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 second quarter ended June 30, 2022.
Key Second Quarter Financial Highlights
- Revenue of $46.9 million, increased 25% sequentially from first
quarter 2022, and increased 12% year-over-year
- Gross margin of 40.1% compared to 32.1% in first quarter 2022,
and 45.7% in second quarter 2021
- Net loss of $21.0 million, compared to a net loss of $29.7
million in first quarter 2022, and a net loss of $10.4 million for
second quarter 2021
- Adjusted EBITDA (non-GAAP measure) was a loss of $12.3 million
compared to a loss of $18.0 million in first quarter 2022 and a
loss of $5.4 million in second quarter 2021
- Loss per share was 29 cents, compared to loss per share of 41
cents in first quarter 2022 and a loss per share of 17 cents in
second quarter 2021
Second Quarter Business Highlights:
- Strong performance in a challenging supply chain
environment.
- Continued momentum in private network deployments:
- Added over 60 Private 4G/5G Networks in second quarter 2022
bringing the total number of Private Networks design wins to more
than 300.
- Signed Global Purchase Agreements with two additional web scale
cloud providers.
- Signed agreement with a leading global Private Networks managed
service provider.
- New milestone reached with a Tier 1 US Cable MSO with a
Purchase Order in second quarter 2022, and a significant deployment
throughout 2022.
- Airspan Networks Named Winner of Three Small Cell Forum
Innovation Awards, Demonstrating Solution Scalability for Both
Public and Private Networks. Fifth year in a row Airspan has been
honored by the Forum (link).
- Demonstrated a fiber equivalent 4+ Gbps Fixed Wireless Access
point to multi-point connection speed with one of Asia’s largest
carriers and made substantial inroads with US Rural Digital
Opportunity Fund recipients.
Leading Product Portfolio Drives Strong Demand
“We continue to execute our growth plan and see healthy demand
for our innovative products and solutions,” said Airspan Chairman
and Chief Executive Officer Eric Stonestrom. “Furthermore, we are
encouraged by concrete government action on the CHIPS Act, which
currently allocates $1.5B for Open RAN technology development, an
area of Airspan focus and differentiation. However, the supply
chain environment continues to impact sales and margin as seen in
the near-term outlook.”
“Four of our largest customers signed new purchase orders during
the quarter. We continue to see growing demand in the core markets
we serve, namely mobile networks, private networks and fixed
wireless,” said Airspan President and Chief Operating Officer Glenn
Laxdal.
Business Outlook
We anticipate third quarter 2022 revenue of $42 million to $48
million at a gross margin of 38% to 40%. 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, the Company
does not intend to make publicly available any update or other
revision to these financial projections. The Company 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 the Company'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
Wednesday, August 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; 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 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 GAAP. 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)
June 30, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
36,305
$
62,937
Restricted cash
51
185
Accounts receivable, net of allowance of
$298 and $309 at June 30, 2022 and December 31, 2021,
respectively
48,267
57,980
Inventory
17,519
17,217
Prepaid expenses and other current
assets
16,612
18,833
Total current assets
118,754
157,152
Property, plant and equipment, net
7,666
7,741
Goodwill
13,641
13,641
Intangible assets, net
5,870
6,438
Right-of-use assets, net
5,488
6,585
Other non-current assets
3,761
3,942
Total assets
$
155,180
$
195,499
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable
$
26,669
$
29,709
Deferred revenue
4,588
2,902
Accrued expenses
26,902
26,967
Senior term loan, current portion
3,577
3,187
Subordinated debt
10,844
10,577
Current portion of long-term debt
259
275
Total current liabilities
72,839
73,617
Subordinated term loan - related party
39,706
37,991
Senior term loan
37,459
37,876
Convertible debt
42,605
41,343
Other long-term liabilities
16,042
20,924
Total liabilities
208,651
211,751
Commitments and contingencies
Stockholders’ deficit:
Common stock, $0.0001 par value;
