stock returns and a liability for the estimated amount expected to be refunded to the customer. The transaction price also excludes other forms of consideration provided to the customer, such as volume-based rebates and cooperative marketing allowances. The Company recognizes revenue when, or as, it satisfies a performance obligation by transferring control of a promised product or service to a customer. Revenue from hardware products with embedded software is recognized when control is transferred to the customer, which is typically at the time of shipment. Software revenue is from perpetual license software and is recognized at the point in time the customer is able to use or benefit from the software. Extended warranty is available for purchase on hardware products and is a performance obligation that is satisfied over time, beginning on the effective date of the warranty term and ending on the expiration of the warranty term. The Company recognizes revenue on extended warranties on a straight-line basis over the warranty period. Revenue from subscription services is recognized ratably over the term in which the services are provided and our performance obligation is satisfied. Multiple performance obligations The Company enters into revenue arrangements that may consist of multiple performance obligations, such as hardware and extended warranty. The Company allocates the transaction price to each performance obligation on a relative standalone selling price basis for each distinct product or service in the contract. The best evidence of standalone selling price is the observable price of a product or service when the Company sells that product or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the transaction price allocated to each performance obligation using the expected costs plus a margin approach. |
Receivables and concentration of credit risk | Receivables and concentration of credit risk Trade accounts receivable are recorded at invoiced amounts, net of the allowance for credit losses. The Company considers the credit risk of all customers and regularly monitors credit risk exposure in its trade receivables. The Company’s standard credit terms with their customers are generally net 30 to 60 days . The Company had one customer representing more than 10 % of trade receivables at December 31, 2021 and 2022. The Company had two customers representing more than 10 % of revenues for the years ended December 31, 2020 and 2021 and one customer representing more than 10 % of revenues for the year ended December 31, 2022. The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based on historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables, and credit and liquidity indicators for individual customers. |
Inventory | Inventory The Company’s inventories are primarily finished goods for resale and, to a lesser extent, raw materials, which have been either consigned to the Company’s third-party manufacturers or are held by the Company. Inventories are stated at the lower of cost or net realizable value. In determining the cost of raw materials, consumables and goods purchased for resale, the weighted average purchase price is used. For finished goods, cost is computed as production cost including capitalized inbound freight costs. The valuation of inventory also requires the Company to estimate excess or obsolete inventory. The determination of excess or obsolete inventory is based on the cost of inventory on hand versus the Company's forecast of demand, and in consideration of historical usage and management's judgment. Any adjustments to the valuation of inventory are included in cost of revenues. |
Property and equipment | Property and equipment Per ASC 360, Property, Plant, and Equipment , property and equipment is stated at cost. The Company calculates depreciation expense using the straight-line method over the estimated useful lives of each asset based on its asset class. Leasehold improvements are amortized over the shorter of their useful lives or the lease term. See Note 3 – Property and equipment for the useful lives for each asset class. Upon retirement or disposition, the asset cost and related accumulated depreciation are removed with any gain or loss recognized in operating expense in the Consolidated Statements of Operations. For the years ended 2020, 2021 and 2022, the loss recognized was immaterial. |
Software | Software Software may be purchased or developed internally for internal use. Costs related to internal use software are accounted for in accordance with ASC 350-40, Internal Use Software. Costs are expensed as incurred during the preliminary project stage of an internal use software project. Costs are capitalized once the project has been approved by management and is in the application development stage. Post implementation/operation costs, such as maintenance and training costs, are expensed as incurred. Any costs incurred to provide upgrades or enhancements are capitalized only if they provide additional functionality that did not previously exist. Amortization of internal use software begins when the software is ready for internal use and is amortized over its estimated useful life. The amortization expense for internal use software is computed using the straight-line method over three to seven years . Costs related to certain software, which is available for sale, are capitalized in accordance with ASC 985-20, Costs of Software to be Sold, Leased, or Marketed , when the resulting product reaches technological feasibility. The Company generally determines technological feasibility when it has a detailed program design that takes product function, feature and technical requirements to their most detailed, logical form and the product is ready for coding. The Company does not typically capitalize costs related to the development of first-generation product offerings as technological feasibility generally coincides with general availability of the software. Amortization of software costs to be sold or marketed externally begins when the product is available for sale to customers and is amortized using the straight-line method over its estimated useful life of three years . |
Business Combinations | Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in the accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, it records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Consolidated Statements of Operations. Critical accounting estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships, as well as assumptions about customer attrition rate. Other estimates associated with the accounting for acquisitions may change as additional info rmation becomes available regarding the assets acquired and liabilities assumed. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired in a business combination. Goodwill is measured at cost and is not amortized. Intangible assets acquired, either individually or with a group of assets, are initially recognized and measured at fair value. The Company uses third-party specialists to assist management to determine fair values and estimated useful lives for intangible assets acquired in business combinations. Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives of between 3 and 18 years . The Company has no intangible assets with indefinite lives. In accordance with ASC 350, Goodwill and Other , the Company assesses goodwill for impairment at least annually and whenever events or circumstances that would more likely than not, reduce the fair value below its carrying value. The Company tested goodwill for impairment at December 31. The Company did no t recognize an impairment loss of goodwill for the years ended December 31, 2020, 2021 and 2022. Annual impairment testing is completed at the reporting unit level. Management has concluded the Company operates as one reporting unit and one operating segment for annual impairment testing. In completing its impairment evaluations, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. In performing this qualitative assessment, the Company assesses relevant events and changes in circumstances, including industry and market conditions, operating results, business plans, and entity-specific events that would affect the fair value or the carrying amount of a reporting unit. If it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company determines the fair value of the reporting unit and compares the fair value to its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and no further steps are required. |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates its long-lived assets, including property and equipment, software, right of use assets, and definite-lived intangible assets for impairment by completing a quarterly qualitative assessment and whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. An impairment loss is recognized when the net book value of such assets exceeds the estimated future undiscounted cash flows attributable to the assets or asset group. If impairment is indicated, the asset is written down to its estimated fair value. The Company did no t recognize any material impairment losses of long-lived assets for the years ended December 31, 2020, 2021 and 2022. |
