Airspan Networks Holdings Inc. (NYSE American: MIMO), which
provides ground-breaking, disruptive software and hardware for 5G
networks, and a pioneer in end-to-end Open RAN solutions, today
announced results for the third quarter ended September 30,
2022.
Key Third Quarter Financial Highlights
- Revenue of $41.1 million, decreased 12% sequentially from
second quarter 2022, and increased 6% year-over-year
- Gross margin of 39.8% was essentially flat to 40.1% in second
quarter 2022, and down from 44.0% in third quarter 2021
- Net loss of $23.3 million, compared to a net loss of $21.0
million in second quarter 2022, and a net loss of $27.0 million for
third quarter 2021
- Adjusted EBITDA (non-GAAP measure) was a loss of $10.0 million
compared to a loss of $12.3 million in second quarter 2022 and a
loss of $10.4 million in third quarter 2021
- Loss per share was 32 cents, compared to loss per share of 29
cents in second quarter 2022 and a loss per share of 41 cents in
third quarter 2021
Third Quarter Business Highlights
- Strong bookings performance with a book-to-bill ratio greater
than 1.5 in the quarter, resulting in shippable backlog of over
$100 million at quarter end
- Strengthened momentum in private network design wins with 87
new Private 4G/5G Networks in third quarter 2022, up 45% year to
date compared to 2021
- Expansion of the customer base, including a substantial
multi-year project win in a Florida “smart cities” infrastructure
enhancement project signed in the third quarter of 2022
- Streamlined operations and reduced operating expenses by $4
million compared to the second quarter of 2022
Strong Demand and New Product Pipeline
“We are encouraged by very robust bookings, while continuing to
grapple with supply chain issues,” said Airspan Chairman and Chief
Executive Officer Eric Stonestrom. “We are taking steps to address
the balance sheet, as well as driving operational efficiencies to
bring us closer to operating break-even in the fourth quarter of
this year.”
“We are seeing continued strong demand in our core markets of
mobile networks, private networks and fixed wireless. We have now
launched the 6 Series, Fixed Wireless Access (FWA) product, which
delivers multi-gigabit speeds and we have grown total FWA purchase
orders by 75% year to date compared to the same time last year,”
said Airspan President and Chief Operating Officer Glenn
Laxdal.
Business Outlook
We anticipate fourth quarter 2022 revenue of $49 million to $57
million at a gross margin of 42% to 46%. Both figures continue to
be impacted by component availability, related expenses and
challenges from COVID-19 restrictions in Asia.
Except as required by applicable securities laws, Airspan does
not intend to make publicly available any update or other revision
to these financial projections. Airspan has relied upon certain
assumptions and estimates to develop these projections, including,
among other things, assumptions about its order backlog and
pipeline, customer adoption and subsequent expansion of 5G
technologies, the mix of products sold, the performance of
Airspan’s outsourced supply chain and the costs of materials and
services. These financial projections do not take into account any
circumstances or events occurring after the date of this news
release. Readers are cautioned not to place undue reliance on these
financial projections. None of Airspan or any of its directors,
officers, advisors or other representatives has made or makes any
representation regarding ultimate performance compared to these
financial projections or that these financial projections will be
achieved.
Earnings Conference Call
A conference call with Airspan executives will be held on
Thursday, November 10 at 8:30 am ET. It can be accessed through a
toll-free dial-in, 1-877-589-7296, or 1-215-268-9906 (local), by
requesting the Airspan call, as well as on the Airspan investor
relations website, ir.airspan.com. An audio replay will be
available on the Airspan investor relations site following the
call.
About Airspan
Airspan Networks Holdings Inc. (NYSE American: MIMO) is a
U.S.-based provider of groundbreaking, disruptive software and
hardware for 5G networks, and a pioneer in end-to-end Open RAN
solutions that provide interoperability with other vendors. As a
result of innovative technology and significant R&D investments
to build and expand 5G solutions, Airspan believes it is
well-positioned with 5G indoor and outdoor, Open RAN, private
networks for enterprise customers and industrial use applications,
fixed wireless access (FWA), and CBRS solutions to help mobile
network operators of all sizes deploy their networks of the future,
today. With over one million cells shipped to 1,000 customers in
more than 100 countries, Airspan has global scale. For more
information, visit www.airspan.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements include, but are not limited to, statements
about future financial and operating results, Airspan’s plans,
objectives, expectations and intentions with respect to future
operations, products and services, projected financial performance,
and other statements identified by words such as “will likely
result,” “are expected to,” “will continue,” “is anticipated,”
“estimated,” “believe,” “intend,” “plan,” “projection,” “outlook”
or words of similar meaning. Any such forward-looking statements
are based upon the current beliefs and expectations of Airspan’s
management and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of
which are difficult to predict and generally beyond Airspan’s
control.
