Q1 2024 Cambium Networks Corp Earnings Call

Okay.

Therese: Good afternoon. My name is Therese, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Cambium Networks first quarter 2024 financial results conference call. All lines have been placed on mute to prevent any background noise.

Good afternoon.

Therese: Name is Jerry and I'll be your conference operator today.

Therese: At this time I would like to welcome everyone to Cambium Networks' first quarter 'twenty 'twenty four financial results conference call.

Therese: All lines have been placed on mute to prevent any background noise.

Therese: After the speaker's remarks, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your questions, please press star 11 again. Please limit your questions to one and one follow-up. Please be advised that today's conference is being recorded. Thank you. Mr. Peter Schuman, Vice President, Investor, Industry Analyst, and Public Relations. You may begin your conference.

Therese: After the Speakers' remarks, there will be a question and answer session.

Therese: To ask a question. During this session you will need to press star one one on your telephone.

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Peter Schuman: Please limit your questions to one question and one follow up.

Peter Schuman: Please be advised that today's conference is being recorded.

Peter Schuman: Thank you.

Therese: Mr. Peter Schuman, Vice President Investor Industri industry Analyst and public relations you May begin your conference. Thank you Teresa welcome and thank you for joining us today for Cambium Networks' first quarter 2024 financial results conference call and welcome to all those joining by webcast working Kurt our CEO and Jamie.

Peter Schuman: Thank you, Therese. Welcome and thank you for joining us today for Cambium Networks' first quarter 2024 financial results conference call, and welcome to all those joining by webcast. Morgan Kurk, our CEO, and Jacob Sayre, our CFO, are here for today's call. The results, press release, and CFO commentary referenced in this call are accessible on the investor page of our website, and the press release has been submitted on Form 8K with the SEC.

Peter Schuman: Jacob Sayer, our CFO are here for today's call press release.

Peter Schuman: The results press release, and CFO commentary referenced on this call are accessible on the Investor page of our website and the press release.

Peter Schuman: Form 8-K, with the SEC a copy of today's prepared remarks will also be available on our investor page at the conclusion of this call.

Peter Schuman: A copy of today's prepared remarks will also be available on our investor page at the conclusion of this call. As a reminder, today's remarks, including those made during Q&A, will contain forward-looking statements about the company's outlook and forecasted performance. These statements are based on current conditions, forecasts, and assumptions, but risk and uncertainties could cause actual results to differ materially. Except as required by law, Cambium Networks does not undertake any obligation to update or revise any forward-looking statements for any reason after the date of this presentation, whether as a result of new information, future developments, to conform these statements to actual results, or to make changes in Cambium's expectations or otherwise. It is Cambium Networks' policy not to reiterate its financial outlook.

Peter Schuman: As a reminder, today's remarks, including those made during Q&A will contain forward looking statements about the company's outlook and forecasted performance.

Peter Schuman: These statements are based on current conditions forecast assumptions risks and uncertainties could cause actual results to differ materially.

Peter Schuman: Except as required by law Cambium networks does not undertake any obligation to update or revise any forward looking statements for any reason after the date of this presentation, whether as a result of new information future developments to conform these statements to actual results or make changes at cambium specs expectations or otherwise.

Peter Schuman: Cambium Networks' policy not to reiterate our financial outlook in parks listeners to review the oldest the risk factors included in the Safe Harbor statement in today's financial results press release, and our most recent form.

Peter Schuman: 10, Qs 10, Ks filed with the SEC, We will also reference both GAAP and non-GAAP financial measures and specifically note that all sequential and year over year comparisons reference non-GAAP numbers, except where otherwise noted a reconciliation of non-GAAP measures to GAAP is included in the appendix to today's financial results press release, which.

Peter Schuman: We encourage listeners to review the full list of risk factors included in the Safe Harbor Statement, today's financial results press release, and our most recent Form 10-Qs and 10-Ks filed with the SEC. We will also reference both GAAP and non-GAAP financial measures and specifically note that all sequential and year-over-year comparisons reference non-GAAP numbers except as otherwise noted. A reconciliation of non-GAAP measures to GAAP is included in the appendix to today's financial results press release, which can be found on the investor page of our website and in today's press release announcing our results.

Peter Schuman: It can be found on the Investor page of our website and in today's press release announcing our results.

Peter Schuman: Turning to the agenda, Morgan will provide the key operational highlights for the first quarter of 2024, and Jacob will provide a recap of the financial results for the first quarter of 2024, and we'll discuss our financial outlook for the second quarter and full year 2024. Our prepared remarks will also be followed by

Peter Schuman: Turning to the agenda working will provide the key operational highlights for the first quarter 2024, and Jacob will provide a recap of the financial results for the first quarter 2024, and we'll discuss our financial outlook for the second quarter and full year 2020 for our prepared remarks will also be followed by a question and answer.

Peter Schuman: I'd now like to turn the call over to Morgan.

Morgan C. S. Kurk: I want to begin by first introducing Jacob Sayre, our new CFO. For those of you who didn't see our press release, Jacob joined Cambium from Sunsata Technologies, a global industrial technology company with over $4 billion in revenue, where he was most recently VP of Finance and Head of Investor Relations and previously held divisional CFO roles for the various segments of Sensata. Jacob has 15 years of experience with technology companies and another 17 years of experience in various investment banking roles.

Morgan: Thank you Peter.

Peter Schuman: I want to begin by first introducing Jacob Sayer, our new CFO for those of you who didn't see our press release Jacob joined Cambium from some sort of technologies, a global industrial technology company with over $4 billion in revenue, where he was most recently VP of finance.

Morgan C. S. Kurk: <unk> head of Investor Relations and previously held divisional CFO roles for the various segments of C. J.

Morgan C. S. Kurk: Jacob has 15 years of experience with technology companies and another 17 years of experience in various investment banking rolls. We're pleased to have them onboard to help drive operational excellence strategy growth and value creation.

Morgan C. S. Kurk: We're pleased to have him on board to help drive operational excellence, strategy, growth, and value creation. I would also like to thank John Becerril for stepping up as interim CFO for the past quarter. As expected, the FCC finished the process for the long-awaited approval of 6 gigahertz spectrum in Q1, although later in the quarter than we had hoped, leading to lower than anticipated shipments of our point-to-multipoint PMP product. In the last week of the quarter, Cambium received final approval for our EPMP4600 6GHz AccessPoint products and standard power subscriber modules, with high power subscriber modules expected to be approved in May

Morgan C. S. Kurk: I would also like to thank John first of all for stepping up as interim CFO for the past quarter.

