Research from Water Tower Research, Water Tower Research

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

Equity Research Firm

Equity Bottom-Up

<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