CERAGON NETWORKS LTD.
(Translation of registrant’s name into English)
|
3 Uri Ariav st., Rosh Ha’Ayin, Israel, 4810002
(Address of principal executive offices)
|
|
CERAGON NETWORKS LTD.
|
Date: May 1, 2023
|
By: /s/ Ronen Stein
|
|
Name: Ronen Stein
Title: Chief Financial Officer |
Exhibit
|
Description
|
• |
Revenues of $83.4 million
|
• |
Operating income of $4.7 million on a GAAP basis, or $5.9 million on a non-GAAP basis
|
• |
EPS of $0.02 per diluted share on a GAAP basis, or $0.04 per diluted share on a non-GAAP basis
|
• |
Book-to-bill above 1 on a quarterly and trailing 12-month basis
|
• |
Strong bookings in Q1, particularly in North America and India
|
• |
North America:
|
o |
Strongest region for Q1 revenue
|
o |
Q1 2023 bookings increased sequentially and year-over-year, reflecting less friction in the supply chain and strong demand
|
• |
India:
|
o |
Strongest region in terms of Q1 bookings, second-strongest region in terms of Q1 revenue
|
o |
Ongoing strong demand for ongoing 4G network and 5G network rollouts
|
Q1 2023
|
|
North America
|
32%
|
India
|
24%
|
Europe
|
14%
|
Latin America
|
12%
|
APAC
|
12%
|
Africa
|
6%
|
Outlook:
Management reaffirmed full year revenue guidance for $325 - $345 million, and expects full-year profitability.
2022 Annual Report on Form 20-F:
The Company also announced today the filing of its annual report on Form 20-F for the
fiscal year ended December 31, 2022, with the U.S. Securities and Exchange Commission (SEC). The annual report on Form 20-F, containing the final audited consolidated financial statements for the year ended December 31, 2022, as filed with
the Securities and Exchange Commission on May 1, 2023, is available on our website at www.ceragon.com and on the SEC’s website at www.sec.gov.
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Investor & Media Contact:
Maya Lustig
Ceragon Networks
Tel. +972-54-677-8100
mayal@ceragon.com
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Rob Fink or Bob Meyers
FNK IR
Tel. 1+646-809-4048
crnt@fnkir.com
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Three months ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
Revenues
|
$
|
83,409
|
$
|
70,319
|
||||
Cost of revenues
|
55,233
|
50,982
|
||||||
Gross profit
|
28,176
|
19,337
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
7,938
|
6,765
|
||||||
Sales and marketing
|
10,196
|
8,772
|
||||||
General and administrative
|
5,324
|
5,058
|
||||||
Total operating expenses
|
$
|
23,458
|
$
|
20,595
|
||||
Operating income (loss)
|
4,718
|
(1,258
|
)
|
|||||
Financial expenses and others, net
|
1,458
|
759
|
||||||
Income (loss) before taxes
|
3,260
|
(2,017
|
)
|
|||||
Taxes on income
|
1,292
|
271
|
||||||
Net income (loss)
|
$
|
1,968
|
$
|
(2,288
|
)
|
|||
Basic net income (loss) per share
|
$
|
0.02
|
$
|
(0.03
|
)
|
|||
Diluted net income (loss) per share
|
$
|
0.02
|
$
|
(0.03
|
)
|
|||
Weighted average number of shares used in computing basic net income (loss) per share
|
84,354,297
|
83,959,261
|
||||||
Weighted average number of shares used in computing diluted net income (loss) per share
|
84,992,254
|
83,959,261
|
March 31,
2023
|
December 31,
2022
|
|||||||
|
Unaudited
|
Audited
|
||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
