SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

Ceragon Networks Reports First Quarter 2017 Financial Results
[May 11, 2017]

Ceragon Networks Reports First Quarter 2017 Financial Results


LITTLE FALLS, New Jersey, May 11, 2017 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist today reported results for the first quarter ended March 31, 2017.

First Quarter 2017 Highlights:

Revenues$76.0 million, up 27.1% from the first quarter of 2016, and down 10.2% from the fourth quarter of 2016. 

Gross margin – 29.3%, compared to 35.6% in the first quarter of 2016 and 32.5% in the fourth quarter of 2016.

Operating income – $2.0 million, compared to operating income of $1.2 million in the first quarter of 2016 and operating income of $8.5 million in the fourth quarter of 2016.

Net loss $(0.1) million or $(0.00) per diluted share. Net loss for the first quarter of 2016 was $(0.4) million, or $(0.01) per diluted share. Net income for the fourth quarter of 2016 was $8.3 million, or $0.10 per diluted share.

Non-GAAP results – gross margin was 30.0%, operating profit was $2.9 million, and net income was $0.9 million, or $0.01 per diluted share. Non-GAAP results exclude adjustments of $1.0 million.  For a reconciliation of GAAP to non-GAAP results, see the attached tables.

Cash and cash equivalents – $36.5 million at March 31, 2017, compared to $36.3 million at December 31, 2016.

"Q1 was in line with expectations and we increased our net cash position to $25 million, using our free cash flow to further reduce our debt," said Ira Palti, president and CEO of Ceragon. "Our book-to-bill ratio was substantially above 1:1 in the first quarter. Our gross margin fluctuates from quarter to quarter, mainly based on geographic mix of revenue. Based on our bookings, funnel of opportunities and assumptions about timing of revenue, we expect our gross margin to improve as the year progresses due to a more favorable revenue mix, and we continue to target substantial growth in net income for 2017 compared to 2016."

Supplemental revenue breakouts:

Geographical breakdown, first quarter of 2017:

  • Europe:                  10%
  • Africa:                      6%
  • North America:       15%
  • Latin America:        14%
  • India:                      36%
  • APAC:                    19%

A conference call to discuss the results will begin at 9:00 a.m. EDT. Investors are invited to join the Company's teleconference by calling USA: (800) 230-1096 or International: +1 (612) 288-0337, from 8:50 a.m. EDT. The call-in lines will be available on a first-come, first-serve basis.

Investors can also listen to the call live via the Internet by accessing Ceragon Networks' website at the investors' page: http://www.ceragon.com/about-us/ceragon/investor-relations, selecting the webcast link, and following the registration instructions.

If you are unable to join us live, the replay numbers are: USA: (800) 475-6701 or International +1 (320) 365-3844 Access Code: 421730. A replay of both the call and the webcast will be available through June 11, 2017.

About Ceragon Networks Ltd.

Ceragon Networks Ltd. (NASDAQ: CRNT) is the world's #1 wireless backhaul specialist. We help operators and other service providers worldwide increase operational efficiency and enhance end customers' quality of experience with innovative wireless backhaul solutions. Our customers include wireless service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 4G, mission-critical multimedia services and other applications at high reliability and speed. Ceragon's unique multicore technology provides highly reliable, high-capacity 4G wireless backhaul with minimal use of spectrum, power and other resources. It enables increased productivity, as well as simple and quick network modernization. We deliver a range of professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 460 service providers, as well as hundreds of private network owners, in more than 130 countries.

Join the discussion:   

https://www.linkedin.com/companies/14470  

https://www.facebook.com/ceragonnetworks/  

https://twitter.com/Ceragon  

https://www.youtube.com/user/CeragonNetworks?feature=mhum  

http://blog.ceragon.com/blog  

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a trademark of Ceragon Networks Ltd., registered in various countries. Other names mentioned are owned by their respective holders.

