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: November 6, 2023
|
By: /s/ Ronen Stein
|
|
Name: Ronen Stein
Title: Chief Financial Officer |
Exhibit
|
Description
|
• |
Revenues of $87.3 million, up 10.9% year-over-year
|
• |
Operating income of $6.7 million on a GAAP basis, or $8.0 million on a non-GAAP basis
|
• |
EPS of $0.04 per diluted share on a GAAP basis, or $0.06 per diluted share on a non-GAAP basis
|
• |
Announced the definitive agreement to acquire Siklu to expand presence in North America, increasing market share in mmW and augmenting Ceragon’s offering with Fixed Wireless Access
|
• |
North America:
|
• |
India:
|
Q3 2023
|
|
India
|
34%
|
North America
|
26%
|
Latin America
|
15%
|
Europe
|
11%
|
APAC
|
10%
|
Africa
|
4%
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Revenues
|
$
|
87,260
|
$
|
78,649
|
$
|
256,820
|
$
|
219,642
|
||||||||
Cost of revenues
|
56,986
|
50,861
|
168,014
|
151,111
|
||||||||||||
Gross profit
|
30,274
|
27,788
|
88,806
|
68,531
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
7,454
|
7,318
|
23,204
|
21,610
|
||||||||||||
Sales and Marketing
|
10,059
|
8,663
|
30,033
|
26,797
|
||||||||||||
General and administrative
|
5,806
|
6,571
|
17,348
|
16,469
|
||||||||||||
Restructuring and related charges
|
-
|
-
|
897
|
-
|
||||||||||||
Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
Other operating expenses (*)
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
Total operating expenses
|
$
|
23,602
|
$
|
26,523
|
$
|
71,765
|
$
|
68,847
|
||||||||
Operating income (loss)
|
6,672
|
1,265
|
17,041
|
(316
|
)
|
|||||||||||
Financial expenses and others, net
|
1,722
|
1,778
|
5,066
|
3,294
|
||||||||||||
Income (loss) before taxes
|
4,950
|
(513
|
)
|
11,975
|
(3,610
|
)
|
||||||||||
Taxes on income
|
1,583
|
350
|
4,552
|
1,061
|
||||||||||||
Net income (loss)
|
$
|
3,367
|
$
|
(863
|
)
|
$
|
7,423
|
$
|
(4,671
|
)
|
||||||
Basic net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
Diluted net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
Weighted average number of shares used in computing basic net income (loss) per share
|
84,688,985
|
84,200,177
|
84,470,709
|
84,060,674
|
||||||||||||
Weighted average number of shares used in computing diluted net income (loss) per share
|
85,488,113
|
84,200,177
|
85,265,666
|
84,060,674
|
September 30,
2023
|
December 31,
2022
|
|||||||
|
Unaudited
|
Audited
|
||||||
ASSETS | ||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
33,966
|
$
|
22,948
|
||||
Trade receivables, net
|
104,593
|
100,034
|
||||||
Other accounts receivable and prepaid expenses
|
15,047
|
15,756
|
||||||
Inventories
|
70,050
|
72,009
|
||||||
Total current assets
|
223,656
|
210,747
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Severance pay and pension fund
|
4,652
|
4,633
|
||||||
Property and equipment, net
|
30,145
|
29,456
|
||||||
Operating lease right-of-use assets
|
16,214
|
17,962
|
||||||
Intangible assets, net
|
9,337
|
8,208
|
||||||
Other non-current assets
|
17,130
|
18,312
|
||||||
Total non-current assets
|
77,478
|
78,571
|
||||||
Total assets
|
$
|
301,134
|
$
|
289,318
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
65,865
|
$
|
67,384
|
||||
Deferred revenues
|
2,986
|
3,343
|
||||||
Short-term loans
|
38,200
|
37,500
|
||||||
Operating lease liabilities
|
3,052
|
3,745
|
||||||
Other accounts payable and accrued expenses
|
25,148
|
20,864
|
||||||
Total current liabilities
|
135,251
|
132,836
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay and pension
|
8,983
|
9,314
|
||||||
Deferred revenues
|
12,170
|
11,545
|
||||||
Other long-term payables
|
3,059
|
2,653
|
||||||
Operating lease liabilities
|
11,157
|
13,187
|
||||||
Total long-term liabilities
|
35,369
|
36,699
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital:
|
||||||||
Ordinary shares
|
224
|
224
|
||||||
Additional paid-in capital
|
435,269
|
432,214
|
||||||
