CERAGON NETWORKS LTD.
(Translation of registrant’s name into English) |
24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of principal executive offices) |
CERAGON NETWORKS LTD.
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Date: February 28, 2012
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By: /s/ Donna Gershowitz
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Name: Donna Gershowitz
Title: VP and General Counsel
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·
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Europe:
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24%
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·
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Africa:
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21%
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·
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North America:
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8%
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Latin America:
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21%
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India:
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10%
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APAC:
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16%
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Company and Investor Contact:
Yoel Knoll
Ceragon Networks Ltd.
Tel. +1 (201)-853-0228
yoelk@ceragon.com
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Media Contact:
Abigail Levy-Gurwitz
Ceragon Networks Ltd.
Tel: +1-(201)-853-0271
abigaill@ceragon.com
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Media Contact:
Karen Quatromoni
Rainier Communications
Tel. 508-475-0025 x150
kquatromoni@rainierco.com
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Join the Discussion:
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Three months ended
December 31
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Year ended
December 31,
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|||||||||||||||
2011
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2010
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2011
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2010
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|||||||||||||
Revenues
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$ | 118,487 | $ | 66,983 | $ | 445,269 | $ | 249,852 | ||||||||
Cost of revenues
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84,096 | 42,225 | 323,191 | 160,470 | ||||||||||||
Gross profit
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34,391 | 24,758 | 122,078 | 89,382 | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development, net
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12,534 | 6,732 | 50,456 | 25,115 | ||||||||||||
Selling and marketing
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20,540 | 9,641 | 81,716 | 37,179 | ||||||||||||
General and administrative
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8,337 | 3,612 | 26,524 | 12,328 | ||||||||||||
Restructuring costs
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- | - | 7,834 | - | ||||||||||||
Acquisition related costs
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- | 775 | 4,919 | 775 | ||||||||||||
Total operating expenses
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$ | 41,411 | $ | 20,760 | $ | 171,449 | $ | 75,397 | ||||||||
Operating profit (loss)
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(7,020 | ) | 3,998 | (49,371 | ) | 13,985 | ||||||||||
Financial income (expenses), net
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(1,024 | ) | 124 | (2,024 | ) | 1,255 | ||||||||||
Income (loss) before taxes
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(8,044 | ) | 4,122 | (51,395 | ) | 15,240 | ||||||||||
Taxes on income
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123 | 304 | 2,259 | 1,178 | ||||||||||||
Net Income (loss)
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$ | (8,167 | ) | $ | 3,818 | $ | (53,654 | ) | $ | 14,062 | ||||||
Basic net earnings (loss) per share
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$ | (0.23 | ) | $ | 0.11 | $ | (1.49 | ) | $ | 0.40 | ||||||
Diluted net earnings (loss) per share
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$ | (0.23 | ) | $ | 0.10 | $ | (1.49 | ) | $ | 0.38 | ||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
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36,241,106 | 35,106,882 | 35,975,434 | 34,854,657 | ||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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36,241,106 | 36,995,821 | 35,975,434 | 36,564,830 |
December 31,
2011
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December 31,
2010
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 28,991 | $ | 37,725 | ||||
Short-term bank deposits
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7,159 | 23,357 | ||||||
Marketable securities
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9,665 | 7,363 | ||||||
Trade receivables, net
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143,247 | 88,074 | ||||||
Deferred taxes, net
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6,874 | 4,057 | ||||||
Other accounts receivable and prepaid expenses
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37,281 | 15,425 | ||||||
Inventories
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93,465 | 65,921 | ||||||
Total current assets
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326,682 | 241,922 | ||||||
LONG-TERM INVESTMENTS:
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Long-term marketable securities
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3,716 | 13,088 | ||||||
Severance pay funds and pension
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6,360 | 6,039 | ||||||
Total long-term investments
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10,076 | 19,127 | ||||||
OTHER ASSETS:
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Long-term receivables
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5,257 | - | ||||||
Deferred taxes, net
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10,266 | 8,829 | ||||||
Goodwill and intangible assets, net
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28,032 | 1,093 | ||||||
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Total other assets
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43,555 | 9,922 | ||||||
PROPERTY AND EQUIPMENT, NET
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30,573 | 16,211 | ||||||
Total assets
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$ | 410,886 | $ | 287,182 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Current maturities of long term loan
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$ | 8,232 | $ | - | ||||
Trade payables
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77,395 | 40,537 | ||||||
Deferred revenues
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38,308 | 20,661 | ||||||
Other accounts payable and accrued expenses
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47,309 | 13,215 | ||||||
Total current liabilities
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171,244 | 74,413 | ||||||
LONG-TERM LIABILITIES
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Long term bank loan, net of current maturities
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26,768 | - | ||||||
Accrued severance pay and pension
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11,996 | 8,600 | ||||||
Other long term payables
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39,827 | - | ||||||
78,591 | 8,600 | |||||||
SHAREHOLDERS' EQUITY:
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Share capital:
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Ordinary shares
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97 | 95 | ||||||
Additional paid-in capital
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311,911 | 300,875 | ||||||
