Business
Ceragon Networks Reports Financial Results for the First Quarter of 2020
- Weak COVID-19-driven results countered by strong bookings and renewed orders from strategic customers - - Increasing demand for broadband connectivity in
About this update from Ceragon Networks Ltd.
[{"type":"text","content":"- Weak COVID-19-driven results countered by strong bookings and renewed orders from strategic customers -\n - Increasing demand for broadband connectivity in the 'new normal' expected to accelerate 5G network deployments, creating long-term demand for Ceragon wireless hauling solutions -\n\n\nLITTLE FALLS, New Jersey, May 4, 2020 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless hauling specialist, today reported results for the first quarter ended March 31, 2020. \nFirst Quarter 2020 Highlights \nWeak results reflecting COVID-19 challenges compounded by normal Q1 seasonality Strong bookings (book-to-bill ratio well above 1) as service providers addressed increased demand for broadband connectivity Return of India as major source of business; highest Q1 bookings in Europe in 6 years Management believes trends created by the COVID-19 crisis will accelerate the global 5G network rollout, driving long-term growth momentum for Ceragon. However, management remains cautious because of the risk of a potential worldwide recession. Primary Financial Results:\nRevenues: $55.9 million compared with $69.2 million for Q1'19 and $71.3 million for Q4'19. \nGross margin: 25.1% compared to 35.6% for Q1'19 and 31.7% for Q4'19. \nOperating income (loss): $(6.0) million compared with $3.2 million for Q1'19 and $(2.2) million for Q4'19. \nNet income (loss): $(6.9) million, $(0.09) per diluted share compared with $0.8 million, $0.01 per diluted share for Q1'19 and $(4.1) million, or $(0.05) per diluted share for Q4'19.\nNon-GAAP results: gross margin 25.1%, operating loss $(5.6) million, and net loss $(6.7) million, or $(0.08) per diluted share. For reconciliation of GAAP to non-GAAP results, see the attached tables.\nCash and cash equivalents: $44.1 million at March 31, 2020, compared to $23.9 million at December 31, 2019.\nCommenting on the results, Ira Palti, President and CEO of Ceragon, said, \"Our results were in line with the business update we provided on April 6th, reflecting the normal seasonality of the first quarter compounded by the disruption created by the COVID-19 environment. At the same time, the sweeping changes that the pandemic has made in the way we all work, shop, learn and stay entertained have created a global surge in demand for broadband capacity that has increased demand for our products. Although no on...