Ceragon Networks reported results for the fourth quarter and full year ended Dec. 31.Chilean Water Utility Tests Narrowband IoT Technology
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Fourth-quarter revenues were $84.7 million, up 12 percent from the fourth quarter of 2015 and up 7 percent from the third quarter of 2016. The gross margin was 32.5 percent compared with 32.8 percent in the fourth quarter of 2015 and 32.9 percent in the third quarter of 2016.
Net income was $8.3 million. Net income for the fourth quarter of 2015 was $5.2 million and $3.5 million for the third quarter of 2016. Cash and cash equivalents were $36.3 million at end-December compared with $32.4 million at Sept. 30, after reducing debt by $3.3 million to $17 million.
Full-year revenues were $293.6 million, down 16 percent from 2015. Gross margin was 33.8 percent compared with 29.5 percent in 2015. Net income was $11.4 million compared with net income in 2015 of $1 million.
"The continued success of our strategy to focus on increasing net income and free cash flow resulted in significant improvement in these key metrics in 2016 and enabled us to maintain a strong cash position while also substantially reducing debt," said Ira Palti, president and CEO of Ceragon. "We have a strong order book, particularly with the large orders we received in quarter one from a customer in India. However, the timing of delivering various elements of these orders may cause greater than normal quarter-to-quarter fluctuations in our results during the year. After integrating these orders into our overall operating plan, we now feel comfortable raising our net income target for 2017, on a constant currency basis, from the one we set in November 2016.”
North America comprised 14 percent of revenues in both the fourth quarter and full year, while Latin America accounted for 27 percent in both the quarter and year. Europe offered 14 percent of revenues for the quarter and 15 percent for the full year. Africa revenues were 4 percent of the total in the fourth quarter and 7 percent in the full year. India had 32 percent of revenues with other Asia-Pacific countries contributing 9 percent in the fourth quarter. For the full year, India offered 27 percent of revenues and other Asia-Pacific countries provided 10 percent of revenues.
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