MIMO Airspan Networks Holdings Inc

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, 2023.

Second Quarter Financial Highlights

• Revenue of $32.1 million, compared to $24.8 million sequentially from first quarter 2023, and from $46.9 million year-over-year from second quarter 2022.
• Gross margin of 21.0% compared to 41.8% in the first quarter 2023 and 40.1% in second quarter 2022. In the second quarter 2023, the Company recorded an inventory impairment charge of $7.2 million related to product initiatives that were either reduced or eliminated as a result of a headcount reduction. Excluding this impairment, the adjusted gross margin was 43.4% (non-GAAP measure).
• Total operating expenses of $27.5 million compared to $28.0 million in first quarter 2023, and $37.1 million for second quarter 2022. Total operating expenses for the second quarter 2023, include a $3.0 million restructuring provision, primarily related to headcount reductions.
• Net loss of $33.6 million, compared to a net loss of $20.9 million in first quarter 2023, and a net loss of $21.0 million for second quarter 2022. For the second quarter 2023, excluding the inventory impairment charge of $7.2 million and the restructuring provision of $3.0 million, the adjusted net loss would have been $23.4 million (non-GAAP measure).
• Adjusted EBITDA (non-GAAP measure) was a loss of $15.2 million compared to a loss of $13.8 million in first quarter 2023 and a loss of $12.3 million in second quarter 2022. For the second quarter 2023, excluding the inventory impairment of $7.2 million, the adjusted EBITDA would have been a loss of $8.0 million.
• Loss per share was 45 cents, compared to loss per share of 28 cents in first quarter 2023 and a loss per share of 29 cents in second quarter 2022.

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, Air To Ground, 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.

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. We reference these non-GAAP financial measures in our decision making because they provide supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe they provide investors with greater transparency to evaluate operational activities and financial results. 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)

 

 

 

 

 

 

 

 

 

June 30, 2023

 

December 31, 2022

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,102

 

 

$

7,253

 

Restricted cash

 

 

35

 

 

 

34

 

Accounts receivable, net of allowance of $478 and $647 at June 30, 2023 and December 31, 2022, respectively

 

 

22,790

 

 

 

46,565

 

Inventory

 

 

10,592

 

 

 

18,556

 

Prepaid expenses and other current assets

 

 

16,159

 

 

 

17,289

 

Assets held for sale -- current

 

 

15,352

 

 

 

-

 

Total current assets

 

 

75,030

 

 

 

89,697

 

Property, plant and equipment, net

 

 

5,686

 

 

 

7,351

 

Goodwill

 

 

-

 

 

 

13,641

 

Intangible assets, net

 

 

-

 

 

 

5,302

 

Right-of-use assets, net

 

 

3,711

 

 

 

5,697

 

Other non-current assets

 

 

3,059

 

 

 

3,407

 

Assets held for sale – non-current

 

 

20,913

 

 

 

-

 

Total assets

 

$

108,399

 

 

$

125,095

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

17,393

 

 

$

26,173

 

Accrued expenses and other current liabilities

 

 

31,247

 

 

 

32,243

 

Deferred revenue

 

 

1,547

 

 

 

2,892

 

Senior term loan, current portion

 

 

4,179

 

 

 

40,529

 

Subordinated debt

 

 

11,396

 

 

 

11,119

 

Subordinated term loan – related party

 

 

-

 

 

 

41,528

 

Convertible debt

 

 

-

 

 

 

43,928

 

Current portion of long-term debt

 

 

265

 

 

 

259

 

Liabilities held for sale -- current

 

 

12,015

 

 

 

-

 

Total current liabilities

 

 

78,042

 

 

 

198,671

 

Subordinated term loan - related party

 

 

43,402

 

 

 

-

 

Senior term loan

 

 

59,045

 

 

 

-

 

Convertible debt

 

 

47,749

 

 

 

-

 

Other long-term liabilities

 

 

9,561

 

 

 

7,223

 

Liabilities held for sale – non-current

 

 

375

 

 

 

-

 

Total liabilities

 

 

238,174

 

 

 

205,894

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

Common stock, $0.0001 par value; 250,000,000 shares authorized; 74,582,992 and 74,283,026 shares issued and outstanding at both June 30, 2023 and December 31, 2022

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

775,947

 

 

 

770,427

 

Accumulated deficit

 

 

(905,729

)

 

 

(851,233

)

Total stockholders’ deficit

 

 

(129,775

)

 

 

(80,799

)

Total liabilities and stockholders’ deficit

 

$

108,399

 

 

$

125,095

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

Revenues:

 