Morgan C. S. Kurk: As expected the FCC finish the process the long awaited approval of six gigahertz spectrum in Q1, although later in the quarter than we had hoped leading to lower than anticipated shipments of our point to Multipoint TMT products.

Morgan C. S. Kurk: In the last call in the last week of the quarter Cambium received final approval for our <unk> 40, 606 gigahertz access point products and standard power subscriber markets with high power subscriber module is expected to be approved in may.

Morgan C. S. Kurk: Summary of the performance of Q1-24. Revenues for Q1'24 were $43.2 million. The shortfall to guidance was mostly related to delays in defense orders in North America and Europe in the point-to-point PTP business, which decreased 34% sequentially.

Morgan C. S. Kurk: Summarizing the procurements of Q1 'twenty four.

Morgan C. S. Kurk: Revenues for Q1, 'twenty four were $43 2 million.

Morgan C. S. Kurk: Shortfall to guidance was mostly related.

Morgan C. S. Kurk: Delays in defense orders in North America, and Europe in the point to point, PTP business, which decreased 34% sequentially.

Morgan C. S. Kurk: We expect sequential increases in this portion of business throughout 2024. However, our PMP business in North America was slower than anticipated, decreasing 14% due to the aforementioned timing of the 6GHz product approval process by the FCC late in the first quarter. The FCC approval is anticipated to drive sales of Cambium's new 6GHz ePMP4600 and PMP450V product lines, both of which are available today. On a positive note, enterprise revenues improved 231% sequentially as demand improved and channel inventories levels declined.

Morgan C. S. Kurk: We expect sequential increases in this portion of the business throughout 2024.

Morgan C. S. Kurk: Our PMT business in North America was slower than anticipated decreasing 14% due to the aforementioned timing of the six gigahertz product approval process by the FCC late in the first quarter.

Morgan C. S. Kurk: SEC approval is anticipated to drive sales of <unk>, new six gigahertz, <unk> 4600, and PMT for 50, B product lines, both of which are available today.

Morgan C. S. Kurk: On a positive note enterprise revenues improved 231% sequentially as demand improved and channel inventories levels to decline.

Morgan C. S. Kurk: Also in April, we launched our first Wi-Fi 7 product. While revenues came in only slightly below our outlook, gross margin did not meet expectations due primarily to an increase in reserves for excess and obsolete inventory of finished goods and components. We did see improved product mix sequentially during Q1-24 as a result of increased enterprise revenues, and we maintained good cost controls and tightly managed our operating expenses. However, sales of Cambium's products out of the distribution channel as reported by its distributors were higher for Q1-24 than Cambium's reported revenues, and we saw corresponding declines in channel inventory.

Morgan C. S. Kurk: Also in April we launched our first Wi Fi seven product.

Morgan C. S. Kurk: While revenues came in only slightly below our outlook gross margin did not meet our expectations due to due primarily to an increase in reserves for excess and obsolete inventory of finished goods and components. We did see improved product mix sequentially. During Q1 'twenty four as a result of the increased enterprise revenues and we may.

Morgan C. S. Kurk: And good cost controls and tightly managed our operating expenses.

Morgan C. S. Kurk: Sales of cambium as products out of the distribution channel as reported by Cambium as distributors were higher for Q1, 'twenty four than <unk> reported revenues and we saw a corresponding declines in channel inventories.

Morgan C. S. Kurk: We continue to make good progress in clearing channel inventories, and in aggregate, the inventories are approaching healthy levels. We are diligently monitoring and managing channel inventories at shorter lead times and increased costs of capital, which may drive different behaviors by distributors than in the past. As communicated previously, we expect channel inventories to be back to normal by the end of Q2-24, which will result in sales in and sales out approaching equilibrium.

Morgan C. S. Kurk: We continue to make good progress and cleaner cleaning clearing channel inventories and in aggregate. The inventories are approaching healthy levels. We are diligently monitoring and managing channel inventories as shorter lead times and increased cost of capital may drive different behaviors by distributors and in the past.

Morgan C. S. Kurk: As communicated previously we expect channel inventories to be back to normal by the end of Q2, 'twenty four which will result in sales in and sales out approaching equilibrium. This should drive incremental improvements of sales into the channel and therefore, an incremental improvement to revenues.

Morgan C. S. Kurk: This should drive incremental improvements in sales into the channel and, therefore, an incremental improvement in revenue, looking at some customer wins that are key to our future success. In the U.S., our enterprise business had a sizable win with the New Orleans Convention Center, a project which is expected to ship throughout the year. This win includes over $1 million of enterprise gear and was the result of Cambium's ability to deliver industry-leading performance in a unique, high-density, dynamic deployment. The entire upgraded system will run on our CN Maestro X single-plane-of-glass management system. Flexibility in dynamic reconfiguration is critical for the center and demonstrates the versatility of Cambium's solutions.

Morgan C. S. Kurk: Looking at some customer wins that are key to our future success.

Morgan C. S. Kurk: In the U S. Our enterprise business had a sizable win with the New Orleans Convention Center project, which is expected to ship throughout the year.

Morgan C. S. Kurk: This win includes over $1 million of enterprise gear. It was the result of cambium <unk> ability to deliver industry, leading performance in a unique high density dynamic.

Morgan C. S. Kurk: The entire upgraded system will run on our CMI strove ex single pane of glass management system, the flexibility and dynamic reconfiguration is critical for the center and demonstrates the versatility of cambium solutions.

Morgan C. S. Kurk: In Australia, Glencore, one of the largest mining companies in the world, selected Cambium's One Network to deploy and manage Cambium's fiber and Wi-Fi upgrade for a large mining camp. This deployment will consist of a mix of over 350 indoor and outdoor Wi-Fi access points and Cambium's fiber ONTs, all managed by CN Meister. The combination of indoor and outdoor Wi-Fi and PON-based interconnection from a single vendor results in a tightly integrated, cost-effective, and efficient network.

Morgan C. S. Kurk: In Australia, Glencore, one of the largest mining companies in the World selected Cambium, one network to deploy and manage cambium <unk> fiber and Wi Fi upgrade for them are combining cap. This deployment will consist of a mix of over 350 indoor and outdoor Wi Fi access points and <unk>.

Morgan C. S. Kurk: Fiber Owen Ts all managed by CN Maestro.

