Ceragon Networks Releases Third-Quarter Financials
Monday, November 06, 2017 | Comments

Ceragon Networks, a company that produces backhaul, released results for the third quarter of 2017, which ended Sept. 30.

Ceragon recorded revenues of $76 million, down 4 percent from the 2016 third quarter and 18.6 percent from the second quarter of 2017. Gross margin for the quarter was 35.1 percent, compared to 32.9 percent for the same quarter of the previous year and 31.3 percent in the second quarter of 2017.

Operating income was $5.7 million, compared to $5.8 million in the same quarter of the previous year and $8 million in the second quarter of 2017. Net income was $3.5 million, or 4 cents per diluted share, which was the same as the third quarter of 2016. Net income for the second quarter of 2017 was $5 million, or 6 cents per diluted share.

Ceragon had cash and cash equivalents of $36.5 million on Sept. 30, up from the $34.1 million it had on June 30.

“Our revenue in Q3 compared to Q2 reflected the lumpiness of our business in India,” said Ira Palti, president and CEO of Ceragon. “Our gross margin increased mainly due to a more favorable geographic revenue mix and also due to lower shipping costs … Based on the geographic mix of our order backlog and pipeline of potential new business, we continue to believe we can sustain a gross margin above 32 percent.

“During the quarter, we temporarily increased our borrowing under our revolving credit agreement to accommodate a timing issue with respect to a payment from a major customer,” Palti added. “Most of this payment has already been received and we expect to receive the remaining amount within Q4.”

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