Ceragon Networks Reports Second Quarter 2012 Financial Results
Poster: SySAdmin
Posted on August 6, 2012 at 7:21:01 AM
Ceragon Networks Reports Second Quarter 2012 Financial Results
Achieves record revenue of $119.1 million; improved profitability and record booking
PARAMUS, New Jersey, August 6, 2012/PRNewswire-FirstCall/ --
Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist today
reported results for the second quarter which ended June 30, 2012.
Revenues for the second quarter of 2012 reached $119.1 million, up 8% from $110.4
million for the second quarter of 2011, and up 1% from $117.8 million in the first quarter
of 2012.
Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the
second quarter of 2012 was $(1.0) million or $(0.03) per basic share and diluted share,
compared to net loss of $(17.4) million in the second quarter of 2011, or $(0.48) per
basic share and diluted share.
On a non-GAAP basis, net income for the second quarter, excluding (a) $1.3 million of
equity-based compensation expenses, (b) $0.9 million amortization of intangible assets,
(c) $1.6 million inventory step up related to the Nera acquisition and (d) $0.2 million of
changes in pre-acquisition indirect tax positions, was $3.0 million, or $0.08 per basic
share and diluted share. Non-GAAP net loss for the second quarter of 2011 was $(1.6)
million, or $(0.04) per basic share and diluted share (please refer to the accompanying
financial tables for reconciliation of GAAP financial information to non-GAAP).
Gross margin on a GAAP basis in the second quarter of 2012 was 31.9% of revenues.
Gross margin on a non-GAAP basis was 33.8% of revenues.
Operating loss on a GAAP basis in the second quarter of 2012 was $(0.2) million. On a
non-GAAP basis operating profit was $3.8 million.
Cash and cash investments at the end of the quarter were $44.8 million. Negative cash
flow from operations in the quarter relates mainly to additional working capital
requirements associated with more sales to Tier 1 operators in Latin America and Africa
that have longer payment terms and practices.
"We continued to grow in Q2, achieving all-time record revenues, better gross margin
and improved profitability," said Ira Palti, President and CEO of Ceragon. "Record
bookings resulted in a book-to-bill ratio well above one. Our success in securing several
large orders from Tier 1 operators expands our working capital needs. We believe this
represents a temporary timing issue, which we have addressed by drawing down on our unused
credit facilities.
"Ceragon has a comprehensive portfolio of solutions with the most advanced technology,
we are gaining share in key growth regions, and we are executing very well. Therefore, we
expect to be able to continue to grow revenues and improve profitability and cash flow,
even in light of growing macro headwinds," concluded Mr. Palti.
Supplemental revenue breakouts:
Geographical breakdown, second quarter of 2012:
- Europe: 18%
- Africa: 20%
- North America: 8%
- Latin America: 31%
- India: 16%
- APAC: 7%
A conference call will follow today, August 6, 2012, beginning at 9:00 a.m. EDT.
Investors are invited to join the Company's teleconference by calling (USA) (800) 230-1074
or international +1 (612) 234-9960 from 8:50 a.m. EDT. The call-in lines will be available
on a first-come, first-serve basis.
Investors can also listen to the call live via the Internet by accessing Ceragon
Networks' website at the investors' page: http://www.ceragon.com/ir_events.asp?lang=0
selecting the webcast link, and following the registration instructions.
If you are unable to join us live, the replay numbers are: Telephone: (USA) (800)
475-6701 or international +1 (320) 365-3844, Access Code: 252653. A replay of both the
call and the webcast will be available through September 6, 2012.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless backhaul specialist. We
provide innovative, flexible and cost-effective wireless backhaul solutions that enable
mobile operators and other wired/wireless service providers to deliver 2G/3G, 4G/LTE and
other broadband services to their subscribers. Ceragon's high-capacity, solutions use
microwave technology to transfer voice and data traffic while maximizing bandwidth
efficiency, to deliver more capacity over longer distances under any deployment scenario.