Treasury shares at cost
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(20,091 | ) | (20,091 | ) | ||||
Other comprehensive income (loss)
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(343 | ) | 159 | |||||
Accumulated deficits
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(130,523 | ) | (76,869 | ) | ||||
Total shareholders' equity
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161,051 | 204,169 | ||||||
Total liabilities and shareholders' equity
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$ | 410,886 | $ | 287,182 |
Three months ended
December 31,
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Year ended
December 31,
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2011
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2010
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2011
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2010
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Cash flow from operating activities:
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||||||||||||||||
Net income (loss)
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$ | (8,167 | ) | $ | 3,818 | $ | (53,654 | ) | $ | 14,062 | ||||||
Adjustments to reconcile net income to net cash used in operating activities:
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Depreciation and amortization
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4,497 | 1,321 | 14,393 | 4,712 | ||||||||||||
Stock-based compensation expense
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2,031 | 1,541 | 6,564 | 4,207 | ||||||||||||
Decrease (Increase) in trade and other receivables, net
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6,930 | (25,744 | ) | 3,440 | (27,229 | ) | ||||||||||
Decrease (Increase) in inventory, net of write off
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7,617 | (4,071 | ) | 40,643 | 4 | |||||||||||
Increase (decrease) in trade payables and accrued liabilities
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(4,756 | ) | 20,084 | (20,650 | ) | (8,323 | ) | |||||||||
Increase (decrease) in deferred revenues
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(42 | ) | 7,902 | (11,925 | ) | 2,113 | ||||||||||
Increase in deferred tax asset, net
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(1,269 | ) | (114 | ) | (1,237 | ) | (469 | ) | ||||||||
Other adjustments
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595 | 191 | 2,301 | 226 | ||||||||||||
Net cash provided by (used in) operating activities
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$ | 7,436 | $ | 4,928 | $ | (20,125 | ) | $ | (10,697 | ) | ||||||
Cash flow from investing activities:
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||||||||||||||||
Purchase of property and equipment ,net
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(4,696 | ) | (2,083 | ) | (14,447 | ) | (9,798 | ) | ||||||||
Payment for business acquisition *)
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- | - | (42,405 | ) | (1,232 | ) | ||||||||||
Investment in short and long-term bank deposit
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- | (1,972 | ) | (7,304 | ) | (13,754 | ) | |||||||||
Proceeds from short and long-term bank deposits
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2,368 | 6,580 | 25,664 | 31,680 | ||||||||||||
Investment in held-to-maturity marketable securities
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- | - | - | (18,339 | ) | |||||||||||
Proceeds and maturities of held-to-maturity and available-for-sale marketable securities
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201 | 9,091 | 10,459 | 16,591 | ||||||||||||
Net cash provided by (used in) investing activities
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$ | (2,127 | ) | $ | 11,616 | $ | (28,033 | ) | $ | 5,148 | ||||||
Cash flow from financing activities:
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Proceeds from exercise of options
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518 | 1,635 | 4,474 | 4,935 | ||||||||||||
Long term bank loan raised in connection with business acquisition
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- | - | 35,000 | - | ||||||||||||
Net cash provided by financing activities
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$ | 518 | $ | 1,635 | $ | 39,474 | $ | 4,935 | ||||||||
Translation adjustments on cash and cash equivalents
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$ | 223 | $ | - | $ | (50 | ) | $ | - | |||||||
Increase (Decrease) in cash and cash equivalents
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$ | 6,050 | $ | 18,179 | $ | (8,734 | ) | $ | (614 | ) | ||||||
Cash and cash equivalents at the beginning of the period
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22,941 | 19,546 | 37,725 | 38,339 | ||||||||||||
Cash and cash equivalents at the end of the period
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$ | 28,991 | $ | 37,725 | $ | 28,991 | $ | 37,725 |
*) Excluding cash and cash equivalents
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Three months ended December 31,
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2011
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2010
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GAAP (as reported)
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Adjustments
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Non-GAAP
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Non-GAAP
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Revenues
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$ | 118,487 | $ | 118,487 | $ | 66,983 | ||||||||||
Cost of revenues
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84,096 | 4,740 | (a) | 79,356 | 42,142 | |||||||||||
Gross profit
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34,391 | 39,131 | 24,841 | |||||||||||||
Operating expenses:
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Research and development, net
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12,534 | 626 | (b) | 11,908 | 6,471 | |||||||||||
Selling and marketing
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20,540 | 2,604 | (c) | 17,936 | 9,402 | |||||||||||
General and administrative
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8,337 | 2,465 | (d) | 5,872 | 2,654 | |||||||||||
Total operating expenses
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$ | 41,411 | $ | 35,716 | $ | 18,527 | ||||||||||
Operating profit (loss)
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(7,020 | ) | 3,415 | 6,314 | ||||||||||||
Financial income (expenses), net
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(1,024 | ) | (1,024 | ) | 124 | |||||||||||
Income (loss) before taxes
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(8,044 | ) | 2,391 | 6,438 | ||||||||||||
Taxes on income
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123 | 123 | 304 | |||||||||||||
Net income (loss)
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$ | (8,167 | ) | $ | 2,268 | $ | 6,134 | |||||||||
Basic net earnings (loss) per share
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$ | (0.23 | ) | $ | 0.06 | $ | 0.17 | |||||||||
Diluted net earnings (loss) per share
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$ | (0.23 | ) | $ | 0.06 | $ | 0.17 | |||||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
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36,241,106 | 36,241,106 | 35,106,882 | |||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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36,241,106 | 37,504,556 | 36,995,821 | |||||||||||||
Total adjustments
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10,435 | |||||||||||||||
(a)
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Cost of revenues includes $0.4 million of amortization of purchased intangible assets, $2.8 million of inventory step-up, $0.1 million of stock based compensation expenses and $1.5 million of integration plan related costs in the three months ended December 31, 2011.