Treasury shares at cost
|
(20,091
|
)
|
(20,091
|
)
|
||||
Other comprehensive loss
|
(10,903
|
)
|
(11,156
|
)
|
||||
Accumulated deficits
|
(273,985
|
)
|
(281,408
|
)
|
||||
Total shareholders' equity
|
130,514
|
119,783
|
||||||
Total liabilities and shareholders' equity
|
$
|
301,134
|
$
|
289,318
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income (loss)
|
$
|
3,367
|
$
|
(863
|
)
|
$
|
7,423
|
$
|
(4,671
|
)
|
||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
2,366
|
2,643
|
7,501
|
8,418
|
||||||||||||
Loss from sale of property and equipment, net
|
31
|
-
|
61
|
20
|
||||||||||||
Stock-based compensation expense
|
1,048
|
1,167
|
3,025
|
2,602
|
||||||||||||
Decrease in accrued severance pay and pensions, net
|
(11
|
)
|
(321
|
)
|
(355
|
)
|
(690
|
)
|
||||||||
Decrease (increase) in trade receivables, net
|
2,684
|
6,659
|
(4,226
|
)
|
2,486
|
|||||||||||
Decrease (increase) in other accounts receivable and prepaid expenses (including other long term assets)
|
1,360
|
1,297
|
1,911
|
(1,759
|
)
|
|||||||||||
Decrease in operating lease right-of-use assets
|
1,090
|
853
|
2,987
|
2,726
|
||||||||||||
Decrease (increase) in inventory, net of write off
|
(2,437
|
)
|
(3,759
|
)
|
1,622
|
(3,310
|
)
|
|||||||||
Increase (decrease) in trade payables
|
3,229
|
1,834
|
(726
|
)
|
3,173
|
|||||||||||
Increase (decrease) in other accounts payable and accrued expenses (including other long term liabilities)
|
2,071
|
(258
|
)
|
4,397
|
(1,964
|
)
|
||||||||||
Decrease in operating lease liability
|
(1,443
|
)
|
(1,087
|
)
|
(3,961
|
)
|
(5,158
|
)
|
||||||||
Increase (decrease) in deferred revenues
|
(118
|
)
|
432
|
268
|
1,735
|
|||||||||||
Net cash provided by operating activities
|
$
|
13,237
|
$
|
8,597
|
$
|
19,927
|
$
|
3,608
|
||||||||
Cash flow from investing activities:
|
||||||||||||||||
Purchase of property and equipment, net
|
(1,935
|
)
|
(3,664
|
)
|
(7,407
|
)
|
(9,032
|
)
|
||||||||
Purchase of intangible assets
|
(446
|
)
|
(823
|
)
|
(2,283
|
)
|
(1,260
|
)
|
||||||||
Net cash used in investing activities
|
$
|
(2,381
|
)
|
$
|
(4,487
|
)
|
$
|
(9,690
|
)
|
$
|
(10,292
|
)
|
||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from exercise of options
|
-
|
297
|
30
|
410
|
||||||||||||
Proceeds from (repayment of) bank credits and loans, net
|
(1,350
|
)
|
(2,000
|
)
|
700
|
15,100
|
||||||||||
Net cash provided by (used in) financing activities
|
$
|
(1,350
|
)
|
$
|
(1,703
|
)
|
$
|
730
|
$
|
15,510
|
||||||
Translation adjustments on cash and cash equivalents
|
$
|
(69
|
)
|
$
|
(35
|
)
|
$
|
51
|
$
|
59
|
||||||
Increase in cash and cash equivalents
|
$
|
9,437
|
$
|
2,372
|
$
|
11,018
|
$
|
8,885
|
||||||||
Cash and cash equivalents at the beginning of the period
|
24,529
|
23,592
|
22,948
|
17,079
|
||||||||||||
Cash and cash equivalents at the end of the period
|
$
|
33,966
|
$
|
25,964
|
$
|
33,966
|
$
|
25,964
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
GAAP cost of revenues
|
$
|
56,986
|
$
|
50,861
|
$
|
168,014
|
$
|
151,111
|
||||||||
Stock-based compensation expenses
|
(142
|
)
|
(161
|
)
|
(367
|
)
|
(418
|
)
|
||||||||
Changes in indirect tax positions
|
-
|
(1
|
)
|
(3
|
)
|
(2
|
)
|
|||||||||
Non-GAAP cost of revenues
|
$
|
56,844
|
$
|
50,699
|
$
|
167,644
|
$
|
150,691
|
||||||||
GAAP gross profit
|
$
|
30,274
|
$
|
27,788
|
$
|
88,806
|
$
|
68,531
|
||||||||
Stock-based compensation expenses
|
142
|
161
|
367
|
418
|
||||||||||||
Changes in indirect tax positions
|
-
|
1
|
3
|
2
|
||||||||||||
Non-GAAP gross profit
|
$
|
30,416
|
$
|
27,950
|
$
|
89,176
|
$
|
68,951
|
||||||||
GAAP Research and development expenses
|
$
|
7,454
|
$
|
7,318
|
$
|
23,204
|
$
|
21,610
|
||||||||
Stock-based compensation expenses
|
(194
|
)
|
(168
|
)
|
(672
|
)
|
(188
|
)
|
||||||||
Non-GAAP Research and development expenses
|
$
|
7,260
|
$
|
7,150
|
$
|
22,532
|
$
|
21,422
|
||||||||
GAAP Sales and Marketing expenses
