CRNT beats by a penny and raised rev guidance.
Ceragon Networks(R) Reports Record First Quarter 2007 Financial ResultsLast update: 4/30/2007 8:01:00 AM"Strong Demand From Emerging Markets Generates Higher Revenues and Bookings" TEL AVIV, Israel, April 30, 2007 /PRNewswire-FirstCall via COMTEX/ -- Ceragon Networks Ltd. (CRNT), , a leading provider of high-capacity wireless backhaul solutions, today reported results for the first quarter which ended March 31, 2007. Revenues for the first quarter of 2007 were $33.9 million, up 59% from $21.3 million for the first quarter of 2006 and 3% from $32.9 million in the fourth quarter of 2006. Net income in accordance with Generally Accepted Accounting Principles (GAAP) for the first quarter of 2007 was $2.6 million or $0.10 per basic share and $0.09 per diluted share. On a non-GAAP basis net income for the first quarter, excluding $390,000 of equity-based compensation expenses, was $3.0 million, or $0.11 per basic share and $0.10 per diluted share, compared to non-GAAP net income of $1.0 million, or $0.04 per basic and diluted share in the first quarter of 2006. (Refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP.) Gross margin on a GAAP basis in the first quarter of 2007 was 36.3% of revenues. On a non-GAAP basis gross margin was 36.4% of revenues. Cash and cash equivalents, short- and long-term deposits and short- and long-term marketable securities totaled $29.5 million at March 31, 2007. "We are pleased to report that we began the year with record results and strong bookings," said Ira Palti, President and CEO of Ceragon. "Based on strong demand from emerging markets, particularly in the Asia Pacific region, we are revising our revenue growth target for 2007 upward from an increase of around 25% to an increase of about 30% over 2006 ." "The need for more high-capacity wireless backhaul is being fueled by growing demand for mobile data services in the developed world, combined with growth in cellular subscribers in emerging economies. We are also benefiting from the migration to all-IP networks and broadband connectivity via WiMAX. We are leading the market with field-proven high-capacity solutions including a native IP solution as well as a multi-service solution combining native IP with native TDM capabilities on a single flexible platform. In addition to our continuous cost reduction program, we are focused on increasing our production capacity and shortening delivery times in order to address the widespread demand," said Palti. A conference call discussing Ceragon's results for the first quarter of 2007, business conditions, and outlook, will take place today, April 30, 2007, at 9:00 a.m. (EDT). Investors can join the Company's teleconference by calling (800)-230-1766 or international (612)-332-0725 at 8:50 a.m. EDT. Investors are also invited to listen to the call live via the Internet by accessing Ceragon Networks' website at the investors' page: , selecting the webcast link, and following the registration instructions. If you are unable to join us live, the replay numbers are: (800)-475-6701 or international (320)-365-3844. A replay of both the call and the webcast link will be accessible through May 30, 2007. About Ceragon Networks Ltd. Ceragon Networks Ltd. (NASDAQ and TASE: CRNT) is a leading provider of high-capacity wireless backhaul solutions for cellular and fixed wireless operators, enterprises and government organizations. Ceragon's modular FibeAir(R) product family is recognized as the gold standard for backhaul transmission and is also one of the top solutions chosen by cellular operators for SONET/SDH rings. A scalable, future-proof solution for wireless transport of broadband services, FibeAir operates across multiple frequencies for IP and SONET/SDH protocols, supporting the emerging needs of next-generation networks that are evolving to all-IP based services, including triple-play. It leads the market in IP backhaul, offering a unique, native IP solution that provides the efficient, robust connectivity required for WiFi, WiMAX and converged networks. Ceragon supports its growing base of more than 180 customers in 70 countries by operating an extensive sales network comprising 17 offices and numerous partners located around the world. More information is available at . Ceragon Networks(R), CeraView(R), FibeAir(R) and the FibeAir(R) design mark are registered trademarks of Ceragon Networks Ltd., and Ceragon(TM), PolyView(TM), ConfigAir(TM), CeraMon(TM), EtherAir(TM), QuickAir(TM), QuickAir Partner Program(TM), QuickAir Partner Certification Program(TM), QuickAir Partner Zone(TM), EncryptAir(TM) and Microwave Fiber(TM) are trademarks of Ceragon Networks Ltd.
