Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Cambium Networks' Fourth Quarter and Full Year 2022 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. yourself question limit question. one Please Instructions] to and one follow-up [Operator you. Thank

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

Peter Schuman

you, this has by CFO call financial Andrew results today's us call for for CEO; and The fourth thank results and commentary call. investor all Welcome, referenced and of Bronstein, X-K Bhatnagar, the on on conference and accessible CFO, for those our to website joining are and quarter XXXX here Form Cambium Networks Atul Thank joining year full welcome page Amy. are webcast. and press financial the the been on and our release SEC. today you a with our press submitted release President

made prior to in were revisions no periods current These expenses operating classifications the to revisions within conform impact period. had the in income. to operating Certain

be at A will today’s our also remarks call. this on of page copy prepared conclusion available investor of the

today’s reminder, company’s outlook a cause to the during based statements uncertainties performance. These Risks and contain expected on and differ about remarks, are will results assumptions. made As could expectations, statements and forecasts, forward-looking including actual those current materially. Q&A,

to not required new information, or future any by as any results as result expectations of Networks date to whether actual a or statements does or in law, Cambium’s any of Cambium developments, to the Except conform update forward-looking after obligation undertake make revise reason otherwise. for statements this changes these presentation, to

financial statement press full list in factors We to release. our outlook. the listeners Networks results the in encourage to included not Cambium review risk policy today’s reiterate is safe harbor It of financial

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

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

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

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

Atul Bhatnagar

million of the our increasing quarter, Thank our of you, $XX.X outlook growth in high-end of revenues Peter. Cambium between with quarter the ahead sequentially, million fourth $XX to continued of million, QX X% $XX XXXX call. during announced

year with with the near sequential remained growth strong, for a North solutions. margin to the of had the outlook, exceeding a the major We Point-to-Multi-Point, categories growth high-end strong our and gross finish high-end of all in of XX.X%, EPS outlook. the PMP Profitability of America, product $X.XX, in and

enterprise normalized results QX million a in breaking $X switching that incremental an returned revenues, included record After to XXXX. QX rate as our expected, run XXXX during business in

is XX% forecast. of grew the million, business to original For high-end Enterprise full year $XXX.X of after full XXXX, during our This XXXX. our exceeding year XX% growth

Enterprise approximately time to about XXXX. new at XX,XXX Wi-Fi Wi-Fi, continue gain higher X,XXX share from grown of growth customers with mid-XXXX cloud-based initial and innovate market software solutions. XX-XX%, from with of much at cumulative IPO, be to in to For business continue base, for our globally. growth We've XXXX, we will Enterprise forecast our as the switching, a QX And of we

products, growth broadband of QX deployments of an Fixed business cnWave during for in cnWave solutions We high-performance XXXX introduction which acceleration XG delivers with products and are next of products, now price PMP of industry at ramp PMP the leading disruptive GHz GHz X including the GHz performance. the start wave the gigabit the wireless new of XX our our XX fixed

of FCC use for Final approval around mid-year GHz XXXX. the outdoor X spectrum expected is

FCC Licensing for networks. Authority Special (STA) However, the already Temporary proof-of-concept approving has started

results across PMP our gigabit products revenues year-over-year, legacy fourth are the the as the lines, quarter XXX from increased move XXXX, XX% of revenues technologies. sequentially looking to business service decreased to Turning beginning at our PMP and to providers XX% product new our

of cnWave an see technology scale, deploy the XX for cable and and as GHz efficiency advantage gaining of with an bandwidth, did of We providers the of solutions, multi-gig take at networks. growth low-latency, to hybrid-fiber understanding our are how service benefits multi-gigabit acceleration to

increased Q North during Federal mission-critical in America, improving The growth as sequentially, using a revenues PTP and technology Cambium's well XX% XXX while XXXX, Wireless higher due shipments to Defense Business EMEA, as over-year healthy PTP business our in Fixed XX% CALA, Broadband Communications. year for for

Defense. supply PTP selected Programs the Cambium of to XX defense products of our has for been Department to Record (POR) over key

continued during XXXX. shipments We defense expect strong

for decreasing business higher million by while record million revenues XXXX, XX% during year-over-year. $XX.X $X.X previously sequentially, the our catch-up XX% expected, declined $X.X by mentioned As Enterprise shipments switching, included of or QX million after which or

by year-over-year X for in our Wi-Fi The driven growth and increased and SaaS our switching revenues solutions. demand was XE growth solutions,

million, defense record our year, time for $XXX PTP in to our year breaking strength XXXX the partially by prior $XXX.X while For declined growth XX% of business. driven revenues year, for the XXXX, million grew our by the a XX% business full decline to PMP offset the the increasing XX% XX% year which XXXX our business revenues Enterprise which first compared from decreased due was XXXX, threshold The history, of Cambium’s products, Federal full had the from of XXXX. the

represent and of represent total will PTP It the compared remaining revenues our S-Curves, ride to In the the year company of Enterprise for businesses calendar is our anticipate long-term, of PMP XX%. XXXX, will Enterprise revenues XXXX. XX% as growth during represented that notable each business approximately XX% XX% our we new revenues while we the

as of by to modest the the do the ramp business, the well We second gigahertz the product continued year, XX gigahertz in and momentum XXX and FCC’s the solutions for X PMP X solutions, lines. driven cnWave recently and gigahertz in revenue as growth upon gigahertz drive XX expected several and PMP millimeter XX wave to foresee product gigahertz ePMP brought XX and half dollar return approval, gigahertz for have new growth both new the of Both products during gigahertz deals. multi-million X

