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: August 6, 2024
|
By: /s/ Ronen Stein
|
|
Name: Ronen Stein
Title: Chief Financial Officer |
Exhibit
|
Description
|
• |
Revenues of $96.1 million
|
• |
Operating income of $10.4 million on a GAAP basis, or $13.1 million on a non-GAAP basis
|
• |
Net Income of $7.8 million on a GAAP basis, and net income of $9.9 million on a non-GAAP basis
|
• |
EPS of $0.09 per diluted share on a GAAP basis, or $0.11 per diluted share on a non-GAAP basis
|
• |
India:
|
- |
Record quarterly revenues since Q2 2018, including revenue from the new, top-tier customer
|
- |
Substantial ramp up in demand for new IP-50CX product, with more than 20,000 radio units delivered
|
• |
North America:
|
- |
Bookings remain strong, supported by Private Network wins
|
- |
Significant Private Network orders, including nine new customers
|
- |
Six consecutive quarters of revenue above $20 million
|
Q2 2024
|
|
India
|
37%
|
North America
|
24%
|
EMEA
|
20%
|
Latin America
|
10%
|
APAC
|
9%
|
• |
Revenue of $385 million to $405 million, representing growth of 11% to 17% compared to 2023 revenue. This guidance includes the contribution from Siklu, which was acquired in December 2023.
|
• |
Non-GAAP operating margins are targeted to be at least 10% at the mid-point of the revenue guidance.
|
• |
As a result, management expects increased non-GAAP profit and positive free cash flow for the full year of 2024.
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Revenues
|
96,088
|
86,151
|
184,586
|
169,560
|
||||||||||||
Cost of revenues
|
62,627
|
55,795
|
119,057
|
111,028
|
||||||||||||
Gross profit
|
33,461
|
30,356
|
65,529
|
58,532
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
8,385
|
7,812
|
17,232
|
15,750
|
||||||||||||
Sales and Marketing
|
11,508
|
9,778
|
22,769
|
19,974
|
||||||||||||
General and administrative
|
2,295
|
6,218
|
8,158
|
11,542
|
||||||||||||
Restructuring and related charges
|
-
|
897
|
1,416
|
897
|
||||||||||||
Acquisition- and integration-related charges
|
915
|
-
|
1,377
|
-
|
||||||||||||
Total operating expenses
|
23,103
|
24,705
|
50,952
|
48,163
|
||||||||||||
Operating income
|
10,358
|
5,651
|
14,577
|
10,369
|
||||||||||||
Financial expenses and others, net
|
1,916
|
1,886
|
4,777
|
3,344
|
||||||||||||
Income before taxes
|
8,442
|
3,765
|
9,800
|
7,025
|
||||||||||||
Taxes on income
|
609
|
1,677
|
1,564
|
2,969
|
||||||||||||
Net income
|
7,833
|
2,088
|
8,236
|
4,056
|
||||||||||||
Basic net income per share
|
0.09
|
0.02
|
0.10
|
0.05
|
||||||||||||
Diluted net income per share
|
0.09
|
0.02
|
0.09
|
0.05
|
||||||||||||
Weighted average number of shares used in
computing basic net income per share
|
85,743,770
|
84,365,168
|
85,632,241
|
84,359,762
|
||||||||||||
Weighted average number of shares used in
computing diluted net income per share
|
87,921,507
|
85,312,954
|
87,753,163
|
85,152,634
|
June 30,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
26,303
|
28,237
|
||||||
Trade receivables, net
|
112,895
|
104,321
|
||||||
Inventories
|
59,490
|
68,811
|
||||||
Other accounts receivable and prepaid expenses
|
17,601
|
16,571
|
||||||
Total current assets
|
216,289
|
217,940
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Severance pay and pension fund
|
4,807
|
4,985
|
||||||
Property and equipment, net
|
33,853
|
30,659
|
||||||
Operating lease right-of-use assets
|
17,817
|
18,837
|
||||||
Intangible assets, net
|
16,510
|
16,401
|
||||||
Goodwill
|
7,749
|
7,749
|
||||||
Other non-current assets
|
2,010
|
1,954
|
||||||
Total non-current assets
|
82,746
|
80,585
|
||||||
Total assets
|
299,035
|
298,525
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
67,405
|
67,032
|
||||||
Deferred revenues
|
2,561
|
5,507
|
||||||
Short-term loans
|
28,450
|
32,600
|
||||||
Operating lease liabilities
|
3,151
|
3,889
|
||||||
Other accounts payable and accrued expenses
|
25,756
|
23,925
|
||||||
Total current liabilities
