- $177.3 Million Annual Revenue
- First year as a NYSE American publicly traded company
- Continued industry leadership through innovative R&D team
led to two industry innovation awards, including for the Airspan 5G
Network-in-a-Box
- Strengthened management bench with several key hires to execute
global growth strategy, including new President and COO Glenn
Laxdal
- Airspan CEO Eric Stonestrom appointed chairman of the Company’s
board of directors. Replaces Tom Huseby, who continues to serve on
the board
- Continued ramp up of private networks capabilities and
portfolio, with several key partnerships with some of tech’s most
admired companies including Amazon Web Services (AWS), Cisco, Dell,
HPE and Qualcomm
- Named lead RAN vendor for growing Midwestern broadband provider
expanding rural wireless broadband network access using Airspan
CBRS and FWA solutions
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 fourth quarter and year ended December
31, 2021.
Key Fourth Quarter Financial Highlights
- Revenue of $50.4 million, up 29% sequentially from third
quarter 2021, down 38% year-over-year compared to exceptional
performance in fourth quarter 2020, following COVID lockdowns
- Gross margin of 41.1% compared to 44.0% in third quarter 2021,
and 45.8% in fourth quarter 2020, with the majority of the variance
due to supply chain pressures.
- Net loss of $19.6 million, compared to a net loss of $27.0
million in third quarter 2021, and net income of $8.3 million for
fourth quarter 2020
- Adjusted EBITDA (non-GAAP measure) was a loss of $8.0 million
compared to a loss of $10.4 million in third quarter 2021 and
income of $12.7 million in fourth quarter 2020
- Loss per share was 27 cents, compared to income per share of 14
cents in the fourth quarter 2020.
Fourth Quarter Successes and Recognition
- Strengthening strong CBRS market position with the launch of
Airspan’s first 5G CBRS product: the Airspan AirStrand 2200
solution was the first CBRS 5G Stand Alone small cell radio
approved by the FCC for use on US networks. It follows the
successful completion of 5G interoperability tests in the CBRS
spectrum band (n48), which lays the groundwork for the launch of
next generation CBRS-based devices using Airspan 5G and Open RAN
software and hardware for cable operator customers and other
vertical markets.
- One of the “Best Pilot Programs” In the US/Fixed Wireless
Access Market: Mimosa by Airspan beat out its FWA and Wi-Fi
solutions competitors to win the RAN provider business for
Amarillo, Texas’ government stimulus-funded Digital Divide program,
Amarillo Connected. In addition, Airspan extended its sales
resources aggressively to capture business via stimulus revenue,
leveraging Airspan’s leading FWA portfolio across a multitude of
broadband connectivity programs.
- Leveraging international government stimulus for 5G
deployments: In addition to US government stimulus funding
broadband deployments, Airspan is a member in a consortium of
industry and academic partners that secured funding from the UK
Department of Digital, Culture, Media and Sport (DCMS).
Full Year 2021 Financial Highlights
- Began trading as a public company on August 16, 2021 under the
ticker symbol, MIMO
- Annual revenue of $177.3 million, up 3% year-over-year compared
to 2020
- Product and software license revenue up 13% year-over-year
compared to 2020
- Gross margin of 44% compared to 48.6% in 2020
- Net loss of $70.5 million, compared to a net loss of $25.6
million for the full year 2020
- Adjusted EBITDA (non-GAAP measure) was a loss of $29.1 million,
compared to a loss of $9.4 million for the full year 2020
- Loss per share was $1.09, compared to a loss per share of 43
cents for the full year 2020.
Full Year 2021 Successes and Recognition
- Deployed 80+ private networks worldwide, and initiated
deployment of a National Air-to-Ground Network: Airspan’s 5G
Massive MIMO Antennas & Open RAN Software help Gogo Achieve
Major 5G Air-to-Ground Milestones
- Launched new CBRS 5G indoor and outdoor solutions, including
our first 5G CBRS products
- Customer Base Diversification: Two domestic cable operators
placed their first purchase orders with Airspan during 2021.