Morgan C. S. Kurk: The combination of indoor and outdoor Wi Fi and PON based inter connectivity from a single vendor results in a tightly integrated cost effective and efficient solutions efficient network.

Morgan C. S. Kurk: In the PMP space, we have a significant win, with a wireless service provider in Kenya, Safaricom, for a three-year deal to roll out residential and business connectivity using our ePMP product line. Cambium One based on technical strength, ease of deployment, and the cost-effectiveness of the solution. Now turning to upcoming product introductions since our previous quarterly update.

Morgan C. S. Kurk: In the PMT space, we had a significant win.

Morgan C. S. Kurk: With a wireless service provider in Kenya Safari Com for a three year deal to rollout residential and business connectivity using our <unk> product line cambium, one based on tactical strength ease of deployment and the cost effectiveness of the solution.

Morgan C. S. Kurk: Now turning to upcoming product introductions since our previous quarterly update.

Morgan C. S. Kurk: In March, we announced our first Wi-Fi 7 access point with the launch of our new X7-35X tri-radio, tri-band, 2 plus 2 plus 2 unit. Wi-Fi 7 is another step forward in wireless connectivity, offering data speeds reaching up to 9.2 gigabits, ensuring lightning fast downloads. Seamless Streaming and Lag-Free Experience. While pushing the boundaries of performance, Wi-Fi 7 remains backwards compatible with all previous Wi-Fi standards. Wi-Fi 7 works with Cambium's Cloud Managed or On-Prem CM Maestro Management System for secure end-to-end network control.

Morgan C. S. Kurk: In March we announced our first Wi Fi access point with the launch of our New X 735, ex Tri radio Tri band two plus two plus two units.

Speaker Change: Well Kevin this is another step forward in wired and wireless connectivity offering operating data speeds, reaching up to $9 two gigabits, ensuring lightning fast downloads.

Morgan C. S. Kurk: Seamless streaming and lag free experiences.

Morgan C. S. Kurk: While pushing the boundaries for performance Wi Fi seven remains backwards compatible with all previous Wi Fi standards.

Morgan C. S. Kurk: <unk> works with cambium.

Morgan C. S. Kurk: Networks cloud managed or on Prem Siem Maestro management system for secure end to end network control.

Morgan C. S. Kurk: Finally, total devices under CN Maestro Cloud Management in Q1-24 increased approximately 4% from Q4-23 and were up 15% year over year. I will now turn the call over to Jacob for a review of our Q1-2024 financial results and Q2-2024 and full year 2024 financial outlook.

Morgan C. S. Kurk: Finally, total devices under CMI stroke cloud management in Q1, 24 increased approximately 4% from Q4, 2003 and were up 15% year over year.

Morgan C. S. Kurk: I'll now turn the call over to Jacob for a review of our Q1 'twenty four financial results and Q2, 'twenty four and full year 2024 financial outlook.

Jacob Sayre: While the Q1-24 results are below expectations... We do see the business beginning to improve, and we can now look forward. The P124 revenue shortfall was isolated to delays in government orders in the P2P business and the timing of approval for the 6 GHz PNP solution, later in the quarter, the impacts of which we expect to be behind us.

Jacob: Thank you Mark.

Jacob: While the Q1 'twenty four results are below expectations.

Jacob Sayre: We do see the business beginning to improve and can now look forward to growth.

Jacob Sayre: 124 revenue shortfall was isolated to delays in government orders in the pizza business and the timing of approval for the six gigahertz Pnp solutions later in the quarter than expected.

Jacob Sayre: The impacts of which we expect to be behind us shortly.

Jacob Sayre: Q124 results included additional inventory charges and additional supplier commitments, which impacted gross margins by approximately $7 million and reflect the current state of the markets and product demand. Without these charges, gross margins would have been approximately 39.2 percent, which would have been closer to the original forecast at the start of the quarter, but only slightly lower due to the impact of NICs within defense products and P2P. We continue to work hard on managing our operating costs to align with the current forecast for 2024 and are focusing resources on those products and projects that are most critical for Cambium's future. For the quarter, Cambium reported revenues of $42.3 million for Q1'24. revenues increased by 5% or $2.1 million sequentially.

Jacob Sayre: Q1, 'twenty four results included additional inventory charges and additional supplier commitments, which impacted gross margins by approximately $7 million and reflect the current state of the markets and product demand.

Jacob Sayre: Without these charges gross margins would have been approximately 39, 2%, which would've been closer to the original forecast at the start of the quarter, but only slightly lower due to the impact of mix within defense products and PDP.

Jacob Sayre: We continue to work hard on managing our operating costs to align with the current forecast for 2024 and are focusing resources on those products and projects that are most critical for future success.

Jacob Sayre: The majority of the increase in revenues was the result of improved order volume for our enterprise business in both North America and Europe, albeit from a low base. However, PMB revenues decreased 14% quarter over quarter due to delayed timing approval for six gigahertz products in the United States and the Territory. This was partially offset by some recovery for the PMP business in Europe during Q124. However, D2P defense revenues were lower due to delays for defense orders in Europe and North America after a strong year-end, by region.

Jacob Sayre: Turning to the quarter Cambium reported revenues of $42 3 million for Q1 'twenty for.

Jacob Sayre: Revenues increased by 5% or $2 $1 million sequentially.

Jacob Sayre: The majority of the increase in revenues was the result of improved order volume for our enterprise business in both North America, and Europe, albeit from a low base.

Jacob Sayre: While <unk> revenues decreased 14% quarter over quarter due to the delayed timing approval for six gigahertz products in the United States and territories.

Jacob Sayre: This was partially offset by some recovery for the PMT business in Europe.

Jacob Sayre: During Q1 'twenty four.

Jacob Sayre: DCP defense revenues were lower due to delays or defense orders in Europe, and North America. After a strong year end results.

Jacob Sayre: Europe increased 146% sequentially as a result of the recovery in the enterprise business, while other regions decreased, with North America lower by 7% due to timing of defense orders impacting the P2P business and delays in the approval for 6 GHz products hurting the PMP business, while Cala dropped by 8%, and Asia decreased by 10%. Moving on to our gross margin, Our non-GAAP gross margin for Q1'24 was 22.7% compared to a negative 25.1% in Q4'23.

Jacob Sayre: By region.

Jacob Sayre: Europe increased 146% sequentially as a result of recovery in the enterprise business, while other regions decreased with North America, lower by 7% due to timing of defense orders impacting the PSD business and delays in the approval for six gigahertz products hurting the PMT business.

