Airspan Networks Holdings Inc. Reports Third Quarter 2022 Results
Airspan Networks Holdings reported third quarter 2022 results with revenue of $41.1 million, down 12% sequentially but up 6% year-over-year. The gross margin remained stable at 39.8%, while the net loss increased to $23.3 million. Adjusted EBITDA improved to a loss of $10.0 million. Positive developments include strong bookings with a book-to-bill ratio over 1.5 and the acquisition of 87 new private 4G/5G networks, representing a 45% increase year-to-date. The company projects fourth quarter 2022 revenue between $49 million and $57 million.
- Strong bookings performance with a book-to-bill ratio greater than 1.5.
- Acquisition of 87 new private 4G/5G networks, up 45% year-to-date.
- Reduced operating expenses by $4 million from the previous quarter.
- Launch of 6 Series Fixed Wireless Access product with 75% increase in purchase orders year-to-date.
- Revenue decreased 12% sequentially from the second quarter.
- Net loss widened to $23.3 million from $21.0 million in the prior quarter.
- Gross margin declined from 44.0% in Q3 2021 to 39.8% in Q3 2022.
Key Third Quarter Financial Highlights
-
Revenue of
, decreased$41.1 million 12% sequentially from second quarter 2022, and increased6% year-over-year -
Gross margin of
39.8% was essentially flat to40.1% in second quarter 2022, and down from44.0% in third quarter 2021 -
Net loss of
, compared to a net loss of$23.3 million in second quarter 2022, and a net loss of$21.0 million for third quarter 2021$27.0 million -
Adjusted EBITDA (non-GAAP measure) was a loss of
compared to a loss of$10.0 million in second quarter 2022 and a loss of$12.3 million in third quarter 2021$10.4 million -
Loss per share was
32 cents , compared to loss per share of29 cents in second quarter 2022 and a loss per share of41 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
at quarter end$100 million -
Strengthened momentum in private network design wins with 87 new Private 4G/
5G Networks in third quarter 2022, up45% 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
compared to the second quarter of 2022$4 million
Strong Demand and New Product Pipeline
“We are encouraged by very robust bookings, while continuing to grapple with supply chain issues,” said
“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
Business Outlook
We anticipate fourth quarter 2022 revenue of
Except as required by applicable securities laws,
Earnings Conference Call
A conference call with
About
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
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.”
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except for share data) |
||||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
27,265 |
|
|
$ |
62,937 |
|
Restricted cash |
|
|
43 |
|
|
|
185 |
|
Accounts receivable, net of allowance of |
|
|
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 |
|
|
|
|
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, |
|
|
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 |
|
|
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands, except for share data) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
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 |
|
|
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands, except for share data) |
||||||||
|
|
|
|
|
||||
|
|
Nine Months Ended
|
||||||
|
|
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
|
|
|
||||
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
|
||||||
($ 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:
561-893-8660
IR@airspan.com
Media Contact:
mediarelations@airspan.com
Source:
FAQ
What is Airspan Networks Holdings' revenue for Q3 2022?
What was the net loss for Airspan Networks in Q3 2022?
What is the projected revenue range for Airspan in Q4 2022?
How did Airspan's gross margin change in Q3 2022?