Breaking News

CDC Confirms First Ebola Case Diagnosed in the United States
Tweet TWEET

Ceragon Networks Reports First Quarter 2014 Financial Results

        Ceragon Networks Reports First Quarter 2014 Financial Results  PR Newswire  PARAMUS, N.J., May 8, 2014  PARAMUS, N.J., May 8, 2014 /PRNewswire/ --Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless hauling specialist today reported results for the first quarter which ended March 31, 2014.  Revenues for the first quarter of 2014 were within the range of updated guidance at $70.5 million, down 22% from $90.1 million for the first quarter of 2013, and down 21% from $89.5 million in the fourth quarter of 2013.  Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the first quarter of 2014 was $(27.0) million or $(0.51) per basic share and diluted share, compared to net loss of $(14.1) million in the first quarter of 2013, or $(0.38) per basic share and diluted share.  On a non-GAAP basis, net loss for the first quarter was $(12.9) million, or $(0.25) per basic share and diluted share, excluding (a) $1.1 million of stock-based compensation expenses, (b) $0.5 million amortization of intangible assets, (c) $4.4 million restructuring and other expenses associated with the 2013 restructuring (d) $0.3 million of changes in pre-acquisition indirect tax positions (e) $4.1 million finance expenses related to a currency devaluation in Venezuela (f) $2.2 million related to certain transactions to expatriate cash from Venezuela and Argentina, and (g) $1.5 million of non-cash tax adjustments. Non-GAAP net loss for the first quarter of 2013 was $(5.7) million, or $(0.16) 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 first quarter of 2014 was 22.1% of revenues. Gross margin on a non-GAAP basis was 23.3% of revenues.  Operating loss on a GAAP basis in the first quarter of 2014 was $(17.1) million. On a non-GAAP basis, operating loss was $(10.8) million.  Cash and cash investments at the end of the quarter were $30.5 million. On April 2, the company announced a settlement agreement with Eltek ASA pursuant to which it has received $17 million in cash in the second quarter.  "We are pleased to see the strong bookings during the first quarter, especially for our new IP-20 products," said Ira Palti, President and CEO of Ceragon. "As previously indicated, our bookings increased substantially from the fourth quarter and the IP-20 products accounted for more than 40% of total bookings. The number of requests for proposals, evaluations, trials and other new business activity continues to increase with both existing and new customers, and we are making progress on some large projects. These factors are the basis of our expectation that the second half of the year will be substantially better than the first half.  "Meanwhile, as we indicated in our update on April 2^nd, our first quarter revenues were affected by our decision not to ship and install an order we received from a large customer pending renegotiation of payment terms, and the higher than expected proportion of orders for new IP-20 products during the initial phase of the manufacturing ramp. We have reached an understanding with the customer that will improve payment terms but also will result in spreading shipments over a longer time period in the future. We have made good progress during the initial phase of ramping our manufacturing for the new products during the first quarter, and we continue to ramp production as quickly as possible to meet the growing demand for the IP-20 products."  Supplemental revenue breakouts:  Geographical breakdown, first quarter of 2014:    oEurope: 19%   oAfrica: 11%   oNorth America: 13%   oLatin America: 30%   oIndia: 14%   oAPAC: 13%  A conference call will follow today, May 8, 2014, beginning at 9:00 a.m. EDT. Investors are invited to join the Company's teleconference by calling (877) 777-1968, or international +1(612) 332-0632 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: 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: 325517. A replay of both the call and the webcast will be available through June 8, 2014.  About Ceragon Networks Ltd.  Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless hauling 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.  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.  Safe Harbor  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 forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including risks associated with increased working capital needs, the risk that sales of Ceragon's new IP-20 products will not meet expectations, risks associated with doing business in Latin America, including currency export controls and recent economic concerns, the risks relating to the concentration of our business in developing nations, the risk of significant expenses in connection with potential contingent tax liability associated with Nera's prior operations or facilities, 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, and 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.  