 

 

 

Products and software licenses

$

28,855

 

$

44,028

 

$

49,788

 

$

77,604

 

Maintenance, warranty and services

 

3,268

 

 

2,917

 

 

7,108

 

 

6,905

 

Total revenues

 

32,123

 

 

46,945

 

 

56,896

 

 

84,509

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

Products and software licenses

 

23,998

 

 

26,864

 

 

37,292

 

 

51,337

 

Maintenance, warranty and services

 

1,392

 

 

1,253

 

 

2,524

 

 

2,275

 

Total cost of revenues

 

25,390

 

 

28,117

 

 

39,816

 

 

53,612

 

Gross profit

 

6,733

 

 

18,828

 

 

17,080

 

 

30,897

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Research and development

 

13,416

 

 

16,720

 

 

27,607

 

 

33,241

 

Sales and marketing

 

5,310

 

 

9,010

 

 

10,992

 

 

18,340

 

General and administrative

 

5,746

 

 

11,089

 

 

13,411

 

 

22,247

 

Amortization of intangibles

 

-

 

 

284

 

 

189

 

 

568

 

Restructuring costs

 

3,023

 

 

-

 

 

3,283

 

 

-

 

Total operating expenses

 

27,495

 

 

37,103

 

 

55,482

 

 

74,396

 

 

 

 

 

 

Loss from operations

 

(20,762

)

 

(18,275

)

 

(38,402

)

 

(43,499

)

 

 

 

 

 

Interest expense, net

 

(5,153

)

 

(4,207

)

 

(9,687

)

 

(8,775

)

Loss on extinguishment of debt

(8,281

)

 

-

 

 

(8,281

)

 

-

 

Change in fair value of warrant liability and derivatives, net

 

588

 

 

3,479

 

 

1,230

 

 

3,936

 

Other income (expense), net

 

(153

)

 

(2,126

)

 

408

 

 

(2,632

)

 

 

 

 

 

Loss before income taxes

 

(33,761

)

 

(21,129

)

 

(54,732

)

 

(50,970

)

 

 

 

 

 

Income tax benefit (expense), net

 

154

 

 

112

 

 

236

 

 

215

 

 

 

 

 

 

Net loss

$

(33,607

)

$

(21,017

)

$

(54,496

)

$

(50,755

)

 

 

 

 

 

Loss per share - basic and diluted

$

(0.45

)

$

(0.29

)

$

(0.73

)

$

(0.70

)

Weighted average shares outstanding - basic and diluted

 

74,582,992

 

 

72,335,952

 

 

74,528,668

 

 

72,335,952

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

 

 

2023

 

2022

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(54,496

)

 

$

(50,755

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,772

 

 

 

2,275

 

Foreign exchange loss (gain) on long-term debt

 

 

6

 

 

 

(16

)

Bad debt expense

 

 

172

 

 

 

7

 

Change in fair value of warrants and derivatives, net

 

 

(1,230

)

 

 

(3,936

)

Loss on extinguishment of debt

 

 

8,281

 

 

 

-

 

Non-cash debt amendment fee

 

 

-

 

 

 

463

 

Inventory impairment charge

 

 

7,215

 

 

 

-

 

Share-based compensation

 

 

3,937

 

 

 

13,536

 

Total adjustments

 

 

20,153

 

 

 

12,329

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Decrease in accounts receivable

 

 

12,539

 

 

 

9,706

 

Increase in inventory

 

 

(1,496

)

 

 

(302

)

Decrease in prepaid expenses and other current assets

 

 

975

 

 

 

2,221

 

Decrease in other non-current assets

 

 

238

 

 

 

181

 

Increase (decrease) in accounts payable

 

 

1,611

 

 

 

(3,040

)

(Decrease) increase in deferred revenue

 

 

(1,118

)

 

 

1,686

 

Decrease in accrued expenses and other current liabilities

 

 

(623

)

 

 

(65

)

Increase in other long-term liabilities

 

 

4,220

 

 

 

151

 

Increase in accrued interest on long-term debt

 

 

5,825

 

 

 

5,394

 

Net cash used in operating activities

 

 

(12,172

)

 

 

(22,494

)

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(1,122

)

 

 

(1,632

)

Net cash used in investing activities

 

 

(1,122

)

 

 

(1,632

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings from senior term loan

 

 

19,981

 

 

 

-

 

Repayment of senior term loan

 

 

(1,760

)

 

 

(2,640

)

Payment of debt issuance costs

 

 

(1,916

)

 

 

-

 

Payment of taxes withheld on stock awards

 

 

(161

)

