TEL AVIV, Israel, Oct. 26, 2009 (PRNewswire-FirstCall) -- 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."
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 +1-800-230-1096 or international +1-612-332-0107 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: http://www.ceragon.com/ir_events.asp selecting the webcast link, and following the registration instructions.
If you are unable to join us live, the replay numbers are: USA:+1-800- 475-6701, or international: +1-320-365-3844, Access Code 1167980.
A replay of both the call and the webcast will be available through November 26, 2009.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ and TASE: CRNT) is a leading provider of high capacity wireless backhaul solutions that enable wireless service providers to deliver voice and premium data services, such as Internet browsing, music and video applications. Ceragon's wireless backhaul solutions use microwave technology to transfer large amounts of network traffic between base stations and the infrastructure at the core of the mobile network. Ceragon designs solutions to provide fiber-like connectivity for circuit-switched, or SONET/SDH, networks, next generation Ethernet/Internet Protocol, or IP-based, networks, and hybrid networks that combine circuit-switched and IP-based networks. Ceragon's solutions support all wireless access technologies, including GSM, CDMA, EV-DO and WiMAX. These solutions address wireless service providers' need to cost-effectively build-out and scale their infrastructure to meet the increasing demands placed on their networks by growing numbers of subscribers and the increasing demand for premium data services. Ceragon also provides its solutions to businesses and public institutions that operate their own private communications networks. Ceragon's solutions are deployed by more than 150 service providers of all sizes, as well as in hundreds of private networks, in nearly 100 countries. More information is available at http://www.ceragon.com
Ceragon Networks(R), CeraView(R), FibeAir(R) and the FibeAir(R) design mark are registered trademarks of Ceragon Network s Ltd., and Ceragon(TM), PolyView(TM), ConfigAir(TM), CeraMon(TM), EtherAir(TM), QuickAir(TM), QuickAir Partner Program(TM), QuickAir Partner Certification Program(TM), QuickAir Partner Zone(TM), EncryptAir(TM) and Microwave Fiber(TM) are trademarks of Ceragon Networks Ltd.
This press release may contain statements concerning Ceragon's future prospects that are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. These are important factors that could cause actual results to differ materially from forecasts and estimates. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon's Annual Report on Form 20-F and Ceragon's other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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