CERAGON NETWORKS LTD.
(Translation of registrant’s name into English)
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24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of principal executive offices)
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Form 20-F x Form 40-F o |
Yes o No x |
CERAGON NETWORKS LTD.
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Date: August 13, 2015
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By:
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/s/ Doron Arazi | |
Name: Doron Arazi | |||
Title: Executive Vice President and Chief Financial Officer |
Exhibit Description
Exhibit A – CERAGON NETWORKS REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
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·
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Europe:
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12%
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·
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Africa:
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8%
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·
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North America:
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18%
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·
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Latin America:
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22%
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·
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India:
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30%
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APAC:
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10%
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Doron Arazi or | Claudia Gatlin | ||
+972 3 5431 660 | +1 212 830-9080 | ||
dorona@ceragon.com | claudiag@ceragon.com |
Ceragon Reports Second Quarter 2015 Results |
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Revenues
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$ | 94,772 | $ | 90,420 | $ | 188,425 | $ | 160,935 | ||||||||
Cost of revenues
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68,078 | 66,607 | 137,491 | 121,543 | ||||||||||||
Gross profit
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26,694 | 23,813 | 50,934 | 39,392 | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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5,770 | 8,454 | 12,169 | 18,893 | ||||||||||||
Selling and marketing
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9,481 | 14,655 | 20,789 | 30,075 | ||||||||||||
General and administrative
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5,525 | 5,720 | 10,261 | 11,626 | ||||||||||||
Restructuring costs | - | - | 1,225 | 936 | ||||||||||||
Other income
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- | 16,800 | - | 16,800 | ||||||||||||
Total operating expenses
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$ | 20,776 | $ | 12,029 | $ | 44,444 | $ | 44,730 | ||||||||
Operating income (loss)
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5,918 | 11,784 | 6,490 | (5,338 | ) | |||||||||||
Financial expenses, net
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3,161 | 2,175 | 9,507 | 10,339 | ||||||||||||
Income (loss) before taxes
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2,757 | 9,609 | (3,017 | ) | (15,677 | ) | ||||||||||
Taxes on income
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1,426 | 1,611 | 2,647 | 3,288 | ||||||||||||
Net income (loss)
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$ | 1,331 | $ | 7,998 | $ | (5,664 | ) | $ | (18,965 | ) | ||||||
Basic net income (loss) per share
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$ | 0.02 | $ | 0.15 | $ | (0.07 | ) | $ | (0.36 | ) | ||||||
Diluted net income (loss) per share
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$ | 0.02 | $ | 0.15 | $ | (0.07 | ) | $ | (0.36 | ) | ||||||
Weighted average number of shares used in computing basic net income (loss) per share
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77,170,030 | 52,457,168 | 77,158,982 | 52,457,168 | ||||||||||||
Weighted average number of shares used in computing diluted net income (loss) per share
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77,243,249 | 52,861,134 | 77,158,982 | 52,457,168 |
Ceragon Reports Second Quarter 2015 Results |
June 30,
2015
|
December 31,
2014
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|||||||
ASSETS
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Unaudited
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Audited
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||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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$ | 39,535 | $ | 41,423 | ||||
Short-term bank deposits
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353 | 413 | ||||||
Marketable securities
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- | 535 | ||||||
Trade receivables, net
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138,110 | 162,626 | ||||||
Deferred taxes, net
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25,186 | 22,898 | ||||||
Other accounts receivable and prepaid expenses
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2,085 | 3,522 | ||||||
Inventories
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51,337 | 61,830 | ||||||
Total current assets
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256,606 | 293,247 | ||||||
NON-CURRENT ASSETS:
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||||||||
Deferred tax assets, net
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103 | 239 | ||||||
Severance pay and pension fund
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5,327 | 5,669 | ||||||
Property and equipment, net
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30,646 | 33,138 | ||||||
Intangible assets, net
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4,300 | 5,070 | ||||||
Other non-current assets
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3,681 | 4,510 | ||||||
Total non-current assets
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44,057 | 48,626 | ||||||
Total assets
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$ | 300,663 | $ | 341,873 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Short term loan, including current maturities of long term loan
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$ | 50,988 | $ | 48,832 | ||||
Trade payables
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81,491 | 101,752 | ||||||
Deferred revenues
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13,239 | 17,667 | ||||||
Other accounts payable and accrued expenses
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31,291 | 37,248 | ||||||
Total current liabilities
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177,009 | 205,499 | ||||||
LONG-TERM LIABILITIES:
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||||||||
Long term loan, net of current maturities
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- | 2,072 | ||||||
Accrued severance pay and pension
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10,589 | 11,452 | ||||||
Other long term payables
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16,261 | 18,298 | ||||||
Total long-term liabilities
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26,850 | 31,822 | ||||||
SHAREHOLDERS' EQUITY:
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||||||||
Share capital:
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||||||||
