Business
Ceragon Networks Reports Financial Results For the Second Quarter of 2020
- Sequential improvement in revenues, margin, net results and $4 million in positive cash flow from operating and investing activities reflect improving
About this update from Ceragon Networks Ltd.
[{"type":"text","content":"- Sequential improvement in revenues, margin, net results and $4 million in positive cash flow from operating and investing activities reflect improving business environment and Company's successful focus on execution -\n - Initial return to the 'new normal' accelerating plans for 5G and rural bandwidth expansion projects expected to increase long-term demand for Ceragon's wireless hauling solutions -\n\n\nLITTLE FALLS, N.J., Aug. 3, 2020 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless hauling specialist, today reported results for the second quarter ended June 30, 2020.\nSecond Quarter 2020 Highlights:\n$4 million in positive cash flow from operating and investing activities, along with rising revenues, margins and net results compared with Q1'20, reflecting an improving business environment in most regions and the Company's successful focus on execution. Book-to-bill ratio above 1 as multiple service providers accelerate their 4G expansion projects and ISPs move swiftly to fill capacity needs. Effect of COVID-19 differed from region to region: business in North America, Europe and APAC remained stable; India emerged from lockdown in mid-quarter; a major new project with a new customer was signed in Africa; and Latin America bookings were weaker. Management expects trends created by the COVID-19 crisis to accelerate 5G network rollouts, serving as a future growth driver. However, for the short-term, the COVID-19 environment creates uncertainty. Primary Financial Results:\nRevenues: $62.4 million compared with $73.0 million for Q2'19 and $55.9 million for Q1'20. \nGross margin: 26.4% compared to 36.1% for Q2'19 and 25.1% for Q1'20. \nOperating income (loss): $(3.5) million compared with $4.1 million for Q2'19 and $(6.0) million for Q1'20. \nNet income (loss): $(5.5) million, or $(0.07) per diluted share compared with $0.8 million, or $0.01 per diluted share for Q2'19 and $(6.9) million, or $(0.09) per diluted share for Q1'20.\nNon-GAAP results: gross margin 26.5%, operating loss $(3.0) million, and net loss $(4.9) million, or $(0.06) per diluted share. For reconciliation of GAAP to non-GAAP results, see the attached tables.\nCash and cash equivalents: $35.2 million at June 30, 2020, compared to $44.1 million at March 31, 2020.\nIra Palti, President and CEO of Ceragon, commented, \"Our results for the second...