ROLLING MEADOWS, Ill. - Cambium Networks (NASDAQ:CMBM) Corporation (NASDAQ: CMBM), a global provider of wireless networking infrastructure solutions, disclosed today its preliminary revenue for the fourth quarter of 2023, which concluded on December 31, 2023. The company reported an anticipated revenue of approximately $40 million, falling short of its earlier forecast of $45-$50 million, as stated on November 2, 2023.
The shortfall in revenue is attributed to aggressive discounts offered to distributors to reduce excess inventory in the channel. Although Cambium shipped product revenues amounting to $51 million during the quarter, this was counterbalanced by an $11 million reduction due to these incentives. The company recognizes revenue based on sell-in to distributors, and despite the lower reported revenue, point-of-sale figures, which reflect sales from distributors to end users, were significantly higher, indicating a reduction in channel inventories.
Cambium also revised its expectations for the fourth quarter's net loss and loss per share, projecting them to fall below the previously provided GAAP and non-GAAP ranges. The gross margin is anticipated to be lower due to increased excess and obsolete inventory reserves. The company's cash position is expected to be around $18 million, and while Cambium negotiated new interim debt covenants in the fourth quarter, it did not utilize its $45 million revolving credit facility with Bank of America.
Looking ahead to the full year 2024, Cambium forecasts revenues to be in the range of $215 million to $245 million. Alongside these financial updates, Cambium announced the impending departure of Chief Financial Officer Andrew Bronstein, effective February 2, 2024, as he moves to an external opportunity. John Becerril, currently serving as the Chief Accounting Officer, will take over as the acting CFO. President and CEO Morgan Kurk expressed gratitude to Bronstein for his contributions and assistance, noting that Cambium is stronger now than at the beginning of Bronstein's tenure in April 2022.
Cambium Networks will host a conference call and webcast at 4:30 p.m. ET on Thursday, February 15, 2024, to discuss the full financial results for the fourth quarter and to address questions.
This report is based on a press release statement from Cambium Networks.
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