Leases | Leases The Company has both cancelable and noncancelable operating leases for office space, vehicles, and office equipment. The Company records leases in accordance with ASC 842, Leases , (“ASC 842”). The Company records a right-of-use asset and lease liability on its consolidated balance sheet for all leases that qualify. The operating lease liability represents the present value of the future minimum lease payments over the lease term using the Company’s incremental borrowing rate at the lease commencement date. The right-of-use asset reflects adjustments for the derecognition of deferred rent and prepaid rent. Leases with an initial term of 12 months or less are not recorded on the Company’s consolidated balance sheet, and are expensed on a straight-line basis over the lease term. The Company does not include any renewal periods in the lease term for its leases as sufficient economic factors do not exist that would compel it to continue to use the underlying asset beyond the initial non-cancelable term. The Company has elected to combine the lease and non-lease components into a single lease component for all of its leases. See Note 15 – Leases for further details. |
Product warranties | Product warranties The Company provides a standard warranty on its products, with the term depending on the product, and records a liability for the estimated future costs associated with potential warranty claims. Provisions for warranty claims are recorded at the time products are sold based on historical experience factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. These provisions are reviewed and adjusted by management periodically to reflect actual and anticipated experience. The warranty costs are reflected in the Company’s consolidated statements of operations within cost of revenues. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment. |
Income taxes | Income taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in its financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement carrying amount and the tax basis of assets and liabilities using enacted income tax rates in effect for the year in which the differences are expected to be recovered or settled. The effect of a change in income tax rates on deferred tax assets and liabilities is recognized in the income tax provision in the period that includes the enactment date. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and adjusts the valuation allowances accordingly. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In general, it is the practice and intention of the Company to reinvest the earnings of its subsidiaries in those operations. As of December 31, 2020, 2021 and 2022, the Company had not made a provision for withholding taxes on approximately $ 13.8 million, $ 27.2 million and $ 41.7 million, respectively, of undistributed earnings at each period-end that are indefinitely reinvested. Generally, such amounts become subject to taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability to the undistributed earnings in these subsidiaries. The Company may be subject to income tax audits in all of the jurisdictions in which it operates and, as a result, must also assess exposures to any potential issues arising from current or future audits of current and prior years’ tax returns. Accordingly, the Company must assess such potential exposures and, where necessary, provide for any expected loss. The Company would recognize the benefit of a tax position if it is more likely than not to be sustained. Recognized tax positions are measured at the largest amount more likely than not to be realized upon settlement. To the extent that the Company establishes a liability, its income tax expense would be increased. If the Company ultimately determines that payment of these amounts is unnecessary, it would reverse the liability and recognize an income tax benefit during the period in which new information becomes available indicating that the liability is no longer necessary. The Company would record an additional income tax expense in the period in which new information becomes available indicating that the income tax liability is greater than its original estimate. The Company did not record such an adjustment for the years ended December 31, 2020, 2021 or 2022. |
Share-based compensation | Share-based compensation The Company accounts for share-based compensation in accordance with the guidance in ASC 718, Share-based Payments , by measuring and recognizing compensation expense for all share-based payments based on estimated grant date fair values for equity settled awards. Awards are granted under the 2019 Share Incentive Plan. The 2019 Share Incentive Plan provides for the grant of incentive share options, nonqualified share options, share appreciation rights, restricted share awards, restricted share units, or other share-based awards and performance awards. |
Contingencies | Contingencies In accordance with ASC 450, Contingencies , the Company periodically evaluates all pending or threatened contingencies and any commitments, if any, that are reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Foreign currency translation | Foreign currency translation The Company records any gain and loss associated with foreign currencies in accordance with ASC 830, Foreign Currency Matters . The reporting currency of the Company is the U.S. dollar and the functional currency for each operating subsidiary is the local currency of the operating subsidiary other than for Cambium Networks, Ltd. (UK) for which the functional currency is the U.S. dollar. Local currency denominated monetary assets and liabilities are translated at exchange rates in effect at the balance sheet date, and revenues, cost of revenues and expenses are translated at the average exchange rate in effect during the applicable period. The Company recognizes foreign exchange gains and losses in other expense on its consolidated statements of operations and accumulated other comprehensive income (loss) on its consolidated balance sheets. |
Research and development costs | Research and development costs Research and development expenses consists primarily of salary and benefit expenses for employees and contractors engaged in research, design and development activities, and costs for prototypes, travel costs and shared facility and IT costs. The Company also incurs research and development costs associated with the development of software for both internal use and to be marketed externally. Research and development costs, other than those associated with the development of software that meet the criteria for capitalization, are expensed as incurred. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Receivable, Net | The components of receivable, net are as follows (in thousands): December 31, December 31, 2021 2022 Trade accounts receivable $ 69,471 $ 89,758 Other receivables 985 140 Total receivables 70,456 89,898 Less: Allowance for credit losses ( 683 ) ( 577 ) Receivables, net $ 69,773 $ 89,321 |
Schedule of Estimate for Credit Losses Activity | The estimate for credit losses activity was as follows (in thousands): Year ended Year ended December 31, 2021 2022 Beginning balance $ 919 $ 683 Increase, charged to expense 172 93 Recoveries ( 163 ) ( 199 ) Amounts written-off ( 245 ) — Ending balance $ 683 $ 577 |
Schedule of Inventories, Net | Inventories, net consisted of the following (in thousands): December 31, December 31, 2021 2022 Finished goods $ 31,991 $ 50,052 Raw materials 7,353 15,010 Gross inventory 39,344 65,062 Less: Excess and obsolete provision ( 5,567 ) ( 7,994 ) Inventories, net $ 33,777 $ 57,068 |
Schedule of Inventory Excess and Obsolete Provision | The following table reflects the activity in the Company’s inventory excess and obsolete provision (in thousands): Year ended Year ended 2021 2022 Beginning balance $ 5,855 $ 5,567 Inventory written off ( 468 ) ( 1,316 ) Increase in excess and obsolete provision 180 3,743 Ending balance $ 5,567 $ 7,994 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, December 31, 2021 2022 Accrued goods and services $ 12,278 $ 10,633 Accrued inventory purchases 2,218 3,189 Accrued customer rebates 7,355 13,797 Other 97 423 Accrued liabilities $ 21,948 $ 28,042 |
