In the third quarter, Airspan Networks recorded revenues of $41.1 million, down 12% compared to the previous quarter but up 6% year-over-year
Airspan Networks secured contracts for the provision of 87 new private 4G/5G networks in third quarter 2022, as the firm says it continues to see strong momentum for these kind of projects.
“Global demand across our lead customers remains strong. We had our strongest quarter in terms of bookings in over 2 years and over $35 million in bookings from our three largest customers. We are also seeing good progress in the developing private networks market. In the third quarter, we added 87 private network wins across 4G and 5G, and this is up 40% compared to the previous quarter and brings our total to over 400 private network wins,” Airspan President and COO Glenn Laxdal said during a conference call with investors.
Meanwhile, the company’s Chairman and CEO Eric Stonestrom noted that the need for enterprise infrastructure to improve operations for cost savings and labor shortage purposes is strong and growing despite economic headwinds at a global level.
“Managed services for major carriers are expensive in a time where cost cutting is essential. New spectrum options allow enterprises to build their own networks independent of the carriers. So a local 5G infrastructure is the most straightforward path to modernization. Our 87 third quarter project wins in private networks reflects both the demand trends and our strong position,” Stonestrom added.
In the third quarter, Airspan recorded revenues of $41.1 million, down 12% compared to the previous quarter but up 6% year-over-year. The company also reported a net loss of $23.3 million in the quarter, which compares to a net loss of $21 million in second quarter 2022 and a net loss of $27 million for third quarter 2021.
“Regarding the third quarter results, while disappointed at the supply chain issues that caused a slight shortfall to the lower end of our guidance range, we are encouraged by very strong bookings and shippable backlog. We received the largest number of new orders since pre-pandemic periods, including orders from significant existing customers and an ever-growing list of new customers,” Stonestrom added.
Airspan anticipates fourth quarter 2022 revenue of $49 million to $57 million at a gross margin of 42% to 46%. The company noted that both figures continue to be impacted by component availability, related expenses and challenges from COVID-19 restrictions in Asia.
“On the supply chain side, we’re continuing to deal with component shortages, recommits and price increases, which impacted our gross margins in Q3. To offset some of this impact, we’ve been able to secure price increases with our key customers, which take effect in Q4. We expect to see continued impacts from the supply chain into the middle of 2023 with long lead times across the board,” Laxdal said.
