LITTLE FALLS, New Jersey,
July 2, 2019 /PRNewswire/ -- Ceragon
Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist,
today announced a further delay in receiving certain large orders
from India. The orders, which the
company had expected in time to be able to recognize a significant
portion of the related revenue during the second quarter of 2019,
are now expected in the third quarter. As a result of the further
delay, approximately $20 million of
revenue was pushed out from the second quarter. The remainder of
Ceragon's global business was slightly better than management's
expectations during the quarter.
Due to the unanticipated delay in the orders from India, the company currently estimates that
that its second quarter 2019 results will include revenue in the
range of $71 million to $74 million. On a GAAP basis, net results are
expected to be in the range of a small loss to a small profit, with
a net profit on a non-GAAP basis. This does not represent an
update of prior guidance because the company does not typically
provide detailed quarterly guidance. Ceragon expects to report
actual results for the second quarter of 2019 on August 12, 2019.
"We received one of the smaller orders from India in the last few days, and we expect to
receive the other, larger orders in time to recognize the related
revenue during Q3 and Q4," said Ira
Palti, president and CEO of Ceragon. "The reasons for the
delay relate to customers' internal processes, and the aggregate
value of these orders has remained the same since we first began
working on the details. Since we don't expect an acceleration of
the deployment schedule, the delay is expected to roll through the
remaining quarters of 2019 and push a total of approximately
$20 million of revenue related to
India from 2019 into 2020.
"These new orders are part of an ongoing 4G expansion and
densification effort in India that
we have been supporting for the past 5 years," Mr. Palti noted.
"Our compact all-outdoor wireless backhaul solution has been
extremely well-received in the region because it enables quick and
simple capacity ramp-up with no service interruption via its unique
multicore capabilities. Ceragon is proud to be an integral part of
this massive effort in one of the largest and fastest growing
telecommunications markets in the world, and we look forward to
continuing to support these deployments as they evolve along the
path from 4G to 5G. In addition, we expect to apply the same
advantages that have enabled us to achieve our leading position in
wireless backhaul in India to
other geographic markets as operators around the world upgrade and
densify their networks in preparation for launching 5G
services."
Conference Call Details
A conference call will take place today beginning at
9:00 a.m. EDT. Investors are invited
to join by calling USA: (800)
230-1059 or International: +1 (612) 234-9959, 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
Network's website at www.ceragon.com/investors/webcasts/, and
completing the registration. If you are unable to join live,
the replay numbers are: USA: (800)
475-6701 or International: +1 (320) 365-3844 Access Code: 469412. A
replay of the call will be available through August 2, 2019.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless backhaul
specialist. We help operators and other service providers worldwide
smoothly evolve their networks towards 5G, while increasing
operational efficiency and enhancing end customers' quality of
experience, with innovative wireless backhaul solutions. Our
customers include wireless service providers, public safety
organizations, government agencies and utility companies, that use
our solutions to deliver mission-critical multimedia services and
other applications at high reliability and speed.
Ceragon's unique multicore technology and wireless backhaul
solutions provide highly reliable, 5G high-capacity connectivity
with minimal use of spectrum, power and other resources. Our
solutions enable 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. Ceragon's 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
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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" 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 demand,
revenues, net income, gross margin competitive pressures, order
timing, growth prospects, 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
risk that the results of our accounting close for the 2019 second
quarter will not be as anticipated; 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; risks associated
with any failure to effectively compete with other wireless
equipment providers; the risk that we will be unable to extend our
competitive strengths in India to
other geographic areas because of market differences and other
factors; 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.
Media
Contact:
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Investor
Contact:
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Tanya
Solomon
|
Ran Vered
|
|
Ceragon
Networks
|
Ceragon
Networks
|
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Tel:
+972-3-543-1163
|
Tel.
+972-3-543-1595
|
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tanyas@ceragon.com
|
investor@ceragon.com
|
|
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SOURCE Ceragon Networks Ltd