Schedule of Change to Accrued Warranty | Provision for warranty claims is primarily related to our hardware products and recorded at the time products are sold. The change to accrued warranty was as follows (in thousands): Year ended Year ended 2021 2022 Beginning balance $ 1,714 $ 1,731 Fulfillment of assumed acquisition warranty ( 216 ) ( 142 ) Provision increase, net 233 62 Ending balance $ 1,731 $ 1,651 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, December 31, Useful Life 2021 2022 Equipment and tooling 3 to 5 years $ 29,621 $ 33,026 Computer equipment 3 to 5 years 3,835 4,572 Furniture and fixtures 10 years 844 809 Leasehold improvements 2 to 3 years 457 472 Total cost 34,757 38,879 Less: Accumulated depreciation ( 24,267 ) ( 27,608 ) Property and equipment, net $ 10,490 $ 11,271 Total depreciation expense was $ 3.7 million, $ 3.4 million and $ 3.9 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Software (Tables)
Software (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Carrying Amount and Amortization of Software and Intangible Assets | The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands): December 31, 2021 December 31, 2022 Useful Life Gross Accumulated Net balance Gross Accumulated Net balance Unpatented 3 - 7 years $ 14,660 $ ( 14,555 ) $ 105 $ 14,660 $ ( 14,660 ) $ — Customer 5 - 18 years 19,300 ( 8,628 ) 10,672 19,300 ( 10,127 ) 9,173 Patents 7 years 11,300 ( 11,300 ) — 11,300 ( 11,300 ) — Trademarks 10 years 5,270 ( 5,270 ) — 5,270 ( 5,270 ) — Total $ 50,530 $ ( 39,753 ) $ 10,777 $ 50,530 $ ( 41,357 ) $ 9,173 |
Schedule of Estimated Amortization Expense of Capitalized Software and Intangible Assets | Based on capitalized intangible assets as of December 31, 2022, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Year ending December 31, Amortization 2023 1,498 2024 1,498 2025 1,498 2026 1,498 2027 1,498 Thereafter 1,683 Total amortization $ 9,173 |
Capitalized Software Assets | |
Schedule of Carrying Amount and Amortization of Software and Intangible Assets | Software consisted of the following (in thousands): December 31, 2021 December 31, 2022 Useful Life Gross carrying amount Accumulated amortization Net balance Gross carrying amount Accumulated amortization Net balance Acquired and Software for internal use 3 to 7 years $ 15,855 $ ( 14,907 ) $ 948 $ 15,995 $ ( 15,326 ) $ 669 Software marketed for external sale 3 years 7,164 ( 2,245 ) 4,919 11,650 ( 3,880 ) 7,770 Total $ 23,019 $ ( 17,152 ) $ 5,867 $ 27,645 $ ( 19,206 ) $ 8,439 |
Schedule of Estimated Amortization Expense of Capitalized Software and Intangible Assets | Based on capitalized software assets at December 31, 2022, estimated amortization expense in future fiscal years is as follows (in thousands): Year ending December 31, Acquired and internal use software Software Total 2023 286 2,934 3,220 2024 170 2,769 2,939 2025 120 1,750 1,870 2026 87 317 404 2027 6 — 6 Thereafter — — — Total amortization $ 669 $ 7,770 $ 8,439 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Amount and Amortization of Software and Intangible Assets | The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands): December 31, 2021 December 31, 2022 Useful Life Gross Accumulated Net balance Gross Accumulated Net balance Unpatented 3 - 7 years $ 14,660 $ ( 14,555 ) $ 105 $ 14,660 $ ( 14,660 ) $ — Customer 5 - 18 years 19,300 ( 8,628 ) 10,672 19,300 ( 10,127 ) 9,173 Patents 7 years 11,300 ( 11,300 ) — 11,300 ( 11,300 ) — Trademarks 10 years 5,270 ( 5,270 ) — 5,270 ( 5,270 ) — Total $ 50,530 $ ( 39,753 ) $ 10,777 $ 50,530 $ ( 41,357 ) $ 9,173 |
Schedule of Estimated Amortization Expense of Capitalized Software and Intangible Assets | Based on capitalized intangible assets as of December 31, 2022, estimated amortization expense amounts in future fiscal years are as follows (in thousands): Year ending December 31, Amortization 2023 1,498 2024 1,498 2025 1,498 2026 1,498 2027 1,498 Thereafter 1,683 Total amortization $ 9,173 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Current and Noncurrent Portions of External Debt Facilities | The following table reflects the current and noncurrent portions of the external debt facilities at December 31, 2021 and December 31, 2022 (in thousands): December 31, December 31, 2021 2022 Term loan facility $ 30,000 $ 28,031 Less debt issuance costs ( 546 ) ( 410 ) Total debt 29,454 27,621 Less current portion of term facility ( 2,625 ) ( 3,281 ) Current portion of debt issuance costs 136 123 Total long-term external debt, net $ 26,965 $ 24,463 |
Schedule of Maturities on External Debt Outstanding | Maturities on the external debt outstanding at December 31, 2022 under the BofA Agreement are as follows (in thousands): Year ending December 31, 2023 2,625 2024 2,625 2025 2,625 2026 19,500 Total $ 27,375 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Changes in Number of Shares Available for Grant | The following table summarizes changes in the number of shares available for grant under the Company’s equity incentive plans during the year ended December 31, 2022: Number of shares Available for grant at December 31, 2021 1,853,240 Added to 2019 Share Incentive Plan 1,320,000 RSUs granted ( 418,896 ) Options granted ( 963,000 ) Shares withheld in settlement of taxes and/or exercise price 52,554 Expirations 8,799 Forfeitures 147,667 Available for grant at December 31, 2022 2,000,364 |
Summary of Stock Option Activity | The following is a summary of option activity for the Company’s share incentive plans for year ended December 31, 2022: Options Weighted Weighted Aggregate Outstanding at December 31, 2021 2,797,992 $ 12.64 7.9 $ 38,295,799 Options granted 963,000 $ 15.61 — $ — Options exercised ( 242,423 ) $ 9.21 — $ — Options expired ( 8,799 ) $ 14.77 — $ — Options forfeited ( 114,551 ) $ 9.64 — $ — Outstanding at December 31, 2022 3,395,219 $ 13.83 7.6 $ 28,985,969 Options exercisable at December 31, 2022 1,807,566 $ 12.45 6.8 $ 17,697,417 Options vested and expected to vest at December 31, 2022 3,337,698 $ 13.81 7.6 $ 28,535,242 |
Schedule of Estimated Fair Value of Weighted Average Assumptions | The Company estimates the fair value of share options using the Black-Scholes option pricing model. The fair value of share options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of share options is estimated using the following weighted-average assumptions: Year Ended December 31, 2020 2021 2022 Expected dividend yield — — — Risk-free interest rate 0.39 % 1.14 % 2.96 % Weighted-average expected volatility 50.0 % 50.9 % 72.9 % Expected term (in years) 6.5 6.5 5.5 Weighted average grant-date fair value per share of options granted $ 7.56 $ 21.36 $ 9.94 |
Summary of Restricted Shares Activity | The following is a summary of restricted shares activity for the Company’s share incentive plans for the year ended December 31, 2022: Units Weighted RSU balance at December 31, 2021 547,343 $ 22.47 RSUs granted 418,896 $ 15.31 RSUs vested ( 236,133 ) $ 22.05 RSUs forfeited ( 33,116 ) $ 24.47 RSU balance at December 31, 2022 696,990 $ 18.22 |
Share Capital - Shares (Tables)
Share Capital - Shares (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shares (Share Capital Activity) | The following table reflects the share capital activity: Number of Par value Balance at December 31, 2021 26,735,175 $ 3 Issuance of ordinary shares under employee share purchase plan 152,096 — Issuance of vested shares 236,133 — Share options exercised 242,423 — Shares withheld for net settlement of shares issued ( 52,554 ) — Balance at December 31, 2022 27,313,273 $ 3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Earnings Per Share | The following table sets forth the computation of basic and diluted net earnings per share (in thousands, except for share and per share data): Year Ended December 31, 2020 2021 2022 Numerator: Net income $ 18,575 $ 37,421 $ 20,200 Denominator: Basic weighted average shares outstanding 25,707,092 26,421,087 26,919,550 Dilutive effect of share option awards 228,388 1,846,998 851,011 Dilutive effect of restricted share units and restricted share awards 467,632 348,934 242,528 Dilutive effect of employee share purchase plan — 11,117 12,189 Diluted weighted average shares outstanding 26,403,112 28,628,136 28,025,278 Net earnings per share, basic $ 0.72 $ 1.42 $ 0.75 Net earnings per share, diluted $ 0.70 $ 1.31 $ 0.72 In the computation of diluted earnings per share for the year ended December 31, 2020, |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of (Loss) Income Before Income Taxes | For the years ended December 31, 2020, 2021 and 2022, income before income taxes includes the following components (in thousands): Years ended December 31, 2020 2021 2022 United States $ 2,648 $ 10,943 $ 10,269 Foreign 15,483 20,963 7,748 Total $ 18,131 $ 31,906 $ 18,017 |
Schedule of Benefit of Income Taxes | For the years ended December 31, 2020, 2021 and 2022, the benefit for income taxes consists of the following (in thousands): Years ended December 31, 2020 2021 2022 Current: U.S. federal $ ( 198 ) $ 268 $ 1,174 State ( 181 ) ( 94 ) 847 Foreign 1,007 376 985 Current tax provision 628 550 3,006 Deferred: U.S. federal $ ( 664 ) $ ( 1,662 ) $ ( 3,814 ) State ( 144 ) ( 147 ) ( 610 ) Foreign ( 264 ) ( 4,256 ) ( 765 ) Deferred tax benefit ( 1,072 ) ( 6,065 ) ( 5,189 ) Benefit for income taxes $ ( 444 ) $ ( 5,515 ) $ ( 2,183 ) |
Computation of Provision (Benefit) of Income Taxes Reconciliation | Years ended December 31, 2020 2021 2022 Income tax expense at federal statutory rate $ 3,808 $ 6,700 $ 3,784 State and local income taxes net of federal benefit ( 295 ) 10 27 Tax rate changes ( 925 ) 21 ( 873 ) Valuation allowance changes ( 1,226 ) ( 7,902 ) 857 Foreign rate differential ( 181 ) ( 164 ) 138 Research and development ( 1,455 ) ( 811 ) ( 2,840 ) Share-based compensation - excess tax benefit ( 171 ) ( 3,444 ) ( 778 ) Foreign derived intangible income ( 349 ) — ( 2,258 ) Other 350 75 ( 240 ) Benefit for income taxes $ ( 444 ) $ ( 5,515 ) $ ( 2,183 ) |
Schedule of Deferred Tax Assets and Liabilities | The sources of these differences for the years ended December 31, 2021 and 2022 are as follows (in thousands): Years ended December 31, 2021 2022 NOL and tax credit carryforwards $ 6,886 $ 5,883 Capitalized research costs — 6,017 Disallowed interest carryforwards 909 906 Lease liability 584 289 Property and equipment 27 — Share-based compensation 1,130 2,665 Intangible assets 221 260 Other 353 320 Subtotal 10,110 16,340 Less: Valuation allowance ( 471 ) ( 1,328 ) Net deferred tax assets 9,639 15,012 Property and equipment — ( 775 ) Operating lease assets ( 505 ) ( 242 ) Prepaid expenses and other assets ( 400 ) ( 425 ) Capitalized software development costs ( 1,141 ) ( 788 ) Net deferred tax liabilities ( 2,046 ) ( 2,230 ) Total deferred tax assets, net $ 7,593 $ 12,782 Deferred tax assets/liabilities included in the balance sheet are: Years ended December 31, 2021 2022 Deferred tax assets - non-current $ 7,604 $ 12,782 Deferred tax liabilities - non-current 11 — Total deferred tax assets, net $ 7,593 $ 12,782 |
Summary of Valuation Allowance on Deferred Tax Assets | For the years ended December 31, 2021 and 2022, the following table reflects the activity in the Company’s valuation allowance on deferred tax assets (in thousands): Years ended December 31, 2021 2022 Beginning balance $ 8,373 $ 471 (Release) increase of valuation allowance ( 7,902 ) 857 Ending balance $ 471 $ 1,328 |
Summary of Gross NOL Carryforwards Expire | The Company’s gross NOL carryforwards expire as follows: Years ended December 31, 2021 2022 Unlimited carryforward $ 25.6 million $ 15.3 million 10+ year carryforward $ 3.1 million $ 1.7 million |
Summary of Tax Credit Carryforwards and Expiration | The Company’s research and development tax credit carryforwards and their expiration are as follows: Years ended December 31, 2021 2022 Unlimited carryforward $ 0.7 million $ 2.0 million 10+ year carryforward $ 0.8 million — |
Summary of Gross CIR Carryforwards Expire | The Company’s gross carryforwards expire as follows: Years ended December 31, 2021 2022 Unlimited carryforward $ 4.8 million $ 3.9 million |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues by Product Category | Revenues by product category were as follows (in thousands, except percentages): Year Ended December 31, 2020 2021 2022 Point-to-Multi-Point $ 172,601 62 % $ 204,756 61 % $ 114,941 39 % Point-to-Point 60,435 22 % 60,761 18 % 67,083 22 % Enterprise 39,990 14 % 66,933 20 % 109,844 37 % Other 5,433 2 % 3,404 1 % 5,031 2 % Total Revenues $ 278,459 100 % $ 335,854 100 % $ 296,899 100 % |
Schedule of Revenue by Geography | Revenue by geography were as follows (in thousands, except percentages): Year Ended December 31, 2020 2021 2022 North America $ 147,328 53 % $ 173,491 52 % $ 133,897 45 % Europe, Middle East and Africa 80,927 29 % 93,082 28 % 90,883 31 % Caribbean and Latin America 29,418 11 % 40,974 12 % 31,223 10 % Asia Pacific 20,786 7 % 28,307 8 % 40,896 14 % Total Revenues $ 278,459 100 % $ 335,854 100 % $ 296,899 100 % |
Summary of Customers with Accounts Receivables and Customer with Net Revenues of 10% or Greater | Customers with an accounts receivable balance of 10% or greater of total accounts receivable and customers with net revenues of 10% or greater of total revenues are presented below for the periods indicated: Percentage of Revenues Percentage of Accounts Receivable Years Ended December 31, As of December 31, 2020 2021 2022 2021 2022 Customer A 19 % 20 % 15 % 25 % 29 % Customer B 14 % 15 % * * * * denotes percentage is less than 10% |
Summary of Contract Balances | The following table summarizes contract balances as of December 31, 2021 and December 31, 2022: December 31, December 31, Trade accounts receivable, net of allowance for credit losses $ 68,788 $ 89,181 Deferred revenue - current 6,880 8,913 Deferred revenue - noncurrent 5,363 8,617 Refund liability $ 2,516 $ 3,186 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows (in thousands): Years Ended December 31, 2020 2021 2022 Operating lease cost $ 2,586 $ 2,592 $ 2,361 Short-term lease cost 341 283 471 Variable lease costs 375 500 611 Total lease expense $ 3,302 $ 3,375 $ 3,443 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases were as follows (in thousands, except lease term and discount rate): Balance Sheet Caption December 31, 2021 December 31, 2022 Operating leases: Operating lease assets Operating lease assets $ 5,899 $ 4,011 Current lease liabilities Other current liabilities $ 2,116 $ 1,930 Noncurrent lease liabilities Noncurrent operating lease liabilities $ 4,112 $ 2,170 Weighted average remaining lease term (years): Operating leases 3.35 2.67 Weighted average discount rate: Operating leases 6.15 % 6.11 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases were as follows (in thousands): Years Ended December 31, 2020 2021 2022 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities $ 2,701 $ 2,674 $ 2,403 |
Remaining Maturities on Lease Liabilities | Remaining maturities on lease liabilities at December 31, 2022 is as follows (in thousands): Operating leases 2023 2,122 2024 1,116 2025 806 2026 384 2027 — Thereafter — Total lease payments 4,428 Less: interest 328 Present value of lease liabilities $ 4,100 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2022 USD ($) Unit Segment Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) Customer | |
Business And Significant Accounting Policies [Line Items] | ||||
Number of operating segment | Segment | 1 | |||
Number of reporting unit | Unit | 1 | |||
Impairment loss of goodwill | $ 0 | $ 0 | $ 0 | |
Impairment losses for long-lived assets | 0 | 0 | 0 | |
Undistributed earnings | $ 41,700,000 | $ 27,200,000 | $ 13,800,000 | |
Accounts Receivables | Customer Concentration Risk | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Number of customers | Customer | 1 | 1 | ||
Accounts Receivables | Customer Concentration Risk | Customer One | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | ||
Revenues | Customer Concentration Risk | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Number of customers | Customer | 1 | 2 | 2 | |
Revenues | Customer Concentration Risk | Customer One | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | 10% | |
Revenues | Customer Concentration Risk | Customer Two | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | ||
Minimum | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Collection period for trade accounts receivable | 30 days | |||
Intangible asset, estimated useful life | 3 years | |||
Minimum | Internal use Software | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Intangible asset, estimated useful life | 3 years | |||
Minimum | Available for Sale Software | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Intangible asset, estimated useful life | 3 years | |||
Maximum | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Collection period for trade accounts receivable | 60 days | |||
Intangible asset, estimated useful life | 18 years | |||
