- Expansion purchase order for ruggedized DU from large Open
RAN-based operator
- 4 largest customers all signed new purchase orders during the
quarter
- Continued momentum in the US and Europe deploying private
networks
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 first quarter ended March 31, 2022.
Key First Quarter Financial Highlights
- Revenue of $37.6 million, decreased 25% sequentially from
fourth quarter 2021, and decreased 18% year-over-year
- Gross margin of 32.1% compared to 41.1% in fourth quarter 2021,
and 45.6% in first quarter 2021
- Net loss of $29.7 million, compared to a net loss of $19.6
million in fourth quarter 2021, and a net loss of $13.5 million for
first quarter 2021
- Adjusted EBITDA (non-GAAP measure) was a loss of $18.0 million
compared to a loss of $8.0 million in fourth quarter 2021 and a
loss of $5.4 million in first quarter 2021
- Loss per share was 41 cents, compared to loss per share of 27
cents in the fourth quarter 2021 and a loss per share of 23 cents
in first quarter 2021
First Quarter Business Highlights:
- Four largest customers placed new purchase orders during the
first quarter
- Continued momentum in private network deployments:
- Airspan continues to deploy private networks in both the US and
Europe, accelerated by distribution agreements announced during the
first quarter with some of Tech’s most admired companies
- Continued progress on the deployment of Gogo Business
Aviation’s (NYSE:GOGO) 5G Air-to-Ground network
- Announced private networks in connected car applications and
deployment of a hospitality industry private network represent
additional use cases
- Entered significant field trial phase with a large US cable
operator’s CBRS network
- Selected as the lead RAN vendor for CBRS Fixed Wireless Access
(FWA) solutions by Mercury Broadband, a leading provider of
high-speed internet across rural markets in the midwestern US and a
major winning bidder for the FCC’s RDOF initiatives
- Entered FCC testing with our new A6/C6 P2MP fixed wireless
access product
- Continued focus on supply chain to mitigate related challenges
including finding alternative components, instituting multiple
technological design changes and working closely with our
partners
Continued Strong Demand for Innovative Solutions
Portfolio “We continue to execute our growth plan and see
healthy demand for our innovative products and solutions,” said
Airspan Chairman and CEO Eric Stonestrom. “However, the supply
chain environment is meaningfully impacting sales and margins as
seen in this quarter’s results.”
“Despite the supply chain challenges, all four of our largest
customers signed new purchase orders during the quarter and we
continue to work closely with Gogo on the deployment of their
national Air-to-Ground 5G network for business aviation,” said
Airspan President and Chief Operating Officer Glenn Laxdal. “We
continue to expand and diversify our customer base. Our momentum in
private network deployments continues as well, particularly in the
US and Europe. And Airspan was named lead RAN provider for our CBRS
solutions with Mercury Broadband for their rural broadband network
expansion, and have already deployed hundreds of radios, with more
to come.”
Business Outlook We anticipate second quarter 2022
revenue of $44 million - $48 million at a gross margin of 38% -
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 Thursday, May 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 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 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.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except for
share data)
March 31, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
45,930
$
62,937
Restricted cash
185
185
Accounts receivable, net of allowance of
$308 and $309 as of March 31, 2022 and December 31, 2021,
respectively
49,788
57,980
Inventory
18,982
17,217
Prepaid expenses and other current
assets
18,740
18,833
Total current assets
133,625
157,152
Property, plant and equipment, net
7,711
7,741
Goodwill
13,641
13,641
Intangible assets, net
6,154
6,438
Right-of-use assets, net
5,957
6,585
Other non-current assets
3,854
3,942
Total assets
$
170,942
$
195,499
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable
$
28,621
$
29,709
Deferred revenue
3,219
2,902
Accrued expenses
25,537
26,967
