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TheStreet Open House

Ceragon Networks Reports Third Quarter 2012 Financial Results

(U.S. dollars in thousands)

(Unaudited)

                                                    September 30,    December 31,
                                                            2012            2011
    ASSETS
 
    CURRENT ASSETS:
    Cash and cash equivalents                            $ 44,351     $ 28,991
    Short-term bank deposits                                  417        7,159
    Marketable securities                                       -        9,665
    Trade receivables, net                                192,616      143,247
    Deferred taxes                                          7,619        8,622
    Other accounts receivable and prepaid
    expenses                                               35,182       37,281
    Inventories                                            58,991       93,465
    Total current assets                                  339,176      328,430
 
    LONG-TERM INVESTMENTS:
    Long-term marketable securities                         3,864        3,716
    Severance pay funds                                     6,738        6,360
    Total long-term investments                            10,602       10,076
 
    OTHER ASSETS:
    Deferred taxes                                          9,884        8,898
    Goodwill and intangible assets, net                    25,186       28,032
    Other long-term receivables                             6,706        5,257
    Total other assets                                     41,776       42,187
 
    PROPERTY AND EQUIPMENT, NET                            32,595       30,465
    Total assets                                        $ 424,149    $ 411,158
    LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
    Short-term loan, including current
    maturities of long term bank loan                    $ 33,232      $ 8,232
    Trade payables                                        101,363       77,395
    Deferred revenues                                      21,889       38,308
    Other accounts payable and accrued expenses            38,811       49,508
    Total current liabilities                             195,295      173,443
    LONG-TERM LIABILITIES
    Long term bank loan, net of current
    maturities                                             20,594       26,768
    Accrued severance pay and pension                      12,315       11,996
    Other long term payables                               37,598       37,900
                                                           70,507       76,664
    SHAREHOLDERS' EQUITY:
    Share capital:
    Ordinary shares                                            97           97
    Additional paid-in capital                            316,890      311,911
    Treasury shares at cost                              (20,091)     (20,091)
    Other comprehensive loss                                (856)        (343)
    Accumulated deficits                                (137,693)    (130,523)
 
    Total shareholders' equity                            158,347      161,051
 
    Total liabilities and shareholders' equity          $ 424,149    $ 411,158

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars, in thousands)

(Unaudited)

                                           Three months ended         Nine months ended
 
                                                September 30,             September 30,
                                         2012             2011      2012            2011
    Cash flow from operating activities:
                                    
    Net loss                         $ (2,674)       $ (6,741)  $ (7,170)      $ (45,487)
    Adjustments to reconcile net 
    loss to net cash used in 
    operating activities:
 
    Depreciation and amortization       3,809           3,744     11,228           9,896
    Stock-based compensation expense    1,403           1,677      4,245           4,533
    Increase in trade and other 
    receivables, net                  (16,393)        (32,624)   (52,856)         (3,490)
    Decrease in inventory, net 
    of write off                        9,833           9,033     33,916          33,026
    Increase (decrease) in trade 
    payables and accrued liabilities    7,124           9,531     17,845         (15,894)
    Increase (decrease) in deferred 
    revenues                           (4,028)            882    (16,419)        (11,883)
    Decrease (increase) in deferred 
    tax asset, net                       (156)              -       (419)             32
    Other adjustments                     183            (689)      (246)          1,706
                                     
    Net cash used in operating 
    activities                         $ (899)      $ (15,187)  $ (9,876)      $ (27,561)
    Cash flow from investing 
    activities:
    Purchase of property and 
    equipment                          (3,845)         (3,722)   (10,213)         (9,751)
    Payment for business 
    acquisition *)                          -               -          -         (42,405)
    Investment in short and 
    long-term bank deposits                 -               -     (1,266)         (7,304)
    Proceeds from short and 
    long-term bank deposits             2,484           1,766      7,920          23,296
    Investment in held-to-maturity 
    marketable securities                   -               -        (64)              -
    Proceeds from maturities of 
    held-to-maturity marketable 
    securities, net                        64           6,000      9,781          10,258
    Net cash provided by (used in) 
    investing activities             $ (1,297)        $ 4,044    $ 6,158       $ (25,906)
 
    Cash flow from financing activities:
    Proceeds from exercise of options     270             376        734           3,956
    Proceeds from bank loans           10,400                     25,000          35,000
    Repayment of bank loans            (2,058)              -     (6,174)              -
    Net cash provided by financing 
    activities                        $ 8,612           $ 376   $ 19,560        $ 38,956
 
    Translation adjustments on cash 
    and cash equivalents                 $ (9)          $ 162     $ (482)         $ (273)
                                     
    Increase (Decrease) in cash and 
    cash equivalents                  $ 6,407       $ (10,605)  $ 15,360       $ (14,784)
    Cash and cash equivalents at 
    the beginning of the period        37,944          33,546     28,991          37,725
    Cash and cash equivalents at 
    the end of the period            $ 44,351        $ 22,941   $ 44,351        $ 22,941
    *) Excluding cash and cash 
    equivalents

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

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