KCBD, NewsChannel 11 Lubbock |Ceragon Networks Reports Third Quarter 2009 Financial Results
Member Center:
Revenues for the third quarter of 2009 were
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the third quarter of 2009 was
On a non-GAAP basis, net income for the third quarter, excluding
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
"As expected, Q3 reflected the beginning of a trend toward improving
revenues," said
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,
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
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
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended Nine months ended
September 30 September 30,
2009 2008 2009 2008
Revenues $ 44,715 $ 58,097 $ 130,863 $ 160,499
Cost of revenues 30,499 39,786 88,263 106,805
Gross profit 14,216 18,311 42,600 53,694
Operating expenses:
Research and
development 4,720 5,157 14,377 15,115
Selling and
marketing 6,973 8,139 22,119 23,263
General and
administrative 1,847 1,773 5,649 4,990
Total operating
expenses $ 13,540 $ 15,069 $ 42,145 $ 43,368
Operating profit 676 3,242 455 10,326
Financial income,
net 446 490 1,268 2,115
Income before taxes 1,122 3,732 1,723 12,441
Tax benefit (taxes
on income) (43) (250) (196) 10,798
Net Income $ 1,079 $ 3,482 $ 1,527 $ 23,239
Basic net earnings
per share $ 0.03 $ 0.09 $ 0.04 $ 0.63
Diluted net earnings
per share $ 0.03 $ 0.09 $ 0.04 $ 0.60
Weighted average
number of shares
used in computing
basic net earnings
per share 34,178,001 37,020,035 34,407,042 36,980,039
Weighted average
number of shares
used in computing
diluted net earnings
per share 35,542,326 38,676,762 35,278,880 38,806,070
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited)
September December
30, 2009 31, 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 39,546 $ 28,224
Short-term bank deposits 36,557 35,044
Marketable securities 7,819 2,187
Trade receivables, net 56,970 70,811
Deferred taxes 3,268 4,082
Other accounts receivable and prepaid expenses 9,368 11,508
Inventories 50,170 40,113
Total current assets 203,698 $ 191,969
LONG-TERM INVESTMENTS:
Long-term bank deposits 7,846 8,204
Long-term marketable securities 7,999 24,102
Severance pay funds 4,848 4,065
Deferred taxes 8,821 8,007
Total long-term investments $ 29,514 $ 44,378
PROPERTY AND EQUIPMENT, NET 10,322 8,891
Total assets $ 243,534 $ 245,238
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 34,893 41,748
Deferred revenues 13,983 5,886
Other accounts payable and accrued expenses 8,113 8,041
Total current liabilities $ 56,989 $ 55,675
LONG-TERM LIABILITIES
Accrued severance pay $ 7,050 $ 6,647
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares 91 91
Additional paid-in capital 288,215 285,141
Treasury shares at cost (15,963) (7,923)
Other comprehensive income 211 193
Accumulated deficits (93,059) (94,586)
Total shareholders' equity $ 179,495 $ 182,916
Total liabilities and shareholders' equity $ 243,534 $ 245,238
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
(Unaudited)
Three months ended
September 30,
2009 2008
Cash flow from operating activities:
Net income $ 1,079 $ 3,482
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation 852 529
Stock-based compensation expense 696 665
Decrease (increase) in trade and other
receivables, net (5,348) (6,020)
Increase in inventory (8,002) (2,530)
Increase (decrease) in trade payables
and accrued liabilities 7,378 5,514
Increase (decrease) in deferred revenues 7,932 2,823
Decrease (increase) in deferred tax asset - 95
Decrease in long term payable - -
Other adjustments (183) (15)
Net cash provided by (used in) operating
activities $ 4,404 $ 4,543
Cash flow from investing activities:
Purchase of property and equipment ,net (1,323) (1,179)
Investment in short and long-term bank
deposit (8,840) (19,569)
Proceeds from short and long-term bank
deposits 6,334 8,820
Investment in held-to-maturity marketable
securities - (744)
Proceeds from maturities of held-to-maturity
marketable securities - 2,000
Net cash provided by (used in) investing
activities $ (3,829) $(10,672)
Cash flow from financing activities:
Proceeds from exercise of options 569 316
Purchase of treasury shares at cost - -
