|
CERAGON NETWORKS LTD.
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Date: May 2, 2022
|
By: /s/ Ran Vered
|
|
Name: Ran Vered
Title: Chief Financial Officer |
Exhibit
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Description
|
• |
Revenues of $70.3 million
|
• |
Operating loss of $(1.3) million on a GAAP basis, or $(0.6) million on a non-GAAP basis
|
• |
EPS of $(0.03) per diluted share on a GAAP basis, or $(0.02) per diluted share on a non-GAAP basis
|
• |
Strong bookings in North America, India, Europe and LATAM
|
• |
Book to bill for the trailing 12 months is above 1
|
• |
North America:
|
o |
Current outlook suggests another record year
|
o |
Acquired new 5G customers including DISH and private networks
|
• |
Europe:
|
o |
Record quarter surpassing the last two years in terms of bookings
|
o |
Leading Tier 1 operator tested Ceragon’s RAON software with a third-party DCSG; results show RAON works well with other open network elements
|
o |
Successful POC with a Tier1 global operator as part of their TIP activity
|
o |
Acquired a Tier 2 customer; supporting their nationwide 5G projects
|
• |
India:
|
o |
Continued strong demand for site upgrades and network expansions to prepare for 5G
|
o |
Leading Tier 1 operator placed orders for our all-outdoor 5G-ready multicore solution, with delivery scheduled for Q2 and Q3 2022
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• |
LATAM:
|
o |
Very strong start to the year with strong bookings
|
o |
Received POs for IP50 FX from leading Tier 1 operators in Paraguay and Argentina
|
Q1 2022
|
|
India
|
22%
|
Europe
|
17%
|
North America
|
19%
|
Latin America
|
20%
|
APAC
|
14%
|
Africa
|
8%
|
Three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Revenues
|
$
|
70,319
|
$
|
68,270
|
||||
Cost of revenues
|
50,982
|
48,124
|
||||||
Gross profit
|
19,337
|
20,146
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
6,765
|
7,410
|
||||||
Sales and marketing
|
8,772
|
8,290
|
||||||
General and administrative
|
5,058
|
4,093
|
||||||
Total operating expenses
|
$
|
20,595
|
$
|
19,793
|
||||
Operating income (loss)
|
(1,258
|
)
|
353
|
|||||
Financial expenses and others, net
|
759
|
1,051
|
||||||
Loss before taxes
|
(2,017
|
)
|
(698
|
)
|
||||
Taxes on income
|
271
|
475
|
||||||
Net loss
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$
|
(2,288
|
)
|
$
|
(1,173
|
)
|
||
Basic net loss per share
|
$
|
(0.03
|
)
|
$
|
(0.01
|
)
|
||
Diluted net loss per share
|
$
|
(0.03
|
)
|
$
|
(0.01
|
)
|
||
Weighted average number of shares used in computing basic net loss per share
|
83,959,261
|
82,583,760
|
||||||
Weighted average number of shares used in computing diluted net loss per share
|
83,959,261
|
82,583,760
|
March 31,
2022
|
December 31,
2021
|
|||||||
|
Unaudited
|
Audited
|
||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
24,960
|
$
|
17,079
|
||||
Trade receivables, net
|
112,820
|
107,826
|
||||||
Other accounts receivable and prepaid expenses
|
17,273
|
17,179
|
||||||
Inventories
|
58,060
|
61,398
|
||||||
Total current assets
|
213,113
|
203,482
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Trade receivables, net
|
7,862
|
10,484
|
||||||
Severance pay and pension fund
|
5,490
|
5,648
|
||||||
Property and equipment, net
|
29,334
|
29,383
|
||||||
Operating lease right-of-use assets
|
19,496
|
20,233
|
||||||
Intangible assets, net
|
6,550
|
6,274
|
||||||
Other non-current assets
|
18,342
|
17,059
|
||||||
Total non-current assets
|
87,074
|
89,081
|
||||||
Total assets
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$
|
300,187
|
$
|
292,563
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
67,908
|
$
|
69,436
|
||||
Deferred revenues
|
3,356
|
3,384
|
||||||
Short-term loans
|
26,950
|
14,800
|
||||||
Operating lease liabilities
|
4,156
|
4,359
|
||||||
Other accounts payable and accrued expenses
|
23,249
|
23,704
|
||||||
Total current liabilities
|
125,619
|
115,683
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay and pension
|
10,569
|
10,799
|
||||||
Deferred revenues
|
9,395
|
9,275
|
||||||
Other long-term payables
|
2,497
|
2,445
|
||||||
Operating lease liabilities
|
16,251
|
17,210
|
||||||
Total long-term liabilities
|
38,712
|
39,729
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital:
|
||||||||
Ordinary shares
|
224
|
224
|
||||||
Additional paid-in capital
|
429,071
|
428,244
|
||||||
Treasury shares at cost
|
(20,091
|
)
|
(20,091
|
)
|
||||
Other comprehensive loss
|
(9,341
|
)
|
(9,507
|
)
|
||||
Accumulated deficits
|
(264,007
|
)
|
(261,719
|
)
|
||||
Total shareholders' equity
|
135,856
|
137,151
|
||||||
