CERAGON NETWORKS REPORTS 2021 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Ceragon Networks Ltd. (NASDAQ: CRNT) reported Q4 2021 revenues of $77.8 million, a 5.1% increase from Q4 2020, and full-year revenues of $290.8 million, a 10.6% rise from 2020. Despite an operating income of $1.0 million for Q4 on a GAAP basis, the net loss for the quarter was $12.2 million, or $(0.15) per diluted share. The company highlighted strong bookings, especially in North America and Europe, with 5G-related bookings comprising a significant portion. For 2022, Ceragon anticipates revenue of $305-$320 million, contingent on resolving supply chain issues.
- 2021 revenues increased by 10.6% to $290.8 million.
- Q4 2021 revenues rose by 5.1% compared to Q4 2020.
- Gross margin improved to 30.4% for the full year 2021.
- Record bookings in North America and Europe, with robust 5G-related demands.
- Full-year book-to-bill ratio was above 1.
- Net loss of $12.2 million in Q4 2021, worsening from a loss of $6.3 million in Q4 2020.
- Operating income decreased from $2.9 million in Q3 2021 to $1.0 million in Q4 2021.
- Cash and cash equivalents decreased to $17.1 million from $27.2 million in Q3 2021.
LITTLE FALLS, N.J., Feb. 7, 2022 /PRNewswire/ --
Q4 2021 Financial Highlights:
- Revenues of
$77.8 million - Operating income of
$1.0 million on a GAAP basis, or$1.5 million on a non-GAAP basis - EPS of
$(0.15) per diluted share on a GAAP basis, or$(0.02) per diluted share on a non-GAAP basis
Full Year 2021 Financial Highlights:
- Revenues of
$2 90.8 million - Operating income of
$4.8 million on a GAAP basis, or$6.8 million on a non-GAAP basis - EPS of
$(0.18) per diluted share on a GAAP basis, or$(0.03) per diluted share on a non-GAAP basis
Q4 & FY 2021 Business Highlights:
- Strong yearly bookings in North America, India and Europe; 2021 annual book-to-bill above 1
- Twenty 5G design wins to date, across all geographies
- North America:
- Record year ever in terms of bookings
- 5G-related bookings accounted for over50% of all North American bookings in 2021
- Lab tests with Tier-1 customers continued and have been successful so far - Europe:
- Record year surpassing the last eight years in terms of bookings
- 5G-related bookings accounted for over30% of all European bookings in 2021 - India: Continued healthy demand for network upgrades and expansion
Ceragon Networks Ltd. (NASDAQ: CRNT), the global innovator and leading solutions provider of 5G wireless transport, today reported its financial results for the fourth quarter and full year ended December 31, 2021.
Doron Arazi, CEO, commented: "I'm pleased to report that we had a good end to a highly challenging year. Not only did we deliver at the high end of our projected annual revenue range, but we also successfully initiated expansion into markets beyond our core domain such as Managed Services.
"We are meeting strong industry demand with our market-staple products as well as new innovations such as IP-50FX. Though our efforts were overshadowed by the ongoing global component shortage, supply chain disruptions, shipping issues, and increased prices, we were able to maintain and grow our market share. As I look into 2022, I'm optimistic that the crises will calm down, especially in the second half of the year."
Primary Fourth Quarter 2021 Financial Results:
Revenues were
Gross profit was
Operating income (loss) was
Net income (loss) was
Non-GAAP results were as follows: gross margin
Cash and cash equivalents were
Primary Full Year 2021 Financial Results:
Revenues were
Gross profit was
Operating income (loss) was
Net loss was
Non-GAAP results were as follows: Gross margin was
For a reconciliation of GAAP to non-GAAP results, see the attached tables
Revenue Breakout by Geography:
Q4 2021 | Full Year 2021 | |
India | ||
Latin America | ||
North America | ||
Europe | ||
APAC | ||
Africa |
Outlook
We are targeting revenue growth in 2022. Assuming the global component shortage, supply chain disruptions and shipping issues will calm down, we expect yearly revenue to be between
Conference Call
The Company will host a Zoom web conference today at 9:00a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. Investors are invited to register by clicking the following link. All relevant information will be sent upon registration.
If you are unable to join us live, a recording of the call will be available on our website at www.ceragon.com within 24 hours after the call.
About Ceragon Networks
Ceragon Networks Ltd. (NASDAQ: CRNT) is the global innovator and leading solutions provider of 5G wireless transport. With a vision to create equal digital opportunities for all people around the world, we bring communication capabilities everywhere by delivering robust, fiber-like wireless connectivity. We help operators and other service providers to increase operational efficiency and enhance end-customers' quality of experience with quick-to-deploy wireless backhaul and fronthaul solutions. Our customers include service providers, public safety organizations, government agencies, and utility companies, which use our solutions to deliver 5G & 4G broadband wireless connectivity, mission-critical multimedia services, stabilized communications and other applications at high reliability and speed.