Maximum | Internal use Software | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Intangible asset, estimated useful life | 7 years | |||
Employee Share Purchase Plan | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Percentage of purchase price shares on first trading day of each offering period or on the purchase date | 85% | 85% | ||
Research and Development | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in operating expenses | $ 3,400,000 | $ 3,200,000 | ||
Selling and Marketing Expense | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in operating expenses | 1,000,000 | 1,000,000 | ||
General and Administrative Expense | ||||
Business And Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in operating expenses | $ (4,400,000) | $ (4,200,000) |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |
Cash paid upon closing of acquisition | $ 334 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Product Warranty Liability [Line Items] | |||
Accrued warranty | $ 1,651 | $ 1,731 | $ 1,714 |
Other Current Liabilities | |||
Product Warranty Liability [Line Items] | |||
Accrued warranty | 1,200 | 1,200 | |
Other Noncurrent Liabilities | |||
Product Warranty Liability [Line Items] | |||
Accrued warranty | $ 500 | $ 500 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total receivables | $ 89,898 | $ 70,456 | |
Less: Allowance for credit losses | (577) | (683) | $ (919) |
Receivables, net | 89,321 | 69,773 | |
Trade Accounts Receivable | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total receivables | 89,758 | 69,471 | |
Other Receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total receivables | $ 140 | $ 985 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Estimate for Credit Losses Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Beginning balance | $ 683 | $ 919 |
Increase, charged to expense | 93 | 172 |
Recoveries | (199) | (163) |
Amounts written-off | (245) | |
Ending balance | $ 577 | $ 683 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | |||
Finished goods | $ 50,052 | $ 31,991 | |
Raw materials | 15,010 | 7,353 | |
Gross inventory | 65,062 | 39,344 | |
Less: Excess and obsolete provision | (7,994) | (5,567) | $ (5,855) |
Inventories, net | $ 57,068 | $ 33,777 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Inventory Excess and Obsolete Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory, Net [Abstract] | ||
Beginning balance | $ 5,567 | $ 5,855 |
Inventory written off | (1,316) | (468) |
Increase in excess and obsolete provision | 3,743 | 180 |
Ending balance | $ 7,994 | $ 5,567 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Accrued goods and services | $ 10,633 | $ 12,278 |
Accrued inventory purchases | 3,189 | 2,218 |
Accrued customer rebates | 13,797 | 7,355 |
Other | 423 | 97 |
Accrued liabilities | $ 28,042 | $ 21,948 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Change to Accrued Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Standard Product Warranty Disclosure [Abstract] | ||
Beginning balance | $ 1,731 | $ 1,714 |
Fulfillment of assumed acquisition warranty | (142) | (216) |
Provision increase, net | 62 | 233 |
Ending balance | $ 1,651 | $ 1,731 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | ||
Total cost | $ 38,879 | $ 34,757 |
Less: Accumulated depreciation | (27,608) | (24,267) |
Property and equipment, net | 11,271 | 10,490 |
Equipment and Tooling | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 33,026 | $ 29,621 |
Equipment and Tooling | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 3 years | 3 years |
Equipment and Tooling | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 5 years | 5 years |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 4,572 | $ 3,835 |
Computer Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 3 years | 3 years |
Computer Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 5 years | 5 years |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 10 years | 10 years |
Total cost | $ 809 | $ 844 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 472 | $ 457 |
Leasehold Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 2 years | 2 years |
Leasehold Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful Life | 3 years | 3 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 3,913 | $ 3,356 | $ 3,685 |
Software - Schedule of Software
Software - Schedule of Software (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 27,645 | $ 23,019 |
Accumulated amortization | (19,206) | (17,152) |
Net balance | $ 8,439 | 5,867 |
Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 18 years | |
Acquired and Software for Internal Use | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 15,995 | 15,855 |
Accumulated amortization | (15,326) | (14,907) |
Net balance | $ 669 | 948 |
Acquired and Software for Internal Use | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Acquired and Software for Internal Use | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 7 years | |
Software Marketed for External Sale | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Gross carrying amount | $ 11,650 | 7,164 |
Accumulated amortization | (3,880) | (2,245) |
Net balance | $ 7,770 | $ 4,919 |
Software - Additional Informati
Software - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life | 18 years | ||
Acquired and Software for Internal Use | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 0.4 | $ 0.7 | $ 0.8 |
Acquired and Software for Internal Use | Minimum | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Acquired and Software for Internal Use | Maximum | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life | 7 years | ||
Software Marketed for External Sale | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Amortization expense | $ 1.6 | $ 0.8 | $ 0.6 |
Software - Schedule of Estimate
Software - Schedule of Estimated Amortization Expense of Capitalized Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
2023 | $ 3,220 | |
2024 | 2,939 | |
2025 | 1,870 | |
2026 | 404 | |
2027 | 6 | |
Net balance | 8,439 | $ 5,867 |
Acquired and Software for Internal Use | ||
Finite Lived Intangible Assets [Line Items] | ||
2023 | 286 | |
2024 | 170 | |
2025 | 120 | |
2026 | 87 | |
2027 | 6 | |
Net balance | 669 | |
Software Marketed for External Sale | ||
Finite Lived Intangible Assets [Line Items] | ||
2023 | 2,934 | |
2024 | 2,769 | |
2025 | 1,750 | |
2026 | 317 | |
Net balance | $ 7,770 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Unit Segment Subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of operating segment | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Number of operating subsidiaries | Subsidiary | 2 | ||
Number of reporting unit | Unit | 1 | ||
Carrying amount of goodwill | $ 9,842,000 | $ 9,842,000 | |
Adjustments to carrying value of goodwill | 0 | 0 | |
Impairment of goodwill | 0 | 0 | $ 0 |
Amortization expense | $ 1,600,000 | $ 2,100,000 | $ 2,200,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Carrying Amount and Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 50,530 | $ 50,530 |
Accumulated amortization | (41,357) | (39,753) |
Total amortization | $ 9,173 | 10,777 |
Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 18 years | |
Unpatented Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 14,660 | 14,660 |
Accumulated amortization | $ (14,660) | (14,555) |
Total amortization | 105 | |
Unpatented Technology | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Unpatented Technology | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 7 years | |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 19,300 | 19,300 |
Accumulated amortization | (10,127) | (8,628) |
Total amortization | $ 9,173 | 10,672 |
Customer Relationships | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | |
Customer Relationships | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 18 years | |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 7 years | |
Gross carrying amount | $ 11,300 | 11,300 |
Accumulated amortization | $ (11,300) | (11,300) |
Trademarks | ||
Finite Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Gross carrying amount | $ 5,270 | 5,270 |
Accumulated amortization | $ (5,270) | $ (5,270) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense of Capitalized Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
2023 | $ 1,498 | |
2024 | 1,498 | |
2025 | 1,498 | |
2026 | 1,498 | |
2027 | 1,498 | |
Thereafter | 1,683 | |
Total amortization | $ 9,173 | $ 10,777 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Nov. 17, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Net interest expense | $ 2,000,000 | $ 4,300,000 | $ 5,300,000 | |