|
127,323
|
132,953
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Accrued severance pay and pension
|
8,657
|
9,399
|
||||||
Deferred revenues
|
670
|
670
|
||||||
Operating lease liabilities
|
13,142
|
13,716
|
||||||
Other long-term payables
|
5,742
|
7,768
|
||||||
Total long-term liabilities
|
28,211
|
31,553
|
||||||
SHAREHOLDERS' EQUITY:
|
||||||||
Share capital
|
224
|
224
|
||||||
Additional paid-in capital
|
440,173
|
437,161
|
||||||
Treasury shares at cost
|
(20,091
|
)
|
(20,091
|
)
|
||||
Other comprehensive loss
|
(9,853
|
)
|
(8,087
|
)
|
||||
Accumulated deficit
|
(266,952
|
)
|
(275,188
|
)
|
||||
Total shareholders' equity
|
143,501
|
134,019
|
||||||
Total liabilities and shareholders' equity
|
299,035
|
298,525
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
Cash flow from operating activities:
|
||||||||||||||||
Net income
|
7,833
|
2,088
|
8,236
|
4,056
|
||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
2,941
|
2,582
|
5,880
|
5,135
|
||||||||||||
Loss from sale of property and equipment, net
|
169
|
20
|
169
|
30
|
||||||||||||
Stock-based compensation expense
|
1,566
|
808
|
2,470
|
1,977
|
||||||||||||
Decrease in accrued severance pay and pensions, net
|
(212
|
)
|
(280
|
)
|
(564
|
)
|
(344
|
)
|
||||||||
Increase in trade receivables, net
|
(16,023
|
)
|
(6,620
|
)
|
(9,247
|
)
|
(6,910
|
)
|
||||||||
Decrease (increase) in other assets (including other accounts receivable, prepaid expenses,
other non-current assets, and the effect of exchange rate changes on cash and cash equivalents)
|
(652
|
)
|
(445
|
)
|
(1,383
|
)
|
551
|
|||||||||
Decrease in inventory
|
1,186
|
893
|
8,555
|
4,059
|
||||||||||||
Decrease in operating lease right-of-use assets
|
1,694
|
886
|
2,626
|
1,897
|
||||||||||||
Increase (decrease) in trade payables
|
12,075
|
2,835
|
589
|
(3,955
|
)
|
|||||||||||
Increase (decrease) in other accounts payable and accrued expenses (including other long-term payables)
|
(2,196
|
)
|
2,620
|
(94
|
)
|
2,326
|
||||||||||
Decrease in operating lease liability
|
(1,922
|
)
|
(1,152
|
)
|
(2,942
|
)
|
(2,518
|
)
|
||||||||
Increase (decrease) in deferred revenues
|
(1,637
|
)
|
(1,054
|
)
|
(2,946
|
)
|
386
|
|||||||||
Net cash provided by operating activities
|
4,822
|
3,181
|
11,349
|
6,690
|
||||||||||||
Cash flow from investing activities:
|
||||||||||||||||
Purchases of property and equipment, net
|
(4,562
|
)
|
(2,330
|
)
|
(7,955
|
)
|
(5,472
|
)
|
||||||||
Software development costs capitalized
|
(676
|
)
|
(549
|
)
|
(989
|
)
|
(1,837
|
)
|
||||||||
Net cash used in investing activities
|
(5,238
|
)
|
(2,879
|
)
|
(8,944
|
)
|
(7,309
|
)
|
||||||||
Cash flow from financing activities:
|
||||||||||||||||
Proceeds from exercise of stock options
|
284
|
30
|
542
|
30
|
||||||||||||
Proceeds from (repayments of) bank credits and loans, net
|
(2,050
|
)
|
(2,300
|
)
|
(4,150
|
)
|
2,050
|
|||||||||
Net cash provided by (used in) financing activities
|
(1,766
|
)
|
(2,270
|
)
|
(3,608
|
)
|
2,080
|
|||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(298
|
)
|
74
|
(731
|
)
|
120
|
||||||||||
Increase (decrease) in cash and cash equivalents
|
(2,480
|
)
|
(1,894
|
)
|
(1,934
|
)
|
1,581
|
|||||||||
Cash and cash equivalents at the beginning of the period
|
28,783
|
26,423
|
28,237
|
22,948
|
||||||||||||
Cash and cash equivalents at the end of the period
|
26,303
|
24,529
|
26,303
|
24,529
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
GAAP cost of revenues
|
62,627
|
55,795
|
119,057
|
111,028
|
||||||||||||
Stock-based compensation expenses
|
(134
|
)
|
(48
|
)
|
(265
|
)
|
(228
|
)
|
||||||||
Amortization of acquired intangible assets
|
(189
|
)
|
-
|
(378
|
)
|
-
|
||||||||||
Excess cost on acquired inventory in business combination (*)
|
-
|
-
|
(124
|
)
|
-
|
|||||||||||
Non-GAAP cost of revenues
|
62,304
|
55,747
|
118,290
|
110,800
|
||||||||||||
GAAP gross profit
|
33,461
|
30,356
|
65,529
|
