LITTLE FALLS, New Jersey,
Jan. 13, 2020 /PRNewswire/ -- Ceragon
Networks Ltd. (NASDAQ: CRNT), the #1 wireless
backhaul specialist, indicated that it's CEO,
Ira Palti, will address investors at
the Needham Growth Conference on January 14,
2020 at 4:10-4:50 pm ET. His
remarks will be webcast live and available on demand after the
conference from Ceragon's website. Key points from his planned
remarks are summarized below. Final results for Q4/FY 2019 will be
released on February 10, 2020. During
the Q4 results call, management will share its 2020 financial
targets, after completion of its annual plan.
Fourth Quarter of 2019
- Ceragon's revenue grew sequentially in most regions in Q4, with
APAC returning to a more typical level after an unusually strong Q3
and with a sequential revenue decline in India, as previously described during the
company's Q3 results call. Consistent with analysts' expectations,
final Q4 revenue will likely be toward the low end of management's
previously discussed Q4 guidance of $70 to $75
million.
- Q4 results are now expected to include certain additional
one-time items including: 1) a provision of $1.8 to $2.3
million related to inventory of a low-volume older product
made in connection with a plan to reduce the number of contract
manufacturers, and 2) a provision of $1.0 to $1.5
million related to a long-time customer experiencing
financial difficulties. Including these additional provisions, the
total of all one-time items in the fourth quarter is expected to be
in the range of $3.0 million to
$4.5 million, which will
increase both the GAAP and non-GAAP net loss by this
amount.
- Based on management's revenue and product mix expectations for
Q4, including one-time items, the GAAP net loss is expected to be
in the range of $3.0 million to
$4.5 million and the non-GAAP net
loss is expected to be in the range of $3.8
million to $5.3 million.
Excluding one-time items, the net loss is expected to be consistent
with prior comments.
2020 and beyond
- The current outlook for global 5G deployments generally is
in-line with Ceragon's expectations as discussed during the past
year. In India, where specific
issues have caused operators to reevaluate their plans,
management's view remains as described on the Q3 results call.
- The company's quarterly revenue run rate assumption for 2020 is
currently $70-$75 million with the potential for Q1 to be
lower, primarily due to the negative impact of seasonal factors.
As previously noted, important 5G-related design wins secured
during 2019 are expected to produce orders in the first half of
2020, with the related ramp in revenue likely to begin during the
second half.
- Based on its assumptions for quarterly revenue run rate,
product mix and operating expenses, management continues to expect
2020 to be a profitable year, with growth in revenue based on the
expected timing of revenue from recent 5G design wins and
customers' shifting their 5G programs from the planning phase to
deployment.
- The company is continuing to invest aggressively in order to
maintain its technology leadership, including its design-to-cost
and first-to-market advantages. Management plans to capitalize on
these strengths and drive long term growth through 5G-related
market share gains from design wins with new customers and a higher
share of existing customers' business. With its focus on increasing
gross profit while tightly controlling overall operating expenses,
management expects to increase net income as 5G deployments
continue to expand worldwide during the next several years.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the #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 5G & 4G, mission-critical multimedia
services and other applications at high reliability and speed.
Ceragon's unique multicore technology and disaggregated approach
to wireless backhaul provides highly reliable, fast to deploy,
high-capacity wireless backhaul for 5G and 4G networks with minimal
use of spectrum, power and other resources. It enables increased
productivity, as well as simple and quick network modernization,
positioning Ceragon as a leading solutions provider for the 5G era.
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
Safe Harbor
This press release contains statements concerning
Ceragon's future prospects that are "forward-looking statements"
within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended,
and the safe-harbor provisions of 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 about Ceragon's business, financial condition, results
of operations, micro and macro market trends and other issues
addressed or reflected therein. Examples of forward-looking
statements include: projections of demand, revenues, net income,
gross margin, capital expenditures and liquidity, competitive
pressures, order timing, 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
the risks relating to the concentration of a significant
portion of Ceragon's expected business in certain geographic
regions and particularly in India,
where a small number of customers are expected to represent a
significant portion of our revenues, including the risks of
deviations from our expectations of timing and size of orders from
these customers; the risk that the current slowdown in revenue from
India could extend for a longer
period than anticipated; the risk of delays in converting
design wins into revenue as well as the expected revenue growth;
risks associated with any failure to meet our product development
timetable and specifications, and to maintain our technological
advantage over our competitors; risks associated with any failure
to effectively compete with other wireless equipment providers; the
risk that the rollout of 5G services could take longer or
differently than anticipated; and other risks and uncertainties
detailed from time to time in Ceragon's Annual Report on Form 20-F,
Item 3, under the caption "Risk Factors", 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.
Such forward-looking statements do not purport to be predictions of
future events or circumstances, and therefore, there can be no
assurance that any forward-looking statement contained in our
announcements, presentations, or commentary will prove to be
accurate. We do not assume any obligation to update any
forward-looking statements.
Media Contact:
Tanya Solomon
Ceragon Networks
Tel: +972-3-543-1163
media@ceragon.com
Investor Contact:
Ran Vered
Ceragon Networks
Tel. +972-3-543-1595
investor@ceragon.com
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SOURCE Ceragon Networks Ltd