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Water Tower Research

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.

Research from Water Tower Research

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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