26,423
|
$
|
22,948
|
||||
Trade receivables, net
|
100,590
|
100,034
|
||||||
Other accounts receivable and prepaid expenses
|
14,890
|
15,756
|
||||||
Inventories
|
68,742
|
72,009
|
||||||
Total current assets
|
210,645
|
210,747
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Severance pay and pension fund
|
4,607
|
4,633
|
||||||
Property and equipment, net
|
31,110
|
29,456
|
||||||
Operating lease right-of-use assets
|
17,133
|
17,962
|
||||||
Intangible assets, net
|
8,632
|
8,208
|
||||||
Other non-current assets
|
18,189
|
18,312
|
||||||
Total non-current assets
|
79,671
|
78,571
|
||||||
Total assets
|
$
|
290,316
|
$
|
289,318
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
60,601
|
$
|
67,384
|
||||
Deferred revenues
|
4,158
|
3,343
|
||||||
Short-term loans
|
41,850
|
37,500
|
||||||
Operating lease liabilities
|
3,436
|
3,745
|
||||||
Other accounts payable and accrued expenses
|
21,082
|
20,864
|
||||||
Total current liabilities
|
131,127
|
132,836
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay and pensions
|
9,232
|
9,314
|
||||||
Deferred revenues
|
12,170
|
11,545
|
||||||
Other long-term payables
|
2,668
|
2,653
|
||||||
Operating lease liabilities
|
12,311
|
13,187
|
||||||
Total long-term liabilities
|
36,381
|
36,699
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital:
|
||||||||
Ordinary shares
|
224
|
224
|
||||||
Additional paid-in capital
|
433,383
|
432,214
|
||||||
Treasury shares at cost
|
(20,091
|
)
|
(20,091
|
)
|
||||
Accumulated other comprehensive loss
|
(11,268
|
)
|
(11,156
|
)
|
||||
Accumulated deficits
|
(279,440
|
)
|
(281,408
|
)
|
||||
Total shareholders' equity
|
122,808
|
119,783
|
||||||
Total liabilities and
shareholders' equity
|
$
|
290,316
|
$
|
289,318
|
Three months ended
March 31,
|
||||||||
2023
|
2022
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income (loss)
|
$
|
1,968
|
$
|
(2,288
|
)
|
|||
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
2,553
|
2,941
|
||||||
Loss from sale of property and equipment, net
|
10
|
18
|
||||||
Share-based compensation expenses
|
1,169
|
746
|
||||||
Decrease in accrued severance pay and pensions, net
|
(64
|
)
|
(73
|
)
|
||||
Increase in trade receivables, net
|
(290
|
)
|
(1,564
|
)
|
||||
Decrease (Increase) in other accounts receivable and prepaid expenses (including other long term assets)
|
996
|
(1,778
|
)
|
|||||
Decrease in operating lease right-of-use assets
|
1,011
|
981
|
||||||
Decrease in inventories
|
3,166
|
3,551
|
||||||
Decrease in trade payables
|
(6,790
|
)
|
(1,764
|
)
|
||||
Decrease in other accounts payable and accrued expenses (including other long term liabilities)
|
(294
|
)
|
(1,273
|
)
|
||||
Decrease in operating lease liability
|
(1,366
|
)
|
(1,405
|
)
|
||||
Increase in deferred revenues
|
1,440
|
92
|
||||||
Net cash provided by (used in) operating activities
|
$
|
3,509
|
$
|
(1,816
|
)
|
|||
Cash flow from investing activities:
|
||||||||
Purchase of property and equipment
|
(3,142
|
)
|
(2,523
|
)
|
||||
Purchase of intangible assets
|
(1,288
|
)
|
(203
|
)
|
||||
Net cash used in investing activities
|
$
|
(4,430
|
)
|
$
|
(2,726
|
)
|
||
Cash flow from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
-
