 Revenues of 62.3 million, up 3 sequentially Gross margin of 48.9, non-GAAP1 gross margin of 49.2 Net income of 3.3 million or 0.13 per diluted share, non-GAAP1 net income of 4.3 million or 0.16 per diluted share Adjusted EBITDA1 of 7.7 million or 12.3 of revenues Net cash provided by operating activities 26.2 million Launched first in new series of Wi-Fi 6 access points and multi-gigabit enterprise switchesROLLING MEADOWS, Ill., Aug. 11, 2020 GLOBE NEWSWIRE -- Cambium Networks Corporation Cambium Networks NASDAQ: CMBM, a leading provider of wireless networking infrastructure solutions, today announced financial results for the second quarter 2020 ended June 30, 2020. GAAP Non-GAAP 1 in millions, except percentages Q2 2020 Q1 2020 Q2 2019 Q2 2020 Q1 2020 Q2 2019 Revenues 62.3 60.4 69.2 62.3 60.4 69.2 Gross margin 48.9 50.7 49.6 49.2 51.0 50.1 Operating margin 7.7 0.6 13.6 10.4 5.0 10.3 Adjusted EBITDA margin 12.3 7.3 11.8 1 Refer to Supplemental Financial Information accompanying this press release for a reconciliation of GAAP to non-GAAP numbers and for reconciliation of adjusted EBITDA for the second quarter ended June 30, 2020. Wireless broadband connectivity is vital and essential infrastructure for people around the world and is a lifeline for most communities, said Atul Bhatnagar, president and CEO. There is an increased secular need for fixed wireless broadband infrastructure. We are at the start of a new upgrade cycle to gigabit wireless solutions including our 60 GHz millimeter wave, CBRS solutions and emerging 5G products, and cloud powered enterprise Wi-Fi 6.Bhatnagar continued, Fixed wireless broadband is a critically important networking fabric being accelerated by 5G standards to connect our local communities and its importance proved especially true during the COVID pandemic. Our business strengthened during the second quarter 2020, and during a period of unprecedented uncertainty, our employees and global channel rose to the occasion. Cambium Networks is now leaner, delivering improved financial performance, and better positioned for our next stage of growth.Revenues of 62.3 million for the second quarter 2020 decreased 6.9 million year-over-year, as a result of softer demand for defense related products which impacted Point-to-Point revenues, lower demand for Point-to-Multi-Point products due to a technology transition, and the impact of global shutdowns and other restrictions imposed to combat the COVID pandemic to enterprise Wi-Fi solutions. Revenues for the second quarter 2020 increased by 1.9 million compared to 60.4 million for the first quarter 2020, driven by higher Point-to-Multi-Point revenues due to service providers scaling networks due to requests for increased capacity and better than anticipated field deployments, offset by lower demand for enterprise Wi-Fi solutions due to the impact of the COVID pandemic, and lower Point-to-Point revenues.GAAP gross margin for the second quarter 2020 was 48.9, compared to 49.6 for the second quarter 2019, and 50.7 for the first quarter 2020. GAAP operating income for the second quarter 2020 was 4.8 million, compared to an operating loss of 9.4 million during the second quarter 2019, and operating income of 0.4 million for the first quarter 2020. GAAP net income for the second quarter 2020 was 3.3 million, or net earnings of 0.13 per diluted share, compared to net loss of 20.4 million, or 1.47 per diluted share for the second quarter 2019, and net loss for the first quarter 2020 of 0.8 million, or a net loss of 0.03 per diluted share.Non-GAAP gross margin for the second quarter 2020 was 49.2, compared to 50.1 for the second quarter 2019, and 51.0 for the first quarter 2020. Non-GAAP operating income for the second quarter 2020 was 6.5 million, compared to 7.1 million for the second quarter 2019, and 3.0 million for the first quarter 2020. Non-GAAP net income for the second quarter 2020 was 4.3 million, or 0.16 per diluted share, compared to 3.9 million, or 0.15 per diluted share for the second quarter 2019, and 1.4 million, or 0.05 per diluted share for the first quarter 2020. For the second quarter 2020, adjusted EBITDA was 7.7 million or 12.3 of revenues, compared to adjusted EBITDA of 8.1 million or 11.8 of revenues for the second quarter 2019, and 4.4 million or 7.3 of revenues for the first quarter 2020.Cash provided by operating activities was 26.2 million for the second quarter 2020, compared to cash provided by operating activities of 6.0 million for the second quarter 2019, and 0.8 million cash used in operating activities for the first quarter 2020. Cash totaled 37.4 million as of June 30, 2020, 33.8 million lower than June 30, 2019, due primarily to the paydown of 40.5 million of long-term debt and