Issuance costs - (41)
Net cash provided by (used in)
financing activities $ 569 $ 275
Increase (decrease) in cash and
cash equivalents $ 1,144 $ (5,854)
Cash and cash equivalents at the
beginning of the period 38,402 40,498
Cash and cash equivalents at the
end of the period $ 39,546 $ 34,644
Nine months ended
September 30,
2009 2008
Cash flow from operating activities:
Net income $ 1,527 $ 23,239
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation 2,323 1,385
Stock-based compensation expense 2,290 1,963
Decrease (increase) in trade and other
receivables, net 15,889 (23,619)
Increase in inventory (10,057) (2,693)
Increase (decrease) in trade payables
and accrued liabilities (5,330) 9,211
Increase (decrease) in deferred revenues 8,097 (1,073)
Decrease (increase) in deferred tax asset - (11,112)
Decrease in long term payable - (4,650)
Other adjustments (416) 145
Net cash provided by (used in) operating
activities $ 14,323 $ (7,204)
Cash flow from investing activities:
Purchase of property and equipment ,net (5,097) (3,018)
Investment in short and long-term bank
deposit (27,795) (53,144)
Proceeds from short and long-term bank
deposits 26,893 47,835
Investment in held-to-maturity
marketable securities (1,500) (14,744)
Proceeds from maturities of held-to-
maturity marketable securities 11,754 6,050
Net cash provided by (used in)
investing activities $ 4,255 $ (17,021)
Cash flow from financing activities:
Proceeds from exercise of options 784 591
Purchase of treasury shares at cost (8,040) -
Issuance costs - (372)
Net cash provided by (used in)
financing activities $ (7,256) $ 219
Increase (decrease) in cash and cash
equivalents $ 11,322 $ (24,006)
Cash and cash equivalents at the
beginning of the period 28,224 58,650
Cash and cash equivalents at the
end of the period $ 39,546 $ 34,644
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended September 30,
2009 2008
GAAP Adjus Non-GAAP Non-GAAP
(as reported) tments
(*)
Revenues $ 44,715 $ 44,715 $ 58,097
Cost of revenues 30,499 62 30,437 39,719
Gross profit 14,216 14,278 18,378
Operating expenses:
Research and development 4,720 148 4,572 4,982
Selling and marketing 6,973 241 6,732 7,938
General and administrative 1,847 245 1,602 1,551
Total operating expenses $ 13,540 $ 12,906 $ 14,471
Operating profit 676 1,372 3,907
Financial income, net 446 446 490
Income before taxes 1,122 1,818 4,397
Taxes on income 43 43 159
Net income $ 1,079 $ 1,775 $ 4,238
Basic net earnings per share $ 0.03 $ 0.05 $ 0.11
Diluted net earnings per share $ 0.03 $ 0.05 $ 0.11
Weighted average number of
shares used in computing basic
net earnings per share 34,178,001 34,178,001 37,020,035
Weighted average number of
shares used in computing
diluted net earnings per share 35,542,326 35,542,326 38,676,762
Total adjustments 696
(*) Adjustments related to
equity based compensation
expenses according to SFAS
123 (R)
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Nine months ended September 30,
2009 2008
GAAP Adju Non-GAAP Non-GAAP
(as reported) stments
(*)
Revenues $ 130,863 $ 130,863 $160,499
Cost of revenues 88,263 186 88,077 106,600
Gross profit 42,600 42,786 53,899
Operating expenses:
Research and development 14,377 473 13,904 14,656
Selling and marketing 22,119 869 21,250 22,492
General and administrative 5,649 762 4,887 4,462
Total operating expenses $ 42,145 $ 40,041 $ 41,610
Operating profit (loss) 455 2,745 12,289
Financial income, net 1,268 1,268 2,115
Income before taxes 1,723 4,013 14,404
Taxes on income 196 196 409
Net Income $ 1,527 $ 3,817 $ 13,995
Basic net earnings per share $ 0.04 $ 0.11 $ 0.38
Diluted net earnings per share $ 0.04 $ 0.11 $ 0.36
Weighted average number of
shares used in computing
basic net earnings per share 34,407,042 34,407,042 36,980,039
Weighted average number of
shares used in computing
diluted net earnings per
share 35,278,880 35,278,880 38,806,070
Total adjustments 2,290
(*) Adjustments related to
equity based compensation
expenses according to SFAS 123
(R)
Contact: Yoel Knoll
Director of Investor Relations
Ceragon Networks Ltd.
Cell (Int'l): +972(0)52-830-6419
Office (Int'l): +972(0)3-766-6419
yoell@ceragon.com
SOURCE Ceragon Networks Ltd
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