LITTLE FALLS, New Jersey, Nov. 5, 2018 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist today reported results for the third quarter which ended September 30, 2018.

Third Quarter 2018 Highlights:

Revenues - $86.5 million, up 13.9% from the third quarter of 2017, and down 2.0% from the second quarter of 2018.

Gross margin - 35.0%, compared to 35.1% in the third quarter of 2017 and 32.5% in the second quarter of 2018.

Operating income - $7.9 million, compared to $5.7 million in the third quarter of 2017, and $6.4 million in the second quarter of 2018.

Net income - $6.2 million, or $0.08 per diluted share for the third quarter of 2018.  Net income for the third quarter of 2017 was $3.5 million, or $0.04 per diluted share. Net income for the second quarter of 2018 was $3.2 million or $0.04 per diluted share.

Non-GAAP results - gross margin was 35.0%, operating income was $8.4 million, and net income was $5.7 million, or $0.07 per diluted share. For reconciliation of GAAP to non-GAAP results, see the attached tables.

Cash and cash equivalents - $41.3 million at September 30, 2018, compared to $29.4 million at June 30, 2018.

"We are pleased to report an excellent third quarter, with revenues above the upper end of our quarterly run rate and net income growing both sequentially and versus Q3 of 2017," said Ira Palti, president and CEO of Ceragon. "We are achieving our goal of growing net income and delivering strong cash flow, even as we continue to invest aggressively in our next generation 5G solutions, and we remain on track to attain an increase in non-GAAP net income in 2018 compared to 2017. We manage the business with net income growth as our most important metric, and our goal is to report further growth in non-GAAP net income for 2019 as well."

Supplemental geographical breakdown of revenue for the third quarter of 2018:

- Europe:

9%

- Africa:

10%

- North America:

13%

- Latin America:

21%

- India:

34%

- APAC:

13%

A conference call to discuss the results will begin at 9:00 a.m. EST. Investors are invited to join the Company's teleconference by calling USA: (800) 230-1059 or International: +1 (612) 234-9959, from 8:50 a.m. EST. 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: 455394. A replay of both the call and the webcast will be available through December 5, 2018.

About Ceragon

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 mission-critical multimedia services and other applications at high reliability and speed. Ceragon's unique multicore technology provides a highly reliable, high-capacity 4G and 5G 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. 

Join the Discussion

LinkedIn: https://www.linkedin.com/company/ceragon-networks 
Facebook: https://www.facebook.com/ceragonnetworks/ 
Twitter: https://twitter.com/Ceragon
YouTube: https://www.youtube.com/user/CeragonNetworks?feature=mhum

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; risk relating to certain guarantees granted by Ceragon on behalf of Orocom to FITEL, in the framework of the FITEL project; political, economic and regulatory risks from doing business in developing regions, including potential currency restrictions and fluctuations; risks related to our ability to meet the demand for our products due to 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 result of increase in costs of raw materials, 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 Third Quarter 2018 Results


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

(Unaudited)




Three months ended


Nine months ended



September 30,


September 30,



2018


2017


2018


2017



















Revenues


$      86,529


$      75,999


$    258,132


$    245,354

Cost of revenues


56,245


49,326


171,495


167,174










Gross profit


30,284


26,673


86,637


78,180










Operating expenses:









Research and development


7,436


6,975


21,471


19,210

Selling and marketing


10,510


9,543


31,441


29,319

General and administrative


4,438


4,462


14,087


14,032










Total operating expenses


22,384


20,980


66,999


62,561










Operating income


7,900


5,693


19,638


15,619










Financial expenses, net


797


1,655


5,477


4,734










Income before taxes


7,103


4,038


14,161


10,885










Taxes on income


952


542


2,714


2,535










Net income


$        6,151


$        3,496


$     11,447


$       8,350



















Basic net income per share


$          0.08


$          0.04


$          0.15


$          0.11










Diluted net income per share


$          0.08


$          0.04


$          0.14


$          0.10











Weighted average number of shares 
   used in computing basic net income 
   per share


