Cambium Networks Corporation (CMBM) Q4 2022 Earnings Call Transcript

Trending 1 year ago

Cambium Networks Corporation (NASDAQ:CMBM) Q4 2022 Earnings Conference Call February 16, 2023 4:30 PM ET

Company Participants

Peter Schuman - Vice President, Investor & Industry Analyst Relations

Atul Bhatnagar - President and Chief Executive Officer

Andrew Bronstein - Chief Financial Officer

Conference Call Participants

Simon Leopold - Raymond James

Angela Jin - JPMorgan

Scott Searle - ROTH Capital Partners

Erik Suppiger - JMP Securities

Paul Essi - William K. Woodruff

Tim Savageaux - Northland Capital Markets

George Notter - Jefferies

Scott Searle - ROTH

Timothy Horan - Oppenheimer


Good afternoon. My sanction is Amy, and I will beryllium your convention usability today. At this time, I would for illustration to invited everyone to nan Cambium Networks' Fourth Quarter and Full Year 2022 Financial Results Conference Call. All lines person been placed connected shut up to forestall immoderate inheritance noise. After nan speakers' remarks, location will beryllium a question-and-answer session. [Operator Instructions] Please limit yourself to 1 mobility and 1 follow-up question. Thank you.

Mr. Peter Schuman, Vice President, Investor and Industry Analyst Relations, you whitethorn statesman your conference.

Peter Schuman

Thank you, Amy. Welcome, and convey you for joining america coming for Cambium Networks 4th fourth and afloat twelvemonth 2022 financial results convention telephone and invited to each those joining by webcast. Atul Bhatnagar, our President and CEO; and Andrew Bronstein, our CFO, are present for today's call. The financial results property merchandise and CFO commentary referenced connected this telephone are accessible connected nan investor page of our website and nan property merchandise has been submitted connected a Form 8-K pinch nan SEC.

Certain revisions were made wrong operating expenses successful anterior periods to conform to nan classifications successful nan existent period. These revisions had nary effect to operating income.

A transcript of today’s prepared remarks will besides beryllium disposable on our investor page astatine nan conclusion of this call.

As a reminder, today’s remarks, including those made during Q&A, will incorporate forward-looking statements astir nan company’s outlook and expected performance. These statements are based connected existent expectations, forecasts, and assumptions. Risks and uncertainties could origin existent results to disagree materially.

Except arsenic required by law, Cambium Networks does not undertake immoderate responsibility to update aliases revise immoderate forward-looking statements for immoderate logic aft nan day of this presentation, whether arsenic a consequence of caller information, early developments, to conform these statements to existent results aliases to make changes successful Cambium’s expectations aliases otherwise.

It is Cambium Networks argumentation not to reiterate our financial outlook. We promote listeners to reappraisal nan afloat database of consequence factors included successful nan safe harbor connection successful today’s financial results property release.

We will besides reference some GAAP and non-GAAP financial measures and specifically statement that each sequential and year-over-year comparisons reference non-GAAP numbers isolated from wherever different noted. A reconciliation of non-GAAP measures to GAAP is included successful nan appendix to today’s financial results property release, which tin beryllium recovered connected nan investor page of our website and successful today’s property merchandise announcing our results.

Turning to nan agenda. Cambium Networks President and CEO, Atul Bhatnagar, will supply nan cardinal finance highlights for nan 4th fourth and afloat twelvemonth 2022 and Andrew Bronstein, Cambium Networks CFO, will supply a recap of nan financial results for nan 4th fourth and afloat twelvemonth 2022 and coming our financial outlook for nan first 4th and afloat twelvemonth 2023. Our prepared remarks will beryllium followed by a Q&A session.

I’d now for illustration to move nan telephone complete to Atul.

Atul Bhatnagar

Thank you, Peter. Cambium continued maturation successful our 4th quarter, pinch revenues of $84.5 million, expanding 4% sequentially, up of nan high-end of our outlook of betwixt $80 cardinal to $84 cardinal announced during nan Q3 2022 4th call.

Profitability remained strong, pinch a gross separator of 49.6%, adjacent nan high-end of nan outlook, and EPS of $0.36, exceeding nan high-end of nan outlook. We had a beardown decorativeness to nan twelvemonth successful North America, pinch maturation successful each awesome merchandise categories and sequential maturation for our Point-to-Multi-Point, PMP solutions.

After grounds breaking results during Q3 2022 that included an incremental $5 cardinal successful switching revenues, arsenic expected, our endeavor business returned to a normalized tally complaint successful Q4 2022.

For afloat twelvemonth 2022, our Enterprise business grew 64% to $109.8 million, exceeding nan high-end of our original forecast. This is aft maturation of 67% during afloat twelvemonth 2021.

For 2023, Enterprise maturation will beryllium from a overmuch higher base, pinch our first forecast of maturation for nan Enterprise business of 20-30%, arsenic we proceed to innovate pinch caller Wi-Fi, switching, and cloud-based package solutions. And we proceed to summation marketplace stock globally. We've grown from astir 1,500 cumulative Wi-Fi customers astatine clip of our IPO, successful mid-2019 to astir 18,500 astatine Q4 2022.

We are now astatine nan commencement of nan adjacent activity of high-performance fixed wireless broadband deployments for our PMP business pinch nan ramp of caller gigabit solutions including 28 GHz cnWave 5G Fixed products, an acceleration successful nan maturation of our 60 GHz cnWave products, and nan preamble of disruptive 6 GHz PMP products during Q4 2022 which delivers manufacture starring value performance.

Final FCC support for outdoor usage of nan 6 GHz spectrum is expected astir mid-year 2023. However, nan FCC has already started approving Special Temporary Authority Licensing (STA) for proof-of-concept networks.

Turning to nan results of nan 4th fourth 2022, looking astatine revenues crossed our merchandise lines, our PMP business revenues accrued 14% sequentially and decreased 20% year-over-year, arsenic work providers are opening to move from our bequest PMP 450 products to nan caller gigabit technologies.

We did spot an acceleration of maturation for our multi-gig 60 GHz cnWave solutions, arsenic work providers are gaining an knowing of really to deploy nan exertion astatine scale, to return advantage of nan benefits of multi-gigabit bandwidth, low-latency, and ratio pinch hybrid-fiber and cablegram networks.

The PTP business revenues accrued a patient 38% sequentially, while improving 39% twelvemonth over-year during Q 2022, owed to higher shipments for our Federal Defense Business successful North America, arsenic good arsenic maturation successful EMEA, and CALA, utilizing Cambium's PTP 700 mission-critical exertion for Fixed Wireless Broadband Communications.

Cambium has been selected to proviso our PTP defense products to complete 10 cardinal Programs of Record (POR) for nan Department of Defense. We expect continued beardown defense shipments during 2023.

