Earnings call transcript Q3 2022

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Operator

Good afternoon. My name is Sean, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Cambium Networks' Second (sic) [Third] Quarter 2022 Financial Results Conference Call. [Operator Instructions] Thank you.

Mr. Investor Analyst President, begin you Vice conference. your Schuman, and Relations, Industry may Peter

Peter Schuman

Welcome, you Andrew of The results our CFO Form on the page available release and at and today A conclusion page Sean. President referenced today's the has prepared joining you, release be Thank call on X-K thank call. today's our will Bhatnagar, Atul remarks CFO, Networks SEC. a and accessible welcome are all website our of quarter been commentary are by and this for webcast. for the copy on CEO; for this press press third XXXX of our call investor financial on also financial and results the investor submitted with conference call. and to those Bronstein, Cambium us joining here

including reminder, expectations, forward-looking company's about the outlook. harbor release. not the today's financial a after of will are and review this developments, changes whether in Q&A, results on expectations the to date Cambium's actual is of reiterate We to financial factors full any policy our today's results As expected statements law, statement risk of any safe listeners to Networks in encourage list by Cambium the Except required contain remarks, in included or future result Risks make not as made press to presentation, to otherwise. statements and does conform These as assumptions. to any based new information, a results these and statements those Networks or Cambium to actual It outlook could during performance. forecasts, for reason statements update or obligation cause forward-looking differ revise materially. uncertainties undertake current

where specifically today's of appendix is measures today's on We press sequential our website that financial reconciliation noted. release all year-over-year in which reference in non-GAAP GAAP investor and our found announcing measures the note can release to both and included non-GAAP page to and and will GAAP comparisons results. numbers otherwise be financial reference A press except non-GAAP also of results the

President Andrew Turning Bhatnagar, Networks' third and for Cambium quarter financial the and provide CFO, CEO, to the our the key Cambium third recap present quarter will agenda, outlook highlights for investment provide fourth Bronstein, financial XXXX for results XXXX quarter of the will Networks' the XXXX. the and Atul a

Our prepared a followed be remarks will session. by Q&A

over I'd now like the call to to turn Atul.

Atul Bhatnagar

of of record ahead saw $X.XX. supply Wi-Fi, better Cambium including controls. of cost product to had the mix Thank of $XX.X tight significantly, the our improved growth of revenues Cambium you, million sequentially, of quarter 'XX between for announced with $XX our $X.XX to improved to million $X.XX, quarter for ahead high outlook of products and spending in our third end We continued switching, than gross margin revenues anticipated enterprise Profitability Peter. and the our EPS was increasing call. outlook XX% between of lower high due of million, strong end components solutions. QX during with $XX and SaaS

and We wireless for improving new by fixed PTP anticipate Point-to-Point PMP for defense technologies stronger demand driven solutions applications. Point-to-Multi-Point for demand

record for and increasing in remained XE, switching exceptional sequentially improvements year-over-year, and XX% solutions, Wi-Fi we revenues. an Our further growing Wi-Fi and our chain. demand, We solutions the supply X, record had strong, enterprise expect with quarter XXX% also including enterprise

strong able which during Our we switching to 'XX. backlog had fulfill business QX were

more to We for grow year expect our 'XX. gain than by enterprise market business and continue share now XX% calendar to

emerging projects integrating choice solution with around total ownership, fabric broadband wireless a wireless During solutions Cambium's standards, our network cost infrastructure for is a featuring QX our millionth world, we glass. of company. of 'XX, and a shipped single management of as the XX attractive cloud-managed Network technologies, pane standalone compelling radio from multiple ONE communications

lines. our results across the third at looking the to XXXX, revenues quarter Turning of product

sequentially PMP gigabit of from ramp X% XX XXX Fixed products revenues Our legacy introduction business technologies during lower products demand XX% service our new as the technology and the 'XX. decreased PMP including of cnWave of decreased X year-over-year, ahead to both and expected GHz providers XG move due GHz QX

