(Translation of registrant’s name into English)
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(Address of principal executive offices)
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CERAGON NETWORKS LTD.
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Date: May 7, 2012
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By:
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/s/ Donna Gershowitz | |
Name: Donna Gershowitz
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Title: VP and General Counsel
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Exhibit Description
Exhibit A – CERAGON NETWORKS REPORTS FIRST QUARTER 2012 FINANCIAL RESULTS
Achieves revenues of $117.8 million with improving gross margin and profitability
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·
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Europe:
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19%
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·
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Africa: 27%
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·
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North America:
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12%
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·
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Latin America:
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26%
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·
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India:
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9%
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·
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APAC: |
7%
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Company & Investor Contact:
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Media Contact:
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Media Contact:
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Yoel Knoll
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Abigail Levy-Gurwitz
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Karen Quatromoni
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Ceragon Networks Ltd.
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Ceragon Networks Ltd.
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Rainier Communications
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Tel: +1-(201)-853-0228
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Tel: +1-(201)-853-0271
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Tel. +1-(508)-475-0025 x150
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yoelk@ceragon.com
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abigaill@ceragon.com
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kquatromoni@rainierco.com
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Three months ended
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||||||||
March 31,
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||||||||
2012
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2011
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|||||||
Revenues
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$ | 117,783 | $ | 100,312 | ||||
Cost of revenues
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80,844 | 70,728 | ||||||
Gross profit
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36,939 | 29,584 | ||||||
Operating expenses:
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||||||||
Research and development, net
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12,155 | 12,457 | ||||||
Selling and marketing
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19,847 | 19,185 | ||||||
General and administrative
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7,215 | 5,523 | ||||||
Restructuring costs
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- | 7,834 | ||||||
Acquisition related costs
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- | 4,919 | ||||||
Total operating expenses
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$ | 39,217 | $ | 49,918 | ||||
Operating loss
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(2,278 | ) | (20,334 | ) | ||||
Financial expenses, net
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(906 | ) | (447 | ) | ||||
Loss before taxes
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(3,184 | ) | (20,781 | ) | ||||
Taxes on income
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(290 | ) | (595 | ) | ||||
Net loss
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$ | (3,474 | ) | $ | (21,376 | ) | ||
Basic net loss per share
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$ | (0.10 | ) | $ | (0.60 | ) | ||
Diluted net loss per share
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$ | (0.10 | ) | $ | (0.60 | ) | ||
Weighted average number of shares used in computing basic net loss per share
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36,346,482 | 35,603,764 | ||||||
Weighted average number of shares used in computing diluted net loss per share
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36,346,482 | 35,603,764 |
March 31,
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December 31,
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|||||||
2012
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2011
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|||||||
ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 39,418 | $ | 28,991 | ||||
Short-term bank deposits
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6,229 | 7,159 | ||||||
Marketable securities
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- | 9,665 | ||||||
Trade receivables, net
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147,062 | 143,247 | ||||||
Deferred taxes, net
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8,627 | 8,622 | ||||||
Other accounts receivable and prepaid expenses
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41,630 | 37,281 | ||||||
Inventories
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74,177 | 93,465 | ||||||
Total current assets
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317,143 | 328,430 | ||||||
LONG-TERM INVESTMENTS:
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Marketable securities
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3,850 | 3,716 | ||||||
Severance pay funds and pension
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6,683 | 6,360 | ||||||
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Total long-term investments
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$ | 10,533 | $ | 10,076 | ||||
OTHER ASSETS
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Deferred taxes, net
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8,868 | 8,898 | ||||||
Goodwill and Intangible assets, net
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27,191 | 28,032 | ||||||
Other long-term receivables
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7,960 | 5,257 | ||||||
Total other assets
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$ | 44,019 | $ | 42,187 | ||||
PROPERTY AND EQUIPMENT, NET
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30,964 | 30,465 | ||||||
Total assets
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$ | 402,659 | $ | 411,158 |
March 31,
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December 31,
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|||||||
2012 | 2011 | |||||||
CURRENT LIABILITIES:
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Current maturities of long term bank loan
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8,232 | 8,232 | ||||||
Trade payables
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82,847 | 77,395 | ||||||
Deferred revenues
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29,136 | 38,308 | ||||||
Other accounts payable and accrued expenses
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44,234 | 49,508 | ||||||
Total current liabilities
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$ | 164,449 | $ | 173,443 | ||||
LONG TERM LIABILITIES:
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Long term bank loan, net of current maturities
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24,710 | 26,768 | ||||||
Accrued severance pay and pension
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12,531 | 11,996 | ||||||
Other long term liabilities
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40,030 | 37,900 | ||||||
Total long term liabilities
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$ | 77,271 | $ | 76,664 | ||||
SHAREHOLDERS' EQUITY:
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Share capital:
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||||||||
Ordinary shares
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97 | 97 | ||||||
Additional paid-in capital
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313,709 | 311,911 | ||||||
Treasury shares at cost