Jacob Sayre: While kalla dropped by 8% and Asia decreased by 10% sequentially.

Jacob Sayre: Moving onto our gross margins are.

Jacob Sayre: Our non-GAAP gross margin for Q1, 'twenty four was 22, 7% compared to a negative 25, 1% in Q4 2003.

Jacob Sayre: The higher quarter-over-quarter non-GAAP gross margin was primarily the result of lower rebates and higher enterprise revenues and lower freight costs, although we were once again impacted by the need to increase inventory reserves and had a lower mix of higher-margin defense. In Q124, our non-GAAP gross profit of $9.6 million was higher by $19.7 million sequentially due to lower excess inventory charges, higher enterprise revenues, and lower returns. Non When compared to Q4-23, non-GAAP operating expenses were approximately flat during Q1-24.

Jacob Sayre: The higher quarter over quarter non-GAAP gross margin was primarily the result of lower rebates and higher enterprise revenues and lower freight costs. Although were once again impacted by the need to increase inventory reserves and had a lower mix of high margin higher margin defense products.

Jacob Sayre: In Q1, 'twenty four our non-GAAP gross profit of $9 $6 million was higher by $19 $7 million sequentially due.

Jacob Sayre: Due to lower excess inventory charges.

Jacob Sayre: Enterprise revenues and lower rebates.

Jacob Sayre: non-GAAP total operating expenses, including depreciation and amortization in Q1, 'twenty four stood at $26 $4 million or 62, 3% of revenues.

Jacob Sayre: When compared to Q4 23, non-GAAP operating expenses were approximately flat during Q1 'twenty for the quarter over quarter operating expenses and higher G&A.

Jacob Sayre: The quarter-over-quarter operating expenses had higher G&A due to increased professional services and higher bad debt expenses, offset by lower payroll and less spending on R&D. Our non-GAAP net loss for Q1'24 was $12.7 million, or a loss of $0.46 per diluted share. That was below our outlook for Q1'24 and compared to a non-GAAP net loss of $28.2 million, or a loss of $1.01 per diluted share, during Q4. Adjusted EBITDA for Q1'24 was a loss of $15.5 million compared to a loss of $35.2 million in Q4'22.

Jacob Sayre: Due to increased professional services and higher bad debt expense offset by lower payroll and less spending on R&D materials.

Jacob Sayre: Our non-GAAP net loss for Q1, 'twenty four was $12 7 million.

Jacob Sayre: Or loss of <unk> 46 per diluted share that was below our outlook for the quarter.

Jacob Sayre: And compared to a non-GAAP net loss of $28 2 million or a loss of $1.01 per diluted share during Q4 'twenty right.

Jacob Sayre: Adjusted EBITDA for Q1, 'twenty four was a loss of $15 5 million compared to a loss of $35 2 million.

Jacob Sayre: Moving to cash flow. Cash used in operating activities was $15.6 million for Q1-24 and compares to cash used in operating activities of $6.2 million for Q4-23. During Q124, we continue to execute on converting receivables into cash and managing working capital closely, offset by the net loss. Burning to the Balance.

Jacob Sayre: In Q4 23.

Jacob Sayre: Moving to cash flow cash used in operating activities was $15 6 million for Q1, 'twenty four and compares to cash used in operating activities of $6 2 million for Q4 'twenty three.

Jacob Sayre: During Q1 'twenty four we continued to execute on converting receivables into cash and managing working capital closely offset by the net loss.

Jacob Sayre: Cash totaled $38.7 million as of March 31, 2024, an increase of $20 million from Q4'23. The sequential increase in cash primarily reflects a draw of $40 million on the company's $45 million revolver, partially offset by a net loss. Material Purchases to Suppliers and Capital Expansion. As we look forward, we are focused on conserving cash by minimizing operating expenses, lowering capital expenditures, and continuing to convert inventory into revenue. We expect to be EBITDA positive during the second half of calendar 2024 and have reduced our breakeven profitability to below a $60 million quarterly revenue run rate. Net revenues. Sorry, net inventories of $55.6 million in Q1'24 decreased by $11.3 million from Q4'23. Net inventories were lower sequentially, driven by both consumption and due to higher reserves.

Jacob Sayre: Turning to the balance sheet cash.

Jacob Sayre: Cash totaled $38 7 million as of March 31, 2024, an increase of $20 million from Q4 2003, the sequential increase in cash primarily reflects a draw of $40 million on the companys $45 million revolver.

Jacob Sayre: Partially offset by the net loss.

Jacob Sayre: Material purchases to suppliers and capital expenditures.

Jacob Sayre: As we look forward, we are focused on conserving cash by minimizing operating expenses lowering capital expenditures and continuing to convert inventory into revenues.

Jacob Sayre: We expect to be EBITDA positive during the second half of calendar 2024, and have reduced our breakeven profitability to below $60 million quarterly revenue run rate.

Jacob Sayre: Net revenues, sorry, net inventories of $55 6 million in Q1, 'twenty four decreased by $11 3 million from Q4 'twenty three.

Jacob Sayre: Inventories were lower sequentially, driven by both consumption and due to higher reserves.

Jacob Sayre: As a reminder, our goal for 2024 is to reduce our inventory's balance to closer to $40 million. In summary, first quarter revenues turned out slightly lower than anticipated because of delays in the timing of defense shipments, as well as the FCC granting approval of six gigahertz spectrum later in the quarter than we had hoped. Ambient expects to soon receive its final approval for 6 gigahertz EPMP high power products.

Jacob Sayre: As a reminder, our goal for 2024 is to reduce our inventories balanced or closer to $40 million.

Jacob Sayre: In summary, first quarter revenues turned out slightly lower than anticipated because of delays in timing of defense shipments as well as the FCC granting approval of six gigahertz spectrum later in the quarter than we had hoped.

Jacob Sayre: <unk> expects to soon receive our final approval for six gigahertz <unk> high power products.

Jacob Sayre: On a positive note, we had higher enterprise revenue as market conditions are starting to improve. Our gross margin improved sequentially as a result of lower rebates, higher enterprise revenues, and a very competitive business environment. We continue to see improvements in channel inventories and remain vigilant about managing costs, which should benefit future operating performance. During Q124, we saw an improving start for enterprise business as channel inventories continued to decline. As we regain scale for enterprise, we expect to improve our operational efficiency each quarter this year.

Jacob Sayre: On a positive note, we had higher enterprise revenue as market conditions are starting to improve our.