Airspan’s AirStrand 2200 is the first solution to receive FCC
approval to serve these customers. Airspan initiated deployment in
2021.
- Mimosa/Fixed Wireless Access Solutions:
- Announced the launch of the new A6/C6 series, a new FWA gigabit
solution, featuring multi-gigabit speeds to expand stimulus use
cases originally targeted at fiber architectures only.
- Awards/External Recognition:
- Airspan was named the winner of two 2021 Fierce Telecom
Innovation Awards in December 2021 including its innovative 5G
Starter Kit – A Network in a Box solution that is powering Private
Network deployments around the world, and its innovative Digital
Divide solution providing connectivity to the under-served.
- Airspan’s 5G OpenRANGE mmWave outdoor small cell solution won
the 2021 Small Cell Forum Award for excellence in commercial
deployment with Rakuten for the fourth consecutive year.
- Talent Acquisition: Airspan continued to hire engineers and
sales professionals to accelerate growth, namely from the 5G
product portfolio, including innovative software and hardware.
Stonestrom Appointed Chairman
Airspan’s CEO Eric Stonestrom has been appointed chairman of the
Company’s board of directors. He replaces Tom Huseby, who continues
to serve on the board.
Supply Chain Update
Demand for our products is strong, though supply chain
challenges are still leading to increasingly long lead times. We
continue to work hard in a number of ways to mitigate these
challenges, finding alternative components, instituting multiple
technological design changes and working closely with our partners.
In this environment supply chain pressures center primarily around
component availability, higher spot purchase prices for hardware
components and increased shipping costs. While we have begun to
pass some of these expenses on to customers through price
increases, we expect the increased cost impact of components and
freight to continue. We anticipate such supply chain challenges to
extend through 2022.
Relationships with Some of the Tech World’s Most Admired
Companies: AWS, Cisco, Dell, HPE and Qualcomm
“We are seeing an explosion of interest in enterprise 5G private
network solutions,” said Airspan Chairman and CEO Eric Stonestrom.
“In conjunction, we recently announced several key partnerships and
working relationships with some of tech’s most admired companies,
while at Mobile World Congress. These partnerships include Amazon
Web Services (AWS), Cisco, Dell, HPE and Qualcomm, as we ramp up
our private networks capabilities and portfolio.”
New President/COO Named to Execute Growth Strategy
Airspan recently named Glenn Laxdal as its new President and
COO, to execute the growth strategy and scale the business,
overseeing operations, customer service and product management
divisions, along with the Broadband Airspan by Mimosa organization.
Laxdal is a senior technology executive with over 25 years of
global experience in the wireless, software and computing
industries.
“Bringing on the right leaders with the ability and experience
to execute on our aggressive plans is a critical component of our
strategy for long-term, sustainable growth,” said Stonestrom.
“Glenn is focused on accelerating our plans to grow revenue and
market share to take advantage of the tremendous market
opportunities for 5G, Open RAN, Private Networks and Fixed Wireless
Access (FWA) solutions.”
Business Outlook
We anticipate first quarter 2022 revenue of approximately $38
million with gross margin of approximately 32%. Both figures were
impacted by significant supply chain costs and challenges from
COVID-19 restrictions in Asia.
The information with respect to first quarter 2022 above is
preliminary, based upon Airspan’s estimated and currently available
information and is subject to revision based upon, among other
things, Airspan’s financial closing procedures. The Company’s
actual results may differ from these estimates due to the
completion of its financial closing procedures and final
adjustments and other developments that may arise between the date
of this news release and the time the Company’s condensed
consolidated financial statements for the first quarter 2022 are
completed. Readers are cautioned not to place undue reliance on
these estimates.