Actual results, performance or achievements may differ
materially, and potentially adversely, from any forward-looking
statements and the assumptions on which those forward-looking
statements are based. There can be no assurance that the data
contained herein is reflective of future performance to any degree.
You are cautioned not to place undue reliance on forward-looking
statements as a predictor of future performance as projected
financial information and other information are based on estimates
and assumptions that are inherently subject to various significant
risks, uncertainties and other factors, many of which are beyond
Airspan’s control, which may include, among other things: the risk
of downturns and the possibility of rapid change in the highly
competitive industry in which Airspan operates; changes in laws and
regulations affecting Airspan’s business; the risk that Airspan and
its current and future collaborators are unable to successfully
develop and commercialize Airspan’s products or services, or
experience significant delays in doing so; the risk that Airspan
does not achieve or sustain profitability; the risk that Airspan
will need to raise additional capital to execute its business plan,
which may not be available on acceptable terms or at all; Airspan’s
ability to remain in compliance with the financial and other
covenants under its debt agreements; Airspan’s ability to continue
as a going concern; the risk that Airspan experiences difficulties
in managing its growth and expanding operations; the risk that
third-party suppliers and manufacturers are not able to fully and
timely meet their obligations; the risk of product liability or
regulatory lawsuits or proceedings relating to Airspan’s products
and services; and the risk that Airspan is unable to secure its
intellectual property. For further information identifying
important factors that could cause actual results to differ
materially from those anticipated in the forward-looking
statements, please refer to the Risk Factors section of Airspan’s
Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2022, and Airspan’s Annual Report on Form 10-K for
the year ended December 31, 2021, filed with the US Securities and
Exchange Commission. All information set forth herein speaks only
as of the date hereof in the case of information about Airspan or
the date of such information in the case of information from
persons other than Airspan, and Airspan disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this communication.
Forecasts and estimates regarding Airspan’s industry and end
markets are based on sources it believes to be reliable, however
there can be no assurance these forecasts and estimates will prove
accurate in whole or in part.
Non-GAAP Measures
This news release references non-GAAP measures. Non-GAAP
measures do not have a standardized meaning and are, therefore,
unlikely to be comparable to similar measures presented by other
companies. The presentation of this financial information, which is
not prepared under any comprehensive set of accounting rules or
principles, is not intended to be considered in isolation of, or as
a substitute for, the financial information prepared and presented
in accordance with US generally accepted accounting principles.
Non-GAAP financial measures referred to in this report are labeled
as “non-GAAP measure.”
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except for
share data)
September 30, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
27,265
$
62,937
Restricted cash
43
185
Accounts receivable, net of allowance of
$462 and $309 as of September 30, 2022 and December 31, 2021,
respectively
42,195
57,980
Inventory
15,621
17,217
Prepaid expenses and other current
assets
17,262
18,833
Total current assets
102,386
157,152
Property, plant and equipment, net
7,301
7,741
Goodwill
13,641
13,641
Intangible assets, net
5,586
6,438
Right-of-use assets, net
6,066
6,585
Other non-current assets
3,387
3,942
Total assets
$
138,367
$
195,499
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable
$
25,814
$
29,709
Deferred revenue
3,553
2,902
Accrued expenses and other current
liabilities
34,465
26,967
Senior term loan, current portion
40,791
3,187
Subordinated debt
10,981
10,577
Subordinated term loan – related party
40,607
—
Convertible debt
43,258
—
Current portion of long-term debt
242
275
Total current liabilities
199,711
73,617
Subordinated term loan - related party
—
37,991
Senior term loan
—
37,876
Convertible debt
—
41,343
Other long-term liabilities
9,651
20,924
Total liabilities
209,362
211,751
Commitments and contingencies
Stockholders’ deficit:
Common stock, $0.0001 par value;
250,000,000 shares authorized; 73,393,907 and 72,335,952 shares
issued and outstanding as of September 30, 2022 and December 31,
2021, respectively
7
7
Additional paid-in capital
768,918
749,592