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(b)
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Research and development expenses include $0.2 million of integration plan related costs and $0.4 million of stock based compensation expenses in the three months ended December 31, 2011.
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(c)
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Selling and marketing expenses includes $1.1 million of amortization of purchased intangible assets, $0.8 million of integration plan related costs and $0.7 million of stock based compensation expenses in the three months endedDecember 31, 2011.
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(d)
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General and administration expenses includes $1.6 million of integration plan related costs and $0.8 million of stock based compensation expenses in the three months ended December 31, 2011.
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Year ended December 31,
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||||||||||||||||
2011
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2010
|
|||||||||||||||
GAAP (as reported)
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Adjustments
|
Non-GAAP
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Non-GAAP
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|||||||||||||
Revenues
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$ | 445,269 | $ | 445,269 | $ | 249,852 | ||||||||||
Cost of revenues
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323,191 | 22,207 | (a) | 300,984 | 160,155 | |||||||||||
Gross profit
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122,078 | 144,285 | 89,697 | |||||||||||||
Operating expenses:
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Research and development, net
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50,456 | 4,031 | (b) | 46,425 | 23,151 | |||||||||||
Selling and marketing
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81,716 | 10,030 | (c) | 71,686 | 36,002 | |||||||||||
General and administrative
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26,524 | 5,040 | (d) | 21,484 | 10,427 | |||||||||||
Restructuring costs
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7,834 | 7,834 | - | - | ||||||||||||
Acquisition related costs
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4,919 | 4,919 | - | - | ||||||||||||
Total operating expenses
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$ | 171,449 | $ | 139,595 | 69,580 | |||||||||||
Operating profit (loss)
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(49,371 | ) | 4,690 | 20,117 | ||||||||||||
Financial income (expenses), net
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(2,024 | ) | (2,024 | ) | 1,255 | |||||||||||
Income (loss) before taxes
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(51,395 | ) | 2,666 | 21,372 | ||||||||||||
Taxes on income
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2,259 | 2,259 | 1,178 | |||||||||||||
Net income (loss)
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$ | (53,654 | ) | $ | 407 | $ | 20,194 | |||||||||
Basic net earnings (loss) per share
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$ | (1.49 | ) | $ | 0.01 | $ | 0.58 | |||||||||
Diluted net earnings (loss) per share
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$ | (1.49 | ) | $ | 0.01 | $ | 0.55 | |||||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
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35,975,434 | 35,975,434 | 34,854,657 | |||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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35,975,434 | 37,522,665 | 36,564,830 | |||||||||||||
Total adjustments
|
54,061 |
(a)
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Cost of revenues includes $1.2 million of amortization of purchased intangible assets, $15.4 million of inventory step-up, $0.3 million of stock based compensation expenses and $5.3 million of integration plan related costs in the year ended December 31, 2011.
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(b)
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Research and development expenses include $2.5 million of integration plan related costs and $1.5 million of stock based compensation expenses in the year ended December 31, 2011.
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(c)
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Selling and marketing expenses includes $3.0 million of amortization of purchased intangible assets, $4.6 million of integration plan related costs and $2.5 million of stock based compensation expenses in the year ended December 31, 2011.
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(d)
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General and administration expenses include $2.7 million of integration plan related costs and $2.3 million of stock based compensation expenses in the year ended December 31, 2011.
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Three months ended
|
Year ended
|
|||||||
December 31, 2011
|
||||||||
Reported GAAP net operating loss
|
(7,020 | ) | (49,371 | ) | ||||
Stock based compensation expenses
|
2,031 | 6,564 | ||||||
Amortization of purchased intangible assets
|
1,457 | 4,162 | ||||||
Inventory step up
|
2,815 | 15,442 | ||||||
Integration plan related costs
|
4,132 | 15,140 | ||||||
Restructuring costs
|
- | 7,834 | ||||||
Acquisition related costs
|
- | 4,919 | ||||||
Non-GAAP net operating profit
|
3,415 | 4,690 |
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