Ceragon Networks Reports Second Quarter 2018 Financial Results

Ceragon Networks Reports Second Quarter 2018 Financial Results

PR Newswire

LITTLE FALLS, New Jersey, Aug. 6, 2018 /PRNewswire/ -- Ceragon Networks Ltd. CRNT, the #1 wireless backhaul specialist today reported results for the second quarter which ended June 30, 2018.

Second Quarter 2018 Highlights:

Revenues - $88.3 million, down 5.4% from the second quarter of 2017, and up 6.1% from the first quarter of 2018.

Gross margin – 32.5%, compared to 31.3% in the second quarter of 2017 and 33.1% in the first quarter of 2018.

Operating income - $6.4 million, compared to $8.0 million in the second quarter of 2017, and $5.4 million in the first quarter of 2018.

Net income - $3.2 million, or $0.04 per diluted share for the second quarter of 2018, compared to 5.0 million, or $0.06 per diluted share, in the second quarter of 2017. Net income for the first quarter of 2018 was $2.1 million, or $0.03 per diluted share.

Non-GAAP results – Gross margin was 32.6%, operating income was $7.1 million, and net income was $3.8 million, or $0.05 per diluted share. For reconciliation of GAAP to non-GAAP results, see the attached tables.

Cash and cash equivalents - $29.4 million at June 30, 2018, compared to $26.0 million at March 31, 2018.

"The second quarter contributed to a strong first half and was in line with our expectations," said Ira Palti, president and CEO of Ceragon. "Our bookings in Q2 continue to support our target quarterly revenue run rate of $80 to $85 million during the second half, and we continue to target an increase in net income for the year. We are increasingly optimistic about the longer-term outlook as we work with operators to plan and implement projects to upgrade, densify and optimize their networks on the road to full 5G deployments during the next several years."

Supplemental geographical breakdown of revenue for the second quarter of 2018:

·         Europe:

11%

·         Africa:

4%

·         North America:

10%

·         Latin America:

17%

·         India:

47%

·         APAC:           

11%

A conference call to discuss the results will begin at 9:00 a.m. EDT. Investors are invited to join the Company's teleconference by calling USA: (800) 230-1059 or International: +1 (612) 288-0340, from 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://www.ceragon.com/about-us/ceragon/investor-relations, 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 +1 (320) 365-3844 Access Code: 451294. A replay of both the call and the webcast will be available through September 6, 2018.

About Ceragon Networks Ltd.

Ceragon Networks Ltd. CRNT is the world's #1 wireless backhaul specialist. We help operators and other service providers worldwide increase operational efficiency and enhance end customers' quality of experience with innovative wireless backhaul solutions. Our customers include wireless service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 4G, mission-critical multimedia services and other applications at high reliability and speed. Ceragon's unique multicore technology provides a highly reliable, high-capacity 4G wireless backhaul with minimal use of spectrum, power and other resources. It enables increased productivity, as well as simple and quick network modernization. We deliver a range of professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 460 service providers, as well as hundreds of private network owners, in more than 130 countries.

Join the Discussion

LinkedInFacebookTwitterYouTube, Backhaul forum

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a trademark of Ceragon Networks Ltd., registered in various countries. Other names mentioned are owned by their respective holders.

This press release contains statements concerning Ceragon's future prospects that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management. Examples of forward-looking statements include: projections of revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, growth prospects, product development, financial resources, cost savings and other financial matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks associated with a decline in revenues due to our focus on a single market segment; risks relating to the concentration of Ceragon's business in certain geographic regions such as India, and in other developing nations; political, economic and regulatory risks from doing business in those developing regions, including potential currency restrictions and fluctuations; risks related to our ability to meet the demand for our products due shortages in raw materials including certain passive components; risks associated with a change in Ceragon's gross margin as a result of changes in the geographic mix of revenues and/or as a results of increase in costs of raw material, including certain passive components; risks associated with the loss of a single customer or customer group, which represents a significant portion of Ceragon's revenues; risks associated with Ceragon's failure to effectively compete with other wireless equipment providers; and other risks and uncertainties detailed from time to time in Ceragon's Annual Report on Form 20-F and Ceragon's other filings with the Securities and Exchange Commission that represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.

