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On May 1, 2009,
(CRNT - Get Report)
reported that its Q1 FY09 earnings plunged 95.0% on lower revenue and higher operating expenses. Net income for the quarter stood at $215,000 or $0.01 per share compared to $4.27 million or $0.11 per share in the prior year's quarter. On a non-GAAP basis, net income declined to $1.00 million or $0.03 per share. The latest quarterly results matched the most recent consensus estimate.
Total revenue dropped 6.9% to $43.90 million from $47.18 million a year ago. Geographically, both Asia-Pacific and Europe contributed 31.0% of the total revenue, while North America and Latin America contributed 19.0% each to the total revenue.
Gross profit margin narrowed 145 basis points to 33.87% from 35.32%, despite a 4.9% decline in cost of revenues to $29.03 million from $30.52 million in Q1 FY08. Total operating expenses increased 13.0% to $14.93 million from $13.21 million, as research and development expenses, selling and marketing expenses, and general and administrative expenses increased 5.2%, 13.3% and 39.6%, respectively.
Ceragon Networks received follow-on orders for its advanced FibeAir all-indoor trunk solution from a mobile operator in one of Indochina's markets. Recently, the company secured a new order from a North American wireless communications carrier for its wireless Ethernet solutions.
Going forward, the company remains cautious about the near term outlook due to poor visibility, lengthening sales cycles and customers' continuing focus on retaining cash.