Breaking News

Tweet TWEET

Ceragon Networks Reports Second Quarter 2013 Financial Results

        Ceragon Networks Reports Second Quarter 2013 Financial Results

Booking increased on expanding penetration of large operators

PR Newswire

PARAMUS, N.J., Aug. 12, 2013

PARAMUS,N.J., Aug. 12, 2013 /PRNewswire/ --Ceragon Networks Ltd. (NASDAQ:
CRNT), the #1 wireless backhaul specialist today reported results for the
second quarter which ended June 30, 2013.

Revenues for the second quarter of 2013 were $90.1 million, down 20% from
$112.7 million for the second quarter of 2012, and about the same as revenues
in the first quarter of 2013.

Net loss in accordance with US Generally Accepted Accounting Principles (GAAP)
for the second quarter of 2013 was $(7.5) million or $(0.20) per basic share
and diluted share, compared to a net loss of $(2.9) million in the second
quarter of 2012, or $(0.08) per basic share and diluted share.

On a non-GAAP basis, net loss for the second quarter, excluding (a) $1.0
million of equity-based compensation expenses, (b) $0.6 million amortization
of intangible assets, and (c) $0.2 million of changes in pre-acquisition
indirect tax positions, was $(5.7) million, or $(0.15) per basic share and
diluted share. Non-GAAP net income for the second quarter of 2012 was $0.2
million, or $0.01 per basic share and diluted share (Please refer to the
accompanying financial tables for reconciliation of GAAP financial information
to non-GAAP).

Gross margin on a GAAP basis in the second quarter of 2013 was 31.7% of
revenues. Gross margin on a non-GAAP basis was 32.4% of revenues.

Operating loss on a GAAP basis in the second quarter of 2013 was $(4.6)
million. On a non-GAAP basis operating loss was $(2.8) million.

Cash and cash investments at the end of the quarter were $49.1 million.

"We see signs of improvement in the business environment and our bookings
increased significantly in the second quarter, as expected," said Ira Palti,
President and CEO of Ceragon. "We are particularly pleased with our expanding
penetration of large carriers, mainly in Latin America and Africa.

"Our new products continue to garner early wins, and we are receiving
excellent feedback on our roadmap from customers anticipating very high
bandwidth requirements and the upcoming network architecture transition." 

Geographical breakdown, second quarter of 2013:

  oEurope: 17%
  oAfrica: 34%
  oNorth America: 7%
  oLatin America: 28%
  oIndia: 3%
  oAPAC: 11%

A conference call will follow beginning 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) 332-0107 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/index.php?option=com_k2&view=itemlist&layout=category&task=category&id=48&Itemid=314&lang=en
selecting the webcast link, and following the registration instructions.

If you are unable to join us live, the replay numbers are: Telephone: (USA)
(800) 475-6701 (International) +1 320-365-3844, Access Code: 297410. A
replay of both the call and the webcast will be available through September
12, 2013.

About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless backhaul specialist.
We provide innovative, flexible and cost-effective wireless backhaul and
fronthaul solutions that enable mobile operators and other wired/wireless
service providers to deliver 2G/3G, 4G/LTE and other broadband services to
their subscribers. Ceragon's high-capacity, solutions use microwave
technology to transfer voice and data traffic while maximizing bandwidth
efficiency, to deliver more capacity over longer distances under any
deployment scenario. Based on our extensive global experience, Ceragon
delivers turnkey solutions that support service provider profitability at
every stage of the network lifecycle enabling faster time to revenue,
cost-effective operation and simple migration to all-IP networks. As the
demand for data pushes the need for ever-increasing capacity, Ceragon is
committed to serve the market with unmatched technology and innovation,
ensuring effective solutions for the evolving needs of the marketplace. Our
solutions are deployed by more than 430 service providers in over 130
countries.

Join the discussion:

LinkedIn: http://www.linkedin.com/company/14470
Facebook: https://www.facebook.com/ceragonnetworks
Twitter: https://twitter.com/Ceragon
Youtube: http://www.youtube.com/user/CeragonNetworks?featur
Backhaul Forum: http://www.backhaulforum.com/ 

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

Company & Investor Contact:   Media Contact:            Media Contact:

Yoel Knoll                    Abigail Levy-Gurwitz      Justine Schneider

Ceragon Networks Ltd.         Ceragon Networks Ltd.     Calysto Communications

Tel: +1-(201)-853-0228        Tel: +1-(201)-853-0271    (404)-266-2060 x507

Office (Int'l): +972 (0)3     (Int'l): +972 (0)3 5431   jschneider@calysto.com
5431 132                      166
                                                        
yoelk@ceragon.com             abigaill@ceragon.com

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. Some of the factors that could significantly impact
the forward-looking statements in this press release include the risk of
significant expenses in connection with potential contingent tax liability
associated with Nera's prior operations or facilities, risks associated with
unexpected changes in customer demand, risks associated with increased working
capital needs, and other risks and uncertainties, which 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. Ceragon's public filings are available from the Securities and Exchange
Commission's website at www.sec.gov or may be obtained on Ceragon's website
at www.ceragon.com 



