LITTLE FALLS, New Jersey,
Aug. 6, 2018 /PRNewswire/ -- Ceragon
Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist
today reported results for the second quarter which ended
June 30, 2018.
Second Quarter 2018 Highlights:
Revenues - $88.3 million,
down 5.4% from the second quarter of 2017, and up 6.1% from the
first quarter of 2018.
Gross margin – 32.5%, compared to 31.3% in the second
quarter of 2017 and 33.1% in the first quarter of 2018.
Operating income - $6.4
million, compared to $8.0
million in the second quarter of 2017, and $5.4 million in the first quarter of 2018.
Net income - $3.2 million,
or $0.04 per diluted share for the
second quarter of 2018, compared to 5.0 million, or $0.06 per diluted share, in the second quarter of
2017. Net income for the first quarter of 2018 was $2.1 million, or $0.03 per diluted share.
Non-GAAP results – Gross margin was 32.6%, operating
income was $7.1 million, and net
income was $3.8 million, or
$0.05 per diluted share. For
reconciliation of GAAP to non-GAAP results, see the attached
tables.
Cash and cash equivalents - $29.4
million at June 30, 2018,
compared to $26.0 million at
March 31, 2018.
"The second quarter contributed to a strong first half and was
in line with our expectations," said Ira
Palti, president and CEO of Ceragon. "Our bookings in Q2
continue to support our target quarterly revenue run rate of
$80 to $85
million during the second half, and we continue to target an
increase in net income for the year. We are increasingly optimistic
about the longer-term outlook as we work with operators to plan and
implement projects to upgrade, densify and optimize their networks
on the road to full 5G deployments during the next several
years."
Supplemental geographical breakdown of revenue for the second
quarter of 2018:
·
Europe:
|
11%
|
·
Africa:
|
4%
|
·
North America:
|
10%
|
·
Latin America:
|
17%
|
·
India:
|
47%
|
·
APAC:
|
11%
|
A conference call to discuss the results will begin at
9:00 a.m. EDT. Investors are invited
to join the Company's teleconference by calling USA: (800) 230-1059 or International: +1 (612)
288-0340, from 8:50 a.m. EDT. The
call-in lines will be available on a first-come, first-serve
basis.
Investors can also listen to the call live via the Internet by
accessing Ceragon Networks' website at the investors' page:
http://www.ceragon.com/about-us/ceragon/investor-relations,
selecting the webcast link, and following the registration
instructions.
If you are unable to join us live, the replay numbers are:
USA: (800) 475-6701 or
International +1 (320) 365-3844 Access Code: 451294. A replay of
both the call and the webcast will be available through
September 6, 2018.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the world's #1 wireless
backhaul specialist. We help operators and other service providers
worldwide increase operational efficiency and enhance end
customers' quality of experience with innovative wireless backhaul
solutions. Our customers include wireless service providers, public
safety organizations, government agencies and utility companies,
which use our solutions to deliver 4G, mission-critical multimedia
services and other applications at high reliability and speed.
Ceragon's unique multicore technology provides a highly reliable,
high-capacity 4G wireless backhaul with minimal use of spectrum,
power and other resources. It enables increased productivity, as
well as simple and quick network modernization. We deliver a range
of professional services that ensure efficient network rollout and
optimization to achieve the highest value for our customers. Our
solutions are deployed by more than 460 service providers, as well
as hundreds of private network owners, in more than 130
countries.
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Ceragon Networks® and FibeAir® are registered trademarks of
Ceragon Networks Ltd. in the United
States and other countries. CERAGON ® is a trademark of
Ceragon Networks Ltd., registered in various countries. Other names
mentioned are owned by their respective holders.
