Ceragon's Earnings Dwindle

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On Feb. 4, 2009, Ceragon Networks ( CRNT) reported that its Q4 FY08 earnings declined 38.2%, due to higher costs and expenses. Net income slipped to $2.74 million or $0.07 per share from $4.43 million or $0.12 per share in Q4 FY07. Excluding $594,000 of equity-based compensation expenses, net income dropped to $3.33 million or $0.09 per share from $4.91 million or $0.14 per share a year ago. The latest quarterly results missed the consensus estimate of $0.11 per share.

Revenue soared 23.0% to $56.78 million from $46.15 million a year ago, led by a strong demand in the Asia-Pacific region. Service providers contributed 88.0% of the total revenue, while the remaining 12.0% was from the Private networks. Geographically, Asia-Pacific, Europe Middle-East and Africa, North America and Latin America contributed 47.0%, 34.0%, 12.0%, and 7.0%, respectively of the total revenue.

During the quarter under review, Ceragon Networks authorized a $20.00 million share repurchase program. Ceragon signed a long-term equipment supply agreement with Tata Teleservices to provide its edge FibeAir solutions, including the FibeAir IP-10 system. The company also received a $1.50 million order for its trunk solutions, FibeAir 3200 to be deployed in Africa by a leading international carrier. Recently, CRNT announced that it has received follow-on orders for its advanced FibeAir all-indoor trunk solution from a mobile operator in one of Indochina's markets.

During FY08, net income grew 97.8% to $25.98 million or $0.68 per share from $13.14 million or $0.41 per share in FY07. On a non-GAAP basis, net income rose to $17.33 million or $0.45 per share, up 12.9% from $15.34 million or $0.48 per share. Annual revenue increased 34.2% to $217.28 million from $161.89 million in the preceding year.

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