Casa Systems, Inc. (NASDAQ:CASA) Q4 2022 Earnings Call Transcript

Tim Savageaux: Understood. And last question for me, you know pretty impressive gross margin performance, even with the charge, but I assume that’s heavily influenced by the cable strength and capacity licenses and whatnot in terms of driving that and so and that would be a high point for the year given your comments on cable. I mean, do you continue to expect sort of an upward direction in gross margins as we head into ’23 and given you’ve been in a pretty wide range in €˜22.

A – Ed Durkin: Yeah €“ Oh, I’m sorry. Go ahead Jerry.

Jerry Guo: Sorry. When you look at the growth drivers for Casa in 2023, the wireless core, the packet core is one of the significant growth drivers, and that’s pure software, and of course it’s going to help with the margin and we also have small cell radio as another growth driver in 2023. So it’s a mid-margin business and our cable is going to be a combination of virtual CCAP core and chassis and the license sales, as well as RPD sales, and they tend to come in at a very good margin, historically very good, and we do see a significant difference in the gross margin of cable this year.

Tim Savageaux: Okay, great. Thanks very much.

Operator: Thank you. We’ve reached the end of our question-and-answer session. I’d like to turn the floor back over for any further or closing comments.

Jerry Guo: Well, again I’d like to thank everybody for attending this call, and we look forward to reporting to you the transformations of the company and the management team under Ed €“ the performance of the management team under Ed going forward for you.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time and have a wonderful day! We thank you for your participation today.