- First quarter revenue of $45.9 million, representing 67% growth
over the first quarter 2020 driven by contributions from 5G, Open
RAN, and fixed wireless access (“FWA”) solutions
- Strong traction in new customer acquisition and expansion of
existing customer relationships
- New executive hires as Airspan continues to attract talent in
recognition of the significant 5G opportunities with customers all
around the world
- Business combination with New Beginnings Acquisition Corp.
(NYSE American: NBA) is expected to close in the third quarter of
2021
Airspan Networks Inc. (“Airspan”), which provides a
groundbreaking next-generation 5G platform, today announced
financial and operational results for the quarter ended March 31,
2021.
Q1 Financial and Operational Highlights:
- Revenue of $45.9 million, up 67% from $27.6 million in Q1
2020
- Gross profit of $20.9 million, up 42% from $14.7 million in Q1
2020
- First quarter net loss of $13.5M, increasing $0.5M from $13.0M
in Q1 2020
- Adjusted EBITDA (non-GAAP measure) $5.4M loss in the first
quarter improved by 42% from $9.2M loss in Q1 2020
- Significant momentum across 5G, Open RAN and fixed wireless
access (“FWA”) in both new and existing customer deployments,
including private enterprise
- Master purchase agreement negotiated and signed in April 2021
with a large domestic operator
- Recognized for the fourth consecutive year for excellence and
innovation by the Small Cell Forum in a joint award with
Qualcomm
- Announcing the hires of Amit Ancikovsky as President of
Broadband and Mimosa by Airspan, as well as Chris Riley as
Airspan’s General Counsel
Airspan President and CEO Eric Stonestrom said, “Our strong
first quarter results reflect the adoption of Airspan’s innovative
5G software, product, and Open RAN technology by customers across
the globe. The validation we are receiving from our customers and
partners supports our belief that Airspan is a differentiated,
disruptive force in the industry. Looking ahead, we expect to
continue to accelerate our 5G and FWA product portfolio to meet the
expanding addressable market and to capitalize on the concerted
government action supporting 5G and wireless broadband access. We
are excited about the US Senate’s approval, with bi-partisan
backing, of a $250 billion bill boosting government spending on
technology research and development, and look forward to passage in
the House and enactment into law as soon as possible. In
recognition of all of these opportunities, we are excited to have
Amit and Chris join the Airspan executive team as we continue to
execute our growth strategy.”
“Our first quarter results show the continued strength of our
overall business, with 67% year-over-year revenue growth, resulting
in a 42% improvement in Adjusted EBITDA in the quarter,” said David
Brant, Senior Vice President and Chief Financial Officer of
Airspan. “We believe our results in the first quarter position us
well for the remainder of 2021. Looking further out, we believe we
are well-positioned to continue our strong growth trajectory, with
tens of billions of dollars of expected 5G capital expenditures in
the telecom industry, our strong software-enabled product
portfolio, and the continued growth of private enterprise
solutions.”
About Airspan
Airspan is a US-based provider of ground-breaking, disruptive
software and hardware for 5G networks and a pioneer in end-to-end
Open RAN solutions interoperable with other vendors. As a result of
innovative technology and significant R&D investments to build
and expand 5G solutions portfolio, Airspan believes it is well
positioned with Open RAN, private networks, fixed wireless access
(FWA) and CBRS solutions, providing solutions to tier 1 mobile
network operators to deploy their networks of the future, today.
With over 1 million cells shipped to 1,000 customers in more than
100 countries, Airspan has global scale. For more information,
visit www.airspan.com.
In March 2021, Airspan entered into a business combination
agreement with New Beginnings Acquisition Corp. (“NBA”) (NYSE
American: NBA), pursuant to which Airspan will become a
wholly-owned subsidiary of NBA. The closing of the business
combination (the “Business Combination”) with NBA is subject to
customary closing conditions, including stockholder approvals. Upon
closing, NBA will be renamed “Airspan Networks Holdings Inc.” and
its common stock is expected to be listed on the NYSE American with
the ticker symbol “MIMO”. See www.nbaspac.com for more
information.
About New Beginnings Acquisition Corp.
New Beginnings Acquisition Corp. (NYSE American: NBA), is a
blank check company formed for the purpose of effecting a merger,
share exchange, asset acquisition, share purchase, reorganization
or similar business combination with one or more businesses. NBA’s
business strategy is to identify and complete its initial business
combination with a company that can benefit from (i) the managerial
and operational experience of its management team, (ii) additional
capital and (iii) access to public securities markets.
