Casa Systems reports fourth quarter 2020 and full year 2020 financial results

ANDOVER, Mass. -- Casa Systems, Inc. (Nasdaq: CASA), a leading provider of physical and cloud-native infrastructure technology solutions for mobile, cable and fixed networks, today announced its financial results for its fourth quarter and year ended December 31, 2020.

Fourth Quarter 2020 Financial & Operational Highlights

• Revenue of $120.5 million
• Gross margin of 51.6%
• GAAP net income of $23.2 million
• Non-GAAP net income of $22.9 million
• GAAP net income per fully diluted share of $0.27
• Non-GAAP net income per fully diluted share of $0.27
• Adjusted EBITDA of $25.3 million

2020 Financial Highlights

• Revenue of $393.2 million
• Gross margin of 51.0%
• GAAP net income of $24.8 million
• Non-GAAP net income of $24.3 million
• GAAP net income per fully diluted share of $0.29
• Non-GAAP net income per fully diluted share of $0.28
• Adjusted EBITDA of $55.3 million

“We had one of our strongest quarters with record wireless revenue and a healthy backlog to support our top-line growth in 2021,” said Jerry Guo, Casa Systems’ President and CEO. “Our progress this year is evident in our scaling up of new products including our industry leading 5G millimeter wave fixed access devices, diversifying our revenue through increased wireless and fixed telco sales, and expanding our customer base, while simultaneously improving our cost structure. This is continued validation of the strategic direction in which we have been taking our Company to drive long-term, sustainable growth and profitability.”

Scott Bruckner, Casa Systems’ CFO added, “I am very pleased with our results for the fourth quarter and full year 2020. We achieved top-line and gross profit growth and continued operating leverage off of our efficient cost structure to deliver significant growth in operating income, EBITDA and EPS. We closed the year with a strong cash balance and increased working capital that further strengthened our liquidity and advanced our financial deleveraging.”

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), we are presenting non-GAAP financial measures in this press release. A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.

Financial Outlook

For the fiscal year 2021, we expect:

• Revenue between $425 million and $445 million
• GAAP Operating Income between $28 million and $38 million
• Non-GAAP Operating Income between $48 million and $58 million
• Adjusted EBITDA between $60 million and $70 million
• GAAP diluted net loss per share between $0.05 and $0.14 and Non-GAAP diluted net income per share between $0.23 and $0.32

Guidance for non-GAAP financial measures excludes acquisition costs and other non-recurring expenses, which are one-time non-recurring charges; stock-based compensation, which is a non-cash charge; adjustments to the tax provision for the CARES Act; and the resulting tax effect of these excluded items. We have not reconciled the non-GAAP metrics as to which we provide guidance to their most directly comparable GAAP metrics because certain items that impact these excluded measures are uncertain, out of our control and/or cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation of the non-GAAP financial metrics included in our guidance to the corresponding GAAP measures is not available without unreasonable effort.