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument consolidated fixed charge coverage ratio | 2.75% | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument consolidated fixed charge coverage ratio | 1.25% | |||
Silicon Valley Bank | ||||
Debt Instrument [Line Items] | ||||
Write-down of deferred issuance costs | 700,000 | |||
BofA Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 27,375,000 | |||
Line of credit facility, maximum borrowing capacity | $ 75,000,000 | |||
Debt instrument, terminate period | 5 years | |||
BofA Credit Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Undrawn commitment fee | 0.25% | |||
BofA Credit Agreement | Minimum | ||||
Debt Instrument [Line Items] | ||||
Undrawn commitment fee | 0.20% | |||
BofA Credit Agreement | Eurodollar Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate loan period | 1 month | |||
Debt instrument base rate | 1.75% | |||
BofA Credit Agreement | Applicable Margin Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0.25% | |||
BofA Credit Agreement | Applicable Margin Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0.50% | |||
BofA Credit Agreement | Applicable Margin Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0% | |||
BofA Credit Agreement | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0.50% | |||
Rate of Percentage 0.50% | Minimum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 2% | |||
Rate of Percentage 0.25% | Maximum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 2% | |||
Rate of Percentage 0.25% | Minimum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 1% | |||
Rate of Percentage 0.00% | Maximum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 1% | |||
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | 28,031,000 | 30,000,000 | ||
Term Loan Facility | Eurodollar Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate loan period | 6 months | |||
Term Loan Facility | Applicable Margin Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 2% | |||
Term Loan Facility | Applicable Margin Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 2.25% | |||
Term Loan Facility | Applicable Margin Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 1.75% | |||
Term Loan Facility | Bank of America | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 28,000,000 | 30,000,000 | ||
Term Loan Facility | BofA Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 30,000,000 | |||
Debt instrument term | 5 years | |||
Debt instrument, maturity date | Nov. 17, 2026 | |||
Debt instrument, effective interest rate | 6.86% | |||
Term Loan Facility | BofA Credit Agreement | LIBOR Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate terms | The 1-week and 2-month US Dollar LIBOR tenors ceased on December 31, 2021 and the remaining five US Dollar tenors (overnight, 1-month, 3-month, 6-month and 12-month) will cease on June 30, 2023. | |||
Term Loan Facility | Rate of Percentage 1.75% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 1.75% | 1.75% | ||
Term Loan Facility | Rate of Percentage 1.75% | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument consolidated leverage ratio first full fiscal quarter | 1% | |||
Term Loan Facility | Rate of Percentage 2.25% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 2.25% | |||
Term Loan Facility | Rate of Percentage 2.25% | Minimum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 2% | |||
Term Loan Facility | Rate of Percentage 2.00% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 2% | |||
Term Loan Facility | Rate of Percentage 2.00% | Maximum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 2% | |||
Term Loan Facility | Rate of Percentage 2.00% | Minimum | ||||
Debt Instrument [Line Items] | ||||
Consolidated leverage ratio | 1% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 0 | |||
Revolving Credit Facility | Bank of America | ||||
Debt Instrument [Line Items] | ||||
Debt outstanding | $ 0 | |||
Revolving Credit Facility | Silicon Valley Bank | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument amount available under credit facility | $ 45,000,000 | |||
Revolving Credit Facility | BofA Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 45,000,000 | |||
Debt instrument term | 5 years | |||
Revolving Credit Facility | Rate of Percentage 0.50% | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0.50% | |||
Revolving Credit Facility | Rate of Percentage 0.25% | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0.25% | |||
Revolving Credit Facility | Rate of Percentage 0.00% | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument base rate | 0% | |||
Sublimit for Issuance of Letters of Credit | BofA Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |||
Swingline Loans | BofA Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 |
Debt - Schedule of Current and
Debt - Schedule of Current and Noncurrent Portions of External Debt Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less debt issuance costs | $ (410) | $ (546) |
Total debt | 27,621 | 29,454 |
Less current portion of term facility | (3,281) | (2,625) |
Current portion of debt issuance costs | 123 | 136 |
Total long-term external debt, net | 24,463 | 26,965 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 28,031 | $ 30,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities on External Debt Outstanding (Details) - BofA Credit Agreement $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 2,625 |
2024 | 2,625 |
2025 | 2,625 |
2026 | 19,500 |
Total | $ 27,375 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Pan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employer contribution to employee contribution plan dollar for dollar match | 4% | ||
Defined contribution plan, employer discretionary contribution amount | $ 1.4 | $ 1.2 | $ 1 |
UK Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer discretionary contribution amount | $ 0.4 | $ 0.4 | $ 0.4 |
Defined contribution plan, employee matching contribution, percent of match | 3% | ||
Defined contribution plan, employer matching contribution, percent of match | 5% | ||
Defined contribution plan, employer matching contribution, percent of employees' gross pay | 1% | ||
Defined contribution plan, maximum annual contributions per employee, percent | 7% |
Other Expense (Income), Net - A
Other Expense (Income), Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Expense (Income), Net | |||
Other Non Operating Income and Expense [Line Items] | |||
Foreign exchange losses | $ (0.1) | $ 0.2 | $ 0.5 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Feb. 25, 2022 | Mar. 01, 2021 | Mar. 24, 2020 | Jun. 30, 2019 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Share-based compensation expense | $ 10,680,000 | $ 7,717,000 | $ 3,436,000 | ||||||||||
Shares granted | 418,896 | ||||||||||||
Pretax unrecognized compensation expense | $ 22,700,000 | ||||||||||||
Forfeiture rate utilized for estimating forfeitures of options and restricted share units granted | 8.20% | ||||||||||||
Share options contractual term | 10 years | ||||||||||||
Aggregate intrinsic value of options exercised | $ 17,697,417 | $ 18,500,000 | $ 17,697,417 | $ 18,500,000 | $ 12,700,000 | ||||||||
Share options exercised | 242,423 | 454,354 | 138,878 | 0 | 0 | ||||||||
Cash received from share options exercised | $ 2,234,000 | $ 4,807,000 | $ 1,628,000 | ||||||||||
Unrecognized pre-tax share based compensation expense related to unvested share option awards | 12,100,000 | $ 12,100,000 | |||||||||||
Unrecognized share-based compensation expense, weighted-average period of recognition | 2 years 9 months 18 days | ||||||||||||
Unrecognized pre-tax compensation expense related to unvested restricted share awards and restricted shares units | $ 10,600,000 | $ 10,600,000 | |||||||||||
Employee Share Purchase Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Share-based compensation expense | $ 900,000 | $ 700,000 | |||||||||||
Number of outstanding shares added annually | 275,000 | ||||||||||||
Percentage of outstanding shares | 1% | ||||||||||||
Total number of shares available under ESPP | 1,334,427 | ||||||||||||
Number of original shares available under ESPP | 550,000 | ||||||||||||
Number of additional shares available under ESPP | 267,352 | 260,345 | 256,730 | ||||||||||
Percentage of purchase price shares on first trading day of each offering period or on the purchase date | 85% | 85% | |||||||||||
Shares issued under the ESPP | 64,867 | 87,229 | 42,401 | 39,061 | |||||||||
RSAs and RSUs | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Unrecognized share-based compensation expense, weighted-average period of recognition | 2 years 8 months 12 days | ||||||||||||
