TEL AVIV, Israel, April 26, 2010 – Ceragon Networks Ltd. (NASDAQ and TASE:
CRNT), the provider of high-capacity, LTE/4G-ready wireless backhaul networks, today
reported results for the first quarter which ended March 31, 2010.
Revenues for the first quarter of 2010 reached an all-time high of $59.7 million, up
36% from $43.9 million for the first quarter of 2009 and up 12% from $53.4 million in the
fourth quarter of 2009.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the first quarter of 2010 was $3.0 million or $0.09 per basic share and $0.08 per
diluted share, compared to net income of $0.2 million in the first quarter of 2009, or $0.01 per
basic and diluted share.
On a non-GAAP basis, net income for the first quarter, excluding $971,000 of equitybased
compensation expenses, was $4.0 million, or $0.12 per basic share and $0.11 per
diluted share. Non-GAAP net income for the first quarter of 2009 was $1.0 million, or $0.03
per basic and diluted share (please refer to the accompanying financial table for reconciliation
of GAAP financial information to non-GAAP).
Gross margin on a GAAP basis in the first quarter of 2010 was 34.1% of revenues.
Gross margin on a non-GAAP basis was 34.2 % of revenues.
Cash and cash investments at the end of the quarter were $98.9 million.
“The year is off to a very strong start in part because we were able to recognize
revenue from some turnkey projects earlier than originally expected,” said Ira Palti, President
and CEO of Ceragon. “As wireless operators move forward with 4G/LTE plans in response to
accelerating growth in demand for data, they remain focused on flexible solutions that
accommodate the requirements of both current and future networks. As a result, the overall
business outlook continues to be positive and we remain confident in our target of 30-35%
revenue growth for the year, with profits growing at a higher rate than revenues.”
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Supplemental revenue breakouts:
Geographical breakdown, first quarter of 2010:
North America: 21%
Asia Pacific: 53%
Latin America: 3%
A conference call discussing Ceragon’s results for the first quarter of 2010, will take
place today, April 26 2010, at 9:00 a.m. (ET). Investors are invited to join the Company’s
teleconference by calling (800) 230-1092, or international: (651) 291-0561at 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://ceragon.com/ir_events.asp?lang=0
selecting the webcast link, and following the registration instructions.
If you are unable to join us live, the replay numbers are: (800) 475-6701 or
International: (320) 365-3844, Access Code: 152070.
A replay of both the call and the webcast will be available through May 26, 2010.