Cambium Networks Corp (CMBM) 2024 Q3 法說會逐字稿

Good day. And thank you for standing by. Welcome to the Cambium Networks third quarter, 2024 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session to ask a question during the session. (Operator Instruction)

再會。感謝您的支持。歡迎參加 Cambium Networks 2024 年第三季財務業績電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節，在會議期間提出問題。（操作員說明）

I would now like to hand the conference over to your first speaker today. Jacob Sayer, Chief Financial Officer. Please go ahead.

我現在想把會議交給今天的第一位發言者。雅各·塞耶，財務長。請繼續。

Welcome everyone and thank you for joining us today for Cambium Networks third quarter, 2024 financial results conference call and welcome to everyone else as well for joining via the webcast.

歡迎大家，感謝您今天加入我們參加 Cambium Networks 2024 年第三季財務業績電話會議，也歡迎其他人透過網路廣播加入。

My name is Jacob Sayer. I am the Chief Financial Officer of Cambium Networks, and I am joined by Morgan Kurk, our President and CEO.

我的名字是雅各·塞耶。我是 Cambium Networks 的財務官，與我一起擔任總裁兼執行長的還有摩根·庫爾克 (Morgan Kurk)。

The financial results press release for the third quarter is accessible on the investor page of our website and has been submitted to the SEC on form 8K.

第三季的財務業績新聞稿可在我們網站的投資者頁面上訪問，並已以 8K 表格提交給 SEC。

The transcript of today's prepared remarks will also be available on our investor page after the conclusion of the call.

今天準備好的發言稿也將在電話會議結束後在我們的投資者頁面上提供。

As a reminder today's remarks including those made during Q&A will contain forward-looking statements about the company's outlook and forecasted performance. These statements are based on current conditions, forecasts and assumptions. Risks and uncertainties could cause actual results to different materially from today's remarks except as required by law. Camping networks does not undertake any obligation to update or revise any forward-looking statements for any reason after today's presentations. it's our policy not to reiterate our financial outlook.

提醒一下，今天的言論（包括問答期間的言論）將包含有關公司前景和預測業績的前瞻性陳述。這些陳述是基於當前狀況、預測和假設。除法律要求外，風險和不確定性可能導致實際結果與今天的言論有重大差異。在今天的演示之後，露營網絡不承擔以任何理由更新或修改任何前瞻性陳述的義務。我們的政策是不重申我們的財務前景。

We encourage listeners to review the full list of risk factors included in the safe harbor statement in today's financial press release and our most recent sec filings including the most recent 10-K and 10-Qs.

我們鼓勵聽眾查看今天的財務新聞稿中的安全港聲明中包含的完整風險因素清單以及我們最近的 SEC 備案文件（包括最新的 10-K 和 10-Q）。

We will also reference both GAAP and Non-GAAP financial measures and specifically note that all sequential and year over year comparisons reference Non-GAAP numbers except where that's otherwise noted, a reconciliation of non-GAAP measures to GAAP is included in the appendix to today's financial results press release.

我們還將參考 GAAP 和非 GAAP 財務指標，並特別指出，所有連續比較和同比比較均參考非 GAAP 數字，除非另有說明，非 GAAP 指標與 GAAP 的調節表包含在今天的附錄中。稿。

Now let's turn to the agenda. Morgan will provide key operational highlights for the third quarter and I will provide a recap of the financial results for the third quarter 2024 and discuss our financial outlook for the fourth quarter.

現在讓我們轉向議程。摩根將提供第三季的主要營運亮點，我將回顧 2024 年第三季的財務業績，並討論我們第四季的財務前景。

Our prepared remarks will be followed by a Q&A session.

我們準備好的發言之後將進行問答環節。

So now I would like to turn the call over to Morgan.

現在我想把電話轉給摩根。

Thank you, Jacob. Revenues for Q3 2024 were $43.7 million. Recognizing the market challenges, we are pleased that the revenues were within the outlook range we provided during our Q2 2024 financial results call on August 8th, 2024.

謝謝你，雅各。2024 年第三季的營收為 4,370 萬美元。有鑑於市場挑戰，我們很高興收入處於我們在 2024 年 8 月 8 日召開的 2024 年第二季財務業績電話會議上提供的展望範圍內。

Equally important to note, we grew in all geographies in our enterprise business with revenues up sequentially by 34% to $15.2 million.

