TEL AVIV, Israel, October 27, 2008 - 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, 2008.
Revenues for the third quarter of 2008 were $58.1 million, up 30.6% from $44.5
million for the third quarter of 2007 and 5.2% from $55.2 million in the second quarter of
2008.
Net income in accordance with US Generally Accepted Accounting Principles
(GAAP) for the third quarter of 2008 was $3.5 million or $0.09 per basic and diluted share,
compared to net income of $3.7 million in the third quarter of 2007, or $0.12 per basic share
and $0.11 per diluted share.
On a non-GAAP basis, net income for the third quarter, excluding $665,000 of
equity-based compensation expenses, was $4.1 million, or $0.11 per basic and diluted share.
Non-GAAP net income for the third quarter of 2007 was $4.1 million, or $0.14 per basic
share and $0.13 per 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 2008 was 31.5% of revenues.
Gross margin on a non-GAAP basis in the third quarter of 2008 was 31.6% of revenues.
Cash and cash investments at the end of the quarter were $112 million.
“We believe that the growth drivers for our business remain intact and we continue
to expect strong demand for high capacity backhaul solutions, led by the Asia Pacific region,”
said Ira Palti, President and CEO of Ceragon. “Beyond this year, we think it’s prudent to
adopt a more cautious stance. We assume that customers will perform additional spending
analysis in the current economic environment, but will continue to spend to upgrade their
networks to higher capacity and migrate to IP technology.”
A conference call discussing Ceragon’s results for the third quarter of 2008, business
conditions, outlook and guidance, will take place today, October 27, 2008, at 9:00 a.m.
(EDT). Investors are invited to join the Company’s teleconference by calling (800) 230-1059
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or international (612) 332-0226 at 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: https://www.ceragon.com/investors/events
selecting the webcast link, and following the registration instructions.
If you are unable to join us live, the replay numbers are: (800) 475-6701 or
international (320) 365-3844, Access code 962215.
A replay of both the call and the webcast will be available through November 27,
2008.