Jacob Sayre: Our gross margin improved sequentially as a result of lower rebates and higher enterprise revenues in a very competitive business environment.

Jacob Sayre: We continue to see improvements in channel inventories and remain vigilant about managing costs, which should benefit future operating performance.

Jacob Sayre: During Q1 'twenty four we saw an improving start for enterprise business as the channel inventories continue to decline.

Jacob Sayre: As we regain scale for enterprise, we expect to improve our operational efficiency each quarter. This year.

Jacob Sayre: For the PMP business, we now have approval by the FCC of the six gigahertz spectrum, which will help that business. For the P2P business, we are pursuing several large defense opportunities. And we continue to work to consolidate a smaller number of products into a smaller number of product platforms for our overall business over the next few years.

Jacob Sayre: For the PMT business, we now have approval by the FCC of the six gigahertz spectrum, which will help that business.

Jacob Sayre: For the <unk> business, we are pursuing several large defense opportunities.

Jacob Sayre: And we continue to work to consolidate a smaller number of product to a smaller number of product platforms for our overall business for the next few years.

Jacob Sayre: Moving to the second quarter and full year 2024 financial outlook. Cambium Networks' financial outlook does not include the potential impact of any possible future financial transactions, acquisitions, pending legal matters, or other transactions. Considering our current visibility, our Q2-24 financial outlook is as follows: revenues between $43 to $48 million, representing growth of approximately 2% to 13% sequentially, non-gap gross margins of between 40 to 42 percent, non-GAAP operating expenses, including DNA, between $24.6 to $25.6 million, leading to a non-gap operating loss between $5.4 to $7.4 million.

Jacob Sayre: Moving to the second quarter and full year 2024, our financial outlook.

Jacob Sayre: Liam Networks' financial outlook does not include the potential impact of any possible future financial transactions acquisitions pending legal matters or other transactions.

Jacob Sayre: Considering our current visibility our Q2 24 financial outlook is as follows.

Jacob Sayre: Revenues between $43 million to $48 million representing.

Jacob Sayre: Representing growth of approximately 2% to 13% sequentially.

Jacob Sayre: non-GAAP gross margins of between 40% to 42%.

Jacob Sayre: non-GAAP operating expenses, including DNA between $24 six to $25 $6 million.

Jacob Sayre: Leading to a non-GAAP operating loss between five 4% to $7 4 million.

Jacob Sayre: Interest expense net is expected to be approximately $1.8 million, and the non-GAAP net loss is between $5.4 million to $6.9 million, or a net loss per diluted share between 19 and 24 cents. Adjusted EBITDA is expected to be between negative $4.2 to negative $6.2 million, and the adjusted EBITDA margin is between negative $8.8 to negative $14.4 million. We expect a non-gap tax benefit of approximately 25%, and we expect to have about 28 million weighted average due-added shares out there.

Jacob Sayre: Interest expense net is expected to be approximately $1 8 million and non-GAAP loss net loss of between $5 4 million to $6 9 million or net loss per diluted share between <unk> 19 to <unk>.

Jacob Sayre: Adjusted EBITDA is expected to be between negative $4 two to negative $6 2 million and adjusted EBITDA margin between negative $8 eight to negative <unk> 14, 4%.

Jacob Sayre: We expect a non-GAAP tax tax benefit of approximately 25% and we expect to have about 28 million weighted average diluted shares outstanding.

Jacob Sayre: Cash requirements are expected to be as follows in Q2, first a pay-down of debt of $700,000, cash interest of approximately $1.7 million, and capital expenditures between $1.5 and $2.5 million. Our full year 2024 financial outlook is expected to be as follows. Revenues between $205 to $225 million, representing a decrease of 7% to up 2%, non-gap gross margins of approximately 40%, non-GAAP net loss between $11.6 million to a net loss of $18 million, or a loss of between $0.41 to $0.64 per unit share. Adjusted EBITDA margin between negative 2.2 to negative 6.8. And for the year, capital expenditures are expected to be approximately $9 to $11 million.

Jacob Sayre: Cash requirements are expected to be as follows in Q2 first to pay down of debt of $700000 cash interest of approximately $1 7 million and capital expenditures between one five and $2 5 million.

Jacob Sayre: Our full year 2024 financial outlook is expected to be as follows.

Jacob Sayre: Revenues between $205 million to $225 million, representing a decrease of 7% to up 2%.

Jacob Sayre: non-GAAP gross margins of approximately 40%.

Jacob Sayre: non-GAAP net loss between $11 6 million to a net loss of $18 million or a loss of between <unk> 41 to 64 per diluted share.

Jacob Sayre: Adjusted EBITDA margin between negative $2 two to negative six 8%.

Jacob Sayre: And for the year capital expenditures are expected to be approximately 9% to $11 million.

Jacob Sayre: I'll now turn the call back to Morgan for some closing remarks.

Jacob Sayre: We continue to work with our channel and end customers to manage inventory and improve efficiency while maintaining service levels. This has and continues to impact revenue.

Jacob Sayre: We continue to work with our channel and end customers to manage inventory and improve efficiency, while maintaining service levels. This has and continues to impact revenue. However, we believe we started this work earlier than others and expect equilibrium to occur by the end of Q2.

Jacob Sayre: However, we believe we started this work earlier than others and expect equilibrium to occur by the end of Q2. We continue to focus on our internal processes to ensure that we don't overcorrect and fail to meet our customers' demand while minimizing inventory throughout the supply chain. Our PMP business is well positioned to grow with the newly released 6 GHz spectrum as our WISP customers compete with other broadband solutions on speed and reliability.

Jacob Sayre: We continue to focus on our internal processes to ensure that we don't over correct and failed to meet our customers' demand while minimizing inventory throughout the supply chain.

Jacob Sayre: Our <unk> business is well positioned to grow with the newly released six gigahertz spectrum as our customers compete with other broadband solutions on speed and reliability.

Jacob Sayre: Our platforming activities continue to progress with both architectural decisions and the beginnings of development of both hardware and software. While the benefits from these initiatives will be in the future, they are one of the most important actions we can take to impact our long-term prospects, driving faster initial development, decreasing feature implementation time, and lowering costs. After my initial review of the business last fall, over the past three months, I've been working with our go-to-market teams and our customers to make sure where we are going is aligned with where our customers need to go in our highly competitive market.

Jacob Sayre: Our platforming activities continue to progress with both architectural decisions and the beginnings of development at both hardware and software while the benefits from these initiatives will be in the future as one of the most important actions, we can take to impact our long term prospects driving faster initial development decreasing feature implementation.

