Exhibit 99.1
Airspan Networks Holdings Inc. Reports 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 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. |
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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.
Airspan Press Contact:
Media
Contact:
mediarelations@airspan.com
Investor
Relations Contact:
Brett Scheiner
+1 561-893-8660
IR@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.”
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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 | ||||
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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 | ||||||||||||
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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 | ||||
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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) | 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 | ) | ||
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