As expected, our Enterprise business declined sequentially, decreasing by $6.3 cardinal aliases 17% aft grounds revenues of $38.3 cardinal during Q3 2022, which included nan antecedently mentioned catch-up shipments for switching, while higher by $6.2 cardinal aliases 24% year-over-year.

The year-over-year maturation was driven by accrued request for our Wi-Fi 6 and 6E solutions, switching revenues and maturation successful our SaaS solutions. For nan afloat twelvemonth 2022, revenues of $296.9 million, decreased 12% from 2021. The 2022 diminution was driven by our PMP products, which declined 44% from nan anterior year, partially offset by nan maturation of our Enterprise business which had a grounds year, expanding 64% for nan afloat twelvemonth 2022, breaking nan $100 cardinal period for nan first clip successful Cambium’s history, while our PTP business grew 10% compared to 2021 revenues owed to nan spot of our Federal defense business.

It is notable that our Enterprise business represented 37% of nan institution revenues during almanac twelvemonth 2022, compared to 20% of revenues for 2021. In nan long-term, we expect our Enterprise and PMP businesses will each correspond astir 40% of our full revenues arsenic we thrust nan caller maturation S-Curves, while PTP will correspond nan remaining 20%.

We do foresee nan return to humble maturation for nan PMP business, driven by caller merchandise momentum successful 6 gigahertz upon nan FCC’s approval, expected to thrust gross maturation during nan 2nd half of nan year, arsenic good arsenic nan continued ramp of 28 gigahertz and 60 gigahertz millimeter activity solutions, and caller 5 gigahertz and 6 gigahertz products for some nan ePMP and PMP 450 merchandise lines. Both 60 gigahertz and 28 gigahertz cnWave solutions person precocious brought successful respective multi-million dollar deals.

Looking astatine immoderate notable customer wins and caller merchandise developments. In North America, Salt Lake City placed an bid for 60 gigahertz cnWave connectivity arsenic portion of a smart metropolis deployment. Cambium was selected for our portfolio breadth and expertise to present backhaul and entree pinch a azygous guidance platform.

A section of nan third-largest cablegram tv supplier successful nan United States, serving 3.5 cardinal Internet subscribers, introduced a caller business work for customers done our strategy integration partner, FutureTech. The work utilizes Cambium’s 60 gigahertz cnWave solution to fresh betwixt fibre and CBRS assets arsenic portion of nan caller backstage web offering for multi-gigabit connectivity.

We had a ample bid for 60 gigahertz solutions from a Canadian usability successful Alberta, MCSnet, for a 60 gigahertz web build-out. They were attracted to our 60 gigahertz products arsenic it offers gigabit speeds astatine a overmuch little full costs of ownership than fiber. They person already deployed successful 12 communities truthful acold pinch a extremity of 44 connected communities during 2023.

This is an illustration of wherever we are seeing a resurgence successful our 60 GHz business aft an first play of gestation. In nan Europe, Middle East, and Africa region, EMEA, we continued to person patient request for our endeavor business and are winning larger projects.

Cambium had a customer triumph pinch a fibre web usability successful South Africa, Isizwe, for our outdoor Wi-Fi pinch a extremity of connecting households pinch up to 100 Mbps and a disruptive costs exemplary for nan consumer. Isizwe intends to summation its number of homes connected from 4,500 successful December 2022 to 22,000 successful 2023.

In nan Asia Pacific APAC region, we landed our first Network-as-a-Service, NaaS triumph to alteration agrarian connectivity successful Sumatra, Indonesia. This first NaaS bid successful nan region is for 500 homes and includes our Wi-Fi and cnMaestro X unreality software. This is successful summation to our ePMP 3000 for fixed wireless broadband access. Upon successful deployment of this first order, we expect a larger multi-year measurement agreement.

And successful nan Caribbean and Latin America, CALA region, successful Brazil, we collaborated pinch Qualcomm, successful collaboration pinch nan National Telecommunications Agency, Anatel, and Telium, to show nan first usage of nan 6 GHz set successful an outdoor area successful nan Campo Belo vicinity of Sao Paulo. The relationship featured Cambium’s outdoor Wi-Fi 6 and 6E entree points, 6 GHz ePMP 4600 for fixed wireless infrastructure, cnMatrix wireless savvy switches, and cnMaestro X unreality guidance software.

The demo became disposable for 2 months starting connected December 3rd, for visitors successful nan surrounding area. The demo included nan usage of nan Automated Frequency Coordination, AFC, spectrum sharing level to guarantee that location was nary interference pinch fixed point-to-point systems existing successful that region, and to show its wide speed, performance, and reliability.

Turning to upcoming merchandise introductions since our erstwhile quarterly update. While nan manufacture is excited astir nan early readiness of caller 6 GHz spectrum to alteration nan transportation of gigabit information rates to nan separator of nan web and awaits FCC approval, Cambium besides continues to push nan letter cover pinch affordable caller 5 GHz solutions pinch our ePMP 4500 featuring 8X8 MU-MIMO, and complete 3 Gigabits of capacity pinch up to 80 MHz channels, and enables non-line-of-sight to prime subscribers.

The ePMP 4500 is simply a powerful and transformative product, which we expect will penetrate nan marketplace owed to its precocious capacity and affordability compared to different alternatives successful nan market, particularly to return marketplace stock from our title successful nan work providers space, up of nan FCC’s support of 6 GHz spectrum.

Looking astatine our cnMaestro Cloud software, our end-to-end cloud-powered connectivity solution to negociate nan web from a azygous pane of glass. The cnMaestro Cloud package continued to acquisition beardown personification growth. Total devices nether unreality guidance successful Q4 '22 was complete 898,000, an summation of complete 4% from Q3 '22, and up 21% year-over-year.

Turning to our Channel. In Q4 '22, we expanded our transmission beingness by adding complete 425 nett caller transmission partners sequentially, and complete 1,300 nett caller transmission partners year-over-year, which represents an summation of complete 3% sequentially and 11% year-over-year. We continued to grow our scope into caller customers astir nan world.

I will now move nan telephone complete to Andrew for a reappraisal of our Q4 2022 and afloat twelvemonth 2022 financial results and Q1 2023 and afloat twelvemonth 2023 outlook.

Andrew Bronstein

Thanks, Atul. Cambium reported revenues of $84.5 cardinal for Q4 '22. Revenues accrued by 4% quarter-over-quarter and accrued by 7% year-over-year.

On a sequential ground for Q4 '22, revenues were higher by $3.3 million. The higher revenues were chiefly nan consequence of accrued PTP revenues for defense products, and an summation successful PMP products arsenic a consequence of our 60 GHz cnWave and ePMP products, while endeavor solutions decreased aft a grounds Q3 '22, which included a $5 cardinal catch-up successful switching revenues owed to proviso concatenation shortages successful erstwhile quarters.

