Paramus, New Jersey, October 25, 2010 – Ceragon Networks Ltd. (NASDAQ:
CRNT), the provider of high-capacity, LTE/4G-ready wireless backhaul networks, today
reported results for the third quarter which ended September 30, 2010.
Revenues for the third quarter of 2010 reached an all-time high of $62.3 million, up
39% from $44.7 million for the third quarter of 2009 and up 2% from $60.9 million in the
second quarter of 2010.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the third quarter of 2010 was $4.6 million or $0.13 per basic share and diluted
share. Net income in the third quarter of 2009 was $1.1 million, or $0.03 per basic and diluted
share.
On a non-GAAP basis, net income for the third quarter of 2010, excluding $843,000
of equity-based compensation expenses, was $5.5 million, or $0.16 per basic share and $0.15
per diluted share. Non-GAAP net income for the third quarter of 2009 was $1.8 million, or
$0.05 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 2010 was 36.6%. Gross margin
on a non-GAAP basis was 36.7% of revenues.
Cash and cash investments at the end of the quarter were $77.3 million.
“In Q3, we again reported record revenues, higher gross margin and improved
operating margin,” said Ira Palti, President and CEO of Ceragon. “With new security
procedures now in place, business from India is beginning to return to normal. Our book-tobill
ratio in Q3 was about one and, excluding India, it was higher. As a result of strong
demand throughout the world, we now expect to achieve annual revenue growth toward the
upper end of our target range of 30-35% for the full year.”
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Supplemental revenue breakouts:
Geographical breakdown, third quarter of 2010:
EMEA: 23%
North America: 15%
Asia Pacific: 51%
Latin America: 11%
A conference call will follow, beginning at 9:00 a.m. EDT. Investors are invited to
join the Company’s teleconference by calling (800) 230-1092, or international (612) 234-
9960 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:
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: 173717.
A replay of both the call and the webcast will be available through November 25,
2010.