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,
                        2013           2012           2013         2012
Revenues                $   90,084   $   112,669  $          $  
                                                      180,181      222,715
Cost of revenues        61,545         76,756         124,182      153,993
Gross profit            28,539         35,913         55,999       68,722
Operating expenses:
Research and            10,582         11,900         22,488       24,055
development
Selling and marketing   16,808         19,953         34,341       39,587
General and             5,764          6,163          12,479       13,378
administrative
Total operating         $  33,154    $  38,016    $  69,308  $  77,020
expenses
Operating loss          4,615          2,103          13,309       8,298
Financial expenses,     2,247          554            6,876        1,460
net
Loss before taxes       6,862          2,657          20,185       9,758
Taxes on income         658            245            1,476        535
Net loss                $    7,520  $   2,902    $          $  
                                                      21,661      10,293
Basic and diluted net   $  0.20      $  0.08      $   0.59   $   0.28
loss per share
Weighted average                                                
number of shares
used in computing                                          
basic and
diluted net loss   36,806,059     36,421,106     36,673,228   36,354,389
per share



CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited)
                                             June 30,
                                                             December 31, 2012
                                             2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                    $  44,908     $  47,099
Short-term bank deposits                     321             422
Trade receivables, net                       122,641         149,120
Deferred taxes                               5,781           8,589
Other accounts receivable and prepaid        37,757          38,743
expenses
Inventories                                  57,663          65,554
Total current assets                         269,071         309,527
NON-CURRENT ASSETS:
Marketable securities                        3,833           4,068
Deferred tax assets, net                11,097          9,140
Severance pay and pension fund          7,270           7,163
Property and equipment, net             34,974          33,642
Intangible assets, net                       8,509           9,809
Goodwill                                     15,112          15,283
Other non-current assets               5,477           4,964
                                             86,272          84,069
                                             $   355,343  $   393,596


LIABILITIES AND SHAREHOLDERS' EQUITY


CURRENT LIABILITIES:
Short term loan, including current           $  39,922     $  25,232
maturities of long term bank loan
Trade payables                               79,628          102,079
Deferred revenues                            12,184          16,719
Other accounts payable and accrued expenses  36,651          36,090
Total current liabilities                    168,385         180,120


LONG-TERM LIABILITIES
Long term bank loan, net of current          14,420          18,536
maturities
Accrued severance pay and pension            12,198          12,311
Other long term payables                     36,033          38,920
                                             62,651          69,767
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares                         98              98
Additional paid-in capital                   321,325         318,106
Treasury shares at cost                      (20,091)        (20,091)
Other comprehensive loss                     (1,450)         (490)
Accumulated deficits                         (175,575)       (153,914)
Total shareholders' equity                   124,307         143,709
Total liabilities and shareholders' equity   $  355,343    $  393,596



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
(Unaudited)
                           Three months ended       Six months ended

                           June 30,                 June 30,
                           2013         2012        2013          2012
Cash flow from operating
activities:
Net loss                   $  (7,520)  $ (2,902)  $  (21,661)  $  (10,293)
Adjustments to reconcile
net income to net
cash used in
operating activities:
Depreciation and           3,733        3,648       7,771         7,419
amortization
Stock-based compensation   998          1,257       2,073         2,842
expense
Decrease (increase) in
trade and other           2,812        (21,705)    26,464        (23,809)
receivables, net
Decrease in inventory      4,539        573         7,402         17,616
Increase (decrease) in
trade payables and accrued (10,248)     8,557       (23,673)      10,331
liabilities
Decrease in deferred       (3,283)      (3,219)     (4,535)       (12,391)
revenues
Decrease (increase) in     365          114         515           (263)
deferred tax asset, net
Other adjustments          (220)        (325)       (321)         (429)
Net cash used in operating $ (8,824)    $ (14,002)  $ (5,965)     $ (8,977)
activities
Cash flow from investing
activities:
Purchase of property and   (4,802)      (3,065)     (7,697)       (6,368)
equipment, net
Investment in short-term   (38)         -           (255)         (1,266)
bank deposit
Proceeds from short-term   336          3,186       336           5,436
bank deposits
Investment in available
for sale marketable       -            (64)        -             (64)
securities
Proceeds from sale of
available for sale        301          -           301           9,717
marketable
securities, net
Net cash provided by (used
in) investing             $ (4,203)   $ 57        $ (7,315)    $ 7,455
activities
Cash flow from financing
activities:
Proceeds from exercise of  8            251         1,145         464
options
Proceeds from bank loans   13,690       14,600      16,690        14,600
Repayment of bank loan     (2,058)      (2,058)     (6,116)       (4,116)
Net cash provided by                                           
financing activities
                           $ 11,640    $ 12,793    $ 11,719     $ 10,948
Translation adjustments on                                     
cash and cash equivalents
                           $ (510)      $ (322)     $ (630)      $ (473)
Increase (decrease) in     $ (1,897)   $ (1,474)  $ (2,191)    $ 8,953
cash and cash equivalents
Cash and cash equivalents
at the beginning of the    46,805       39,418      47,099        28,991
period
Cash and cash equivalents  $ 44,908    $ 37,944   $ 44,908     $ 37,944
at the end of the period



RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
                     Three months ended June 30,
                     2013                                         2012
                     GAAP (as        Adjustments     Non-GAAP     Non-GAAP
                     reported)
Revenues             $  90,084                      $  90,084   $  112,669
Cost of revenues     61,545          (a) 605        60,940       75,385
Gross profit         28,539                          29,144       37,284
Operating
expenses:
Research and         10,582          (b) 337    10,245       11,293
development
Selling and          16,808          (c) 655        16,153       18,841
marketing
General and          5,764           (d) 249        5,515        6,116
administrative
Total operating      $  33,154                      $  31,913   $  36,250
expenses
Operating profit     (4,615)                         (2,769)      1,034
(loss)
Financial            2,247                           2,247        554
expenses, net
Income (loss)        (6,862)                         (5,016)      480
before taxes
Taxes on income      658                             658          245
Net income (loss)    $  (7,520)                     $  (5,674)  $  235
Basic net earnings   $   (0.20)                    $          $   0.01
(loss) per share                                     (0.15)
Diluted net                                          $  
earnings (loss)      $   (0.20)                    (0.15)       $   0.01
per share
Weighted average
number of shares
used in
computing basic      36,806,059                      36,806,059   36,421,106
net
earnings
(loss) per share
Weighted average
number of shares
used in
computing diluted    36,806,059                      36,806,059   37,380,275
net
earnings
(loss) per share
Total adjustments                    1,846
(a) Cost of revenues includes $0.3 million of amortization of intangible
assets, $0.1 million of stock based compensation expenses and $0.2 million of
changes in pre-acquisition indirect tax positions in the three months ended
June 30, 2013.

(b) Research and development expenses include $0.3 million of stock based
compensation expenses in the three months ended June 30, 2013.

(c) Selling and marketing expenses include $0.3 million of amortization of
intangible assets and $0.4 million of stock based compensation expenses in the
three months ended  June 30, 2013.

(d) General and administrative expenses include $0.2 million of stock based
compensation expenses in the three months ended June 30, 2013.



RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
                     Six months ended June 30,
                     2013                                         2012
                     GAAP (as       Adjustments    Non-GAAP       Non-GAAP
                     reported)
Revenues             $  180,181                   $  180,181    $  222,715
Cost of revenues     124,182        (a) 1,900     122,282        150,325
Gross profit         55,999                        57,899         72,390
Operating
expenses:
Research and         22,488         (b)           20,628         23,024
development                         1,860
Selling and          34,341         (c) 2,078     32,263         36,860
marketing
General and          12,479         (d) 1,316     11,163         12,479
administrative
Total operating      $ 69,308                     $ 64,054      $ 72,363
expenses
Operating profit     (13,309)                      (6,155)        27
(loss)
Financial            6,876          (e) 3,133    3,743          1,460
expenses, net
Loss before taxes    20,185                        9,898          1,433
Taxes on income      1,476                         1,476          535
Net loss             $  21,661                    $  11,374     $  1,968


                    $   0.59                    $   0.31     $   0.05

Basic and diluted
net loss per share
Weighted average
number of
shares used     36,673,228                    36,673,228     36,354,389
in computing basic
and diluted
net loss per share
Total adjustments                   10,287
(a) Cost of revenues includes $0.6 million of amortization of intangible
assets, $0.5 million of inventory step-up, $0.1 million of stock based
compensation expenses, $0.2 million of integration plan related costs and $0.5
million of changes in pre-acquisition indirect tax positions in the six months
ended June 30, 2013.

(b) Research and development expenses include $1.3 million of integration plan
related costs and $0.6 million of stock based compensation expenses in the six
months ended June 30, 2013.

(c) Selling and marketing expenses include $0.7 million of amortization of
intangible assets, $0.7 million of integration plan related costs and $0.7
million of stock based compensation expenses in the six months ended  June 30,
2013.

(d) General and administrative expenses include, $0.7 million of integration
plan related costs and $0.6 million of stock based compensation expenses in
the six months ended June 30, 2013.

(e) Financial expenses include $3.1 million non-recurring currency devaluation
in Venezuela in the six months ended June, 2013.



RECONCILIATION BETWEEN REPORTED AND NON-GAAP
NET LOSS
(U.S. dollars in thousands)
(Unaudited)
                                                   Three months   Six months
                                                   ended          ended
                                                   June 30, 2013
Reported GAAP net loss                             7,520          21,661
Stock based compensation expenses                  998            2,073
Amortization of intangible assets                  604            1,270
Inventory step up                                  -              459
Integration plan related costs                     -              2,844
Changes in pre-acquisition indirect tax positions  244            508
Financial expenses related to non-recurring        -              3,133
currency devaluation in Venezuela
Non-GAAP net loss                                  5,674          11,374



SOURCE Ceragon Networks Ltd.

Website: http://www.ceragon.com
 
Press spacebar to pause and continue. Press esc to stop.