For nan afloat twelvemonth 2022, revenues of $296.9 cardinal decreased by $39.0 million, aliases 12% compared to nan afloat twelvemonth 2021. The alteration is simply a consequence of little PMP revenues, which declined by $89.8 cardinal aliases 44%, compared to 2021 owed to merchandise transitions to nan adjacent procreation 6 gigahertz and 28 gigahertz cnWave 5G Fixed solutions.

We had grounds endeavor revenues of $109.8 cardinal during 2022, which grew by $42.9 million, aliases 64% compared to 2021. And our PTP revenues accrued by $6.3 cardinal to $67.1 million, aliases an betterment of 10% compared to afloat twelvemonth 2021, owed to beardown request for our defense products.

Moving to our gross margin. Our non-GAAP gross separator of 49.6% was amended than anticipated, expanding by 540 ground points compared to Q4 2021. The year-over-year summation successful our non-GAAP gross separator was nan consequence of higher volumes and a greater operation of higher separator endeavor and PTP products and little freight costs.

On a sequential basis, non-GAAP gross separator was little by 170 ground points compared to Q32022. The little quarter-over-quarter non-GAAP gross separator successful Q4 2022 was nan consequence of a higher operation of little separator PMP products, and arsenic expected a diminution successful endeavor switching revenues, offset successful portion by higher PTP revenues and higher constituent inventory costs.

In Q4 2022, our non-GAAP gross profit dollars of $41.9 cardinal accrued by $7.1 cardinal compared to nan anterior twelvemonth owed to higher volumes and improved operation of PTP and endeavor products, and little shipping costs, and accrued by $276,000 sequentially, mostly a consequence of higher revenues, offset successful portion by nan higher constituent costs owed to inflation.

For nan afloat twelvemonth 2022, non-GAAP gross separator improved by 130 ground points to 49.5%, compared to 48.2% for 2021, owed to an improved operation of our higher separator endeavor and PTP merchandise lines.

Our longer word extremity remains a accordant non-GAAP gross separator target of 51% to 52% connected an yearly basis. Non-GAAP operating expenses, including amortization, successful Q4 2022 decreased by $348,000 erstwhile compared to Q4 2021, and stood astatine $28.7 million, aliases 34.0% of revenues. The alteration successful operating expenses compared to nan anterior twelvemonth play was chiefly owed to little adaptable compensation and tight controls astir headcount, offset by higher income and trading costs related to recreation and waste and acquisition shows, and higher wages, while R&D remained flat.

When compared to Q3 2022, non-GAAP operating expenses accrued by astir $850,000. Quarter-over-quarter income and trading expenses accrued chiefly because of higher wages and income accelerators related to our endeavor business, and accrued waste and acquisition show and recreation expenditures, while R&D accrued arsenic a consequence of higher staffing costs related to improvement activity connected caller products, and G&A decreased owed to tight costs controls.

For nan afloat twelvemonth 2022, non-GAAP operating expenses decreased by $1.6 cardinal and stood astatine $112.7 million, compared to $114.3 cardinal for 2021. The little non-GAAP operating expenses during 2022 bespeak little adaptable compensation, offset by higher wages owed to inflation. We will proceed to support our beardown costs controls.

Non GAAP operating separator for Q4 2022 was 15.6%, up from 7.3% during Q4 2021 and down from 17% of revenues successful Q3 22. For nan afloat twelvemonth 2022, our non GAAP operating separator was 11.6% compared to 14.1% successful 2021, chiefly reflecting little revenues and little standard resulting successful less gross profit dollars, contempt an improved operation of revenues.

Non-GAAP nett income for Q4 22 was $10.3 cardinal aliases $0.36 cents per diluted share, supra our erstwhile outlook of betwixt $0.23 to $0.27 per diluted share, and compared to $4.4 cardinal aliases $0.16 cents per diluted stock for Q4 21 and non-GAAP nett income of $11.3 aliases $0.40 cents per diluted stock during Q3 2022.

The higher non-GAAP nett income compared to nan anterior twelvemonth play was chiefly owed to higher gross profit dollars, while little nett income compared to nan anterior quarter’s results was chiefly a consequence of higher income and trading expenses.

For nan afloat twelvemonth 2022, non-GAAP nett income was $26.9 cardinal aliases $0.94 per diluted share, compared to $35.6 cardinal aliases $1.26 per diluted stock successful 2021. Adjusted EBITDA for Q4 2022 was $14.3 cardinal aliases 16.9% of revenues, compared to $6.7 cardinal aliases 8.6% of revenues for Q4 2021, and compared to $14.7 cardinal aliases 18.2% of revenues for Q3 2022.

The afloat twelvemonth 2022 adjusted EBITDA was $38.8 cardinal aliases 13.1% of revenues, compared to $51.2 cardinal aliases 15.3% of revenues for nan afloat twelvemonth 2021. Our operating exemplary remains solid. We stay committed to consistently driving our adjusted EBITDA to our semipermanent target of 18% to 19% of revenues.

Now moving connected to rate flow. Cash provided by operating activities was $4.0 cardinal for Q4 2022, and compares to $5.6 cardinal for Q4 2021, and $2.2 cardinal for Q3 2022. Our rate travel was negatively impacted arsenic we accrued inventories and materials to support caller products and to return advantage of proviso concatenation opportunities for nan anticipated maturation of our business, and we accrued accounts receivables arsenic a consequence of higher revenues.

Now turning to nan Balance Sheet. Our rate totaled $48.2 cardinal arsenic of December 31, 2022, an summation of $3.3 cardinal from Q3 2022. The sequential summation successful rate chiefly reflects collections connected higher revenues and changes successful moving capital.

Our nett inventories of $57.1 cardinal successful Q4 2022 accrued by astir $23.3 cardinal year-over-year, while expanding $6.4 cardinal from Q3 2022. Inventories were higher sequentially because of an summation successful inventories arsenic we continued to turn our business and return advantage of proviso concatenation opportunities.

The accrued level of inventories reflects anticipated higher request for Federal products, Enterprise solutions, and nan ramp of caller PMP products during nan 2nd half of almanac twelvemonth 2023.

In summary, nan 4th fourth played retired amended than anticipated. As predicted, our PMP business grew sequentially. Our gross separator remained strong. We proceed to spot betterment successful our proviso concatenation environment. Our backlog remains solid, and we are astatine nan commencement of caller merchandise cycles.

During 2023, we expect to summation scale, amended operational efficiency, and make important advancement towards achieving our semipermanent target operating model. As expected, while nan proviso concatenation continues to improve, location are still areas of constituent shortages successful definite products, and longer lead-times arsenic compared to pre-COVID levels.

