PARAMUS, New Jersey, August 6, 2012 /PRNewswire/ --
Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist today reported results for the second quarter which ended June 30, 2012.
Revenues for the second quarter of 2012 reached $119.1 million, up 8% from $110.4 million for the second quarter of 2011, and up 1% from $117.8 million in the first quarter of 2012.
Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the second quarter of 2012 was $(1.0) million or $(0.03) per basic share and diluted share, compared to net loss of $(17.4) million in the second quarter of 2011, or $(0.48) per basic share and diluted share.On a non-GAAP basis, net income for the second quarter, excluding (a) $1.3 million of equity-based compensation expenses, (b) $0.9 million amortization of intangible assets, (c) $1.6 million inventory step up related to the Nera acquisition and (d) $0.2 million of changes in pre-acquisition indirect tax positions, was $3.0 million, or $0.08 per basic share and diluted share. Non-GAAP net loss for the second quarter of 2011 was $(1.6) million, or $(0.04) per basic share and diluted share (please refer to the accompanying financial tables for reconciliation of GAAP financial information to non-GAAP). Gross margin on a GAAP basis in the second quarter of 2012 was 31.9% of revenues. Gross margin on a non-GAAP basis was 33.8% of revenues. Operating loss on a GAAP basis in the second quarter of 2012 was $(0.2) million. On a non-GAAP basis operating profit was $3.8 million. Cash and cash investments at the end of the quarter were $44.8 million. Negative cash flow from operations in the quarter relates mainly to additional working capital requirements associated with more sales to Tier 1 operators in Latin America and Africa that have longer payment terms and practices. "We continued to grow in Q2, achieving all-time record revenues, better gross margin and improved profitability," said Ira Palti, President and CEO of Ceragon. "Record bookings resulted in a book-to-bill ratio well above one. Our success in securing several large orders from Tier 1 operators expands our working capital needs. We believe this represents a temporary timing issue, which we have addressed by drawing down on our unused credit facilities. "Ceragon has a comprehensive portfolio of solutions with the most advanced technology, we are gaining share in key growth regions, and we are executing very well. Therefore, we expect to be able to continue to grow revenues and improve profitability and cash flow, even in light of growing macro headwinds," concluded Mr. Palti.