Ceragon sales down 16% from 2015; Margins improved
17 February, 2017
Ceragon Networks Ltd. (NASDAQ: CRNT) reported fourth quarter 2016 sales of $84.7 million, up 12% from the fourth quarter of 2015, and up 7% from the third quarter of 2016. Net income for the third quarter of 2016 was $3.5 million. Cash and cash equivalents: $36.3 million at December 31, 2016. For the full Year 2016 revenues totaled $293.6 million, down 16% from 2015. But gross margin improved to 33.8%, compared to 29.5% in 2015.
“The continued success of our strategy to focus on increasing net income and free cash flow resulted in significant improvement in these key metrics in 2016, and enabled us to maintain a strong cash position while also substantially reducing debt,” said Ira Palti, president and CEO of Ceragon. “We have a strong order book, particularly with the large orders we received in Q1 from a customer in India. However, the timing of delivering various elements of these orders may cause greater than normal quarter-to-quarter fluctuations in our results during the year. After integrating these orders into our overall operating plan, we now feel comfortable raising our net income target for 2017, on a constant currency basis, from the one we set in November 2016.”
Ceragon from Tel-aviv, Israel, develops wireless back-haul infrastructure solutions. Its flagship product is FibeAir IP-20 Assured Platform, that operates at every microwave and millimeter-wave band to match the requirements of diverse network scenarios. It is based on Ceragon’s multi-core radio technology to enable high-capacity and high spectral efficiency microwave and millimeter-wave operations.
In January 2017 Ceragon has announced that a tier 1 mobile operator in India selected Ceragon’s IP-20 Platform, placing over $60 million in new orders so far in 2017 to significantly expand 4G LTE service coverage and increase network capacity. In view of these orders, the company’s preliminary expectation for revenues in the first half of 2017 has been increased by $20 to $25 million, with most of the impact expected in the second quarter of 2017.