同樣重要的是，我們的企業業務在所有地區都實現了成長，收入環比增長了 34%，達到 1,520 萬美元。

This was offset by lower revenues in our point-to-point TTP business primarily due to lower defense revenues. While we are confident that defense revenues will grow next year, it appears that the defense budgets for communication equipment were constrained due to funding pressures from money's required in active conflict zones.

這被我們的點對點 TTP 業務收入下降所抵消，這主要是由於國防收入下降。雖然我們對明年國防收入將成長充滿信心，但由於活躍衝突地區所需資金帶來的資金壓力，通訊設備的國防預算似乎受到限制。

Non-GAAP gross margin improved again quarter over quarter, growing to 42.3%.

非 GAAP 毛利率較上月再次改善，增加至 42.3%。

Operating margins also improved sequentially as we continue to lower our breakeven point. Free cash flow was a positive $5.2 million during Q3 2024 and our cash balance stood at $46.5 million as of September 30th.

隨著我們持續降低損益平衡點，營業利益率也持續改善。2024 年第三季的自由現金流為正 520 萬美元，截至 9 月 30 日，我們的現金餘額為 4,650 萬美元。

These results support our belief that the business is moving in the right direction financially operationally and strategically. Sales of Cambium's products out of the distribution channel as reported by Cambium's distributors were again higher for Q3 2024 than our reported revenues and we saw continued declines in channel inventories. We continue to expect sales in and sales out to be at equilibrium by the end of the year.

這些結果支持了我們的信念，即業務在財務營運和策略上正朝著正確的方向發展。根據 Cambium 經銷商報告，2024 年第三季 Cambium 產品在通路外的銷售額再次高於我們報告的收入，我們看到通路庫存持續下降。我們繼續預計，到今年年底，進銷存將達到平衡。

Looking forward, lower channel inventories are expected to result in Cambium's revenue being more directly tied to end user demand.

展望未來，通路庫存下降預計將導致 Cambium 的收入更直接地與最終用戶需求掛鉤。

Looking at some new customer launches. one of the world's largest oil and gas companies and an existing Cambium networks Customer purchased PMP 450V's to upgrade their existing deployment of PMP 450I for faster speeds in the six gigahertz band. The company also selected the cnMatrix TX 2000 series industrial grazed switch that supports extended temperature ranges and power over ethernet capabilities among other attributes required by outdoor environments, we saw a similar adoption of PMP 450V by other industrial customers in the United States during Q3 and expect to maintain that trend.

看看一些新客戶的推出。全球最大的石油和天然氣公司之一以及現有的 Cambium 網路 客戶購買了 PMP 450V，以升級其現有的 PMP 450I 部署，從而在 6 GHz 頻段實現更快的速度。該公司還選擇了cnMatrix TX 2000 系列工業級交換機，該交換機支援擴展溫度範圍和乙太網路供電功能以及室外環境所需的其他屬性，我們在第三季度看到美國其他工業客戶也採用了類似的PMP 450V，並預計以維持這一趨勢。

We continue to drive growth in logistics and retail market segments as one of the world's largest retailers selected our cnWave 60 gigahertz platform to provide wireless connectivity between retail stores and adjacent fueling stations and in their 37 major distribution centers connecting on site primary and remote facilities. The 60 gigahertz cnWave platform will also provide backup paths to existing fiber lines as discussed on our last quarter's call, Linus successfully successful deployment of Cambium's 60 Ghert cnWave solution to provide gigabit access to over 4,700 homes on Walney Island off the west coast of England continues to impress due to both the rapid deploy time to deploy which is less than 12 weeks and the high penetration rate which was greater than 20% only weeks after deployment, one has now been recognized by the United Kingdom's Wireless internet service provider Association Wispa with their best Gigabit wireless project UK Wispa Award in October.

我們繼續推動物流和零售細分市場的成長，因為全球最大的零售商之一選擇了我們的cnWave 60 GHz 平台來提供零售店和鄰近加油站之間以及連接現場主要和遠端設施的37 個主要配送中心之間的無線連線。60 GHz cnWave 平台也將為現有光纖線路提供備份路徑，正如我們在上個季度的電話會議中所討論的那樣，Linus 成功部署了Cambium 的60 Ghert cnWave 解決方案，為英格蘭西海岸沃爾尼島的4,700 多個家庭提供千兆接入由於其不到12 週的快速部署時間和部署後僅幾週就超過20% 的高滲透率，令人印象深刻，現已獲得英國無線互聯網服務提供商協會Wispa的認可10月最佳千兆無線專案英國Wispa獎。

Following multiple deployments at their sites in the Caribbean and Latin America and Europe, Middle East and Africa regions. We completed our first deployment in the Pacific region at a franchise site of a global hospitality company. At the Samoa location, as with other sites, the Cambium Networks, Wi-Fi 6/6-E access points and cnMatrix switches are providing an exceptional guest experience and supporting the hotel's operations.

