CERAGON NETWORKS REPORTS 2024 FIRST QUARTER FINANCIAL RESULTS
Strong Demand and Bookings Bolster, Confidence of Continued Growth and Margin Expansion
Management Reiterates Full-Year 2024 Outlook
Q1 2024 Financial Highlights:
-
Revenues of
$88.5 million , up 6.1% year-over-year -
Operating income of
$4.2 million on a GAAP basis, or$7.6 million on a non-GAAP basis -
Net Income of
$0.4 million on a GAAP basis, and net income of$4.7 million on a non-GAAP basis -
EPS of
$0.00 per diluted share on a GAAP basis, or$0.05 per diluted share on a non-GAAP basis
Q 1 202 4 Business Highlights:
-
North America :
- Continued strong bookings, supported by demand for 5G capabilities
- Strongest region in terms of revenue, with record quarterly revenues -
India :
- Record quarterly bookings, including substantial orders from the approximately$150 million project from global integrator, in support of a network modernization project for a Tier 1 Operator
Primary First Quarter 2024 Financial Results:
Revenues were
Gross profit was
Operating income was $4.2 million compared to
Net income was
Non-GAAP results were as follows: Gross margin was 36.7%, operating profit was
Balance Sheet
Cash and cash equivalents were
For a reconciliation of GAAP to non-GAAP results, see the attached tables.
Revenue Breakout by Geography:
|
Q1 2024 |
|
33 % |
|
29 % |
EMEA |
17 % |
|
12 % |
APAC |
9 % |
Outlook
Management reiterated its 2024 outlook:
- Revenue of
$385 million to$405 million , representing growth of 11% to 17% compared to 2023 revenue. This guidance includes the contribution from Siklu, which was acquired inDecember 2023 . - Non-GAAP operating margins are targeted to be at least 10% at the mid-point of the revenue guidance.
- As a result, management expects increased non-GAAP profit and positive free cash flow for the full year of 2024.
Conference Call
The Company will host a Zoom web conference today at
Investors are invited to register by clicking here. All relevant information will be sent upon registration.
If you are unable to join the live call, a replay will be available on our website at www.ceragon.com within 24 hours after the call.
About
Ceragon Networks® and FibeAir® are registered trademarks of
Safe Harbor
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of
Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations therefrom will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause
We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent
The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors .
Ceragon Investor & Media Contact:
FNK IR
Tel. 1+646-809-4048
crnt@fnkir.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||
( |
|||
(Unaudited) |
|||
|
Three months ended
|
||
|
2024 |
|
2023 |
Revenues |
88,498 |
|
83,409 |
Cost of revenues |
56,430 |
|
55,233 |
|
|
|
|
Gross profit |
32,068 |
|
28,176 |
|
|
|
|
Operating expenses: |
|
|
|
Research and development, net |
8,847 |
|
7,938 |
Sales and marketing |
11,261 |
|
10,196 |
General and administrative |
5,863 |
|
5,324 |
Restructuring and related charges |
1,416 |
|
- |
Acquisition- and integration-related charges |
462 |
|
- |
|
|
|
|
Total operating expenses |
27,849 |
|
23,458 |
|
|
|
|
Operating income |
4,219 |
|
4,718 |
|
|
|
|
Financial expenses and others, net |
2,861 |
|
1,458 |
|
|
|
|
Income before taxes |
1,358 |
|
3,260 |
|
|
|
|
Taxes on income |
955 |
|
1,292 |
|
|
|
|
Net income |
403 |
|
1,968 |
|
|
|
|
Basic net income per share |
0.00 |
|
0.02 |
|
|
|
|
Diluted net income per share |
0.00 |
|
0.02 |
|
|
|
|
Weighted average number of shares used in computing basic net income per share |
85,520,712 |
|
84,354,297 |
|
|
|
|