Investors:                                Media: Aviram Steinhart    or  Claudia Gatlin  Yoel Knoll +972 3 5431 443              +1 201 853 0228          +972 3 5431132 or +1 201                                                       853 0271 avirams@ceragon.com          claudiag@ceragon.com  yoelk@ceragon.com    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (U.S. dollars in thousands, except share and per share data)  (Unaudited)                                                  Three months ended                                                  March 31,                                                  2014            2013 Revenues                                         $   70,515    $   90,097 Cost of revenues                                 54,936          62,637 Gross profit                                     15,579          27,460 Operating expenses: Research and development, net                    10,439          11,906 Selling and marketing                            15,420          17,533 General and administrative                       5,906           6,715 Restructuring costs                              936             - Total operating expenses                         $   32,701   $   36,154 Operating loss                                   17,122          8,694 Financial expenses, net                          8,164           4,629 Loss before taxes                                25,286          13,323 Taxes on income                                  1,677           818 Net loss                                         $  26,963     $  14,141 Basic and diluted net loss per share             $  0.51       $  0.38 Weighted average number of shares used in computing basic and diluted net loss per         52,457,168      36,755,603 share    CONDENSED CONSOLIDATED BALANCE SHEETS  (U.S. dollars in thousands)  (Unaudited)                                                 March 31,       December 31,                                                                 2013                                                 2014 ASSETS CURRENT ASSETS: Cash and cash equivalents                       $    26,055  $    42,407 Short-term bank deposits                        396             446 Marketable securities                           -               5,499 Trade receivables, net                          129,976         131,166 Other accounts receivable and prepaid expenses  33,179          34,205 Deferred taxes, net                             6,986           7,198 Inventories                                     62,951          64,239 Total current assets                            259,543         285,160 NON-CURRENT ASSETS: Marketable securities                           4,060           3,985  Deferred taxes, net                          5,620           6,542  Severance pay funds and pension              6,883           7,065  Property and equipment, net                  35,140          35,245  Intangible assets, net                       6,703           7,213  Goodwill                                     15,036          14,935  Other non-current assets                     6,995           5,826 Total non-current assets                        80,437          80,811 Total assets                                    $ 339,980      $ 365,971   LIABILITIES AND SHAREHOLDERS' EQUITY   CURRENT LIABILITIES: Short term loans, including current maturities  $    65,032  $    46,922 of long term loan Trade payables                                  64,841          77,979 Deferred revenues                               5,070           7,968 Other accounts payable and accrued expenses     44,282          45,526 Total current liabilities                       179,225         178,395   LONG-TERM LIABILITIES Long term bank loan, net of current maturities  8,246           10,304 Accrued severance pay and pension               13,879          13,635 Other long term liabilities                     29,116          28,559                                                 51,241          52,498 SHAREHOLDERS' EQUITY: Share capital:  Ordinary shares                             141             141 Additional paid-in capital                      359,036         357,989 Treasury shares at cost                         (20,091)        (20,091) Accumulated other comprehensive loss, net of    (1,217)         (1,569) taxes Accumulated deficit                             (228,355)       (201,392) Total shareholders' equity                      109,514         135,078 Total liabilities and shareholders' equity      $   339,980   $   365,971    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW  (U.S. dollars, in thousands)  (Unaudited)                                                  Three months ended                                                  March 31,                                                  2014           2013 Cash flow from operating activities: Net loss                                         $  (26,963)  $  (14,141) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization                    3,378          4,038 Stock-based compensation expense                 1,047          1,075 Decrease in trade and other receivables, net     1,894          23,652 Decrease in inventory, net of write-off          1,609          2,863 Decrease in deferred tax asset, net              1,317          150 Decrease in trade payables and accrued           (15,058)       (13,425) liabilities Decrease in deferred revenues                    (2,899)        (1,252) Other