Shares to pay employees' portion of minimum payroll withholding taxes | 52,554 | 64,761 | |||||||||||
2019 Share Incentive Plan | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Number of shares authorized | 1,320,000 | 1,320,000 | 1,320,000 | ||||||||||
Shares granted | 418,896 | ||||||||||||
Percentage of outstanding shares | 5% | ||||||||||||
2019 Share Incentive Plan | Maximum | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Number of outstanding shares added annually | 1,320,000 | ||||||||||||
2019 Share Incentive Plan | RSUs | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||
Shares granted | 418,896 | 267,175 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Changes in Number of Shares Available for Grant (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Feb. 25, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
RSUs granted | (418,896) | |
Options granted | (963,000) | |
Expirations | 8,799 | |
Forfeitures | 114,551 | |
2019 Share Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Available for grant, beginning balance | 1,853,240 | |
Added to 2019 Share Incentive Plan | 1,320,000 | 1,320,000 |
RSUs granted | (418,896) | |
Options granted | (963,000) | |
Shares withheld in settlement of taxes and/or exercise price | 52,554 | |
Expirations | 8,799 | |
Forfeitures | 147,667 | |
Available for grant, ending balance | 2,000,364 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options | |||||
Options outstanding, Beginning balance | 2,797,992 | ||||
Options granted | 963,000 | ||||
Options exercised | (242,423) | (454,354) | (138,878) | 0 | 0 |
Options expired | (8,799) | ||||
Options forfeited | (114,551) | ||||
Options outstanding, Ending balance | 3,395,219 | 2,797,992 | |||
Options exercisable | 1,807,566 | ||||
Options vested and expected to vest | 3,337,698 | ||||
Weighted average exercise price | |||||
Weighted average exercise price, Outstanding beginning balance | $ 12.64 | ||||
Weighted average exercise price, Options granted | 15.61 | ||||
Weighted average exercise price, Options exercised | 9.21 | ||||
Weighted average exercise price, Options expired | 14.77 | ||||
Weighted average exercise price, Options forfeited | 9.64 | ||||
Weighted average exercise price, Outstanding ending balance | 13.83 | $ 12.64 | |||
Weighted average exercise price, Options exercisable | 12.45 | ||||
Weighted average exercise price, Options vested and expected to vest | $ 13.81 | ||||
Weighted average remaining contractual term (years) | |||||
Weighted average remaining contractual term, Options outstanding | 7 years 7 months 6 days | 7 years 10 months 24 days | |||
Weighted average remaining contractual term, Options exercisable | 6 years 9 months 18 days | ||||
Weighted average remaining contractual term, Options vested and expected to vest | 7 years 7 months 6 days | ||||
Aggregate intrinsic value, Outstanding | $ 28,985,969 | $ 38,295,799 | |||
Aggregate intrinsic value, Options exercisable | 17,697,417 | $ 18,500,000 | $ 12,700,000 | ||
Aggregate intrinsic value, Options vested and expected to vest | $ 28,535,242 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Estimated Fair Value of Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 2.96% | 1.14% | 0.39% |
Weighted-average expected volatility | 72.90% | 50.90% | 50% |
Expected term (in years) | 5 years 6 months | 6 years 6 months | 6 years 6 months |
Weighted average grant-date fair value per share of options granted | $ 9.94 | $ 21.36 | $ 7.56 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Restricted Shares Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Number of Units | |
Number of Units, RSUs, beginning balance | shares | 547,343 |
Number of Units, RSUs granted | shares | 418,896 |
Number of Units, RSUs vested | shares | (236,133) |
Number of Units, RSUs forfeited | shares | (33,116) |
Number of Units, RSUs, ending balance | shares | 696,990 |
Weighted average grant date fair value | |
Weighted average grant date fair value, RSUs, beginning balance | $ / shares | $ 22.47 |
Weighted average grant date fair value, RSUs granted | $ / shares | 15.31 |
Weighted average grant date fair value, RSUs vested | $ / shares | 22.05 |
Weighted average grant date fair value, RSUs forfeited | $ / shares | 24.47 |
Weighted average grant date fair value, RSUs, ending balance | $ / shares | $ 18.22 |
Share Capital - Shares (Share C
Share Capital - Shares (Share Capital Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Capitalization Equity [Line Items] | |||||
Share options exercised, shares | 242,423 | 454,354 | 138,878 | 0 | 0 |
Share Capital | |||||
Schedule Of Capitalization Equity [Line Items] | |||||
Beginning balance, shares | 26,735,175 | 26,035,000 | 25,673,000 | ||
Issuance of ordinary shares under employee share purchase plan | 152,096 | 82,000 | |||
Issuance of vested shares | 236,133 | 229,000 | 234,000 | ||
Share options exercised, shares | 242,423 | 454,000 | 139,000 | ||
Shares withheld for net settlement of shares issued | (52,554) | ||||
Ending balance, shares | 27,313,273 | 26,735,175 | 26,035,000 | 25,673,000 | |
Beginning balance | $ 3 | ||||
Ending balance | $ 3 | $ 3 |
Share Capital - Shares - Additi
Share Capital - Shares - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Stockholders' Equity Note [Abstract] | |
Common stock dividends declared | $ 0 |
Common stock dividends paid | $ 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income | $ 20,200 | $ 37,421 | $ 18,575 |
Denominator: | |||
Basic weighted average shares outstanding | 26,919,550 | 26,421,087 | 25,707,092 |
Dilutive effect of share option awards | 851,011 | 1,846,998 | 228,388 |
Dilutive effect of restricted share units and restricted share awards | 242,528 | 348,934 | 467,632 |
Dilutive effect of employee share purchase plan | 12,189 | 11,117 | |
Diluted weighted average shares outstanding | 28,025,278 | 28,628,136 | 26,403,112 |
Net earnings per share, basic | $ 0.75 | $ 1.42 | $ 0.72 |
Net earnings per share, diluted | $ 0.72 | $ 1.31 | $ 0.70 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Basic [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net loss per share | 1,361,666 | 0 | 2,082 |
Income Taxes - Components of (L
Income Taxes - Components of (Loss) Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 10,269 | $ 10,943 | $ 2,648 |
Foreign | 7,748 | 20,963 | 15,483 |
Income before income taxes | $ 18,017 | $ 31,906 | $ 18,131 |
Income Taxes - Schedule of Bene
Income Taxes - Schedule of Benefit of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal, Current | $ 1,174 | $ 268 | $ (198) |
State, Current | 847 | (94) | (181) |
Foreign, Current | 985 | 376 | 1,007 |
Current tax provision | 3,006 | 550 | 628 |
U.S. federal, Deferred | (3,814) | (1,662) | (664) |
State, Deferred | (610) | (147) | (144) |
Foreign, Deferred | (765) | (4,256) | (264) |
Deferred tax benefit | (5,189) | (6,065) | (1,072) |
Benefit for income taxes | $ (2,183) | $ (5,515) | $ (444) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Taxes [Line Items] | |||
Statutory rate | 21% | 21% | 21% |
Change in deferred tax assets valuation allowance | $ 800,000 | $ (7,700,000) | |
NOL carryforward | 17,000,000 | 28,700,000 | |
NOL carryforward, indefinite life | 15,300,000 | 25,600,000 | |
NOL carryforward, definite life | 1,700,000 | 3,100,000 | |
NOL carryforward, definite life | 3,100,000 | ||
CIR carryforward | 3,900,000 | 4,800,000 | |
Reduction in deferred tax asset related to utilization of CIR | (900,000) | ||
Unrecognized tax positions | 0 | 0 | |
Income tax (benefit) expense | $ (2,183,000) | $ (5,515,000) | $ (444,000) |
Effective tax rate | (12.10%) | (17.30%) | (2.40%) |
Non-Recurring Tax Benefit Related to Valuation Allowance | $ 7,700,000 | ||
Release of valuation allowance | $ (857,000) | 7,902,000 | |
Employee restricted share vesting and option exercises | 3,400,000 | ||
Benefit on foreign derived intangible income | 2,300,000 | ||
Research and Development | |||
Schedule Of Income Taxes [Line Items] | |||
Change in deferred tax assets valuation allowance | 2,800,000 | ||
NOL carryforward, definite life | 800,000 | ||
Tax credit carryforward | 2,000,000 | 1,500,000 | |
Tax credit carryforward, indefinite life | $ 2,000,000 | $ 700,000 | |
UK | |||
Schedule Of Income Taxes [Line Items] | |||
Statutory rate | 19% | 19% | 19% |
Tax returns open, tax years | 2020 2021 2022 | ||
Revaluation of deferred tax asset | $ 900,000 | ||
California | Research and Development | |||
Schedule Of Income Taxes [Line Items] | |||
Change in deferred tax assets valuation allowance | $ 200,000 | ||
Additional valuation allowance on the related deferred tax asset | $ 800,000 | ||
Valuation allowance on the related deferred tax asset | $ 1,300,000 | $ 500,000 | |
