Delay in Orders From India Hit Ceragon
3 July, 2019
Ceragon pushed from the second quarter approximately $20 million of revenues related to the orders from India. The company's stock in Nasdaq dropped 9.8%
Further delays of orders from India caused a reduction of approximately $20 million in the expected revenues Ceragon Networks. The company revealed that the orders, which the company had expected to be able to recognize during the second quarter of 2019, are now expected in the third quarter. As a result of the delay, approximately $20 million of revenue was pushed out from the second quarter.
“The remainder of Ceragon’s global business was slightly better than management’s expectations during the quarter,” the company said in a press release. Ceragon is currently estimates that its second quarter 2019 results be $71 million to $74 million. “We received one of the smaller orders from India in the last few days, and we expect to receive the other, larger orders in time to recognize the related revenue during Q3 and Q4,” said Ira Palti, president and CEO of Ceragon (photo above).
“These orders are part of an ongoing 4G expansion and densification effort in India that we have been supporting for the past 5 years. The reasons for the delay relate to customers’ internal processes, and the aggregate value of these orders has remained the same since we first began working on the details. Since we don’t expect an acceleration of the deployment schedule, the delay is expected to roll through the remaining quarters of 2019 and push a total of approximately $20 million of revenue related to India from 2019 into 2020.”
Ceragon provides wireless backhaul solutions for mobile networks. Following the announcement, the company’s stock in Nasdaq dropped 9.8%, and it is valued at Market Cap of $220.4 million.