Cambium Networks lowers Q4 revenue view to $40M from $45M-$50M

The outlook for Q4 net loss and loss per share are expected to be below the low end of the previous non-GAAP range of (27c)-(14c). Consensus is for Q4 revenue $47.22M. Cambium Networks announced preliminary revenues for the Q4. While the company shipped $51M in product revenues during the quarter, this was offset in part by an $11M reduction to revenues as the result of incentives provided to distributors during the fourth quarter of 2023, offering aggressive Enterprise product discounts to clear excess channel inventories. The company records revenues from sell-in to distributors. Point-of-sale revenues-representing the sales of Cambium’s products out of the distribution channel as reported by Cambium’s distributors-are significantly higher for the Q4 than Cambium’s reported revenues, indicating a continued decrease in channel inventories. The gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves. Cash is expected to be approximately $18M; and while the company did negotiate new interim debt covenants during Q4, it did not draw on any of its $45M revolving credit line with Bank of America during the Q4.