RSSCeragon Networks reported its financial results for the third quarter ended September 30.
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"I'm pleased to report that in the third quarter of 2022, we achieved substantial success in key areas of our business, and made progress on our long-term strategy,” Ceragon CEO Doron Arazi. “Our bookings continued to reach record levels, including growing bookings in North America which are expected to yield high margins. Our focus on fulfillment led to growth in our third quarter revenues coupled with high gross margins. We continue to focus on the conversion of our high backlog to fulfill the growing demand from our customers. In parallel, we continue to see 5G network buildout pipelines, with CSPs and private networks both looking for cost-effective technologies for network upgrades and expanded services. Although the macro economy is unstable and risks associated with component shortages still exist, we are more confident with our long-term strategy and continue with its execution to capitalize on the opportunities ahead."
Revenues for the quarter were $78.6 million, up 3.3% from $76.1 million in the third quarter of 2021 and up 11.2% from $70.7 million in second quarter of 2022. Gross profit was $27.8 million, giving the company a gross margin of 35.3%, compared with a gross margin of 30.9% in the 2021 third quarter and 30.3% in second quarter of 2022. The improved gross margin compared to the second quarter was primarily due to the fulfillment of orders with better margins mainly in North America, strong software upgrade sales, and to a lesser extent, a reduction in shipping costs.
Operating income was $1.3 million, compared with $2.9 million for the third quarter of 2021 and a loss of $300,000 for the second quarter of 2022. Operating income was negatively impacted by a one-time $4 million other operating expenses related to a hostile takeover attempt, the company said.
Net loss was $900,000, or a loss of $0.01 per diluted share compared with a net income of $300,000, or $0 per diluted share for the third-quarter of 2021 and a loss of $1.5 million, or a loss of $0.02 per diluted share for the second quarter of 2022. Cash and cash equivalents were $26 million on September 30, compared to $23.6 million on June 30. For a reconciliation of GAAP to non-GAAP results, see the attached tables.
Given only a slight improvement in supply chain issues, which continue to impact the company’s ability to convert its strong backlog into revenues, Ceragon now expect to finish the year with a revenue range of $296 million to $304 million.