City and deliver with and access of for management and breadth order was product our notable some as In an selected a North Salt deployment. placed at single XX wins America, gigahertz Cambium for platform. Lake cnWave Looking portfolio a part connectivity new city customer smart backhaul ability to developments.

third-largest system provider the United Cambium’s introduced of a CBRS connectivity. of part assets the utilizes division partner, fiber The gigahertz service for in for new offering service private solution A through as our network subscribers, million and States, Internet cable customers cnWave to between FutureTech. integration business television multi-gigabit XX the serving fit X.X new

We XX have so XX offers much had a network already large during than a to operator from XX of deployed were gigahertz build-out. connected communities order gigabit ownership Canadian Alberta, for lower cost products attracted for solutions XX a a speeds our XXXX. a They They communities in MCSnet, goal it as fiber. of far with at total in gigahertz gigahertz XX

business of Europe, we Africa gestation. initial and Middle healthy In example larger are an our after for EMEA, are period enterprise an business we continued region, the resurgence XX have seeing is This and East, GHz where of our demand a winning to in projects.

of for Cambium XX,XXX fiber goal cost outdoor and XXXX. Isizwe from households connecting model aims customer network Africa, number to Wi-Fi our homes up consumer. with to Isizwe, in the X,XXX a had win for to XXX Mbps disruptive with its of XXXX a December a increase South operator in with connected in a

XXX region, Asia rural software. is to NaaS Sumatra, is cnMaestro the win for APAC and Pacific region multi-year expect larger of we in successful Indonesia. enable first Network-as-a-Service, This addition order, broadband our In first volume fixed and homes order our wireless agreement. in we cloud this landed a Upon our to ePMP deployment connectivity includes XXXX Wi-Fi access. This X in first for the NaaS

And demonstrate Wi-Fi CALA infrastructure, cnMatrix wireless area in Belo first of Brazil, Sao in the and partnered Qualcomm, outdoor The the an featured band Agency, outdoor switches, GHz Paulo. National X Latin we Cambium’s fixed access connection Telecommunications region, America, savvy of the in collaboration XE and with points, use for Anatel, to Telium, cnMaestro in X the neighborhood Caribbean in software. the with wireless X Campo XXXX ePMP management and GHz X cloud and

to fixed for demonstrate available to of sharing months December no Coordination, interference performance, for the surrounding ensure in became two Xrd, point-to-point speed, Automated The the use existing region, The demo visitors platform and was AFC, reliability. that and spectrum with included Frequency on area. systems starting its there the overall that demo in

update. introductions to since quarterly Turning product upcoming previous our

the and the delivery XX of new is non-line-of-sight Gigabits rates FCC to to enables network MU-MIMO, with future the availability MHz subscribers. over featuring X capacity with X GHz gigabit spectrum solutions and continues push ePMP about affordable XXXX awaits XXX new the enable with our envelope to up X excited of also channels, edge approval, data industry select and to of While the Cambium the of to GHz

providers especially which affordability The due market our of ahead space, and to in of other alternatives is the compared approval will its and the ePMP XXXX market from we high to transformative expect spectrum. market, product, X service performance the a competition powerful the to penetrate take FCC’s share GHz in

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

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

reach customers world. into continued the around to expand new We our

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

Andrew Bronstein

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

which switching included record solutions and catch-up quarters. 'XX, for revenues products increased revenues $X The On GHz as of result while primarily a due a PMP a previous defense the were million after in higher our products, shortages chain in QX in million. basis cnWave by were increase and of a an higher sequential revenues to revenues ePMP XX 'XX, PTP for $X.X supply enterprise QX products, result decreased

XG cnWave full $XX.X declined due X XXXX to For to million million solutions. PMP $XX.X or The which $XXX.X revenues, lower the Fixed generation the and or transitions million, full decrease of revenues compared to XXXX. result year to by is compared year a next XX product XXXX, XX% of XX%, gigahertz decreased the gigahertz by

of million, We had our by or revenues compared $XX.X which revenues million, increased to XX% $X.X to an year due demand XXXX. to $XX.X grew of during record strong PTP enterprise XXXX, $XXX.X improvement or XX% full for million compared by products. our million defense XXXX, to And

gross Moving margin. to our

XXX XX.X% by of XXXX. higher volumes our higher Our and margin to year-over-year increasing a better non-GAAP margin enterprise result freight gross basis the anticipated, gross of lower and and points non-GAAP compared PTP mix of was in margin than increase QX was costs. products The greater

revenues, was component quarter-over-quarter products, basis, in higher margin of a QX mix expected XXX by The inventory lower higher in PMP higher a compared and switching lower XXXX in decline result was sequential and gross a revenues non-GAAP lower margin PTP enterprise non-GAAP as to part basis gross by On costs. margin of QXXXXX. offset points the

higher of due In million dollars enterprise due to year products, by $XX.X the of XXXX, and sequentially, a mostly and compared to shipping and and million higher higher $X.X mix costs by PTP revenues, by in costs, to the part gross volumes improved result prior inflation. of profit our QX offset increased $XXX,XXX non-GAAP lower increased component