-tables follow-

 

 

 

Ceragon Reports Second Quarter 2018 Results



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

(Unaudited)







Three months ended



Six months ended





June 30,



June 30,





2018



2017



2018



2017



















Revenues



$     88,328



$     93,334



$     171,603



$     169,355

Cost of revenues



59,579



64,131



115,250



117,848



















Gross profit



28,749



29,203



56,353



51,507



















Operating expenses:

















Research and development



6,821



6,128



14,035



12,235

   Selling and marketing



10,369



10,041



20,931



19,776

   General and administrative



5,190



5,065



9,649



9,570



















Total operating expenses



$     22,380



$    21,234



$      44,615



$      41,581



















Operating income



6,369



7,969



11,738



9,926



















Financial expenses, net



2,646



1,481



4,680



3,079



















Income before taxes



3,723



6,488



7,058



6,847



















Taxes on income



497



1,506



1,762



1,993



















Net income



$       3,226



$       4,982



$        5,296



$        4,854



















Basic net income per share



$         0.04



$         0.06



$          0.07



$          0.06

Diluted net income per share



$         0.04



$         0.06



$          0.07



$          0.06



















Weighed average number of shares used in

computing basic net income per share



78,231,726



77,891,218



78,155,810



77,845,690



















Weighed average number of shares used in

computing diluted net income per share



80,850,353



80,202,048



80,457,636



80,359,375

 

 

 

Ceragon Reports Second Quarter 2018 Results



CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)







June 30,



December 31,





2018



2017

ASSETS



    Unaudited



    Audited   

CURRENT ASSETS:









Cash and cash equivalents



$        29,398



$       25,877

Trade receivables, net



118,545



113,719

Other accounts receivable and prepaid expenses



10,512



17,052

Inventories



46,040



54,164

Total current assets



204,495



210,812











NON-CURRENT ASSETS:









   Long-term bank deposits



996



996

   Deferred tax assets



529



988

   Severance pay and pension fund



5,115



5,459

   Property and equipment, net



30,055



29,870

    Intangible assets, net



2,810



2,199

  Other non-current assets



3,212



3,269

Total non-current assets



42,717



42,781

Total assets



$    247,212



$      253,593

LIABILITIES AND SHAREHOLDERS EQUITY









CURRENT LIABILITIES:









Trade payables



$      63,614



$       75,476

Deferred revenues



6,357



5,193

Other accounts payable and accrued expenses



25,390



24,781

Total current liabilities



95,361



105,450











LONG-TERM LIABILITIES:









Deferred tax liability



92



141

Accrued severance pay and pension



9,555



10,085

Other long term payables



3,730



4,019

Total long-term liabilities



13,377



14,245











SHAREHOLDERS' EQUITY:









Share capital:









Ordinary shares



214



214

     Additional paid-in capital



412,223



410,817

Treasury shares at cost



(20,091)



(20,091)

Other comprehensive loss



(9,367)



(7,171)

Accumulated deficits



(244,505)



(249,871)

Total shareholders' equity



138,474



133,898











Total liabilities and shareholders' equity



$    247,212



$       253,593

 

 

 

Ceragon Reports Second Quarter 2018 Results 



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars, in thousands)

(Unaudited)





Three months ended

June 30,



Six months ended

June 30,



2018



2017



2018



2017

Cash flow from operating activities:















Net income

$          3,226



$       4,982



$        5,296



$        4,854

Adjustments to reconcile net income to net

cash provided by operating activities:































Depreciation and amortization

1,990



2,229



3,501



4,574

Stock-based compensation expense

679



261



1,032



619

Increase in trade and other receivables, net

(292)



(16,519)



(109)



(9,288)

    Decrease (increase) in inventory, net of















write off

2,561



(5,571)



7,049



(10,555)

    Decrease (increase) in deferred tax asset,















net

(64)



155



410



140

    Increase (decrease) in trade payables and















 accrued liabilities

(4,383)



14,778



(10,237)



18,775

Increase in deferred revenues

856



2,053



1,796



1,018

Other adjustments

(394)



(100)



(186)



(88)

Net cash provided by operating activities

$          4,179



$      2,268



$         8,552



$       10,049

 

 

Cash flow from investing activities:















Purchase of property and equipment, net

(658)



(1,196)



(3,957)



(3,505)

Purchase of intangible assets, net

(250)



-



(1,336)



-

Net cash used in investing activities

$           (908)



$     (1,196)



$        (5,293)



$        (3,505)

















Cash flow from financing activities:















