Cambium Networks Corporation CMBM reported mixed third-quarter 2024 results, with the bottom line beating the Zacks Consensus Estimate but the top line missing the same. The leading wireless solutions provider recorded year-over-year marginal revenue growth due to strength in the Enterprise segment.

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Lower Point-to-Point revenues due to weakness in defense vertical affected the top line. Healthy growth in free cash flow was a positive.

CMBM’s Net Income

On a GAAP basis, the company reported a net loss of $9.7 million or 34 cents per share compared with a net loss of $26.2 million or 95 cents per share a year ago. Lower operating expenses and top-line improvement led to the narrower loss.

Non-GAAP net loss was $3.8 million or 14 cents per share compared with a net loss of $12 million or 44 cents per share in the year-ago quarter. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 17 cents per share.

Cambium Networks Corporation Price, Consensus and EPS Surprise

Cambium Networks Corporation price-consensus-eps-surprise-chart | Cambium Networks Corporation Quote

CMBM’s Revenues

Quarterly net sales improved marginally to $43.7 million from $43 million in the year-ago quarter. Despite growth in the Enterprise segment, net sales decline in the Point-to-Multi-Point (PMP) and Point-to-Point (PTP) businesses hurt the top line. The top line missed the consensus estimate of $45 million.

Global defense spending for communications, government spending on broadband initiatives and fixed wireless adoption from tier-2 and tier-3 service providers were key growth drivers.

By product category, revenues from PMP were $18 million compared with $23.6 million a year ago. Revenues from this segment fell short of our estimate of $20 million.

Revenues from the PTP business were down to $9.3 million from $15.8 million in the year-ago quarter, owing to weakness in defense vertical. Net sales missed our estimate of $14.3 million. Revenues from the Enterprise business witnessed a sharp improvement to $15.2 million from $2.5 million in the year-ago quarter.

Region-wise, revenues from North America increased to $21.3 million from $17.8 million in the year-ago quarter. Net sales in the EMEA region declined to $12.2 million from $14.3 million. Revenues from Asia Pacific fell to $4.3 million from $5.3 million in the year-earlier quarter. Revenues from the Caribbean and Latin America region rose to $5.9 million from $5.7 million.

CMBM’s Other Details

Non-GAAP gross profit was $18.5 million for a corresponding margin of 42.3% compared with respective figures of $11.9 million and 27.7% in the year-ago quarter. The improvement was primarily driven by lower inventory reserve charges. Non-GAAP operating loss was $3.6 million compared with an operating loss of $15.5 million in the prior-year quarter.