Based on our extensive global experience, Ceragon delivers turnkey solutions that support
service provider profitability at every stage of the network lifecycle enabling faster
time to revenue, cost-effective operation and simple migration to all-IP networks. As the
demand for data pushes the need for ever-increasing capacity, Ceragon is committed to
serve the market with unmatched technology and innovation, ensuring effective solutions
for the evolving needs of the marketplace. Our solutions are deployed by more than 430
service providers in over 130 countries.
Ceragon Networks(R) is a registered trademark of Ceragon Networks Ltd. in the United
States and other countries. Other names mentioned are owned by their respective holders.
This press release may contain statements concerning Ceragon's future prospects that
are "forward-looking statements" under the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations and projections that involve a
number of risks and uncertainties. There can be no assurance that future results will be
achieved, and actual results could differ materially from forecasts and estimates. These
are important factors that could cause actual results to differ materially from forecasts
and estimates. Some of the factors that could significantly impact the forward-looking
statements in this press release include the risk of significant expenses in connection
with potential contingent tax liability associated with Nera's prior operations or
facilities, the risk that the combined Ceragon and Nera business may not perform as
expected, risks associated with increased working capital needs, and other risks and
uncertainties, which are discussed in greater detail in Ceragon's Annual Report on Form
20-F and Ceragon's other filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date on which they are made and Ceragon
undertakes no commitment to revise or update any forward-looking statement in order to
reflect events or circumstances after the date any such statement is made. Ceragon's
public filings are available from the Securities and Exchange Commission's website at
http://www.sec.govor may be obtained on Ceragon's website at
http://www.ceragon.com
Ceragon Reports Second Quarter 2012 Results
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
Revenues $ 119,050 $ 110,350 $ 236,833 $ 210,662
Cost of revenues 81,081 86,716 161,925 157,444
Gross profit 37,969 23,634 74,908 53,218
Operating expenses:
Research and development 11,900 12,660 24,055 25,117
Selling and marketing 20,129 21,003 39,976 40,188
General and administrative 6,163 6,212 13,378 11,735
Restructuring costs - - - 7,834
Acquisition related costs - - - 4,919
Total operating expenses $ 38,192 $ 39,875 $ 77,409 $ 89,793
Operating loss (223) (16,241) (2,501) (36,575)
Financial expenses, net (554) (312) (1,460) (759)
Loss before taxes (777) (16,553) (3,961) (37,334)
Taxes on income 245 817 535 1,412
Net loss $ (1,022) $ (17,370) $ (4,496) $ (38,746)
Basic net loss per share $ (0.03) $ (0.48) $ (0.12) $ (1.08)
Diluted net loss per share $ (0.03) $ (0.48) $ (0.12) $ (1.08)
Weighted average number of
shares used in computing
basic net loss per share 36,421,106 35,983,033 36,354,389 35,794,446
Weighted average number of
shares used in computing
diluted net loss per share 36,421,106 35,983,033 36,354,389 35,794,446
Ceragon Reports Second Quarter 2012 Results
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited)
June 30, December 31,
2012 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 37,944 $ 28,991
Short-term bank deposits 2,901 7,159
Marketable securities - 9,665
Trade receivables, net 174,482 143,247
Deferred taxes 8,695 8,622
Other accounts receivable and prepaid expenses 34,834 37,281
Inventories 68,830 93,465
Total current assets 327,686 328,430
LONG-TERM INVESTMENTS:
Long-term marketable securities 3,970 3,716
Severance pay funds 6,572 6,360
Total long-term investments 10,542 10,076
OTHER ASSETS:
Deferred taxes 8,828 8,898
Goodwill and intangible assets, net 26,118 28,032
Other long-term receivables 8,871 5,257
Total other assets 43,817 42,187
PROPERTY AND EQUIPMENT, NET 32,059 30,465
Total assets $ 414,104 $ 411,158
