MIMO Airspan Networks Holdings Inc

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 full year and fourth quarter ended December 31, 2022.

Key Fourth Quarter Financial Highlights

• Revenue of $41.7 million, increased 1% sequentially from third quarter 2022, and decreased 17% year-over-year
• Gross margin of 46.1% was up from 39.8% in the third quarter 2022 and up from 41.1% in fourth quarter 2021
• Total operating expenses of $27.0 million compared to $33.1 million in third quarter 2022, and $37.5 million for fourth quarter 2021
• Net loss of $11.3 million, compared to a net loss of $23.3 million in third quarter 2022, and a net loss of $19.6 million for fourth quarter 2021
• Adjusted EBITDA (non-GAAP measure) was a loss of $5.0 million compared to a loss of $10.0 million in third quarter 2022 and a loss of $8.0 million in fourth quarter 2021
• Loss per share was 15 cents, compared to loss per share of 32 cents in third quarter 2022 and a loss per share of 27 cents in fourth quarter 2021

Key 2022 Financial Highlights

• Revenue of $167.3 million decreased 6% year-over-year
• Gross margin of 39.7% was down from 44.0% in 2021
• Total operating expenses of $134.4 million compared to $139.3 million in 2021
• Net loss of $85.4 million, compared to a net loss of $70.5 million for 2021
• Adjusted EBITDA (non-GAAP measure) was a loss of $45.2 million compared to a loss of $29.1 million in 2021
• Loss per share was $1.17 compared to a loss per share of $1.09 in 2021

Improved Operating Margins and Expense Control Drive Continued Adjusted EBITDA Improvement

• Adjusted EBITDA improved from a loss of $18.0 million in Q122 to a loss of $5.0 million in Q422 as a result of higher gross margins due to product mix and lower operating expenses recorded as a result of the reductions in headcount.

Summary Results of Operations Adjusted for Share-based Compensation, Depreciation, Amortization and Restructuring costs ($ in thousands) Q122 Q222 Q322 Q422

2022

Revenue $

37,564

$

46,945

$

41,094

$

41,656

$

167,259

Gross Profit

12,069

18,828

16,336

19,207

66,440

Gross Margin

32.1%

40.1%

39.8%

46.1%

39.7%

Adjusted Operating expenses (Non-GAAP)

(1)

29,608

28,977

25,114

23,719

107,418

Adjusted Loss from Operations (Non-GAAP)

(2)

(17,539)

(10,149)

(8,778)

(4,512)

(40,978)

Other expense, net

(506)

(2,126)

(1,177)

(452)

(4,261)

Adjusted EBITDA (Non-GAAP)

(3)

$

(18,045)

$

(12,275)

$

(9,955)

$

(4,964)

$

(45,239)

 

(1)

The following table presents the reconciliation of Total Operating Expenses the most directly comparable GAAP measure, to Adjusted Operating expenses (Non-GAAP) ($ in thousands) Q122 Q222 Q322 Q422

2022

Total Operating Expenses $

37,293

$

37,103

$

33,094

$

26,959

$

134,449

Adjusted for: Share-based compensation expense

(6,564)

(6,972)

(5,863)

(1,732)

(21,131)

Depreciation and amortization

(1,121)

(1,154)

(1,173)

(1,174)

(4,622)

Restructuring

-

-

(944)

(334)

(1,278)

Adjusted Operating expenses (Non-GAAP) $

29,608

$

28,977

$

25,114

$

23,719

$

107,418

 

(2)

The following table presents the reconciliation of Loss from Operations the most directly comparable GAAP measure, to Adjusted Loss from Operations (Non-GAAP) ($ in thousands) Q122 Q222 Q322 Q422

2022

Loss from Operations $

(25,224)

$

(18,275)

$

(16,758)

$

(7,752)

$

(68,009)

Adjusted for: Share-based compensation expense

6,564

6,972

5,863

1,732

21,131

Depreciation and amortization

1,121

1,154

1,173

1,174

4,622

Restructuring

-

-

944

334

1,278

Adjusted Loss from Operations (Non-GAAP) $

(17,539)

$

(10,149)

$

(8,778)

$

(4,512)

$

(40,978)

 

(3)

The following table presents the reconciliation of Net loss the most directly comparable GAAP measure, to Adjusted EBITDA (Non-GAAP) ($ in thousands) Q122 Q222 Q322 Q422

2022

Net loss $

(29,738)

$

(21,017)

$

(23,314)

$

(11,313)

$

(85,382)

Adjusted for: Interest expense

4,568

4,207

4,296

7,323

20,394

Income tax benefit

(103)

(112)

163

(145)

(197)

Depreciation and amortization

1,121

1,154

1,173

1,174

4,622

EBITDA $

(24,152)

$

(15,768)

$

(17,682)

$

(2,961)

$

(60,563)

Share-based compensation expense

6,564

6,972

5,863

1,731

21,130

Change in fair value of warrant liability and derivatives

(457)

(3,479)

920

(4,069)

(7,085)

Restructuring costs

-

-

944

335

1,279

Adjusted EBITDA (Non-GAAP) $

(18,045)

$

(12,275)

$

(9,955)

$

(4,964)

$

(45,239)

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.