Jacob Sayre: Time and lowering costs.

Jacob Sayre: After my initial review of the business last fall over the past three months I've been working with our go to market teams and our customers to make sure where we're going is aligned with where our customers need to go in our highly competitive markets I am pleased with the level of access cambium has to its end customers and the interest our channel has been driving.

Jacob Sayre: I am pleased with the level of access Cambium has to its end customers and the interest our channel has in driving the business forward. I intend to continue to be directly involved with our sales force and customers to ensure that the direction we're going and the decisions we're making are fully aligned. While there continue to be challenges both internally and throughout the industry, I'm encouraged by how we meet these challenges, solve problems efficiently and effectively, and help move the industry forward.

Jacob Sayre: The business forward.

Jacob Sayre: I intend to continue to be directly involved with our sales force and customer base to ensure that the direction were going and the decisions. We are making are fully aligned.

Jacob Sayre: There continue to be challenges, both internally and throughout the industry I'm encouraged.

Jacob Sayre: How we meet these challenges solve problems efficiently and effectively and how it will be industry forward.

Jacob Sayre: I'd like to share my continued appreciation for the efforts and collaboration of our employees, partners, customers, as well as investor support. With that, I'd like to turn the call over to Therese and begin the Q&A session.

Jacob Sayre: I'd like to share my continued appreciation for the efforts and collaboration of our employees partners customers as well as the investor support.

Therese: With that I'd like to turn the call over to <unk> and begin the Q&A session.

Therese: As a reminder, to ask a question, you will need to press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. And again, we do ask that you limit your questions to one question and one follow-up question. Please stand by while we compile the Q&A. Our first question today comes from Scott Searle with Ross MKM. Your line is open.

Therese: Thank you.

Therese: As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Scott Wallace Searle: And again, we do ask that you limit your questions to one question and one follow up question.

Therese: Please standby, while we compile the Q&A roster.

Therese: Our first question today comes from Scott Farley with Ross.

Scott Wallace Searle: Hey, good afternoon. Thanks for taking my questions. Jacob, congratulations and welcome aboard.

Scott Wallace Searle: Your line is open.

Scott Wallace Searle: Hey, good afternoon, Thanks for taking my questions Jacob Congratulations and welcome aboard Thank you very much.

Jacob Sayre: Thank you very much. Maybe just a quick clarification. I'm not sure if I heard it, but Morgan, in the past, I think you've talked about enterprise or Wi-Fi sell-through. I'm wondering if there was a number there. Also, wanted to clarify the gross margin impact on reserves. I think it was about $7 million. Wanted to clarify that. And then looking into the guidance for the full 2024, it implies a pretty significant uplift in the second half of this year, I think north of $58 million a quarter. What gives you comfort and visibility at the current time? And then I had a quick follow-up.

Scott Wallace Searle: Maybe just a quick clarification I'm not sure if I heard it but.

Jacob Sayre: Morgan in the past I think you've talked about enterprise Wi Fi sell through Im wondering if there was a number there also wanted to clarify the.

Jacob Sayre: The gross margin impact on reserves I think it was about $7 million wanted to clarify that and then looking into the guidance for the full.

Jacob Sayre: <unk> 2024, it implies a pretty significant uplift in the second half of this year I think north of $58 million a quarter. What gives you the comfort and visibility at the current time and then I had a quick follow up.

Morgan C. S. Kurk: Yeah, so I'll start off, Scott, with the question on enterprise sell-through. It maintains a healthy level, very similar to, I think we've said in the past, in the 15 to 20 million dollar range, the range we're giving you, and it hasn't changed much this quarter at all. And we're working to start to drive that number up. And I'll let Jacob talk specifically to your other portions of questions.

Morgan: Yeah, So I'll start off Scott with the question on enterprise sell through.

Morgan C. S. Kurk: It maintains a healthy level very similar I think we've said in the past.

Morgan C. S. Kurk: $15 million to $20 million range the range, we're giving you.

Speaker Change: Hasnt changed.

Jacob Sayre: Much of this quarter at all.

Jacob Sayre: And we're working to start to drive that number up.

Jacob Sayre: And are left.

Jacob Sayre: Jacob spin.

Jacob Sayre: Yeah, you heard me correctly, Scott, in terms of the gross profit impact on the E&O reserves. That was $7 million in the quarter. And then the last bit of your question was regarding the uplift in the second half of the year. You're absolutely right.

Jacob Sayre: Specifically to your other questions. The question, Yes, you heard correctly Scott in terms of the gross profit impact.

Jacob Sayre: On the reserves that was $7 million in the quarter and then the last part of your question with regard to the uplift in the second half of the year, you're absolutely right. We are we are expecting an uplift in revenue in the second half of the year that primarily comes from the inventory contraction in the sales channel with distributors falling away that's been a pretty significant hedge.

Jacob Sayre: We are expecting an uplift in revenue in the second half of the year. That primarily comes from inventory contraction in the sales channel with distributors falling away. That's been a pretty significant headwind for the company as inventory levels have come down over the last four quarters. We expect that that process will come to an end here near the end of the second quarter of this year.

Jacob Sayre: And for the company as inventory levels have come down over the last four quarters, and we expect that that process will come to an end here near the end of the second quarter of this year.

Scott Wallace Searle: Great. Thank you. Very helpful. And if I could, Morgan, from a high level, BEAD is starting to get into the grant phase, still early. A significant number of dollars that are available there, right, in terms of the $42.5 million. But wireless has been, I guess, a second candidate technology for that, right? It's a fiber-first mantra, in effect, but there are initiatives to try and push wireless as a viable medium within the BEAD deployments, particularly given that this is a last-time effort to connect the unconnected, and that wireless is a much more cost-effective medium to be able to do that. So I'm wondering what your early thoughts are in terms of wireless and point-to-multipoint participation in the BEAD program, and specifically maybe coupling 6 gigahertz into that conversation. Thanks. Sure.

Speaker Change: Great. Thank you very helpful.

Scott Wallace Searle: And if I could Morgan from a high level.

Scott Wallace Searle: It is starting to get into the granting it's still early.

Scott Wallace Searle: Significant number of dollars that are available there right in terms of the $42 5 million.

Scott Wallace Searle: But wireless has been I guess, a second candidate technology for that right. It's a fiber first mantra in effect, but there are initiatives to try and push wireless as a viable medium.