India | Earliest Tax Year | |||
Schedule Of Income Taxes [Line Items] | |||
Tax returns open, tax years | 2018 | ||
India | Latest Tax Year | |||
Schedule Of Income Taxes [Line Items] | |||
Tax returns open, tax years | 2022 | ||
US | Earliest Tax Year | |||
Schedule Of Income Taxes [Line Items] | |||
Tax returns open, tax years | 2019 |
Income Taxes - Computation of P
Income Taxes - Computation of Provision (Benefit) of Income Taxes Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at federal statutory rate | $ 3,784 | $ 6,700 | $ 3,808 |
State and local income taxes net of federal benefit | 27 | 10 | (295) |
Tax rate changes | (873) | 21 | (925) |
Valuation allowance changes | 857 | (7,902) | (1,226) |
Foreign rate differential | 138 | (164) | (181) |
Research and development | (2,840) | (811) | (1,455) |
Share-based compensation - excess tax benefit | (778) | (3,444) | (171) |
Foreign derived intangible income | (2,258) | (349) | |
Other | (240) | 75 | 350 |
Benefit for income taxes | $ (2,183) | $ (5,515) | $ (444) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
NOL and tax credit carryforwards | $ 5,883 | $ 6,886 |
Capitalized research costs | 6,017 | |
Disallowed interest carryforwards | 906 | 909 |
Lease liability | 289 | 584 |
Property and equipment | 27 | |
Share-based compensation | 2,665 | 1,130 |
Intangible assets | 260 | 221 |
Other | 320 | 353 |
Subtotal | 16,340 | 10,110 |
Less: Valuation allowance | (1,328) | (471) |
Net deferred tax assets | 15,012 | 9,639 |
Property and equipment | (775) | |
Operating lease assets | (242) | (505) |
Prepaid expenses and other assets | (425) | (400) |
Capitalized software development costs | (788) | (1,141) |
Net deferred tax liabilities | (2,230) | (2,046) |
Total deferred tax assets, net | $ 12,782 | $ 7,593 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets/Liabilities Included in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets - non-current | $ 12,782 | $ 7,604 |
Deferred tax liabilities - non-current | 11 | |
Total deferred tax assets, net | $ 12,782 | $ 7,593 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowance on Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 471 | $ 8,373 |
(Release) increase of valuation allowance | 857 | (7,902) |
Ending balance | $ 1,328 | $ 471 |
Income Taxes - Summary of Gross
Income Taxes - Summary of Gross NOL Carryforwards Expire (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
NOL, Unlimited carryforward | $ 15.3 | $ 25.6 |
NOL, 10+ year carryforward | $ 1.7 | $ 3.1 |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards and Expiration (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards, 10+ year carryforward | $ 3.1 | |
Research and Development | ||
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards, Unlimited carryforward | $ 2 | 0.7 |
Tax credit carryforwards, 10+ year carryforward | $ 0.8 |
Income Taxes - Summary of Gro_2
Income Taxes - Summary of Gross CIR Carryforwards Expire (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Corporate interest restriction disallowance, Unlimited carryforward | $ 3.9 | $ 4.8 |
Revenue from contracts with c_3
Revenue from contracts with customers - Schedule of Revenue by Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 296,899 | $ 335,854 | $ 278,459 |
Sales Revenue, Product Line | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 100% | 100% | 100% |
Point-to-Multi-Point | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 114,941 | $ 204,756 | $ 172,601 |
Point-to-Multi-Point | Sales Revenue, Product Line | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 39% | 61% | 62% |
Point-to-Point | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 67,083 | $ 60,761 | $ 60,435 |
Point-to-Point | Sales Revenue, Product Line | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 22% | 18% | 22% |
Enterprise | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 109,844 | $ 66,933 | $ 39,990 |
Enterprise | Sales Revenue, Product Line | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 37% | 20% | 14% |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 5,031 | $ 3,404 | $ 5,433 |
Other | Sales Revenue, Product Line | Product Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 2% | 1% | 2% |
Revenue from contracts with c_4
Revenue from contracts with customers - Schedule of Revenue by Geography (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 296,899 | $ 335,854 | $ 278,459 |
Sales Revenue, Product Line | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 100% | 100% | 100% |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 133,897 | $ 173,491 | $ 147,328 |
North America | Sales Revenue, Product Line | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 45% | 52% | 53% |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 90,883 | $ 93,082 | $ 80,927 |
Europe, Middle East and Africa | Sales Revenue, Product Line | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 31% | 28% | 29% |
Caribbean and Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 31,223 | $ 40,974 | $ 29,418 |
Caribbean and Latin America | Sales Revenue, Product Line | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 10% | 12% | 11% |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 40,896 | $ 28,307 | $ 20,786 |
Asia Pacific | Sales Revenue, Product Line | Geographic Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 14% | 8% | 7% |
Revenue from contracts with c_5
Revenue from contracts with customers - Summary of Customers with Accounts Receivables and Customer with Net Revenues of 10% or Greater (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | Sales Revenue, Product Line | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 15% | 20% | 19% |
Customer A | Accounts Receivables | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 29% | 25% | |
Customer B | Sales Revenue, Product Line | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 15% | 14% |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Trade accounts receivable, net of allowance for credit losses | $ 89,181 | $ 68,788 |
Deferred revenue - current | 8,913 | 6,880 |
Deferred revenue - noncurrent | 8,617 | 5,363 |
Refund liability | $ 3,186 | $ 2,516 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Line Items] | |||
Deferred revenue | $ 17,500 | $ 12,200 | |
Revenue remaining performance obligation | 8,900 | 6,900 | |
Revenue recognized | $ 6,800 | 6,300 | $ 7,300 |
Revenue practical expedient, incremental cost of obtaining contract [true/false] | true | ||
Revenues | $ 296,899 | 335,854 | 278,459 |
United States | |||
Revenue From Contract With Customer [Line Items] | |||
Revenues | $ 132,900 | $ 165,300 | 140,700 |
Italy | |||
Revenue From Contract With Customer [Line Items] | |||
Revenues | $ 31,600 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Additional Information (Details 1) | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligation expected to be recognized period | 1 year |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Line Items] | |
Lessee operating lease option to extend | true |
Minimum | |
Leases [Line Items] | |
Lessee operating lease term of contract | 1 year |
Lessee operating lease option to extend period | 1 year |
Maximum | |
Leases [Line Items] | |
Lessee operating lease term of contract | 4 years |
Lessee operating lease option to extend period | 4 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 2,361 | $ 2,592 | $ 2,586 |
Short-term lease cost | 471 | 283 | 341 |
Variable lease costs | 611 | 500 | 375 |
Total lease expense | $ 3,443 | $ 3,375 | $ 3,302 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating lease assets | $ 4,011 | $ 5,899 |
Current lease liabilities | $ 1,930 | $ 2,116 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 2,170 | $ 4,112 |
Weighted average remaining lease term (years): | ||
Operating leases | 2 years 8 months 1 day | 3 years 4 months 6 days |
Weighted average discount rate: | ||
Operating leases | 6.11% | 6.15% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental cash flow information: | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 2,403 | $ 2,674 | $ 2,701 |
Leases - Remaining Maturities o
Leases - Remaining Maturities on Lease Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 2,122 |
2024 | 1,116 |
2025 | 806 |
2026 | 384 |
Total lease payments | 4,428 |
Less: interest | 328 |
Present value of lease liabilities | $ 4,100 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Vector Capital Management L.P. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Management advisory fees | $ 0.1 | $ 0 | $ 0 |
Due to related parties | $ 0.1 | $ 0 |