Ceragon Reports 11.5% Increase in Quarterly Revenue, GAAP EPS of $0.09 Per Share in the Second Quarter
Significant Penetration into Private Networks
Management Reiterates Full-Year 2024 Outlook
Q2 2024 Financial Highlights:
- Revenues of
$96.1 million - Operating income of
$10.4 million on a GAAP basis, or$13.1 million on a non-GAAP basis - Net Income of
$7.8 million on a GAAP basis, and net income of$9.9 million on a non-GAAP basis - EPS of
$0.09 per diluted share on a GAAP basis, or$0.11 per diluted share on a non-GAAP basis
Q2 202 4 Business Highlights:
-
India :
- Record quarterly revenues since Q2 2018, including revenue from the new, top-tier customer
- Substantial ramp up in demand for new IP-50CX product, with more than 20,000 radio units delivered -
North America :
- Bookings remain strong, supported by Private Network wins
- Significant Private Network orders, including nine new customers
- Six consecutive quarters of revenue above$20 million
Primary Second Quarter 2024 Financial Results:
Revenues were $96.1 million, up 11.5% from
GAAP Operating income was $10.4 million compared with
GAAP Net income was
Non-GAAP results were as follows: Gross margin was 35.2%, 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:
|
Q2 2024 |
|
37 % |
|
24 % |
EMEA |
20 % |
|
10 % |
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
Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more, who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed.
Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery.
For more information please visit: www.ceragon.com
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
|
|
Six months ended
|
|
||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Revenues |
96,088 |
|
86,151 |
|
184,586 |
|
169,560 |
|
||
Cost of revenues |
62,627 |
|
55,795 |
|
119,057 |
|
111,028 |
|
||
|
|
|
|
|
|
|
|
|
||
Gross profit |
33,461 |
|
30,356 |
|
65,529 |
|
58,532 |
|
||
|
|
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
|
|
||
Research and development, net |
8,385 |
|
7,812 |
|
17,232 |
|
15,750 |
|
||
Sales and Marketing |
11,508 |
|
9,778 |
|
22,769 |
|
19,974 |
|
||
General and administrative |
2,295 |
|
6,218 |
|
8,158 |
|
11,542 |
|
||
Restructuring and related charges |
- |
|
897 |
|
1,416 |
|
897 |
|
||
Acquisition- and integration-related charges |
915 |
|
- |
|
1,377 |
|
- |
|
||
|
|
|
|
|
|
|
|
|
||
Total operating expenses |
23,103 |
|
24,705 |
|
50,952 |
|
48,163 |
|
||
|
|
|
|
|
|
|
|
|
||
Operating income |
10,358 |
|
5,651 |
|
14,577 |
|
10,369 |
|
||
|
|
|
|
|
|
|
|
|
||
Financial expenses and others, net |
1,916 |
|
1,886 |
|
4,777 |
|
3,344 |
|
||
|
|
|
|
|
|
|
|
|
||
Income before taxes |
8,442 |
|
3,765 |
|
9,800 |
|
7,025 |
|
||
|
|
|
|
|
|
|
|
|
||
Taxes on income |
609 |
|
1,677 |
|
1,564 |
|
2,969 |
|
||
|
|
|
|
|
|
|
|
|
||
Net income |
7,833 |
|
2,088 |
|
8,236 |
|
4,056 |
|
||
|
|
|
|
|
|
|
|
|
||
Basic net income per share |
0.09 |
|
0.02 |
|
0.10 |
|
0.05 |
|
||
Diluted net income per share |
0.09 |
|
0.02 |
|
0.09 |
|
0.05 |
|
||
Weighted average number of shares used in computing basic net income per share |
85,743,770 |
|
84,365,168 |
|
85,632,241 |
|
84,359,762 |
|
||
Weighted average number of shares used in computing diluted net income per share |
87,921,507 |
|
85,312,954 |
|
87,753,163 |
|
85,152,634 |
|
||
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
( |
|||||
|
|||||
|
|
|
|
|
|
|
2024 |
|
2023 |
|
|
|
Unaudited |
|
Audited |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
26,303 |
|
28,237 |
|
|
Trade receivables, net |
112,895 |
|
104,321 |
|
|
Inventories |
59,490 |
|
68,811 |
|
|
Other accounts receivable and prepaid expenses |
17,601 |
|
16,571 |
|
|
|
|
|
|
|
|
Total current assets |
216,289 |
|
217,940 |
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
Severance pay and pension fund |
4,807 |
|
4,985 |
|
|
Property and equipment, net |
33,853 |
|
30,659 |
|
|
Operating lease right-of-use assets |
17,817 |
|
18,837 |
|
|
Intangible assets, net |
16,510 |
|
16,401 |
|
|
|
7,749 |
|
7,749 |
|
|
Other non-current assets |
2,010 |
|
1,954 |
|
|
|
|
|
|
|
|
Total non-current assets |
82,746 |
|
80,585 |
|
|
|
|
|
|
|
|
Total assets |
299,035 |
|
298,525 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Trade payables |