Additional Information and Where to Find It
This news release does not contain all the information that
should be considered concerning the proposed Business Combination
and related transactions (the “Proposed Transaction”) and is not
intended to form the basis of any investment decision or any other
decision in respect of the Proposed Transaction. In connection with
the Business Combination, NBA has filed a registration statement on
Form S-4 (the “Form S-4”) with the SEC, which includes a
preliminary proxy statement / prospectus /consent solicitation
statement with respect to certain matters upon which NBA and
Airspan stockholders will be asked to vote. NBA’s and Airspan’s
stockholders and other interested persons are advised to read, the
preliminary proxy statement / prospectus / consent solicitation
statement and, when available, the amendments thereto and the proxy
statement / prospectus / consent solicitation statement and other
documents filed in connection with the Proposed Transaction, as
these materials will contain important information about Airspan,
NBA and the Proposed Transaction. When available, the definitive
proxy statement / prospectus / consent solicitation statement and
other relevant materials for the Proposed Transaction will be
mailed to stockholders of NBA and Airspan as of a record date to be
established for voting on the Proposed Transaction. Stockholders
will also be able to obtain copies of the preliminary proxy
statement / prospectus / consent solicitation statement, the
definitive proxy statement / prospectus / consent solicitation
statement and other documents filed with the SEC, without charge,
once available, at the SEC’s website at www.sec.gov, or by
directing a request to: New Beginnings Acquisition Corp., 800 1st
Street, Unit 1, Miami Beach, FL 33139, USA.
No Offer or Solicitation
This news release is for informational purposes only and is not
intended to and shall not constitute a proxy statement or the
solicitation of a proxy, consent or authorization with respect to
any securities or in respect of the Proposed Transaction and is not
intended to and shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy or subscribe for any securities or a solicitation of any vote
of approval, nor shall there be any sale, issuance or transfer of
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction.
Participants in Solicitation
NBA, Airspan and their respective directors and executive
officers may be deemed participants in the solicitation of proxies
from NBA’s stockholders with respect to the Proposed Transaction. A
list of the names of those directors and executive officers and a
description of their interests in NBA is contained in the
preliminary proxy statement / prospectus / consent solicitation
statement contained in the Form S-4. Additional information
regarding the interests of such participants, which may, in some
cases, be different than those of NBA and Airspan’s equity holders
generally, is also set forth in the preliminary proxy statement /
prospectus / consent solicitation statement contained in the Form
S-4, and will also be included in the definitive proxy statement /
prospectus / consent solicitation statement for the Business
Combination when available.
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, NBA’s plans,
objectives, expectations and intentions with respect to future
operations, products and services; 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. These
forward-looking statements include, but are not limited to,
statements regarding Airspan’s industry and markets for its
products, including potential government action with respect to 5G
and wireless infrastructure, expected amounts of capital
expenditure on 5G products, customer acceptance of Airspan’s
products and the likelihood and ability of the parties to
successfully consummate the Proposed Transaction and the timing
thereof. Such forward-looking statements are based upon the current
beliefs and expectations of NBA’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 NBA’s control. Actual results and the
timing of events may differ materially from the results anticipated
in these forward-looking statements.