QX while wireless business quarter during QX The of PTP broadband X% although XX% the sequentially of largest using federal technology in defense for Cambium's business at due history company's the in communications. Hurricane shipments 'XX, fixed to improved defense by bookings in PTP decreased caused our delays We 'XX, had during QX year-over-year shipments higher 'XX. XXX Ian revenues end for our Florida

higher expect defense shipments We during 'XX. QX

business 'XX, and XE solutions, enterprise record due or million QX higher Wi-Fi $XX.X SaaS million revenues by to by of XX% our during XXX% million increasing $XX.X or revenues, demand and X in $XX.X sequentially, record increased had for growth solutions. Our and year-over-year, record switching

for are strong a set and the reputation and verticals. well by established other quality, product being and received education, healthcare, hospitality, enterprise feature have our We

mandated some our Cambium CIP cost one a large at XXX service America, BDC Cambium's In long-term signed in competitors developments. total was selected customer of capabilities wins wireless Looking superior provider Collection product PMP selected for Texas, to and its cnHeat, and largest sites. planning platform, notable performance was products. The for new GHz Data has North Community a cnWave Cambium and XX ownership, and customer reporting, FCC greenfield attractive Internet Broadband of scalability. Providers agreement with previously and including deploy

Midway reach. selected was required have selected selected both network. superior deliver to and performance XX Cambium's outdoor to applications. wireless and to in our locations and to GHz remote cnWave access In expensive fixed Wi-Fi, high-speed breadth upgrade portfolio cnWave indoor would was fiber their Cambium's enterprise Kentucky, to due University XX switching, that GHz Cambium backhaul otherwise

a for platform. XX We substantial demand cnWave this provider Cambium's initial Middle Europe, Provider enterprise wins our Wi-Fi to vertical. X new received and from service in business XG healthy a cnMaestro the Northern and easy Africa continued and larger two have deal access MSP France Fixed commitment reliability, of scalability, and management included enterprise. continued we makes and the for Africa won EMEA, win X as points, to Cambium's We In GHz Managed wins result roadmap. to East, quality, large projects. solutions. our for manage deployments These and in region, cloud for deploy, a plan, technology home Network the Cambium's it gigabit We in Service hospitality ONE had affordable our speeds

XX and business Pacific, quarter through the was Latin our for leading CALA Asia India with X and win selected support. Cambium access in a our the including partner region, the a X cost chain hotspots for of in a Wi-Fi had MSP provide city. APAC points the a performance, at large X,XXX And locations. hospitality over overall vertical, Wi-Fi ownership, a management for hotels software smart had with we in strong In better win hospitality city sizeable luxury of the and to enterprise both of region, Janeiro total strong America, for cnMaestro city enterprise Caribbean we Rio across cnMaestro De Wi-Fi easy

second Gigabit our end. will when update. introductions, have leading doing Cambium product availability gigabit first received spectrum miles, industry Approximately, per utilizing second proof-of-concept cost. leverages next- per XXXX enable significant eagerly provides previous delivery customers One GHz GHz already upload, and of the data an megabit to multi-gigabit each Turning affordable technology of with than rates higher new second the awaiting at of are technology, have quarterly generation our technology of subscriber significantly X.X is before of X.X XXXX position customer since XXX.XXax a XX our to to actual Cambium's edge our module. is significant throughput ePMP license X to achieved the order. standards our the industry we per more of advantages new XXX ePMP the year download product at experimental an network. gigabit X.X released The and X competition performance and

of GHz the and on fixed limited is Use U.S. in Point-to-Multipoint a basis. for wireless controlled today X operation available

require or broad that Radio spectrum sharing SAS Automated use Spectrum users. will of facilitates in similar CBRS Broadband it AFC. is with Access Frequency However, Coordination Service's Service to Citizens access incumbent AFC of

in a intend SAS, We expect under use and services AFC early the and to with of provide hardware, we AFC solution, CBRS XXXX, FCC to complete cnMaestro. approve as

and market, offers Wi-Fi, the hospitality, public for fills new GHz cnWave is a cnWave our out outdoor product VXXXX, a new including introduced use launching provider X customer VXXXX QX, connectorized we needs. Wi-Fi outdoor points Provider technology Service such applications, targeted up targeted In This to and service municipality, logistics, higher XX warehouse The portfolio markets The and Point-to-Point and are for X Wi-Fi the features X with than campuses. city up and and in recently new transportation, range as longer GHz, Internet of In access outdoor XE education, second and to gigabit the logistics software markets. X.X market. fills midrange per we Wireless the and for product defined enterprise radio product connectivity kilometer. for a smart the which our WISP, range product stadiums, high-volume education, XX CCTV, for

