Ceragon reported 36% decrease in sales
11 May, 2016
CEO Ira Palti: “We believe that revenue will grow from the current level during the remainder of the year"
CEO Ira Palti: “We believe that revenue will grow from the current level during the remainder of the year”
Ceragon Networks (NASDAQ and TLV CRNT) reported $59.8 million revenues in Q1 2016, a 36% decrease compared to the same quarter last year, and a 21% decrease from Q4 2015. The company’s net loss shrank to $0.4 million compared to a $7.0 million net loss in Q4 2015.
A much more positive note in report was the increase in net profit. In Q1 2016, net profit rose to 35.6% compared to 25.9% in the same quarter last year and 32% in q4 2015. The company also reported an operating profit of $1.2 million compared to a $0.6 operating profit in Q1 2015.following the better than expected report, Ceragon’s stock leaped by more than 20%.
“In the first quarter of 2016, higher gross margin on the low level of revenue enabled us to report an operating profit,” said Ira Palti, president and CEO of Ceragon. “In addition, strong cash flow results increased our cash position to $41.8 million, which exceeded debt by over $10 million, improving our financial position. Based on our recent bookings and pipeline of potential business, we believe that revenue will grow from the current level during the remainder of the year.”
Tel Aviv based Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice, data, and multimedia services worldwide. Its wireless backhaul solutions use microwave technology to transfer telecommunication traffic between base stations, small sells, and the core of the service providere’s network. The company also provides wireless fronthaul solutions that use microwave technology for communication between LTE/LTE-advanced base band digital unit stations and remote radio heads.
In addition, it offers IP-20 Platform solutions for various short-haul and long-haul applications, including FibeAir IP-20G and IP-20GX, FibeAir IP-20N/IP-20A, FibeAir IP-20C, FibeAir IP-20S, FibeAir IP-20E, FibeAir IP-20C HP, FibeAir IP-20LH, Evolution IP-20 LH, and PointLink. Its solutions have been integrated by more than 460 service providers worldwide, as well as hunders of companies operating private networks. The company’s stock are traded in Tel Aviv and NASDAQ. Its current (11/05/16) market cap is 128.99 million.
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