Ordinary shares
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212 | 212 | ||||||
Additional paid-in capital
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406,986 | 406,413 | ||||||
Treasury shares at cost
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(20,091 | ) | (20,091 | ) | ||||
Other comprehensive loss
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(6,768 | ) | (4,111 | ) | ||||
Accumulated deficits
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(283,535 | ) | (277,871 | ) | ||||
Total shareholders' equity
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96,804 | 104,552 | ||||||
Total liabilities and shareholders' equity
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$ | 300,663 | $ | 341,873 |
Ceragon Reports Second Quarter 2015 Results |
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2015
|
2014
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2015
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2014
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|||||||||||||
Cash flow from operating activities:
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||||||||||||||||
Net income (loss)
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$ | 1,331 | $ | 7,998 | $ | (5,664 | ) | $ | (18,965 | ) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||||||||||
Depreciation and amortization
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2,719 | 3,530 | 6,222 | 6,908 | ||||||||||||
Stock-based compensation expense
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378 | 1,076 | 572 | 2,123 | ||||||||||||
Decrease (increase) in trade and other receivables, net
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4,487 | (15,800 | ) | 19,356 | (13,906 | ) | ||||||||||
Decrease in inventory, net of write off
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4,539 | 1,420 | 9,648 | 3,029 | ||||||||||||
Decrease in deferred tax asset, net
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723 | 1,327 | 1,453 | 2,644 | ||||||||||||
Increase (decrease) in trade payables and accrued liabilities
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(11,612 | ) | 6,139 | (25,331 | ) | (8,919 | ) | |||||||||
Increase (decrease) in deferred revenues
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1,049 | 3,946 | (4,428 | ) | 1,047 | |||||||||||
Other adjustments
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(83 | ) | (570 | ) | (189 | ) | 271 | |||||||||
Net cash provided by (used in) operating activities
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$ | 3,531 | $ | 9,066 | $ | 1,639 | $ | (25,768 | ) | |||||||
Cash flow from investing activities:
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||||||||||||||||
Purchase of property and equipment
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(1,431 | ) | (3,328 | ) | (3,473 | ) | (6,178 | ) | ||||||||
Investment in short-term bank deposits
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(4 | ) | - | (4 | ) | - | ||||||||||
Proceeds from short-term bank deposits
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- | 8 | 64 | 58 | ||||||||||||
Proceeds from sale and maturities of marketable securities, net
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- | - | 122 | 5,161 | ||||||||||||
Net cash used in investing activities
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$ | (1,435 | ) | $ | (3,320 | ) | $ | (3,291 | ) | $ | (959 | ) | ||||
Cash flow from financing activities:
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||||||||||||||||
Proceeds from bank loans
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2,150 | 2,080 | 4,200 | 20,190 | ||||||||||||
Repayment of bank loans
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(2,058 | ) | (2,058 | ) | (4,116 | ) | (4,116 | ) | ||||||||
Net cash provided by financing activities
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$ | 92 | $ | 22 | $ | 84 | $ | 16,074 | ||||||||
Translation adjustments on cash and cash equivalents
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$ | 77 | $ | 52 | $ | (320 | ) | $ | 121 | |||||||
Increase (decrease) in cash and cash equivalents
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$ | 2,265 | $ | 5,820 | $ | (1,888 | ) | $ | (10,532 | ) | ||||||
Cash and cash equivalents at the beginning of the period
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37,270 | 26,055 | 41,423 | 42,407 | ||||||||||||
Cash and cash equivalents at the end of the period
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$ | 39,535 | $ | 31,875 | $ | 39,535 | $ | 31,875 |
Ceragon Reports Second Quarter 2015 Results |
Three months ended June 30,
|
|||||||||||||
2015
|
2014
|
||||||||||||
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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$ | 94,772 | $ | 94,772 | $ | 90,420 | |||||||
Cost of revenues
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68,078 |
(a) 403
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67,675 | 66,045 | |||||||||
Gross profit
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26,694 | 27,097 | 24,375 | ||||||||||
Operating expenses:
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|||||||||||||
Research and development
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5,770 |
(b) 245
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5,525 | 7,689 | |||||||||
Selling and marketing
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9,481 |
(c) 150
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9,331 | 13,989 | |||||||||
General and administrative
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5,525 |
(d) 24
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5,501 | 5,283 | |||||||||
Total operating expenses
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20,776 | $ | 20,357 | $ | 26,961 | ||||||||
Operating income (loss)
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5,918 | 6,740 | (2,586 | ) | |||||||||
Financial expenses, net
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3,161 | 3,161 | 2,175 | ||||||||||
Income (loss) before taxes
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2,757 | 3,579 | (4,761 | ) | |||||||||
Taxes on income
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1,426 |
(e) 856
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570 | 260 | |||||||||
Net income (loss)
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$ | 1,331 | $ | 3,009 | $ | (5,021 | ) | ||||||
Basic net earnings (loss) per share
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$ | 0.02 | $ | 0.04 | $ | (0.10 | ) | ||||||
Diluted net earnings (loss) per share
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$ | 0.02 | $ | 0.04 | $ | (0.10 | ) | ||||||
Weighted average number of shares used in computing basic net
earnings (loss) per share
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77,170,030 | 77,170,030 | 52,457,168 | ||||||||||
Weighted average number of shares used in computing diluted net
earnings (loss) per share
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77,243,249 | 77,811,594 | 52,457,168 | ||||||||||
Total adjustments
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1,678
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(a)
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Cost of revenues includes $0.3 million of amortization of intangible assets, $0.1 million of changes in pre-acquisition indirect tax positions and $20 thousand of stock based compensation income in the three months ended June 30, 2015.