increased by 13.0 million from March 31, 2020. The increase in cash balance for the second quarter 2020 from the first quarter 2020 was primarily the result of an increase in net income, strong cash collections resulting in a decrease in accounts receivable, an increase in accounts payable, a reduction in inventories, offset by a paydown of 10.0 million on the revolving credit facility.Second Quarter 2020 Highlights Revenues of 62.3 million, up 3 sequentially. GAAP net income of 3.3 million or 0.13 per diluted share, non-GAAP net income of 4.3 million or 0.16 per diluted share. Adjusted EBITDA of 7.7 million or 12.3 of revenues, compared to 8.1 million or 11.8 of revenues for the second quarter 2019, and 4.4 million or 7.3 of revenues for the first quarter 2020. Net cash provided by operating activities 26.2 million. Increased new channel partners by over 1,900 year-over-year, an increase of 35. Devices under cnMaestro Cloud management increased 52 year-over-year. Launched first in a new series of Wi-Fi 6 access points and multi-gigabit enterprise switches including an 802.3bz compliant switch supporting Wi-Fi 6 access point deployments.Third Quarter 2020 Financial Outlook Taking into account our current visibility, the financial outlook as of August 11, 2020 for the third quarter ending September 30, 2020 is expected to be as follows: Revenues between 64.0-67.0 million GAAP gross margin between 48.7-49.7; and non-GAAP gross margin between 49.0-50.0 GAAP operating income between 3.7-4.7 million; and non-GAAP operating income between 5.3-6.4 million GAAP net income between 1.9-2.5 million or between 0.07 and 0.09 per diluted share; and non-GAAP net income between 3.2-3.8 million or between 0.12 and 0.14 per diluted share Adjusted EBITDA between 6.4-7.4 million; and adjusted EBITDA margin between 10.0-11.1 GAAP taxes between 16.0-19.0; and a non-GAAP effective tax rate of approximately 17.0-19.0 Approximately 26.6 million weighted average diluted shares outstandingCash requirements are expected to be as follows: Paydown of debt: 2.5 million Interest expense: approximately 0.9 million Capital expenditures: 0.9-1.1 millionCambium Networks financial outlook does not include the potential impact of any possible future financial transactions, pending legal matters, or other transactions. Accordingly, Cambium Networks only includes such items in the companys financial outlook to the extent they are reasonable; however, actual results may differ materially from the outlook.Conference Call and WebcastCambium Networks will host a live webcast and conference call to discuss its financial results at 4:30 p.m. ET today, Aug. 11, 2020. To access the live conference call by phone, listeners should dial 1877 288-4394 in the U.S. or Canada and 1 470 495-9483 for international callers, referencing conference ID number 4078031. To join the live webcast and view additional materials, listeners should access the investor page of Cambium Networks website at Following the live webcast, a replay will be available on the investor page of Cambium Networks website for a period of one year. A replay of the conference call will be available for 48 hours soon after the call by phone by dialing 1 855 859-2056 in the U.S. or Canada and 1 404 537-3406 for international callers, using the conference ID number 4078031.In addition, Cambium Networks will hold one-on-one meetings with investors on Wednesday, Aug. 12, 2020 at the Oppenheimer Technology, Internet, and Communications Conference and on Tuesday, Sept. 1, 2020 at the Jefferies 2020 Virtual Semiconductor, IT Hardware and Communications Infrastructure Summit Conference. President and CEO, Atul Bhatnagar, will present on Monday, Sept. 14, at 10:05 a.m. ET, at the Deutsche Bank Technology Conference. All conferences will be held virtually. To join the live webcast for the Deutsche Bank Technology Conference, listeners should access the investor page of Cambium Networks website Following the live webcast, a replay will be available in the event archives at the same web address.About Cambium NetworksCambium Networks empowers millions of people with wireless connectivity worldwide. Its wireless portfolio is used by commercial and government network operators as well as broadband service providers to connect people, places and things. With a single network architecture spanning fixed wireless and Wi-Fi, Cambium Networks enables operators to achieve maximum performance with minimal spectrum. End-to-end cloud management transforms networks into dynamic environments that evolve to meet changing needs with minimal physical human intervention. Cambium Networks empowers a growing ecosystem of partners who design and deliver gigabit wireless solutions that just work. 