在加勒比海、拉丁美洲以及歐洲、中東和非洲地區的多個地點進行了多次部署。我們在太平洋地區的一家全球酒店公司的特許經營場所完成了首次部署。與其他地點一樣，薩摩亞酒店的 Cambium Networks、Wi-Fi 6/6-E 接入點和 cnMatrix 交換器正在提供卓越的賓客體驗並支援飯店的營運。

The network upgrade was part of a hotel wide renovation completed in October with a grand reopening. In Q4 we expect to complete additional development on our cnMatrix switch that is required for broader deployment across the company's many brands in 2025.

此次網路升級是飯店全面翻新工程的一部分，該工程已於 10 月完成並重新開業。我們預計在第四季度完成 cnMatrix 交換器的額外開發，這是 2025 年在公司多個品牌中進行更廣泛部署所需的。

Looking now at some new product launches that are key to our future success.

現在來看看一些新產品的發布，它們對我們未來的成功至關重要。

We released a 2x2 version of our PMP 450V subscriber module [SM]. It works in both 5 and 6 gigahertz. This product complements our 4x4 access point AP and our 4x4 [SM]. But at a lower cost, it is capable of more than 500 megabits data rate and it expects to be the workhorse of PMP 450 networks.

我們發布了 PMP 450V 用戶模組的 2x2 版本[SM]。它可以工作在 5 GHz 和 6 GHz 頻率。該產品補充了我們的 4x4 接入點 AP 和 4x4 [SM]。但以較低的成本，它能夠提供超過 500 兆位元的資料速率，並且有望成為 PMP 450 網路的主力。

The combination of back to back releases on the ePMP 4000 line has significantly boosted performance across many fronts.

ePMP 4000 系列上的連續發布組合顯著提高了許多方面的效能。

Release 5.8 brought beam forming support and with release 5.9 significant scalability enhancements were added to allow operators to deploy higher numbers of SM's per AP these advances combined to enable operators to offer more higher data rate packages and achieve price performance superiority.

5.8 版帶來了波束形成支持，5.9 版增加了顯著的可擴展性增強功能，允許運營商在每個AP 上部署更多數量的SM，這些進步相結合，使運營商能夠提供更多更高數據速率的包並實現性價比優勢。

Also in Q3, we introduced market apps, a new advanced service hosted from our cnMaestro platform that provides apps for customers and end users that are customized for specific use cases. The first two apps released in market apps are targeted at the multi dwelling unit MDU market which includes multifamily, student housing, assisted living and similar environments. These apps enable property managers, service providers and residents to manage Wi-Fi services with a simple workflow.

同樣在第三季度，我們推出了市場應用程序，這是由我們的 cnMaestro 平台託管的新高級服務，可為客戶和最終用戶提供針對特定用例定制的應用程式。市場應用程式中發布的前兩款應用程式針對多住宅單元 MDU 市場，其中包括多戶住宅、學生宿舍、輔助生活和類似環境。這些應用程式使物業經理、服務提供者和居民能夠透過簡單的工作流程管理 Wi-Fi 服務。

The market apps framework will be extended over time with new apps targeted at different verticals and high value use cases.

市場應用程式框架將隨著時間的推移而擴展，推出針對不同垂直領域和高價值用例的新應用程式。

Finally, total devices under cnMaestro cloud management in Q3 2024 increased approximately 3% from Q2 2024 and increased over 14% on a year over year basis.

最後，2024 年第三季 cnMaestro 雲端管理的設備總數較 2024 年第二季成長約 3%，年成長超過 14%。

I will now turn the call over to Jacob for a review of our Q3 2024 financial results and our Q424 financial outlook.

我現在將把電話轉給 Jacob，以審查我們 2024 年第三季的財務業績和第四季的財務前景。

Thank you, Morgan.