product higher For non-GAAP XXXX, year enterprise by mix XX.X% PTP XXX basis gross to of margin XX.X%, XXXX, the due lines. and full margin points for our compared to to improved improved an

expenses, an non-GAAP stood annual of goal Our on $XXX,XXX Non-GAAP to term prior the variable to primarily compared and headcount, by to operating at target remains revenues. and XXXX, decreased to including higher wages, when higher a XXXX costs due basis. by amortization, margin XX% in around and offset or XX.X% remained sales trade controls QX tight consistent QX flat. $XX.X longer lower gross million, marketing related compared XX% of expenses operating while in was to travel decrease R&D and period year shows, compensation and The

business, controls. and development compared and When while to sales a because expenses accelerators to by XXXX, higher QX and and wages result operating tight costs sales due trade increased enterprise staffing new to work expenditures, increased Quarter-over-quarter on of approximately our related related non-GAAP cost increased to and expenses increased higher $XXX,XXX. travel G&A decreased of primarily R&D as show marketing products,

operating XXXX reflect offset $X.X to by year $XXX.X million, non-GAAP stood $XXX.X For million compared due non-GAAP lower million the The full expenses XXXX, during XXXX. expenses inflation. for by less and wages to decreased higher variable compensation, operating at

We will continue strong our cost to controls. maintain

XXXX and in from for QX during down was Non XX.X%, of from QX GAAP operating X.X% revenues XXXX QX XX. margin XX% up

For the reflecting revenues. scale full lower margin XXXX, gross despite operating in profit XX.X% XXXX, compared our GAAP resulting mix fewer of XX.X% year in an was primarily less dollars, revenues improved non and to

$X.XX share, diluted share, or $XX.X or compared per QX QX our QX non-GAAP of XX million diluted per previous net above between for share outlook $X.X for Non-GAAP income to XX $X.XX $XX.X and to per during share cents cents million cents $X.XX net per diluted of $X.XX XXXX. diluted was and $X.XX income or

to The was net dollars, of expenses. quarter’s was lower sales income higher period the year net to higher results due higher prior non-GAAP gross a while marketing prior and compared result primarily to compared the primarily income profit

million year to $XX.X $X.X XXXX. or million income XXXX QX for diluted revenues For million million or per of revenues EBITDA diluted $X.XX was QX $XX.X XX.X% for non-GAAP compared million QX or was in XXXX, or $XX.X and share, of Adjusted compared the XX.X% of to for full revenues, share net $X.XX X.X% compared XXXX, $XX.X XXXX. or to per

XX.X% XXXX. year EBITDA adjusted The year compared million was revenues million $XX.X the of full or or revenues, to XX.X% $XX.X of XXXX for full

of Our our operating target to of XX% model consistently committed our to adjusted remains solid. We remain XX% driving long-term revenues. EBITDA to

QX Now million for to $X.X was million QX on to moving by XXXX, and Cash XXXX, flow. for activities QX $X.X and cash XXXX. compares $X.X provided for operating million

products cash supply of we negatively inventories to our for and as a was advantage receivables growth flow anticipated as result new Our take increased we impacted and and of materials revenues. opportunities of increased the business, to support chain accounts higher

the turning Balance to Now Sheet.

$XX.X cash XXXX, and sequential XXXX. million QX December revenues reflects XX, increase totaled an on capital. primarily in of million in Our $X.X changes The cash from as increase collections of working higher

were million take in inventories continued of net advantage Our chain increased increasing in because $XX.X our XXXX. QX QX higher an by sequentially $XX.X grow inventories while from million of opportunities. of XXXX we $X.X to approximately and million supply increase Inventories year-over-year, business as

and The the calendar for during higher increased level of the of inventories products reflects year anticipated ramp PMP demand half of Federal products, second XXXX. Enterprise solutions, new

summary, quarter In than fourth the played better anticipated. out

PMP sequentially. predicted, grew As our business

margin gross strong. remained Our

to chain continue in improvement see supply environment. We our

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

achieving gain During target scale, significant improve operational and long-term model. operating our to XXXX, efficiency, towards progress expect make we

expected, and continues As areas chain products, there pre-COVID improve, still levels. while supply certain the in are component longer to as compared to shortages lead-times of

Cambium or not acquisitions, include potential financial outlook. year financial legal the transactions, other XXXX outlook Networks' first future of pending any the possible impact full financial matters, and Moving to transactions. quarter does

world as remains economies, our to XX% between seasonality visibility expected XXXX current outlook financial XX% in and $XX to XX% to of business slowing in business approximately sequentially, while part decrease of PMP strong. representing follows; to is between and growth in be defense QX our Considering revenues to million, our as year-over-year, our $XX a of due PTP X% today,

million; XX.X%; Non-GAAP income between gross non-GAAP million. expenses margin non-GAAP between to to XX.X% $X $X.X million between million $XX.X to operating and operating $XX.X

million non-GAAP of net to net approximately share between between million income expense, $X.XX diluted net $X.X to per $X.X and $X.XX. or income Interest $XXX,XXX,

A average approximately to approximately XX.X% rate X.X% shares between $X.X million EBITDA of non-GAAP adjusted to weighted Adjusted XX% and million XX.X%. $XX; to and tax XX.X effective income margins EBITDA between outstanding. diluted

interest expected follows; and requirements paydown cash to million. approximately between CapEx be debt to Cash as $X of are $XXX,XXX, $XXX,XXX, million of of of $X