67,405 |
|
67,032 |
|
|
Deferred revenues |
2,561 |
|
5,507 |
|
|
Short-term loans |
28,450 |
|
32,600 |
|
|
Operating lease liabilities |
3,151 |
|
3,889 |
|
|
Other accounts payable and accrued expenses |
25,756 |
|
23,925 |
|
|
|
|
|
|
|
|
Total current liabilities |
127,323 |
|
132,953 |
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
Accrued severance pay and pension |
8,657 |
|
9,399 |
|
|
Deferred revenues |
670 |
|
670 |
|
|
Operating lease liabilities |
13,142 |
|
13,716 |
|
|
Other long-term payables |
5,742 |
|
7,768 |
|
|
|
|
|
|
|
|
Total long-term liabilities |
28,211 |
|
31,553 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
Share capital |
224 |
|
224 |
|
|
Additional paid-in capital |
440,173 |
|
437,161 |
|
|
|
(20,091) |
|
(20,091) |
|
|
Other comprehensive loss |
(9,853) |
|
(8,087) |
|
|
Accumulated deficit |
(266,952) |
|
(275,188) |
|
|
|
|
|
|
|
|
Total shareholders' equity |
143,501 |
|
134,019 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
299,035 |
|
298,525 |
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
|||||||
( |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Three months ended
|
|
Six months ended
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
Net income |
7,833 |
|
2,088 |
|
8,236 |
|
4,056 |
Adjustments to reconcile net income to net cash provided by |
|
|
|
|
|
|
|
Depreciation and amortization |
2,941 |
|
2,582 |
|
5,880 |
|
5,135 |
Loss from sale of property and equipment, net |
169 |
|
20 |
|
169 |
|
30 |
Stock-based compensation expense |
1,566 |
|
808 |
|
2,470 |
|
1,977 |
Decrease in accrued severance pay and pensions, net |
(212) |
|
(280) |
|
(564) |
|
(344) |
Increase in trade receivables, net |
(16,023) |
|
(6,620) |
|
(9,247) |
|
(6,910) |
Decrease (increase) in other assets (including other accounts |
(652) |
|
(445) |
|
(1,383) |
|
551 |
Decrease in inventory |
1,186 |
|
893 |
|
8,555 |
|
4,059 |
Decrease in operating lease right-of-use assets |
1,694 |
|
886 |
|
2,626 |
|
1,897 |
Increase (decrease) in trade payables |
12,075 |
|
2,835 |
|
589 |
|
(3,955) |
Increase (decrease) in other accounts payable and accrued |
(2,196) |
|
2,620 |
|
(94) |
|
2,326 |
Decrease in operating lease liability |
(1,922) |
|
(1,152) |
|
(2,942) |
|
(2,518) |
Increase (decrease) in deferred revenues |
(1,637) |
|
(1,054) |
|
(2,946) |
|
386 |
Net cash provided by operating activities |
4,822 |
|
3,181 |
|
11,349 |
|
6,690 |
Cash flow from investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment, net |
(4,562) |
|
(2,330) |
|
(7,955) |
|
(5,472) |
Software development costs capitalized |
(676) |
|
(549) |
|
(989) |
|
(1,837) |
Net cash used in investing activities |
(5,238) |
|
(2,879) |
|
(8,944) |
|
(7,309) |
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
284 |
|
30 |
|
542 |
|
30 |
Proceeds from (repayments of) bank credits and loans, net |
(2,050) |
|
(2,300) |
|
(4,150) |
|
2,050 |
Net cash provided by (used in) financing activities |
(1,766) |
|
(2,270) |
|
(3,608) |
|
2,080 |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(298) |
|
74 |
|
(731) |
|
120 |
Increase (decrease) in cash and cash equivalents |
(2,480) |
|
(1,894) |
|
(1,934) |
|
1,581 |
Cash and cash equivalents at the beginning of the period |
28,783 |
|
26,423 |
|
28,237 |
|
22,948 |
Cash and cash equivalents at the end of the period |
26,303 |
|
24,529 |
|
26,303 |
|
24,529 |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS |
|||||||
( |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Three months ended
|
|
Six months ended
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of revenues |
62,627 |
|
55,795 |
|
119,057 |
|
111,028 |
Stock-based compensation expenses |
(134) |
|
(48) |
|
(265) |
|
(228) |
Amortization of acquired intangible assets |
(189) |
|
- |
|
(378) |
|
- |
Excess cost on acquired inventory in business combination (*) |
- |
|
- |
|
(124) |
|
- |
Non-GAAP cost of revenues |
62,304 |
|
55,747 |
|
118,290 |
|
110,800 |
|
|
|
|
|
|
|
|
GAAP gross profit |
33,461 |
|
30,356 |
|
65,529 |
|
58,532 |
Stock-based compensation expenses |
134 |
|
48 |
|
265 |
|
228 |
Amortization of acquired intangible assets |
189 |
|
- |
|
378 |
|
- |
Excess cost on acquired inventory in business combination (*) |
- |
|
- |