Moving to nan first 4th and afloat twelvemonth 2023 financial outlook. Cambium Networks' financial outlook does not see nan imaginable effect of immoderate imaginable early financial transactions, acquisitions, pending ineligible matters, aliases different transactions.

Considering our existent visibility arsenic of today, our Q1 2023 financial outlook is expected to beryllium arsenic follows; revenues betwixt $74 to $80 million, representing maturation of astir 20% to 29% year-over-year, and a alteration of betwixt 5% to 12% sequentially, owed successful portion to seasonality successful our PMP business and slowing world economies, while our defense business successful PTP remains strong.

Non-GAAP gross separator betwixt 49.2% to 50.8%; non-GAAP operating expenses betwixt $30.6 cardinal to $31.6 million; and non-GAAP operating income betwixt $5.8 cardinal to $9 million.

Interest expense, nett of astir $600,000, and non-GAAP nett income betwixt $4.1 cardinal to $6.8 cardinal aliases nett income per diluted stock betwixt $0.14 to $0.23.

Adjusted EBITDA betwixt $6.8 cardinal to $10; and adjusted EBITDA margins betwixt 9.2% to 12.5%. A non-GAAP effective income taxation complaint of astir 17% to 21.0% and astir 28.9 cardinal weighted mean diluted shares outstanding.

Cash requirements are expected to beryllium arsenic follows; paydown of indebtedness of $700,000, rate liking of astir $400,000, and CapEx of betwixt $3 cardinal to $4 million.

Full twelvemonth 2023 financial outlook is expected to beryllium arsenic follows. We expect revenues of betwixt $327 cardinal and $345 million, representing astir 10% to 16% growth. Non-GAAP gross separator astir 50%. Non-GAAP nett income betwixt $33.9 cardinal and $36.4 cardinal aliases nett income per diluted stock of betwixt $1.17 to $1.25.

Adjusted EBITDA separator betwixt 14.5% to 15%. And for nan year, CapEx to beryllium astir $14 cardinal to $18 million, chiefly driven by an description successful our R&D labs and equipment, on pinch package costs successful relationship pinch caller products.

I will now move nan telephone backmost to Atul for immoderate closing remarks.

Atul Bhatnagar

We delivered a coagulated 4th of results pinch accrued revenues, fantabulous profitability, and a beardown equilibrium sheet, important caller merchandise introductions, and a return to maturation for our PMP business, driven by 60 GHz cnWave, 28 GHz cnWave 5G Fixed, and nan motorboat of affordable 6 GHz fixed wireless PMP solutions. Our Enterprise business remains strong, led by Wi-Fi 6 and 6E, wireless savvy switching products, and an accrued offering of our Software-as-a-Service solutions and fantabulous onboarding of caller ample managed work providers.

We expect nan Enterprise business to turn betwixt 20% and 30% during almanac twelvemonth 2023. The Cambium ONE Network integrated wireless cloth has go a reality, providing customers easiness of deployment, scalability of networks, and little full costs of ownership arsenic nan world deploys next-generation high-performance wireless broadband networks.

During 2022, we diversified and made our business much resilient. We stay focused connected judiciously managing our costs, improving our operations, continuing to put successful innovative products to support our exertion edge, and expect accrued standard will use our early operating results.

As we look to 2023, our 6 gigahertz, 28 gigahertz cnWave 5G Fixed technology, millimeter activity products and upcoming fibre products, will grow our markets and proceed to propel Cambium successful nan fixed wireless broadband market.

Our defense business is expected to proceed growing, arsenic nationalist information has go a world issue. And our scope into Managed Service Providers and Multi-Dwelling Units will broaden and fortify our Enterprise business and position america for continued beardown growth. We will grow our package and services offerings and adhd moreover much features, security, and functionality into our flagship cnMaestro platform.

Our attraction will beryllium connected solutions that our customers want, keeping a keen oculus connected really our products mesh pinch customer applications and web automation. Cambium has now graduated from building conscionable radios to delivering an exceptional customer acquisition done our extended broadband solutions that brings delight and confidence.

Given nan humanitarian situation unfolding successful Turkey past week, Cambium is contributing wireless broadband solutions successful nan state for connectivity to loved ones to support nan citizens and alleviation workers successful nan hardest deed areas. I’d for illustration to show my appreciation for our employees, partners, and customers for their resilience arsenic we returned to maturation during nan 2nd half of almanac 2022.

This concludes our prepared remarks. So, pinch that, I’d for illustration to move nan telephone complete to nan Amy and statesman nan Q&A session.

Question-and-Answer Session


We will now unfastened nan telephone for your questions. [Operator instructions] And our first mobility comes from Simon Leopold pinch Raymond James. Your statement is open.

Simon Leopold

Thanks for taking nan question. First, I conscionable wanted to sound retired a speedy clarification. In nan prepared remarks, Atul, I deliberation you've talked astir nan operation being astir 40% PMP, 40% Wi-Fi aliases endeavor and 20% PTP, but I wasn't judge what timeframe you were reasoning astir those targets, whether that was your 2023 position aliases thing longer term? And past I've sewage a follow-up.

Atul Bhatnagar

Yes. Thanks, Simon. That's nan semipermanent model. Generally semipermanent exemplary for america is simply a 2 to 3 twelvemonth timeframe. And especially, PMP is simply a very cardinal instauration of Cambium pinch nan resurgence of caller products innovations we are doing pinch gigabit connectivity, millimeter wave, 5G. So, that conscionable tells you nan assurance we person that successful nan semipermanent exemplary you will spot PMP and endeavor astir apt equal, and PTP astir 20%.

Simon Leopold

Thanks. And past a small spot more, I guess, a trending mobility is around, I get nan belief there's immoderate contention astir nan BEAD, aliases authorities Broadband Equity, Access, Deployment Program backing that if I'm knowing it correctly, they looked astatine areas wherever WISP are providing work and considered them unserved aliases underserved. And I conjecture nan thought process is that location beryllium immoderate risks that nan authorities costs pinch salary to build retired title to your WISP customers. And I guess, I'm conscionable trying to get a amended understanding, I deliberation nan WISP relation is lobbying nan NTIA, if you could possibly show america a small spot astir what's going connected and wherever we are successful position of solving this problem?

Atul Bhatnagar

Sure. So Simon, fto maine reside connected some RDOF arsenic good arsenic BEAD. The RDOF which is Rural Digital Opportunity Fund really conscionable approved 2 of our customers for full of astir $700 million. And they scheme to deploy 6-gigahertz for that gigabit connectivity. So successful nan creation of work, nan 6-gigahertz CBRS each that worldly is giving ngo captious connectivity.