58,532
|
||||||||||||
Stock-based compensation expenses
|
134
|
48
|
265
|
228
|
||||||||||||
Amortization of acquired intangible assets
|
189
|
-
|
378
|
-
|
||||||||||||
Excess cost on acquired inventory in business combination (*)
|
-
|
-
|
124
|
-
|
||||||||||||
Non-GAAP gross profit
|
33,784
|
30,404
|
66,296
|
58,760
|
||||||||||||
GAAP Research and development expenses
|
8,385
|
7,812
|
17,232
|
15,750
|
||||||||||||
Stock-based compensation expenses
|
(184
|
)
|
(232
|
)
|
(336
|
)
|
(478
|
)
|
||||||||
Non-GAAP Research and development expenses
|
8,201
|
7,580
|
16,896
|
15,272
|
||||||||||||
GAAP Sales and marketing expenses
|
11,508
|
9,778
|
22,769
|
19,974
|
||||||||||||
Stock-based compensation expenses
|
(387
|
)
|
(363
|
)
|
(683
|
)
|
(739
|
)
|
||||||||
Amortization of acquired intangible assets
|
(117
|
)
|
-
|
(388
|
)
|
-
|
||||||||||
Non-GAAP Sales and marketing expenses
|
11,004
|
9,415
|
21,698
|
19,235
|
||||||||||||
GAAP General and administrative expenses
|
2,295
|
6,218
|
8,158
|
11,542
|
||||||||||||
Stock-based compensation expenses
|
(861
|
)
|
(167
|
)
|
(1,186
|
)
|
(535
|
)
|
||||||||
Non-GAAP General and administrative expenses
|
1,434
|
6,051
|
6,972
|
11,007
|
||||||||||||
GAAP Restructuring and related charges
|
-
|
897
|
1,416
|
897
|
||||||||||||
Restructuring and related charges
|
-
|
(897
|
)
|
(1,416
|
)
|
(897
|
)
|
|||||||||
Non-GAAP Restructuring and related charges
|
-
|
-
|
-
|
-
|
||||||||||||
GAAP Acquisition- and integration-related charges
|
915
|
-
|
1,377
|
-
|
||||||||||||
Acquisition- and integration-related charges
|
(915
|
)
|
-
|
(1,377
|
)
|
-
|
||||||||||
Non-GAAP Acquisition- and integration-related charges
|
-
|
-
|
-
|
-
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2024
|
2023
|
2024
|
2023
|
|||||||||||||
GAAP Operating income
|
10,358
|
5,651
|
14,577
|
10,369
|
||||||||||||
Stock-based compensation expenses
|
1,566
|
810
|
2,470
|
1,980
|
||||||||||||
Amortization of acquired intangible assets
|
306
|
-
|
766
|
-
|
||||||||||||
Excess cost on acquired inventory in business combination (*)
|
-
|
-
|
124
|
-
|
||||||||||||
Restructuring and other charges
|
-
|
897
|
1,416
|
897
|
||||||||||||
Acquisition- and integration-related charges
|
915
|
-
|
1,377
|
-
|
||||||||||||
Non-GAAP Operating income
|
13,145
|
7,358
|
20,730
|
13,246
|
||||||||||||
GAAP Financial expenses and others, net
|
1,916
|
1,886
|
4,777
|
3,344
|
||||||||||||
Leases – financial income
|
207
|
285
|
319
|
643
|
||||||||||||
Non-cash revaluation associated with business combination
|
477
|
-
|
(196
|
)
|
-
|
|||||||||||
Non-GAAP Financial expenses and others, net
|
2,600
|
2,171
|
4,900
|
3,987
|
||||||||||||
GAAP Tax expenses
|
609
|
1,677
|
1,564
|
2,969
|
||||||||||||
Non cash tax adjustments
|
-
|
(890
|
)
|
(413
|
)
|
(1,743
|
)
|
|||||||||
Non-GAAP Tax expenses
|
609
|
787
|
1,151
|
1,226
|
||||||||||||
GAAP Net income
|
7,833
|
2,088
|
8,236
|
4,056
|
||||||||||||
Stock-based compensation expenses
|
1,566
|
810
|
2,470
|
1,980
|
||||||||||||
Amortization of acquired intangible assets
|
306
|
-
|
766
|
-
|
||||||||||||
Excess cost on acquired inventory in business combination (*)
|
-
|
-
|
124
|
-
|
||||||||||||
Restructuring and other charges
|
-
|
897
|
1,416
|
897
|
||||||||||||
Acquisition- and integration-related charges
|
915
|
-
|
1,377
|
-
|
||||||||||||
Leases – financial income
|
(207
|
)
|
(285
|
)
|
(319
|
)
|
(643
|
)
|
||||||||
Non-cash revaluation associated with business combination
|
(477
|
)
|
-
|
196
|
-
|
|||||||||||
Non-cash tax adjustments
|
-
|
890
|
413
|
1,743
|
||||||||||||
Non-GAAP Net income
|
9,936
|
4,400
|
14,679
|
8,033
|
||||||||||||
GAAP basic net income per share
|
0.09
|
0.02
|
0.10
|
0.05
|
||||||||||||
GAAP diluted net income per share
|
0.09
|
0.02
|
0.09
|
0.05
|
||||||||||||
Non-GAAP Diluted net income per share (**)
|
0.11
|
0.05
|
0.17
|
0.09
|
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