250,000,000 shares authorized; 72,335,952 shares issued and
outstanding at both June 30, 2022 and December 31, 2021
7
7
Additional paid-in capital
763,128
749,592
Accumulated deficit
(816,606
)
(765,851
)
Total stockholders’ deficit
(53,471
)
(16,252
)
Total liabilities and stockholders’
deficit
$
155,180
$
195,499
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenues:
Products and software licenses
$
44,031
$
34,793
$
77,607
$
73,535
Maintenance, warranty and services
2,914
7,255
6,902
14,448
Total revenues
46,945
42,048
84,509
87,983
Cost of revenues:
Products and software licenses
26,864
21,732
51,337
45,209
Maintenance, warranty and services
1,253
1,088
2,275
2,602
Total cost of revenues
28,117
22,820
53,612
47,811
Gross profit
18,828
19,228
30,897
40,172
Operating expenses:
Research and development
16,720
15,524
33,241
29,898
Sales and marketing
9,010
7,482
18,340
14,842
General and administrative
11,089
4,445
22,247
8,900
Amortization of intangibles
284
299
568
598
Total operating expenses
37,103
27,750
74,396
54,238
Loss from operations
(18,275
)
(8,522
)
(43,499
)
(14,066
)
Interest expense, net
(4,207
)
(2,512
)
(8,775
)
(4,950
)
Gain on extinguishment of debt
-
2,096
-
2,096
Other income (expense), net
1,353
(1,388
)
1,304
(6,880
)
Loss before income taxes
(21,129
)
(10,326
)
(50,970
)
(23,800
)
Income tax benefit (expense), net
112
(92
)
215
(167
)
Net loss
$
(21,017
)
$
(10,418
)
$
(50,755
)
$
(23,967
)
Loss per share - basic and diluted
$
(0.29
)
$
(0.17
)
$
(0.70
)
$
(0.40
)
Weighted average shares outstanding -
basic and diluted
72,335,952
59,714,562
72,335,952
59,713,471
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June
30,
2022
2021
Cash flows from operating activities:
Net loss
$
(50,755
)
$
(23,967
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
2,275
2,129
Foreign exchange gain on long-term
debt
(16
)
(1
)
Bad debt expense
7
138
Gain on extinguishment of debt
-
(2,096
)
Change in fair value of warrants and
derivatives
(3,936
)
4,517
Non-cash debt amendment fee
463
-
Share-based compensation
13,536
1,489
Total adjustments
12,329
6,176
Changes in operating assets and
liabilities:
Decrease in accounts receivable
9,706
30,812
Increase in inventory
(302
)
(1,029
)
Decrease (increase) in prepaid expenses
and other current assets
2,221
(1,460
)
Decrease in other non-current assets
181
56
Decrease in accounts payable
(3,040
)
(18,959
)
Increase (decrease) in deferred
revenue
1,686
(2,792
)
(Decrease) increase in other accrued
expenses
(65
)
3,713
Increase (decrease) in other long-term
liabilities
151
(247
)
Increase in accrued interest on long-term
debt
5,394
3,881
Net cash used in operating activities
(22,494
)
(3,816
)
Cash flows from investing activities:
Purchase of property, plant and
equipment
(1,632
)
(3,123
)
Net cash used in investing activities
(1,632
)
(3,123
)
Cash flows from financing activities:
Repayments of senior term loan
(2,640
)
–
Proceeds from the exercise of stock
options
-
69
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
(2,640
)
716
Net decrease in cash, cash equivalents and
restricted cash
(26,766
)
(6,223
)
Cash, cash equivalents and restricted
cash, beginning of year
63,122
18,618
Cash, cash equivalents and restricted
cash, end of period
$
36,356
$
12,395
The following tables present the reconciliation of net loss, the
most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended
($ in thousands)
June 30, 2022
March 31, 2022
Net loss
$
(21,017
)
$
(29,738
)
Adjusted for:
Interest expense, net
4,207
4,568
Income tax benefit, net
(112
)
(103
)
Depreciation and amortization
1,154
1,121
EBITDA
(15,768
)
(24,152
)
Share-based compensation expense
6,972
6,564
Change in fair value of warrant liability
and derivatives
(3,479
)
(457
)
Adjusted EBITDA
$
(12,275
)
$
(18,045
)
Three Months Ended June
30,
($ in thousands)
2022
2021
Net loss
$
(21,017
)
$
(10,418
)
Adjusted for:
Interest expense, net
4,207
2,512
Income tax (benefit) expense, net
(112
)
92
Depreciation and amortization
1,154
1,076
EBITDA
(15,768
)
(6,738
)
Share-based compensation expense
6,972
828
Change in fair value of warrant liability
and derivatives
(3,479
)
545
Adjusted EBITDA
$
(12,275
)
$
(5,365
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220809005951/en/
Investor Relations Contact: Brett Scheiner 561-893-8660
IR@airspan.com
Media Contact: mediarelations@airspan.com
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