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term loan, including current maturities of
long term bank loan $ 22,832 $ 8,232
Trade payables 92,875 77,395
Deferred revenues 25,917 38,308
Other accounts payable and accrued expenses 41,880 49,508
Total current liabilities 183,504 173,443
LONG-TERM LIABILITIES
Long term bank loan, net of current maturities 22,652 26,768
Accrued severance pay and pension 12,020 11,996
Other long term payables 36,921 37,900
71,593 76,664
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares 97 97
Additional paid-in capital 315,217 311,911
Treasury shares at cost (20,091) (20,091)
Other comprehensive loss (1,197) (343)
Accumulated deficits (135,019) (130,523)
Total shareholders' equity 159,007 161,051
Total liabilities and shareholders' equity $ 414,104 $ 411,158
Ceragon Reports Second Quarter 2012 Results
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
Cash flow from operating activities:
Net loss $ (1,022) $ (17,370) $ (4,496) $ (38,746)
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and amortization 3,648 2,951 7,419 6,152
Stock-based compensation expense 1,257 1,437 2,842 2,856
Decrease (increase) in trade and
other receivables, net (27,812) 6,640 (36,463) 29,134
Decrease in inventory 4,623 14,168 24,083 23,993
Increase (decrease) in trade payables
and accrued liabilities 8,734 (7,743) 10,721 (24,680)
Decrease in deferred revenues (3,219) (12,755) (12,391) (12,765)
Decrease (increase) in deferred tax
asset, net 114 1 (263) 32
Other adjustments (325) 1,661 (429) 1,650
Net cash used in operating activities $ (14,002) $ (11,010) $ (8,977) $ (12,374)
Cash flow from investing activities:
Purchase of property and equipment ,net (3,065) (3,240) (6,368) (6,029)
Payment for business acquisition(*) - - - (42,405)
Investment in short and long-term
bank deposit - (7,589) (1,266) (9,843)
Proceeds from short and long-term
bank deposits 3,186 10,273 5,436 24,069
Investment in held-to-maturity
marketable securities (64) - (64) -
Proceeds from maturities of held-to-maturity
marketable securities, net - 23 9,717 4,258
Net cash provided by (used in)
investing activities $ 57 $ (533) $ 7,455 $ (29,950)
Cash flow from financing activities:
Proceeds from exercise of options 251 284 464 3,580
Proceeds from bank loans 14,600 - 14,600 35,000
Repayment of bank loan (2,058) - (4,116) -
Net cash provided by financing activities $ 12,793 $ 284 $ 10,948 $ 38,580
Translation adjustments on cash
and cash equivalents $ (322) $ (789) $ (473) $ (435)
Increase (decrease) in cash
and cash equivalents $ (1,474) $ (12,048) $ 8,953 $ (4,179)
Cash and cash equivalents
at the beginning of the period 39,418 45,594 28,991 37,725
Cash and cash equivalents
at the end of the period $ 37,944 $ 33,546 $ 37,944 $ 33,546
(*) Excluding cash and cash equivalents
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended June 30,
2012 2011
GAAP
(as reported) Adjustments Non-GAAP Non-GAAP
Revenues $ 119,050 $ 119,050 $ 110,350
Cost of revenues 81,081 2,225 (a) 78,856 75,128
Gross profit 37,969 40,194 35,222
Operating expenses:
Research and development 11,900 607 (b) 11,293 11,453
Selling and marketing 20,129 1,113 (c) 19,016 18,730
General and administrative 6,163 47 (d) 6,116 5,509
Total operating expenses $ 38,192 $ 36,425 $ 35,692
Operating profit (loss) (223) 3,769 (470)
Financial expenses, net (554) (554) (312)
Income (loss) before taxes (777) 3,215 (782)
Taxes on income 245 245 817
Net income (loss) $ (1,022) $ 2,970 $ (1,599)
Basic net earnings (loss) per share $ (0.03) $ 0.08 $ (0.04)
Diluted net earnings (loss) per share $ (0.03) $ 0.08 $ (0.04)
Weighted average number of shares
used in computing basic net earnings
(loss) per share 36,421,106 36,421,106 35,983,033
Weighted average number of shares
used in computing diluted net
earnings (loss) per share 36,421,106 37,380,275 35,983,033
Total adjustments 3,992
(a) Cost of revenues includes $0.3 million of amortization of intangible assets,
$1.6 million of inventory step-up, $0.1 million of stock based compensation
expenses and $0.2 million of changes in pre-acquisition indirect tax positions in
the three months ended June 30, 2012.