Full expected year to is XXXX financial be as follows. outlook

approximately net Non-GAAP $X.XX. income to XX% and growth. million between or and XX%. million, net of share of diluted gross $XXX income million XX% Non-GAAP per $XX.X between margin $XX.X We $X.XX $XXX between expect representing approximately revenues to million

between labs for along mainly year, and expansion products. costs software with with XX%. to margin to in be by driven an million, million new connection equipment, EBITDA in XX.X% CapEx $XX R&D approximately $XX to And Adjusted the our

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

Atul Bhatnagar

quarter cnWave delivered increased growth by strong of PMP with the cnWave, fixed solutions. new Fixed, solid X a results product GHz of business, a launch XX We driven and excellent revenues, XX PMP GHz introductions, a and sheet, our significant and XG to for profitability, balance wireless GHz affordable return

and by our wireless onboarding of Our Enterprise products, XE, and switching increased X large savvy strong, managed of excellent and providers. business new remains service an offering solutions led Software-as-a-Service Wi-Fi

expect scalability has lower We networks. during between grow wireless XX% world total wireless ease of calendar and providing Network as deploys Cambium and cost the of to fabric broadband Enterprise The integrated a year next-generation reality, high-performance the become ONE XX% business customers ownership XXXX. deployment, networks, of

resilient. During our business costs, products made our invest scale benefit future on We remain innovative focused will operations, XXXX, in diversified to operating edge, improving and to technology more managing we our our judiciously continuing expect and results. maintain our increased

wireless Fixed products, Cambium our gigahertz, to will our continue look markets products to cnWave and XX upcoming fiber wave expand we As gigahertz broadband XG technology, X and market. in millimeter the XXXX, fixed propel

Units Enterprise us Our defense And business Managed Providers Multi-Dwelling strong business will has issue. and our broaden expected for become into a global as to security and position Service continue our reach strengthen growing, growth. is continued national and

add our more offerings security, our functionality platform. cnMaestro into services and and software flagship will features, We and expand even

eye with now keen graduated just customer products an a Our confidence. our network focus automation. how through experience building customers mesh will extensive that delivering that to from applications and and broadband exceptional our solutions solutions has radios brings delight customer on be want, Cambium keeping on our

Given to support country appreciation our customers half my ones of the calendar contributing growth for citizens unfolding connectivity Cambium for to resilience last second to broadband the I’d during hardest the humanitarian XXXX. crisis and loved like week, workers show wireless the partners, relief returned to in in is the in as Turkey employees, for hit solutions areas. and their we

remarks. This concludes prepared our

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

Operator

James. We call from [Operator with your Raymond for comes first Simon And will questions. the our now Leopold open instructions] question

Your line is open.

Simon Leopold

for the Thanks question. taking

to think about wanted view just roughly XX% talked term? that or a but mix PMP, Atul, enterprise the I've were clarification. what you've I was XXXX follow-up. and I And Wi-Fi your PTP, the being First, XX% then a timeframe remarks, knock thinking prepared out quick sure In I longer XX% targets, you about something whether those wasn't got or

Atul Bhatnagar

of the Simon. Thanks, two And is long-term the Cambium us of a gigabit resurgence are That's products three is to foundation timeframe. connectivity, wave, millimeter especially, innovations with for long-term PMP very Yes. new model model. key XG. with doing we a year Generally

confidence will probably So, PMP in PTP just have XX%. see model we that enterprise tells the equal, and you you the that about and long-term

Simon Leopold

I guess, they providing government Thanks. process you more, going are problem? funds a where in Equity, thought trying bit to think I'm with lobbying of a terms get if or out build customers. Deployment are correctly, NTIA, to and I WISP question the get about And better that underserved. service little we tell that the government competition some is Broadband looked where us BEAD, And on I'm association risks solving funding I at this the WISP the to Access, maybe guess around, them what's unserved that is a areas the it understanding, some I guess, considered I controversy WISP little bit or and And could trending understanding Program then a if around just be is the there's pay there impression your

Atul Bhatnagar

Sure.

about customers is me And for two actually total let Opportunity X-gigahertz address Rural for of which Fund Simon, that as well million. as deploy both $XXX RDOF So plan connectivity. on gigabit to they just of The BEAD. RDOF approved our Digital

critical mission the stuff the of work, is giving all in CBRS that connectivity. So art X-gigahertz

BEAD different initiative, America within the early and Fund it's be this affordable when that probably world, we think having the mission is and provide the I as Fund the infrastructure infrastructure, clear happen. we results II. as dissemination interactions In will very we are I I all our a said, And CAF it the folks, of said, BEAD very has America will provided federal XX critical Connect CAF Connect will II, in wireless the the

the So be it will terrains using results very the many we are installations where are successfully success also and deployed. of of prevail fiber in tough of pretty confident the Cambium in that government all cannot customers actually and and RDOF some localities fiber economics

reasons, So I but see probably also you taking think adopted, for will little BEAD the is practical many initiative RDOF a earlier.