This press release contains statements concerning Ceragon's
future prospects that are "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on the current beliefs,
expectations and assumptions of Ceragon's management. Examples of
forward-looking statements include: projections of revenues, net
income, gross margin, capital expenditures and liquidity,
competitive pressures, growth prospects, product development,
financial resources, cost savings and other financial matters. You
may identify these and other forward-looking statements by the use
of words such as "may", "plans", "anticipates", "believes",
"estimates", "targets", "expects", "intends", "potential" or the
negative of such terms, or other comparable terminology. These
forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including risks
associated with a decline in revenues due to our focus on a single
market segment; risks relating to the concentration of Ceragon's
business in certain geographic regions such as India, and in other developing nations;
political, economic and regulatory risks from doing business in
those developing regions, including potential currency restrictions
and fluctuations; risks related to our ability to meet the demand
for our products due shortages in raw materials including certain
passive components; risks associated with a change in Ceragon's
gross margin as a result of changes in the geographic mix of
revenues and/or as a results of increase in costs of raw material,
including certain passive components; risks associated with the
loss of a single customer or customer group, which represents a
significant portion of Ceragon's revenues; risks associated with
Ceragon's failure to effectively compete with other wireless
equipment providers; and other risks and uncertainties detailed
from time to time in Ceragon's Annual Report on Form 20-F and
Ceragon's other filings with the Securities and Exchange Commission
that represent our views only as of the date they are made and
should not be relied upon as representing our views as of any
subsequent date. We do not assume any obligation to update any
forward-looking statements.
-tables follow-
Ceragon Reports
Second Quarter 2018 Results
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except share and per share data)
|
(Unaudited)
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
88,328
|
|
$
93,334
|
|
$
171,603
|
|
$
169,355
|
Cost of
revenues
|
|
59,579
|
|
64,131
|
|
115,250
|
|
117,848
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
28,749
|
|
29,203
|
|
56,353
|
|
51,507
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
6,821
|
|
6,128
|
|
14,035
|
|
12,235
|
Selling and marketing
|
|
10,369
|
|
10,041
|
|
20,931
|
|
19,776
|
General
and administrative
|
|
5,190
|
|
5,065
|
|
9,649
|
|
9,570
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
$
22,380
|
|
$
21,234
|
|
$
44,615
|
|
$
41,581
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
6,369
|
|
7,969
|
|
11,738
|
|
9,926
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
|
2,646
|
|
1,481
|
|
4,680
|
|
3,079
|
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
3,723
|
|
6,488
|
|
7,058
|
|
6,847
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
|
497
|
|
1,506
|
|
1,762
|
|
1,993
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
3,226
|
|
$
4,982
|
|
$
5,296
|
|
$
4,854
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
|
$
0.04
|
|
$
0.06
|
|
$
0.07
|
|
$
0.06
|
Diluted net income
per share
|
|
$
0.04
|
|
$
0.06
|
|
$
0.07
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
Weighed average
number of shares used in
computing basic net income per share
|
|
78,231,726
|
|
77,891,218
|
|
78,155,810
|
|
77,845,690
|
|
|
|
|
|
|
|
|
|
Weighed average
number of shares used in
computing diluted net income per share
