Exhibit 99.1

 

Airspan Networks Holdings Inc. Reports Third Quarter 2022 Results

 

BOCA RATON, Fla.--(BUSINESS WIRE)-- 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 third quarter ended September 30, 2022.

 

Key Third Quarter Financial Highlights

 

·Revenue of $41.1 million, decreased 12% sequentially from second quarter 2022, and increased 6% year-over-year

 

·Gross margin of 39.8% was essentially flat to 40.1% in second quarter 2022, and down from 44.0% in third quarter 2021

 

·Net loss of $23.3 million, compared to a net loss of $21.0 million in second quarter 2022, and a net loss of $27.0 million for third quarter 2021

 

·Adjusted EBITDA (non-GAAP measure) was a loss of $10.0 million compared to a loss of $12.3 million in second quarter 2022 and a loss of $10.4 million in third quarter 2021

 

·Loss per share was 32 cents, compared to loss per share of 29 cents in second quarter 2022 and a loss per share of 41 cents in third quarter 2021

 

Third Quarter Business Highlights

 

·Strong bookings performance with a book-to-bill ratio greater than 1.5 in the quarter, resulting in shippable backlog of over $100 million at quarter end

 

·Strengthened momentum in private network design wins with 87 new Private 4G/5G Networks in third quarter 2022, up 45% year to date compared to 2021

 

·Expansion of the customer base, including a substantial multi-year project win in a Florida “smart cities” infrastructure enhancement project signed in the third quarter of 2022

 

·Streamlined operations and reduced operating expenses by $4 million compared to the second quarter of 2022

 

Strong Demand and New Product Pipeline

 

“We are encouraged by very robust bookings, while continuing to grapple with supply chain issues,” said Airspan Chairman and Chief Executive Officer Eric Stonestrom. “We are taking steps to address the balance sheet, as well as driving operational efficiencies to bring us closer to operating break-even in the fourth quarter of this year.”

 

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“We are seeing continued strong demand in our core markets of mobile networks, private networks and fixed wireless. We have now launched the 6 Series, Fixed Wireless Access (FWA) product, which delivers multi-gigabit speeds and we have grown total FWA purchase orders by 75% year to date compared to the same time last year,” said Airspan President and Chief Operating Officer Glenn Laxdal.

 

Business Outlook


We anticipate fourth quarter 2022 revenue of $49 million to $57 million at a gross margin of 42% to 46%. 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, Airspan does not intend to make publicly available any update or other revision to these financial projections. Airspan 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 Airspan’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, November 10 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.

 

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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 Airspan operates; changes in laws and regulations affecting Airspan’s business; the risk that Airspan and its current and future collaborators are unable to successfully develop and commercialize Airspan’s products or services, or experience significant delays in doing so; the risk that Airspan does not achieve or sustain profitability; the risk that Airspan will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; Airspan’s ability to remain in compliance with the financial and other covenants under its debt agreements; Airspan’s ability to continue as a going concern; the risk that Airspan experiences difficulties in managing its 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 Airspan’s products and services; and the risk that Airspan is unable to secure its 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 Airspan’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022, and Airspan’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the US 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 Airspan disclaims 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 it believes 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 US generally accepted accounting principles. Non-GAAP financial measures referred to in this report are labeled as “non-GAAP measure.”

 

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AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated BALANCE SHEETS

(in thousands, except for share data)

 

   September 30,
2022
   December 31,
2021
 
ASSETS          
Current assets:          
Cash and cash equivalents  $27,265   $62,937 
Restricted cash   43    185 
Accounts receivable, net of allowance of $462 and $309 as of September 30, 2022 and December 31, 2021, respectively   42,195    57,980 
Inventory   15,621    17,217 
Prepaid expenses and other current assets   17,262    18,833 
Total current assets   102,386    157,152 
Property, plant and equipment, net   7,301    7,741 
Goodwill   13,641    13,641 
Intangible assets, net   5,586    6,438 
Right-of-use assets, net   6,066    6,585 
Other non-current assets   3,387    3,942 
Total assets  $138,367   $195,499 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Accounts payable  $25,814   $29,709 
Deferred revenue   3,553    2,902 
Accrued expenses and other current liabilities   34,465    26,967 
Senior term loan, current portion   40,791    3,187 
Subordinated debt   10,981    10,577 
Subordinated term loan – related party   40,607     
Convertible debt   43,258     
Current portion of long-term debt   242    275 
Total current liabilities   199,711    73,617 
Subordinated term loan - related party       37,991 
Senior term loan       37,876 
Convertible debt       41,343 
Other long-term liabilities   9,651    20,924 
Total liabilities   209,362    211,751 
           
Commitments and contingencies          
           
Stockholders’ deficit:          
Common stock, $0.0001 par value; 250,000,000 shares authorized; 73,393,907 and 72,335,952 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively   7    7 
Additional paid-in capital   768,918    749,592 
Accumulated deficit   (839,920)   (765,851)
Total stockholders’ deficit   (70,995)   (16,252)
Total liabilities and stockholders’ deficit  $138,367   $195,499 

  

