Cambium Networks Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue fluctuations and strategic developments. For Q3 2024, total revenues reached $43.7 million, a slight increase of 1.6% from $43.0 million in Q3 2023. However, for the nine-month period, revenues decreased significantly to $132.0 million from $180.0 million in the same period last year, reflecting a decline of 26.7%. This downturn was primarily attributed to reduced demand for Point-to-Multi-Point (PMP) and Point-to-Point (PTP) products, particularly in North America and Europe.

Gross profit for Q3 2024 was $17.4 million, up from $11.0 million in Q3 2023, resulting in a gross margin of 39.9%, an increase of 1,440 basis points year-over-year. Despite this improvement, the nine-month gross profit fell to $40.5 million from $79.9 million in the previous year, leading to a gross margin decline to 30.7% from 44.4%. Operating expenses for Q3 2024 decreased to $25.5 million from $33.1 million in Q3 2023, contributing to a reduced operating loss of $8.1 million compared to $22.1 million in the prior year. However, the net loss for the nine-month period increased to $45.3 million from $24.6 million in 2023.

Strategically, Cambium has initiated restructuring plans, incurring costs of approximately $1.0 million in Q3 2023 and an expected $1.5 to $2.5 million in a subsequent plan initiated in November 2023, primarily for employee terminations. As of September 30, 2024, the company had $22.8 million outstanding on its term loan and $45.0 million on its revolving credit facility, with effective interest rates of 8.85% and 8.66%, respectively. The company is currently seeking forbearance from Bank of America due to non-compliance with its quarterly EBITDA covenant and liquidity requirements.

Cambium's cash position improved significantly, with cash balances rising to $46.5 million as of September 30, 2024, up from $18.7 million at the end of 2023. The company is taking measures to enhance profitability, including deferring expenditures and reducing discretionary spending. However, substantial doubt exists regarding its ability to continue as a going concern, particularly if it fails to resolve its covenant compliance issues. The company is also facing a shareholder class action lawsuit alleging misleading statements, which could impact its financial condition.