|
|
80,850,353
|
|
80,202,048
|
|
80,457,636
|
|
80,359,375
|
Ceragon Reports
Second Quarter 2018 Results
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2018
|
|
2017
|
ASSETS
|
|
Unaudited
|
|
Audited
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
29,398
|
|
$
25,877
|
Trade receivables,
net
|
|
118,545
|
|
113,719
|
Other accounts
receivable and prepaid expenses
|
|
10,512
|
|
17,052
|
Inventories
|
|
46,040
|
|
54,164
|
Total current
assets
|
|
204,495
|
|
210,812
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
Long-term bank deposits
|
|
996
|
|
996
|
Deferred
tax assets
|
|
529
|
|
988
|
Severance
pay and pension fund
|
|
5,115
|
|
5,459
|
Property
and equipment, net
|
|
30,055
|
|
29,870
|
Intangible assets, net
|
|
2,810
|
|
2,199
|
Other
non-current assets
|
|
3,212
|
|
3,269
|
Total non-current
assets
|
|
42,717
|
|
42,781
|
Total assets
|
|
$
247,212
|
|
$
253,593
|
LIABILITIES AND
SHAREHOLDERS EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
63,614
|
|
$
75,476
|
Deferred
revenues
|
|
6,357
|
|
5,193
|
Other accounts payable
and accrued expenses
|
|
25,390
|
|
24,781
|
Total current
liabilities
|
|
95,361
|
|
105,450
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Deferred tax
liability
|
|
92
|
|
141
|
Accrued severance pay
and pension
|
|
9,555
|
|
10,085
|
Other long term
payables
|
|
3,730
|
|
4,019
|
Total long-term
liabilities
|
|
13,377
|
|
14,245
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share
capital:
|
|
|
|
|
Ordinary
shares
|
|
214
|
|
214
|
Additional paid-in
capital
|
|
412,223
|
|
410,817
|
Treasury shares at
cost
|
|
(20,091)
|
|
(20,091)
|
Other comprehensive
loss
|
|
(9,367)
|
|
(7,171)
|
Accumulated
deficits
|
|
(244,505)
|
|
(249,871)
|
Total shareholders'
equity
|
|
138,474
|
|
133,898
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
247,212
|
|
$
253,593
|
Ceragon Reports
Second Quarter 2018 Results
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(U.S. dollars, in
thousands)
|
(Unaudited)
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
3,226
|
|
$
4,982
|
|
$
5,296
|
|
$
4,854
|
Adjustments to
reconcile net income to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,990
|
|
2,229
|
|
3,501
|
|
4,574
|
Stock-based
compensation expense
|
679
|
|
261
|
|
1,032
|
|
619
|
Increase in trade and
other receivables, net
|
(292)
|
|
(16,519)
|
|
(109)
|
|
(9,288)
|
Decrease (increase) in inventory, net of
|
|
|
|
|
|
|
|
write off
|
2,561
|
|
(5,571)
|
|
7,049
|
|
(10,555)
|
Decrease (increase) in deferred tax asset,
|
|
|
|
|
|
|
|
net
|
(64)
|
|
155
|
|
410
|
|
140
|
Increase (decrease) in trade payables and
|
|
|
|
|
|
|
|
accrued
liabilities
|
(4,383)
|
|
14,778
|
|
(10,237)
|
|
18,775
|
Increase in deferred
revenues
|
856
|
|
2,053
|
|
1,796
|
|
1,018
|
Other
adjustments
|
(394)
|
|
(100)
|
|
(186)
|
|
(88)
|
Net cash provided
by operating activities
|
$
4,179
|
|
$
2,268
|
|
$
8,552
|
|
$
10,049
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Purchase of property
and equipment, net
|
(658)
|
|
(1,196)
|
|
(3,957)
|
|
(3,505)
|
Purchase of intangible
assets, net
|
(250)
|
|
-
|
|
(1,336)
|
|
-
|
Net cash used in
investing activities
|
$
(908)
|
|
$
(1,196)
|
|
$
(5,293)
|
|
$
(3,505)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from share
options exercise
|
274
|
|
115
|
|
374
|
|
189
|
Repayment of bank
loans
|
-
|
|
(3,500)
|
|
-
|
|
(9,000)
|
Net cash
provided by (used in) financing activities
|
$
274
|
|
$
(3,385)
|
|
$
374
|
|
$
(8,811)
|
|
|
|
|
|
|
|
|
Translation
adjustments on cash and cash equivalents
|
$
(103)
|
|
$
(60)
|
|
$
(112)
|
|
$
16
|
Increase
(decrease) in cash and cash equivalents
|
$
3,442
|
|
$
(2,373)
|
|
$
3,521
|
|
$
(2,251)
|
Cash and cash
equivalents at the beginning of the period
|
25,956
|
