Cambium Networks Corporation (NASDAQ:CMBM) Q2 2023 Earnings Call Transcript

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And that also slowed down, so many deals actually moved, many projects got delayed that also impacted quite a bit. And then high interest rates impact multi-dwelling units, new construction, new infrastructure, far more so while as you look at different companies, different companies will have different dynamics because depending on what segment they serve. So in our segment, these were the key impacts. And on the channel inventory, I will let Andrew give little color there. But on Wi-Fi. Let me do Wi-Fi 7, I’ll pass it to Andrew. Wi-Fi 7 is the next Wi-Fi standard. We are looking at that, but we have not made any commitments or any major shifts because we make these decisions pretty thoughtfully. We look at the need, we look at the benefits, you look at the differentiation.

We also make sure that it’s not just technology chasing a solution, but truly, there is a customer need. So we’ll give more color on that, probably in upcoming quarters.

Andrew Bronstein: Yes, and give you some more color in terms of what’s happening in the channel. Our sales out in Enterprise this past quarter were in the mid to upper teens. So even though we reported revenue of only $6 million in the quarter, the sales out of the channel was still at that mid to high teens level. And we believe that with the initiatives and the more aggressive sales initiatives of working with each individual major distributor will certainly help drive that $70 million up to a higher level and towards that $20 million to $30 million normalized level that I mentioned that we believe that we’ll get to in the first half of next year. So that’s the pace. So we don’t disclose individual product level detail on channel inventory. But I think you have enough information. You could probably back into it.

Scott Searle: Okay. No, that’s helpful. Thank you. And if I could, looking at the guidance for the year of 265 to 275, if I take the mid-range of the guidance for the third quarter, it kind of implies a flattish fourth quarter. Yet I’m hearing recovery in Wi-Fi, you’re seeing continued momentum in Point-to-Point from a defense standpoint. And in Point-to-Multipoint, you’ve got multiple new products that are going into it. So I’m wondering, is there some sort of seasonality or otherwise that you’re expecting in one of those product lines as we go into the fourth quarter? And as part of that, what’s your current assumption in terms of AFC approval? And I think absent from your earlier remarks, I didn’t hear a lot about 60 GHz, but my conversations with the channel, in addition to 6 GHz gaining a lot of momentum is 60 GHz has actually been seeing a strong resurgence. So I’m kind of wondering where that fits into the picture into the end of this year in 2024? Thanks.

Atul Bhatnagar: Thanks, Scott. Let me take the 60 GHz in AFC and then I’ll pass it to Andrew for the guidance for the year. You are absolutely right. 60 and fiber is a very good combination. Where fiber stops, terrains are tough. Many of our fiber customers are actually coming to us and asking for 60. We see momentum in 60 GHz, especially in Wisp. I think we mentioned a quarter or two back, that one of the Wisp in Canada. They have deployed about 5000 60 GHz nodes for a very high performance network, smart city project, CCTV, last one to two kilometer gigabit connectivity. So we see that and also Cambium. Overall, I think we also mentioned the last few quarters, we have unique over 1,000 customers worldwide on 60 GHz. So this is one of those things that it has taken longer, but absolutely a very key building block for the last mile, last few kilometers to provide gigabit connectivity.

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