Weighted average number of shares used in computing diluted net income per share |
87,584,818 |
|
84,992,254 |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
( |
|||
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Unaudited |
|
Audited |
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash equivalents |
28,783 |
|
28,237 |
Trade receivables, net |
97,386 |
|
104,321 |
Inventories |
61,029 |
|
68,811 |
Other accounts receivable and prepaid expenses |
17,434 |
|
16,571 |
|
|
|
|
Total current assets |
204,632 |
|
217,940 |
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
Severance pay and pension fund |
4,926 |
|
4,985 |
Property and equipment, net |
32,836 |
|
30,659 |
Operating lease right-of-use assets |
18,063 |
|
18,837 |
Intangible assets, net |
16,274 |
|
16,401 |
|
7,749 |
|
7,749 |
Other non-current assets |
1,899 |
|
1,954 |
|
|
|
|
Total non-current assets |
81,747 |
|
80,585 |
|
|
|
|
Total assets |
286,379 |
|
298,525 |
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
Trade payables |
56,511 |
|
67,032 |
Deferred revenues |
4,198 |
|
5,507 |
Short-term loans |
30,500 |
|
32,600 |
Operating lease liabilities |
3,734 |
|
3,889 |
Other accounts payable and accrued expenses |
25,454 |
|
23,925 |
|
|
|
|
Total current liabilities |
120,397 |
|
132,953 |
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
Accrued severance pay and pension |
8,988 |
|
9,399 |
Deferred revenues |
670 |
|
670 |
Operating lease liabilities |
12,997 |
|
13,716 |
Other long-term payables |
8,310 |
|
7,768 |
|
|
|
|
Total long-term liabilities |
30,965 |
|
31,553 |
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
Share capital |
224 |
|
224 |
Additional paid-in capital |
438,412 |
|
437,161 |
|
(20,091) |
|
(20,091) |
Other comprehensive loss |
(8,743) |
|
(8,087) |
Accumulated deficit |
(274,785) |
|
(275,188) |
|
|
|
|
Total shareholders' equity |
135,017 |
|
134,019 |
|
|
|
|
Total liabilities and shareholders' equity |
286,379 |
|
298,525 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
|||
( |
|||
(Unaudited) |
|||
|
|||
|
Three months ended
|
||
|
2024 |
|
2023 |
Cash flow from operating activities: |
|
|
|
Net income |
403 |
|
1,968 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
2,939 |
|
2,553 |
Loss from sale of property and equipment, net |
- |
|
10 |
Stock-based compensation expenses |
904 |
|
1,169 |
Decrease in accrued severance pay and pensions, net |
(352) |
|
(64) |
Decrease (increase) in trade receivables, net |
6,776 |
|
(290) |
Decrease (increase) in other assets (including other
accounts |
(731) |
|
996 |
Decrease in inventory |
7,369 |
|
3,166 |
Decrease in operating lease right-of-use assets |
932 |
|
1,011 |
Decrease in trade payables |
(11,486) |
|
(6,790) |
Increase (decrease) in other accounts payable and accrued expenses |
2,102 |
|
(294) |
Decrease in operating lease liability |
(1,020) |
|
(1,366) |
Increase (decrease) in deferred revenues |
(1,309) |
|
1,440 |
Net cash provided by operating activities |
6,527 |
|
3,509 |
|
|
|
|
Cash flow from investing activities: |
|
|
|
Purchases of property and equipment, net |
(3,393) |
|
(3,142) |
Software development costs capitalized |
(313) |
|
(1,288) |
Net cash used in investing activities |
(3,706) |
|
(4,430) |
|
|
|
|
Cash flow from financing activities: |
|
|
|
Proceeds from exercise of stock options |
258 |
|
- |
Proceeds from (repayments of) bank credits and loans, net |
(2,100) |
|
4,350 |
Net cash provided by (used in) financing activities |
(1,842) |
|
4,350 |
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(433) |
|
46 |
|
|
|
|
Increase in cash and cash equivalents |
546 |
|
3,475 |
|
|
|
|