Earnings Conference Call
A conference call with Airspan executives will be held tomorrow,
Tuesday, April 12 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 may contain “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 we operate; changes in laws and
regulations affecting our business; the risk that we and our
current and future collaborators are unable to successfully develop
and commercialize our products or services, or experience
significant delays in doing so; the risk that we do not achieve or
sustain profitability; the risk that we will need to raise
additional capital to execute our business plan, which may not be
available on acceptable terms or at all; the risk that we
experience difficulties in managing our 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 our products and services; and the risk that we are unable to
secure our 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 our Annual
Report on Form 10-K for the year ended December 31, 2021, filed
with the U.S. 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 we
disclaim 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 we believe 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.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except for
share data)
December 31,
2021
2020
ASSETS
Current assets:
Cash and cash equivalents
$
62,937
$
18,196
Restricted cash
185
422
Accounts receivable, net of allowance of
$309 and $374 at December 31, 2021 and 2020, respectively
57,980
70,621
Inventory
17,217
12,019
Prepaid expenses and other current
assets
18,833
8,602
Total current assets
157,152
109,860
Property, plant and equipment, net
7,741
4,833
Goodwill
13,641
13,641
Intangible assets, net
6,438
7,629
Right-of-use assets, net
6,585
7,882
Other non-current assets
3,942
3,837
Total assets
$
195,499
$
147,682
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable
$
29,709
$
36,849
Deferred revenue
2,902
7,521
Other accrued expenses
26,967
22,538
Senior term loan, current portion
3,187
–
Subordinated debt
10,577
10,065
Current portion of long-term debt
275
298
Total current liabilities
73,617
77,271
Long-term debt
–
2,087
Subordinated term loan - related party
37,991
34,756
Senior term loan
37,876
36,834
Convertible debt
41,343
–
Other long-term liabilities
20,924
17,147
Total liabilities
211,751
168,095
Stockholders’ deficit:
Common stock, $0.0001 par value;
250,000,000 shares authorized; 72,335,952 and 59,710,047 shares
issued and outstanding at December 31, 2021 and 2020,
respectively
7
6
Additional paid-in capital
749,592
674,906
Accumulated deficit
(765,851
)
(695,325
)
Total stockholders’ deficit
(16,252
)
(20,413
)
Total liabilities and stockholders’
deficit
$
195,499
$
147,682
AIRSPAN NETWORKS HOLDINGS
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except for
share data)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
2021
2020
Revenues:
Products and software licenses
$
44,684
$
73,818
$
151,172
$
134,338
Maintenance, warranty and services
5,692
7,728
26,111
38,617
Total revenues
50,376
81,546
177,283
172,955
Cost of revenues:
Products and software licenses
28,836
43,196
95,442
84,375
Maintenance, warranty and services
849
1,031
3,870
4,477
Total cost of revenues
29,685
44,227
99,312
88,852
Gross profit
20,691
37,319
77,971
84,103
Operating expenses:
Research and development
15,923
13,906
63,350
52,858
Sales and marketing
8,682
7,274
33,839
28,738
General and administrative
12,631
4,565
40,878
16,555
Amortization of intangibles
294
359
1,191
1,733
Loss on sale of assets
–
–
–
22
Total operating expenses
37,530
26,104
139,258
99,906
(Loss) income from operations
(16,839
)
11,215
(61,287
)
(15,803
)
Interest expense, net
(4,233
)
(1,746
)
(12,813
)
(6,422
)
Change in fair value of warrant liability
and derivatives, net
895
(1,566
)
4,116
(3,322
)
Gain on extinguishment of debt
–
–
2,096
–
Other expense, net
(743
)
(709
)
(3,328
)
(878
)
(Loss) income before income taxes
(20,920
)
7,194
(71,216
)
(26,425
)
Income tax benefit
1,314
1,152
690
782
Net (loss) income
$
(19,606
)
$
8,346
$
(70,526
)
$
(25,643
)
