Ceragon Networks Announces Second-Quarter Financial Results
Monday, August 03, 2020 | Comments

Ceragon Networks announced financial results for the second quarter ended June 30. The company mentioned $4 million in positive cash flow from operating and investing activities along with rising revenues, margins and net results compared to the first quarter of the year.

Revenues for the quarter were $62.4 million compared to $73 million for the same quarter last year and $55.9 million in the first quarter of 2020. Gross margin was 26.4% compared to 36.1% compared to the same quarter last year and 25.1% for the first quarter.

Operating loss was $3.5 million compared to a profit of $4.1 million for the second quarter of 2019 and an operating loss of $6 million in the first quarter of 2020. Meanwhile, net loss for the quarter was $5.5 million for the quarter compared to a profit of $800,000 in the prior year’s quarter and a loss of $6.9 million for the first quarter of 2020.

The company has cash and cash equivalents of $35.2 million on June 30, compared to $44.1 million on March 31.

Ceragon’s book-to-bill ratio was above one as multiple service providers accelerated 4G expansion products and internet service providers moved swiftly to fill capacity needs.

The impact of COVID-19 on Ceragon’s business for the quarter differed from region to region. Business in North America, Europe and Asia/Pacific (APAC) remained stable, while India emerged from lockdown mid quarter. Meanwhile, a major new project with a new customer was signed in Africa, and Latin America bookings were weaker.

The company’s 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.

"Our results for the second quarter show improvement as compared to Q1, reflecting the return of many of our customers to their ongoing infrastructure projects and the beginning of the 'new normal,' " said Ira Palti, president and CEO of Ceragon. “Our focus has been to maintain an uninterrupted flow of services and equipment to these customers. At the same time, we have been strengthening our balance sheet and cash position, as evident by the quarter's reduction in inventories and healthy $4 million in positive cash flow while also focusing on improving our results, increasing our revenues, margins and net results as compared with the first quarter." Would you like to comment on this story? Find our comments system below.




 
 
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