Ceragon Networks reports 3Q09 financials

OCTOBER 27, 2009 -- Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a provider of high-capacity Ethernet and TDM wireless backhaul equipment, has reported results for the third quarter which ended Sept. 30, 2009.

OCTOBER 27, 2009 -- Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a provider of high-capacity Ethernet and TDM wireless backhaul equipment, has reported results for the third quarter which ended Sept. 30, 2009.

Revenues for 3Q09 were $44.7 million, down 23% from $58.1 million for the third quarter of 2008 and up 6% from $42.2 million in 2Q09.

Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for 3Q09 was $1.1 million or $0.03 per basic share and diluted share, compared to net income of $3.5 million or $0.09 per basic and diluted share in 3Q08.

On a non-GAAP basis, net income for the third quarter, excluding $696,000 of equity-based compensation expenses, was $1.8 million, or $0.05 per basic and diluted share. Non-GAAP net income for 3Q08 was $4.2 million, or $0.11 per basic and diluted share. (Please refer to the financial table at the investor page for reconciliation of GAAP financial information to non-GAAP).

Gross margin on a GAAP basis in 3Q09 was 31.8% of revenues. Gross margin on a non-GAAP basis in 3Q09 was
31.9% of revenues.

Cash and cash investments at the end of the quarter were $99.8 million.

"As expected, Q3 reflected the beginning of a trend toward improving revenues," says Ira Palti, president and chief executive officer of Ceragon. "Based on strong bookings again in Q3, we expect revenue growth to continue into next year, driven by ongoing demand for high capacity backhaul for cellular networks, particularly in the Asia-Pacific region. In addition, our backlog is increasing, as we win more turnkey projects and successfully expand to a wide variety of new customers."

Supplemental revenue breakouts
Geographical breakdown:
Third quarter 2009
Asia Pacific 47%
Europe Middle-East and Africa 39%
North America 10%
Latin America 4%


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