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AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated STATEMENTS OF OPERATIONS

 (in thousands, except for share data)

                 
   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2022   2021   2022   2021 
                 
Revenues:                    
Products and software licenses  $36,521   $32,101   $114,128   $105,637 
Maintenance, warranty and services   4,573    6,822    11,475    21,269 
Total revenues   41,094    38,923    125,603    126,906 
                     
Cost of revenues:                    
Products and software licenses   23,462    20,652    74,747    66,272 
Maintenance, warranty and services   1,296    1,163    3,623    3,354 
Total cost of revenues   24,758    21,815    78,370    69,626 
Gross profit   16,336    17,108    47,233    57,280 
                     
Operating expenses:                    
Research and development   15,003    17,529    48,244    47,427 
Sales and marketing   7,219    10,315    25,559    25,157 
General and administrative   9,644    19,347    31,891    28,247 
Amortization of intangibles   284    299    852    897 
Restructuring costs   944    -    944    - 
Total operating expenses   33,094    47,490    107,490    101,728 
                     
Loss from operations   (16,758)   (30,382)   (60,257)   (44,448)
                     
Interest expense, net   (4,296)   (3,630)   (13,071)   (8,580)
Gain on extinguishment of debt               2,096 
Other (expense) income, net   (2,097)   7,516    (793)   636 
                     
Loss before income taxes   (23,151)   (26,496)   (74,121)   (50,296)
                     
Income tax (expense) benefit, net   (163)   (457)   52    (624)
                     
Net loss  $(23,314)  $(26,953)  $(74,069)  $(50,920)
                     
Loss per share - basic and diluted  $(0.32)  $(0.41)  $(1.02)  $(0.82)
Weighted average shares outstanding - basic and diluted   72,572,138    66,276,223    72,415,546    61,923,661 

  

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AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated STATEMENTS OF CASH FLOWS

(in thousands, except for share data) 

         
  

Nine Months Ended

September 30,

 
   2022   2021 
         
Cash flows from operating activities:          
Net loss  $(74,069)  $(50,920)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   3,448    3,117 
Foreign exchange gain on long-term debt   (33)   (8)
Bad debt expense   170    182 
Gain on extinguishment of debt       (2,096)
Change in fair value of warrants and derivatives   (3,016)   (7,045)
Non-cash debt amendment fee   463     
Share-based compensation   19,399    2,150 
Total adjustments   20,431    (3,700)
Changes in operating assets and liabilities:          
Decrease in accounts receivable   15,615    18,001 
Decrease (increase) in inventory   1,596    (1,957)
Decrease (increase) in prepaid expenses and other current assets   1,571    (452)
Decrease in other non-current assets   555    6 
Decrease in accounts payable   (3,895)   (15,799)
Increase (decrease) in deferred revenue   651    (2,476)
Increase in accrued expenses   7,498    5,599 
(Decrease) increase in other long-term liabilities   (7,738)   468 
Increase in accrued interest on long-term debt   8,160    5,917 
Net cash used in operating activities   (29,625)   (45,313)
           
Cash flows from investing activities:          
Purchase of property, plant and equipment   (2,156)   (4,287)
Net cash used in investing activities   (2,156)   (4,287)
           
Cash flows from financing activities:          
Proceeds from the Business Combination, issuance of convertible debt and PIPE   financing, net of issuance costs paid       115,501 
Repayments of senior term loan   (3,960)    
Proceeds from the exercise of stock options       78 
Payment for taxes withheld on stock awards   (73)    
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   (4,033)   116,226 
           
Net (decrease) increase in cash, cash equivalents and restricted cash   (35,814)   66,626 
           
Cash, cash equivalents and restricted cash, beginning of year   63,122    18,618 
           
Cash, cash equivalents and restricted cash, end of period  $27,308   $85,244 

 

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

 

   Three Months Ended 
($ in thousands)  September 30,
2022
   June 30,
2022
 
Net loss  $(23,314)  $(21,017)
           
Adjusted for:          
Interest expense, net   4,296    4,207 
Income tax expense (benefit), net   163    (112)
Depreciation and amortization   1,173    1,154 
EBITDA   (17,682)   (15,768)
Share-based compensation expense   5,863    6,972 
    Change in fair value of warrant liability and derivatives   920    (3,479)
    Restructuring costs   944    - 
Adjusted EBITDA  $(9,955)  $(12,275)

  

   Three Months Ended
September 30,
 
($ in thousands)  2022   2021 
Net loss  $(23,314)  $(26,953)
           
Adjusted for:          
Interest expense, net   4,296    3,630 
Income tax expense, net   163    457 
Depreciation and amortization   1,173    988 
EBITDA   (17,682)   (21,878)
Share-based compensation expense   5,863    661 
   Change in fair value of warrant liability and derivatives   920    (11,562)
   Restructuring costs   944    - 
   Transaction costs allocated to the warrants   -    3,824 
   Management Incentive Plan expense related to Business Combination   -    18,513 
Adjusted EBITDA  $(9,955)  $(10,442)

  

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

 

Media Contact:
mediarelations@airspan.com

 

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