I had a post last year about stock concerns and how it would affect the overall company. Now that delisting is happening tomorrow, what impacts can we expect on our side? Will ePMP product updates and improvements continue?
Getting delisted will not directly affect product development, but everything that delisting represents absolutely will. Cambium is deeply in debt, may still be burning cash overall, and there are no obvious exits. In my view, they got here by overstating product capabilities and joining RF Elements’ race to the bottom. Instead of accepting fair criticism like this, they try to silence it, which is why this post will probably never be allowed or will quickly disappear.
In September 2024, when Cambium last reported its financial position, it had about $67.8 million in debt principal outstanding, $46.5 million in cash, which is $21.3 million net debt on a cash-adjusted basis. As of September 30, 2024, Cambium was not burning cash in Q3 because it brought in $8.9 million from operations and added $5.2 million in free cash flow. But for 2024 year to date, it had still used $4.3 million in operating cash and $10.8 million in investing cash.
They are getting delisted because they have not made the required financial disclosures, so nobody really knows what the current situation is. At the same time, they announced a “Starlink integration” that was basically a dropdown menu on the WAN interface of their network appliance that set QoS for Starlink. Retail investors mistook that for a “SpaceX partnership” and turned CMBM into a meme stock. They should have been delisted before this to prevent this situation.
Right now, Cambium has the only cost-effective, field-proven Wi-Fi-based 5 and 6 GHz PtMP platform. The ePMP 4000 technology should be a solid foundation to build on. But Cambium is grossly managed, and the product and sales teams are unwilling or unable to market it properly and do what it takes to get it into customers’ hands and deliver real value.
Cambium and its fans would have you believe the company is just unlucky. I do not see it that way. I see it as the predictable result of more than a decade of following RF Elements in a race to the bottom. Cambium repeatedly chose hype over substance, and now it is dealing with the consequences of those decisions.
Not good news.We are still heavily invested into Cambium gear.
Given our position the only alternative from a cost and management perspective is Chinese gear that comes with massive unknowns and mediocre English/Western support.
Will Cambium go the private equity route or look for a buyout ?
You should expect zero impact as delisting with Nasdaq has no impact to company’s abilities to develop products and release them. Our commitment to products, customers and most importantly our ability to serve you remains unchanged.
Thanks for the feedback Sakid, It’s much appreciated.
Umm Sakid, can you shine some light on the recent SEC filing? https://investors.cambiumnetworks.com/node/10421/html
“As a result of the ongoing restatement process, The Company has not completed its financial statements for the year ended December 31, 2024 and December 31, 2025. Accordingly, the Company cannot at this time provide an estimate of changes in its results of operations for the year ended December 31, 2025, compared to its results of operations for the year ended December 31, 2024. Notwithstanding the foregoing, the Company anticipates that is Annual Report on Form 10-K for the fiscal years ended December 31, 2024 and 2025 will include disclosures around substantial doubt regarding the Company’s ability to continue as a going concern.”
Am I crazy, or does that read in “plain english” as “Based on current conditions, auditors/management expect to disclose that there is serious doubt about their ability to stay in business.”
Looking forward to hearing more. I’m getting pressure to sink some serious funding into 6Ghz gear and Cambium seems like a good place to be hardware wise.
No, not really. This announcement is simply stating that we are delayed in reporting our 2025 annual report and are exercising the automatic grace period. There are no material changes from previous positions. The company is focused on catching up on previous years filings per previous announcements and proceeding accordingly. In terms of products, roadmaps absolutely nothing changes and we are just as committed as previous years. We have put a lot of R&D effort behind 4600 and continue to improve with future products around MLO already moving forward.