Ceragon Networks reported record Q3 revenues of $116.1 million, up 86% from $62.3 million for the third quarter of 2010, and up 5% from $110.4 million in the second quarter of 2011. Net loss (GAAP) was ($6.7) million or ($0.19) per basic share and diluted share, compared to net income of $4.6 million in the third quarter of 2010, or $0.13 per basic share and diluted share. Gross margin on a GAAP basis in the third quarter of 2011 was 29.7% of revenues, compared to GAAP gross margin of 21.4% in the second quarter of 2011. Cash and cash investments at the end of the quarter were $45.9 million.
"We are pleased to report another quarter of excellent progress with the integration leading to a sequential increase in revenues, improved gross margin and profitability," said Ira Palti, President and CEO of Ceragon. "Business remains good with our book-to-bill ratio for the first nine months of 2011 above one," continued Mr. Palti. "We expect to continue growing revenues, probably at a slower pace than originally expected because we cannot ignore the macro economic uncertainty and the issues in India affecting order patterns. Our plan to migrate customers to lower-cost higher functionality and capacity products is proceeding smoothly, and we continue to expect we will reach our gross margin target of the mid-30s by the end of next year. Given the current level of visibility, we believe targeting a non-GAAP operating margin of 8%-9% by the end of 2012 is realistic."
Geographical breakdown, third quarter of 2011:
Europe: 17%
Africa: 17%
North America: 13%
Latin America: 25%
India: 12%
APAC: 16%
http://www.ceragon.com
- Earlier this year, Ceragon Networks acquired Nera Networks AS (NAS), a supplier of long-distance microwave radios, for approximately $48.5 million on a cash-free/debt free basis from Eltek ASA.
Ceragon said the deal offers a long-range radio portfolio, as well as substantial presence in Latin America and Africa, advancing its goal of becoming the leading supplier of wireless backhaul solutions. Nera's geographic focus complements Ceragon's position in Europe, Asia and North America, and adds experienced, professional services staff and capabilities around the world. Nera Networks, which has its headquarters in Bergen, Norway, traces its history back to 1947. The company has about 800 employees with regional offices in Europe, the Americas, Middle East, Africa and Asia (through Nera Telecommunications Ltd., a separate company listed in Singapore).