This press release contains statements concerning Ceragon's future prospects that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management. Examples of forward-looking statements include: projections of revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, growth prospects, product development, financial resources, cost savings and other financial matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks associated with a decline in revenues; the risk of a decrease in the amount of business coming from a certain geographic region, from which a significant portion of Ceragon's business is generated; the risk associated with the a change in Ceragon's gross margin as a result of changes in the geographic mix of revenues; the risk associated with the loss of a single customer or customer group, which represents a significant portion of Ceragon's revenues; the risk associated with Ceragon's failure to effectively compete with other wireless equipment providers; the risk relating to the concentration of Ceragon's business in India, Latin America, Africa, and in developing nations and the political, economic and regulatory risks from doing business in those regions, including  potential currency restrictions; and other risks and uncertainties detailed from time to time in Ceragon's Annual Report on Form 20-F and Ceragon's other filings with the Securities and Exchange Commission that represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.

-tables follow-

 



Ceragon Reports First Quarter 2017 Results


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)




Three months ended




March 31,




2017


2016








Revenues


$       76,021


$       59,834



Cost of revenues


53,717


38,543










Gross profit


22,304


21,291










Operating expenses:







Research and development, net


6,107


5,283



Selling and marketing


9,735


9,857



General and administrative


4,505


4,918










Total operating expenses


$       20,347


$       20,058










Operating income


1,957


1,233



Financial expenses, net


1,598


918










Income before taxes


359


315










Taxes on income


487


751










Net loss


$            128


$            436










Basic and diluted net loss per share


$           0.00


$           0.01



Weighted average number of shares used in
computing basic and diluted net loss per share


77,796,425


77,655,440















 

Ceragon Reports First Quarter 2017 Results 

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in thousands)




March 31,
2017


December 31,
2016

ASSETS


Unaudited


Audited






CURRENT ASSETS:





Cash and cash equivalents


$     36,460


$     36,338

Trade receivables, net


99,539


107,395

Other accounts receivable and prepaid expenses


18,897


17,076

Inventories


50,815


45,647

Total current assets


205,711


206,456






NON-CURRENT ASSETS:





   Deferred taxes, net


1,359


1,344

   Severance pay funds and pension


4,877


4,575

   Property and equipment, net


27,763


27,560

   Intangible assets, net


1,169


1,544

   Other non-current assets


2,969


2,746

Total non-current assets


38,137


37,769

Total assets


$     243,848


$     244,225

LIABILITIES AND SHAREHOLDERS' EQUITY





CURRENT LIABILITIES:





Short term loans, including current maturities of long term loan


$       11,500


$       17,000

Trade payables


71,234


68,408

Deferred revenues


1,638


2,673

Other accounts payable and accrued expenses


23,142


22,425

Total current liabilities


107,514


110,506

LONG-TERM LIABILITIES





Accrued severance pay and pension


9,512


9,198

Other long term liabilities


8,796


8,357

Total long-term liabilities


18,308


17,555

SHAREHOLDERS' EQUITY:





Share capital:





    Ordinary shares


214


214

Additional paid-in capital


409,751


409,320

Treasury shares at cost


(20,091)


(20,091)

Accumulated other comprehensive loss, net of taxes


(6,289)


(7,848)

Accumulated deficit


(265,559)


(265,431)






Total shareholders' equity


118,026


116,164






Total liabilities and shareholders' equity


$     243,848


$     244,225

 

 

Ceragon Reports First Quarter 2017 Results

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars in thousands)

(Unaudited)




Three months ended 



March 31,



2017


2016

Cash flow from operating activities:







Net loss


$   (128)


$   (436)

Adjustments to reconcile net loss to net cash provided
by operating activities:














Depreciation and amortization


2,345


2,308

Stock-based compensation expense


358


411

Decrease in trade and other receivables, net


7,231


34,378

Decrease (increase) in inventory, net of write-off


(4,984)


432

Decrease (increase) in deferred tax asset, net


(15)


233

Increase (decrease) in trade payables and accrued
liabilities


3,997


(20,061)

Decrease in deferred revenues


(1,035)