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(b)
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Research and development expenses include $0.2 million of stock-based compensation expenses in the three months ended June 30, 2015.
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(c)
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Selling and marketing expenses include $20 thousand of amortization of intangible assets and $0.1 million of stock based compensation expenses in the three months ended June 30, 2015.
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(d)
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General and administrative expenses include stock based compensation expenses in the three months ended June 30, 2015.
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(e)
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Taxes on income include non-cash tax adjustments in the three months ended June 30, 2015.
|
Ceragon Reports Second Quarter 2015 Results |
Six months ended June 30,
|
||||||||||||||||
2015
|
2014
|
|||||||||||||||
GAAP (as reported)
|
Adjustments
|
Non-GAAP
|
Non-GAAP
|
|||||||||||||
Revenues
|
$ | 188,425 | $ | 188,425 | $ | 160,935 | ||||||||||
Cost of revenues
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137,491 |
(a) 767
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136,724 | 120,115 | ||||||||||||
Gross profit
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50,934 | 51,701 | 40,820 | |||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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12,169 |
(b) 341
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11,828 | 15,542 | ||||||||||||
Selling and marketing
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20,789 |
(c) 422
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20,367 | 28,394 | ||||||||||||
General and administrative
|
10,261 |
(d) 8
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10,253 | 10,305 | ||||||||||||
Restructuring costs
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1,225 | 1,225 | - | - | ||||||||||||
Total operating expenses
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$ | 44,444 | $ | 42,448 | $ | 54,241 | ||||||||||
Operating income (loss)
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6,490 | 9,253 | (13,421 | ) | ||||||||||||
Financial expenses, net
|
9,507 |
(e) 2,973
|
6,534 | 4,029 | ||||||||||||
Income (loss) before taxes
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(3,017 | ) | 2,719 | (17,450 | ) | |||||||||||
Taxes on income
|
2,647 |
(f) 1,590
|
1,057 | 447 | ||||||||||||
Net income (loss)
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$ | (5,664 | ) | $ | 1,662 | $ | (17,897 | ) | ||||||||
Basic net income (loss) per share
|
$ | (0.07 | ) | $ | 0.02 | $ | (0.34 | ) | ||||||||
Diluted net income (loss) per share
|
$ | (0.07 | ) | $ | 0.02 | $ | (0.34 | ) | ||||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
|
77,158,982 | 77,158,982 | 52,457,168 | |||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
|
77,158,982 | 77,796,494 | 52,457,168 | |||||||||||||
Total adjustments
|
7,326 |
(a)
|
Cost of revenues includes $0.6 million of amortization of intangible assets, $0.1 million of changes in pre-acquisition indirect tax positions and $10 thousand of stock based compensation expenses in the six months ended June 30, 2015.
|
(b)
|
Research and development expenses include $0.3 million of stock-based compensation expenses in the six months ended June 30, 2015.
|
(c)
|
Selling and marketing expenses include $0.2 million of amortization of intangible assets and $0.2 million of stock based compensation expenses in the six months ended June 30, 2015.
|
(d)
|
General and administrative expenses include stock based compensation expenses in the six months ended June 30, 2015.
|
(e)
|
Financial expenses include the effect of re-measurement of certain assets denominated in or linked to the U.S. dollar in Venezuela, due to restrictive government policies on payments in foreign currency in the six months ended June 30, 2015.
|
(f)
|
Taxes on income include non-cash tax adjustments in the six months ended June 30, 2015.
|
Ceragon Reports Second Quarter 2015 Results |
Three months
ended
|
Six months
ended
|
|||||||
June 30, 2015
|
||||||||
Reported GAAP net income (loss)
|
1,331 | (5,664 | ) | |||||
Stock based compensation expenses
|
378 | 572 | ||||||
Amortization of intangible assets
|
326 | 818 | ||||||
Restructuring expenses
|
- | 1,225 | ||||||
Changes in pre-acquisition indirect tax positions
|
118 | 148 | ||||||
Currency devaluation in Venezuela
|
- | 2,973 | ||||||
Non-cash tax adjustments
|
856 | 1,590 | ||||||
Non-GAAP net income
|
3,009 | 1,662 |
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