RSSCeragon Networks reported its results for the first quarter of 2022.
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Revenues were $70.3 million, up 2.9% from $68.3 million in the same quarter of 2021 and down 9.6% from $77.8 million in the fourth quarter of 2021.
Revenues were generally in line with the effect of the challenges the company experienced in each region, which involved delay in delivering some of products on time due to component shortages and supply chain disruptions.
Gross profit was $19.3 million, giving the company a gross margin of 27.5%, compared with a gross margin of 29.5 % in the first quarter of 2021 and 29.4% in the 2021 fourth quarter. The relatively low gross profit is mainly due to expedite costs and price increase derived from component shortages and increased shipping costs.
Operating loss was $1.3 million compared with operating income of $400,000 for the first quarter of 2021 and $1 million for the fourth quarter of 2021. Net loss was $2.3 million, or $0.03 per diluted share compared with $1.2 million, or $0.01 per diluted share for the first quarter of 2021 and $12.2 million, or $0.15 per diluted share for the fourth quarter of 2021.
Cash and cash equivalents was $25 million at March 31, compared to $17.1 million at December 31.
The company continues to target revenue growth in 2022. Assuming an improvement in the components, supply chain and shipping drawbacks, the company now expects yearly revenue to be between $300-$315 million. Improvement in gross margin is expected only during the second half of the year, assuming gradual improvement in supply chain and shipping constraints and costs.
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