Ceragon Reports Financial Results
Monday, May 04, 2020 | Comments

Ceragon Networks reported results for the first quarter ended March 31. Revenues for the quarter were $55.9 million compared with $69.2 million for the first quarter of 2019 and $71.3 million for the fourth quarter of 2019.

Gross margin was 25.1% compared with 35.6% for quarter one 2019 and 31.7% for the fourth quarter of last year.

Operating loss was $6 million compared with operating income of $3.2 million for the same quarter last year and an operating loss of $2.2 million for the fourth quarter. Quarterly net loss of $6.9 million compared with net income of $800,000 for the first quarter of 2019 and a net loss of $4.1 million for the fourth quarter.

The company had cash and cash equivalents of $44.1 million at March 31 compared with $23.9 million at the end of December.

"Our results were in line with the business update we provided on April 6, reflecting the normal seasonality of the first quarter compounded by the disruption created by the COVID-19 environment,” said Ira Palti, president and CEO of Ceragon. “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 one knows how to predict the timing of the recovery, the fact that broadband connectivity is now recognized as an essential utility brings urgency to the need to increase the capacity of existing networks and to extend network coverage to more of the population. During the first quarter, this trend accelerated bookings for our wireless hauling solutions, and we believe it will accelerate the transition to 5G, further emphasizing the need for our differentiated technologies.

"Looking forward, concerns of a global recession could surely delay operators' network investments, dampening short- to mid-term demand for our equipment. However, with strong ongoing operations, a healthy balance sheet and a new urgency to the 5G market, we believe we are positioned favorably and expect to emerge from today's challenges as a leader in a growing market."

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