Sunday, July 19, 2009

Ceragon Posts Revenue of $42 million, Down 24% YoY

Ceragon Networks, which supplies high-capacity Ethernet and TDM wireless backhaul solutions, reported Q2 revenues of $42.2 million, down 24% from $55.2 million for the second quarter of 2008 and 4% from $43.9 million in the first quarter of 2009. Net income (GAAP) was $0.2 million or $0.01 per basic share and diluted share, compared to net income of $15.5 million in the second quarter of 2008, or $0.42 per basic share and $0.40 per diluted share.

"Our confidence in the long term outlook for our business is supported by a significant increase in new orders during Q2," said Ira Palti, President and CEO of Ceragon. "These new orders continue to reflect improving demand from the expansion of GSM networks in India to accommodate record subscriber growth. Meanwhile, worldwide business conditions remain challenging with long sales cycles as our customers continue to focus on retaining cash. We expect to see gradual improvement during the second half of 2009, led by continued strength from Asia. Longer term, we expect to benefit from improving demand in all regions, particularly for solutions that support the migration of cellular networks to IP-based architecture to accommodate the explosion of mobile data usage."