adjustments                                841            (101) Net cash provided by (used in) operating         $  (34,834)  $  2,859 activities Cash flow from investing activities: Purchase of property and equipment ,net          (2,850)        (2,895) Investment in short and long-term bank deposits  -              (217) Proceeds from short and long-term bank deposits  50             - Proceeds from sale and maturities of marketable  5,161          - securities Net cash provided by (used in) investing         $  2,361     $  (3,112) activities Cash flow from financing activities: Proceeds from exercise of options                -              1,137 Proceeds from short-term bank loans              18,110         3,000 Repayment of loans from financial institutions   (2,058)        (4,058) Net cash provided by financing activities        $  16,052    $  79 Translation adjustments on cash and cash         $  69        $  (120) equivalents Decrease in cash and cash equivalents            $ (16,352)    $  (294) Cash and cash equivalents at the beginning of    42,407         47,099 the period Cash and cash equivalents at the end of the      $  26,055    $  46,805 period    RECONCILIATION OF NON-GAAP FINANCIAL RESULTS  (U.S. dollars in thousands, except share and per share data)  (Unaudited)                        Three months ended March 31,                        2014                                        2013                        GAAP                        (as           Adjustments     Non-GAAP      Non-GAAP                        reported) Revenues               $  70,515                    $  70,515    $  90,097 Cost of revenues       54,936        (a) 866       54,070        61,342 Gross profit           15,579                        16,445        28,755 Operating expenses: Research and           10,439        (b) 2,586    7,853         10,383 development, net Selling and            15,420        (c) 1,015    14,405        16,110 marketing General and            5,906         (d) 884      5,022         5,648 administrative Restructuring costs    936           936             -             - Total operating        $ 32,701                     $ 27,280     $ 32,141 expenses Operating loss         17,122                        10,835        3,386 Financial expenses,    8,164         (e) 6,310    1,854         1,496 net Loss before taxes      25,286                        12,689        4,882 Taxes on income        1,677         (f) 1,490   187           818 Net loss               $  26,963                    $  12,876    $  5,700 Basic and diluted      $   0.51                    $   0.25    $  0.16 net loss per share Weighted average number of shares used in computing      52,457,168                    52,457,168    36,755,603 basic and diluted net loss per share Total adjustments                    14,087 (a) Cost of revenues includes $0.3 million of amortization of intangible assets, $0.3 million of changes in pre-acquisition indirect tax positions, $0.1 million of stock based compensation expenses and $0.2 million of restructuring plan related costs in the three months ended March 31, 2014.  (b)Research and development expenses include $2.1 million of restructuring plan related costs and $0.5 million of stock-based compensation expenses in the three months ended March 31, 2014.  (c) Selling and marketing expenses include $0.2 million of amortization of intangible assets, $0.5 million of restructuring plan related costs and $0.3 million of stock based compensation expenses in the three months ended March 31, 2014.  (d) General and administrative expenses include $0.6 million of restructuring plan related costs and $0.3 million of stock based compensation expenses in the three months ended March 31, 2014.  (e) Financial expenses include $4.1 million of currency devaluation in Venezuela and $2.2 million related to certain transactions to expatriate cash from Venezuela and Argentina in the three months ended March 31, 2014.  (f) Taxes on income include $1.5 million of non-cash tax adjustments in the three months ended March 31, 2014.    RECONCILIATION BETWEEN REPORTED AND NON-GAAP  NET LOSS  (U.S. dollars in thousands)  (Unaudited)                                                         Three months ended                                                         March 31,                                                         2014       2013 Reported GAAP net loss                                  26,963     14,141 Stock based compensation expenses                       1,047      1,075 Amortization of intangible assets                       523        666 Inventory step-up                                       -          459 Restructuring expenses                                  4,440      2,844 Changes in pre-acquisition indirect tax positions       277        264 Currency devaluation in Venezuela                       4,140      3,133 Expenses related to certain transactions to expatriate  2,170      - cash from Venezuela and Argentina Non-cash tax adjustments                                1,490      - Non-GAAP net loss                                       12,876     5,700    SOURCE Ceragon Networks Ltd.  Website: http://www.ceragon.com  
Press spacebar to pause and continue. Press esc to stop.