In nan BEAD world, arsenic we said, this is nan national infrastructure initiative, arsenic we said, it will beryllium astir apt early 24 erstwhile nan dissemination will happen. And I deliberation nan results of our each nan interactions we are having wrong different folks, it's very clear that wireless will supply a very affordable ngo captious infrastructure, nan BEAD has provided successful CAF I and CAF II, nan Connect America Fund I and Connect America Fund II. So we are beautiful assured that economics and nan results of RDOF occurrence will prevail successful each nan authorities installations and besides galore of nan fibre customers of Cambium are really utilizing it very successfully successful reliable terrains and immoderate localities wherever fibre cannot beryllium deployed. So for galore applicable reasons, I deliberation you will spot BEAD besides adopted, but RDOF is taking nan inaugural astir apt a small earlier.

Simon Leopold

Thank you for that.


Thank you One infinitesimal for our adjacent question. And our adjacent mobility comes from Samik Chatterjee pinch JPMorgan. Your statement is open.

Angela Jin

Hi. Good afternoon. This is Angela Jin connected for Samik Chatterjee. I conscionable wanted to inquire 1 mobility connected nan customer verticals. So successful nan work supplier vertical, are you seeing immoderate benignant of region successful span from nan mature providers and past connected nan endeavor side, each tin we hacve -- doesn't really service that galore accepted endeavor players? Are you seeing nan macro impacting hospitality, education, wellness attraction verticals and their budgets heading into 2023? And past I person 1 follow-up.

Atul Bhatnagar

Sure. Thanks, Angela. Let maine reside nan work supplier first. So successful nan work provider, they are moving to adjacent gen architecture really Cambium has utilized nan pandemic timeframe to wholly create nan caller architectures for gigabit. That's what we did past 2 years.

So what we're uncovering is that if personification is trading past procreation architecture pinch travel speed, you're perfectly right. They are not going to adopt that. But if you person gigabit connectivity, you person 60 gigahertz 5G standards, we are seeing important activity successful our funnel. And nan number of customers, number of POCs moreover 20 summation rather a bit.

So nan cardinal message, you person to person nan adjacent procreation architecture. And that's nan level for nan early for Cambium. And we are seeing bully maturation there.

In Enterprise we attraction connected hospitality, acquisition and our situation is to negociate work providers and they worth either deployment, they worth economics, and those are nan 2 cardinal differentiations Cambium has. And that's why we are posting 50% positive year-over-year type of growth.

So we are not seeing immoderate slowdown there. But moreover there, Angela, you person to person very precocious capacity Wi Fi 6 and 6E products again, a web architecture. And that has been our cardinal connection caller maturation S-curves are what's driving nan maturation correct now. Do you person a follow-up?

Angela Jin

Yeah. Yeah. So I guess, moving to my follow-up. So fixed nan ramp successful 5G Investments and build outs that are going connected successful India, could you possibly conscionable locomotion there. What is your vulnerability to India and your thoughts connected imaginable maturation successful that region?

Atul Bhatnagar

So Angela, India's 5G, we are very engaged, I deliberation it will return still a twelvemonth to 1.5 twelvemonth for nan particulate to settee down, because their wave is I think, 26 gigahertz aliases so. And we person a very bully knowing of what will it take.

In general, 5G fixed addressable markets between, 2021 to 2026 is going to spell from 890 cardinal to 1.6 billion, that's 100% summation successful those, five, six years. So we deliberation that that 28 gigahertz will beryllium a cardinal market, including India, but gestation mightiness return bully coagulated twelvemonth to 18 months, but very prosecute successful that market.

Angela Jin

Got it. Thank you.

Atul Bhatnagar

Thanks, Angela.


Thank you, 1 infinitesimal for our adjacent question. And our adjacent mobility comes from Scott Searle pinch ROTH. Your statement is open.

Scott Searle

Hi. Good afternoon. Thanks for taking nan questions. To a batch of caller products are going to spell retired nan door. I'm not sure, if I heard a number. But I was wondering if you could springiness america immoderate thought of nan magnitude of nan publication of 28 gig and 60 gig, I cognize its early days successful nan conscionable completed 4th quarter. And 60 gig arsenic well. And it was starting to ramp up. I'm wondering, what benignant of opportunities you're seeing pinch nan different newer products? And past adhd a follow-up?

Atul Bhatnagar

Sure. Thanks, Scott. Let maine spell one-by-one. So 60 gigahertz we person now arsenic we mentioned, we person mates of cardinal dollars. You know, successful each caller technology, I look for 3 pillars. When do you transverse 100,000 successful revenue? When do you transverse half cardinal gross and erstwhile do you transverse nan million.

So we are now opening to spot galore customers successful 60 gigahertz crossing million. What that fundamentally intends is they are deploying North 1000 subscribers. And arsenic Cambium history shows, each caller level we bring first we crossed nan 1000 barrier, past we crossed 10,000 subscriber barriers, past because 100,000 subscriber barriers, and it's a 4 twelvemonth cycle.

So nan cardinal connection and 60 I deliberation we are now scaling, our customers are scaling nan gestation, for galore of nan POC we talked astir last, three, 4 quarters has happened. And this rhythm will continue. And wherever we spot acceleration is Wireless Internet Service Providers with, Municipalities which are utilizing it for Public Wi Fi, Video Surveillance, and Enterprises, peculiarly Logistics, Outdoor Wi Fi, Campus Connectivity.

These are nan segments wherever 60 is expanding. So consciousness beautiful bully astir that. As we arsenic we exit arsenic Q4. We felt now our customers are opening to scale. So that's 60. 28 gigahertz will not person arsenic galore customers. But nan woody sizes of 28 gigahertz will beryllium astir apt successful galore cases successful a 5 to 10 times, because it's unlicensed wave and it is very overmuch adopted by Tier 1s and Tier 2s.

So what you spot betwixt 28 and 60? IF 60 will beryllium tons of deals, tons of customers 1000s of them. Whereas 28 will beryllium astir apt hundreds, but nan woody size connected 28 will beryllium overmuch larger, we person astir 20 POCs, 2-0, 20 POCs, worldwide, and 8 are successful accumulation correct now. And that tells you really accelerated Cambium is moving. And conscionable if you look astatine 2021, we only person 2 aliases three. So successful past 12 months, our POCs person increased, accumulation customers person increased. And arsenic I mentioned, many, galore times successful nan past fewer quarters, woody sizes is much, overmuch larger, and their long is also, 3 to 4 years, not conscionable 1 aliases 2 years.

And fto maine touch very concisely connected 6 gigahertz. We shipped Q4, our 6 gigahertz products, and that will support 10 To 20 POCs, galore of nan POCs are turning into now production, though FCC has not yet approved nan last – they're not fixed nan last greenish signal. But galore customers judge that, nan costs of deployment connected towers is very expensive. So they are deploying 6 gigahertz. And immoderate of them are besides utilizing nan 5 gigahertz version, which is nan ePMP 4500, arsenic we mentioned.

