TEL AVIV, Israel, July 20, 2009 - Ceragon Networks Ltd. (NASDAQ and TASE:
CRNT), a leading provider of LTE-ready high-capacity Ethernet and TDM wireless backhaul
solutions, today reported results for the second quarter which ended June 30, 2009.
Revenues for the second quarter of 2009 were $42.2 million, down 24% from $55.2
million for the second quarter of 2008 and 4% from $43.9 million in the first quarter of 2009.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the second quarter of 2009 was $0.2 million or $0.01 per basic share and diluted
share, compared to net income of $15.5 million in the second quarter of 2008, or $0.42 per
basic share and $0.40 per diluted share.
On a non-GAAP basis, net income for the second quarter, excluding $805,000 of
equity-based compensation expenses, was $1.04 million, or $0.03 per basic and diluted share.
Non-GAAP net income for the second quarter of 2008 was $4.9 million, or $0.13 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 second quarter of 2009 was 32% of revenues.
Gross margin on a non-GAAP basis in the second quarter of 2009 was 32.1% of revenues.
Cash and cash investments at the end of the quarter were $96 million.
“Our confidence in the long term outlook for our business is supported by a
significant increase in new orders during Q2,” said Ira Palti, President and CEO of Ceragon.
“These new orders continue to reflect improving demand from the expansion of GSM
networks in India to accommodate record subscriber growth. Meanwhile, worldwide business
conditions remain challenging with long sales cycles as our customers continue to focus on
retaining cash. We expect to see gradual improvement during the second half of 2009, led by
continued strength from Asia. Longer term, we expect to benefit from improving demand in
all regions, particularly for solutions that support the migration of cellular networks to IPbased
architecture to accommodate the explosion of mobile data usage.”
- 2 -
Supplemental revenue breakouts:
Second quarter 2009
Asia Pacific 44%
Europe Middle-East and Africa 37%
North America 9%
Latin America 10%
A conference call discussing Ceragon’s results for the second quarter of 2009,
business conditions, outlook and guidance, will take place today, July 20, 2009, at 9:00 a.m.
(EDT). Investors can join the Company’s teleconference by calling (800) 230-1096 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: (USA) (800) 475-6701 or
(International) (320) 365-3844, Access Code: 105440.
A replay of both the call and the webcast will be available through August 20, 2009.