X lineup, farmers' for within in solutions, including introducing remote as to or connectivity markets, activities X product for used operation radios internet connect cnWave garages. video the lodges, gigabit The shops, Also, which a for can events, connectivity, away. solution CCTV our Box deployment-friendly for a XX Bridge machine be to kilometer provide barns, for up pre-configured X of athletic cnWave high-bandwidth pair out-of-box we feeds, or and or GHz are such cabins, concerts, cameras

radio XXX QX megabit now XG Fixed, available. defined speeds Within is GHz XXX in and Cambium's cnWave released delivering Multi-User per architecture and software MIMO XX second our late was

of XX scaled scale. within including Our able become residential MIMO to for XXX operators featuring and software few at and performance suburban XG GHz subscribers quarters X are in a with Multi-User will higher cnWave now rural gigabit support of next a available and per business urban, even Fixed locations update. speeds version Network deployments second

history, QX our GHz quarter the per CALA our a of deal, in multi-year largest Fixed, After multi-million-dollar XX our end, in contracts for landed company's a XG customer from year, 'XX one region. PMP cnWave Cambium

excited validated our commercial We customers into we the moving deployment are of technology, are phase have and larger very deals. that with size now

growth. Total QX cloud-powered the from network experience glass, strong an XXX,XXX, a Looking software, to devices over over and management under XX% increase end-to-end to from cloud was 'XX, approximately manage in continued user solution up software of pane single QX our cloud the cloud year-over-year. cnMaestro at 'XX X% connectivity our of cnMaestro

sequentially cnMaestro premium during growth Revenue For in for the XXX% deal see wireless booked revenue cnMaestro are and with our fixed a wireless for to offering, healthy solutions continuing broadband fixed quarter X quarter. and provider seats service X, third product. both enterprise XX,XXX third major which this during large the Asia for in for we a includes grew

to Turning sequentially year-over-year, an we our new increase X,XXX over in channel of over represents adding X% net channel, sequentially, and and presence our XXX expanded by channel partners 'XX, over partners net QX channel year-over-year. XX% new which

We into continue at and GHz, featured from around channel, and a well-attended several home the reach and Also in new gateways providers industry within GHz, to on show, early Cambium new mid-market October, the Cambium channel focused WISPAPALOOZA introductions service the XX participated GHz, is including XX trade expand X in customers which routers. our world. partners product

services their Collection RF fixed fixed meet of award. service cnHeat it plan wireless of for BDC to networks, providers served Data assess tool Broadband Association market year their WISPA access mapping Cambium's received requirements. XXXX FCC-mandated all easy networks, their the cnHeat effective their addresses, the broadband and service reporting the coverage to wireless makes

is meaningful up more a in an increasingly showing important our way of part Cambium's is Software and now story results. in becoming financial growth

over call Andrew results our of review a to the QX turn now will financial and QX for outlook. 'XX I 'XX

Andrew Bronstein

of Atul. $XX.X by and Cambium year-over-year. increased quarter-over-quarter QX reported Revenues for by 'XX. Thanks revenues XX% X% increased million

transition, continued quarter, million. to third customers were of constraints of higher PMP and while solutions, ease, The PMP high-demand leading shipments, increased the sequential a revenues legacy result During QX revenues by 'XX, basis increased for technology production our were supply shipment the down benefitting partly while XXX supply to for ePMP products offset higher primarily revenues $XX.X our improved by anticipating On were of ahead enterprise a enterprise PTP lower products. global slightly. were revenues

to margin. Moving gross our

mix a our the points XXX greater Our to margin QX higher non-GAAP of margin improved margin freight points part non-GAAP On compared an higher increased increasing was higher anticipated, margin and XX.X% chain gross by inflation and by QX a result of better controls, supply significantly in non-GAAP higher to lower component costs than increase was year-over-year The basis PTP margin to higher increased offset was in volumes, by and gross the gross of basis 'XX. costs pricing, products. enterprise non-GAAP 'XX. was due sequential solutions, challenges. basis, and enterprise gross mix XXX result cost compared The of quarter-over-quarter tight volumes

'XX, In of year prior $XX.X increased and the by non-GAAP and to our improved to mix pricing enterprise costs. chain higher offset of gross QX and dollars enterprise volumes compared and by million higher due improved products costs mix component by lower of profit due million and $X.X was higher million inflation volumes, products, $X.X sequentially, to product due This in supply a part higher to challenges. freight increased

target longer-term XX% a While on to we basis, margin of annual non-GAAP goal an achieved quarterly a our target on our gross gross XX% remains margin consistent basis.