(4,667)

Other adjustments 


12


110

Net cash provided by operating activities

$  7,781


$  12,708








Cash flow from investing activities:







Purchase of property and equipment ,net


(2,309)


(2,201)

Investment in short-term bank deposits

-


(33)

Net cash used in investing activities


$  (2,309)


$  (2,234)








Cash flow from financing activities:







Repayment of loans from financial institutions

(5,500)


(5,072)

Proceeds from exercise of options

74


-

Net cash used in financing activities


$  (5,426)


$  (5,072)








Translation adjustments on cash and cash equivalents

$        76


$       125








Increase in cash and cash equivalents

$      122


$    5,527








Cash and cash equivalents at the beginning of the period

36,338


36,318








Cash and cash equivalents at the end of the period

$  36,460


$  41,845

 

 

Ceragon Reports First Quarter 2017 Results

 

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands)

(Unaudited)




Three months ended



March 31,



2017


2016








GAAP cost of revenues


$

53,717


$

38,543

Amortization of intangible assets



(303)



(306)

Stock based compensation expenses



(20)



(18)

Changes in pre-acquisition indirect tax positions



(162)



(134)

Non-GAAP cost of revenues


$

53,232


$

38,085

GAAP gross profit


$

22,304


$

21,291

Gross profit adjustments



485



458

Non-GAAP gross profit


$

22,789


$

21,749

GAAP Research and development expenses


$

6,107


$

5,283

Stock based compensation expenses



(78)



(128)

Non-GAAP Research and development expenses


$

6,029


$

5,155

GAAP Sales and Marketing expenses


$

9,735


$

9,857

Amortization of intangible assets



(71)



(99)

Stock based compensation expenses



(78)



(132)

Non-GAAP Sales and Marketing expenses


$

9,586


$

9,626

GAAP General and Administrative expenses


$

4,505


$

4,918

Stock based compensation expenses



(182)



(133)

Non-GAAP General and Administrative expenses


$

4,323


$

4,785

GAAP Financial expenses


$

1,598


$

918

Currency devaluation in Venezuela related expenses



-



907

Non-GAAP Financial expenses


$

1,598


$

1,825

GAAP Tax expenses


$

487


$

751

Non cash tax adjustments



(98)



(246)

Non-GAAP Tax expenses


$

389


$

505

 

Ceragon Reports First Quarter 2017 Results

 

RECONCILIATION BETWEEN REPORTED AND NON-GAAP
RESULTS
(U.S. dollars in thousands, except share and per share data)

(Unaudited)




Three months ended
March 31,











2017



2016








GAAP net loss 


$

(128)


$

(436)

Stock based compensation expenses



358



411

Amortization of intangible assets



374



405

Changes in pre-acquisition indirect tax
positions



162



134

Currency devaluation in Venezuela related
expenses



-



(907)

Non-cash tax adjustments



98



246








Non-GAAP net income (loss) 


$

864


$

(147)




$

(0.00)


$

(0.01)


GAAP basic net loss per share










$

(0.00)


$

(0.01)

GAAP diluted net loss per share



$

0.01


$

(0.00)

Non-GAAP basic and diluted net income
(loss) per share











77,796,425



77,655,440

Weighted average number of shares used in
computing GAAP basic net loss per share











80,512,964



77,656,530

Weighted average number of shares used in
computing GAAP diluted net loss per share











80,751,956



77,742,773

Weighted average number of shares used in
computing Non-GAAP diluted net income (loss) per share

       

Investors:
Doron Arazi     or                     Claudia Gatlin
+972-3-5431-660                     +1-212-830-9080
dorona@ceragon.com              claudiag@ceragon.com

Media:
Tanya Solomon
+972 3 5431163
tanyas@ceragon.com

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ceragon-networks-reports-first-quarter-2017-financial-results-300455982.html

SOURCE Ceragon Networks Ltd


[ Back To TMCnet.com's Homepage ]






Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2017 Technology Marketing Corporation. All rights reserved | Privacy Policy