Scott Wallace Searle: Within the B deployments, particularly given that this is the last time effort to connect the unconnected and that wireless is a much more cost effective medium to be able to do that so I'm wondering what your early thoughts are in terms of <unk>.

Morgan: Wireless and point to Multipoint participation in the <unk> program, and specifically may be coupling six gigahertz into that conversation. Thanks sure. So a couple of things. So RF funding, which has been out for a while requires a set level speed, but does not require.

Morgan C. S. Kurk: Sure, so a couple of things. RDOF funding, which has been out for a while, requires a set level of speed but does not require licensed spectrum. So, six gigahertz is absolutely applicable toward this, and our customers are eagerly starting to deploy and want six gigahertz for that. In the case of bead, it has some additional restrictions. Beads can only be put on the licensed spectrum. So that has to be done in the three and a half gigahertz range. And while we think there will be some uplift from this, it is probably not so much a 24-hour event, probably more like a 25.

Morgan C. S. Kurk: Licensed spectrum. So six gigahertz is absolutely applicable toward this and our customers are eagerly.

Morgan C. S. Kurk: Starting to deploy and what six gigahertz for that in the case of <unk>.

Morgan C. S. Kurk: <unk> did have some additional restrictions bead can only be.

Morgan C. S. Kurk: But.

Morgan C. S. Kurk: On on licensed spectrum, so that has to.

Morgan C. S. Kurk: Be done in the three five gigahertz range.

Morgan C. S. Kurk: And while we think there will be some uplift from this.

Morgan C. S. Kurk: It is probably not so much a 24 event probably more like a 25 event.

Scott Wallace Searle: Great, thanks. I'll get back in the queue.

Scott Wallace Searle: Great, thanks. I'll get back in the queue. Thank you.

Speaker Change: Great. Thanks, I'll get back in the queue. Thank.

Speaker Change: Thank you.

Speaker Change: Thank you very much and one moment please.

Simon Matthew Leopold: Our next question comes from Simon Leopold with Raymond James. Your line is open.

Scott Wallace Searle: Our next question comes from Simon Leopold with Raymond James Your line is open.

Victor Chui: Hi guys, this is Victor Chui for Simon. You noted lower than expected 6 GHz shipments this quarter because of delayed FCC approval. Does that shortfall kind of mostly roll into Q2, or is that recovered kind of through the balance of the year? Maybe, you know. How do we think about that?

Simon Matthew Leopold: Hi, guys. This is Victor Chu in for Simon.

Victor Chui: You noted lower than expected six gigahertz shipments this quarter because of the delayed.

Victor Chui: SEC approval.

Victor Chui: Does that shortfall kind of mostly roll into Q2 or has that recovered kind of through the balance of the year, maybe how do we think about that.

Morgan C. S. Kurk: Yeah, so there are still, I'll call it, learnings to go on in 6 gigahertz. So I don't think that just rolls into Q2. It's probably more rolling throughout the year. So 6 gigahertz is different for our customers than 5 gigahertz because of AFC, because they have to be granted various pieces of spectrum, and then how they can use it varies based on what current users of the band are doing. And so I think we're gonna see some learnings, and this will take sort of three to six months for people to really get a better understanding of how they do mass-scale deployments, and then we'll see a significant takeoff. I'd probably model it at two.

Victor Chui: So.

Morgan C. S. Kurk: There are still I'll call. It learnings to go on in six gigahertz. So I don't think that just rolls into Q2, it's probably more rolling throughout the year.

Morgan C. S. Kurk: So six gigahertz is different for our customers and.

Morgan C. S. Kurk: And five gigahertz because of AFC.

Morgan C. S. Kurk: Because they.

Morgan C. S. Kurk: To be granted various pieces of spectrum and how they can use it varies based on what what current.

Morgan C. S. Kurk: Users of the band are doing and so I think we're going to see some learnings and this will take sort of three to six months for people to really get.

Morgan C. S. Kurk: A better understanding of how they do mass scale deployments and then we will see significant take off of that.

Morgan C. S. Kurk: Model it due to take on throughout the year.

Morgan C. S. Kurk: Okay, so even without the delay, the 6 gigahertz ramp is a little slower than you're expecting, or than we had originally anticipated. Yeah, I think that's a good way of putting it. That's helpful. Just a quick follow-up. Can you give us an update on progress with the adoption of the 60 gigahertz products and how we should think about momentum around that?

Morgan C. S. Kurk: Okay, so even without the delay the six gigahertz ramp was a little.

Morgan C. S. Kurk: A little slower than kind of than we had originally had anticipated.

Morgan C. S. Kurk: I think thats, a good way of putting it.

Morgan C. S. Kurk: Okay.

Morgan C. S. Kurk: Helpful.

Morgan C. S. Kurk: Just a quick follow up can you give us an update on progress with the adoption of the 60 gigahertz products.

Morgan C. S. Kurk: How we should think about momentum around that.

Morgan C. S. Kurk: Sure, on 60 gigahertz. Yeah, yeah.

Speaker Change: Sure 60 gigahertz.

Morgan C. S. Kurk: So we're actually finding success in this product line with, I'll call it, enterprise customers more than we had thought. We're using it for a variety of projects for what I'll call our original intended base, but we're finding that there are other markets, so I'm hopeful about that. But it's a slow build, I would say. It's not going to be a step function. It's going to be a continued drive and increase.

Speaker Change: Yes, yes so.

Morgan C. S. Kurk: We're actually finding success in this product line with.

Morgan C. S. Kurk: I'll call it.

Morgan C. S. Kurk: Enterprise customers more than we had thought.

Morgan C. S. Kurk: We are using it for quarter.

Morgan C. S. Kurk: For a variety of projects what I'll call. It our original intended base.

Morgan C. S. Kurk: But we're finding that there are other markets so im.

Morgan C. S. Kurk: I am hopeful with that.

Morgan C. S. Kurk: <unk>.

Morgan C. S. Kurk: But it's a slow build I would say, it's not going to be a step function, it's going to be a continued drive and increase and the reason for this is.

Morgan C. S. Kurk: And the reason for this is economics. There are specific areas where this makes a lot of sense, where you have to transport a lot of data for a relatively short distance, and you don't want to have any chance of interference, and so it's not like what I expect to happen in 60 gigahertz, where after a teething period you see a big uplift, and this will just be slow growth.

Morgan C. S. Kurk: Economics.

Morgan C. S. Kurk: There are specific areas, where this makes a lot of sense, where you have to transport.