'XX, variable 'XX, services result operating timing materials, QX due approximately to by or of QX non-GAAP and the promotional revenues. increase because and to tight increased marketing, marketing Quarter-over-quarter related The slightly the our in 'XX When increased for and while QX in was to offset by operating as $XXX,XXX in higher approximately operating professional primarily to of $XXX,XXX XX.X% sales prior and period controls. at costs G&A tight to primarily including Non-GAAP due when higher around compared by lower expenses well. increased IT, as services related lower of professional R&D travel million, increases compared year and of sales was for cost expenditures stood to amortization $XX.X expenses, compared materials, to less increased compensation headcount. G&A controls expenses

million, million, per 'XX diluted compared up Non-GAAP XX%, $X.XX to and operating for X.X% higher XX.X% $XX.X million, for prior the dollars. or from during previous QX from margin per profit higher primarily share QX between to was and QX and higher up 'XX, revenues per in per QX 'XX QX due revenues to income Non-GAAP 'XX. $X.XX non-GAAP was quarter's non-GAAP year or while both share compared $X.XX was for $X.XX of compared income to outlook result share, income or net higher profit of 'XX, period a results $X.XX net The above $X share of 'XX. diluted to prior of and income net $X.X the primary gross net diluted the was diluted for QX dollars, gross

QX to XX.X% revenues QX $X.X or Adjusted XX.X% of 'XX to and EBITDA compared million for was 'XX. 'XX, $XX.X million million or of XX.X% revenues, $X.X for revenues compared or of for QX

Our operating remains solid. model

our to revenues are operating million. beginning our in as than of committed Cambium adjusted more XX% We of to remain some our consistently driving XX% increased EBITDA to revenues. long-term leverage to to regain $XX target business We

QX and cash by $XX.X cash and million provided flow, QX to QX for million compares operating to was 'XX, million activities 'XX, $XX for Moving $X.X for 'XX.

anticipated to as Our a revenues accounts cash support product receivables increased we certain the inventories business. impacted flow increased result and of growth timing and higher was as of our

XX, QX and growth in the accounts a $X.X cash million million reflects sequential of decrease primarily the totaled increased support 'XX. of revenues, growth The sheet, the September decrease Turning in business. as faster higher $XX.X of from XXXX, inventories due receivable to to balance to cash

in inventories of in 'XX higher sequentially Net of component grow 'XX. $X.X QX to approximately goods inventories an million Inventories increase continue million business. finished year-over-year, by while because $XX.X increasing we million $XX.X from as were by increased our QX and

year. remainder to inventory an increase the supply in of the products positions remains challenge, our While are we chain ongoing certain working the for selectively

costs November average will chips. that due In range and placed the resulted effect including are are a products of costs, prices addition, on for orders to selectively increase chain of recently higher inflation price X% that we after supply about cost manufacturing in all This an of wide increasing we announced XX. for by take or

before and However, March for we on long requests prices will a times date published or within backlog, the XXXX. ship is lead increase our customer that XX, not as as

full the impact be by will 'XX. QX realized that price this expect increases We of

operations the to of for enterprise continued China, In a better our much environment. supply our chain summary, strong and quarter uninterrupted was anticipated quarter third due in products, improvement full than demand in a

and strong the of new we remains are backlog at start Our cycles. product

to to operational target operating our model. long-term regain continue toward make improve efficiency, achieving significant scale, We and expect progress

be Moving 'XX Cambium is any to financial financial as expected to pending of impact other the potential does the today, as Networks transactions. current possible include follows. fourth financial quarter outlook our outlook, Considering QX transactions, acquisitions, matters, our or of not visibility outlook future legal