|
$
|
10,059
|
$
|
8,663
|
$
|
30,033
|
$
|
26,797
|
||||||||
Stock-based compensation expenses
|
(357
|
)
|
(383
|
)
|
(1,096
|
)
|
(962
|
)
|
||||||||
Non-GAAP Sales and Marketing expenses
|
$
|
9,702
|
$
|
8,280
|
$
|
28,937
|
$
|
25,835
|
||||||||
GAAP General and Administrative expenses
|
$
|
5,806
|
$
|
6,571
|
$
|
17,348
|
$
|
16,469
|
||||||||
Retired CEO compensation
|
-
|
-
|
-
|
96
|
||||||||||||
Stock-based compensation expenses
|
(355
|
)
|
(455
|
)
|
(890
|
)
|
(1,034
|
)
|
||||||||
Non-GAAP General and Administrative expenses
|
$
|
5,451
|
$
|
6,116
|
$
|
16,458
|
$
|
15,531
|
||||||||
GAAP Restructuring and related charges
|
-
|
-
|
897
|
-
|
||||||||||||
Restructuring and related charges
|
-
|
-
|
(897
|
)
|
-
|
|||||||||||
Non-GAAP Other operating expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
GAAP Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
Acquisition- and integration-related
|
(283
|
)
|
-
|
(283
|
)
|
-
|
||||||||||
Non-GAAP Other operating expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
GAAP Other operating expenses
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
Hostile attempt related costs
|
-
|
(3,971
|
)
|
-
|
(3,971
|
)
|
||||||||||
Non-GAAP Other operating expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
GAAP operating income (loss)
|
$
|
6,672
|
$
|
1,265
|
$
|
17,041
|
$
|
(316
|
)
|
|||||||
Stock-based compensation expenses
|
1,048
|
1,167
|
3,025
|
2,602
|
||||||||||||
Changes in indirect tax positions
|
-
|
1
|
3
|
2
|
||||||||||||
Retired CEO compensation
|
-
|
-
|
-
|
(96
|
)
|
|||||||||||
Hostile attempt related costs
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
Restructuring and related charges
|
-
|
-
|
897
|
-
|
||||||||||||
Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
Non-GAAP operating income
|
$
|
8,003
|
$
|
6,404
|
$
|
21,249
|
$
|
6,163
|
||||||||
GAAP financial expenses and others, net
|
$
|
1,722
|
$
|
1,778
|
$
|
5,066
|
$
|
3,294
|
||||||||
Leases – financial income
|
364
|
233
|
1,007
|
2,432
|
||||||||||||
Non-GAAP financial expenses & others, net
|
$
|
2,086
|
$
|
2,011
|
$
|
6,073
|
$
|
5,726
|
||||||||
GAAP Tax expenses
|
$
|
1,583
|
$
|
350
|
$
|
4,552
|
$
|
1,061
|
||||||||
Non-cash tax adjustments
|
(630
|
)
|
(81
|
)
|
(2,373
|
)
|
(427
|
)
|
||||||||
Non-GAAP Tax expenses
|
$
|
953
|
$
|
269
|
$
|
2,179
|
$
|
634
|
Three months ended
September 30, |
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
GAAP net income (loss)
|
$
|
3,367
|
$
|
(863
|
)
|
$
|
7,423
|
$
|
(4,671
|
)
|
||||||
Stock-based compensation expenses
|
1,048
|
1,167
|
3,025
|
2,602
|
||||||||||||
Changes in indirect tax positions
|
-
|
1
|
3
|
2
|
||||||||||||
Leases – financial income
|
(364
|
)
|
(233
|
)
|
(1,007
|
)
|
(2,432
|
)
|
||||||||
Retired CEO compensation
|
-
|
-
|
-
|
(96
|
)
|
|||||||||||
Hostile attempt related costs
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
Restructuring and other charges
|
-
|
-
|
897
|
-
|
||||||||||||
Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
Non-cash tax adjustments
|
630
|
81
|
2,373
|
427
|
||||||||||||
Non-GAAP net income (loss)
|
$
|
4,964
|
$
|
4,124
|
$
|
12,997
|
$
|
(197
|
) |
|||||||
GAAP basic net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
GAAP diluted net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
Non-GAAP basic and diluted net income (loss) per share
|
$
|
0.06
|
$
|
0.05
|
$
|
0.15
|
$
|
(0.00
|
)
|
|||||||
Weighted average number of shares used in computing GAAP
basic net income (loss) per share |
84,688,985
|
84,200,177
|
84,470,709
|
84,060,674
|
||||||||||||
Weighted average number of shares used in computing GAAP diluted net income (loss) per share
|
85,488,113
|
84,200,177
|
85,265,666
|
84,060,674
|
||||||||||||
Weighted average number of shares used in computing Non-GAAP diluted net income (loss) per share
|
87,228,483
|
85,970,107
|
86,897,235
|
84,060,674
|