Simon Leopold

that. for you Thank

Operator

our moment One comes with Chatterjee next from question. for And you JPMorgan. our question Thank Samik next

Your line open. is

Angela Jin

ask Hi. Jin on Samik This for is the question customer one Good Angela I just Chatterjee. afternoon. on to wanted verticals.

hacve So in are in traditional you span vertical, that any of you we all the impacting doesn't verticals mature macro education, Are into health enterprise -- the and heading the one hospitality, from then serve can care follow-up. I players? then budgets sort XXXX? many enterprise And pause provider really the seeing service providers their seeing side, have on and

Atul Bhatnagar

Angela. Thanks, Sure.

the first. provider address me service Let

are to Cambium create used for did moving has the the service actually So That's in what gigabit. they we new completely two next years. architecture gen timeframe provider, last the architectures to pandemic

quite are is in gigahertz bit. to And going speed, So standards, funnel. a we activity They seeing someone selling the of not our we're absolutely But XG that. if with have that POCs what if customers, significant you're XX even is you gigabit number number you flow connectivity, right. XX architecture finding increase adopt have of are last generation

have we good are And And message, to for generation for next So there. that's the growth platform architecture. the future you seeing the have the key Cambium.

has. are growth. year-over-year and why and those we posting the XX% focus key plus challenge to of manage service on and Cambium they that's type our hospitality, education providers value differentiations they either Enterprise are value we two And In economics, is deployment,

seeing message slowdown very have And any been Do architecture. XE even So there. a Wi key growth new not performance have driving what's right again, But network there, follow-up? have now. S-curves you our Angela, products the you high growth to Fi X we and a are are has that

Angela Jin

Yeah. Yeah.

moving So guess, I follow-up. to my

on ramp India, maybe walk and the XG given your in on to there. you So your in What could outs just is in going region? build growth Investments are India that that potential and exposure thoughts

Atul Bhatnagar

So year year I Angela, it of is XG, we still have it for will X.X settle engaged, good India's a XX understanding we very to are dust think will And to the take frequency or I a what so. down, think, gigahertz because very take. their

XXX In fixed XXXX general, XXX% go that's markets five, to billion, six is X.X to XG to addressable years. those, million increase going between, XXXX in from

that India, key a take but very we engage XX solid including gigahertz in year market, to might be XX So think months, market. will but gestation good that that

Angela Jin

Got it. Thank you.

Atul Bhatnagar

Thanks, Angela.

Operator

with Thank ROTH. next you, comes from question for question. Scott Searle And one our next our moment

Your open. line is

Scott Searle

a I'm wondering, its days And follow-up? up. the in with XX completed ramp was then early the opportunities to wondering out questions. Thanks add lot could afternoon. I of starting us the To a and door. as of for XX sure, But heard to seeing I'm go of idea gig taking was gig, gig if going the give I just XX And of other magnitude the well. contribution fourth newer products? products what a some if sort Good you you're of the I it Hi. new are And number. know not quarter.

Atul Bhatnagar

Thanks, Scott. Sure.

one-by-one. go me Let

have So we dollars. XX couple now mentioned, gigahertz have we of we million as

do the cross new You revenue XXX,XXX and in I you revenue? technology, look know, for you half million. million three when cross do do pillars. in every you cross When When

many crossing we customers the subscribers. gigahertz that bring What crossed means So Cambium then we are barrier, new every then we XXX,XXX and is subscriber to subscriber million. XX shows, cycle. XXXX barriers, XXXX we crossed barriers, North as platform because deploying are XX,XXX year they basically a first now four it's see beginning in And history

where last, we quarters scaling scaling, for and of talked are happened. now gestation, XX using And Connectivity. POC is many Wi has continue. key think Fi, our Providers So message four Wi Enterprises, and Surveillance, it are are for Wireless And will this Service about cycle Internet Outdoor the particularly the customers I we Public the Municipalities three, see acceleration which we Campus Fi, with, Logistics, Video

are These where segments expanding. the XX is

pretty good about So that. feel

as our customers felt As are scale. to beginning we we now as exit QX. We

will XX Tier not Xs. as So that's five much Tier the cases because to XX. gigahertz unlicensed of in is adopted many customers. XX and in will and by be XX sizes Xs But deal times, probably have very frequency it gigahertz a many it's

moving. and XX So at lots And be customers be what XX? And XX XX two will XXXXs that size Whereas fast of you about on is only you look see have XXXX, just but or POCs, between deal will and now. much tells IF right XX three. larger, be deals, if you will how worldwide, X-X, XX Cambium POCs, of XX production eight lots hundreds, them. have are of probably we we in the

customers is just not times deal three months, sizes one few XX years, our many and many, much, mentioned, larger, last I years. two in the quarters, much their also, four duration And production So have increased, POCs as in last have is or to increased.

believe POCs me touch signal. not customers To final green briefly XX turning very they're yet the support not And are many very X – let the the on gigahertz production, of X But now cost shipped final of on many that is into given will has FCC the We towers though POCs, QX, deployment and that, approved products, gigahertz. our XX expensive.