(b) Research and development expenses include $0.6 million of stock based compensation
expenses in the three months ended June 30, 2012.
(c) Selling and marketing expenses include $0.6 million of amortization of intangible
assets and $0.5 million of stock based compensation expenses in the three months
ended June 30, 2012.
(d) General and administrative expenses include $0.05 million of stock based
compensation expenses in the three months ended June 30, 2012.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Six months ended June 30,
2012 2011
GAAP
(as reported) Adjustments Non-GAAP Non-GAAP
Revenues $ 236,833 $ 236,833 $ 210,662
Cost of revenues 161,925 4,517 (a) 157,408 142,961
Gross profit 74,908 79,425 67,701
Operating expenses:
Research and development 24,055 1,031 (b) 23,024 22,494
Selling and marketing 39,976 2,728 (c) 37,248 35,391
General and administrative 13,378 899 (d) 12,479 10,101
Total operating expenses $ 77,409 $ 72,751 $ 67,986
Operating profit (loss) (2,501) 6,674 (285)
Financial expenses, net (1,460) (1,460) (759)
Income (loss) before taxes (3,961) 5,214 (1,044)
Taxes on income 535 535 1,412
Net income (loss) $ (4,496) $ 4,679 $ (2,456)
Basic net earnings (loss) per share $ (0.12) $ 0.13 $ (0.07)
Diluted net earnings (loss) per share $ (0.12) $ 0.13 $ (0.07)
Weighted average number of shares
used in computing basic net earnings
(loss) per share 36,354,389 36,354,389 35,794,446
Weighted average number of shares
used in computing diluted net
earnings (loss) per share 36,354,389 37,287,665 35,794,446
Total adjustments 9,175
(a) Cost of revenues includes $0.6 million of amortization of intangible assets,
$2.0 million of inventory step-up, $0.1 million of stock based compensation
expenses, $0.2 million of integration plan related costs and $1.6 million of
changes in pre-acquisition indirect tax positions in the six months ended
June 30, 2012.
(b) Research and development expenses include $40 thousand of integration plan related
costs and $1.0 million of stock based compensation expenses in the six months
ended June 30, 2012.
(c) Selling and marketing expenses includes $1.2 million of amortization of intangible
assets, $0.4 million of integration plan related costs and $1.1 million of stock
based compensation expenses in the six months ended June 30, 2012.
(d) General and administration expenses include, $0.3 million of integration plan
related costs and $0.6 million of stock based compensation expenses in the
six months ended June 30, 2012.
RECONCILIATION BETWEEN REPORTED AND NON-GAAP
OPERATING LOSS
(U.S. dollars in thousands)
(Unaudited)
Three months Six months
ended ended
June 30, 2012
Reported GAAP net operating loss (223) (2,501)
Stock based compensation expenses 1,257 2,842
Amortization of intangible assets 901 1,802
Inventory step up 1,613 2,017
Integration plan related costs - 955
Changes in pre-acquisition indirect tax positions 221 1,559
Non-GAAP net operating profit 3,769 6,674
Company & Investor Contact:
Yoel Knoll
Ceragon Networks Ltd.
Tel: +1-201-853-0228
Office (Int'l): +972(0)3-5431-132
yoelk@ceragon.com
Media Contact:
Abigail Levy-Gurwitz
Ceragon Networks Ltd.
