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Cambium (CMBM) Remains Poised to Benefit From Holistic Growth

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Cambium Networks Corporation (CMBM - Free Report) have been on a roll of late driven by improved market demand across its portfolio on the back of a flexible business model and solid cash flow. The company is well positioned to benefit from proprietary software and product ramp-up and has offered bullish guidance for 2021. Disciplined investments in wireless fabric, rural broadband solutions and improved relationships with partners are additional tailwinds.

Growth Drivers

Headquartered in Rolling Meadows, IL, Cambium operates as a wireless solutions provider, connecting people with a flexible network infrastructure. Backed by dynamic business fundamentals, the company has a broad portfolio of fixed wireless broadband and Wi-Fi networking solutions. The innovative offerings enable the creation of a unified wireless fabric that spans across multiple frequencies of Wi-Fi, managed centrally via the cloud. The company capitalizes on its cloud-based network management software that enables operators to seamlessly design, deploy and manage their networks from cloud-to-tower-to-edge. These streamlined operations minimize several network performance complexities with utmost agility.

Cambium also offers a variety of other network management tools, such as cnMaestro, XMS Cloud, cnHeat, cnArcher, to enhance ease of use and network performance. Its solutions have been particularly designed to function under harsh conditions while remaining aligned to demanding performance specifications required by various industries. These avant-garde solutions enhance economies of scale for network operators by supporting a large number of customer premise equipment per fixed wireless access point and reduce ongoing management costs through embedded software and device reliability. Despite challenging market conditions stemming from the COVID-19 pandemic, increased demand for wireless infrastructure projects owing to higher requirements for work-from-home connectivity solutions bolster Cambium’s robust business model.

The company is well poised to deliver a compelling combination of price, performance and spectrum efficiency. One of the major advantages of Cambium is its fixed wireless broadband networking infrastructure solutions, which are distinguished by embedded intelligence and scalability. Markedly, majority of its revenues are generated from PTP and PMP solutions. PTP solutions are connected to high-bandwidth wireline networks in a bid to transport wireless broadband backhaul to facilities. Meanwhile, PMP solutions are mainly used to backhaul video surveillance systems. The company believes that growth in data traffic is likely to be primarily driven by addition of applications and connected devices used for both enterprise and service provider use cases. Moreover, with rapid transition to Wi-Fi 6 solutions, Cambium witnessed major improvements in enterprise Wi-Fi solutions supported by improved field deployments. Its upcoming 5G 28 GHz millimeter wave products are expected to be launched in 2021, which are likely to boost its business operations in the global market against stiff competition from Ubiquiti Inc. (UI - Free Report) , Juniper Networks, Inc. (JNPR - Free Report) and NETGEAR, Inc. (NTGR - Free Report) .

Some of its competitive strengths are advanced RF signal algorithms that boost network performance with evolving technologies like noise filtering and frequency reuse and efficient wireless fabric that enables operators to strengthen their networks with incremental fixed wireless access points. Its cloud-based network management software acts as a major tailwind that simplifies the overall deployment process through hassle-free configuration and monitoring. Continued investments in wireless fabric and embedded software capabilities with expanded channel partner relationships are the cornerstones of its long-term growth across a diverse set of markets. The company intends to augment its geographical footprint by collaborating with major network operators, thereby driving its product adoption across various end markets. Amid rapid 5G shift, accretive investments in high-speed wireless networks are likely to position its portfolio to secure lucrative opportunities in the long run. Over the past few years, it has benefited from investments related to gigabit wireless solutions such as 60 GHz millimeter wave products and Wi-Fi 6. Markedly, the first phase of the Rural Digital Opportunity Fund is expected to boost the deployment of broadband service among the underserved communities and help bridge the digital gap over the next 10 years.

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