|
81
|
||||||
Proceeds from bank credits and loans, net
|
4,350
|
12,150
|
||||||
Net cash provided by financing activities
|
$
|
4,350
|
$
|
12,231
|
||||
Translation adjustments on cash and cash equivalents
|
$
|
46
|
$
|
192
|
||||
Increase in cash and cash equivalents
|
$
|
3,475
|
$
|
7,881
|
||||
Cash and cash equivalents at the beginning of the period
|
22,948
|
17,079
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
26,423
|
$
|
24,960
|
Three months ended
|
||||||||
March 31,
|
||||||||
2023
|
2022
|
|||||||
GAAP cost of revenues
|
$
|
55,233
|
$
|
50,982
|
||||
Stock based compensation expenses
|
(179
|
)
|
(132
|
)
|
||||
Changes in indirect tax positions
|
(1
|
)
|
-
|
|||||
Non-GAAP cost of revenues
|
$
|
55,053
|
$
|
50,850
|
||||
GAAP gross profit
|
$
|
28,176
|
$
|
19,337
|
||||
Gross profit adjustments
|
180
|
132
|
||||||
Non-GAAP gross profit
|
$
|
28,356
|
$
|
$19,469
|
||||
GAAP Research and development expenses
|
$
|
7,938
|
$
|
6,765
|
||||
Stock based compensation expenses
|
(246
|
)
|
14
|
|||||
Non-GAAP Research and development expenses
|
$
|
7,692
|
$
|
6,779
|
||||
GAAP Sales and Marketing expenses
|
$
|
10,196
|
$
|
8,772
|
||||
Stock based compensation expenses
|
(376
|
)
|
(277
|
)
|
||||
Non-GAAP Sales and Marketing expenses
|
$
|
9,820
|
$
|
8,495
|
||||
GAAP General and Administrative expenses
|
$
|
5,324
|
$
|
5,058
|
||||
Retired CEO compensation
|
-
|
96
|
||||||
Stock based compensation expenses
|
(368
|
)
|
(351
|
)
|
||||
Non-GAAP General and Administrative expenses
|
$
|
4,956
|
$
|
4,803
|
||||
GAAP operating income (loss)
|
$
|
4,718
|
$
|
(1,258
|
)
|
|||
Stock based compensation expenses
|
1,169
|
746
|
||||||
Changes in indirect tax positions
|
1
|
-
|
||||||
Retired CEO compensation
|
-
|
(96
|
)
|
|||||
Non-GAAP operating income (loss)
|
$
|
5,888
|
$
|
(608
|
)
|
|||
GAAP financial expenses and others, net
|
$
|
1,458
|
$
|
759
|
||||
Leases – financial income
|
358
|
425
|
||||||
Non-GAAP financial expenses and
others, net
|
$
|
1,816
|
$
|
1,184
|
||||
GAAP Tax expenses
|
$
|
1,292
|
$
|
271
|
||||
Non cash tax adjustments
|
(853
|
)
|
(210
|
)
|
||||
Non-GAAP Tax expenses
|
$
|
439
|
$
|
61
|
Three months ended
|
||||||||
March 31,
|
||||||||
2023
|
2022
|
|||||||
GAAP net income (loss)
|
$
|
1,968
|
$
|
(2,288
|
)
|
|||
Stock based compensation expenses
|
1,169
|
746
|
||||||
Changes in indirect tax positions
|
1
|
-
|
||||||
Leases – financial income
|
(358
|
)
|
(425
|
)
|
||||
Retired CEO compensation
|
-
|
(96
|
)
|
|||||
Non-cash tax adjustments
|
853
|
210
|
||||||
Non-GAAP net income (loss)
|
$
|
3,633
|
$
|
(1,853
|
)
|
|||
GAAP basic net income (loss) per share
|
$
|
0.02
|
$
|
(0.03
|
)
|
|||
GAAP diluted net income (loss) per share
|
$
|
0.02
|
$
|
(0.03
|
)
|
|||
Non-GAAP diluted net income (loss) per share
|
$
|
0.04
|
$
|
(0.02
|
)
|
|||
Weighted average number of shares used in Computing GAAP basic and diluted net income (loss) per share
|
84,354,297
|
83,959,261
|
||||||
Weighted average number of shares used in computing GAAP diluted net income (loss) per share
|
84,992,254
|
83,959,261
|
||||||
Weighted average number of shares used in computing Non-GAAP diluted net income (loss) per share
|
86,712,061
|
83,959,261
|