After Record Quarter, CEO sees 60 GHz, Wi-Fi 6, 5G Backhaul, and RDOF as Positive Trends in 2021



KEY POINTS
  • On February 25th we hosted Atul Bhatnagar, President & CEO of Cambium Networks on our Water Tower Research Fireside Chat Series. The event replay is available to all.
  • Cambium is targeting mid-sized companies with advanced fixed wireless technologies. As a mid-sized company itself, Cambium infrequently sells into the large enterprise market. Similarly, it does not sell into the mobile wireless market.
  • While some large network vendors are experiencing flat revenue, Cambium grew nearly 30% YoY in C4Q20, and guided for over 35% YoY growth in C1Q21. See our F4Q20 quarterly update report for details.
  • At its recent virtual user conference, the company highlighted that the networking market growth will enable growth for many networking companies and the “rising tide will lift all boats.” Bhatnagar did not seem particularly concerned about StarLink and its low-orbit satellite offering, nor about larger networking plays moving into its markets. Atul cited his view that Cambium has best-in-class spectrum efficiency and performance for his confidence.
  • Global internet penetration has grown from 25% in 2010 to 62% in 2020 and is projected to grow to 90% by 2030. However, consensus projections are for 1% growth in industry revenues over the next three years, down from a +5% CAGR over the last decade.
  • You can access our Cambium Networks initiation report and our 60 GHz industry report on our website.

OUR INSIGHTS

Key Opportunity

Cambium’s new 60 GHz products play well into the new market for urban installations, and the company is now shipping in volume. As we discussed on our expert call and in our industry report, 60 GHz technology is coming into the mainstream and will likely be highlighted by Facebook’s Terragraph technology.

The Terragraph effort uses 60 GHz in a mesh architecture to deliver fiber-like speeds at a lower TCO. George Town, in the state of Penang, Malaysia is Cambium’s flagship of the forty proofs of concepts it has currently underway.

Key Challenge

There has been some concern that COVID lockdowns could slow demand. On the quarterly call, the company said it is not seeing this and had record sales. It also believes that as COVID ends, the company could see more upside from higher retail and hospitality.

On February 25th we hosted Atul Bhatnagar, President & CEO of Cambium Networks on our Water Tower Research Fireside Chat Series. The event replay is available to all.

EXECUTIVE DISCUSSION

John Roy: Good morning everyone. I am John Roy from Water Tower Research. I'm a Managing Director here covering comm equipment.

I am very pleased to have Atul Bhatnagar, the CEO of Cambium, here. And we're going to have a discussion here for about the next half hour. Feel free to go ahead and put in your questions. We'll try and get those answered as well. But Atul, maybe you could give us a little bit of background on Cambium and a little bit of your background as well.

Atul Bhatnagar: Hello, John. First of all, good morning, everybody. Greetings to all of you. I hope all of you’re doing well, and your families are doing well. A little bit about my background, and then I'll go into company background briefly. So, I’ve focused on networking and electrical engineering for all my undergrad and graduate studies. And fortunately, I entered networks in the early ‘80s. I worked for a company called Tektronix in Oregon, implementing the ...

ABOUT THE EXECUTIVE
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Atul Bhatnagar

President & Chief Executive Officer

Cambium Networks Corp.

Atul Bhatnagar has served as President and Chief Executive Officer of Cambium Networks since February 2013 and has been on the Board of Directors of Cambium Networks, Ltd., the company through which it conducts business, since September 2014. In connection with the company’s IPO, Mr. Bhatnagar was appointed as a member of the Board of Directors in April 2018. Prior to joining Cambium, Mr. Bhatnagar served as the President and Chief Executive Officer of Ixia, a company that provided test and measurement equipment and applications to maintain wireless and wireline computer networks, from March 2008 until May 2012. Mr. Bhatnagar holds a B.S. degree in Electrical Engineering from the Birla Institute of Technology and Sciences and a M.S. in Electrical Engineering from the University of New Mexico, Albuquerque.

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