Cash and cash equivalents at the beginning of the period |
28,237 |
|
22,948 |
|
|
|
|
Cash and cash equivalents at the end of the period |
28,783 |
|
26,423 |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS |
|||
( |
|||
(Unaudited) |
|||
|
|||
|
Three months ended
|
||
|
2024 |
|
2023 |
|
|
|
|
GAAP Cost of revenues |
56,430 |
|
55,233 |
Stock-based compensation expenses |
(131) |
|
(180) |
Amortization of acquired intangible assets |
(189) |
|
- |
Excess cost on acquired inventory in business combination (*) |
(124) |
|
- |
Non-GAAP Cost of revenues |
55,986 |
|
55,053 |
|
|
|
|
GAAP Gross profit |
32,068 |
|
28,176 |
Stock-based compensation expenses |
131 |
|
180 |
Amortization of acquired intangible assets |
189 |
|
- |
Excess cost on acquired inventory in business combination (*) |
124 |
|
- |
Non-GAAP Gross profit |
32,512 |
|
28,356 |
|
|
|
|
|
8,847 |
|
7,938 |
Stock-based compensation expenses |
(152) |
|
(246) |
|
8,695 |
|
7,692 |
|
|
|
|
GAAP Sales and marketing expenses |
11,261 |
|
10,196 |
Stock-based compensation expenses |
(296) |
|
(376) |
Amortization of acquired intangible assets |
(271) |
|
- |
Non-GAAP Sales and marketing expenses |
10,694 |
|
9,820 |
|
|
|
|
GAAP General and administrative expenses |
5,863 |
|
5,324 |
Stock-based compensation expenses |
(325) |
|
(368) |
Non-GAAP General and administrative expenses |
5,538 |
|
4,956 |
|
|
|
|
GAAP Restructuring and related charges |
1,416 |
|
- |
Restructuring and related charges |
(1,416) |
|
- |
Non-GAAP Restructuring and related charges |
- |
|
- |
|
|
|
|
GAAP Acquisition- and integration-related charges |
462 |
|
- |
Acquisition- and integration-related charges |
(462) |
|
- |
Non-GAAP Acquisition- and integration-related charges |
- |
|
- |
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
( (Unaudited)
|
|||
|
|
||
|
|
||
|
Three months ended
|
||
|
2024 |
|
2023 |
|
|
|
|
GAAP Operating income |
4,219 |
|
4,718 |
Stock-based compensation expenses |
904 |
|
1,170 |
Amortization of acquired intangible assets |
460 |
|
- |
Excess cost on acquired inventory in business combination (*) |
124 |
|
- |
Restructuring and other charges |
1,416 |
|
- |
Acquisition- and integration-related charges |
462 |
|
- |
Non-GAAP Operating income |
7,585 |
|
5,888 |
|
|
|
|
GAAP Financial expenses and others, net |
2,861 |
|
1,458 |
Leases – financial income |
112 |
|
358 |
Non-cash revaluation associated with business combination |
(673) |
|
- |
Non-GAAP Financial expenses and others, net |
2,300 |
|
1,816 |
|
|
|
|
GAAP Tax expenses |
955 |
|
1,292 |
Non - cash tax adjustments |
(413) |
|
(853) |
Non-GAAP Tax expenses |
542 |
|
439 |
|
|
|
|
GAAP Net income |
403 |
|
1,968 |
Stock-based compensation expenses |
904 |
|
1,170 |
Amortization of acquired intangible assets |
460 |
|
- |
Excess cost on acquired inventory in business combination (*) |
124 |
|
- |
Restructuring and other charges |
1,416 |
|
- |
Acquisition- and integration-related charges |
462 |
|
- |
Leases – financial income |
(112) |
|
(358) |
Non-cash revaluation associated with business combination |
673 |
|
- |
Non - cash tax adjustments |
413 |
|
853 |
Non-GAAP Net income |
4,743 |
|
3,633 |
|
|
|
|
GAAP Basic net income per share |
0.00 |
|
0.02 |
|
|
|
|
GAAP Diluted net income per share |
0.00 |
|
0.02 |
|
|
|
|
Non-GAAP Diluted net income per share (**) |
0.05 |
|
0.04 |
|
|
|
|
(*) Consists of charges to cost of revenues for the difference between the fair value of acquired inventory in business
(**) Weighted average number of shares used in computing diluted net income per share is the same as in GAAP |
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