Ceragon's unique multicore technology and disaggregated approach to wireless transport provide highly reliable, fast to deploy, high-capacity wireless transport for 5G and 4G networks with minimal use of spectrum, power, real estate, and labor resources. It enables increased productivity, as well as simple and quick network modernization, positioning Ceragon as a leading solutions provider for the 5G era. We deliver a complete portfolio of turnkey end-to-end AI-based managed and professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 400 service providers, as well as more than 800 private network owners, in more than 140 countries. For more information please visit: www.ceragon.com
Safe Harbor
Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a trademark of Ceragon Networks Ltd., registered in various countries. Other names mentioned are owned by their respective holders.
This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management about Ceragon's business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology.
Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations therefrom will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon's future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the effects of general economic conditions and trends on the global and local markets in which we operate, the continued effect of the COVID-19 pandemic on the global economy and markets and on us and on the markets in which we operate, including the risk of a continued disruption to our and our customers', providers', business partners and contractors' business and operations; the continued effect of the global increase in shipping costs and decrease in shipping slots availability on us, our supply chain and customers, which have resulted, and may continue to result in, price erosion, late deliveries and the risk of penalties and orders cancellation due to late deliveries; the continuing impact of the components shortage due to the global shortage in semiconductors and chipsets, which have caused, and could continue to cause delays in deliveries of our products and delays in the deployment of wireless communication networks by our customers, slowdowns in ordering or projects' deployment and other adverse effects on our industry and the risk of penalties and orders cancellation created thereby, as well as profit erosion due to constant price increase, payment of expedite fees and costs of inventory pre-ordering and procurement acceleration; the risks relating to increased breaches of network or information technology security along with increase in cyber-attack activities, growing cyber-crime threats, and changes in privacy and data protection laws, that could have an adverse effect on our business,; the risks relating to the concentration of a significant portion of Ceragon's expected business in certain countries and particularly in India, where a small number of customers are expected to represent a significant portion of our revenues; risks associated with any failure to meet our product development timetable, including delay in the tape-out of our new chipset; the risk that the rollout of 5G services could take longer or be performed differently than anticipated and such other risks, uncertainties and other factors that could affect our results, as further detailed in Ceragon's most recent Annual Report on Form 20-F and in Ceragon's other filings with the Securities and Exchange Commission.
Such forward-looking statements, including the risks, uncertainties and other factors that could affect our results, represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. Such forward-looking statements do not purport to be predictions of future events or results and there can be no assurance that it will prove to be accurate. Ceragon may elect to update these forward-looking statements at some point in the future but the company specifically disclaims any obligation to do so except as may be required by law.
Ceragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Ceragon's website at www.ceragon.com.
Investor & Media Contact:
Maya Lustig
Ceragon Networks
Tel. +972-54-677-8100
mayal@ceragon.com
- Tables Follow -
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(U.S. dollars in thousands, except share and per share data) | ||||||||
(Unaudited) | ||||||||
Three months ended | Year ended | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenues | $ 77,760 | $ 74,002 | $ 290,766 | $ 262,881 | ||||
Cost of revenues | 54,929 | 52,447 | 202,389 | 187,236 | ||||
