TEL AVIV, Israel, October 26, 2009 - Ceragon Networks Ltd. (NASDAQ and
TASE: CRNT), a leading provider of high-capacity Ethernet and TDM wireless backhaul
solutions, today reported results for the third quarter which ended September 30, 2009.
Revenues for the third quarter of 2009 were $44.7 million, down 23% from $58.1
million for the third quarter of 2008 and up 6% from $42.2 million in the second quarter of
2009.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the third quarter of 2009 was $1.1 million or $0.03 per basic share and diluted
share, compared to net income of $3.5 million or $0.09 per basic and diluted share in the third
quarter of 2008.
On a non-GAAP basis, net income for the third quarter, excluding $696,000 of
equity-based compensation expenses, was $1.8 million, or $0.05 per basic and diluted share.
Non-GAAP net income for the third quarter of 2008 was $4.2 million, or $0.11 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 third quarter of 2009 was 31.8% of revenues.
Gross margin on a non-GAAP basis in the third quarter of 2009 was 31.9% of revenues.
Cash and cash investments at the end of the quarter were $99.8 million.
“As expected, Q3 reflected the beginning of a trend toward improving revenues,” said
Ira Palti, President and CEO of Ceragon. “Based on strong bookings again in Q3, we expect
revenue growth to continue into next year, driven by ongoing demand for high capacity
backhaul for cellular networks, particularly in the Asia Pacific region. In addition, our
backlog is increasing, as we win more turnkey projects and successfully expand to a wide
variety of new customers.”
- 2 -
Supplemental revenue breakouts:
Geographical breakdown:
Third quarter 2009
Asia Pacific 47%
Europe Middle-East and Africa 39%
North America 10%
Latin America 4%
A conference call discussing Ceragon’s results for the third quarter of 2009, business
conditions, outlook and guidance, will take place today, October 26, 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 1167980.
A replay of both the call and the webcast will be available through November 26,
2009.