We expect $XX expect $XX.X growth between operating expenses non-GAAP $XX gross XX.X% income revenues between we non-GAAP $XX.X XX.X%, of X.X to our and to we of operating million. midpoint, supply million remain the certain million, representing million margin between to of at in non-GAAP sequential X% components, constrained $XX.X and between be to approximately

non-GAAP XX.X% X.X Interest per or of between XX% $X.XX outstanding. and diluted a XX% million and tax net and expense and $X.XX, adjusted XX.X%, approximately between margin net share income between $XX.X $XXX,XXX, EBITDA approximately EBITDA approximately a shares of and and and effective non-GAAP XX.X $X.X million, weighted of to diluted of adjusted X.X average net million between rate income

expected pay of a of debt requirements million. Our and of $X.X interest cash approximately $XXX,XXX, CapEx between $XXX,XXX, of are X cash to down and include

turn closing I Atul back will remarks. to for the now call some

Atul Bhatnagar

solutions. supplies, XG are GHz for a strong high-note delivered We driven the expecting ending a our GHz and introductions, launch affordable with imminent return business a PMP growth quarter and product year, solid GHz significant of cnWave new a chip XX and to revenues, strong fixed cnWave, XX increased Fixed, the profitability, to of results finish on wireless increasing by X

Wi-Fi with deployment, of and by Cambium The brings ONE cost ownership solid led products, the in Network our and and X fabric is together ease next-generation networks, wireless integrated savvy strong, scalability total growth switching customers of solutions. wireless high-performance remains world lower and resonating as deploys business of enterprise wireless software-as-a-service broadband. Our XE,

on operating show judiciously our remain benefit increased to products will to to improving my maintain partners, customers managing our scale times. edge, technology continuing future our these costs, our our operations, expect We unprecedented and for like focused I'd and innovative results. in during appreciation invest employees,

prepared This remarks. concludes our

the I'd and session. Sean call So Q&A to turn like to that, begin with over the

Operator

from [Operator Morgan. first Samik comes question Chatterjee Instructions] with Our J.P.

Unidentified Analyst

Chatterjee. MP for Samik on is This

of First strong on all, quarter. congratulations a

I strong. service in from service as CapEx So as been my ask this as wanted macro outlook question the like well regarding providers moderation is situation tough given like broadband very the in and broadband to has quarter just well the a -- telcos. providers your as

how generally you you for look do double-digit do So How into believe guide? you a XXXX? like that growth still

Atul Bhatnagar

Yes. XXXX behind are prepared for that. there's this. message My for a reason And is, we well positioned growth. overall for very solid We

validations If last for two the working networks. about, on diligently of you the we in innovation at the years been look next-generation technology we've amount are bringing and very

organic good. around So overall, I growth our we feel rollout happening. number of in type XG think a that, mid-teens XXXX, fixed is pretty

see are with around QX to definitely my points and starts proof as deals new turning mentioned larger in beginning these coming, now I are in PMP call. We products.

We and have X.X with miles. I as second per proof X.X points gigahertz, mentioned, X gigabit

for very go growth doesn't are we a these Now go a after the to will Cambium is worldwide, is that large which is very and Cambium for mid-tier providers, service which us. Enterprise seasonal, Supply beyond us. situation networks continues very market, enterprise is we scale. both improving if for providers is resilient which service market, mid-tier out validation for and and

good So we pretty XXXX. feel Samik (sic) [MP], about

Operator

Our Scott ROTH Searle Instructions] from with next question Capital comes Partners. [Operator

Scott Searle

fourth that looking I a quarter, I is down to recovering see for Maybe there. the mix, strongly just on just less coming the dive job assume little and guys your of Wi-Fi pretty gross sequentially. quarter, margin part Nice is at guidance Wi-Fi. bit margin the to in right business

fourth the front, front? chain up kind I and is us So that supply see through how on quarter you that behaving could was particularly ramping you of puts the wondering if talk into takes and Point-to-Multipoint how the on

Andrew Bronstein

and that take thanks the one, for Yes, question. I'll

growth you're some as So exactly fourth down we had we the and that product will that switch an coming than margin. gross mainly the we have -- of transition call area. Also, PMP a that and especially said as there's mentioned quarter, were fourth fulfill market during we and of we the commentary, right, during the be to on be of basis. products the introducing new margin the the third bit to impact and do we quarter able fourth that's revenue from it's because enterprise stage the the get a to that in lower mix. the backlog, quarter, the see And -- PMP, And into we in coming in see the terms see a commercializing. we're in driven likely accumulating in quarter level to will going sequential And by beginning on

impact That very we also, ramp so of the inflation begin a in as the reason increase in on look the the but reasons -- of the QX. a that and the quarter, quarter pricing minimal in effect in that's will year next one we our cost the of beginning impact And quarter then more full second on major third to I ahead. have up later increases And see terms of impact our in from still for pricing increase mentioned of in suppliers. the terms for

