Ceragon Networks Reports Second Quarter 2009 Financial Results
TEL AVIV, Israel, July 20, 2009 - Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a leading provider of LTE-ready high-capacity Ethernet and TDM wireless backhaul solutions, today reported results for the second quarter which ended June 30, 2009.
Revenues for the second quarter of 2009 were $42.2 million, down 24% from $55.2 million for the second quarter of 2008 and 4% from $43.9 million in the first quarter of 2009.
Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the second quarter of 2009 was $0.2 million or $0.01 per basic share and diluted share, compared to net income of $15.5 million in the second quarter of 2008, or $0.42 per basic share and $0.40 per diluted share.
On a non-GAAP basis, net income for the second quarter, excluding $805,000 of equity-based compensation expenses, was $1.04 million, or $0.03 per basic and diluted share. Non-GAAP net income for the second quarter of 2008 was $4.9 million, or $0.13 per basic and diluted share. (Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP).
Gross margin on a GAAP basis in the second quarter of 2009 was 32% of revenues. Gross margin on a non-GAAP basis in the second quarter of 2009 was 32.1% of revenues.
Cash and cash investments at the end of the quarter were $96 million.
“Our confidence in the long term outlook for our business is supported by a significant increase in new orders during Q2,” said Ira Palti, President and CEO of Ceragon. “These new orders continue to reflect improving demand from the expansion of GSM networks in India to accommodate record subscriber growth. Meanwhile, worldwide business conditions remain challenging with long sales cycles as our customers continue to focus on retaining cash. We expect to see gradual improvement during the second half of 2009, led by continued strength from Asia. Longer term, we expect to benefit from improving demand in all regions, particularly for solutions that support the migration of cellular networks to IP-based architecture to accommodate the explosion of mobile data usage.”
Supplemental revenue breakouts:
Second quarter 2009
Asia Pacific 44%
Europe Middle-East and Africa 37%
North America 9%
Latin America 10%
A conference call discussing Ceragon’s results for the second quarter of 2009, business conditions, outlook and guidance, will take place today, July 20, 2009, at 9:00 a.m. (EDT). Investors can join the Company’s teleconference by calling (800) 230-1096 or international (612) 332-0107 at 8:50 a.m. EDT.
Investors are also invited to listen to the call live via the Internet by accessing Ceragon Networks’ website at the investors’ page: http://www.ceragon.com/ir_events.asp 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) (320) 365-3844, Access Code: 105440.
A replay of both the call and the webcast will be available through August 20, 2009.
About Ceragon Networks Ltd
Ceragon Networks Ltd. (NASDAQ and TASE: CRNT) is a leading provider of high capacity wireless backhaul solutions that enable wireless service providers to deliver voice and premium data services, such as Internet browsing, music and video applications. Ceragon’s wireless backhaul solutions use microwave technology to transfer large amounts of network traffic between base stations and the infrastructure at the core of the mobile network. Ceragon designs solutions to provide fiber-like connectivity for circuit-switched, or SONET/SDH, networks, next generation Ethernet/Internet Protocol, or IP-based, networks, and hybrid networks that combine circuit-switched and IP-based networks. Ceragon’s solutions support all wireless access technologies, including GSM, CDMA, EV-DO and WiMAX. These solutions address wireless service providers’ need to cost-effectively build-out and scale their infrastructure to meet the increasing demands placed on their networks by growing numbers of subscribers and the increasing demand for premium data services. Ceragon also provides its solutions to businesses and public institutions that operate their own private communications networks. Ceragon’s solutions are deployed by more than 150 service providers of all sizes, as well as in hundreds of private networks, in nearly 100 countries. More information is available at www.ceragon.com