Company Generates $3.4 Million
in GAAP Net Income and $10.8 Million
in Positive Free Cash Flow
ROSH
HA'AIN, Israel,
Nov. 6,
2023 /PRNewswire/ -- Ceragon Networks Ltd.
(NASDAQ: CRNT), the global innovator and leading solutions provider
of 5G wireless transport, today reported its financial results for
the third quarter and nine months ended September 30, 2023.
Q3 2023 Financial Highlights:
- Revenues of $87.3
million, up 10.9% year-over-year
- Operating income of $6.7
million on a GAAP basis, or $8.0
million on a non-GAAP basis
- EPS of $0.04 per diluted share
on a GAAP basis, or $0.06 per diluted
share on a non-GAAP basis
Q3 2023 Business Highlights:
- Announced the definitive agreement to acquire Siklu to
expand presence in North America,
increasing market share in mmW and augmenting Ceragon's offering
with Fixed Wireless Access
- North
America:
- Record bookings, supported by
continued strength in 5G rollout and expanded presence with private
network customers
- Third consecutive quarter of revenues exceeding
$20 million
- India:
-
Strongest region in terms of revenue, with record quarterly revenue
since Q2 2018
Doron Arazi, CEO, commented:
"Ceragon continues to expand its addressable market and diversify
its customer base, bolstering our already durable competitive
position as a leader in one of the growing parts of the
telecommunications sector. Continued strong demand in India and North
America drove our growth, and we are successfully broadening
our position with private networks and smaller Communication
Service Providers, adding 20 new customers in this segment since
the beginning of the year, to expand our revenue opportunity and
further diversify our customer portfolio. The pending acquisition
of Siklu is expected to accelerate this trend, adding incremental
revenue with key growth customers."
"While the Siklu acquisition has not closed yet, Ceragon and
Siklu teams are already working on integration plans, and our
expectation both in terms of timing and for operational and
financial synergies has not changed," added Mr. Arazi. "We continue
to view this pending acquisition as strategic, strengthening our
end-to-end offering, expanding our position in key growth areas and
enabling significant cross-selling opportunities."
"With our improved collections, we generated more than
$10 million from operations and
investing activities during the quarter, giving us increased
confidence that we can integrate and accelerate Siklu, invest
in product development, and strengthen our balance sheet,"
continued Mr. Arazi. "We expect a continued growth year over year
in revenue and profitability in the fourth quarter, capping off a
strong year for Ceragon and giving us significant momentum as we
enter 2024."
Primary Third Quarter 2023 Financial Results:
Revenues were $87.3 million, up 10.9%
from $78.6 million in Q3 2022 and 1.3% compared to
$86.2 million in Q2 2023.
Gross profit was $30.3
million, giving us a gross margin of 34.7%, compared
with a gross margin of 35.3% in Q3 2022 and 35.2% in Q2 2023.
Operating income was $6.7 million compared with
$1.3 million for Q3 2022
and $5.7 million for Q2 2023.
Net income (loss) was $3.4
million, or $0.04 per diluted
share, compared with $(0.9) million,
or $(0.01) per diluted share for Q3
2022 and $2.1 million, or
$0.02 per diluted share for Q2
2023.
Non-GAAP results were as follows: Gross margin was
34.9%, operating profit was $8.0
million, and net income was $5.0
million, or $0.06 per diluted
share.
Cash and cash equivalents were $34.0 million at September
30, 2023, compared to $24.5
million at June 30, 2023.
For a reconciliation of GAAP to non-GAAP results, see the
attached tables.
Revenue Breakout by Geography:
|
Q3
2023
|
India
|
34 %
|
North
America
|
26 %
|
Latin
America
|
15 %
|
Europe
|
11 %
|
APAC
|
10 %
|
Africa
|
4 %
|
Outlook
Ceragon management narrowed the range and raised the midpoint of
its full-year revenue guidance to $338
million to $346 million, up
from prior guidance of $334-$348 million
and expects full-year non-GAAP profitability. Our guidance is based
on current visibility and assumes normal conversion of bookings to
revenue. Our revenue target for fiscal 2027 is approximately
$500 million, and we also target
increasing our gross margins to at least 34-36% over the same
period.
Conference Call
The Company will host a Zoom web conference today at
8:30 a.m. ET to discuss the results,
followed by a question-and-answer session for the investment
community.
Investors are invited to register by clicking here. All relevant
information will be sent upon registration.
If you are unable to join us live, a recording of the call will
be available on our website at www.ceragon.com within 24 hours
after the call.
About Ceragon Networks
Ceragon Networks Ltd. (NASDAQ: CRNT) is the global innovator and
leading solutions provider of 5G wireless transport. We help
operators and other service providers worldwide increase
operational efficiency and enhance end customers' quality of
experience with innovative wireless backhaul and fronthaul
solutions. Our customers include service providers, public safety
organizations, government agencies and utility companies, which use
our solutions to deliver 5G & 4G broadband wireless
connectivity, mission-critical multimedia services, stabilized
communications, and other applications at high reliability and
speed.
Ceragon's unique multicore technology and disaggregated approach
to wireless transport provides highly reliable, fast to deploy,
high-capacity wireless transport for 5G and 4G networks with
minimal use of spectrum, power, real estate, and labor resources.
It enables increased productivity, as well as simple and quick
network modernization, positioning Ceragon as a leading solutions
provider for the 5G era. We deliver a complete portfolio of turnkey
end-to-end AI-based managed and professional services that ensure
efficient network rollout and optimization to achieve the highest
value for our customers. Our solutions are deployed by more than
400 service providers, as well as more than 800 private network
owners, in more than 150 countries. For more information please
visit: www.ceragon.com
Ceragon Networks® and FibeAir® are registered trademarks of
Ceragon Networks Ltd. in the United
States and other countries. CERAGON ® is a trademark of
Ceragon Networks Ltd., registered in various countries. Other names
mentioned are owned by their respective holders.
Safe Harbor
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933, as amended and the Securities Exchange Act of 1934, as
amended, and the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
based on the current beliefs, expectations and assumptions of
Ceragon's management about Ceragon's business, financial condition,
results of operations, micro and macro market trends and other
issues addressed or reflected therein. Examples of forward-looking
statements include, but are not limited to, statements regarding:
projections of demand, revenues, net income, gross margin, capital
expenditures and liquidity, competitive pressures, order timing,
supply chain and shipping, components availability; growth
prospects, product development, financial resources, cost savings
and other financial and market matters. You may identify these and
other forward-looking statements by the use of words such as "may",
"plans", "anticipates", "believes", "estimates", "targets",
"expects", "intends", "potential" or the negative of such terms, or
other comparable terminology, although not all forward-looking
statements contain these identifying words.
Although we believe that the projections reflected in such
forward-looking statements are based upon reasonable assumptions,
we can give no assurance that our expectations will be obtained or
that any deviations therefrom will not be material. Such
forward-looking statements involve known and unknown risks and
uncertainties that may cause Ceragon's future results or
performance to differ materially from those anticipated, expressed
or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: the effects of
global economic trends, including recession, rising inflation,
rising interest rates, commodity price increases and fluctuations,
commodity shortages and exposure to economic slowdown; the effects
of the evolving nature of the recent war in Gaza between Israel and the Hamas; risks associated with
delays in the transition to 5G technologies and in the 5G rollout;
risks relating to the concentration of our business on a limited
number of large mobile operators and the fact that the significant
weight of their ordering, compared to the overall ordering by other
customers, coupled with inconsistent ordering patterns, could
negatively affect us; risks resulting from the volatility in our
revenues, margins and working capital needs, substantial losses
incurred and negative cash flows generated, which, if continue, may
significantly adversely impact our results of operations and cash
flow; the high volatility in the supply needs of our customers,
which from time to time lead to delivery issues and may lead to us
being unable to timely fulfill our customer commitments; risks
associated with inaccurate forecasts or business changes, which may
expose us to inventory-related losses on inventory purchased by our
contract manufacturers and other suppliers, to increased expenses
should unexpected production ramp up be required, or to write off
to parts of our inventory, which would increase our cost of
revenues; uncertainties as to the occurrence and timing of the
consummation of the transaction with Siklu and the potential
failure to satisfy the conditions to the closing of such
transaction; and such other risks, uncertainties and other factors
that could affect our results of operation, as further detailed in
Ceragon's most recent Annual Report on Form 20-F, as published on
May 1, 2023, as well as other
documents that may be subsequently filed by Ceragon from time to
time with the SEC.
We caution you not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. Ceragon does
not assume any obligation to update any forward-looking statements
in order to reflect events or circumstances that may arise after
the date of this release unless required by law.
While we believe that we have a reasonable basis for each
forward-looking statement contained in this press release, we
caution you that these statements are based on a combination of
facts and factors currently known by us and our projections of the
future, about which we cannot be certain. In addition, any
forward-looking statements represent Ceragon's views only as of the
date of this press release and should not be relied upon as
representing its views as of any subsequent date. Ceragon does not
assume any obligation to update any forward-looking statements
unless required by law.
Ceragon's public filings are available on the Securities and
Exchange Commission's website at www.sec.gov and
may also be obtained from Ceragon's website at
www.ceragon.com.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except share and per share data)
|
(Unaudited)
|
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
87,260
|
|
$
|
78,649
|
|
$
|
256,820
|
|
$
|
219,642
|
Cost of
revenues
|
|
|
56,986
|
|
50,861
|
|
168,014
|
|
151,111
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
30,274
|
|
27,788
|
|
88,806
|
|
68,531
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
|
7,454
|
|
7,318
|
|
23,204
|
|
21,610
|
Sales and
Marketing
|
|
|
10,059
|
|
8,663
|
|
30,033
|
|
26,797
|
General and
administrative
|
|
|
5,806
|
|
6,571
|
|
17,348
|
|
16,469
|
Restructuring and
related charges
|
|
|
-
|
|
-
|
|
897
|
|
-
|
Acquisition- and
integration-related
|
|
|
283
|
|
-
|
|
283
|
|
-
|
Other operating
expenses (*)
|
|
|
-
|
|
3,971
|
|
-
|
|
3,971
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
$
|
23,602
|
|
$
|
26,523
|
|
$
|
71,765
|
|
$
|
68,847
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
6,672
|
|
1,265
|
|
17,041
|
|
(316)
|
|
|
|
|
|
|
|
|
|
|
Financial expenses and
others, net
|
|
|
1,722
|
|
1,778
|
|
5,066
|
|
3,294
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes
|
|
|
4,950
|
|
(513)
|
|
11,975
|
|
(3,610)
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
|
|
1,583
|
|
350
|
|
4,552
|
|
1,061
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
$
|
3,367
|
|
$
|
(863)
|
|
$
|
7,423
|
|
$
|
(4,671)
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
|
|
$
|
0.04
|
|
$
|
(0.01)
|
|
$
|
0.09
|
|
$
|
(0.06)
|
Diluted net income
(loss) per share
|
|
|
$
|
0.04
|
|
$
|
(0.01)
|
|
$
|
0.09
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares
used in computing basic net income
(loss) per share
|
|
|
84,688,985
|
|
84,200,177
|
|
84,470,709
|
|
84,060,674
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares
used in computing diluted net income
(loss) per share
|
|
|
85,488,113
|
|
84,200,177
|
|
85,265,666
|
|
84,060,674
|
|
|
|
(*) Hostile attempt
related costs.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands)
|
|
|
|
September
30,
2023
|
|
December
31,
2022
|
ASSETS
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
33,966
|
|
$
22,948
|
Trade receivables,
net
|
|
104,593
|
|
100,034
|
Other accounts
receivable and prepaid expenses
|
|
15,047
|
|
15,756
|
Inventories
|
|
70,050
|
|
72,009
|
|
|
|
|
|
Total current
assets
|
|
223,656
|
|
210,747
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
Severance
pay and pension fund
|
|
4,652
|
|
4,633
|
Property
and equipment, net
|
|
30,145
|
|
29,456
|
Operating lease right-of-use assets
|
|
16,214
|
|
17,962
|
Intangible
assets, net
|
|
9,337
|
|
8,208
|
Other
non-current assets
|
|
17,130
|
|
18,312
|
|
|
|
|
|
Total non-current
assets
|
|
77,478
|
|
78,571
|
|
|
|
|
|
Total assets
|
|
$
301,134
|
|
$
289,318
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
65,865
|
|
$
67,384
|
Deferred
revenues
|
|
2,986
|
|
3,343
|
Short-term
loans
|
|
38,200
|
|
37,500
|
Operating lease
liabilities
|
|
3,052
|
|
3,745
|
Other accounts payable
and accrued expenses
|
|
25,148
|
|
20,864
|
|
|
|
|
|
Total current
liabilities
|
|
135,251
|
|
132,836
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Accrued severance pay
and pension
|
|
8,983
|
|
9,314
|
Deferred
revenues
|
|
12,170
|
|
11,545
|
Other long-term
payables
|
|
3,059
|
|
2,653
|
Operating lease
liabilities
|
|
11,157
|
|
13,187
|
|
|
|
|
|
Total long-term
liabilities
|
|
35,369
|
|
36,699
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share
capital:
|
|
|
|
|
Ordinary
shares
|
|
224
|
|
224
|
Additional paid-in
capital
|
|
435,269
|
|
432,214
|
Treasury shares at
cost
|
|
(20,091)
|
|
(20,091)
|
Other comprehensive
loss
|
|
(10,903)
|
|
(11,156)
|
Accumulated
deficits
|
|
(273,985)
|
|
(281,408)
|
|
|
|
|
|
Total shareholders'
equity
|
|
130,514
|
|
119,783
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
301,134
|
|
$
289,318
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(U.S. dollars, in
thousands)
|
(Unaudited)
|
|
|
Three months
ended
September
30,
|
|
Nine months
ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
3,367
|
|
$
|
(863)
|
|
$
|
7,423
|
|
$
|
(4,671)
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,366
|
|
|
2,643
|
|
|
7,501
|
|
|
8,418
|
Loss from sale of
property and equipment, net
|
|
31
|
|
|
-
|
|
|
61
|
|
|
20
|
Stock-based
compensation expense
|
|
1,048
|
|
|
1,167
|
|
|
3,025
|
|
|
2,602
|
Decrease in accrued
severance pay and pensions, net
|
|
(11)
|
|
|
(321)
|
|
|
(355)
|
|
|
(690)
|
Decrease (increase) in
trade receivables, net
|
|
2,684
|
|
|
6,659
|
|
|
(4,226)
|
|
|
2,486
|
Decrease (increase) in
other accounts receivable and prepaid expenses
(including other long term assets)
|
|
1,360
|
|
|
1,297
|
|
|
1,911
|
|
|
(1,759)
|
Decrease in operating
lease right-of-use assets
|
|
1,090
|
|
|
853
|
|
|
2,987
|
|
|
2,726
|
Decrease (increase) in
inventory, net of write off
|
|
(2,437)
|
|
|
(3,759)
|
|
|
1,622
|
|
|
(3,310)
|
Increase (decrease) in
trade payables
|
|
3,229
|
|
|
1,834
|
|
|
(726)
|
|
|
3,173
|
Increase (decrease) in
other accounts payable and accrued expenses
(including other long term liabilities)
|
|
2,071
|
|
|
(258)
|
|
|
4,397
|
|
|
(1,964)
|
Decrease in operating
lease liability
|
|
(1,443)
|
|
|
(1,087)
|
|
|
(3,961)
|
|
|
(5,158)
|
Increase
(decrease) in deferred
revenues
|
|
(118)
|
|
|
432
|
|
|
268
|
|
|
1,735
|
Net cash
provided by operating activities
|
$
|
13,237
|
|
$
|
8,597
|
|
$
|
19,927
|
|
$
|
3,608
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment, net
|
|
(1,935)
|
|
|
(3,664)
|
|
|
(7,407)
|
|
|
(9,032)
|
Purchase of intangible
assets
|
|
(446)
|
|
|
(823)
|
|
|
(2,283)
|
|
|
(1,260)
|
Net cash used in
investing activities
|
$
|
(2,381)
|
|
$
|
(4,487)
|
|
$
|
(9,690)
|
|
$
|
(10,292)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise
of options
|
|
-
|
|
|
297
|
|
|
30
|
|
|
410
|
Proceeds from
(repayment of) bank credits and loans,
net
|
|
(1,350)
|
|
|
(2,000)
|
|
|
700
|
|
|
15,100
|
Net cash
provided by (used in) financing activities
|
$
|
(1,350)
|
|
$
|
(1,703)
|
|
$
|
730
|
|
$
|
15,510
|
|
|
|
|
|
|
|
|
|
|
|
|
Translation
adjustments on cash and cash equivalents
|
$
|
(69)
|
|
$
|
(35)
|
|
$
|
51
|
|
$
|
59
|
Increase in cash and
cash equivalents
|
$
|
9,437
|
|
$
|
2,372
|
|
$
|
11,018
|
|
$
|
8,885
|
Cash and cash
equivalents at the beginning of the period
|
|
24,529
|
|
|
23,592
|
|
|
22,948
|
|
|
17,079
|
Cash and cash
equivalents at the end of the period
|
$
|
33,966
|
|
$
|
25,964
|
|
$
|
33,966
|
|
$
|
25,964
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
|
(U.S. dollars in
thousands)
|
(Unaudited)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost
of revenues
|
|
$
|
56,986
|
|
$
|
50,861
|
|
$
|
168,014
|
|
$
|
151,111
|
Stock-based
compensation expenses
|
|
|
(142)
|
|
|
(161)
|
|
|
(367)
|
|
|
(418)
|
Changes in indirect tax
positions
|
|
|
-
|
|
|
(1)
|
|
|
(3)
|
|
|
(2)
|
Non-GAAP cost
of revenues
|
|
$
|
56,844
|
|
$
|
50,699
|
|
$
|
167,644
|
|
$
|
150,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
|
$
|
30,274
|
|
$
|
27,788
|
|
$
|
88,806
|
|
$
|
68,531
|
Stock-based
compensation expenses
|
|
|
142
|
|
|
161
|
|
|
367
|
|
|
418
|
Changes in indirect tax
positions
|
|
|
-
|
|
|
1
|
|
|
3
|
|
|
2
|
Non-GAAP gross
profit
|
|
$
|
30,416
|
|
$
|
27,950
|
|
$
|
89,176
|
|
$
|
68,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
|
$
|
7,454
|
|
$
|
7,318
|
|
$
|
23,204
|
|
$
|
21,610
|
Stock-based
compensation expenses
|
|
|
(194)
|
|
|
(168)
|
|
|
(672)
|
|
|
(188)
|
Non-GAAP Research and
development expenses
|
|
$
|
7,260
|
|
$
|
7,150
|
|
$
|
22,532
|
|
$
|
21,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and
Marketing expenses
|
|
$
|
10,059
|
|
$
|
8,663
|
|
$
|
30,033
|
|
$
|
26,797
|
Stock-based
compensation expenses
|
|
|
(357)
|
|
|
(383)
|
|
|
(1,096)
|
|
|
(962)
|
Non-GAAP Sales and
Marketing expenses
|
|
$
|
9,702
|
|
$
|
8,280
|
|
$
|
28,937
|
|
$
|
25,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
Administrative expenses
|
|
$
|
5,806
|
|
$
|
6,571
|
|
$
|
17,348
|
|
$
|
16,469
|
Retired CEO
compensation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
96
|
Stock-based
compensation expenses
|
|
|
(355)
|
|
|
(455)
|
|
|
(890)
|
|
|
(1,034)
|
Non-GAAP General and
Administrative expenses
|
|
$
|
5,451
|
|
$
|
6,116
|
|
$
|
16,458
|
|
$
|
15,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Restructuring and
related charges
|
|
|
-
|
|
|
-
|
|
|
897
|
|
|
-
|
Restructuring and
related charges
|
|
|
-
|
|
|
-
|
|
|
(897)
|
|
|
-
|
Non-GAAP Other
operating expenses
|
|
$
|
-
|
|
$
|
|
-
|
|
$
|
-
|
|
$
|
-
|
GAAP Acquisition- and
integration-related
|
|
|
283
|
|
|
-
|
|
|
283
|
|
|
-
|
Acquisition- and
integration-related
|
|
|
(283)
|
|
|
-
|
|
|
(283)
|
|
|
-
|
Non-GAAP Other
operating expenses
|
|
$
|
-
|
|
$
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Other operating
expenses
|
|
|
-
|
|
|
3,971
|
|
|
-
|
|
|
3,971
|
Hostile attempt related
costs
|
|
|
-
|
|
|
(3,971)
|
|
|
-
|
|
|
(3,971)
|
Non-GAAP Other
operating expenses
|
|
$
|
-
|
|
$
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in
thousands)
(Unaudited)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
GAAP operating income
(loss)
|
|
|
$
|
6,672
|
|
$
|
1,265
|
|
$
|
17,041
|
|
$
|
(316)
|
Stock-based
compensation expenses
|
|
|
|
1,048
|
|
|
1,167
|
|
|
3,025
|
|
|
2,602
|
Changes in indirect tax
positions
|
|
|
|
-
|
|
|
1
|
|
|
3
|
|
|
2
|
Retired CEO
compensation
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(96)
|
Hostile attempt related
costs
|
|
|
|
-
|
|
|
3,971
|
|
|
-
|
|
|
3,971
|
Restructuring and
related charges
|
|
|
|
-
|
|
|
-
|
|
|
897
|
|
|
-
|
Acquisition- and
integration-related
|
|
|
|
283
|
|
|
-
|
|
|
283
|
|
|
-
|
Non-GAAP operating
income
|
|
|
$
|
8,003
|
|
$
|
6,404
|
|
$
|
21,249
|
|
$
|
6,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP financial expenses
and others, net
|
|
|
$
|
1,722
|
|
$
|
1,778
|
|
$
|
5,066
|
|
$
|
3,294
|
Leases – financial
income
|
|
|
|
364
|
|
|
233
|
|
|
1,007
|
|
|
2,432
|
Non-GAAP financial
expenses & others, net
|
|
|
$
|
2,086
|
|
$
|
2,011
|
|
$
|
6,073
|
|
$
|
5,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Tax
expenses
|
|
|
$
|
1,583
|
|
$
|
350
|
|
$
|
4,552
|
|
$
|
1,061
|
Non-cash tax
adjustments
|
|
|
|
(630)
|
|
|
(81)
|
|
|
(2,373)
|
|
|
(427)
|
Non-GAAP Tax
expenses
|
|
|
$
|
953
|
|
$
|
269
|
|
$
|
2,179
|
|
$
|
634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
|
(U.S. dollars in
thousands, except share and per share data)
|
(Unaudited)
|
|
|
|
|
|
Three months
ended
|
|
|
|
Nine months
ended
September
30,
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
|
$
|
3,367
|
|
$
|
(863)
|
|
$
|
7,423
|
|
$
|
(4,671)
|
|
Stock-based
compensation expenses
|
|
|
1,048
|
|
|
1,167
|
|
|
3,025
|
|
|
2,602
|
|
Changes in indirect tax
positions
|
|
|
-
|
|
|
1
|
|
|
3
|
|
|
2
|
|
Leases – financial
income
|
|
|
(364)
|
|
|
(233)
|
|
|
(1,007)
|
|
|
(2,432)
|
|
Retired CEO
compensation
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(96)
|
|
Hostile attempt related
costs
|
|
|
-
|
|
|
3,971
|
|
|
-
|
|
|
3,971
|
|
Restructuring and other
charges
|
|
|
-
|
|
|
-
|
|
|
897
|
|
|
-
|
|
Acquisition- and
integration-related
|
|
|
283
|
|
|
-
|
|
|
283
|
|
|
-
|
|
Non-cash tax
adjustments
|
|
|
630
|
|
|
81
|
|
|
2,373
|
|
|
427
|
|
Non-GAAP net income
(loss)
|
|
$
|
4,964
|
|
$
|
4,124
|
|
$
|
12,997
|
|
$
|
(197)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic net income
(loss) per share
|
|
$
|
0.04
|
|
$
|
(0.01)
|
|
$
|
0.09
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income
(loss) per share
|
|
$
|
0.04
|
|
$
|
(0.01)
|
|
$
|
0.09
|
|
$
|
(0.06)
|
|
Non-GAAP basic and
diluted net income (loss) per share
|
|
$
|
0.06
|
|
$
|
0.05
|
|
$
|
0.15
|
|
$
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing GAAP
basic net income (loss) per share
|
|
|
84,688,985
|
|
|
84,200,177
|
|
|
84,470,709
|
|
|
84,060,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing GAAP
diluted net income (loss) per share
|
|
|
85,488,113
|
|
|
84,200,177
|
|
|
85,265,666
|
|
|
84,060,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares used in computing
Non-GAAP diluted net income (loss) per share
|
|
|
87,228,483
|
|
|
85,970,107
|
|
|
86,897,235
|
|
|
84,060,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ceragon Investor & Media Contact:
Rob Fink or Bob Meyers
FNK IR
Tel. 1+646-809-4048
crnt@fnkir.com
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SOURCE Ceragon Networks Ltd.