Casa Systems (CASA) Provides Business Update and Preliminary Fourth Quarter Revenue Results

Casa Systems, Inc. (Nasdaq: CASA) today pre-announced that the Company expects to report revenues in the range of $83 to $84 million (unaudited) for the three-month period ended December 31, 2022. These increased fourth quarter revenue results as compared to revenue results for earlier quarters in 2022 were driven by growing demand for the Company’s Cable product offerings and increased shipments of its Fixed Wireless and Fiber Extension Access Device products from backlog, as supply chain conditions continued to improve during the quarter.

“Despite challenging supply chain issues earlier in 2022, we are very pleased to end the year with this improved fourth quarter revenue performance” said Jerry Guo, Casa Systems' President, and Chief Executive Officer. “As we enter 2023, we are looking forward to improved financial results mid-year and during the second half of 2023 as we capitalize on many favorable market dynamics, including the increased Cable MSO demand for our next generation Virtual CCAP and Remote PHY solutions, which are now successfully deployed at several large Cable MSO’s. This increased demand is validated by both publicly announced cable MSO capital equipment spending plans by some of our largest global cable MSO customers, as well as a March 2022 independent analyst survey of 50 cable MSO’s who all indicated they plan to implement next-generation Virtual CCAP solutions within the next 24 months.”

Mr. Guo added “We are further seeing growing demand for our Access Device products, including our new 4G/5G enterprise small cell radio offerings as demonstrated by a recent win at a leading North American mobile network operator which added $8 million to our backlog for shipment in 2023. Meanwhile, several of our key suppliers have publicly commented on lead times returning to normal, evidencing supply chain improvements which should allow us to ship and realize a substantial portion of our ending 2022 backlog. This ending backlog was in excess of $150 million, excludes future TCV billings under multi-year cloud and 4G/5G small cell radio as-ordered contracts for 2024 and beyond, and also excludes deferred revenue on our balance sheet at year end. Finally, we continue to make good progress with our new Cloud software products, customers and partnerships and believe these collective efforts will also favorably impact mid-year and second half 2023 performance.”

In addition to these improved fourth quarter revenue results, the Company also is announcing that it successfully settled a previously disclosed customer warranty claim in late December 2022, in an amount consistent with the charge recorded by the Company for this matter in the third quarter of 2022.

Finally, the Company is announcing it has successfully retired an additional $8.9 million face value of Term Loan B debt, supplementing the $41.7 million of debt retirements disclosed in the Company’s most recent 10Q filing.

The above preliminary revenue results for the fourth quarter ended December 31, 2022, are an estimate, based on information available to management as of the date of this release, and are subject to further changes upon completion of the company’s standard quarter and year closing procedures. This update does not present all necessary information for an understanding of Casa’s financial condition as of the date of this release, or its results of operations for the fourth quarter. As we complete our quarter-end financial close process and finalize our financial statements for the quarter it is possible that we may identify items that require adjustments to the preliminary financial information set forth above, and those changes could be material. We do not intend to update such financial information prior to the release of final fourth quarter and full year financial results in early March 2023. At that time, the Company will also provide annual guidance for the year ending December 31, 2023.

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