謝謝你，摩根。

Turning to revenue for the quarter Q3 2024 top line results of $43.7 million decreased 5% Sequentially as good growth in our enterprise business was offset by declines in our P2P. And to a lesser extent, our PMP businesses. Looking at our revenues More specifically, our enterprise business grew 34% sequentially as demand improved in all geographies and channel inventories continue to decline.

談到 2024 年第三季的收入，營收為 4,370 萬美元，下降了 5%，因為我們企業業務的良好成長被 P2P 業務的下滑所抵消。在較小程度上，我們的 PMP 業務。看看我們的收入 更具體地說，隨著所有地區的需求改善和通路庫存持續下降，我們的企業業務環比增長了 34%。

Our PMP business declined slightly down 8% sequentially resulting primarily from slower adoption of 6 gigahertz deployments in North America.

我們的 PMP 業務比上一季小幅下降 8%，這主要是由於北美 6 GHz 部署的採用速度較慢。

The P2P business declined by 32% sequentially due to weakness in defense orders, especially in Europe.

由於國防訂單疲軟，尤其是歐洲的國防訂單疲軟，P2P 業務較上季下降 32%。

While we typically expect defense to grow with historic trends in the second half of the year. This year, we are seeing a delay in projects as Morgan mentioned due to current budget prioritization for active conflict zones. By region Europe, Middle East Africa revenues samia decreased 19%. Sequentially reflecting a decline in the P2P business for defense, somewhat offset by higher enterprise revenues.

雖然我們通常預期下半年國防將按照歷史趨勢成長。今年，正如摩根所提到的，由於當前預算優先考慮活躍衝突地區，我們看到專案出現延遲。按地區劃分，歐洲、中東非洲薩米亞收入下降19%。這反映出國防 P2P 業務的下降，但在一定程度上被企業收入的增加所抵消。

North America revenue was higher by 3% driven by higher enterprise, Asia Pacific revenue decreased by 14% Sequentially on lower PMP and P2P revenues again partially offset by higher enterprise revenues.

由於企業收入增加，北美收入成長了 3%，亞太地區收入下降了 14%，PMP 和 P2P 收入下降再次被企業收入增加部分抵消。

And Central America, Latin America, CALA improved by 11% quarter over quarter.

中美洲、拉丁美洲的 CALA 環比增加了 11%。

Now let's move on to gross margin. Our Non-GAAP gross margin for Q3 2024 continued to move higher and was 42.3% compared to 33.5% in Q2.

現在讓我們轉向毛利率。我們 2024 年第三季的非 GAAP 毛利率持續上升，為 42.3%，而第二季為 33.5%。

The higher quarter over quarter, Non-GAAP gross margin primarily reflects lower E&O and losses on supplier commitments.

非 GAAP 毛利率環比上升主要反映了 E&O 的下降以及供應商承諾的損失。

We continue to work hard to manage our operating costs as we discussed last quarter, focusing resources on those products and projects that are most critical for Cambium's future success.

正如我們上季度討論的那樣，我們繼續努力管理營運成本，將資源集中在對 Cambium 未來成功最關鍵的產品和項目上。

Based upon our actions, Non-GAAP total operating expenses including depreciation and amortization in Q3 2024, So at $22.1 million lower by 1.2 million. Sequentially as the steps we have taken to better manage and reduce our expenses continue to have an impact.

根據我們的行動，2024 年第三季的非 GAAP 總營運費用（包括折舊和攤提）為 2,210 萬美元，減少了 120 萬美元。因此，我們為更好地管理和減少開支而採取的措施繼續產生影響。

We have now reduced our adjusted EBITDA break-even point to an approximately $50 million quarterly revenue run rate.

我們現在已將調整後的 EBITDA 損益平衡點降低至約 5,000 萬美元的季度營收運行率。

We also saw the impact of these actions on our Non-GAAP net loss for Q3 2024 which was $3.8 million or a loss of 14cents per diluted share. An improvement from the Non-GAAP net loss of $7.1 million or a loss of 25cents per diluted share during Q2.

我們也看到了這些行動對 2024 年第三季非 GAAP 淨虧損的影響，淨虧損為 380 萬美元，即稀釋後每股虧損 14 美分。較第二季非 GAAP 淨虧損 710 萬美元或稀釋後每股虧損 25 美分有所改善。

We see saw an even larger improvement in our adjusted EBITDA for Q3 2024. which was a loss of $2.3 million compared to a loss of $6.7 million for Q2.