Tel: +1-201-853-0271
(Int'l): +972(0)3-5431-166
abigaill@ceragon.com
Media Contact:
Karen Quatromoni
Rainier Communications
Tel. +1-508-475-0025
x150
kquatromoni@rainierco.com
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Source: Ceragon Networks Ltd
Achieves record revenue of $119.1 million; improved profitability and record booking
PARAMUS, New Jersey, August 6, 2012/PRNewswire-FirstCall/ --
Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist today
reported results for the second quarter which ended June 30, 2012.
Revenues for the second quarter of 2012 reached $119.1 million, up 8% from $110.4
million for the second quarter of 2011, and up 1% from $117.8 million in the first quarter
of 2012.
Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the
second quarter of 2012 was $(1.0) million or $(0.03) per basic share and diluted share,
compared to net loss of $(17.4) million in the second quarter of 2011, or $(0.48) per
basic share and diluted share.
On a non-GAAP basis, net income for the second quarter, excluding (a) $1.3 million of
equity-based compensation expenses, (b) $0.9 million amortization of intangible assets,
(c) $1.6 million inventory step up related to the Nera acquisition and (d) $0.2 million of
changes in pre-acquisition indirect tax positions, was $3.0 million, or $0.08 per basic
share and diluted share. Non-GAAP net loss for the second quarter of 2011 was $(1.6)
million, or $(0.04) per basic share and diluted share (please refer to the accompanying
financial tables for reconciliation of GAAP financial information to non-GAAP).
Gross margin on a GAAP basis in the second quarter of 2012 was 31.9% of revenues.
Gross margin on a non-GAAP basis was 33.8% of revenues.
Operating loss on a GAAP basis in the second quarter of 2012 was $(0.2) million. On a
non-GAAP basis operating profit was $3.8 million.
Cash and cash investments at the end of the quarter were $44.8 million. Negative cash
flow from operations in the quarter relates mainly to additional working capital
requirements associated with more sales to Tier 1 operators in Latin America and Africa
that have longer payment terms and practices.
"We continued to grow in Q2, achieving all-time record revenues, better gross margin
and improved profitability," said Ira Palti, President and CEO of Ceragon. "Record
bookings resulted in a book-to-bill ratio well above one. Our success in securing several
large orders from Tier 1 operators expands our working capital needs. We believe this
represents a temporary timing issue, which we have addressed by drawing down on our unused
credit facilities.
"Ceragon has a comprehensive portfolio of solutions with the most advanced technology,
we are gaining share in key growth regions, and we are executing very well. Therefore, we
expect to be able to continue to grow revenues and improve profitability and cash flow,
even in light of growing macro headwinds," concluded Mr. Palti.
Supplemental revenue breakouts:
Geographical breakdown, second quarter of 2012:
- Europe: 18%
- Africa: 20%
- North America: 8%
- Latin America: 31%
- India: 16%
- APAC: 7%
A conference call will follow today, August 6, 2012, beginning at 9:00 a.m. EDT.
Investors are invited to join the Company's teleconference by calling (USA) (800) 230-1074
or international +1 (612) 234-9960 from 8:50 a.m. EDT. The call-in lines will be available
on a first-come, first-serve basis.
Investors can also listen to the call live via the Internet by accessing Ceragon
Networks' website at the investors' page: http://www.ceragon.com/ir_events.asp?lang=0
selecting the webcast link, and following the registration instructions.
If you are unable to join us live, the replay numbers are: Telephone: (USA) (800)
475-6701 or international +1 (320) 365-3844, Access Code: 252653. A replay of both the
call and the webcast will be available through September 6, 2012.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless backhaul specialist. We
provide innovative, flexible and cost-effective wireless backhaul solutions that enable
mobile operators and other wired/wireless service providers to deliver 2G/3G, 4G/LTE and
other broadband services to their subscribers. Ceragon's high-capacity, solutions use
microwave technology to transfer voice and data traffic while maximizing bandwidth
efficiency, to deliver more capacity over longer distances under any deployment scenario.
Based on our extensive global experience, Ceragon delivers turnkey solutions that support
service provider profitability at every stage of the network lifecycle enabling faster
time to revenue, cost-effective operation and simple migration to all-IP networks. As the
demand for data pushes the need for ever-increasing capacity, Ceragon is committed to
serve the market with unmatched technology and innovation, ensuring effective solutions
for the evolving needs of the marketplace. Our solutions are deployed by more than 430
service providers in over 130 countries.
Ceragon Networks(R) is a registered trademark of Ceragon Networks Ltd. in the United
States and other countries. Other names mentioned are owned by their respective holders.
This press release may contain statements concerning Ceragon's future prospects that
are "forward-looking statements" under the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations and projections that involve a
number of risks and uncertainties. There can be no assurance that future results will be
achieved, and actual results could differ materially from forecasts and estimates. These
are important factors that could cause actual results to differ materially from forecasts
and estimates. Some of the factors that could significantly impact the forward-looking
statements in this press release include the risk of significant expenses in connection
with potential contingent tax liability associated with Nera's prior operations or
facilities, the risk that the combined Ceragon and Nera business may not perform as
expected, risks associated with increased working capital needs, and other risks and
uncertainties, which are discussed in greater detail in Ceragon's Annual Report on Form
20-F and Ceragon's other filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date on which they are made and Ceragon
undertakes no commitment to revise or update any forward-looking statement in order to
reflect events or circumstances after the date any such statement is made. Ceragon's
public filings are available from the Securities and Exchange Commission's website at
http://www.sec.govor may be obtained on Ceragon's website at
http://www.ceragon.com
Ceragon Reports Second Quarter 2012 Results
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
Revenues $ 119,050 $ 110,350 $ 236,833 $ 210,662
Cost of revenues 81,081 86,716 161,925 157,444
Gross profit 37,969 23,634 74,908 53,218
Operating expenses:
Research and development 11,900 12,660 24,055 25,117
Selling and marketing 20,129 21,003 39,976 40,188
General and administrative 6,163 6,212 13,378 11,735
Restructuring costs - - - 7,834
Acquisition related costs - - - 4,919
Total operating expenses $ 38,192 $ 39,875 $ 77,409 $ 89,793
Operating loss (223) (16,241) (2,501) (36,575)
Financial expenses, net (554) (312) (1,460) (759)
Loss before taxes (777) (16,553) (3,961) (37,334)
Taxes on income 245 817 535 1,412
Net loss $ (1,022) $ (17,370) $ (4,496) $ (38,746)
Basic net loss per share $ (0.03) $ (0.48) $ (0.12) $ (1.08)
Diluted net loss per share $ (0.03) $ (0.48) $ (0.12) $ (1.08)
Weighted average number of
shares used in computing
basic net loss per share 36,421,106 35,983,033 36,354,389 35,794,446
Weighted average number of
shares used in computing
diluted net loss per share 36,421,106 35,983,033 36,354,389 35,794,446
Ceragon Reports Second Quarter 2012 Results
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
(Unaudited)
June 30, December 31,
2012 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 37,944 $ 28,991
Short-term bank deposits 2,901 7,159
Marketable securities - 9,665
Trade receivables, net 174,482 143,247
Deferred taxes 8,695 8,622
Other accounts receivable and prepaid expenses 34,834 37,281
Inventories 68,830 93,465
Total current assets 327,686 328,430
LONG-TERM INVESTMENTS:
Long-term marketable securities 3,970 3,716
Severance pay funds 6,572 6,360
Total long-term investments 10,542 10,076
OTHER ASSETS:
Deferred taxes 8,828 8,898
Goodwill and intangible assets, net 26,118 28,032
Other long-term receivables 8,871 5,257
Total other assets 43,817 42,187
PROPERTY AND EQUIPMENT, NET 32,059 30,465
Total assets $ 414,104 $ 411,158
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term loan, including current maturities of
long term bank loan $ 22,832 $ 8,232
Trade payables 92,875 77,395
Deferred revenues 25,917 38,308
Other accounts payable and accrued expenses 41,880 49,508
Total current liabilities 183,504 173,443
LONG-TERM LIABILITIES
Long term bank loan, net of current maturities 22,652 26,768
Accrued severance pay and pension 12,020 11,996
Other long term payables 36,921 37,900
71,593 76,664
SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares 97 97
Additional paid-in capital 315,217 311,911
Treasury shares at cost (20,091) (20,091)
Other comprehensive loss (1,197) (343)
Accumulated deficits (135,019) (130,523)
Total shareholders' equity 159,007 161,051
Total liabilities and shareholders' equity $ 414,104 $ 411,158
Ceragon Reports Second Quarter 2012 Results
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
Cash flow from operating activities:
Net loss $ (1,022) $ (17,370) $ (4,496) $ (38,746)
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and amortization 3,648 2,951 7,419 6,152
Stock-based compensation expense 1,257 1,437 2,842 2,856
Decrease (increase) in trade and
other receivables, net (27,812) 6,640 (36,463) 29,134
Decrease in inventory 4,623 14,168 24,083 23,993
Increase (decrease) in trade payables
and accrued liabilities 8,734 (7,743) 10,721 (24,680)
Decrease in deferred revenues (3,219) (12,755) (12,391) (12,765)
Decrease (increase) in deferred tax
asset, net 114 1 (263) 32
Other adjustments (325) 1,661 (429) 1,650
Net cash used in operating activities $ (14,002) $ (11,010) $ (8,977) $ (12,374)
Cash flow from investing activities:
Purchase of property and equipment ,net (3,065) (3,240) (6,368) (6,029)
Payment for business acquisition(*) - - - (42,405)
Investment in short and long-term
bank deposit - (7,589) (1,266) (9,843)
Proceeds from short and long-term
bank deposits 3,186 10,273 5,436 24,069
Investment in held-to-maturity
marketable securities (64) - (64) -
Proceeds from maturities of held-to-maturity
marketable securities, net - 23 9,717 4,258
Net cash provided by (used in)
investing activities $ 57 $ (533) $ 7,455 $ (29,950)
Cash flow from financing activities:
Proceeds from exercise of options 251 284 464 3,580
Proceeds from bank loans 14,600 - 14,600 35,000
Repayment of bank loan (2,058) - (4,116) -
Net cash provided by financing activities $ 12,793 $ 284 $ 10,948 $ 38,580
Translation adjustments on cash
and cash equivalents $ (322) $ (789) $ (473) $ (435)
Increase (decrease) in cash
and cash equivalents $ (1,474) $ (12,048) $ 8,953 $ (4,179)
Cash and cash equivalents
at the beginning of the period 39,418 45,594 28,991 37,725
Cash and cash equivalents
at the end of the period $ 37,944 $ 33,546 $ 37,944 $ 33,546
(*) Excluding cash and cash equivalents
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Three months ended June 30,
2012 2011
GAAP
(as reported) Adjustments Non-GAAP Non-GAAP
Revenues $ 119,050 $ 119,050 $ 110,350
Cost of revenues 81,081 2,225 (a) 78,856 75,128
Gross profit 37,969 40,194 35,222
Operating expenses:
Research and development 11,900 607 (b) 11,293 11,453
Selling and marketing 20,129 1,113 (c) 19,016 18,730
General and administrative 6,163 47 (d) 6,116 5,509
Total operating expenses $ 38,192 $ 36,425 $ 35,692
Operating profit (loss) (223) 3,769 (470)
Financial expenses, net (554) (554) (312)
Income (loss) before taxes (777) 3,215 (782)
Taxes on income 245 245 817
Net income (loss) $ (1,022) $ 2,970 $ (1,599)
Basic net earnings (loss) per share $ (0.03) $ 0.08 $ (0.04)
Diluted net earnings (loss) per share $ (0.03) $ 0.08 $ (0.04)
Weighted average number of shares
used in computing basic net earnings
(loss) per share 36,421,106 36,421,106 35,983,033
Weighted average number of shares
used in computing diluted net
earnings (loss) per share 36,421,106 37,380,275 35,983,033
Total adjustments 3,992
(a) Cost of revenues includes $0.3 million of amortization of intangible assets,
$1.6 million of inventory step-up, $0.1 million of stock based compensation
expenses and $0.2 million of changes in pre-acquisition indirect tax positions in
the three months ended June 30, 2012.
