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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Cambium Networks (CMBM) reported 3Q24 earnings on November 7 that came in above consensus (loss of $0.14/share versus loss of $0.17/share), mainly due to solid gross margin (42.3%) on lower-than-expected revenue ($43.7 million versus $45.3 million).</li><li>The company continues to make progress working though excess inventory in the channel and expects to have this solved by the end of 2024.</li><li>CMBM continued to see a recovery in the enterprise market in 3Q24, while defense was slow as funds were allocated to ongoing war efforts rather than improved communications. </li></ul>

Cambium Networks (CMBM) reported 3Q24 earnings on November 7 that came in above consensus (loss of $0.14/share versus loss of $0.17/share), mainly due to solid gross margin (42.3%) on lower-than-expected revenue ($43.7 million versus $45.3 million).The company continues to make progress working though excess inventory in the channel and expects to have this solved by the end of 2024.CMBM continued to see a recovery in the enterprise market in 3Q24, while defense was slow as funds were allocated to ongoing war efforts rather than improved communications. 

Cambium Networks Corporation - 3Q24 Loss Lower than Expected

<ul><li>Cambium Networks (CMBM) reported earnings that came in below our (and consensus) expectations (a $0.25 loss versus a $0.21 loss) mainly due to unexpected E&amp;O (inventory) charges, which hit gross margin for 10.9 points.</li><li>Gross margin would have been 44.4%, but instead came in at 33.5%. Revenue came in slightly better than expected at $45.9 million.</li><li>The company continued to see a recovery in the enterprise market in 2Q24, with business up in all geographies, and growth in its Point-to-Multipoint (PMP) business. </li></ul>

Cambium Networks (CMBM) reported earnings that came in below our (and consensus) expectations (a $0.25 loss versus a $0.21 loss) mainly due to unexpected E&amp;O (inventory) charges, which hit gross margin for 10.9 points.Gross margin would have been 44.4%, but instead came in at 33.5%. Revenue came in slightly better than expected at $45.9 million.The company continued to see a recovery in the enterprise market in 2Q24, with business up in all geographies, and growth in its Point-to-Multipoint (PMP) business. 

Cambium Networks Corporation - CMBM: 2Q24 Revenue Beat but EPS Hit by Inventory Write-Down

<ul><li>Cambium Networks (CMBM) reported earnings on May 9 that came in below our expectations (we were the lowest on the Street), mainly due to a delay in FTC approval of 6 GHz spectrum.</li><li>This also hit gross margin, which came in at <span style="font-size: var(--content-font-size);">22.7%. Company expectations are for a better 2Q24 and 2H24, </span>but with continued challenges in inventory and the move to 6 GHz.</li><li>The company did see a recovery in the enterprise market in 1Q24, but not enough to offset the weakness in 6 GHz. The stock <span style="font-size: var(--content-font-size);">dropped 13% in the aftermarket.</span></li></ul>

Cambium Networks (CMBM) reported earnings on May 9 that came in below our expectations (we were the lowest on the Street), mainly due to a delay in FTC approval of 6 GHz spectrum.This also hit gross margin, which came in at 22.7%. Company expectations are for a better 2Q24 and 2H24, but with continued challenges in inventory and the move to 6 GHz.The company did see a recovery in the enterprise market in 1Q24, but not enough to offset the weakness in 6 GHz. The stock dropped 13% in the aftermarket.

Cambium Networks Corporation - 1Q24 Earnings Weak on 6 GHz Delay

<ul>
<li>Cambium Networks (CMBM) reported earnings on February 15 after its negative pre-announcement on January 18.</li>
<li>While the company hit the pre-announced revenue number at $40.2 million, the EPS loss of $0.95 was significantly below consensus of a loss of $0.39.</li>
<li>Enterprise weakness and continued discounting to move inventory were the main causes for the profit weakness (non-GAAP gross margin came in at -19.4%, historically this has been in the 47-50% range).</li>
</ul>


Cambium Networks (CMBM) reported earnings on February 15 after its negative pre-announcement on January 18.
While the company hit the pre-announced revenue number at $40.2 million, the EPS loss of $0.95 was significantly below consensus of a loss of $0.39.
Enterprise weakness and continued discounting to move inventory were the main causes for the profit weakness (non-GAAP gross margin came in at -19.4%, historically this has been in the 47-50% range).


Cambium Networks Corporation - 4Q23 Revenue as Pre-Announced

<ul><li>On January 18, 2024, Cambium preannounced that 4Q23 revenue would likely come in at $40 million, below its guidance of $45.0-50.0 million provided on November 2, 2023.</li><li>This is the third revenue miss in a row.</li><li>Cambium stated that the revenue miss was driven by $11 million in distributor incentives in 4Q23.</li></ul>

On January 18, 2024, Cambium preannounced that 4Q23 revenue would likely come in at $40 million, below its guidance of $45.0-50.0 million provided on November 2, 2023.This is the third revenue miss in a row.Cambium stated that the revenue miss was driven by $11 million in distributor incentives in 4Q23.

Cambium Networks Corporation - CFO Departure and 4Q23 Miss Driven by Distributor Incentives

United States

Cambium Networks Corporation provides wireless broadband networking infrastructure solutions. The Company offers wireless fabric, including intelligent radios, smart antennas, RF algorithms, wireless-aware switches, and network management software. Cambium Networks serves customers globally.

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Cambium Networks (CMBM US)

Cambium Networks Corporation - 3Q24 Loss Lower than Expected

The company continues to make progress working though excess inventory in the channel and expects to have this solved by the end of 2024.

Water Tower Research

Cambium Networks Corporation - CMBM: 2Q24 Revenue Beat but EPS Hit by Inventory Write-Down

Cambium Networks (CMBM) reported earnings that came in below our (and consensus) expectations (a $0.25 loss versus a $0.21 loss) mainly due to...

Water Tower Research

Cambium Networks Corporation - 1Q24 Earnings Weak on 6 GHz Delay

Cambium Networks (CMBM) reported earnings on May 9 that came in below our expectations (we were the lowest on the Street), mainly due to a delay in...

Water Tower Research

Cambium Networks Corporation - 4Q23 Revenue as Pre-Announced

While the company hit the pre-announced revenue number at $40.2 million, the EPS loss of $0.95 was significantly below consensus of a loss of $0.39.

Water Tower Research

Cambium Networks Corporation - CFO Departure and 4Q23 Miss Driven by Distributor Incentives

On January 18, 2024, Cambium preannounced that 4Q23 revenue would likely come in at $40 million, below its guidance of $45.0-50.0 million provided...

Water Tower Research

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