Accumulated deficit
(839,920
)
(765,851
)
Total stockholders’ deficit
(70,995
)
(16,252
)
Total liabilities and stockholders’
deficit
$
138,367
$
195,499
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for
share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Revenues:
Products and software licenses
$
36,521
$
32,101
$
114,128
$
105,637
Maintenance, warranty and services
4,573
6,822
11,475
21,269
Total revenues
41,094
38,923
125,603
126,906
Cost of revenues:
Products and software licenses
23,462
20,652
74,747
66,272
Maintenance, warranty and services
1,296
1,163
3,623
3,354
Total cost of revenues
24,758
21,815
78,370
69,626
Gross profit
16,336
17,108
47,233
57,280
Operating expenses:
Research and development
15,003
17,529
48,244
47,427
Sales and marketing
7,219
10,315
25,559
25,157
General and administrative
9,644
19,347
31,891
28,247
Amortization of intangibles
284
299
852
897
Restructuring costs
944
-
944
-
Total operating expenses
33,094
47,490
107,490
101,728
Loss from operations
(16,758
)
(30,382
)
(60,257
)
(44,448
)
Interest expense, net
(4,296
)
(3,630
)
(13,071
)
(8,580
)
Gain on extinguishment of debt
—
—
—
2,096
Other (expense) income, net
(2,097
)
7,516
(793
)
636
Loss before income taxes
(23,151
)
(26,496
)
(74,121
)
(50,296
)
Income tax (expense) benefit, net
(163
)
(457
)
52
(624
)
Net loss
$
(23,314
)
$
(26,953
)
$
(74,069
)
$
(50,920
)
Loss per share - basic and diluted
$
(0.32
)
$
(0.41
)
$
(1.02
)
$
(0.82
)
Weighted average shares outstanding -
basic and diluted
72,572,138
66,276,223
72,415,546
61,923,661
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except for
share data)
Nine Months Ended September
30,
2022
2021
Cash flows from operating activities:
Net loss
$
(74,069
)
$
(50,920
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
3,448
3,117
Foreign exchange gain on long-term
debt
(33
)
(8
)
Bad debt expense
170
182
Gain on extinguishment of debt
—
(2,096
)
Change in fair value of warrants and
derivatives
(3,016
)
(7,045
)
Non-cash debt amendment fee
463
—
Share-based compensation
19,399
2,150
Total adjustments
20,431
(3,700
)
Changes in operating assets and
liabilities:
Decrease in accounts receivable
15,615
18,001
Decrease (increase) in inventory
1,596
(1,957
)
Decrease (increase) in prepaid expenses
and other current assets
1,571
(452
)
Decrease in other non-current assets
555
6
Decrease in accounts payable
(3,895
)
(15,799
)
Increase (decrease) in deferred
revenue
651
(2,476
)
Increase in accrued expenses
7,498
5,599
(Decrease) increase in other long-term
liabilities
(7,738
)
468
Increase in accrued interest on long-term
debt
8,160
5,917
Net cash used in operating activities
(29,625
)
(45,313
)
Cash flows from investing activities:
Purchase of property, plant and
equipment
(2,156
)
(4,287
)
Net cash used in investing activities
(2,156
)
(4,287
)
Cash flows from financing activities:
Proceeds from the Business Combination,
issuance of convertible debt and PIPE financing, net of issuance
costs paid
—
115,501
Repayments of senior term loan
(3,960
)
—
Proceeds from the exercise of stock
options
—
78
Payment for taxes withheld on stock
awards
(73
)
—
Proceeds from the sale of Series H stock,
net
—
505
Proceeds from the issuance of Series H
warrants
—
142
Net cash (used in) provided by financing
activities
(4,033
)
116,226
Net (decrease) increase in cash, cash
equivalents and restricted cash
(35,814
)
66,626
Cash, cash equivalents and restricted
cash, beginning of year
63,122
18,618
Cash, cash equivalents and restricted
cash, end of period
$
27,308
$
85,244
The following tables present the reconciliation of net loss, the
most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended
($ in thousands)
September 30, 2022
June 30, 2022
Net loss
$
(23,314
)
$
(21,017
)
Adjusted for:
Interest expense, net
4,296
4,207
Income tax expense (benefit), net
163
(112
)
Depreciation and amortization
1,173
1,154
EBITDA
(17,682
)
(15,768
)
Share-based compensation expense
5,863
6,972
Change in fair value of warrant liability
and derivatives
920
(3,479
)
Restructuring costs
944
-
Adjusted EBITDA
$
(9,955
)
$
(12,275
)
Three Months Ended September
30,
($ in thousands)
2022
2021
Net loss
$
(23,314
)
$
(26,953
)
Adjusted for:
Interest expense, net
4,296
3,630
Income tax expense, net
163
457
Depreciation and amortization
1,173
988
EBITDA
(17,682
)
(21,878
)
Share-based compensation expense
5,863
661
Change in fair value of warrant liability
and derivatives
920
(11,562
)
Restructuring costs
944
-
Transaction costs allocated to the
warrants
-
3,824
Management Incentive Plan expense related
to Business Combination
-
18,513
Adjusted EBITDA
$
(9,955
)
$
(10,442
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221109006059/en/
Investor Relations Contact: Brett Scheiner 561-893-8660
IR@airspan.com
Media Contact: mediarelations@airspan.com
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