7/26/2002 - Ceragon Networks Ltd. (NASDAQ: CRNT), www.ceragon.com, a global provider of high-capacity broadband wireless systems, today reported results for the second quarter of 2002, which ended June 30, 2002. Revenues for the second quarter of 2002 were $4.0 million, as compared to $3.3 million for the first quarter of 2002, an increase of over 20%.
Pro-forma gross profit (*) for the second quarter was $1.2 million, or 29% of revenues, up from a pro-forma gross profit of $0.8 million, or 24.6% of revenues, in the first quarter of 2002. Pro-forma net loss for the second quarter of 2002 was $(3.0) million, or $(0.14) pro-forma net loss per ordinary share, as compared to $(3.4) million, or $(0.15) pro-forma net loss per ordinary share, for the first quarter of 2002. The company ended the second quarter of 2002 with $48.0 million in cash and liquid investments. For an explanation of pro-forma results see the notes at * below.
"This past quarters' results show consistent improvement, and our visibility has increased," said Shraga Katz, president and CEO, Ceragon Networks Ltd. "As the market fluctuates, our strategy at Ceragon remains steady - to lay a solid foundation for long-term company growth by focusing on cellular carriers, geographic diversity and product innovation".
Ceragon recently announced a new multi-year contract with Cellcom, a cellular carrier and BellSouth affiliate. Cellcom is currently commercially deploying Ceragon's FibeAir™ wireless ring solutions across its cellular network. Furthermore, Ceragon continues to expand its existing customer relationships, receiving repeat orders from cellular carriers and incumbent service providers. During the past quarter, Ceragon sustained its focus on geographic diversity and expanded within the Eastern European and Asia Pacific regions. Ceragon strengthened its relationships with carriers in Europe, the Middle East, and Africa, who, collectively, generated the majority of revenues.
A conference call discussing Ceragon's results for the second quarter of 2002 will take place today, July 25, 2002, at 11:00 a.m. (EDT). Details can be found on Ceragon's website at www.ceragon.com. A replay of the call will be accessible approximately two hours later on Ceragon's website. The replay will be available through July 29, 2002.
* Pro-Forma Financial Presentation
Pro-forma results are presented for informational purposes only. Pro-forma financial results for all periods presented exclude the effect of stock-based, non-cash deferred compensation expenses. In addition, the pro-forma results for the three months ended June 30, 2001 exclude one-time charges of $4.7 million due to restructuring plans presented in restructuring costs. The pro-forma results for the six months ended June 30, 2001 exclude one-time charges of $11.0 million for an inventory write-down presented in cost of revenues, $2.6 million for doubtful debt presented in general and administrative expenses, and $4.7 million due to restructuring plans presented in restructuring costs. The pro-forma results for the year ended December 31, 2001 exclude one-time charges of $28.8 million for an inventory write-down and a fixed asset impairment presented in cost of revenues, $2.6 million for doubtful debt presented in general and administrative expenses, and $4.7 million due to restructuring plans presented in restructuring costs.
About Ceragon Networks
Ceragon Networks Ltd. (NASDAQ: CRNT), a pacesetter in broadband wireless networking systems, enables the rapid and cost-effective deployment of high-capacity network connectivity. Ceragon's FibeAir™ product family was uniquely designed for cellular operators, enterprises and communications service providers to progressively build networks to meet the growing demand for value-added broadband services. The modular FibeAir system operates across multiple frequencies from 7 to 38 GHz and supports integrated high-capacity services over IP, SONET/SDH and ATM networks. Ceragon's equipment complies with North American and international standards and is installed with over 100 customers in more than 35 countries. Ceragon was the first fixed wireless technology provider to break the 155 Mbps capacity barrier in high-frequency bands and the first to commercially deploy a wireless 311 Mbps system. Recently, Ceragon announced another industry first - a high capacity fixed wireless system with a built-in SONET/SDH add-drop multiplexer (ADM). More information is available at www.ceragon.com
Ceragon Networks™, Ceragon™, FibeAir™, ConfigAir™, CeraView™, CeraMon™, EtherAir™, QuickAir™, QuickAir Partner Program™, QuickAir Partner Certification Program™, QuickAir Partner Zone™, EncryptAir™ and Microwave Fiber™ are trademarks of Ceragon Networks Ltd.
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