/C O R R E C T I O N -- Ceragon Networks Ltd/
In the news release, "Ceragon Networks Reports Second Quarter 2010 Financial Results" issued on 26 Jul 2010 12:12 GMT, by Ceragon Networks Ltd nasdaq:CRNT over PR Newswire, we are advised by a representative of the company that, in the fourth paragraph, the first line should refer to the 'second quarter', rather than the 'first quarter' as originally issued inadvertently. Complete, corrected release follows:
PARAMUS, New Jersey, July 26, 2010 /PRNewswire-FirstCall/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the provider of high-capacity, LTE/4G-ready wireless backhaul networks, today reported results for the second quarter which ended June 30, 2010.
Revenues for the second quarter of 2010 reached an all-time high of $60.9 million, up 44% from $42.2 million for the second quarter of 2009 and up 2% from $59.7 million in the first quarter of 2010.
Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the second quarter of 2010 was $2.6 million or $0.07 per basic share and diluted share, including a one-time expense of $1.15 million to acquire technology for further development. Net income in the second quarter of 2009 was $0.2 million, or $0.01 per basic and diluted share.
On a non-GAAP basis, net income for the second quarter, excluding $852,000 of equity-based compensation expenses and the $1.15 million one-time expense for technology, was $4.6 million, or $0.13 per basic and diluted share. Non-GAAP net income for the second quarter of 2009 was $1.04 million, or $0.03 per basic and 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 second quarter of 2010 was 35.3%. Gross margin on a non-GAAP basis was 35.4% of revenues.
Cash and cash investments at the end of the quarter were $94.9 million.
"We had an excellent second quarter with record revenues, higher gross margin, and improved operating margin," said Ira Palti, President and CEO of Ceragon. "Global demand remains very strong. Outside of India, where orders are being delayed pending a security-related process being implemented by the government, our book-to-bill was above one. We expect revenues in the third and fourth quarters to be similar to the second quarter. For the full year, we continue to target revenue growth in the range of 30-35%, with profits growing at a higher rate than revenue."
Supplemental revenue breakouts:
Geographical breakdown, first quarter of 2010:
EMEA: 25%
North America: 16%
Asia Pacific: 53%
Latin America: 6%
A conference call will follow, beginning at 9:00 a.m. EDT. Investors are invited to join the Company's teleconference by calling (800)-230-1059 or international (612)-234-9959 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: http://www.ceragon.com/ir_events.asp?lang=0 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 162768.
A replay of both the call and the webcast will be available through August 26, 2010.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is a leading provider of high capacity LTE/4G ready wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services, such as Internet browsing, music and video applications. Our wireless backhaul solutions use microwave technology to transfer large amounts of telecommunication traffic between base stations and the core of the service provider's network. Designed to enable risk-free migration from legacy to next-generation backhaul networks, our solutions 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. Our solutions support all wireless access technologies, including GSM, CDMA, EV-DO, HSPA, LTE and WiMAX. These solutions allow wireless service providers to cost-effectively and seamlessly evolve their network from circuit-switched and hybrid concepts to all IP thereby meeting the increasing demands by the growing numbers of subscribers and the increasing demand for mobile data services. We also provide our solutions to businesses and public institutions that operate their own private communications networks. Our solutions are deployed by more than 200 service providers of all sizes, as well as in hundreds of private networks, in more than 130 countries. More information is available at http://www.ceragon.com.
Ceragon Networks(R), CeraView(R), FibeAir(R), the FibeAir(R) design mark and Native2(R) are registered trademarks., 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.
Ceragon Reports Second Quarter 2010 Results
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended Six months ended
June 30 June 30,
2010 2009 2010 2009
Revenues $ 60,889 $ 42,246 $ 120,576 $ 86,148
Cost of revenues 39,420 28,555 78,731 57,386
Gross profit 21,469 13,691 41,845 28,762
Operating expenses:
Research and 6,919 4,323 12,192 9,096
development
Selling and marketing 8,959 7,028 18,141 14,807
General and 2,996 2,504 5,776 5,080
administrative
Total operating $ 18,874 $ 13,855 $ 36,109 $ 28,983
expenses
Operating profit (loss) 2,595 (164) 5,736 (221)
Financial income, net 276 468 510 822
Income before taxes 2,871 304 6,246 601
Taxes on income 273 71 625 153
Net Income $2,598 $ 233 $5,621 $ 448
Basic net earnings per $ 0.07 $ 0.01 $ 0.16 $ 0.01
share
Diluted net earnings $ 0.07 $ 0.01 $ 0.15 $ 0.01
per share
Weighted average
number of shares used
in computing basic net
earnings per share 34,881,532 34,247,005 34,686,410 34,523,460
Weighted average
number of shares used in
computing diluted net
earnings per share 36,317,945 34,994,702 36,542,735 35,157,903
(more)
Ceragon Reports Second Quarter 2010 Results
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited)
June 30, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 30,231 $ 38,339
Short-term bank deposits 22,867 30,183
Marketable securities 16,356 16,724
Trade receivables, net 56,690 68,452
Deferred taxes 3,964 3,462
Other accounts receivable and prepaid
expenses 7,724 7,492
Inventories 68,577 65,925
Total current assets 206,409 230,577
LONG-TERM INVESTMENTS:
Long-term bank deposits 9,220 10,824
Long-term marketable securities 16,223 2,250
Severance pay funds 5,049 4,971
Deferred taxes 8,899 8,942
Total long-term investments $ 39,391 $ 26,987
PROPERTY AND EQUIPMENT, NET 14,574 11,809
Total assets $ 260,374 $ 269,373
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 34,358 52,898
Deferred revenues 17,806 18,548
Other accounts payable and accrued
expenses 9,874 9,847
Total current liabilities $ 62,038 $ 81,293
LONG-TERM LIABILITIES
Accrued severance pay $ 7,282 $ 7,174
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares 94 92
Additional paid-in capital 296,573 291,736
Treasury shares at cost (20,091) (20,091)
Other comprehensive income (loss) (212) 100
Accumulated deficits (85,310) (90,931)
Total shareholders' equity $ 191,054 $ 180,906
Total liabilities and shareholders'
equity $ 260,374 $ 269,373
Ceragon Reports Second Quarter 2010 Results
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars in thousands)
(Unaudited)
2010 2009 2010 2009
Cash flow from operating activities:
Net income $ 2,598 $ 233 $ 5,621 $ 448
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation 1,138 760 2,178 1,471
Stock-based
compensation expense 852 805 1,823 1,594
Decrease in trade
and other receivables,
net 1,673 7,700 11,118 21,237
Decrease (increase)
in inventory 5,172 (2,922) (2,652) (2,055)
Decrease in trade
payables and accrued
liabilities (11,213) (145) (17,985) (12,708)
Increase (decrease)
in deferred revenues (2,063) (1,270) (742) 165
Increase in deferred
tax asset (28) - (359) -
Other adjustments 557 (95) 536 (233)
Net cash provided by
(used in) operating
activities $ (1,314) $ 5,066 $ (462) $ 9,919
Cash flow from investing
activities:
Purchase of property and
equipment, net (2,577) (1,287) (5,471) (3,774)
Investment in short
and long-term bank
deposit (11,032) (10,495) (11,032) (18,955)
Proceeds from short
and long-term bank
deposits 12,607 3,599 19,680 20,559
Investment in
held-to-maturity marketable
securities (3,230) - (18,339) (1,500)
Proceeds from
maturities of
held-to-maturity
marketable securities - 1,300 4,500 11,754
Net cash provided by
(used in) investing
activities $ (4,232) $(6,883) $ (10,662) $ 8,084
Cash flow from financing
activities:
Proceeds from exercise
of options 430 215 3,016 215
Purchase of treasury
shares at cost - (1,618) - (8,040)
Net cash provided by (used in)
financing activities $ 430 (1,403) $ 3,016 $ (7,825)
Increase (decrease) in
cash and cash equivalents $ (5,116) (3,220) $ (8,108) $ 10,178
Cash and cash equivalents
at the beginning of the period 35,347 41,622 38,339 28,224
Cash and cash equivalents
at the end of the period $ 30,231 $ 38,402 $ 30,231 $ 38,402
Ceragon Reports Second Quarter 2010 Results
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended June 30
2010 2009
GAAP
(as reported) Adjustments Non-GAAP Non-GAAP
Revenues $ 60,889 $ 60,889 $ 42,246
Cost of revenues 39,420 (*)72 39,348 28,494
Gross profit 21,469 21,541 13,752
Operating expenses:
Research and development 6,919 (*)184 5,585 4,157
**)1,150
Selling and marketing 8,959 (*)352 8,607 6,706
General and administrative 2,996 (*)244 2,752 2,248
Total operating expenses $ 18,874 $ 16,944 $ 13,111
Operating profit 2,595 4,597 641
Financial income, net 276 276 468
Income before taxes 2,871 4,873 1,109
Taxes on income 273 273 71
Net income $ 2,598 $ 4,600 $ 1,038
Basic net earnings
per share $ 0.07 $ 0.13 $ 0.03
Diluted net earnings
per share $ 0.07 $ 0.13 $ 0.03
Weighted average number of
shares used in computing
basic net earnings per
share 34,881,532 34,881,532 34,247,005
Weighted average number of
shares used in computing
diluted net earnings per
share 36,317,945 36,317,945 34,994,702
Total adjustments 2,002
(*) Adjustments related to
equity based compensation
expenses according to SFAS
123 (R)
(**) Adjustment related to purchase
of technology for further development
Ceragon Reports Second Quarter 2010 Results
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Six months ended June 30,
2010 2009
GAAP
(as reported) Adjustments(*) Non-GAAP Non-GAAP
Revenues $ 120,576 $ 120,576 $86,148
Cost of revenues 78,731 (*)138 78,593 57,262
Gross profit 41,845 41,983 28,886
Operating expenses:
Research and
development 12,192 (*)361 10,681 8,770
(**)1,150
Selling and
marketing 18,141 (*)614 17,527 14,179
General and
administrative 5,776 (*)710 5,066 4,564
Total operating
expenses $ 36,109 $ 33,274 $ 27,513
Operating profit 5,736 8,709 1,373
Financial income net 510 510 822
Income before taxes 6,246 9,219 2,195
Taxes on income 625 625 153
Net Income $ 5,621 $ 8,594 $ 2,042
Basic net earnings
per share $ 0.16 $ 0.25 $ 0.06
Diluted net earnings
per share $ 0.15 $ 0.24 $ 0.06
Weighted average number
of shares used in
computing basic
net earnings per
share 34,686,410 34,686,410 34,523,460
Weighted average number
of shares used in
computing diluted
net earnings per
share 36,542,735 36,542,735 35,157,903
Total adjustments 2,973
(*) Adjustments related to
equity based compensation
expenses according to SFAS 123
(R)
(**) Adjustment related to
purchase of technology for further development
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
[email protected]
------
Ceragon Networks Reports Second Quarter 2010 Financial Results
Achieves Record Revenues, Higher Gross Margins and Improved Operating Margin
PARAMUS, New Jersey, July 26, 2010 /PRNewswire-FirstCall/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the provider of high-capacity, LTE/4G-ready wireless backhaul networks, today reported results for the second quarter which ended June 30, 2010.
Revenues for the second quarter of 2010 reached an all-time high of $60.9 million, up 44% from $42.2 million for the second quarter of 2009 and up 2% from $59.7 million in the first quarter of 2010.
Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the second quarter of 2010 was $2.6 million or $0.07 per basic share and diluted share, including a one-time expense of $1.15 million to acquire technology for further development. Net income in the second quarter of 2009 was $0.2 million, or $0.01 per basic and diluted share.
On a non-GAAP basis, net income for the first quarter, excluding $852,000 of equity-based compensation expenses and the $1.15 million one-time expense for technology, was $4.6 million, or $0.13 per basic and diluted share. Non-GAAP net income for the second quarter of 2009 was $1.04 million, or $0.03 per basic and 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 second quarter of 2010 was 35.3%. Gross margin on a non-GAAP basis was 35.4% of revenues.
Cash and cash investments at the end of the quarter were $94.9 million.
"We had an excellent second quarter with record revenues, higher gross margin, and improved operating margin," said Ira Palti, President and CEO of Ceragon. "Global demand remains very strong. Outside of India, where orders are being delayed pending a security-related process being implemented by the government, our book-to-bill was above one. We expect revenues in the third and fourth quarters to be similar to the second quarter. For the full year, we continue to target revenue growth in the range of 30-35%, with profits growing at a higher rate than revenue."
Supplemental revenue breakouts:
Geographical breakdown, first quarter of 2010:
EMEA: 25%
North America: 16%
Asia Pacific: 53%
Latin America: 6%
A conference call will follow, beginning at 9:00 a.m. EDT. Investors are invited to join the Company's teleconference by calling (800)-230-1059 or international (612)-234-9959 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: http://www.ceragon.com/ir_events.asp?lang=0 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 162768.
A replay of both the call and the webcast will be available through August 26, 2010.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is a leading provider of high capacity LTE/4G ready wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services, such as Internet browsing, music and video applications. Our wireless backhaul solutions use microwave technology to transfer large amounts of telecommunication traffic between base stations and the core of the service provider's network. Designed to enable risk-free migration from legacy to next-generation backhaul networks, our solutions 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. Our solutions support all wireless access technologies, including GSM, CDMA, EV-DO, HSPA, LTE and WiMAX. These solutions allow wireless service providers to cost-effectively and seamlessly evolve their network from circuit-switched and hybrid concepts to all IP thereby meeting the increasing demands by the growing numbers of subscribers and the increasing demand for mobile data services. We also provide our solutions to businesses and public institutions that operate their own private communications networks. Our solutions are deployed by more than 200 service providers of all sizes, as well as in hundreds of private networks, in more than 130 countries. More information is available at http://www.ceragon.com.
Ceragon Networks(R), CeraView(R), FibeAir(R), the FibeAir(R) design mark and Native2(R) are registered trademarks., 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.
Ceragon Reports Second Quarter 2010 Results
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended Six months ended
June 30 June 30,
2010 2009 2010 2009
Revenues $ 60,889 $ 42,246 $ 120,576 $ 86,148
Cost of revenues 39,420 28,555 78,731 57,386
Gross profit 21,469 13,691 41,845 28,762
Operating expenses:
Research and 6,919 4,323 12,192 9,096
development
Selling and marketing 8,959 7,028 18,141 14,807
General and 2,996 2,504 5,776 5,080
administrative
Total operating $ 18,874 $ 13,855 $ 36,109 $ 28,983
expenses
Operating profit (loss) 2,595 (164) 5,736 (221)
Financial income, net 276 468 510 822
Income before taxes 2,871 304 6,246 601
Taxes on income 273 71 625 153
Net Income $2,598 $ 233 $5,621 $ 448
Basic net earnings per $ 0.07 $ 0.01 $ 0.16 $ 0.01
share
Diluted net earnings $ 0.07 $ 0.01 $ 0.15 $ 0.01
per share
Weighted average
number of shares used
in computing basic net
earnings per share 34,881,532 34,247,005 34,686,410 34,523,460
Weighted average
number of shares used in
computing diluted net
earnings per share 36,317,945 34,994,702 36,542,735 35,157,903
(more)
Ceragon Reports Second Quarter 2010 Results
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited)
June 30, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 30,231 $ 38,339
Short-term bank deposits 22,867 30,183
Marketable securities 16,356 16,724
Trade receivables, net 56,690 68,452
Deferred taxes 3,964 3,462
Other accounts receivable and prepaid
expenses 7,724 7,492
Inventories 68,577 65,925
Total current assets 206,409 230,577
LONG-TERM INVESTMENTS:
Long-term bank deposits 9,220 10,824
Long-term marketable securities 16,223 2,250
Severance pay funds 5,049 4,971
Deferred taxes 8,899 8,942
Total long-term investments $ 39,391 $ 26,987
PROPERTY AND EQUIPMENT, NET 14,574 11,809
Total assets $ 260,374 $ 269,373
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 34,358 52,898
Deferred revenues 17,806 18,548
Other accounts payable and accrued
expenses 9,874 9,847
Total current liabilities $ 62,038 $ 81,293
LONG-TERM LIABILITIES
Accrued severance pay $ 7,282 $ 7,174
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares 94 92
Additional paid-in capital 296,573 291,736
Treasury shares at cost (20,091) (20,091)
Other comprehensive income (loss) (212) 100
Accumulated deficits (85,310) (90,931)
Total shareholders' equity $ 191,054 $ 180,906
Total liabilities and shareholders'
equity $ 260,374 $ 269,373
Ceragon Reports Second Quarter 2010 Results
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars in thousands)
(Unaudited)
2010 2009 2010 2009
Cash flow from operating activities:
Net income $ 2,598 $ 233 $ 5,621 $ 448
