TEL AVIV, Israel, July 21, 2008 - Ceragon Networks Ltd. (NASDAQ and TASE:
CRNT), a leading provider of high-capacity Ethernet and TDM wireless backhaul solutions,
today reported results for the second quarter which ended June 30, 2008.
Revenues for the second quarter of 2008 were $55.2 million, up 47.9% from $37.3
million for the second quarter of 2007 and 17% from $47.2 million in the first quarter of
2008.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the second quarter of 2008 was $15.5 million or $0.42 per basic share and $0.40
per diluted share, compared to net income of $2.9 million in the second quarter of 2007, or
$0.10 per basic share and $0.09 per diluted share.
Net income in the second quarter of 2008, included a tax benefit of $11.2 million,
reflecting mainly the future benefit of the Company’s net operating losses. As a result of
having established a pattern of profitability, accounting rules required the Company to create
a deferred tax asset in the same amount, which will be utilized over time as taxes on income.
On a non-GAAP basis, net income for the second quarter, excluding $654,000 of
equity-based compensation expenses and a tax benefit of $11.2 million, was $4.9 million, or
$0.13 per basic and diluted share. Non-GAAP net income for the second quarter of 2007 was
$3.3 million, or $0.12 per basic share and $0.11 per diluted share. The growth in non-GAAP
net income in the second quarter of 2008 was 50% when compared to the second quarter of
2007 (please refer to the accompanying financial table for reconciliation of GAAP financial
information to non-GAAP).
Gross margin on a GAAP basis in the second quarter of 2008 was 33.9% of revenues.
Gross margin on a non-GAAP basis in the second quarter of 2008 was 34.0% of revenues.
Cash and cash investments at the end of the quarter were $108 million. During the
second quarter $7.4 million was paid to the Israeli Office of the Chief Scientist ("OCS") to
retire all the debt remaining from the arrangement reached with the OCS in December 2006.
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“The global trends driving our business continue to strengthen,” said Ira Palti,
President and CEO of Ceragon. “Q2 revenues exceeded expectations, setting another new
record. Q2 results reflected the growth in the Asia Pacific region as well as excellent
demand from our OEM customers. Our book-to-bill ratio for the quarter continues to be
above one, which puts us on track to grow more than 35% in 2008. We are also encouraged
by the increasing interest in our IP solutions, which is building faster that we expected. We
are working on numerous opportunities, including both migration to IP and new IP-based
networks.”
A conference call discussing Ceragon’s results for the second quarter of 2008,
business conditions, outlook and guidance, will take place today, July 21, 2008, at 9:00 a.m.
(EDT). Investors can join the Company’s teleconference by calling (800) 230-1059 or
international (612) 332-0107 at 8:50 a.m. EDT.
Investors are also invited to listen to the call live via the Internet by accessing
Ceragon Networks’ website at the investors’ page: https://www.ceragon.com/investors/events
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 931228
.
A replay of both the call and the webcast will be available through August 21, 2008.
