New York, New York--(Newsfile Corp. - May 26, 2024) - Pomerantz LLP is investigating claims on behalf of investors of Cambium Networks Corporation ("Cambium" or the "Company") (NASDAQ: CMBM). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Cambium and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On August 1, 2023, after the market closed, Cambium reported that second quarter 2023 revenue fell 23% sequentially due to "higher channel inventories" that resulted in lower demand for Enterprise products." As a result, the Company reduced its fiscal 2023 guidance, advising investors that it expected revenue to decline 7% to 11% year-over-year. Cambium also announced that its Chief Executive Officer, Atul Bhatnagar, would step down immediately.
On this news, Cambium's stock price fell $4.89 per share, or 30.07%, to close at $11.37 per share on August 2, 2023.
Then, on October 4, 2023, Cambium announced preliminary third quarter 2023 revenue "between $40.0-$45.0 million compared to the previous outlook of $62.0-$70.0 million[.]" Cambium attributed the shortfall to, in part, "a decrease in orders and an increase in stock rotations from distributors in the Enterprise business" and "pressure" from "channel inventories."
On this news, Cambium's stock price fell $2.87 per share, or 36.2%, to close at $5.05 per share on October 5, 2023.
Finally, on January 18, 2024, Cambium revealed that preliminary fourth quarter 2023 revenue was expected to be "approximately $40.0 million compared to the previous outlook of $45.0-$50.0[.]" Cambium attributed the revenue shortfall to "offering aggressive Enterprise product discounts to clear excess channel inventories." The Company further revealed that "gross margin will also be below the low end of the range due to increased excess and obsolete inventory reserves." Moreover, Cambium disclosed that its Chief Financial Officer would depart Cambium on February 2, 2024.
On this news, Cambium's stock price fell $0.60 per share or 12.4%, to close at $4.24 per share on January 19, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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