Paramus, New Jersey, July 26, 2010 – Ceragon Networks Ltd. (NASDAQ: CRNT),
the provider of high-capacity, LTE/4G-ready wireless backhaul networks, today reported
results for the second quarter which ended June 30, 2010.
Revenues for the second quarter of 2010 reached an all-time high of $60.9 million, up
44% from $42.2 million for the second quarter of 2009 and up 2% from $59.7 million in the
first quarter of 2010.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the second quarter of 2010 was $2.6 million or $0.07 per basic share and diluted
share, including a one-time expense of $1.15 million to acquire technology for further
development. Net income in the second quarter of 2009 was $0.2 million, or $0.01 per basic
and diluted share.
On a non-GAAP basis, net income for the first quarter, excluding $852,000 of equitybased
compensation expenses and the $1.15 million one-time expense for technology, was
$4.6 million, or $0.13 per basic and diluted share. Non-GAAP net income for the second
quarter of 2009 was $1.04 million, or $0.03 per basic and diluted share (please refer to the
accompanying financial table for reconciliation of GAAP financial information to non-
Gross margin on a GAAP basis in the second quarter of 2010 was 35.3%. Gross
margin on a non-GAAP basis was 35.4% of revenues.
Cash and cash investments at the end of the quarter were $94.9 million.
“We had an excellent second quarter with record revenues, higher gross margin, and
improved operating margin,” said Ira Palti, President and CEO of Ceragon. “Global demand
remains very strong. Outside of India, where orders are being delayed pending a securityrelated
process being implemented by the government, our book-to-bill was above one.We
expect revenues in the third and fourth quarters to be similar to the second quarter. For the
– 2 –
full year, we continue to target revenue growth in the range of 30-35%, with profits growing
at a higher rate than revenue.”
Supplemental revenue breakouts:
Geographical breakdown, second quarter of 2010:
North America: 16%
Asia Pacific: 53%
Latin America: 6%
A conference call will follow, beginning at 9:00 a.m. EDT. Investors are invited to
join the Company’s teleconference by calling (800) 230-1059 or international (612) 234-9959
at 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) 475-6701or
international (320) 365-3844, Access Code 162768.
A replay of both the call and the webcast will be available through August 26, 2010.