Morgan C. S. Kurk: A lot of data for a relatively short distance.

Morgan C. S. Kurk: And you don't want to have any chance really of interference and so it's not like what I expect to happen in 60 gigahertz, where after achieving period you see a big uplift this will just be.

Morgan C. S. Kurk: A slow growth.

Speaker Change: That's helpful. Thank you.

Speaker Change: Thank you.

George Charles Notter: Our next question comes from George Notter with Jeffreys, LLC. Your line is open.

Morgan C. S. Kurk: Our next question comes from George Notter with Jefferies LLC. Your line is open.

George Charles Notter: Hey guys, thanks very much. I guess I was curious about the gross margin structure of the business. I think I heard you say 42% is the target for the year. But if you just sort of step back and think about where the gross margins would naturally land, obviously, in Q1, you had some E&O expense, you mentioned that, obviously, you're going to have some more scale relative to the run rates right now as the inventory comes off, and the business rebounds. Like, what do you think a good sort of run rate gross margin would be as the business normalizes?

George Charles Notter: Hey, guys, thanks very much.

George Charles Notter: I guess I was curious about the.

George Charles Notter: The gross margin structure of the business I think I heard you say, 42% as a target for the year, but if you just sort of step back and think about where the gross margins would naturally land.

George Charles Notter: Obviously in Q1, you had some <unk> expense you mentioned that obviously, you're going to have some more scale relative to the run rates right now as the inventory comes off the business rebounds, like what do you think a good sort of run rate gross margin would be as the business normalizes.

Jacob Sayre: Probably George in around the 40% range for the business. Obviously, there's a range of gross margins by product family, with defense being at the higher end of those, but yeah, 40% overall is probably a good number.

Speaker Change: Probably georgia in around the 40% range for the business. Obviously, there is a range of gross margins by product family.

Jacob Sayre: With defense being at the higher end of those but 40% overall is probably a good modeling right.

George Charles Notter: So are you referring to, for this year, or are you referring to the long-term?

Speaker Change: Got it alright, thank you.

Speaker Change: For this year are you referring to two long term.

Jacob Sayre: Okay, so, historically, we have sort of modeled in kind of 50% was our target; we were hitting a few points below that. I think we're going to, it's going to be a bit before that occurs. With the excess inventory and channel, enterprise margins are suppressed as well; everybody's competing to get inventory out of the channel. And, and that probably won't recover tremendously until Wi-Fi 7 becomes the dominant term. And so, for the long-term margins, we should be able to move back up as we get scale, but as Jacob said, for this

Speaker Change: Long term.

Speaker Change: Okay. So.

Jacob Sayre: I think we.

Jacob Sayre: We have historically sort of modeled in kind of 50% was our target we are hitting a few points below that.

Jacob Sayre: I think we're going to it's going to be.

Jacob Sayre: A bit before that occurs.

Jacob Sayre: With the excess inventory in channel.

Jacob Sayre: Enterprise margins are suppressed.

Jacob Sayre: Everybody's competing to get inventory out of channel.

Jacob Sayre: And.

Jacob Sayre: Probably won't recover tremendously until Wifi seven becomes the dominant term.

Jacob Sayre: And.

Jacob Sayre: So.

Jacob Sayre: So the long term margins, we should be able to move back up as we get scale, but as Jacob set for this year, that's what we're looking at.

George Charles Notter: Got it. So do you think that's what a 45% gross margin of 43 or 47 is like any kind of? I think in the long term, it's certainly my goal to have a north of 45.

Speaker Change: Got it so do you think that sort of 45% gross margin of 43 or 47% any kind of.

George Charles Notter: Thought on what that might look like I think it is.

George Charles Notter: I think that the long term. It's certainly my goal is to have a north of 45.

George Charles Notter: And I think with with.

Morgan C. S. Kurk: with our government business, which is higher than normal and with our focus on endocrine.

George Charles Notter: With our government business, which is higher than normal and with our focus on enterprise, which is higher than average I believe those are achieved.

Speaker Change: Got it okay.

George Charles Notter: And then I think you mentioned a bad debt expense going through GNA. Was that in the pro forma financials or excluded?

Morgan C. S. Kurk: And then I think you mentioned a bad debt expense going through G&A was that in the pro forma financials or excluded I guess I'm trying to figure out how big that is and if it's in the numbers Im looking at.

Jacob Sayre: I guess I'm trying to figure out how big that is. And if it's in the numbers, I'm looking at about 600,000. And it's in

George Charles Notter: It's about 600,000, and it's in the non-GAAP numbers; we haven't excluded it. All right. Thank you very much.

George Charles Notter: 600000, it's in.

George Charles Notter: The non-GAAP numbers, we haven't excluded it.

Speaker Change: Okay, Alright, thank you very much.

George Charles Notter: Okay.

George Charles Notter: Thank you very much.

Therese: As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw a question, please press star 1 1 again. And if anyone has any further follow-up questions, please feel free to enter Star 11. One moment. I'm showing no further questions at this time, so I will turn the call back over to Peter Schuman, Vice President, Investor, Industry Analyst, and Public Relations, for the closing statement. Thank you, Therese.

George Charles Notter: As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced.

Therese: To withdraw your question. Please press star one again.

Speaker Change: And if anyone has any further follow up questions. Please feel free to enter Darwin one.

Peter Schuman: One moment.

Peter Schuman: I'm showing no further questions at this time.

Therese: I'll turn the call back over to Peter Schuman, Vice President Investor industry Analyst and public relations to the closing statement. Thank you treat during Q2 'twenty for cambium networks will be presenting and meeting with investors virtually on Thursday may 16, 2024 at the Needham technology media and consumer copper.

Peter Schuman: Thank you, Therese. During Q2-24, Cambium Networks will be presenting a meeting with investors virtually on Thursday, May 16, 2024 at the Needham Technology, Media, and Consumer Conference and on Tuesday, June 25 at the Northland Growth Conference. In the meantime, you're always welcome to contact our Investor Relations Department at 847-264-2188 with any questions that arise. Thank you for joining us, and this concludes today's

Peter Schuman: And on Tuesday June 25th at the Northland growth conference in the meantime, you're always welcome to contact our Investor Relations Department at $8 seven to six four to $1 88 with any questions that arise. Thank you for joining us and this concludes today's call.

Operator: Thank you, everyone. You may now disconnect from the phone call.

Speaker Change: Thank you everyone. You may now disconnect from Hong Kong.

Operator: Okay.

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