Maybe just a…

Atul Bhatnagar

if to I mentioned. Scott, can Andrew just what add

good role in Reason long-term in feel meaningful work. general, more Cambium, X has Andrew of and model is this XX% X-year been about the very reasons. a and one, think playing number I our XX% to more for again and both I software

also is new as with we enterprise which forward designs, business. third, coming again, our a And becoming, out. products, are larger defense mix Second, both us is new help and going move to

gross in long-term of pretty in And model. be we will right direction. we margin where the margin the good, general, feel -- So I think in is terms

Scott Searle

front. just could for and up The I just -- point, follow the Point-to-Multipoint on one had I follow-up. If helpful. then that very the on component That's challenges

like? then wondering gross 'XX? to that's Atul, market about I products, could margin, new huge now, you GHz, well could, framework be huge, I around what are like XX% when success in there, of Because was if in level, interest on pretty deem talking it product you don't price be opportunity to achievable And going I'm we're of, just know in if that for something around that's you Or know, what's a you terms I delivering huge XXXX? is ship where put quantifying opportunity X kind pipeline And I wondering the think then product speeds, XX% that? line given that you're opportunity to the points going that can there. starting that gigabit looks of specifically to positioned the looking XXXX? that into For but

Atul Bhatnagar

Okay.

question. Let take very that's very miles. a available. and think our come performance XX were wow, products, band. gratified large of bandwidth question, very We me shared first, at But X in because never affordable number are that the X.X gigabit customers X pleasantly GHz with pilots We now back numbers very saying, GHz I as performance surprised strategic X.X

strong that GHz to gets large Cambium. sub product AFC, closely sure still very board, be X going and with and that half of 'XX again, of all say working first POCs be line working So Having would FCC, making approved, trials, them. is are think, we would I a, with a I the across that, said

lots see is, when production into that those So networks. turn second you half is POCs my will sense of

key point. one that's So

pricing. affordable the is and key Cambium's based merchant strategies silicon Second on very based standards

all matches it of that. So

XX% it. it XX% follow the and me will lead And gross to think, excited on will world, after very that. I Rest pass the U.S. Andrew. margin, of to So let

Andrew Bronstein

Yes.

FCC, look us of of improve will we're be positioned et on the year, we XX% for those the And So operating And inflation yes, mark, to do soon terms for at from see next launches. inventory components for think that XX% to are as well, couple strategically nice those is in long-term and to commercialize it approval of improvement which we of that's XX%, a we continue as the products are as the buy years in products, past next get trade-off for is increase our that terms of as I two see within as as we we be well ship of in able way headwinds think we new to model ready years. those supplies over well. reasons to able the the around mix the in to to products one out getting the the in product and and front continue going cetera. I of

So answers your hopefully, question. that all parts of

Operator

And Instructions] Jefferies. from Notter [Operator question next George our comes with

Unidentified Analyst

see versus more of PMP in is other Kyle structural get much get We're is This just reason, driven PMP. fourth thought all? you'd that there growth it benign quantify is you Notter. the momentum on Wi-Fi Wi-Fi How for at trying up? Can And Wi-Fi components for versus other about how into the sense right PTP effect the much your easing by has of for you quarter? the quarter talking now from PTP, why than to going and to wait came supply fact versus PTP picking supply demand this any a you're or George demand more than the of that easier

Atul Bhatnagar

Thanks, Kyle.

all, of mid-tier strong is Cambium emerging as enterprise Wi-Fi, First player globally. a in

a to that's X X has with important I'm years think road customer needs. statement taken pretty It us I map, the making. understanding right right features,