Gross profit | 22,831 | 21,555 | 88,377 | 75,645 | ||||
Operating expenses: | ||||||||
Research and development, net | 7,795 | 9,608 | 29,473 | 30,997 | ||||
Selling and Marketing | 9,026 | 8,562 | 33,509 | 33,021 | ||||
General and administrative | 4,983 | 4,849 | 20,589 | 19,199 | ||||
Total operating expenses | $ 21,804 | $ 23,019 | $ 83,571 | $ 83,217 | ||||
Operating income (loss) | 1,027 | (1,464) | 4,806 | (7,572) | ||||
Financial expenses and others, net | 3,397 | 2,756 | 8,625 | 5,923 | ||||
Loss before taxes | (2,370) | (4,220) | (3,819) | (13,495) | ||||
Taxes on income | 9,842 | 1,561 | 11,009 | 2,618 | ||||
Equity loss in affiliates | - | 538 | - | 979 | ||||
Net loss | $ (12,212) | $ (6,319) | $ (17,092) | |||||
Basic and diluted net loss per share | $ (0.15) | $ (0.08) |
$ (0.18) |
$ (0.21) | ||||
Weighted average number of shares used |
83,916,419 |
81,536,498 |
83,414,831 |
81,149,687 | ||||
Weighted average number of shares used |
83,916,419 |
81,536,498 |
83,414,831 |
81,149,687 | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(U.S. dollars in thousands) | ||||
December 31, | December 31, | |||
ASSETS | Unaudited | Audited | ||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 17,079 | $ 27,101 | ||
Trade receivables, net | 118,310 | 107,388 | ||
Other accounts receivable and prepaid expenses | 17,179 | 14,755 | ||
Inventories | 61,398 | 50,627 | ||
Total current assets | 213,966 | 199,871 | ||
NON-CURRENT ASSETS: | ||||
Deferred tax assets | - | 8,279 | ||
Severance pay and pension fund | 5,648 | 6,059 | ||
Property and equipment, net | 29,383 | 31,748 | ||
Operating lease right-of-use assets | 20,233 | 6,780 | ||
Intangible assets, net | 6,274 | 6,117 | ||
Other non-current assets | 17,059 | 13,565 | ||
Total non-current assets | 78,597 | 72,548 | ||
Total assets | $ 292,563 | $ 272,419 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ 69,436 | $ 63,722 | ||
Deferred revenues | 3,384 | 3,492 | ||
Short-term loans | 14,800 | 5,979 | ||
Operating lease liabilities | 4,359 | 3,183 | ||
Other accounts payable and accrued expenses | 23,704 | 24,048 | ||
Total current liabilities | 115,683 | 100,424 | ||
LONG-TERM LIABILITIES: | ||||
Accrued severance pay and pensions | 10,799 | 11,601 | ||
Deferred revenues | 9,275 | 7,495 | ||
Operating lease liabilities | 17,210 | 3,840 | ||
Other long-term payables | 2,445 | 2,933 | ||
Total long-term liabilities | 39,729 | 25,869 | ||
SHAREHOLDERS' EQUITY: | ||||
Share capital: | ||||
Ordinary shares | 224 | 218 | ||
Additional paid-in capital | 428,244 | 420,958 | ||
Treasury shares at cost | (20,091) | (20,091) | ||
Accumulated other comprehensive loss | (9,507) | (8,068) | ||
Accumulated deficit | (261,719) | (246,891) | ||
Total shareholders' equity | 137,151 | 146,126 | ||
Total liabilities and shareholders' equity | $ 292,563 | $ 272,419 | ||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (U.S. dollars, in thousands) (Unaudited) Three months ended Year ended 2021 2020 2021 2020 Cash flow from operating activities: Net loss $ (12,212) $ (6,319) $ (14,828) $ (17,092) Adjustments to reconcile net loss to net cash Depreciation and amortization 3,458 4,749 12,246 12,861 Loss from sale of property and equipment, net 9 - 82 - Share-based compensation expense 891 411 2,562 1,662 Increase (decrease) in accrued severance pay (134) 654 (418) 488 Decrease (increase) in trade receivables, net (8,562) 1,168 (11,150) 9,345 Decrease (increase) in other accounts receivable 744 (732) (6,976) (6,661) Decrease in operating lease right-of-use assets 2,320 1,259 5,713 5,121 Decrease (increase) in inventory, net of write off (8,473) 1,009 (11,908) 9,919 Decrease (increase) in deferred tax asset, net 8,543 (137) 8,279 (173) Decrease in trade payables 6,148 6,919 5,883 1,953 Increase (decrease) in other accounts payable and (1,370) 2,081 (1,556) 1,946 Decrease in operating lease liability (1,578) (1,066) (4,620) (5,112) Increase in deferred revenues 476 1,110 1,672 2,988 Net cash provided by (used in) operating activities $ (9,740) $ 11,106 $ (15,019) $ 17,245 Cash flow from investing activities: Purchase of property and equipment (3,136) (1,702) (9,383) (6,077) Proceeds from sale of property and equipment - - 200 - Purchase of intangible assets (192) (69) (212) (412) Net cash used in investing activities $ (3,328) $ (1,771) $ (9,395) $ (6,489) Cash flow from financing activities: Proceeds from exercise of options 42 390 4,730 1,237 Proceeds from (repayment of) bank credits and loans, net 2,900 (11,900) 9,800 (8,621) Net cash provided by (used in) financing activities $ 2,942 $ (11,510) $ 14,530 $ (7,384) Translation adjustments on cash and cash equivalents $ (30) $ 121 $ (138) $ (210) Increase (decrease) in cash and cash equivalents $ (10,156) $ (2,054) $ (10,022) $ 3,162 Cash and cash equivalents at the beginning of the period 27,235 29,155 27,101 23,939 Cash and cash equivalents at the end of the period $ 17,079 $ 27,101 $ 17,079 $ 27,101