So they are deploying X gigahertz.

version, ePMP XXXX, is as And we which the X them the also some using mentioned. of gigahertz are

PMP and results two, For XX%, are scale three state So all by forward XXXX all and we these probably half. right time PMP will many second that's distribution. We and we of when more XX%, that years. is these fast why believe the saying areas production enter the steady are they growing see be will you expansion the XX% Because enterprise PTP

Scott Searle

certification before for production. on And approval for go SEC Got for helpful. ASC, a and gigahertz the I X more to could if follow-up Very restore just waiting we're into the commercial I you. from the front,

So going the XXXX, of mind, of constitute this on success. what market that? the lot would you're up on if ramp of And And wondering, I is X an global could year? a US frequencies. markets with with The we allocation to and the how and about opportunity. into international that how in going what's think as in regulatory success second this is I'm gigahertz approval half exiting thinking X been product kind And focus, big opportunity briefly be line, of certainly XXXX. the gigahertz terms the of US about But between of a just what's near-term kind of dissect

that And So I'm we next on wondering Thanks. front? couple the shape how should be you're over seeing years? thinking how that that about up

Atul Bhatnagar

question, Excellent Scott.

first all, X leading. States gigahertz So of is United

X X it see progressive countries I showed we is we other every frequency. Paulo, the think a is come I And is adopt think bandwagon. And is getting in ones in very like will established there's a noisy. and reason first country that on our observing authorities remarks, gigahertz gigahertz. that, Brazilian many But NFL, say, you capability, for well the just Brazil to prepared of work one with Sao we

big like happened. government deal. when clean you XXXX nothing two in has in decades, very megahertz So a that's ever spectrum, of, about there's gives Like this

a it's deal. So big

– the gigahertz performance cost lead and continue. gigahertz gigahertz our to X many advantage is and expand belief X waiting and are that particularly widths X advantage So to US will from for the

– an needed change. That's But gigahertz, to adjacency. go do it's gigahertz, XX to you when scale. And there's how comes before why gestation the needed. a six that's when gigahertz to Remember, why experience technological a They the it's know is it. it is the you XX

XXXX and volume years. it So that's ratchet introduced our XXXX in half second I ran gigahertz I up starting in that. is XXXX, been our we XXXX. X next is gigahertz with And X X the think Medusa the four five architecture it for emphasize and gigahertz always architecture, when this why early, still will has experience And or

feeling is are see that. long S-curve. because they in after why still for think XXXX I It's S-curve. new performance the excited, second customers can we magnitude. start, has very always I are it a a is but So of a different price because excited, X it That's getting legs our a call half And

Scott Searle

I'll back Great. the Thank you. in get queue.

Atul Bhatnagar

Scott. Thanks,

Operator

Suppiger And comes next next Thank from our Securities. One moment for Erik JMP with our you. question question.

Your open. line is

Erik Suppiger

for your Thanks market in around they then some when shipments taking point. bit up at fiber the X following much the enterprise or and a would of just how products, question XXXX? on of of little a you Yes. product hitting segments. in more will are comments the -- Wi-Fi if When side Wi-Fi this on think start secondly, contributor XE And those any meaningful and be your terms timing the

Atul Bhatnagar

All Yes. Thanks. right.

I has of as Cambium in X Wi-Fi all, of transition . shipments successfully. majority are X today very Wi-Fi happened and XE. our portfolio First of say would

So that gives almost was you indication, back this two well. a and played pretty months majority. good XX years And bet made has very a to we

beta. of fiber In are in timing, we terms

are the customers management. our things volume pane for is QX is us glass pulling of deployment, of Cambium known timeframe. And actually, of because ship ease one single will for We

government dollars that you going nice on be coming Cambium since are provide don’t saying, the are why to side solution. as a us they And well,

can wireless where plan take ease take our wireless of where over, is and focus deployment. fiber over, glass can fiber pane stops single to manage So on stops of

Erik Suppiger

the this Wi-Fi much shipping on X, the point? at Just are on quick you XE Wi-Fi real

Atul Bhatnagar

some, change outdoor XXXX. Yes, think But X. half now, would is so say think most I arena has will and it of Some. in but some. Wi-Fi XXXX Wi-Fi arena XE in that much indoor and second that probably I horsepower I the as But of

Erik Suppiger

Very good. you. Thank

Atul Bhatnagar

Thanks, Erik.

Operator

comes Woodruff. Thank question. question Essi William next Paul with moment our K. from next you. for our And One

is line open. Your

Paul Essi

sign I've question. a the you what year with questions Well, SaaS are now for Thank software is three answered. taking model? been But have a is my Yes. In them? of year, quick got contract the a of percent it software two within area, the one that you what my average, And couple ones. revenues year,

Atul Bhatnagar

Thanks Hi. for question. the Yes.

average, nature, So even of they percentage three, is both if revenue, three revenue, recurring of they're total deals. look five, on year, And as say those in most two but a at services year, that's together X% support our do software SaaS I about to some vary one and of revenue. our you total would type deals, X% year

Paul Essi

Okay.

to and noticed I because -- Okay, are wanted your deferred to just I starting build revenues

Atul Bhatnagar

Exactly.

Paul Essi

idea. -- get an

Atul Bhatnagar

Yes. why. That’s

Paul Essi

have two, grants companies specs year the the And they're concern question. the Okay. the or difficulty some Real providing? putting labor any issues? that other government's of second seen that expressed getting into be meeting in some briefly, you the Some have there might product of this out

Atul Bhatnagar

you Could be didn't Paul, understand specific? labor more I issue.