We brand a mid-tier segment. are strong in that now

have much Cambium we X,XXX you give to in is an X growth customers. getting, last adoption Just new or acceleration or added idea quarters, how

reason And is X one, Number the simplicity. words. winning Cambium is

automation cnMaestro for enterprise And lot simple. we a Our have number three, networks. affordability. scaled of added Number are two, products in

a us. way, ownership. lower solutions cost Our And of the these have by are telling total words, customers our

we hospitality, for are simplicity TCO some segments lower markets, very are and multiple get into the globally, which service this healthcare, playing well. of dwelling units, accelerating MDU providers us managed these values beginning at And is where are point, to education. verticals serving And

overall, can is way not solution, more get companies superior supply. than think, earning chips superior about this bigger Cambium. Cambium is The I So TCO. chip its in through

Andrew Bronstein

supply. I million earlier what really about just level able shipments we to the I that were happened would customers somewhere fulfill said to that orders. question were $X related in quarter where the and particular improved get quantify get that that, that in we those terms of around orders, to add of about switches And most and to the supply, fulfill that inventory fulfill the is wanting had to of begin range. -- of would that your product too, product because

a it kind being of it's But So product. and about satisfy terms see nice we'll was able growing, of continue to in -- QX continue to popular million backlog to of $X beyond. shipments. We're going to sales was very that in

Atul Bhatnagar

Kyle, we not making are by to add, hardware. solutions sticky, And our necessarily

We providing locks, by smart for solutions like, our making example, and hotels. for hospitality APIs are for sticky

providing software lot Maestro in Cambium and of their enterprise good integrate to easier products are for in it We them a applications. making

So we continue growth. about XX% the and good pretty feel overall,

Unidentified Analyst

the there was into Okay, margin gross the and pick Could seems investing OpEx on going me, but anything areas scale investment? that you're there new launch like great. one now for maybe one it and you might specific up to spending And doing? the some sales cover and important Is QX, OpEx that a Are right the for marketing last revenue little you're of of contextualize looks additional ahead products? guide solid you're higher. revenue in that when

Andrew Bronstein

fourth that range R&D, within other be is who enterprise as total is result And in getting launches. the There's overages and activity compensation is ahead will to people really sell two which, the happens that had that and approvals products products -- year. sales about going the of Yes. reflective know, the hit areas. year, in the regulatory revenues of with that One you this right as the million the The success $XXX a quarter. for of really you're those business the and of those we've in it's new right

there So the costs additional will and fourth some sales be marketing in quarter.

Operator

[Operator Instructions] comes Our Essi William next with Paul Woodruff. question K. from

Paul Essi

First business, share I switch question there. gaining know is market on your you're

taking versus You're from? share you can in growing How long And do think market switches? the who sustain very growth you that you market. rapidly the are

Atul Bhatnagar

are lot So there there. of a switching very market a Paul, is and all, generic first of players large

and savvy switching. And has management, pane we products. very good to -- Our glass. it's cloud products, Very, Wi-Fi The caters always switching companion good wireless very a to of X to a good companion savvy only business very our XE savvy it single Wi-Fi. say wireless

growing, wireless midsized service but for networks, in wireless to I So those city providers, well very positioned But for overall, the we'll generic is smart not for a keep this projects, networks, for internet think enterprise switch. markets. grow

Paul Essi

Okay.

Second question is on the XX.

in main to works? X And to spend able next coming a be guys year there, there's one have are going gig I'm that Your do Do you have? competitor like do? know the you they guys the you they wondering, if maintain

Atul Bhatnagar

XX and Paul, XG, very question. a you think On good asked GHz I

lot are bet do I a And key adopting think are bringing the has feeds. because again, we good very which XG years now us feature the fixed X is a on and is companies going of It that standard, XG investments. and which we products. and well, key to taken speeds back, sets have

also I think has are who wants enter substantially. to invest to

in XG set leader key mobile, as see, fixed. will Cambium very XG networks. and we We another of there they're production we POCs And now into of As why is And that's believe, turning a I'm talking don't close kind performance you always deals. not of XG feature now, as has company, those have. we are fixed. now, going beginning the had which the to

as expands, as enter will I answer, another I'm others market know pretty key the the So well. sure don't company, but

Operator

would At this turn it time, like remarks. closing Schuman over to Peter I to for

Peter Schuman

Thank you, Sean.

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Operator

for participation does you conclude the your today's in This conference. Thank program.

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Cambium Networks (CMBM) 3 Nov 222022 Q3 Earnings call transcript