Proceeds from share options exercise

274



115



374



189

Repayment of bank loans

-



(3,500)



-



(9,000)

Net cash provided by (used in) financing activities

$             274



$     (3,385)



$            374



$       (8,811)

















Translation adjustments on cash and cash equivalents

$            (103)



$          (60)



 

$          (112)



 

$              16

Increase (decrease) in cash and cash equivalents

$           3,442



$     (2,373)



$         3,521



$       (2,251)

Cash and cash equivalents at the beginning of the period

25,956



36,460



25,877



36,338

Cash and cash equivalents at the end of the period

$         29,398



$     34,087



$       29,398



$       34,087

















 

 

 

Ceragon Reports Second Quarter 2018 Results 



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars, in thousands)

(Unaudited)





Three months ended

June 30,



Six months ended

June 30,



2018



2017



2018



2017

GAAP cost of revenues

$          59,579



$        64,131



$          115,250



$        117,848

Amortization of intangible assets

-



(306)



-



(609)

Stock based compensation expenses

(1)



(12)



(18)



(32)

Changes in pre-acquisition indirect tax positions

(12)



(165)



(27)



(327)

Non GAAP cost of revenues

$         59, 566



$        63,648



$          115,205



$        116,880

































GAAP gross profit

$          28,749



$         29,203



$            56,353



$          51,507

Gross profit adjustments

13



483



45



968

Non-GAAP gross profit

$          28,762



$         29,686



$            56,398



$          52,475

































GAAP Research and development expenses

$            6,821



$           6,128



$            14,035



$          12,235

Stock based compensation expenses

(67)



(45)



(127)



(123)

Non GAAP Research and development expenses

$            6,754



$           6,083



$            13,908



$          12,112

































GAAP Sales and Marketing expenses

$          10,369



$         10,041



$            20,931



$          19,776

Amortization of intangible assets

-



(74)



-



(145)

Stock based compensation expenses

(142)



(75)



(286)



(153)

Non-GAAP Sales and Marketing expenses

$          10,227



$          9, 892



$            20,645



$          19,478

































GAAP General and Administrative expenses

$            5,190



$           5,065



$              9,649



$            9,570

Stock based compensation expenses

(469)



(129)



(601)



(311)

Non-GAAP General and Administrative expenses

$            4,721



$           4,936



$              9,048



$            9,259

































GAAP Tax expenses

$               497



$           1,506



$              1,762



$            1,993

Non cash tax adjustments

96



(187)



(468)



(285)

Non-GAAP Tax expenses

$               593



$           1,319



$              1,294



$            1,708

 

 

 

Ceragon Reports Second Quarter 2018 Results 



RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(U.S. dollars, in thousands)

(Unaudited)





Three months ended

June 30,



Six months ended

June 30,



2018



2017



2018



2017

GAAP net income

$            3,226



$             4,982



$              5,296



$             4,854

Amortization of intangible assets

-



380



-



754

Stock based compensation expenses

679



261



1,032



619

Changes in pre-acquisition indirect tax positions

12



165



27



327

Non-cash tax adjustments

(96)



187



468



285

Non-GAAP net income

$            3,821



$             5,975



$              6,823



$             6,839

GAAP basic net income per share

$              0.04



$               0.06



$                0.07



$               0.06

GAAP diluted net income per share

$              0.04



$               0.06



$                0.07



$               0.06

Non-GAAP basic and diluted net income per share

$              0.05



$               0.07



$                0.08



$               0.08

Weighed average number of shares used in computing















GAAP basic net income per share

78,231,726



77,891,218



78,155,810



77,845,690

Weighed average number of shares used in computing















GAAP diluted net income per share

80,850,353



80,202,048



80,457,636



80,359,375

Weighed average number of shares used in computing















Non-GAAP diluted net income per share

81,156,546



80,404,841



80,767,046



80,580,267

 

 

 

Investors:

Doron Arazi

+972-3-5431-660

dorona@ceragon.com



or

Claudia Gatlin

+1-212-830-9080

claudiag@ceragon.com  

Media:

Tanya Solomon

+972-3-5431163

tanyas@ceragon.com

 

Cision View original content:http://www.prnewswire.com/news-releases/ceragon-networks-reports-second-quarter-2018-financial-results-300692248.html

SOURCE Ceragon Networks Ltd

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress ReleasesConference Call Announcements
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!