Cambium Networks Corporation ( CMBM Quick Quote CMBM - Free Report) reported relatively modest second-quarter 2022 results, with the bottom line beating the Zacks Consensus but the top line missing the same. The company expects to strengthen its technology roadmap and strategy to continue its growth momentum. Net Income
On a GAAP basis, net income in the June quarter was $2.3 million or 8 cents per share compared with $11.5 million or 40 cents per share in the prior-year quarter. The year-over-year decline was primarily attributable to top-line contraction owing to global supply-chain constraints and lower shipments due to component shortage.
Non-GAAP net income came in at $5 million or 18 cents per share compared with $12.9 million or 45 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents.
Quarterly revenues decreased to $69.3 million from $92.7 million in the year-ago quarter. The company was affected by shipments of its products during the first two months of the quarter because of Covid-19 lockdowns in China. The top line missed the consensus estimate of $71 million.
By product category, quarterly revenues at Point-to-Multi-Point came in at $28.3 million compared with $59.8 million a year ago. This was due to continued sluggishness for legacy PMP 450 products from service providers. Point-to-Point revenues increased to $15.7 million from $14.1 million due to higher shipments for PTP products using unlicensed frequencies. Revenues at Wi-Fi increased to $24 million from $18.3 million.
Non-GAAP gross profit decreased to $33.9 million from $46.3 million for respective margins of 48.9% and 50%, owing to lower revenues and higher freight and distribution costs caused by expedited shipping. Total operating expenses were $30.8 million compared with $31.8 million in the prior-year quarter. Non-GAAP operating income fell to $6.3 million from $17.5 million for respective margins of 9.1% and 18.9%. Adjusted EBITDA totaled $7.8 million compared with $18.4 million a year ago, for respective margins of 11.3% and 19.9%.
Cash Flow & Liquidity
During the quarter, Cambium generated $10 million from operating activities compared with $20.1 million in the prior-year period. As of Jun 30, 2022, the company had a $45.9 million cash balance with $25.7 million of long-term debt.
Cambium has provided outlook for the third quarter and full-year 2022. For the ongoing quarter, revenues are expected to be in the range of $ 72-$76 million. Non-GAAP earnings are anticipated to be in the band of $4.5-$5.8 million or 16-20 cents per share. Non-GAAP operating income is projected between $6.1 million and $7.8 million, while adjusted EBITDA is likely to be in the range of $7-$8.7 million with a corresponding margin between 9.8% and 11.5%.
For 2022, revenues are expected to be in the range of $280-$300 million. Non-GAAP earnings is anticipated to be in the band of $13.1-$25.1 million or 46-89 cents per share. Adjusted EBITDA margin is expected to be between 7.8% and 12.5%. Zacks Rank & Stocks to Consider
Cambium currently carries a Zacks Rank #3 (Hold). You can see
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