This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ceragon Networks Reports Third Quarter 2011 Financial Results

PARAMUS, New Jersey, November 7, 2011 /PRNewswire/ --

Ceragon Networks Ltd. (NASDAQ: CRNT), the premier wireless backhaul specialist today reported results for the third quarter which ended September 30, 2011.

Revenues for the third quarter of 2011 reached a record of $116.1 million, up 86% from $62.3 million for the third quarter of 2010, and up 5% from $110.4 million in the second quarter of 2011.

Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the third quarter of 2011 was ($6.7) million or ($0.19) per basic share and diluted share, compared to net income of $4.6 million in the third quarter of 2010, or $0.13 per basic share and diluted share.

On a non-GAAP basis, net income for the third quarter, excluding (a) $1.7 million of equity-based compensation expenses, and (b) $5.7 million charges related to the Nera acquisition and integration plan, was $595,000, or $0.02 per basic share and diluted share. Non-GAAP net income for the third quarter of 2010 was $5.5 million, or $0.16 and $0.15 per basic and diluted share, respectively (please refer to the accompanying financial tables for reconciliation of GAAP financial information to non-GAAP).

Gross margin on a GAAP basis in the third quarter of 2011 was 29.7% of revenues, compared to GAAP gross margin of 21.4% in the second quarter of 2011. Gross margin on a non-GAAP basis was 32.3% of revenues, compared to non-GAAP gross margin of 31.9% in the second quarter of 2011.

Operating loss on a GAAP basis in the third quarter of 2011 was ($5.8) million compared to GAAP operating loss of ($16.2) million in the second quarter of 2011. On a non-GAAP basis operating income was $1.6 million, compared to non-GAAP operating loss of ($470,000) in the second quarter of 2011.

Cash and cash investments at the end of the quarter were $45.9 million.

"We are pleased to report another quarter of excellent progress with the integration leading to a sequential increase in revenues,  improved gross margin and profitability," said Ira Palti, President and CEO of Ceragon. "Business remains good with our book-to-bill ratio for the first nine months of 2011 above one," continued Mr. Palti. "We expect to continue growing revenues, probably at a slower pace than originally expected because we cannot ignore the macro economic uncertainty and the issues in India affecting order patterns. Our plan to migrate customers to lower-cost higher functionality and capacity products is proceeding smoothly, and we continue to expect we will reach our gross margin target of the mid-30s by the end of next year.  Given the current level of visibility, we believe targeting a non-GAAP operating margin of 8%-9% by the end of 2012 is realistic."

Supplemental revenue breakouts:

1 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.01 -0.18%
FB $117.66 0.20%
GOOG $691.92 -0.06%
TSLA $233.13 0.35%
YHOO $35.88 -0.36%


Chart of I:DJI
DOW 17,671.67 -79.24 -0.45%
S&P 500 2,052.89 -10.48 -0.51%
NASDAQ 4,738.5050 -24.7190 -0.52%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs