TEL AVIV, Israel, April 29 /PRNewswire-FirstCall/ -- Ceragon Networks Ltd. , http://www.ceragon.com/, a global provider of high-capacity broadband wireless systems, today reported results for the first quarter, which ended March 31, 2004. The first quarter of 2004 was Ceragon's tenth consecutive quarter of revenue growth and the first quarter in which the company reached profitability.Revenues for the quarter were $11.4 million, up from $7.0 million for the first quarter of 2003 and from $10.2 million for the fourth quarter of 2003. This represents an increase of 62% as compared to the first quarter of 2003, and an increase of 12.1% as compared to the fourth quarter of 2003.Gross profit for the first quarter of 2004 increased to $4.9 million, or 42.7% of revenues. This compares to gross profit for the first quarter of 2003 of $2.6 million, or 37% of revenues, and to gross profit for the fourth quarter of 2003 of $4.2 million, or 41.8% of revenues.The net profit computed in accordance with U.S. GAAP for the first quarter of 2004 improved for the tenth consecutive quarter, to $39 thousand, or $0.00 basic and diluted net profit per ordinary share. This compares to net loss for the first quarter of 2003 of $(2.1) million, or $(0.09) basic and diluted net loss per ordinary share, and to net loss for the fourth quarter of 2003 of $(275) thousand, or $(0.01) basic and diluted net loss per ordinary share. The company ended the first quarter of 2004 with $39 million in cash and liquid investments."Ceragon has just completed a strategic quarter, in line with our long term vision, achieving our first-ever quarter of profitability. We are enhancing our technology leadership in the marketplace with the launching of our innovative FibeAir 1500P," said Shraga Katz, president and CEO, Ceragon Networks Ltd. "and we will continue to focus on target markets and geographic expansion, providing the market with cutting edge wireless solutions. This strategy has proven itself quarter after quarter and I am confident, now that we have reached these significant goals, that we will take the company into yet another successful year."A conference call discussing Ceragon's results for the first quarter of 2004 will take place today, April 29, 2004, at 11:00 a.m. (EDT). Details can be found on Ceragon's website at http://www.ceragon.com/site/Investor_events.asp. The live call and its replay will be accessible on Ceragon's website. The replay will be available through May 3, 2004.
About Ceragon Networks Ltd.Ceragon Networks Ltd. http://www.ceragon.com/, a pacesetter in broadband wireless networking systems, enables rapid and cost-effective high-capacity network connectivity for mobile cellular infrastructure, fixed networks, private networks and enterprises. Ceragon's modular FibeAir(TM) product family operates across multiple frequencies from 6 to 38 GHz, supports integrated high-capacity services from 100 to 622 Mbps over SONET/SDH, ATM and IP networks, and offers innovative built-in add/drop multiplexing and encryption functionality to meet the growing demand for value-added broadband services. Ceragon's FibeAir product family complies with North American and international standards and is installed with over 150 customers in more than 50 countries. More information is available at
Ceragon Networks(R), CeraView(R), and the FibeAir(R) design mark are registered trademarks of Ceragon Networks Ltd., and Ceragon(TM), FibeAir(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. CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data
Three months ended Year ended
March 31, December
---------------------------- 31,
2004 2003 2003
---------------------------- ----------
Unaudited
----------------------------
Revenues $ 11,397 $ 7,037 $ 34,421
Cost of revenues 6,532 4,434 20,646
-------------- ------------- ------------
Gross profit 4,865 2,603 13,775
-------------- ------------- ------------
Operating expenses:
Research and development 2,186 2,172 8,946
Less - grants and
participations 493 450 1,976
-------------- ------------- ------------
Research and development, net 1,693 1,722 6,970
Sales and marketing, net 2,735 2,364 9,437
General and administrative 524 510 2,167
Amortization of deferred
stock compensation (a) 158 451 1,354
Non-recurring income, net - (82) (704)
-------------- ------------- ------------
Total operating expenses 5,110 4,965 19,224
-------------- ------------- ------------
Operating loss (245) (2,362) (5,449)
Financial income, net 253 264 1,159
Other income 31 - -
-------------- ------------- ------------
Net profit (loss) $ 39 $ (2,098) $ (4,290)
============== ============= ============
Basic and diluted net profit
(loss) per share $ 0.00 $ (0.09) $ (0.19)
============== ============= ============
Weighted average number of
shares used in computing
basic net income (loss)
per share 24,729,552 22,609,179 23,063,160
=============== ============= ============
(a) Amortization of deferred
stock compensation relates
to the following:
Cost of revenues $ 15 $ 37 $ 109
Research and development,
net 44 136 400
Sales and marketing, net 75 171 530
General and administrative 24 107 315
---------- --------------- -----------
Total amortization of
deferred stock compensation $ 158 $ 451 $ 1,354
========== =============== ===========
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
March 31, December 31,
2004 2003
----------- -------------
Unaudited
-----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $9,602 $7,307
Short-term bank deposits 6,648 10,556
Marketable securities 5,937 4,861
Trade receivables, net 7,436 5,056
Other accounts receivable and prepaid expenses 2,608 2,892
Inventories 13,045 11,103
----------- -------------
Total current assets 45,276 41,775
----------- -------------
LONG-TERM INVESTMENTS:
Long-term bank deposits 5,115 1,473
Long-term marketable securities 11,671 14,849
Long-term receivables 300 -
Severance pay funds 1,686 1,664
----------- -------------
Total long-term investments 18,772 17,986
----------- -------------
PROPERTY AND EQUIPMENT, NET 2,654 2,667
----------- -------------
Total assets $66,702 $62,428
=========== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $8,652 $5,662
Other accounts payable and accrued expenses 6,351 5,632
Total current liabilities 15,003 11,294
----------- -------------
ACCRUED SEVERANCE PAY 2,542 2,451
----------- -------------
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares of NIS 0.01 par value:
Authorized: 40,000,000 shares as of
December 31, 2003 and March 31, 2004;
Issued and outstanding: 24,675,313
shares and 24,783,791 shares as of
December 31, 2003 and March 31, 2004,
respectively 61 61
Additional paid-in capital 171,844 171,611
Deferred stock compensation (237) (395)
Accumulated other comprehensive income 44 -
Accumulated deficit (122,555) (122,594)
----------- -------------
Total shareholders' equity 49,157 48,683
----------- -------------
Total liabilities and shareholders' equity $66,702 $62,428
=========== =============
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. Important factors that could cause actual results to differ materially from forecasts and estimates include: Ceragon's limited operating history and history of losses; Ceragon's dependence on a limited number of key customers, independent manufacturers and suppliers; and the demand for Ceragon's products and technology. 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. Contacts:
Daphna Golden
Ceragon Networks Ltd.
+972-3-645-5513
ir@ceragon.com
CONTACT: Daphna Golden of Ceragon Networks Ltd., +972-3-645-5513 or ir@ceragon.com
Web site: http://www.ceragon.com/
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