In addition to factors previously disclosed in NBA’s reports
filed with the SEC and those identified elsewhere in this
communication, the following factors, among others, could cause
actual results and the timing of events to differ materially from
the anticipated results or other expectations expressed in the
forward-looking statements: (i) the risk that the proposed
transaction may not be completed in a timely manner or at all,
which may adversely affect the price of NBA’s securities; (ii) the
risk that the transaction may not be completed by NBA’s business
combination deadline and the potential failure to obtain an
extension of the Business Combination deadline if sought by NBA;
(iii) the failure to satisfy the conditions to the consummation of
the Proposed Transaction, including the adoption of the business
combination agreement by the stockholders of NBA and Airspan, the
satisfaction of the minimum trust account amount following
redemptions by NBA’s public stockholders and the receipt of certain
governmental and regulatory approvals; (iv) the lack of a third
party valuation in determining whether or not to pursue the
Proposed Transaction; (v) the occurrence of any event, change or
other circumstance that could give rise to the termination of the
business combination agreement; (vi) the impact of COVID-19 on
Airspan’s business and/or the ability of the parties to complete
the Proposed Transaction; (vii) the effect of the announcement or
pendency of the transaction on Airspan’s business relationships,
performance and business generally; (viii) risks that the proposed
transaction disrupts current plans and operations of Airspan; (ix)
the outcome of any legal proceedings that may be instituted against
Airspan or NBA related to the business combination agreement or the
Proposed Transaction; (x) the ability to maintain the listing of
NBA’s securities on the NYSE American; (xi) the price of NBA’s and
the post-combination company’s securities may be volatile due to a
variety of factors, including changes in the competitive and
regulated industries in which Airspan operates, variations in
performance across competitors, changes in laws and regulations
affecting Airspan’s business and changes in the combined capital
structure; (xii) the ability to implement business plans,
forecasts, and other expectations after the completion of the
Proposed Transaction, and identify and realize additional
opportunities; (xiii) the risk of downturns and the possibility of
rapid change in the highly competitive industry in which Airspan
operates; (xiv) 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; (xv) the risk that the post-combination company may not
achieve or sustain profitability; (xvi) the risk that the
post-combination company will need to raise additional capital to
execute its business plan, which may not be available on acceptable
terms or at all; (xvii) the risk that the post-combination company
experiences difficulties in managing its growth and expanding
operations; (xviii) the risk that third-party suppliers and
manufacturers are not able to fully and timely meet their
obligations; (xix) the risk that the rollout and utilization of 5G
technology will not provide the expected benefits; (xx) the risk
that Airspan is unable to secure or protect its intellectual
property; and (xxi) the risk that the post-combination company’s
securities will not be approved for listing on the NYSE American or
if approved, maintain the listing.
Actual results, performance or achievements may differ
materially, and potentially adversely, from any projections and
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 NBA’s control. All information set forth herein speaks
only as of the date hereof in the case of information about NBA and
Airspan or the date of such information in the case of information
from persons other than NBA or Airspan, and we disclaim 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 we believe to be reliable,
however there can be no assurance these forecasts and estimates
will prove accurate in whole or in part.
AIRSPAN NETWORKS INC. UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands, except for per share data)
March 31,2021 December 31,2020 ASSETS Current
assets: Cash and cash equivalents
$ 30,603
$ 18,196
Restricted cash
186
422
Accounts receivable, net of allowance of $120 and $374 at March 31,
2021 and December 31, 2020, respectively
32,398
71,621
Inventory
12,068
12,019
Prepaid expenses and other current assets
9,226
7,602
Total current assets
84,481
109,860
Property, plant and equipment, net
5,469
4,833
Goodwill
13,641
13,641
Intangible assets, net
7,330
7,629
Right-of-use assets, net
8,444
7,882
Other non-current assets
3,718
3,837
Total assets
$ 123,083
$ 147,682
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT
Current liabilities: Accounts payable
$ 16,786
$ 36,849
Deferred revenue
6,807
7,521
Other accrued expenses
24,926
22,538
Subordinated debt
10,189
10,065
Current portion of long-term debt
2,156
298
Total current liabilities
60,864
77,271
Long-term debt
221
2,087
Subordinated term loan, long-term - related party
35,528
34,756
Senior term loan, long-term
37,938
36,834
Other long-term liabilities
21,186
17,147
Total liabilities
155,737
168,095
Commitments and contingencies Mezzanine equity:
Convertible preferred stock, $0.0001 par value; 9,293,156 shares
authorized at March 31, 2021 and December 31, 2020; 4,594,410 and
4,581,404 shares issued and outstanding at March 31, 2021 and
December 31, 2020
364,128
363,481