78,455,128


77,964,433


78,256,060


77,885,555










Weighted average number of shares
  used in computing diluted net
  income per share


81,172,392


79,596,845


80,696,365


80,105,482

 

 

Ceragon Reports Third Quarter 2018 Results


CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)




September 30,


December 31,



2018


2017

ASSETS


Unaudited


Audited   






CURRENT ASSETS:





Cash and cash equivalents


$       41,322


$     25,877

Trade receivables, net


113,193


113,719

Other accounts receivable and prepaid expenses


11,435


17,052

Inventories


47,435


54,164

Total current assets


213,385


210,812






NON-CURRENT ASSETS:
 
  Long-term bank deposits


997


996

   Deferred taxes, net


564


988

   Severance pay and pension fund


5,271


5,459

   Property and equipment, net


31,096


29,870

Intangible assets, net


4,154


2,199

      Other non-current assets


3,481


3,269

Total non-current assets


45,563


42,781

Total assets


$        258,948


$      253,593






LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Trade payables


$           66,168


$       75,476

Deferred revenues


7,926


5,193

Other accounts payable and accrued expenses


25,474


24,781

Total current liabilities


99,568


105,450






LONG-TERM LIABILITIES:
    Deferred tax liability


65


141

Accrued severance pay and pension


10,006


10,085

Other long-term payables


3,766


4,019

Total long-term liabilities


13,837


14,245






SHAREHOLDERS' EQUITY:





Share capital:





Ordinary shares


214


214

     Additional paid-in capital


412,862


410,817

Treasury shares at cost


(20,091)


(20,091)

Other comprehensive loss


(9,088)


(7,171)

Accumulated deficits


(238,354)


(249,871)






Total shareholders' equity


145,543


133,898






Total liabilities and shareholders' equity


$        258,948


$       253,593







 

 

Ceragon Reports Third Quarter 2018 Results 


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars, in thousands)

(Unaudited)



Three months ended


Nine months ended



September 30,


September 30,



2018


2017


2018


2017


Cash flow from operating activities:









Net income

$    6,151


$    3,496


$   11,447


$    8,350


Adjustments to reconcile net income to net cash provided by (used in)
    operating activities:









Depreciation and amortization

2,094


2,191


5,595


6,766


Stock-based compensation expense

450


349


1,482


968


Decrease (increase) in trade and other receivables, net

3,804


(12,925)


3,695


(22,213)


Decrease (increase) in inventory, net of write off

(1,719)


402


5,330


(10,153)


 Increase (decrease) in trade payables and accrued liabilities

2,824


(3,831)


(7,413)


14,944


Increase in deferred revenues

1,684


329


3,480


1,347


Decrease (increase) in deferred tax asset, net

(62)


252


348


392


Other adjustments

295


221


109


133











Net cash provided by (used in) operating activities

$  15,521


$  (9,516)


$  24,073


$       534











Cash flow from investing activities:









   Purchase of property and equipment

(2,276)


(3,980)


(6,233)


(7,485)


   Purchase of intangible assets, net

(1,488)


-


(2,824)


-











Net cash used in investing activities

$   (3,764)


$  (3,980)


$  (9,057)


$  (7,485)











Cash flow from financing activities:









 Proceeds from share options exercise  

189


40


563


229


 Proceeds from bank loans

-


15,800


-


6,800


Net cash provided by financing activities

$       189


$  15,840


$       563


$    7,029











Translation adjustments on cash and cash equivalents

(22)


39


(134)


54


Increase in cash and cash equivalents

$  11,924


$    2,383


$  15,445


$       132


Cash and cash equivalents at the beginning of the period

29,398


34,087


25,877


36,338


Cash and cash equivalents at the end of the period

$ 41,322


$  36,470


$  41,322


$  36,470












 

 

Ceragon Reports Third Quarter 2018 Results 


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands)

(Unaudited)




Three months ended


Nine months ended



September 30,


September 30,



2018


2017


2018


2017














GAAP cost of revenues


$

56,245


$

49,326


$

171,495


$

167,174

Amortization of intangible assets



-



(310)