So each these areas are increasing that's why we are saying 2023 For PMP will beryllium description much 2nd half. Because galore of these by nan clip they participate accumulation and standard and each that you will spot nan results and erstwhile we accelerated guardant two, 3 years. We judge PMP 40%, endeavor 40%, PTP 20% is astir apt nan correct dependable authorities distribution.

Scott Searle

Got you. Very helpful. And if I could for a follow-up connected nan 6 gigahertz front, we're waiting for certification and support from nan SEC for nan ASC, earlier I conscionable reconstruct to spell into much commercialized production. So pinch that successful mind, I'm wondering, really you're reasoning astir nan ramp up into nan 2nd half of this year? And what's going to represent occurrence benignant of exiting 2023. And arsenic we deliberation astir 2024, really large of an opportunity is that? The 6 gigahertz merchandise line, what would beryllium success. And if I could conscionable concisely benignant of dissect betwixt nan US world markets been a batch of focus, near-term connected nan US opportunity. But this is surely a world marketplace successful position of what's going connected pinch 6 gigahertz and regulatory support and nan allocation of frequencies. So I'm wondering really you're seeing that style up connected that front? And really we should beryllium reasoning astir that complete nan adjacent mates years? Thanks.

Atul Bhatnagar

Excellent question, Scott. So first of all, 6 gigahertz United States is leading. I deliberation each different state is watching Brazil is 1 of nan first ones to travel connected nan bandwagon. And successful our prepared remarks, we conscionable say, successful Sao Paulo, we activity pinch Brazilian authorities for illustration NFL, and we showed that capability, I deliberation you will spot galore progressive countries adopt 6 gigahertz. And there's a logic for that, 5 gigahertz is simply a very good established frequency. But it is getting noisy.

So erstwhile authorities gives you successful astir 1200 megahertz of, very cleanable spectrum, that's a large deal. Like successful 2 decades, there's thing for illustration this has ever happened. So it's a large deal. So our belief is that US will lead and galore 5 gigahertz widths peculiarly are waiting for – to grow and nan costs advantage and nan capacity advantage from 5 gigahertz to 6 gigahertz continue.

Remember, erstwhile you spell to nan 60 gigahertz, 28 gigahertz there's a technological change. And that's why nan gestation is needed. That's why nan acquisition is needed earlier you scale. But erstwhile it comes to six gigahertz, it's a – it's an adjacency. They cognize really to do it. So I deliberation nan 6 gigahertz measurement is starting nan 2nd half 2023 is still early, it will ratchet up successful 2024 and 2025. And this has been our acquisition erstwhile we introduced Medusa successful 2016, pinch our 5 gigahertz architecture and 3 gigahertz architecture, it ran for adjacent 4 aliases 5 years. And that's why I ever stress that.

So I deliberation 2023 still for 6 successful 2nd half is simply a start, but it has a agelong legs aft that. And we are emotion very excited, because our customers are getting excited, because they tin spot nan value capacity is of a different magnitude. That's why I ever telephone it S-curve. It's a caller S-curve.

Scott Searle

Great. Thank you. I'll get backmost successful nan queue.

Atul Bhatnagar

Thanks, Scott.


Thank you. One infinitesimal for our adjacent question. And our adjacent mobility comes from Erik Suppiger pinch JMP Securities. Your statement is open.

Erik Suppiger

Yes. Thanks for taking nan mobility and conscionable pursuing up a small spot much connected immoderate of nan merchandise segments. When -- really overmuch of your shipments connected nan endeavor broadside are Wi-Fi 6 aliases Wi-Fi 6E astatine this point. And past secondly, immoderate comments successful position of timing astir your fibre products, erstwhile you deliberation those will commencement hitting nan marketplace and if they would beryllium a meaningful contributor successful 2023?

Atul Bhatnagar

Yes. Thanks. All right. First of all, Wi-Fi 6 modulation successful Cambium portfolio has happened very successfully. I would opportunity mostly of our shipments arsenic of coming are Wi-Fi 6 and 6E. . So that gives you a beautiful bully indication, majority. And this was a stake we made almost 18 months to 2 years backmost and has played very well.

In position of fibre timing, we are successful beta. We will vessel measurement Q2 timeframe. And our customers are pulling america actually, because 1 of nan things Cambium is known for is easiness of deployment, azygous pane of solid for management.

And they are saying, since nan authorities dollars are going to beryllium coming connected that broadside arsenic well, Cambium why don’t you supply america a bully solution. So our scheme is wherever wireless stops fibre tin return over, wherever fibre stops wireless tin return over, azygous pane of solid to negociate and attraction connected easiness of deployment.

Erik Suppiger

Just existent speedy connected nan connected nan Wi-Fi 6, are you shipping overmuch Wi-Fi 6E astatine this point?

Atul Bhatnagar

Some. Yes, some. But I deliberation Wi-Fi 6E has truthful overmuch horsepower successful nan outdoor arena and indoor arena that I deliberation arsenic of now, some, but I would opportunity astir of it is Wi-Fi 6. But that will alteration successful astir apt 2023 2nd half and 2024.

Erik Suppiger

Very good. Thank you.

Atul Bhatnagar

Thanks, Erik.


Thank you. One infinitesimal for our adjacent question. And our adjacent mobility comes from Paul Essi pinch William K. Woodruff. Your statement is open.

Paul Essi

Yes. Thank you for taking my question. Well, my questions person been answered. But I've sewage a mates of speedy ones. In nan package area, what percent of nan package revenues are now wrong a SaaS model? And what is nan average, is it a 1 year, 2 year, 3 twelvemonth statement that you motion pinch them?

Atul Bhatnagar

Yes. Hi. Thanks for nan question. So arsenic a percent of our full revenue, if you look astatine SaaS type revenue, that's recurring successful nature, some package and support services together is astir 5% to 6% of our full revenue. And astir of those deals, they do alteration 1 year, 2 year, three, moreover immoderate five, but I would opportunity connected average, they're 3 twelvemonth deals.

Paul Essi

Okay. Okay, because I noticed your deferred revenues are starting to build and I conscionable wanted to --

Atul Bhatnagar


Paul Essi

-- get an idea.

Atul Bhatnagar

That’s why. Yes.

Paul Essi

Okay. And 2nd question. Real briefly, person you seen immoderate labour issues? Some of nan different companies person expressed interest that nan twelvemonth aliases two, location mightiness beryllium immoderate trouble getting this merchandise retired successful gathering immoderate of nan specs that nan government's putting into nan grants they're providing?