Paul Essi

issues Well, might – labor out – rolling installations, the, know, rolling they your you bottleneck? be the out with labor

Atul Bhatnagar

issues, We have we not no, and had on would products. XXXX labor I heard no, issues would say for least second little that. XXXX bit.XXXX,people in those first figured to we half heard our out say No, at work.wXXXX how then half not have I

Paul Essi

thank very much. you I have. Well, all Okay. That's

Atul Bhatnagar

Paul. Thanks,

Operator

Capital Thank Tim from our moment Markets. with next you. one next for question question. And Savageaux our comes Northland

Your line open. is

Tim Savageaux

afternoon. And good nice Hey, quarter.

discussing that to product terms fiber I a would in you've imagine wanted the would products go contrast of XX-gig, X-gigahertz So new positives lot been PMP, bucket. these in I that of

customers Some the funding from for government.

a you lot modest low-single guiding growth there, PMP there's very, of positives to appear know, XXXX. you Like, in digits, be to very So is maybe.

like your are of one QX, I of some on of decline products the short-term, seasonal of know get guess in even you then we off kind fall off and maybe a than but, kind recovery, quicker there's that's to contrast, hand, seeing I from how do we the fall target, know, longer-term to kind legacy need And expected to? that your something I confidence PMP is sight where is if to years the next mean, past year of of that. need sort line you assume growth now be in to enterprise be kind in, slowing. Is rates have in you Wi something or XXXX XX%, growth a of rate XX%, Fi few

Atul Bhatnagar

Yes, An excellent Tim, thank the you for question. question.

more Let into give this. insight me you

are As earlier, for said I the look know then dollar deals. I scaling. But technologies million I

speak, numbers with the even we subscribers. happening XX-gigahertz, networks as are conceiving, on XX,XXX I to be we of X,XXX even the some that's XX-gigahertz. think And are now to beginning

wirelessly, are that they these platforms truly So that that’s confidence that XX. deploying, the are confidence getting speed scaling, new us the fiber-like and not they're provide can gives customers

XXXX, XX have mentioned of XX I And about that earlier, is driven started just the billion. a route. we XG TAM wireless standards. market for is by – is And the fixed XG X.X

four between and have larger, a you be said, I – deploy. production, to will times year earlier, five paid deal on you a think XX, see what said are I The has money, contrast want and as period, XX is revenue the will total to license we XX the somebody far customers over now they will because XX POCs, three, difference as beginning scale. XX size, the be deal size this will frequency, to XX, I we are XX really

lifecycle is to wireless finish. start from five But still fixed the for years four broadband, to about

is percentile of So -- I XX, XX probably probably think experienced first then what XX we years. the are the XXXX, in describing what have half is XXXX. and this And last we we and

sense. life long, sharing So long, long seen on really technologies we we state with that are just how a in these have you have they based

market that our where are. teams realistic. the think Enterprise know we gestation three know that very sales know happens, confidence sizes. channels gives I So PMP are. very, that us years, Because We our XX-XX-XX where PTP next is and We strengths the the as and or

PMP excellent for especially are We channels, markets.

the this we we Fiber, beginning -- just the are to thing. next And confidence platforms. last did and same go just generation fiber post-COVID, keywords, So these through now deployed. will the the scaling, we're two excited scaling what that and they're years while get is focused being on

for enterprise took to Our million million, X X to $XX And X used It of are million learn, quarters scale, time years. of deploy. few we north cranking us be million, kind past now quarter.

customers them with learn So with scale. that's and closely what we do work

Andrew Bronstein

that the we'll this little quarter we give year-over-year a some half that in result year, it of and new a year coming color you back well, believe of the of double-digit the level as revenues year-over-year exiting how we will how a second be you half decline. we right success be PMP to there when that it with the will in to the continue, on as in you're the is define sequential market the PMP to into at year, more just that first getting will basis and In PMP. seasonality of And first bit look accelerate and define and and products XXXX. increases is quarter But with

Tim Savageaux

much. very Thanks

great was very much. Sorry. That color. Thanks

Atul Bhatnagar

Thanks, Tim.

Operator

Notter you. with One And question. moment question for Jefferies. next Thank our next the George from comes

open. Your line is

George Notter

you above or bit In little that you is looks any channel comments us or whether Thanks Could talked what average you it kind a like, now? very the just Hi, guys. past, about have of below much. where give was average. think guys on right inventory

Andrew Bronstein

Yeah.

higher course XX think the you what it's running enterprise when or it been little months inventory side the break on down, is the So I that past channel at bit a of the than over so.

as getting product Some to distributors. of improvements is and and a into bit shorter times little lead ability well of supply because that the in deliver chain the

the actually it's on distributors, a So of I as the getting of sign that's other our PMP slightly we're going enterprise of for higher the well. products And ready that's seeing our in some out what on think side, inventory direction. terms of distributors new

balanced that So, in I fashion. out think it's somewhat

George Notter

ask then to And also going guess I just it. was Got chain. I supply about

there. golden think from perspective? do mean, kind flowing think freely of are I manufacturing any products holdups it a or answered type seeing screw now big chain issues, you on still pretty you I you supply are

Atul Bhatnagar

in all The and George, manufacturing open subcontractors first of operating. are our the all sites

As I said, But is don't not chain yet supply improving. it's normalcy. think I

freight have it'd think is by large hiccups, improving. factories normalcy. Chinese still are New reach are fully And improved. for pre-COVID but and watch be I no think will the shortages are There Year, -- This mid-XXXX us and it even always XXXX year, continually something when logistics after I certain least things on carefully. at probably which mid parts, open, we

So, so good. far, so

George Notter

Thank you super. Great, very much.