(Loss) earnings per share - basic and
diluted
$
(0.27
)
$
0.14
$
(1.09
)
$
(0.43
)
Weighted average shares outstanding -
basic and diluted
72,183,563
59,710,047
64,509,718
59,710,047
AIRSPAN NETWORKS HOLDINGS
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Year Ended December
31,
2021
2020
Cash flows from operating activities:
Net loss
$
(70,526
)
$
(25,643
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
4,294
4,640
Foreign exchange (gain) loss on long-term
debt
(14
)
26
Gain on extinguishment of debt
(2,096
)
—
Change in fair value of warrants and
derivatives
(7,940
)
—
Share-based compensation expense
10,577
2,643
Loss on disposal of property, plant and
equipment
22
3
Bad debt expense
289
5
Total adjustments
5,132
7,317
Changes in operating assets and
liabilities:
Decrease (increase) in accounts
receivable
12,352
(30,345
)
(Increase) decrease in inventory
(5,198
)
5,123
Decrease in prepaid expenses and other
current assets
(6,547
)
(517
)
Increase in other operating assets
(105
)
(380
)
(Decrease) increase in accounts
payable
(10,790
)
12,012
Increase in deferred revenue
(4,619
)
(2,514
)
Increase in other accrued expenses
4,429
5,104
Increase in other long-term
liabilities
616
5,889
Increase in accrued interest on long-term
debt
8,571
3,587
Net cash used in operating activities
(66,685
)
(20,367
)
Cash flows from investing activities:
Purchase of property, plant and
equipment
(6,033
)
(2,226
)
Net cash used in investing activities
(6,033
)
(2,226
)
Cash flows from financing activities:
Repayments of line of credit, net
—
(1,993
)
Borrowings under senior term loan
—
6,005
Borrowings under other long-term debt
—
2,073
Proceeds from the Business Combination,
issuance of convertible debt and PIPE financing, net of issuance
costs paid
115,501
—
Proceeds from the exercise of stock
options
1,074
—
Proceeds from the sale of Series G stock,
net
—
21,913
Proceeds from the sale of Series H stock,
net
505
8,074
Proceeds from the issuance of Series H
warrants
142
2,126
Net cash provided by financing
activities
117,222
38,198
Net increase in cash, cash equivalents and
restricted cash
44,504
15,605
Cash, cash equivalents and restricted
cash, beginning of year
18,618
3,013
Cash, cash equivalents and restricted
cash, end of year
$
63,122
$
18,618
The following tables present the
reconciliation of net (loss) income, the most directly comparable
GAAP measure, to Adjusted EBITDA:
Three Months Ended
Dec. 31,
Sept. 30,
($ in thousands)
2021
2021
Net loss
$
(19,606
)
$
(26,953
)
Adjusted for:
Interest expense
4,233
3,630
Income tax (benefit) charge
(1,314
)
457
Depreciation and amortization
1,177
988
EBITDA
(15,510
)
(21,878
)
Share-based compensation expense
8,427
661
Change in fair value of warrant liability
and derivatives
(895
)
(11,562
)
Transaction costs allocated to the
warrants
-
3,824
Management Incentive Plan expense related
to Business Combination
-
18,513
Adjusted EBITDA
$
(7,978
)
$
(10,442
)
Three Months Ended December
31,
($ in thousands)
2021
2020
Net (loss) income
$
(19,606
)
$
8,346
Adjusted for:
Interest expense
4,233
1,746
Income tax benefit
(1,314
)
(1,152
)
Depreciation and amortization
1,177
1,016
EBITDA
(15,510
)
9,956
Share-based compensation expense
8,427
1,161
Change in fair value of warrant liability
and derivatives
(895
)
1,566
Adjusted EBITDA
$
(7,978
)
$
12,683
Year Ended December
31,
($ in thousands)
2021
2020
Net loss
$
(70,526
)
$
(25,643
)
Adjusted for:
Interest expense
12,813
6,422
Income tax benefit
(690
)
(782
)
Depreciation and amortization
4,294
4,640
EBITDA
(54,109
)
(15,363
)
Share-based compensation expense
10,577
2,643
Change in fair value of warrant liability
and derivatives
(7,940
)
3,322
Transaction costs allocated to the
warrants
3,824
–
Management Incentive Plan expense related
to Business Combination
18,513
–
Adjusted EBITDA
$
(29,135
)
$
(9,398
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220411005969/en/
Investor Relations Contact: Brett Scheiner 561-893-8660
IR@airspan.com
Media Contact: Howie Waterman 917-359-5505
hwaterman@airspan.com
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