 

 

-

 

Net cash provided by (used in) financing activities

 

 

16,144

 

 

 

(2,640

)

 

 

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

2,850

 

 

 

(26,766

)

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash, beginning of year

 

 

7,287

 

 

 

63,122

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash, end of period

 

$

10,137

 

 

$

36,356

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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, 2023

 

March 31, 2023

Net loss

 

$

(33,607

)

 

$

(20,889

)

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

Interest expense, net

 

 

5,153

 

 

 

4,534

 

Income tax benefit, net

 

 

(154

)

 

 

(82

)

Depreciation and amortization

 

 

720

 

 

 

1,052

 

EBITDA

 

 

(27,888

)

 

 

(15,385

)

Share-based compensation expense

 

 

1,998

 

 

 

1,939

 

Change in fair value of warrant liability and derivatives

 

 

(588

)

 

 

(642

)

Loss on extinguishment of debt

 

 

8,281

 

 

 

-

 

Restructuring costs

 

 

3,023

 

 

 

260

 

Adjusted EBITDA

 

$

(15,174

)

 

$

(13,828

)

Inventory impairment charge

 

 

7,215

 

 

 

-

 

Adjusted EBITDA excluding inventory impairment charge

 

$

(7,959

)

 

$

(13,828

)

 

 

Three Months Ended June 30,

($ in thousands)

 

2023

 

2022

Net loss

 

$

(33,607

)

 

$

(21,017

)

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

Interest expense, net

 

 

5,153

 

 

 

4,207

 

Income tax (benefit) expense, net

 

 

(154

)

 

 

(112

 

Depreciation and amortization

 

 

720

 

 

 

1,154

 

EBITDA

 

 

(27,888

)

 

 

(15,768

)

Share-based compensation expense

 

 

1,998

 

 

 

6,972

 

Change in fair value of warrant liability and derivatives

 

 

(588

 

 

 

(3,479

)

Loss on extinguishment of debt

 

 

8,281

 

 

 

-

 

Restructuring costs

 

 

3,023

 

 

 

-

 

Adjusted EBITDA

 

$

(15,174

)

 

$

(12,275

)

Inventory impairment charge

 

 

7,215

 

 

 

-

 

Adjusted EBITDA excluding inventory impairment charge

 

$

(7,959

)

 

$

(12,275

)

The following tables present the reconciliation of gross profit to Adjusted gross profit:

 

($ in thousands)

 

Three Months Ended June 30,

 

 

Three Months Ended March 31,

 

 

2023

 

%

 

 

2023

 

%

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

32,123

 

100.0

 

 

$

24,773

 

 

100.0

Cost of revenue

 

 

25,390

 

79.0

 

 

 

14,426

 

 

58.2

Gross profit

 

 

6,733

 

21.0

 

 

 

10,347

 

 

41.8

Inventory provision

 

 

7,215

 

22.4

 

 

 

-

 

 

-

Adjusted gross profit

 

$

13,948

 

43.4

 

 

$

10,347

 

 

41.8

($ in thousands)

 

Three Months Ended June 30,

 

 

Three Months Ended June 30,

 

 

2023

 

%

 

 

2022

 

%

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

32,123

 

100.0

 

 

$

46,945

 

100.0

Cost of revenue

 

 

25,390

 

79.0

 

 

 

28,117

 

59.9

Gross profit

 

 

6,733

 

21.0

 

 

 

18,828

 

40.1

Inventory provision

 

 

7,215

 

22.4

 

 

 

274

 

0.6

Adjusted gross profit

 

$

13,948

 

43.4

 

 

$

19,102

 

40.7

The following tables present the reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted net loss:

 

 

 

Three Months Ended

($ in thousands)

 

June 30, 2023

 

March 31, 2023

Net loss

 

$

(33,607

)

 

$

(20,889

)

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

Restructuring costs

 

 

3,023

 

 

 

260

 

Inventory impairment charge

 

 

7,215

 

 

 

-

 

Adjusted net loss

 

$

(23,369

)

 

$

(20,629

)

 

Three Months Ended June 30,

($ in thousands)

2023

 

2022

Net loss

$

(33,607

)

$

(21,017

)

 

 

 

 

 

Adjusted for:

 

 

 

 

Restructuring costs

 

3,023

 

 

-

 

Inventory impairment charge

 

7,215

 

 

-

 

Adjusted net loss

$

(23,369

)

$

(21,017

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230809102833/en/

Investor Relations Contact: Brett Scheiner 561-893-8660 IR@airspan.com

Media Contact: mediarelations@airspan.com