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation 1,138 760 2,178 1,471
Stock-based
compensation expense 852 805 1,823 1,594
Decrease in trade
and other receivables,
net 1,673 7,700 11,118 21,237
Decrease (increase)
in inventory 5,172 (2,922) (2,652) (2,055)
Decrease in trade
payables and accrued
liabilities (11,213) (145) (17,985) (12,708)
Increase (decrease)
in deferred revenues (2,063) (1,270) (742) 165
Increase in deferred
tax asset (28) - (359) -
Other adjustments 557 (95) 536 (233)
Net cash provided by
(used in) operating
activities $ (1,314) $ 5,066 $ (462) $ 9,919
Cash flow from investing
activities:
Purchase of property and
equipment, net (2,577) (1,287) (5,471) (3,774)
Investment in short
and long-term bank
deposit (11,032) (10,495) (11,032) (18,955)
Proceeds from short
and long-term bank
deposits 12,607 3,599 19,680 20,559
Investment in
held-to-maturity marketable
securities (3,230) - (18,339) (1,500)
Proceeds from
maturities of
held-to-maturity
marketable securities - 1,300 4,500 11,754
Net cash provided by
(used in) investing
activities $ (4,232) $(6,883) $ (10,662) $ 8,084
Cash flow from financing
activities:
Proceeds from exercise
of options 430 215 3,016 215
Purchase of treasury
shares at cost - (1,618) - (8,040)
Net cash provided by (used in)
financing activities $ 430 (1,403) $ 3,016 $ (7,825)
Increase (decrease) in
cash and cash equivalents $ (5,116) (3,220) $ (8,108) $ 10,178
Cash and cash equivalents
at the beginning of the period 35,347 41,622 38,339 28,224
Cash and cash equivalents
at the end of the period $ 30,231 $ 38,402 $ 30,231 $ 38,402
Ceragon Reports Second Quarter 2010 Results
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended June 30
2010 2009
GAAP
(as reported) Adjustments Non-GAAP Non-GAAP
Revenues $ 60,889 $ 60,889 $ 42,246
Cost of revenues 39,420 (*)72 39,348 28,494
Gross profit 21,469 21,541 13,752
Operating expenses:
Research and development 6,919 (*)184 5,585 4,157
**)1,150
Selling and marketing 8,959 (*)352 8,607 6,706
General and administrative 2,996 (*)244 2,752 2,248
Total operating expenses $ 18,874 $ 16,944 $ 13,111
Operating profit 2,595 4,597 641
Financial income, net 276 276 468
Income before taxes 2,871 4,873 1,109
Taxes on income 273 273 71
Net income $ 2,598 $ 4,600 $ 1,038
Basic net earnings
per share $ 0.07 $ 0.13 $ 0.03
Diluted net earnings
per share $ 0.07 $ 0.13 $ 0.03
Weighted average number of
shares used in computing
basic net earnings per
share 34,881,532 34,881,532 34,247,005
Weighted average number of
shares used in computing
diluted net earnings per
share 36,317,945 36,317,945 34,994,702
Total adjustments 2,002
(*) Adjustments related to
equity based compensation
expenses according to SFAS
123 (R)
(**) Adjustment related to purchase
of technology for further development
Ceragon Reports Second Quarter 2010 Results
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Six months ended June 30,
2010 2009
GAAP
(as reported) Adjustments(*) Non-GAAP Non-GAAP
Revenues $ 120,576 $ 120,576 $86,148
Cost of revenues 78,731 (*)138 78,593 57,262
Gross profit 41,845 41,983 28,886
Operating expenses:
Research and
development 12,192 (*)361 10,681 8,770
(**)1,150
Selling and
marketing 18,141 (*)614 17,527 14,179
General and
administrative 5,776 (*)710 5,066 4,564
Total operating
expenses $ 36,109 $ 33,274 $ 27,513
Operating profit 5,736 8,709 1,373
Financial income net 510 510 822
Income before taxes 6,246 9,219 2,195
Taxes on income 625 625 153
Net Income $ 5,621 $ 8,594 $ 2,042
Basic net earnings
per share $ 0.16 $ 0.25 $ 0.06
Diluted net earnings
per share $ 0.15 $ 0.24 $ 0.06
Weighted average number
of shares used in
computing basic
net earnings per
share 34,686,410 34,686,410 34,523,460
Weighted average number
of shares used in
computing diluted
net earnings per
share 36,542,735 36,542,735 35,157,903
Total adjustments 2,973
(*) Adjustments related to
equity based compensation
expenses according to SFAS 123
(R)
(**) Adjustment related to
purchase of technology for further development
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
[email protected]
SOURCE Ceragon Networks Ltd
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