Source: Airspan Networks Holdings Inc.

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 US generally accepted accounting principles. 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)

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,253

 

 

$

62,937

 

Restricted cash

 

 

34

 

 

 

185

 

Accounts receivable, net of allowance of $647 and $309 at December 31, 2022 and 2021, respectively

 

 

46,565

 

 

 

57,980

 

Inventory

 

 

18,556

 

 

 

17,217

 

Prepaid expenses and other current assets

 

 

17,289

 

 

 

18,833

 

Total current assets

 

 

89,697

 

 

 

157,152

 

Property, plant and equipment, net

 

 

7,351

 

 

 

7,741

 

Goodwill

 

 

13,641

 

 

 

13,641

 

Intangible assets, net

 

 

5,302

 

 

 

6,438

 

Right-of-use assets, net

 

 

5,697

 

 

 

6,585

 

Other non-current assets

 

 

3,407

 

 

 

3,942

 

Total assets

 

$

125,095

 

 

$

195,499

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

26,173

 

 

$

29,709

 

Accrued expenses and other current liabilities

 

 

32,243

 

 

 

26,967

 

Deferred revenue

 

 

2,892

 

 

 

2,902

 

Senior term loan, current portion

 

 

40,529

 

 

 

3,187

 

Subordinated debt

 

 

11,119

 

 

 

10,577

 

Subordinated term loan - related party

 

 

41,528

 

 

 

-

 

Convertible debt

 

 

43,928

 

 

 

-

 

Current portion of long-term debt

 

 

259

 

 

 

275

 

Total current liabilities

 

 

198,671

 

 

 

73,617

 

Subordinated term loan - related party

 

 

-

 

 

 

37,991

 

Senior term loan

 

 

-

 

 

 

37,876

 

Convertible debt

 

 

-

 

 

 

41,343

 

Other long-term liabilities

 

 

7,223

 

 

 

20,924

 

Total liabilities

 

 

205,894

 

 

 

211,751

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 250,000,000 shares authorized; 74,283,026 and 72,335,952 shares issued and outstanding at December 31, 2022 and 2021, respectively

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

770,427

 

 

 

749,592

 

Accumulated deficit

 

 

(851,233

)

 

 

(765,851

)

Total stockholders’ deficit

 

 

(80,799

)

 

 

(16,252

)

Total liabilities and stockholders’ deficit

 

$

125,095

 

 

$

195,499

 

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products and software licenses

 

$

34,934

 

 

$

44,685

 

 

$

148,922

 

 

$

151,172

 

Maintenance, warranty and services

 

 

6,722

 

 

 

5,692

 

 

 

18,337

 

 

 

26,111

 

Total revenues

 

 

41,656

 

 

 

50,377

 

 

 

167,259

 

 

 

177,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Products and software licenses

 

 

20,588

 

 

 

28,837

 

 

 

95,335

 

 

 

95,442

 

Maintenance, warranty and services

 

 

1,861

 

 

 

849

 

 

 

5,484

 

 

 

3,870

 

Total cost of revenues

 

 

22,449

 

 

 

29,686

 

 

 

100,819

 

 

 

99,312

 

Gross profit

 

 

19,207

 

 

 

20,691

 

 

 

66,440

 

 

 

77,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

13,133

 

 

 

15,923

 

 

 

61,377

 

 

 

63,350

 

Sales and marketing

 

 

5,028

 

 

 

8,682

 

 

 

30,587

 

 

 

33,839

 

General and administrative

 

 

8,179

 

 

 

12,631

 

 

 

40,070

 

 

 

40,878

 

Amortization of intangibles

 

 

284

 

 

 

294

 

 

 

1,136

 

 

 

1,191

 

Restructuring costs

 

 

335

 

 

 

-

 

 

 

1,279

 

 

 

-

 

Total operating expenses

 

 

26,959

 

 

 

37,530

 

 

 

134,449

 

 

 

139,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(7,752

)

 

 

(16,839

)

 

 

(68,009

)

 

 

(61,287

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(7,323

)

 

 

(4,233

)

 

 

(20,394

)

 

 

(12,813

)

Change in fair value of warrant liability and derivatives, net

 

 

4,069

 

 

 

895

 

 

 

7,085

 

 

 

4,116

 

Gain on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,096

 

Other (expense) income, net

 

 

(452

)

 

 

(743

)

 

 

(4,261

)

 

 

(3,328

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(11,458

)

 

 

(20,920

)

 

 

(85,579

)

 

 

(71,216

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit, net

 

 

145

 

 

 

1,314

 

 

197

 

 

 

690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(11,313

)

 

$

(19,606

)

 

$

(85,382

)

 

$

(70,526

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share - basic and diluted

 

$

(0.15

)

 

$

(0.27

)

 

$

(1.17

)

 

$

(1.09

)

Weighted average shares outstanding - basic and diluted

 

 

74,108,665

 

 

 

72,183,563

 

 

 

72,782,773

 

 

 

64,509,718

 

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except for share data)

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(85,382

)

 

$

(70,526

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,622

 

