Paramus, New Jersey, August 8, 2011 – Ceragon Networks Ltd. (NASDAQ: CRNT), the premier wireless backhaul specialist today reported results for the second quarter which ended June 30, 2011.
Revenues for the second quarter of 2011 reached $110.4 million, up 81% from $60.9 million for the second quarter of 2010, and up 10% from $100.3 million in the first quarter of 2011.
Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the second quarter of 2011 was ($17.4) million or $(0.48) per basic share and diluted share, compared to net income of $2.6 million in the second quarter of 2010, or $0.07 per basic share and diluted share.
On a non-GAAP basis, net loss for the second quarter, excluding (a) $1.4 million of equity-based compensation expenses, and (b)$14.4 million charges related to the Nera acquisition and integration plan, was ($1.6) million , or $(0.04) per basic share and diluted share. Non-GAAP net income for the second quarter of 2010 was $4.6 million, or $0.13 per basic and diluted share (please refer to the accompanying financial tables for reconciliation of GAAP financial information to non-GAAP).
Gross margin on a GAAP basis in the second quarter of 2011 was 21.4% of revenues. Gross margin on a non-GAAP basis was 31.9% of revenues.
Operating loss on a GAAP basis in the second quarter of 2011 was ($16.2) million. On a non-GAAP basis operating loss was ($470,000).
Cash and cash investments at the end of the quarter were $64.4 million.
“Our plan to move swiftly to create a single global organization is clearly paying off,” said Ira Palti, President and CEO of Ceragon. “The continued progress of the integration is apparent in the second quarter revenues, which exceeded the high end of our guidance, and in our strong bookings that were again above one.
“We are creating company with balanced geographic exposure and a broad customer base with full capabilities to address new opportunities in each region around the world,” continued Mr. Palti.
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Supplemental revenue breakouts:
Geographical breakdown, second quarter of 2011:
North America: 9%
Latin America: 32%
A conference call will follow today, August 8, 2011, 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-served 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: (USA) (800) 475-6701 or international: (320) 365-3844, Access Code: 208325. A replay of both the call and the webcast will be available through September 8, 2011.