Wireless gear provider Cambium Networks is expanding the cost-cutting effort it started in November, but company executives reiterated promises that sales would pick up during the second half of 2020.
"I think momentum will start building," Cambium CEO Atul Bhatnagar said on the company's recent quarterly conference call with analysts, according to a Seeking Alpha transcript.
In November, Cambium disclosed a restructuring that affected roughly 6% of its workforce, but the company promised the move would result in up to $6 million in savings during 2020. The company this month expanded that restructuring to generate total cost savings of $13 million this year.
The company did not disclose an updated number of workers who would be affected by the move.
"Cambium Networks continues to focus on revenue growth, but while this new product platform transition is occurring during the first half of 2020, new restructuring activities will allow us to remain financially strong and resilient," CFO Stephen Cumming said on the call.
The cuts follow the completion of Cambium's initial public offering in June 2019, raising roughly $66 million. The company said it used the proceeds in part to pay down debt. Cambium's shares have fallen steadily since its IPO, from around $10 per share last year to around $6 today.
Formed in 2011 from Motorola Solutions assets, Cambium sells hardware for WiFi and cellular networks, including for backhaul and fixed wireless applications. The company has argued that a number of trends in the telecom industry ought to raise its revenues in 2020, including the release of 3.5GHz CBRS spectrum that can be used by fixed wireless providers as well as the allocation of government money for telecom networks in rural areas. For example, a top executive at AMG Technology Investment Group's NextLink has said the provider expects to use Cambium's equipment to offer fixed wireless services across rural parts of Illinois, Iowa, Kansas, Nebraska, Oklahoma and Texas.