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(20,091 | ) | (20,091 | ) | ||||
Other comprehensive income (loss)
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1,221 | (343 | ) | |||||
Accumulated deficits
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(133,997 | ) | (130,523 | ) | ||||
Total shareholders' equity
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$ | 160,939 | $ | 161,051 | ||||
Total liabilities and shareholders' equity
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$ | 402,659 | $ | 411,158 |
Three months ended
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March 31,
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2012
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2011
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Cash flow from operating activities:
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Net loss
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$ | (3,474 | ) | $ | (21,376 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
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Depreciation and amortization
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3,771 | 3,201 | ||||||
Stock-based compensation expense
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1,585 | 1,419 | ||||||
Decrease (increase) in trade and other receivables, net
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(8,651 | ) | 22,494 | |||||
Decrease in inventory, net of write-off
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19,460 | 9,825 | ||||||
Increase (decrease) in trade payables and accrued liabilities
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1,987 | (16,937 | ) | |||||
Decrease in deferred revenues
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(9,172 | ) | (10 | ) | ||||
Decrease (increase) in deferred tax asset, net
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(377 | ) | 31 | |||||
Other adjustments
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(104 | ) | (11 | ) | ||||
Net cash provided by (used in) operating activities
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$ | 5,025 | $ | (1,364 | ) | |||
Cash flow from investing activities:
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Purchase of property and equipment ,net
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(3,303 | ) | (2,789 | ) | ||||
Payment for business acquisition
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- | (42,405 | ) | |||||
Investment in short and long-term bank deposit
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(1,266 | ) | (2,254 | ) | ||||
Proceeds from short and long-term bank deposits
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2,250 | 13,796 | ||||||
Proceeds from sale and maturities of marketable securities
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9,717 | 4,235 | ||||||
Net cash provided by (used in) investing activities
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$ | 7,398 | $ | (29,417 | ) | |||
Cash flow from financing activities:
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Proceeds from exercise of options
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213 | 3,296 | ||||||
Proceeds from long-term bank loan
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- | 35,000 | ||||||
Repayment of long-term bank loan
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(2,058 | ) | - | |||||
Net cash provided by (used in) financing activities
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$ | (1,845 | ) | $ | 38,296 | |||
Translation adjustments on cash and cash equivalents
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$ | (151 | ) | $ | 354 | |||
Increase in cash and cash equivalents
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$ | 10,427 | $ | 7,869 | ||||
Cash and cash equivalents at the beginning of the period
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28,991 | 37,725 | ||||||
Cash and cash equivalents at the end of the period
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$ | 39,418 | $ | 45,594 |
Three months ended March 31,
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||||||||||||||||
2012
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2011
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GAAP
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Adjustments
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Non-GAAP
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Non-GAAP
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(as reported)
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Revenues
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$ | 117,783 | $ | 117,783 | $ | 100,312 | ||||||||||
Cost of revenues
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80,844 | 2,292 | (a) | 78,552 | 67,833 | |||||||||||
Gross profit
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36,939 | 39,231 | 32,479 | |||||||||||||
Operating expenses:
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Research and development, net
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12,155 | 424 | (b) | 11,731 | 11,041 | |||||||||||
Selling and marketing
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19,847 | 1,615 | (c) | 18,232 | 16,661 | |||||||||||
General and administrative
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7,215 | 852 | (d) | 6,363 | 4,592 | |||||||||||
Total operating expenses
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$ | 39,217 | $ | 36,326 | $ | 32,294 | ||||||||||
Operating profit (loss)
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(2,278 | ) | 2,905 | 185 | ||||||||||||
Financial expenses, net
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(906 | ) | (906 | ) | (447 | ) | ||||||||||
Income (loss) before taxes
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(3,184 | ) | 1,999 | (262 | ) | |||||||||||
Taxes on income
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(290 | ) | (290 | ) | (595 | ) | ||||||||||
Net income (loss)
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$ | (3,474 | ) | $ | 1,709 | $ | (857 | ) | ||||||||
Basic net earnings (loss) per share
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$ | (0.10 | ) | $ | 0.05 | $ | (0.02 | ) | ||||||||
Diluted net earnings (loss) per share
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$ | (0.10 | ) | $ | 0.05 | $ | (0.02 | ) | ||||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
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36,346,482 | 36,346,482 | 35,603,764 | |||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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36,346,482 | 37,253,865 | 35,603,764 | |||||||||||||
Total adjustments
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5,183 |
(a)
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Cost of revenues includes $0.3 million of amortization of intangible assets, $0.4 million of inventory step-up, $0.1 million of stock based compensation expenses, $0.2 million of integration plan related costs and $1.3 million of changes in pre-acquisition indirect tax positions in the three months ended March 31, 2012.
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(b)
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Research and development expenses include $40 thousand of integration plan related costs and $0.4 million of stock based compensation expenses in the three months ended March 31, 2012.
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(c)
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Selling and marketing expenses include $0.6 million of amortization of intangible assets, $0.4 million of integration plan related costs and $0.6 million of stock based compensation expenses in the three months ended March 31, 2012.
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(d)
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General and administrative expenses include $0.3 million of integration plan related costs and $0.6 million of stock based compensation expenses in the three months ended March 31, 2012.
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Three months ended
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March 31, 2012
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Reported GAAP net operating loss
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(2,278 | ) | ||
Stock based compensation expenses
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1,585 | |||
Amortization of intangible assets
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901 | |||
Inventory step-up
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404 | |||
Integration plan related costs
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955 | |||
Changes in pre-acquisition indirect tax positions
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1,338 | |||
Non-GAAP net operating profit
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2,905 |
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