Atul Bhatnagar

Thanks, George.

Operator

Searle question Thank Capital we Partners. have a with from you. Scott follow-up And ROTH

open. Your is line

Scott Searle

a dual quick looking solution just X-gig X-gigahertz I around quarter in at mode CBRS, you're second front. follow-up it Hey, on was the product. know the right. I thought, rolling

circumvent relates reliability funding. So some issues as it and it helps bead to you

with tracking what carriers still for is on on that and the in that's on that, Thanks. interest sure of progress at ISPs check that second least that make the other level seeing early quarter. wireless the dialogues to you're want Just front? And

Atul Bhatnagar

Yeah.

be CBRS. five product. by X chips and very are beginning, products, two combo different CBRS is driven the completely of So X-gigahertz Scott, product X-gigahertz and six different separate the the much In availability. frequency, will a and the X-gigahertz

So and our on I chips think this experience on focus much then very on side And year, gain of with experience. all the also you availability customers, combo will based see the based and the us that.

And away, So most our different completely combo either five think are six. I don't a is deploying customers think I or product. part because right of CBRS right now come the will

Scott Searle

Thank you. Right.

Atul Bhatnagar

Scott. Thanks,

Operator

Oppenheimer. our question from And Thank you. comes Timothy Horan with next

open. Your line is

Timothy Horan

Thanks, guys.

guess that commentary in a So products Thanks. expecting new you the had seven based what bit or have almost Can services, coming talk a five, this time six, out new products many I little should here? we coming new are certain growth you here or be I about, XXXX-XXXX last impact you step have now. and major on was? And up and all mean, material the you out

Atul Bhatnagar

Yeah. Thanks, Tim.

a gestation. gigahertz look months are about, also beginning now reaching something XX is when they're to introduced by almost about did lot just where you it customers deploy, is year So a scale. at that products, of it's them, point enter new And going point the to back, XX that gigahertz introduced we us, we if where is was they're gestation or actually while there that. to like now understand how so a XX back introduce scaling.

year say three we about is coming just which QX So new them so. or in use last back, year months stuff, -- platform, X-gigahertz, we were when while completely I a a or think new new some introduced now is which we year-and-half introduced the back of products,

for not these different have the waves. different we time. all on at over now this of deploy deploy the depending overlap regions. we resiliency, them are And the think these about the different different And deploy same frequency countries to and will gives think terrain, region, frequency because that's and what they’ll way They will I us time. are customers scaling network, as they So will is

with that, we different have now performances of use Tier XX Only Xs -- X-gigahertz We lot and frequency. Xs like license versus is X-gigahertz. a can and risk afford is them will so a are extension of is six different cost structures, working an Tier

as enterprise, in well going I XX-gigahertz and both west. explained, as as And municipalities is

So some what very a different wireless seeing them broad you're stay. from a little segments. to serving And each just key time fabric is of takes Cambium one

Timothy Horan

times. six understand, XXXX almost to Wi-Fi I same acceleration in eight the to the at trying I hitting I I'm know, You next it And cycle, put all but your they've with a know, adoption But thing they're addressed mean, all they're like the different next for all really time. same and XX but they're bunch all mouth, the been for XXXX. I the at a seem of words of see months. we hitting really XXXX. it does hitting whole reasons. should in not S-curve to like mean, in of feels kind like the -- and products, real six the And feel does It

Atul Bhatnagar

agree Yes, with Tim, I you.

X-gigahertz, mentioned, I That's statement. but from accurate for in we starting see XXXX of will the some all in XXXX, we investments think almost done benefit half, the second in an acceleration, as will example, you months. XX have last these we

Timothy Horan

Thank you

Andrew Bronstein

will lifecycle well. direction, the just go product that cycles its Our as terms other for in older well, products that as of the

just So mind. that keep in

Timothy Horan

being pretty early growth But things from be And should rate. to any it know up fair? give it's mean, do I that all Is guidance. equal, this -- have I year's

Andrew Bronstein

a months. next side the gone yet could PMP that are mean at and S-curves, over especially excited but our years out about the of analysis XX the we starting that are you like for through of we of level guidance -- volume when in you new look said, we the product having we that And for XX in business. XXXX really do look We the new level S-curve

Timothy Horan

the TAM we sense of any do And of X-gigahertz product? the have

Atul Bhatnagar

you that the is an was billion billion want extend churn easiest you Tim, $X probably this about – think X-gigahertz. the about five to TAM. way, is think And the X. a will about to about to the want way think The extension is the – $X That's I into it. of Yes, X-gigahertz multipoint this X-gigahertz point think and to way

Timothy Horan

you. Thank

Operator

this Vice the back turn Analyst no I'm at I for conference Schuman, Peter Industry time. questions to Relations & now like Investor showing to President, remarks. would further closing

Peter Schuman

Amy. you, Thank

XXX-XXX-XXXX XX on always will and Ross concludes QX meantime, Investor you meeting Securities questions presenting joining on March XXXX Conference. the Conference this our any Department at today's us with for In that contact the JMP Annual Thank Relations to arise. During Technology the call. you're with X Networks Cambium be March at at a welcome Investors and

Operator

quarterly earnings Ladies your you and participation. gentlemen, that concludes Thank call. for today's

off. log now may You

Cambium Networks (CMBM) 16 Feb 232022 Q4 Earnings call transcript