|
36,460
|
|
25,877
|
|
36,338
|
Cash and cash
equivalents at the end of the period
|
$
29,398
|
|
$
34,087
|
|
$
29,398
|
|
$
34,087
|
|
|
|
|
|
|
|
|
Ceragon Reports
Second Quarter 2018 Results
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
|
(U.S. dollars, in
thousands)
|
(Unaudited)
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP cost of
revenues
|
$
59,579
|
|
$
64,131
|
|
$
115,250
|
|
$
117,848
|
Amortization of
intangible assets
|
-
|
|
(306)
|
|
-
|
|
(609)
|
Stock based
compensation expenses
|
(1)
|
|
(12)
|
|
(18)
|
|
(32)
|
Changes in
pre-acquisition indirect tax positions
|
(12)
|
|
(165)
|
|
(27)
|
|
(327)
|
Non GAAP cost of
revenues
|
$
59, 566
|
|
$
63,648
|
|
$
115,205
|
|
$
116,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
28,749
|
|
$
29,203
|
|
$
56,353
|
|
$
51,507
|
Gross profit
adjustments
|
13
|
|
483
|
|
45
|
|
968
|
Non-GAAP gross
profit
|
$
28,762
|
|
$
29,686
|
|
$
56,398
|
|
$
52,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
$
6,821
|
|
$
6,128
|
|
$
14,035
|
|
$
12,235
|
Stock based
compensation expenses
|
(67)
|
|
(45)
|
|
(127)
|
|
(123)
|
Non GAAP Research and
development expenses
|
$
6,754
|
|
$
6,083
|
|
$
13,908
|
|
$
12,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and
Marketing expenses
|
$
10,369
|
|
$
10,041
|
|
$
20,931
|
|
$
19,776
|
Amortization of
intangible assets
|
-
|
|
(74)
|
|
-
|
|
(145)
|
Stock based
compensation expenses
|
(142)
|
|
(75)
|
|
(286)
|
|
(153)
|
Non-GAAP Sales and
Marketing expenses
|
$
10,227
|
|
$
9, 892
|
|
$
20,645
|
|
$
19,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
Administrative expenses
|
$
5,190
|
|
$
5,065
|
|
$
9,649
|
|
$
9,570
|
Stock based
compensation expenses
|
(469)
|
|
(129)
|
|
(601)
|
|
(311)
|
Non-GAAP General and
Administrative expenses
|
$
4,721
|
|
$
4,936
|
|
$
9,048
|
|
$
9,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Tax
expenses
|
$
497
|
|
$
1,506
|
|
$
1,762
|
|
$
1,993
|
Non cash tax
adjustments
|
96
|
|
(187)
|
|
(468)
|
|
(285)
|
Non-GAAP Tax
expenses
|
$
593
|
|
$
1,319
|
|
$
1,294
|
|
$
1,708
|
Ceragon Reports
Second Quarter 2018 Results
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
|
(U.S. dollars, in
thousands)
|
(Unaudited)
|
|
|
Three months
ended
June
30,
|
|
Six months
ended
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP net
income
|
$
3,226
|
|
$
4,982
|
|
$
5,296
|
|
$
4,854
|
Amortization of
intangible assets
|
-
|
|
380
|
|
-
|
|
754
|
Stock based
compensation expenses
|
679
|
|
261
|
|
1,032
|
|
619
|
Changes in
pre-acquisition indirect tax positions
|
12
|
|
165
|
|
27
|
|
327
|
Non-cash tax
adjustments
|
(96)
|
|
187
|
|
468
|
|
285
|
Non-GAAP net
income
|
$
3,821
|
|
$
5,975
|
|
$
6,823
|
|
$
6,839
|
GAAP basic net income
per share
|
$
0.04
|
|
$
0.06
|
|
$
0.07
|
|
$
0.06
|
GAAP diluted net
income per share
|
$
0.04
|
|
$
0.06
|
|
$
0.07
|
|
$
0.06
|
Non-GAAP basic and
diluted net income per share
|
$
0.05
|
|
$
0.07
|
|
$
0.08
|
|
$
0.08
|
Weighed average
number of shares used in computing
|
|
|
|
|
|
|
|
GAAP basic net income
per share
|
78,231,726
|
|
77,891,218
|
|
78,155,810
|
|
77,845,690
|
Weighed average
number of shares used in computing
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
80,850,353
|
|
80,202,048
|
|
80,457,636
|
|
80,359,375
|
Weighed average
number of shares used in computing
|
|
|
|
|
|
|
|
Non-GAAP diluted net
income per share
|
81,156,546
|
|
80,404,841
|
|
80,767,046
|
|
80,580,267
|
Investors:
Doron Arazi
+972-3-5431-660
dorona@ceragon.com
or
Claudia Gatlin
+1-212-830-9080
claudiag@ceragon.com
Media:
Tanya Solomon
+972-3-5431163
tanyas@ceragon.com
View original
content:http://www.prnewswire.com/news-releases/ceragon-networks-reports-second-quarter-2018-financial-results-300692248.html
SOURCE Ceragon Networks Ltd