Stockholders' deficit: Common stock, $0.0003 par value;
10,000,000 shares authorized; 202,705 shares issued at March 31,
2021 and December 31, 2020, and 202,582 shares outstanding at March
31, 2021 and December 31, 2020
-
-
Class B Common stock, $0.0003 par value; 482,838 shares authorized;
466,952 shares issued and outstanding at March 31, 2021 and
December 31, 2020
-
-
Class C Common stock, $0.0003 par value; 2,630,840 shares
authorized; no shares issued and outstanding at March 31, 2021 and
December 31, 2020
-
-
Additional paid-in capital
312,092
311,431
Accumulated deficit
(708,874)
(695,325)
Total stockholders' deficit
(396,782)
(383,894)
Total liabilities, mezzanine equity and stockholders' deficit
$ 123,083
$ 147,682
AIRSPAN NETWORKS INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except
for share and per share data) Three Months Ended
March 31,
2021
2020
Revenues: Products and software licenses
$ 38,999
$ 18,728
Maintenance, warranty and services
6,936
8,850
Total Revenue
45,935
27,578
Cost of revenue: Products and software licenses
23,888
11,989
Maintenance, warranty and services
1,103
857
Total cost of revenue
24,991
12,846
Gross profit
20,944
14,732
46%
53%
Operating expenses: Research and development
14,374
13,216
Sales and marketing
7,360
7,923
General and administrative
4,455
4,032
Amortization of intangibles
299
389
Loss on sale of assets
-
22
Total operating expenses
26,488
25,582
Loss from operations
(5,544)
(10,850)
Interest expense, net
(2,438)
(1,590)
Other expense, net
(5,492)
(470)
Loss before income taxes
(13,474)
(12,910)
Income tax expense
(75)
(105)
Net loss
$ (13,549)
$ (13,015)
Loss per share - basic and diluted
$ (20.23)
$ (19.44)
Weighted average shares outstanding - basic and diluted
669,632
669,534
AIRSPAN NETWORKS INC. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands) Three
Months Ended March 31,
2021
2020
Cash flows from operating activities: Net loss
$ (13,549)
$ (13,015)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
1,053
1,142
Foreign exchange gain on long-term debt
(8)
(6)
Share-based compensation
661
492
Total adjustments
1,706
1,628
Changes in operating assets and liabilities: Decrease in accounts
receivable
39,223
10,223
(Increase) decrease in inventory
(49)
1,840
(Increase) decrease in prepaid expenses and other current assets
(1,624)
1,302
Decrease in accounts payable
(20,063)
(6,303)
(Decrease) increase in deferred revenue
(714)
257
(Decrease) increase in other accrued expenses
2,388
(1,366)
Decrease in other operating assets
119
99
(Decrease) increase in other long-term liabilities
3,477
687
Accrued interest on long-term debt
2,000
885
Net cash provided by (used in) operating activities
12,914
(3,763)
Cash flows from investing activities: Purchase of property,
plant and equipment
(1,390)
(282)
Net cash used in investing activities
(1,390)
(282)
Cash flows from financing activities: Borrowings under line
of credit, net
-
5,477
Proceeds from the sale of Series G stock, net
-
4,937
Proceeds from the sale of Series H stock, net
505
-
Proceeds from the issuance of Series H warrants
142
-
Net cash provided by financing activities
647
10,414
Net increase in cash, cash equivalents and restricted cash
12,171
6,369
Cash, cash equivalents and restricted cash, beginning of
year
18,618
3,013
Cash, cash equivalents and restricted cash, end of year
$ 30,789
$ 9,382
Three Months Ended March 31,
2021
2020
Supplemental disclosures of cash flow information
Interest paid
$ 2,426
$ 1,557
Cash paid for income taxes
$ 955
$ 531
Supplemental disclosure of non-cash financing
activity: Issuance of preferred stock upon conversion of debt
$ -
$ 23,571
Conversion of debt to preferred stock
$ -
$ (23,571)
Adjusted EBITDA is defined as net income before depreciation and
amortization, interest expense, income taxes, and also adjusted to
add back non-cash compensation costs and charges related to change
in the fair value of our warrants, as these costs are not
considered a part of our core business operations and are not an
indicator of ongoing, future company performance. Airspan
management uses Adjusted EBITDA to focus on Airspan’s on-going
operations, and believes Adjusted EBITDA is useful to investors
because it enables investors to perform meaningful comparisons of
past and present operating results. Airspan also believes that
Adjusted EBITDA provides useful information to investors because it
improves the comparability of the financial results between periods
and provides for greater transparency to key measures used to
evaluate the performance of Airspan. In addition, Airspan
management uses Adjusted EBITDA for evaluating its performance
against competitors and as a performance metric.
The following table reconciles Adjusted EBITDA to net loss,
which is the most directly comparable GAAP measure in Airspan’s
condensed consolidated statement of operations:
AIRSPAN NETWORKS INC. UNAUDITED NON-GAAP DATA (in
thousands) Three months ending March 31,
2021
2020
Net loss
$ (13,549)
$ (13,015)
Adjusted for: Interest expense, net
2,438
1,590
Income tax expense
75
105
Depreciation and amortization
1,053
1,142
EBITDA
(9,983)
(10,178)
Share-based compensation expense
661
492
Warrant fair value change
3,972
530
Adjusted EBITDA
$ (5,350)
$ (9,156)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210610005523/en/
Investor Relations and Media Contact: Howie Waterman
917-359-5505 hwaterman@airspan.com
Media Contact: Paul Wakefield 011 +44 (0) 1895 467181
pwakefield@airspan.com
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