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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
$0.02 per basic share and diluted share. Non-GAAP net income for the third quarter of 2010 was
$5.5 million, or
$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
"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: