Company Guides for Double Digit Growth;
Targeting to Further Penetrate Private Network Markets
ROSH HA'AIN, Israel, Feb. 20,
2024 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ:
CRNT), the global innovator and leading solutions provider of 5G
wireless transport, today reported its financial results for the
fourth quarter and full year period ended December 31, 2023.
Q4 2023 Financial Highlights:
- Revenues of $90.4 million, up 20%
year-over-year
- Siklu acquisition, which closed on December 4, 2023, contributed modestly to
quarterly revenue, in-line with expectations
- Operating income of $4.2 million
on a GAAP basis, or $7.8 million on a
non-GAAP basis
- Net loss of $(1.2) million on a
GAAP basis, and net income of $3.7
million on a non-GAAP basis
- EPS of $(0.01) per diluted share
on a GAAP basis, or $0.04 per diluted
share on a non-GAAP basis
FY 2023 Financial Highlights:
- Revenues of $347.2 million, up
18% year-over-year, exceeding full-year guidance
- Ceragon would have achieved the higher-end of its full-year
revenue guidance even without contribution from Siklu
- Operating income of $21.2 million
on a GAAP basis, or a record $29.0
million on a non-GAAP basis
- Net income of $6.2 million on a
GAAP basis, and $16.7 million on a
non-GAAP basis
- EPS of $0.07 per diluted share on
a GAAP basis, or $0.20 per diluted
share on a non-GAAP basis
Q4 2023 Business Highlights:
- Completed the acquisition of Siklu, expanding presence in
North America and augmenting
Ceragon's offering in the Fixed Wireless Access market
- North America:
- Continued strong bookings, supported by demand for 5G
capabilities from Tier-1 customers and increased footprint with
private network customers
- Fourth consecutive quarter of revenues exceeding $20 million
- India:
- Continued strong bookings, including initial orders from the
approximately $150 million project
from global integrator, in support of a network modernization
project for a Tier 1 Operator
- Strongest region in terms of revenue, with record quarterly
revenue since Q2 2018
Doron Arazi, CEO, commented:
"Ceragon delivered revenue growth that exceeded our full-year
outlook and record full-year non-GAAP operating income. We are
encouraged with the recent acquisition of Siklu bolstering our
position in the fastest-growing verticals of our market, and
continued strong demand for our solutions. In our two key markets,
North America and India, we continue to experience strong demand
and we remain optimistic that these markets will continue to drive
our growth. During 2023, we expanded our presence in the private
network market, establishing a scalable foundation for continued
growth."
"We have also reached the point where we can unlock meaningful
operating leverage," continued Arazi. "Our non-GAAP gross
margins in the quarter exceeded 35%, and we delivered record levels
of annual non-GAAP operating profit. Ceragon has also generated
significant full-year free cash flow, enabling us to continue
enhancing our product portfolio while growing our
profitability."
Primary Fourth Quarter 2023 Financial Results:
Revenues were $90.4
million, up 20% from $75.5
million in Q4 2022 and up 3.6% from $87.3 million in Q3 2023.
Gross profit was $31.1
million, giving us a gross margin of 34.4%, compared
to gross margin of 32.5% in Q4 2022 and 34.7% in Q3 2023.
Operating income was $4.2
million compared to $(10.6)
million for Q4 2022 and $6.7
million for Q3 2023. The fourth quarter of 2023 included
expenses related to the acquisition of Siklu and the
consolidation of Siklu results since closing on December 4, 2023.
Net income (loss) was $(1.2)
million, or $(0.01) per
diluted share, compared to $(15.0)
million, or $(0.18) per
diluted share for Q4 2022 and $3.4
million, or $0.04 per diluted
share for Q3 2023.
Non-GAAP results were as follows: Gross margin was 35.1%,
operating profit was $7.8 million,
and net income of $3.7 million, or
$0.04 per diluted share. Management
continues to expect Siklu to be accretive to non-GAAP earnings
by the second-half of 2024.
Primary Full-Year 2023 unaudited Financial Results:
Revenues were $347.2
million, up 18% from $295.2
million in 2022.
Gross profit was $119.9
million, giving us a gross margin of 34.5%, compared
to a gross margin of 31.5% in 2022.
Operating income (loss) was $21.2
million compared to $(10.9)
million for 2022.
Net income (loss) was $6.2
million, or $0.07 per diluted
share, compared to $(19.7) million,
or $(0.23) per diluted share for
2022.
Non-GAAP results were as follows: Gross margin was 34.8%,
operating profit was $29.0 million,
and net income was $16.7 million, or
$0.20 per diluted share.
Balance Sheet
Cash and cash equivalents were $28.2 million at December
31, 2023, compared to $22.9
million at December 31,
2022.
For a reconciliation of GAAP to non-GAAP results, see the
attached tables.
Revenue Breakout by Geography:
|
Q4
2023
|
India
|
34 %
|
North America
|
27 %
|
Latin America
|
13 %
|
Europe
|
11 %
|
Africa
|
8 %
|
APAC
|
7 %
|
Outlook
For 2024, management expects:
- Revenue of $385 million to
$405 million, representing growth of
11% to 17% compared to 2023 revenue. This guidance includes the
contribution from Siklu, which was acquired in December 2023.
- Non-GAAP operating margins are targeted to be at least 10% at
the mid-point of the revenue guidance.
- As a result, management expects increased non-GAAP profit and
positive free cash flow for the full year of 2024.
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 the live call, a replay 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 war situation in Israel, including in Gaza with the Hamas and in Lebanon with the Hezbollah and the related
evolving regional conflict, including without limitation, the Houti
attacks on marine vessels; risks associated with delays in the
transition to 5G technologies and in the 5G rollout; the risks
associated with the introduction of new products to the market,
including but not limited to potential delays, unexpected costs,
regulatory hurdles and potential technical flaws; 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; disagreements with tax
authorities regarding tax positions that we have taken could result
in increased tax liabilities; 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;
potential adverse reactions or changes to business relationships
resulting from the completion of the transaction with Siklu, and
ongoing or potential litigations or disputes, incidental to the
conduct of Siklu's business and other risks related to the
integration of Siklu's business into Ceragon business;
disagreements with tax authorities regarding tax positions that we
have taken could result in increased tax liabilities 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.
The results reported in this press-release are preliminary
and unaudited results, and investors should be aware of possible
discrepancies between these results and the audited results to be
reported, due to various factors.
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.
Ceragon Investor & Media Contact:
Rob Fink
FNK IR
Tel. 1+646-809-4048
crnt@fnkir.com
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, U.S.
dollars in thousands, except share and per share
data)
|
(Unaudited)
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
90,359
|
|
$
75,531
|
|
$
347,179
|
|
$
295,173
|
Cost of
revenues
|
|
59,296
|
|
50,999
|
|
227,310
|
|
202,110
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
31,063
|
|
24,532
|
|
119,869
|
|
93,063
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
9,070
|
|
8,080
|
|
32,274
|
|
29,690
|
Sales and
Marketing
|
|
10,544
|
|
8,998
|
|
40,577
|
|
35,795
|
General and
administrative
|
|
6,445
|
|
17,826
|
|
23,793
|
|
34,295
|
Restructuring and
related charges
|
|
-
|
|
-
|
|
897
|
|
-
|
Acquisition and
integration-related charges
|
|
835
|
|
-
|
|
1,118
|
|
-
|
Other operating
expenses (*)
|
|
-
|
|
249
|
|
-
|
|
4,220
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
26,894
|
|
35,153
|
|
98,659
|
|
104,000
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
4,169
|
|
(10,621)
|
|
21,210
|
|
(10,937)
|
|
|
|
|
|
|
|
|
|
Financial expenses and
others, net
|
|
3,402
|
|
3,012
|
|
8,468
|
|
6,306
|
|
|
|
|
|
|
|
|
|
Income (loss) before
taxes
|
|
767
|
|
(13,633)
|
|
12,742
|
|
(17,243)
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
|
1,970
|
|
1,385
|
|
6,522
|
|
2,446
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
(1,203)
|
|
$
(15,018)
|
|
$
6,220
|
|
$
(19,689)
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share
|
|
$
(0.01)
|
|
$
(0.18)
|
|
$
0.07
|
|
$
(0.23)
|
Weighted average number
of shares used in computing basic net income (loss) per
share
|
|
85,054,173
|
|
84,347,548
|
|
84,617,774
|
|
84,132,982
|
Diluted net income (loss) per
share
|
|
$
(0.01)
|
|
$
(0.18)
|
|
$
0.07
|
|
$
(0.23)
|
Weighted average number
of shares used in computing diluted net income (loss) per
share
|
|
85,054,173
|
|
84,347,548
|
|
85,482,626
|
|
84,132,982
|
|
|
|
|
|
|
|
|
|
(*) Hostile attempt
related costs.
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
(U.S. dollars in thousands)
|
|
|
|
|
|
|
|
December
31,
2023
|
|
December
31,
2022
|
ASSETS
|
|
Unaudited
|
|
Audited
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
28,237
|
|
$
22,948
|
Trade receivables,
net
|
|
104,321
|
|
100,034
|
Other accounts
receivable and prepaid expenses
|
|
16,571
|
|
15,756
|
Inventories
|
|
68,811
|
|
72,009
|
|
|
|
|
|
Total current
assets
|
|
217,940
|
|
210,747
|
|
|
|
|
|
NON-CURRENT
ASSETS:
|
|
|
|
|
Severance
pay and pension fund
|
|
4,985
|
|
4,633
|
Property
and equipment, net
|
|
30,659
|
|
29,456
|
Operating lease right-of-use assets
|
|
18,837
|
|
17,962
|
Intangible
assets, net
|
|
16,401
|
|
8,208
|
Goodwill
|
|
7,749
|
|
-
|
Other non-current assets
|
|
1,954
|
|
18,312
|
|
|
|
|
|
Total
non-current assets
|
|
80,585
|
|
78,571
|
|
|
|
|
|
Total
assets
|
|
$
298,525
|
|
$
289,318
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
67,032
|
|
67,384
|
Deferred
revenues
|
|
5,507
|
|
3,343
|
Short-term
loans
|
|
32,600
|
|
37,500
|
Operating lease
liabilities
|
|
3,889
|
|
3,745
|
Other accounts payable
and accrued expenses
|
|
23,925
|
|
20,864
|
|
|
|
|
|
Total current
liabilities
|
|
132,953
|
|
132,836
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
Accrued severance pay
and pension
|
|
9,399
|
|
9,314
|
Deferred
revenues
|
|
670
|
|
11,545
|
Other long-term
payables
|
|
7,768
|
|
2,653
|
Operating lease
liabilities
|
|
13,716
|
|
13,187
|
|
|
|
|
|
Total
long-term liabilities
|
|
31,553
|
|
36,699
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share
capital:
|
|
|
|
|
Ordinary shares
|
|
222
|
|
224
|
Additional paid-in
capital
|
|
437,161
|
|
432,214
|
Treasury shares at
cost
|
|
(20,091)
|
|
(20,091)
|
Other comprehensive
loss
|
|
(8,085)
|
|
(11,156)
|
Accumulated
deficit
|
|
(275,188)
|
|
(281,408)
|
|
|
|
|
|
Total
shareholders' equity
|
|
134,019
|
|
119,783
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
$
298,525
|
|
$
289,318
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOW
(Unaudited, U.S. dollars, in
thousands)
(Unaudited)
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Year
ended
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flow from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(1,203)
|
|
$
(15,018)
|
|
$
6,220
|
|
$
(19,689)
|
Adjustments to
reconcile net income (loss) to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,466
|
|
2,622
|
|
9,967
|
|
11,040
|
Loss from sale of
property and equipment, net
|
-
|
|
-
|
|
61
|
|
20
|
Stock-based
compensation expense
|
938
|
|
958
|
|
3,964
|
|
3,560
|
Increase (decrease) in
accrued severance pay and pensions, net
|
88
|
|
245
|
|
(267)
|
|
(445)
|
Decrease (increase) in
trade receivables, net
|
1,856
|
|
15,942
|
|
(2,370)
|
|
18,428
|
Decrease (increase) in
other accounts receivable and prepaid
expenses (including other long term assets)
|
15,085
|
|
1,414
|
|
16,994
|
|
(345)
|
Decrease
(increase) in inventory
|
4,681
|
|
(7,845)
|
|
6,303
|
|
(11,155)
|
Decrease in operating
lease right-of-use assets
|
794
|
|
845
|
|
3,781
|
|
3,571
|
Increase in trade
payables
|
(1,121)
|
|
(5,191)
|
|
(1,847)
|
|
(2,018)
|
Increase (decrease) in
other accounts payable and accrued
expenses (including other long term liabilities)
|
(2,720)
|
|
(2,190)
|
|
1,677
|
|
(4,154)
|
Decrease in operating
lease liability
|
(73)
|
|
(779)
|
|
(4,034)
|
|
(5,937)
|
Increase
(decrease) in deferred
revenues
|
(9,830)
|
|
494
|
|
(9,562)
|
|
2,229
|
Net cash
provided by (used in) operating activities
|
$
10,961
|
|
$
(8,503)
|
|
$
30,887
|
|
$
(4,895)
|
Cash flow from
investing activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(2,548)
|
|
(1,432)
|
|
(9,955)
|
|
(10,464)
|
Purchases of intangible
assets
|
(661)
|
|
(697)
|
|
(2,944)
|
|
(1,957)
|
Payments made in
connection with business acquisitions, net
of acquired cash
|
(7,971)
|
|
-
|
|
(7,971)
|
|
-
|
Net cash used in
investing activities
|
$
(11,180)
|
|
$
(2,129)
|
|
$ (20,870)
|
|
$ (12,421)
|
|
|
|
|
|
|
|
|
Cash flow from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from exercise
of options
|
9
|
|
-
|
|
39
|
|
410
|
Proceeds from
(repayments of) bank credits and loans,
net
|
(5,600)
|
|
7,600
|
|
(4,900)
|
|
22,700
|
Net cash
provided by (used in) financing activities
|
$
(5,591)
|
|
$
7,600
|
|
$
(4,861)
|
|
$
23,110
|
Translation
adjustments on cash and cash equivalents
|
$
81
|
|
$
16
|
|
$
133
|
|
$
75
|
Increase (decrease)
in cash and cash equivalents
|
$
(5,729)
|
|
$
(3,016)
|
|
$
5,289
|
|
$
5,869
|
Cash and cash
equivalents at the beginning of the period
|
33,966
|
|
25,964
|
|
22,948
|
|
17,079
|
Cash and cash
equivalents at the end of the period
|
$
28,237
|
|
$
22,948
|
|
$
28,237
|
|
$
22,948
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
RESULTS
(U.S. dollars in thousands, except share and per
share data
(Unaudited)
|
|
|
|
|
|
|
Three months
ended
|
|
Year ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost
of revenues
|
$
|
59,296
|
|
$
|
50,999
|
|
$
|
227,310
|
|
$
|
202,110
|
|
Stock-based
compensation expenses
|
|
(115)
|
|
|
(169)
|
|
|
(482)
|
|
|
(587)
|
|
Changes in indirect tax
positions
|
|
-
|
|
|
(279)
|
|
|
(3)
|
|
|
(281)
|
|
Amortization of
acquired intangible assets
|
|
(57)
|
|
|
-
|
|
|
(57)
|
|
|
-
|
|
Excess cost on acquired
inventory in business combination*
|
|
(525)
|
|
|
-
|
|
|
(525)
|
|
|
-
|
|
Non-GAAP cost
of revenues
|
$
|
58,599
|
|
$
|
50,551
|
|
$
|
226,243
|
|
$
|
201,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
31,063
|
|
$
|
24,532
|
|
$
|
119,869
|
|
$
|
93,063
|
|
Stock-based
compensation expenses
|
|
115
|
|
|
169
|
|
|
482
|
|
|
587
|
|
Changes in indirect tax
positions
|
|
-
|
|
|
279
|
|
|
3
|
|
|
281
|
|
Amortization of
acquired intangible assets
|
|
57
|
|
|
-
|
|
|
57
|
|
|
-
|
|
Excess cost on acquired
inventory in business combination
|
|
525
|
|
|
-
|
|
|
525
|
|
|
-
|
|
Non-GAAP gross
profit
|
$
|
31,760
|
|
$
|
24,980
|
|
$
|
120,936
|
|
$
|
93,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Research and
development expenses
|
$
|
9,070
|
|
$
|
8,080
|
|
$
|
32,274
|
|
$
|
29,690
|
|
Stock-based
compensation expenses
|
|
(156)
|
|
|
(217)
|
|
|
(828)
|
|
|
(405)
|
|
Loss from termination
of joint development agreement
|
|
(1,199)
|
|
|
-
|
|
|
(1,199)
|
|
|
-
|
|
Non-GAAP Research and
development expenses
|
$
|
7,715
|
|
$
|
7,863
|
|
$
|
30,247
|
|
$
|
29,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Sales and
Marketing expenses
|
$
|
10,544
|
|
$
|
8,998
|
|
$
|
40,577
|
|
$
|
35,795
|
|
Stock-based
compensation expenses
|
|
(320)
|
|
|
(393)
|
|
|
(1,416)
|
|
|
(1,355)
|
|
Amortization of
acquired intangible assets
|
|
(49)
|
|
|
-
|
|
|
(49)
|
|
|
-
|
|
Non-GAAP Sales and
Marketing expenses
|
$
|
10,175
|
|
$
|
8,605
|
|
$
|
39,112
|
|
$
|
34,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP General and
Administrative expenses
|
$
|
6,445
|
|
$
|
17,826
|
|
$
|
23,793
|
|
$
|
34,295
|
|
Stock-based
compensation expenses
|
|
(347)
|
|
|
(179)
|
|
|
(1,238)
|
|
|
(1,213)
|
|
Retired CEO
compensation
|
|
-
|
|
|
-
|
|
|
-
|
|
|
96
|
|
Non-GAAP General and
Administrative expenses
|
$
|
6,098
|
|
$
|
17,647
|
|
$
|
22,555
|
|
$
|
33,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Restructuring and
related charges
|
$
|
-
|
|
$
|
-
|
|
$
|
897
|
|
$
|
-
|
|
Restructuring and
related charges
|
|
-
|
|
|
-
|
|
|
(897)
|
|
|
-
|
|
Non-GAAP restructuring
and related charges
|
$
|
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
GAAP Acquisition and
integration-related charges
|
$
|
835
|
|
$
|
-
|
|
$
|
1,118
|
|
$
|
-
|
|
Acquisition and
integration-related
|
|
(835)
|
|
|
-
|
|
|
(1,118)
|
|
|
-
|
|
Non-GAAP
acquisition and integration-related
charges
|
$
|
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Other operating
expenses
|
$
|
-
|
|
$
|
249
|
|
$
|
-
|
|
$
|
4,220
|
|
Hostile attempt related
costs
|
|
-
|
|
|
(249)
|
|
|
-
|
|
|
(4,220)
|
|
Non-GAAP other
operating expenses
|
$
|
-
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in
thousands, except share and per share data
(Unaudited)
|
|
|
|
Three months
ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP operating income
(loss)
|
|
|
$
|
4,169
|
|
$
|
(10,621)
|
|
$
|
21,210
|
|
$
|
(10,937)
|
Stock-based
compensation expenses
|
|
|
|
938
|
|
|
958
|
|
|
3,964
|
|
|
3,560
|
Changes in indirect tax
positions
|
|
|
|
-
|
|
|
279
|
|
|
3
|
|
|
281
|
Amortization of
acquired intangible assets
|
|
|
|
106
|
|
|
-
|
|
|
106
|
|
|
-
|
Excess cost on acquired
inventory in business combination*
|
|
|
|
525
|
|
|
-
|
|
|
525
|
|
|
-
|
Loss from termination
of joint development agreement
|
|
|
|
1,199
|
|
|
-
|
|
|
1,199
|
|
|
-
|
Retired CEO
compensation
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(96)
|
Hostile attempt related
costs
|
|
|
|
-
|
|
|
249
|
|
|
-
|
|
|
4,220
|
Restructuring and other
charges
|
|
|
|
-
|
|
|
-
|
|
|
897
|
|
|
-
|
Acquisition and
integration-related charges
|
|
|
|