Atul Bhatnagar

Paul, I didn't understand labour issue. Could you beryllium much specific?

Paul Essi

Well, labour – labour issues pinch rolling retired nan – rolling retired the, you know, installations, they mightiness beryllium your bottleneck?

Atul Bhatnagar

No, no, we person not heard that. We had those issues, I would opportunity successful 2020 first half and past 2020 2nd half small bit.2021,people figured retired really to work.w2022 no, I would not opportunity we person heard labour issues connected astatine slightest for our products.

Paul Essi

Okay. Well, convey you very much. That's each I have.

Atul Bhatnagar

Thanks, Paul.


Thank you. 1 infinitesimal for our adjacent question. And our adjacent mobility comes from Tim Savageaux pinch Northland Capital Markets. Your statement is open.

Tim Savageaux

Hey, bully afternoon. And bully quarter. So I wanted to opposition a batch of these positives that you've been discussing successful position of PMP, 6-gigahertz caller products 28-gig, I would ideate nan fibre merchandise would spell successful that bucket. Some backing for customers from nan government. So there's a batch of positives there, you look to beryllium guiding to very, very humble maturation is PMP successful 2023. Like, you know, low-single digits, maybe.

And I cognize there's benignant of immoderate recovery, possibly from nan seasonal diminution successful Q1, but, you know, I conjecture really do we contrast, are we seeing benignant of a autumn disconnected quicker than expected autumn disconnected of bequest products connected nan 1 hand, that's benignant of short-term, and past longer-term to get to your target, moreover if you presume Wi Fi is slowing. I mean, successful nan adjacent fewer years past 2023 twelvemonth maturation rates benignant of request to beryllium successful PMP benignant of request to beryllium wherever your endeavor maturation complaint is now 25%, 30%, thing for illustration that. Is that thing you person assurance in, aliases a statement of show to?

Atul Bhatnagar

Yes, Tim, convey you for nan question. An fantabulous question. Let maine springiness you much penetration into this. As I said earlier, I look for cardinal dollar deals. But past I cognize nan technologies are scaling. I deliberation that's happening connected 60-gigahertz. And moreover arsenic we speak, immoderate of nan networks we are conceiving, moreover pinch 60-gigahertz, nan numbers are now opening to beryllium 5,000 to 10,000 subscribers. So that gives america nan assurance that these caller platforms are not scaling, customers are deploying, and they're getting nan assurance that they tin genuinely supply fiber-like velocity wirelessly, that’s 60.

28 is simply a – 28 is driven by 5G standards. And I mentioned earlier, 2026, nan TAM of that marketplace for fixed wireless is astir 1.6 billion. And we person conscionable started nan 5G route. I deliberation what you will – nan opposition you will spot betwixt 60 and 28, 28, we are now arsenic I said, we person 20 POCs, 18 production, and customers are opening to scale. The quality will beryllium nan woody size connected 28 will beryllium acold larger, arsenic I said earlier, complete a three, 4 twelvemonth period, 5 to 10 times nan gross full woody size, because this is simply a licence frequency, personification has paid money, they really want to deploy.

But for fixed wireless broadband, lifecycle is astir 4 to 5 years still from nan commencement to finish. So I deliberation what we are describing is astir apt nan first 20, 25 percentile successful 2023, and astir apt half of 2024. And past we -- and this is what we person knowledgeable nan past 10 years. So we are sharing pinch you based connected really we person seen these technologies conscionable authorities they person a long, really long, agelong life successful that sense. So I deliberation that gives america nan assurance that arsenic nan gestation happens, aliases adjacent 3 years, that 40-40-20 PMP Enterprise and PTP is very, very realistic. Because we cognize nan marketplace sizes. We cognize wherever our strengths are. We cognize wherever our income teams and channels are. We are fantabulous channels, particularly for PMP markets.

So -- and this is what we did past 2 years post-COVID, conscionable focused connected these adjacent procreation platforms. And now we're opening to get nan assurance conscionable scaling that nan keywords, nan scaling, and they're being deployed. Fiber, while we are excited fibre will spell done nan aforesaid thing. Our endeavor quarters utilized to beryllium 2 million, 3 million, 4 cardinal for past fewer years. It took america clip to benignant of learn, scale, deploy. And now we are cranking northbound of $25 cardinal quarter. So that's what we do activity pinch customers intimately pinch them study and scale.

Andrew Bronstein

And conscionable springiness you a small spot much colour arsenic well, that you're correct that location will beryllium immoderate level of seasonality successful nan first 4th pinch PMP and revenues successful PMP. In nan first half of nan year, erstwhile you look astatine it connected a year-over-year ground will decline. But successful nan 2nd half of nan year, and this is really we specify getting backmost to really we specify occurrence is that we'll beryllium exiting nan twelvemonth pinch double-digit year-over-year and sequential 4th increases arsenic a consequence of nan caller products coming into marketplace and PMP and that will continue, we judge to accelerate it to 2024.

Tim Savageaux

Thanks very much. Sorry. Thanks very much. That was awesome color.

Atul Bhatnagar

Thanks, Tim.


Thank you. One infinitesimal for our adjacent question. And nan adjacent mobility comes from George Notter pinch Jefferies. Your statement is open.

George Notter

Hi, guys. Thanks very much. In nan past, you guys person talked a small spot astir what transmission inventory looks like, whether it was benignant of supra aliases beneath mean aliases average. Could you conscionable springiness america immoderate comments connected wherever you deliberation that is correct now?

Andrew Bronstein

Yeah. So erstwhile you break it down, I deliberation that nan transmission inventory connected nan endeavor broadside is simply a small spot higher than what it's been moving astatine complete nan people of nan past 12 months aliases so. Some of that is because of improvements successful proviso concatenation and lead times getting a small spot shorter arsenic good and nan expertise to present merchandise into nan distributors. So I deliberation that's what we're seeing connected endeavor somewhat higher connected nan PMP side, successful position of our inventory retired of distributors, it's really going nan different direction. And that's a motion of nan distributors getting fresh for immoderate of our caller products arsenic well. So, I deliberation it's somewhat balanced retired successful that fashion.

George Notter

Got it. And past I conjecture I was besides conscionable going to inquire astir proviso chain. I deliberation you benignant of answered it there. I mean, are you still seeing immoderate large holdups connected proviso concatenation aureate screw type issues, aliases do you deliberation products are flowing beautiful freely now from a manufacturing perspective?

Atul Bhatnagar

The George, first of each our each manufacturing subcontractors successful nan sites are unfastened and operating. As I said, proviso concatenation is improving. But I don't deliberation it's not yet normalcy. I deliberation it'd beryllium astir apt mid 2023 erstwhile it will scope -- for america astatine slightest mid-2023 pre-COVID normalcy. There are still shortages connected definite parts, but by and ample things person improved. And I deliberation moreover aft nan Chinese New Year, which is ever thing we watch carefully. This year, nary hiccups, factories are afloat open, logistics and freight are continually improving. So, truthful far, truthful good.