|
124 |
|
- |
Non-GAAP gross profit |
33,784 |
|
30,404 |
|
66,296 |
|
58,760 |
|
|
|
|
|
|
|
|
|
8,385 |
|
7,812 |
|
17,232 |
|
15,750 |
Stock-based compensation expenses |
(184) |
|
(232) |
|
(336) |
|
(478) |
|
8,201 |
|
7,580 |
|
16,896 |
|
15,272 |
|
|
|
|
|
|
|
|
GAAP Sales and marketing expenses |
11,508 |
|
9,778 |
|
22,769 |
|
19,974 |
Stock-based compensation expenses |
(387) |
|
(363) |
|
(683) |
|
(739) |
Amortization of acquired intangible assets |
(117) |
|
- |
|
(388) |
|
- |
Non-GAAP Sales and marketing expenses |
11,004 |
|
9,415 |
|
21,698 |
|
19,235 |
|
|
|
|
|
|
|
|
GAAP General and administrative expenses |
2,295 |
|
6,218 |
|
8,158 |
|
11,542 |
Stock-based compensation expenses |
(861) |
|
(167) |
|
(1,186) |
|
(535) |
Non-GAAP General and administrative expenses |
1,434 |
|
6,051 |
|
6,972 |
|
11,007 |
|
|
|
|
|
|
|
|
GAAP Restructuring and related charges |
- |
|
897 |
|
1,416 |
|
897 |
Restructuring and related charges |
- |
|
(897) |
|
(1,416) |
|
(897) |
Non-GAAP Restructuring and related charges |
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
GAAP Acquisition- and integration-related charges |
915 |
|
- |
|
1,377 |
|
- |
Acquisition- and integration-related charges |
(915) |
|
- |
|
(1,377) |
|
- |
Non-GAAP Acquisition- and integration-related charges |
- |
|
- |
|
- |
|
- |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
( (Unaudited) |
|||||||||||
|
|||||||||||
|
Three months ended
|
|
Six months ended
|
|
|||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|||
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
GAAP Operating income |
10,358 |
|
5,651 |
|
14,577 |
|
10,369 |
|
|||
Stock-based compensation expenses |
1,566 |
|
810 |
|
2,470 |
|
1,980 |
|
|||
Amortization of acquired intangible assets |
306 |
|
- |
|
766 |
|
- |
|
|||
Excess cost on acquired inventory in business combination (*) |
- |
|
- |
|
124 |
|
- |
|
|||
Restructuring and other charges |
- |
|
897 |
|
1,416 |
|
897 |
|
|||
Acquisition- and integration-related charges |
915 |
|
- |
|
1,377 |
|
- |
|
|||
Non-GAAP Operating income |
13,145 |
|
7,358 |
|
20,730 |
|
13,246 |
|
|||
|
|
|
|
|
|
|
|
|
|||
GAAP Financial expenses and others, net |
1,916 |
|
1,886 |
|
4,777 |
|
3,344 |
|
|||
Leases – financial income |
207 |
|
285 |
|
319 |
|
643 |
|
|||
Non-cash revaluation associated with business combination |
477 |
|
- |
|
(196) |
|
- |
|
|||
Non-GAAP Financial expenses and others, net |
2,600 |
|
2,171 |
|
4,900 |
|
3,987 |
|
|||
|
|
|
|
|
|
|
|
|
|||
GAAP Tax expenses |
609 |
|
1,677 |
|
1,564 |
|
2,969 |
|
|||
Non cash tax adjustments |
- |
|
(890) |
|
(413) |
|
(1,743) |
|
|||
Non-GAAP Tax expenses |
609 |
|
787 |
|
1,151 |
|
1,226 |
|
|||
|
|
|
|
|
|
|
|
|
|||
GAAP Net income |
7,833 |
|
2,088 |
|
8,236 |
|
4,056 |
|
|||
Stock-based compensation expenses |
1,566 |
|
810 |
|
2,470 |
|
1,980 |
|
|||
Amortization of acquired intangible assets |
306 |
|
- |
|
766 |
|
- |
|
|||
Excess cost on acquired inventory in business combination (*) |
- |
|
- |
|
124 |
|
- |
|
|||
Restructuring and other charges |
- |
|
897 |
|
1,416 |
|
897 |
|
|||
Acquisition- and integration-related charges |
915 |
|
- |
|
1,377 |
|
- |
|
|||
Leases – financial income |
(207) |
|
(285) |
|
(319) |
|
(643) |
|
|||
Non-cash revaluation associated with business combination |
(477) |
|
- |
|
196 |
|
- |
|
|||
Non-cash tax adjustments |
- |
|
890 |
|
413 |
|
1,743 |
|
|||
Non-GAAP Net income |
9,936 |
|
4,400 |
|
14,679 |
|
8,033 |
|
|||
GAAP basic net income per share |
0.09 |
|
0.02 |
|
0.10 |
|
0.05 |
|
|||
GAAP diluted net income per share |
0.09 |
|
0.02 |
|
0.09 |
|
0.05 |
|
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Non-GAAP Diluted net income per share (**) |
0.11 |
|
0.05 |
|
0.17 |
|
0.09 |
|
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|
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|
|
|
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(*) Consists of charges to cost of revenues for the difference between the fair value of acquired inventory in business |
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(**) Weighted average number of shares used in computing diluted net income per share is the same as in GAAP |
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