 

 

4,294

 

Foreign exchange gain on long-term debt

 

 

(16

)

 

 

(14

)

Gain on extinguishment of debt

 

 

-

 

 

 

(2,096

)

Change in fair value of warrants and derivatives

 

 

(7,085

)

 

 

(7,940

)

Non-cash debt waiver and amendment fees

 

 

3,321

 

 

 

-

 

Share-based compensation expense

 

 

21,130

 

 

 

10,577

 

Loss on disposal of property, plant and equipment

 

 

-

 

 

 

22

 

Bad debt expense

 

 

638

 

 

 

289

 

Total adjustments

 

 

22,610

 

 

 

5,132

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Decrease (increase) in accounts receivable

 

 

10,777

 

 

 

12,352

 

(Increase) decrease in inventory

 

 

(1,339

)

 

 

(5,198

)

Decrease in prepaid expenses and other current assets

 

 

1,544

 

 

 

(6,547

)

Increase in other operating assets

 

 

535

 

 

 

(105

)

(Decrease) increase in accounts payable

 

 

(3,536

)

 

 

(10,790

)

Increase in deferred revenue

 

 

(10

)

 

 

(4,619

)

Increase in accrued expenses and other current liabilities

 

 

2,418

 

 

 

4,429

 

Increase in other long-term liabilities

 

 

(5,728

)

 

 

616

 

Increase in accrued interest on long-term debt

 

 

10,947

 

 

 

8,571

 

Net cash used in operating activities

 

 

(47,164

)

 

 

(66,685

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(3,096

)

 

 

(6,033

)

Net cash used in investing activities

 

 

(3,096

)

 

 

(6,033

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repayments under senior term loan

 

 

(5,280

)

 

 

-

 

Payment for taxes withheld on stock awards

 

 

(295

)

 

 

-

 

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 H stock, net

 

 

-

 

 

 

505

 

Proceeds from the issuance of Series H warrants

 

 

-

 

 

 

142

 

Net cash (used in) provided by financing activities

 

 

(5,575

)

 

 

117,222

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(55,835

)

 

 

44,504

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash, beginning of year

 

 

63,122

 

 

 

18,618

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash, end of year

 

$

7,287

 

 

$

63,122

 

The following tables present the reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted EBITDA:

 

 

Three Months Ended

 

($ in thousands)

 

December 31, 2022

 

 

September 30, 2022

 

Net loss

 

$

(11,313

)

 

$

(23,314

)

 

 

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

 

 

Interest expense, net

 

 

7,323

 

 

 

4,296

 

Income tax (benefit) expense, net

 

 

(145

)

 

 

163

 

Depreciation and amortization

 

 

1,174

 

 

 

1,173

 

EBITDA

 

 

(2,961

)

 

 

(17,682

)

Share-based compensation expense

 

 

1,731

 

 

 

5,863

 

Change in fair value of warrant liability and derivatives

 

 

(4,069

)

 

 

920

)

Restructuring costs

 

 

335

 

 

 

944

 

Adjusted EBITDA

 

$

(4,964

)

 

$

(9,955

)

 

 

Three Months Ended December 31,

 

($ in thousands)

 

2022

 

 

2021

 

Net loss

 

$

(11,313

)

 

$

(19,606

)

 

 

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

 

 

Interest expense, net

 

 

7,323

 

 

 

4,233

 

Income tax (benefit) expense, net

 

 

(145

 

 

(1,314

)

Depreciation and amortization

 

 

1,174

 

 

 

1,177

 

EBITDA

 

 

(2,961

)

 

 

(15,510

)

Share-based compensation expense

 

 

1,731

 

 

 

8,427

 

Change in fair value of warrant liability and derivatives

 

 

(4,069

)

 

 

(895

)

Restructuring costs

 

 

335

 

 

 

-

 

Adjusted EBITDA

 

$

(4,964

)

 

$

(7,978

)

 

 

Twelve Months Ended December 31,

 

($ in thousands)

 

2022

 

 

2021

 

Net loss

 

$

(85,382

)

 

$

(70,526

)

 

 

 

 

 

 

 

 

 

Adjusted for:

 

 

 

 

 

 

 

 

Interest expense, net

 

 

20,394

 

 

 

12,813

 

Income tax (benefit) expense, net

 

 

(197

)

 

 

(690

)

Depreciation and amortization

 

 

4,622

 

 

 

4,294

 

EBITDA

 

 

(60,563

)

 

 

(54,109

)

Share-based compensation expense

 

 

21,130

 

 

 

10,577

 

Change in fair value of warrant liability and derivatives

 

 

(7,085

)

 

 

(7,940

)

Restructuring costs

 

 

1,279

 

 

 

-

 

Transaction costs allocated to the warrants

 

 

-

 

 

 

3,824

 

Management Incentive Plan expense related to Business Combination

 

 

-

 

 

 

18,513

 

Adjusted EBITDA

 

$

(45,239

)

 

$

(29,135

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230316005718/en/

Media Contact: mediarelations@airspan.com

Investor Relations Contact: Brett Scheiner +1 561-893-8660 IR@airspan.com