我們發現 2024 年第三季的調整後 EBITDA 有了更大的改善，虧損 230 萬美元，而第二季虧損 670 萬美元。

Now let's move to cash flow and the balance sheet. Cash provided by operating activities was $8.9 million in Q3 2024 significantly higher than the cash provided by operating activities of $2.4 million In Q2. We are focused on improving the order to cash cycle, reducing inventories and managing working capital closely.

現在讓我們轉向現金流和資產負債表。2024 年第三季經營活動提供的現金為 890 萬美元，明顯高於第二季經營活動提供的現金 240 萬美元。我們專注於改善訂單到現金週期、減少庫存並密切管理營運資金。

Cash totaled $46.5 million as of September 30, 2024, and free cash flow for the quarter was a positive $5.2 million.

截至 2024 年 9 月 30 日，現金總額為 4,650 萬美元，本季自由現金流為正 520 萬美元。

Net inventories of $43 million in Q3, 2024 decreased by $7 million from Q2 2024 driven primarily by consumption.

2024 年第三季的淨庫存為 4,300 萬美元，較 2024 年第二季減少 700 萬美元，這主要是由消費推動的。

Our goal is to reduce and then maintain our inventories at approximately 90 days outstanding.

我們的目標是減少庫存並將其維持在大約 90 天的未清庫存。

As noted in the press release. As of September 30th, we remained in compliance with our monthly liquidity covenant for our outstanding bank debt at each measurement point during the quarter.

正如新聞稿中所述。截至 9 月 30 日，我們在本季的每個衡量點仍然遵守未償銀行債務的月度流動性契約。

But we were not in compliance with our trailing consolidated EBITDA covenant as of September 30.

但截至 9 月 30 日，我們並未遵守追蹤合併 EBITDA 契約。

The company was also not in compliance with its monthly liquidity covenant as of October 31st, the company is seeking a forbearance from the bank and is working with them to address its non-compliance with these covenants.

截至 10 月 31 日，該公司也沒有遵守其每月流動性契約，該公司正在尋求銀行的寬限期，並正在與銀行合作解決其不遵守這些契約的問題。

Moving to the fourth quarter financial outlook considering our current visibility. Our Q4 2024 financial outlook follows. Revenues between $40 million and $45 million non-GAAP gross margin between 42.5% to 44.5% non-GAAP operating loss of between $3 million to $5 million and adjusted EBITDA is expected to be between a negative $1 million to a negative $3 million an adjusted EBITDA margin between a negative 2% to a negative 7%.

考慮到我們目前的能見度，轉向第四季度的財務展望。我們的 2024 年第四季財務展望如下。營收在4,000 萬美元至4,500 萬美元之間，非GAAP 毛利率在42.5% 至44.5% 之間，非GAAP 營業虧損在300 萬美元至500 萬美元之間，調整後EBITDA 預計在負100 萬美元至負300 萬美元之間利潤率介於負 2% 至負 7% 之間。

In summary, we delivered on what we promised for the third quarter and continued to take action to improve our financial results looking forward. While the improvements may not be as large as we would like. We are confident that the company is moving in the right direction.

總之，我們兌現了第三季的承諾，並繼續採取行動改善未來的財務表現。雖然改進可能沒有我們希望的那麼大。我們相信公司正朝著正確的方向前進。

We are controlling the discretionary aspects of the business by lowering expenses. And as a result, we expect our results to continue to improve financially from here.

我們透過降低開支來控制業務的可自由支配部分。因此，我們預計我們的財務業績將繼續改善。

I will now call the turn the call back over to Morgan for closing remarks.

我現在將把電話轉回給摩根，讓他發表結束語。

I have consistently focused the organization on improving operationally platforming and optimizing our go to market for enterprise. We are starting to see results as an example, our operational costs are lower and we are using less capital in our supply chain.

我一直將組織的重點放在改進營運平台和優化我們的企業市場推廣上。我們開始看到結果作為例子，我們的營運成本更低，我們在供應鏈中使用的資本更少。

At this year's Wispapalooza, the wireless service provider show. We announced our new PMP platform, evo, this solution converges two of our major product lines, ePMP and PMP 450 into one unified platform. It offers a migration path and a road map to solutions that provide best in class performance with economic viability by merging traditional off the shelf Wi-Fi chips with customized FPGA components.