835
|
|
|
-
|
|
|
1,118
|
|
|
-
|
Non-GAAP operating
income (loss)
|
|
|
$
|
7,772
|
|
$
|
(9,135)
|
|
$
|
29,022
|
|
$
|
(2,972)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP financial expenses
and others, net
|
|
|
$
|
3,402
|
|
$
|
3,012
|
|
$
|
8,468
|
|
$
|
6,306
|
Non-cash revaluation
associated with acquisition
|
|
|
|
(110)
|
|
|
-
|
|
|
(110)
|
|
|
-
|
Leases – financial
income (expenses)
|
|
|
|
(754)
|
|
|
(154)
|
|
|
253
|
|
|
2,278
|
Non-GAAP financial
expenses & others, net
|
|
|
$
|
2,538
|
|
$
|
2,858
|
|
$
|
8,611
|
|
$
|
8,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Tax
expenses
|
|
|
$
|
1,970
|
|
$
|
1,385
|
|
$
|
6,522
|
|
$
|
2,446
|
Non-cash tax
adjustments
|
|
|
|
(478)
|
|
|
(851)
|
|
|
(2,851)
|
|
|
(1,278)
|
Non-GAAP Tax
expenses
|
|
|
$
|
1,492
|
|
$
|
534
|
|
$
|
3,671
|
|
$
|
1,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in
thousands, except share and per share data
(Unaudited)
|
|
|
|
Three months
ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP net income
(loss)
|
|
|
$
|
(1,203)
|
|
$
|
(15,018)
|
|
$
|
6,220
|
|
$
|
(19,689)
|
Stock-based
compensation expenses
|
|
|
|
938
|
|
|
958
|
|
|
3,964
|
|
|
3,560
|
Changes in indirect tax
positions
|
|
|
|
-
|
|
|
279
|
|
|
3
|
|
|
281
|
Amortization of
acquired intangible assets
|
|
|
|
106
|
|
|
-
|
|
|
106
|
|
|
-
|
Excess cost on acquired
inventory in business combination*
|
|
|
|
525
|
|
|
-
|
|
|
525
|
|
|
-
|
Loss from termination
of joint development agreement
|
|
|
|
1,199
|
|
|
-
|
|
|
1,199
|
|
|
-
|
Retired CEO
compensation
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(96)
|
Hostile attempt related
costs
|
|
|
|
-
|
|
|
249
|
|
|
-
|
|
|
4,220
|
Restructuring and other
charges
|
|
|
|
-
|
|
|
-
|
|
|
897
|
|
|
-
|
Acquisition and
integration-related charges
|
|
|
|
835
|
|
|
-
|
|
|
1,118
|
|
|
-
|
Non-cash revaluation
associated with acquisition
|
|
|
|
110
|
|
|
-
|
|
|
110
|
|
|
-
|
Non-cash tax
adjustments
|
|
|
|
478
|
|
|
851
|
|
|
2,851
|
|
|
1,278
|
Leases – financial
income (expenses)
|
|
|
|
754
|
|
|
154
|
|
|
(253)
|
|
|
(2,278)
|
Non-GAAP net income
(loss)
|
|
|
$
|
3,742
|
|
$
|
(12,527)
|
|
$
|
16,740
|
|
$
|
(12,724)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Basic net income
(loss) per share
|
|
|
$
|
(0.01)
|
|
$
|
(0.18)
|
|
$
|
0.07
|
|
$
|
(0.23)
|
GAAP Diluted net income
(loss) per share
|
|
|
$
|
(0.01)
|
|
$
|
(0.18)
|
|
$
|
0.07
|
|
$
|
(0.23)
|
Non GAAP Diluted net
income (loss) per share (**)
|
|
|
$
|
0.04
|
|
$
|
(0.15)
|
|
$
|
0.20
|
|
$
|
(0.15)
|
(*)
Consists of charges to cost of revenues for the difference between
the fair value of acquired inventory in business combination, which
was recorded at fair value, and the actual cost of this inventory,
which impacts the Company's gross profit.
(**) Weighted average number of shares used in computing diluted
net income (loss) per share is the same as in GAAP
|
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SOURCE Ceragon Networks Ltd.