TEL AVIV, Israel, February 1, 2010 – Ceragon Networks Ltd. (NASDAQ and
TASE: CRNT), the provider of high-capacity, LTE/4G-ready wireless backhaul networks,
today reported results for the fourth quarter and year which ended December 31, 2009.
Revenues for the fourth quarter of 2009 were $53.4 million, down 6% from $56.8
million for the fourth quarter of 2008 and up 19% from $44.7 million in the third quarter of
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the fourth quarter of 2009 was $2.1 million or $0.06 per basic and diluted share,
compared to net income of $2.7 million in the fourth quarter of 2008, or $0.07 per basic share
and diluted share.
On a non-GAAP basis, net income for the fourth quarter, excluding $1.3 million of
equity-based compensation expenses, was $3.4 million, or $0.10 per basic share and $0.09 per
diluted share. Non-GAAP net income for the fourth quarter of 2008 was $3.3 million, or
$0.09 per basic and diluted share (please refer to the accompanying financial table for
reconciliation of GAAP financial information to non-GAAP).
Revenues for the full year of 2009 were $184.2 million, down 15% from $217.3
million in 2008. Net income on a GAAP basis for 2009 was $3.7 million or $0.11 per basic
share and $0.10 per diluted share. Net income for the year 2008 was $26.0 million or $0.70
per basic share and $0.68 per diluted share including $11.2 million of tax benefit related to
the initial creation of deferred tax asset in the second quarter of 2008.
On a non-GAAP basis, net income for 2009 was $7.3 million, or $0.21 per basic
share and $0.20 per diluted share. Net income for the year 2008 was $17.3 million, or $0.47
per basic share and $0.45 per diluted share.
Gross margin on a GAAP basis in the fourth quarter of 2009 was 34.0% of revenues.
Gross margin on a non-GAAP basis in the fourth quarter of 2009 was 34.1% of revenues.
– 2 –
Cash and cash investments at the end of the quarter were $98.3 million.
“The revenue growth resumed in Q3 and accelerated in Q4,” said Ira Palti, President
and CEO of Ceragon. “We expect this momentum to continue during 2010, driven primarily
by ongoing demand for high capacity backhaul for cellular networks. Geographically, we
expect continued strength in Asia Pacific, augmented by improvement in most other regions.
Increasingly, wireless carriers of all types are expecting backhaul vendors to deliver a
complete network including a host of professional services. We will continue to invest, as we
did in Q4, in more R&D, pre-sales, sales as well as services resources, particularly in North
America, to accommodate the trend toward more turnkey projects. With continued strong
focus on expense control, we expect profits to grow more rapidly than revenues, with a target
of 30-35% revenue growth for 2010 over 2009.”
Supplemental revenue breakouts:
Geographical breakdown, fourth quarter of 2009:
North America: 23%
Asia Pacific: 27%
Latin America: 5%
A conference call discussing Ceragon’s results for the fourth quarter of 2009, will
take place today, February 1 2010, at 9:00 a.m. (ET). Investors are invited to join the
Company’s teleconference by calling (800) 230-1096 or international (612) 332-0226 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 140552.
A replay of both the call and the webcast will be available through March 1, 2010.