Total liabilities and shareholders' equity
|
$
|
300,187
|
$
|
292,563
|
Three months ended
March 31,
|
||||||||
2022
|
2021
|
|||||||
Cash flow from operating activities:
|
||||||||
Net loss
|
$
|
(2,288
|
)
|
$
|
(1,173
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
2,941
|
2,886
|
||||||
Loss (gain) from sale of property and equipment, net
|
18
|
(128
|
)
|
|||||
Share-based compensation
|
746
|
351
|
||||||
Decrease in accrued severance pay and pensions, net
|
(73
|
)
|
(203
|
)
|
||||
Decrease (increase) in trade receivables, net
|
(1,564
|
)
|
413
|
|||||
Increase in other accounts receivable and prepaid expenses (including other long term assets)
|
(1,778
|
)
|
(1,092
|
)
|
||||
Decrease in operating lease right-of-use assets
|
981
|
1,269
|
||||||
Decrease in inventories, net of write off
|
3,551
|
1,718
|
||||||
Decrease in deferred tax asset, net
|
-
|
10
|
||||||
Decrease in trade payables
|
(1,764
|
)
|
(2,131
|
)
|
||||
Decrease in other accounts payable and accrued expenses (including other long term liabilities)
|
(1,273
|
)
|
(3,656
|
)
|
||||
Decrease in operating lease liability
|
(1,405
|
)
|
(1,455
|
)
|
||||
Increase in deferred revenues
|
92
|
1,537
|
||||||
Net cash used in operating activities
|
$
|
(1,816
|
)
|
$
|
(1,654
|
)
|
||
Cash flow from investing activities:
|
||||||||
Purchase of property and equipment
|
(2,523
|
)
|
(2,203
|
)
|
||||
Proceeds from sale of property and equipment
|
-
|
200
|
||||||
Purchase of intangible assets
|
(203
|
)
|
-
|
|||||
Net cash used in investing activities
|
$
|
(2,726
|
)
|
$
|
(2,003
|
)
|
||
Cash flow from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
81
|
3,689
|
||||||
Proceeds from bank credits and loans, net
|
12,150
|
6,000
|
||||||
Net cash provided by financing activities
|
$
|
12,231
|
$
|
9,689
|
||||
Translation adjustments on cash and cash equivalents
|
$
|
192
|
$
|
(122
|
)
|
|||
Increase in cash and cash equivalents
|
$
|
7,881
|
$
|
5,910
|
||||
Cash and cash equivalents at the beginning of the period
|
17,079
|
27,101
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
24,960
|
$
|
33,011
|
Three months ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
GAAP cost of revenues
|
$
|
50,982
|
$
|
48,124
|
||||
Stock based compensation
|
(132
|
)
|
(36
|
)
|
||||
Changes in indirect tax positions
|
-
|
(1
|
)
|
|||||
Non-GAAP cost of revenues
|
$
|
50,850
|
$
|
48,087
|
||||
GAAP gross profit
|
$
|
19,337
|
$
|
20,146
|
||||
Stock based compensation
|
132
|
36
|
||||||
Changes in indirect tax positions
|
-
|
1
|
||||||
Non-GAAP gross profit
|
$
|
19,469
|
$
|
20,183
|
||||
GAAP Research and development expenses
|
$
|
6,765
|
$
|
7,410
|
||||
Stock based compensation
|
14
|
(52
|
)
|
|||||
Non-GAAP Research and development expenses
|
$
|
6,779
|
$
|
7,358
|
||||
GAAP Sales and Marketing expenses
|
$
|
8,772
|
$
|
8,290
|
||||
Stock based compensation
|
(277
|
)
|
(104
|
)
|
||||
Non-GAAP Sales and Marketing expenses
|
$
|
8,495
|
$
|
8,186
|
||||
GAAP General and Administrative expenses
|
$
|
5,058
|
$
|
4,093
|
||||
Retired CEO compensation
|
96
|
-
|
||||||
Stock based compensation
|
(351
|
)
|
(159
|
)
|
||||
Non-GAAP General and Administrative expenses
|
$
|
4,803
|
$
|
3,934
|
||||
GAAP operating income (loss)
|
$
|
(1,258
|
)
|
$
|
353
|
|||
Stock based compensation
|
746
|
351
|
||||||
Changes in indirect tax positions
|
-
|
1
|
||||||
Retired CEO compensation
|
(96
|
)
|
-
|
|||||
Non-GAAP operating income (loss)
|
$
|
(608
|
)
|
$
|
705
|
|||
GAAP financial expenses and others, net
|
$
|
759
|
$
|
1,051
|
||||
Leases – financial income
|
425
|
186
|
||||||
Non-GAAP financial expenses and others, net
|
$
|
1,184
|
$
|
1,237
|
||||
GAAP Tax expenses
|
$
|
271
|
$
|
475
|
||||
Non cash tax adjustments
|
(210
|
)
|
(128
|
)
|
||||
Non-GAAP Tax expenses
|
$
|
61
|
$
|
347
|
Three months ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
GAAP net loss
|
$
|
(2,288
|
)
|
$
|
(1,173
|
)
|
||
Stock based compensation
|
746
|
351
|
||||||
Changes in indirect tax positions
|
-
|
1
|
||||||
Leases – financial income
|
(425
|
)
|
(186
|
)
|
||||
Retired CEO compensation
|
(96
|
)
|
-
|
|||||
Non-cash tax adjustments
|
210
|
128
|
||||||
Non-GAAP net loss
|
$
|
(1,853
|
)
|
$
|
(879
|
)
|
||
GAAP basic and diluted net loss per share
|
$
|
(0.03
|
)
|
$
|
(0.01
|
)
|
||
Non-GAAP diluted net loss per share
|
$
|
(0.02
|
)
|
$
|
(0.01
|
)
|
||
Weighted average number of shares used in computing GAAP basic and diluted net loss per share
|
83,959,261
|
82,583,760
|
||||||
Weighted average number of shares used in computing Non-GAAP diluted net loss per share
|
83,959,261
|
82,583,760
|