在今年的 Wispapalooza 無線服務供應商展會上。我們發布了新的 PMP 平台 evo，該解決方案將我們的兩個主要產品線 ePMP 和 PMP 450 整合到一個統一平台中。它提供了解決方案的遷移路徑和路線圖，透過將傳統的現成 Wi-Fi 晶片與定制的 FPGA 組件相結合，提供一流的性能和經濟可行性。

Our architecture has been well received and we are currently in full development ensuring that we are able to meet the future needs of our industry. In addition, our recent software releases for both our PMP 450 and ePMP product lines significantly improve both legacy and current shipping products. Creating genuine optimism about our near term opportunities in the important PMP business.

我們的架構受到了好評，目前正在全面開發，以確保我們能夠滿足產業未來的需求。此外，我們最近發布的 PMP 450 和 ePMP 產品線軟體顯著改進了傳統和當前的運輸產品。讓我們對重要的 PMP 業務中的近期機會產生真正的樂觀態度。

Equally exciting is how our enterprise business is now moving in a positive direction. This reflects our emphasis on this high potential portion of our portfolio. We have made significant changes in go to market by specializing some of our sales force focusing on specific verticals in both sales and product features and implementing a concierge service for our most important customers. I believe the progress we have made has been significant and expect it will produce meaningful results for the company while our defense business results were disappointing in the past quarter, I'm encouraged both by the positive technical feedback we continue to receive on significant future programs and the size and scope of a pipeline both in the US and overseas as leading indicators for our future business.

同樣令人興奮的是我們的企業業務現在正朝著正面的方向發展。這反映了我們對投資組合中這高潛力部分的重視。我們在進入市場方面做出了重大改變，我們的一些銷售人員專注於銷售和產品功能的特定垂直領域，並為我們最重要的客戶實施禮賓服務。我相信我們取得的進展是重大的，並預計它將為公司帶來有意義的成果，雖然我們的國防業務業績在過去一個季度令人失望，但我們繼續收到的關於未來重大項目的積極技術反饋讓我感到鼓舞以及美國和海外管道的規模和範圍作為我們未來業務的領先指標。

I would like to close by thanking our Cambium employees for their continued dedication to our mission and strategy. The transformation we were going through requires their continued tenacity and we are grateful for their effort with that. I would like to turn the call over to Ripka and begin the Q&A session.

最後，我要感謝我們的 Cambium 員工對我們使命和策略的持續奉獻。我們正在經歷的轉型需要他們持續的堅韌，我們感謝他們為此付出的努力。我想將電話轉給 Ripka 並開始問答環節。

Thank you.

謝謝。

At this time, we will conduct a question and answer session. (Operator Instruction) Please stand by while we compile the Q&A roster.

這時候，我們將進行問答環節。（操作員說明）我們正在整理問答名單，請稍候。

Our first question comes from the line of John Roy of Water Tower Research. Your line is now open.

我們的第一個問題來自水塔研究中心的約翰·羅伊。您的線路現已開通。

Great. Thank you. So I have a couple of questions. One, You were talking about the market challenges, certainly the defense stuff. What are you expecting expectations for this, you know, getting better? I guess one of the kind of things I'm looking at is gross margin. So do you think your improving gross margin is a sign, an early sign that the market is not quite as challenging in the future?

偉大的。謝謝。所以我有幾個問題。第一，您談到了市場挑戰，當然是國防的挑戰。你對此有什麼期待，你知道，變得更好嗎？我想我正在關注的事情之一就是毛利率。那麼，您認為毛利率的增加是一個跡象，是未來市場不再那麼具有挑戰性的早期跡象嗎？

I think, I mean, gross margins are certainly on an upward trend to meet the big movements over the last couple of quarter and gross margin is really getting our own house in order from an inventory perspective and the resulting excess and obsolete inventory charges dropping away. We're now down to just about a normal level for those, you know, charges and certainly they, and they continue to decrease, but in a smaller pace for next year, the normal operating range for, for Cambium should be in the high 40% to around 50% from a gross margin perspective. And so, you know, certainly with a helping revenue line or increasing revenue line, we would expect to approach those levels as we go through next year.