George Notter

Great, super. Thank you very much.

Atul Bhatnagar

Thanks, George.


Thank you. And we person a follow-up mobility from Scott Searle pinch ROTH Capital Partners. Your statement is open.

Scott Searle

Hey, conscionable speedy follow-up connected nan 6-gig front. I cognize you're looking astatine rolling a dual mode 6-gigahertz solution product. I thought, it was successful nan 2nd 4th astir CBRS, right. So it helps you circumvent immoderate issues arsenic it relates to reliability and bead funding. Just want to cheque connected nan advancement of that, make judge that that's still search for nan 2nd quarter. And what nan liking level is that you're seeing astatine slightest early connected successful dialogues pinch wireless ISPs and different carriers connected that front? Thanks.

Atul Bhatnagar

Yeah. So Scott, nan combo merchandise of 5 and six will very overmuch beryllium driven by nan chips availability. In nan beginning, nan 5-gigahertz and 6-gigahertz are 2 different products, and CBRS. CBRS 1 is simply a 3-gigahertz abstracted frequency, wholly different product.

So I deliberation this year, you will spot america very overmuch summation nan experience. And past attraction connected nan combo broadside based connected our acquisition pinch nan customers, and besides based connected readiness of chips and each that. So I don't deliberation nan combo portion will travel correct away, because I deliberation astir of our customers correct now are either deploying 5 aliases six. And CBRS is simply a wholly different product.

Scott Searle

Right. Thank you.

Atul Bhatnagar

Thanks, Scott.


Thank you. And our adjacent mobility comes from Timothy Horan pinch Oppenheimer. Your statement is open.

Timothy Horan

Thanks, guys. So you person five, six, aliases I conjecture almost 7 caller awesome products coming retired present now. Can you talk a small spot about, past clip you had this galore caller services, aliases are definite caller products coming retired and what nan effect was? And I mean, should we beryllium expecting a worldly measurement up and maturation successful 2024-2025 based connected each nan commentary that you person here? Thanks.

Atul Bhatnagar

Thanks, Tim. Yeah. So while location are caller products, if you look astatine erstwhile did we present them, a batch of it is astir gestation. 60 gigahertz really was introduced by us, almost 18 months back, it's conscionable that nan gestation is now reaching a constituent wherever customers understand really to deploy, they're scaling. 28 gigahertz we introduced about, twelvemonth backmost aliases truthful thing for illustration that. And that is besides opening to now participate a constituent wherever they're going to scale.

So I deliberation erstwhile we opportunity caller products, while -- we usage a caller platform, immoderate of them were introduced twelvemonth aliases year-and-half back, nan wholly caller stuff, which is coming now is simply a 6-gigahertz, which we conscionable introduced successful Q4 past twelvemonth astir 3 months backmost aliases so.

So these are different waves. And I deliberation nan measurement to deliberation astir this is arsenic customers are scaling nan network, they will not deploy each of them astatine nan aforesaid time. They will deploy depending connected nan region, terrain, they’ll deploy different wave and these will overlap complete time. And that's what gives america resiliency, because we now we person different wave for different countries and regions. We person different performances and different costs structures, for illustration 28 is simply a licence frequency. Only Tier 1s and Tier 2s tin spend that, truthful we are now moving pinch them versus six is simply a batch of consequence will usage -- 6-gigahertz is an hold of 5-gigahertz.

And 60-gigahertz is going some successful enterprise, arsenic I explained, arsenic good arsenic municipalities and west. So what you're seeing from Cambium is simply a wide wireless cloth serving immoderate very cardinal segments. And each 1 of them takes a small different clip to conscionable stay.

Timothy Horan

You know, I understand, but I mean, they're each benignant of hitting nan S-curve of nan take cycle, successful nan adjacent six to 8 -- successful nan adjacent six to 12 months. I mean, they're each hitting almost astatine nan aforesaid time. And nan aforesaid point pinch nan Wi-Fi products, it feels for illustration I know, they've each been addressed astatine different times. But for a full bunch of reasons. It does consciousness for illustration we should really spot a existent acceleration and 2024 and 2025. And I'm not trying to put words successful your mouth, but it does look for illustration they're each really hitting for 2024.

A – Atul Bhatnagar

Yes, Tim, I work together pinch you. I deliberation starting successful nan 2nd half, you will spot immoderate of nan acceleration, arsenic we mentioned, successful 6-gigahertz, for example, but 2024 2025, we will use from each these investments we person done successful past almost 18 months. That's an meticulous statement.

Timothy Horan

Thank you

Andrew Bronstein

Our merchandise cycles for nan older products arsenic well, that that conscionable successful position of its lifecycle will spell nan different direction, arsenic well. So conscionable support that successful mind.

Timothy Horan

And do person immoderate -- I cognize it's early to springiness guidance. But I mean, each things being equal, it should beryllium up from this year's maturation rate. Is that beautiful fair?

Andrew Bronstein

We really having gone done that level of guidance for our study for 2024 yet but we do -- we are for illustration we said, we are excited astir nan caller S-curves, particularly erstwhile you look retired complete nan adjacent 12 months. And you look astatine 60 years merchandise and nan level of measurement that that could mean successful starting a caller S-curve successful nan PMP broadside of nan business.

Timothy Horan

And do we person immoderate consciousness of nan TAM of nan 6-gigahertz product?

A – Atul Bhatnagar

Yes, I deliberation nan way, Tim, you want to deliberation astir this is 6-gigahertz is an hold of 5. And nan 5 – 5-gigahertz constituent to multipoint was astir a $1 cardinal TAM. The measurement you want to deliberation astir this is that $1 cardinal will churn and widen into nan 6-gigahertz. That's nan – astir apt nan easiest measurement to deliberation astir it.

Timothy Horan

Thank you.


I'm showing nary further questions astatine this time. I would now for illustration to move nan convention backmost to Peter Schuman, Vice President, Investor & Industry Analyst Relations for closing remarks.

Peter Schuman

Thank you, Amy. During Q1 2023 Cambium Networks will beryllium presenting a gathering pinch Investors connected March 7 astatine nan JMP Securities Technology Conference and connected March 14 astatine nan Ross Annual Conference. In nan meantime, you're ever invited to interaction our Investor Relations Department astatine 847-264-2188 pinch immoderate questions that arise. Thank you for joining america and this concludes today's call.


Ladies and gentlemen, that concludes today's quarterly net call. Thank you for your participation. You whitethorn now log off.

Editor: Naga

Read other contents from at
More Source