(b) Research and development expenses include $0.6 million of stock based compensation
expenses in the three months ended June 30, 2012.
(c) Selling and marketing expenses include $0.6 million of amortization of intangible
assets and $0.5 million of stock based compensation expenses in the three months
ended June 30, 2012.
(d) General and administrative expenses include $0.05 million of stock based
compensation expenses in the three months ended June 30, 2012.
RECONCILIATION OF NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
Six months ended June 30,
2012 2011
GAAP
(as reported) Adjustments Non-GAAP Non-GAAP
Revenues $ 236,833 $ 236,833 $ 210,662
Cost of revenues 161,925 4,517 (a) 157,408 142,961
Gross profit 74,908 79,425 67,701
Operating expenses:
Research and development 24,055 1,031 (b) 23,024 22,494
Selling and marketing 39,976 2,728 (c) 37,248 35,391
General and administrative 13,378 899 (d) 12,479 10,101
Total operating expenses $ 77,409 $ 72,751 $ 67,986
Operating profit (loss) (2,501) 6,674 (285)
Financial expenses, net (1,460) (1,460) (759)
Income (loss) before taxes (3,961) 5,214 (1,044)
Taxes on income 535 535 1,412
Net income (loss) $ (4,496) $ 4,679 $ (2,456)
Basic net earnings (loss) per share $ (0.12) $ 0.13 $ (0.07)
Diluted net earnings (loss) per share $ (0.12) $ 0.13 $ (0.07)
Weighted average number of shares
used in computing basic net earnings
(loss) per share 36,354,389 36,354,389 35,794,446
Weighted average number of shares
used in computing diluted net
earnings (loss) per share 36,354,389 37,287,665 35,794,446
Total adjustments 9,175
(a) Cost of revenues includes $0.6 million of amortization of intangible assets,
$2.0 million of inventory step-up, $0.1 million of stock based compensation
expenses, $0.2 million of integration plan related costs and $1.6 million of
changes in pre-acquisition indirect tax positions in the six months ended
June 30, 2012.
(b) Research and development expenses include $40 thousand of integration plan related
costs and $1.0 million of stock based compensation expenses in the six months
ended June 30, 2012.
(c) Selling and marketing expenses includes $1.2 million of amortization of intangible
assets, $0.4 million of integration plan related costs and $1.1 million of stock
based compensation expenses in the six months ended June 30, 2012.
(d) General and administration expenses include, $0.3 million of integration plan
related costs and $0.6 million of stock based compensation expenses in the
six months ended June 30, 2012.
RECONCILIATION BETWEEN REPORTED AND NON-GAAP
OPERATING LOSS
(U.S. dollars in thousands)
(Unaudited)
Three months Six months
ended ended
June 30, 2012
Reported GAAP net operating loss (223) (2,501)
Stock based compensation expenses 1,257 2,842
Amortization of intangible assets 901 1,802
Inventory step up 1,613 2,017
Integration plan related costs - 955
Changes in pre-acquisition indirect tax positions 221 1,559
Non-GAAP net operating profit 3,769 6,674
Company & Investor Contact:
Yoel Knoll
Ceragon Networks Ltd.
Tel: +1-201-853-0228
Office (Int'l): +972(0)3-5431-132
yoelk@ceragon.com
Media Contact:
Abigail Levy-Gurwitz
Ceragon Networks Ltd.
Tel: +1-201-853-0271
(Int'l): +972(0)3-5431-166
abigaill@ceragon.com
Media Contact:
Karen Quatromoni
Rainier Communications
Tel. +1-508-475-0025
x150
kquatromoni@rainierco.com
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Source: Ceragon Networks Ltd