Cambium Networks Corporation (NASDAQ:CMBM) Q4 2022 Earnings Call Transcript

Operator: Thank you. One moment for our next question. And the next question comes from George Notter with Jefferies. Your line is open.

George Notter: Hi, guys. Thanks very much. In the past, you guys have talked a little bit about what channel inventory looks like, whether it was kind of above or below average or average. Could you just give us any comments on where you think that is right now?

Andrew Bronstein: Yeah. So when you break it down, I think that the channel inventory on the enterprise side is a little bit higher than what it’s been running at over the course of the past 12 months or so. Some of that is because of improvements in supply chain and lead times getting a little bit shorter as well and the ability to deliver product into the distributors. So I think that’s what we’re seeing on enterprise slightly higher on the PMP side, in terms of our inventory out of distributors, it’s actually going the other direction. And that’s a sign of the distributors getting ready for some of our new products as well. So, I think it’s somewhat balanced out in that fashion.

George Notter: Got it. And then I guess I was also just going to ask about supply chain. I think you kind of answered it there. I mean, are you still seeing any big holdups on supply chain golden screw type issues, or do you think products are flowing pretty freely now from a manufacturing perspective?

Atul Bhatnagar: The George, first of all our all manufacturing subcontractors in the sites are open and operating. As I said, supply chain is improving. But I don’t think it’s not yet normalcy. I think it’d be probably mid 2023 when it will reach — for us at least mid-2023 pre-COVID normalcy. There are still shortages on certain parts, but by and large things have improved. And I think even after the Chinese New Year, which is always something we watch carefully. This year, no hiccups, factories are fully open, logistics and freight are continually improving. So, so far, so good.

George Notter: Great, super. Thank you very much.

Atul Bhatnagar: Thanks, George.

Operator: Thank you. And we have a follow-up question from Scott Searle with ROTH Capital Partners. Your line is open.

Scott Searle: Hey, just quick follow-up on the 6-gig front. I know you’re looking at rolling a dual mode 6-gigahertz solution product. I thought, it was in the second quarter around CBRS, right. So it helps you circumvent some issues as it relates to reliability and bead funding. Just want to check on the progress of that, make sure that that’s still tracking for the second quarter. And what the interest level is that you’re seeing at least early on in dialogues with wireless ISPs and other carriers on that front? Thanks.

Atul Bhatnagar: Yeah. So Scott, the combo product of five and six will very much be driven by the chips availability. In the beginning, the 5-gigahertz and 6-gigahertz are two different products, and CBRS. CBRS 1 is a 3-gigahertz separate frequency, completely different product. So I think this year, you will see us very much gain the experience. And then focus on the combo side based on our experience with the customers, and also based on availability of chips and all that. So I don’t think the combo part will come right away, because I think most of our customers right now are either deploying five or six. And CBRS is a completely different product.

Scott Searle: Right. Thank you.

Atul Bhatnagar: Thanks, Scott.

Operator: Thank you. And our next question comes from Timothy Horan with Oppenheimer. Your line is open.