Senior term loan, current portion
3,577
3,187
Subordinated debt
10,707
10,577
Current portion of long-term debt
272
275
Total current liabilities
71,933
73,617
Subordinated term loan - related party
38,834
37,991
Senior term loan
37,702
37,876
Convertible debt
41,970
41,343
Other long-term liabilities
19,929
20,924
Total liabilities
210,368
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 as of March 31, 2022 and December 31, 2021
7
7
Additional paid-in capital
756,156
749,592
Accumulated deficit
(795,589
)
(765,851
)
Total stockholders’ deficit
(39,426
)
(16,252
)
Total liabilities and stockholders’
deficit
$
170,942
$
195,499
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March
31,
2022
2021
Revenues:
Products and software licenses
$
33,576
$
38,743
Maintenance, warranty and services
3,988
7,192
Total revenues
37,564
45,935
Cost of revenues:
Products and software licenses
24,473
23,889
Maintenance, warranty and services
1,022
1,102
Total cost of revenues
25,495
24,991
Gross profit
12,069
20,944
Operating expenses:
Research and development
16,521
14,374
Sales and marketing
9,330
7,360
General and administrative
11,158
4,455
Amortization of intangibles
284
299
Total operating expenses
37,293
26,488
Loss from operations
(25,224
)
(5,544
)
Interest expense, net
(4,568
)
(2,438
)
Other expense, net
(49
)
(5,492
)
Loss before income taxes
(29,841
)
(13,474
)
Income tax benefit (expense)
103
(75
)
Net loss
$
(29,738
)
$
(13,549
)
Loss per share - basic and diluted
$
(0.41
)
$
(0.23
)
Weighted average shares outstanding -
basic and diluted
72,335,952
59,710,047
AIRSPAN NETWORKS HOLDINGS
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March
31,
2022
2021
Cash flows from operating activities:
Net loss
$
(29,738
)
$
(13,549
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
1,121
1,053
Foreign exchange (gain) loss on long-term
debt
(3
)
(8
)
Bad debt expense
7
-
Non-cash debt amendment fee
463
-
Change in fair value of warrants and
derivatives
457
3,972
Share-based compensation
6,564
661
Total adjustments
8,609
5,678
Changes in operating assets and
liabilities:
Decrease in accounts receivable
8,185
39,223
Increase in inventory
(1,765
)
(49
)
Decrease (increase) in prepaid expenses
and other current assets
93
(1,624
)
Decrease in other operating assets
88
119
Decrease in accounts payable
(1,088
)
(20,063
)
Increase (decrease) in deferred
revenue
317
(714)
(Decrease) increase in other accrued
expenses
(1,430
)
2,388
Decrease in other long-term
liabilities
(824
)
(495
)
Increase in accrued interest on long-term
debt
2,673
2,000
Net cash (used in) provided by operating
activities
(14,880
)
12,914
Cash flows from investing activities:
Purchase of property, plant and
equipment
(807
)
(1,390
)
Net cash used in investing activities
(807
)
(1,390
)
Cash flows from financing activities:
Repayment of senior term loan
(1,320
)
-
Proceeds from the sale of Series H stock,
net
-
505
Proceeds from the issuance of Series H
warrants
-
142
Net cash provided by financing
activities
(1,320
)
647
Net (decrease) increase in cash, cash
equivalents and restricted cash
(17,007
)
12,171
Cash, cash equivalents and restricted
cash, beginning of year
63,122
18,618
Cash, cash equivalents and restricted
cash, end of period
$
46,115
$
30,789
The following tables present the reconciliation of net loss, the
most directly comparable GAAP measure, to Adjusted EBITDA:
Three Months Ended
Mar. 31,
Dec. 31,
($ in thousands)
2022
2021
Net loss
$
(29,738
)
$
(19,606
)
Adjusted for:
Interest expense, net
4,568
4,233
Income tax benefit
(103
)
(1,314
)
Depreciation and amortization
1,121
1,177
EBITDA
(24,152
)
(15,510
)
Share-based compensation expense
6,564
8,427
Change in fair value of warrant liability
and derivatives
(457
)
(895
)
Adjusted EBITDA
$
(18,045
)
$
(7,978
)
Three Months Ended March
31,
($ in thousands)
2022
2021
Net loss
$
(29,738
)
$
(13,549
)
Adjusted for:
Interest expense, net
4,568
2,438
Income tax (benefit) expense
(103
)
75
Depreciation and amortization
1,121
1,053
EBITDA
(24,152
)
(9,983
)
Share-based compensation expense
6,564
661
Change in fair value of warrant liability
and derivatives
(457
)
3,972
Adjusted EBITDA
$
(18,045
)
$
(5,350
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510006187/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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