-



(919)

Stock based compensation expenses



(15)



(10)



(33)



(42)

Changes in pre-acquisition indirect tax positions



(11)



209



(38)



(118)

Non-GAAP cost of revenues


$


56,219


$

49,215


$

171,424


$

166,095














GAAP gross profit


$


30,284


$

26,673


$

86,637


$

78,180

Gross profit adjustments



26



111



71



1,079

Non-GAAP gross profit


$


30,310


$

26,784


$

86,708


$

79,259














GAAP Research and development expenses


$


7,436


$

6,975


$

21,471


$

19,210

Stock based compensation expenses



(83)



(32)



(210)



(156)

Non-GAAP Research and development expenses


$


7,353


$

6,943


$

21,261


$

19,054














GAAP Sales and Marketing expenses


$


10,510


$

9,543


$

31,441


$

29,319

Amortization of intangible assets



-



(74)



-



(219)

Stock based compensation expenses



(161)



(94)



(447)



(246)

Non-GAAP Sales and Marketing expenses


$


10,349


$

9,375


$

30,994


$

28,854














GAAP General and Administrative expenses


$


4,438


$

4,462


$

14,087


$

14,032

Stock based compensation expenses



(191)



(213)



(792)



(524)

Non-GAAP General and Administrative expenses


$


4,247


$

4,249


$

13,295


$

13,508














GAAP financial expenses


$


797


$

1,655


$

5,477


$

4,734

Recovery of devaluation related expenses in Venezuela



969



-



969



-

Non-GAAP financial expenses


$

1,766


$

1,655


$

6,446


$

4,734














GAAP taxes on income


$

952


$

542


$

2,714


$

2,535

Other non-cash tax adjustments



(58)



(340)



(526)



(625)

Non-GAAP taxes on income


$

894


$

202


$

2,188


$

1,910


















 

 

Ceragon Reports Third Quarter 2018 Results 


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS


(U.S. dollars in thousands, except share and per share data)

(Unaudited)










Three months ended


Nine months ended



September 30,


September 30,



2018


2017


2018


2017

GAAP net income


$

6,151


$

3,496


$

11,447


$

8,350

Amortization of intangible assets



-



384



-



1,138

Stock based compensation
expenses



450



349



1,482



968

Changes in pre-acquisition tax
exposures



11



(209)



38



118

Recovery of devaluation related
expenses in Venezuela



(969)



-



(969)



-

Non-cash tax adjustments



58



340



526



625

Non-GAAP net income 


$

5,701


$

4,360


$

12,524


$

11,199














GAAP basic net income per share


$

0.08


$

0.04


$

0.15


$

0.11














GAAP diluted net income per share


$

0.08


$

0.04


$

0.14


$

0.10














Non-GAAP basic and diluted net
income per share


$

0.07


$

0.05


$

0.15


$

0.14














Weighted average number of
shares used in computing GAAP

basic net income per share



78,455,128



77,964,433



78,256,060



77,885,555














Weighted average number of
shares used in computing

GAAP diluted net income per share



81,172,392



79,596,845



80,696,365



80,105,482














Weighted average number of
shares used in computing

Non-GAAP diluted net income per
share



81,546,013



79,880,400



81,027,179



80,347,262

 

 

Investors:


Doron Arazi                  or

Claudia Gatlin

+972 3 5431 660

+1 212 830-9080

dorona@ceragon.com

claudiag@ceragon.com



Media:


Tanya Solomon


+972 3 5431163


tanyas@ceragon.com


    

 

Cision View original content:http://www.prnewswire.com/news-releases/ceragon-networks-reports-third-quarter-2018-financial-results-300743754.html

SOURCE Ceragon Networks Ltd

Copyright 2018 PR Newswire

Ceragon Networks (NASDAQ:CRNT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Ceragon Networks Charts.
Ceragon Networks (NASDAQ:CRNT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Ceragon Networks Charts.