我認為，我的意思是，毛利率肯定呈上升趨勢，以適應過去幾個季度的大幅波動，從庫存角度來看，毛利率確實使我們自己的房子井然有序，由此產生的過剩和過時的庫存費用正在下降。我們現在已經將這些費用降到了正常水平，當然還有它們，而且它們還在繼續下降，但明年的步伐會更小，Cambium 的正常運營範圍應該在高位從毛利率來看，40%到50%左右。因此，您知道，當然，透過幫助收入線或增加收入線，我們預計明年將接近這些水平。

If you look though, I'll just add on to that. If you look at the markets, I think, certainly our, our defense market has better than, average margins on it. And as that increases, margins overall for the company will increase, in the commercial segments, there is still a great deal of price pressure.

如果你看的話，我會補充一下。如果你看看市場，我想，我們的國防市場肯定比平均利潤率好。隨著這一成長，公司的整體利潤率將會增加，在商業領域，仍然存在很大的價格壓力。

And we're dealing with that the best we can, but I don't expect that to be alleviated during most of next year, we continue to see that type of pressure going on in the market.

我們正在盡力應對這一問題，但我預計明年的大部分時間不會得到緩解，我們將繼續看到市場上持續存在的這種壓力。

Great. No, thanks on the defense stuff. I mean, I kind of know the answer to this. But do you feel like it's delayed or pushed out or it's just lost opportunity at this point?

偉大的。不，謝謝防守。我的意思是，我有點知道這個問題的答案。但您現在是否覺得它被推遲或推遲了，或者只是失去了機會？

So we are very comfortable in saying the business did not go to somebody else.

因此，我們可以很放心地說，這項業務沒有流向其他人。

Okay. However, so, that's sort of a push out comment. What you don't know in this business is whether governments just say I can do without. So the program doesn't go to its entire fruition. So that's the way I would answer this.

好的。然而，這有點像是推播評論。在這個行業你不知道的是政府是否只是說我可以不用。因此，該計劃並未取得全部成果。這就是我回答這個問題的方式。

Yeah. Yeah. No, I got it. So now on, on the you

是的。是的。不，我明白了。所以現在，關於你

go ahead

前進

on the bank situation. Can you give us any color on expectations when or resolution of that?

關於銀行的情況。您能否告訴我們有關何時或解決該問題的期望？

I really can't John, we're, we're in negotiations with the bank. Obviously, a private equity firm is involved in that as well.

我真的不能，約翰，我們正在與銀行談判。顯然，私募股權公司也參與其中。

You know that, so that there's no real news other than, right, other than the covenant breaches that took place and at the end of September and again, at the end of October, and that we are in negotiation with them. So, there's nothing concrete that we can, that we can signal to folks just yet.

你知道這一點，所以除了九月底和十月底發生的違反契約的事件之外，沒有任何真正的消息，而且我們正在與他們進行談判。因此，我們還沒有任何具體的資訊可以向人們發出訊號。

Understood. And may, well, the last question I have is, I mean, obviously enterprise is doing better.

明白了。也許，我的最後一個問題是，我的意思是，顯然企業做得更好。

Which is great. Do you feel like enterprise is kind of like the future for Cambium kind of where you're headed?

這太棒了。您是否覺得企業有點像 Cambium 的未來，就像您的發展方向？

Yeah. So I think for the past year, I have been signaling sort of the following direction. I think that the point to multi point market is being compressed by a variety of forces. And while I think the work that we are doing there will allow us to maintain share, maybe even grow it depending on how we execute things. I don't see this as a growth market in and of itself.

是的。所以我認為在過去的一年裡，我一直在發出以下方向的信號。我認為點對多點市場正在被多種力量壓縮。雖然我認為我們在那裡所做的工作將使我們能夠保持份額，甚至可能根據我們執行事情的方式來增加份額。我並不認為這本身就是一個成長市場。

And the defense market is lumpy. So, if you look at Cambium as a whole, this is our growth area.

國防市場起伏不定。所以，如果你把 Cambium 看作一個整體，這就是我們的成長領域。

Got it.

知道了。

Alright, thanks so much Gentlemen.

好的，非常感謝先生們。

Thank you.

謝謝。

I am showing no further questions at this time. So I would like to turn it back to Jacob Sayer for closing remarks.

我目前沒有提出任何進一步的問題。因此，我想請雅各布·塞耶 (Jacob Sayer) 發表結束語。

Thank you very much for joining Cambium's third quarter earnings call and this concludes today's conference call.

非常感謝您參加 Cambium 第三季財報電話會議，今天的電話會議到此結束。

Thank you. Again for your participation in today's conference. This concludes the program. You may now disconnect.

謝謝。再次感謝您參加今天的會議。程式到此結束。您現在可以斷開連線。