December 31,
December 31,
provided by (used in) operating activities:
and pensions, net
and prepaid expenses (including other long term assets)
accrued expenses (including other long term liabilities)
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS | ||||||||||||
(U.S. dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended | Year ended | |||||||||||
December 31, | December 31 | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
GAAP cost of revenues | $ | 54,929 | $ | 52,447 | $ | 202,389 | $ | 187,236 | ||||
Share based compensation expenses | (129) | (18) | (289) | (110) | ||||||||
Paycheck protection program | - | - | 306 | - | ||||||||
Changes in indirect tax positions | 399 | 202 | 394 | 199 | ||||||||
Non-GAAP cost of revenues | $ | 55,199 | $ | 52,631 | $ | 202,800 | $ | 187,325 | ||||
GAAP gross profit | $ | 22,831 | $ | 21,555 | $ | 88,377 | $ | 75,645 | ||||
Share based compensation expenses | 129 | 18 | 289 | 110 | ||||||||
Paycheck protection program | - | - | (306) | - | ||||||||
Changes in indirect tax positions | (399) | (202) | (394) | (199) | ||||||||
Non-GAAP gross profit | $ | 22,561 | $ | 21,371 | $ | 87,966 | $ | 75,556 | ||||
GAAP Research and development expenses | $ | 7,795 | $ | 9,608 | $ | 29,473 | $ | 30,997 | ||||
Amortization of intangible assets | - | (1,800) | - | (1,800) | ||||||||
Share based compensation expenses | (50) | (114) | (236) | (243) | ||||||||
Non-GAAP Research and development expenses | $ | 7,745 | $ | 7,694 | $ | 29,237 | $ | 28,954 | ||||
GAAP Selling and Marketing expenses | $ | 9,026 | $ | 8,562 | $ | 33,509 | $ | 33,021 | ||||
Share based compensation expenses | (345) | (110) | (700) | (545) | ||||||||
Paycheck protection program | - | - | 673 | - | ||||||||
Non-GAAP Selling and Marketing expenses | $ | 8,681 | $ | 8,452 | $ | 33,482 | $ | 32,476 | ||||
GAAP General and Administrative expenses | $ | 4,983 | $ | 4,849 | $ | 20,589 | $ | 19,199 | ||||
Retired CEO compensation | - | - | (810) | - | ||||||||
Share based compensation expenses | (367) | (169) | (1,337) | (764) | ||||||||
Non-GAAP General and Administrative expenses | $ | 4,616 | $ | 4,680 | $ | 18,442 | $ | 18,435 | ||||
GAAP operating income (loss) | $ | 1,027 | $ | (1,464) | $ | 4,806 | $ | (7,572) | ||||
Share based compensation expenses | 891 | 411 | 2,562 | 1,662 | ||||||||
Changes in indirect tax positions | (399) | (202) | (394) | (199) | ||||||||
Retired CEO compensation | - | - | 810 | - | ||||||||
Amortization of intangible assets | - | 1,800 | - | 1,800 | ||||||||
Paycheck protection program | - | - | (979) | - | ||||||||
Non-GAAP operating income (loss) | $ | 1,519 | $ | 545 | $ | 6,805 | $ | (4,309) | ||||
GAAP financial expenses and others, net | $ | 3,397 | $ | 2,756 | $ | 8,625 | $ | 5,923 | ||||
Leases – financial income (expenses) | (706) | (229) | (1,057) | (46) | ||||||||
Non-GAAP financial expenses and others, net | $ | 2,691 | $ | 2,527 | $ | 7,568 | $ | 5,877 | ||||
GAAP Tax expenses | $ | 9,842 | $ | 1,561 | $ | 11,009 | $ | 2,618 | ||||
Non cash tax adjustments | (8,987) | (2) | (9,039) | (6) | ||||||||
Non-GAAP Tax expenses | $ | 855 | $ | 1,559 | $ | 1,970 | $ | 2,612 | ||||
GAAP equity loss in affiliates | $ | - | $ | 538 | $ | - | $ | 979 | ||||
Other non-cash adjustments | - | (538) | - | (979) | ||||||||
Non-GAAP equity loss in affiliates | $ | - | $ | - | $ | - | $ | - | ||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS (U.S. dollars in thousands, except share and per share data) (Unaudited) Three months ended Year ended December 31, December 31, 2021 2020 2021 2020 GAAP net loss $ (12,212) $ (6,319) $ (14,828) $ (17,092) Amortization of intangible assets - 1,800 - 1,800 Share based compensation Expenses 891 411 2,562 1,662 Changes in indirect tax positions (399) (202) (394) (199) Leases – financial expenses (income) 706 229 1,057 46 Paycheck protection program - - (979) - Retired CEO compensation - - 810 - Non-cash tax adjustments 8,987 2 9,039 6 Other non-cash adjustment - 538 - 979 Non-GAAP net loss $ (2,027) $ (3,541) $ (2,733) $ (12,798) GAAP basic and diluted net loss per share $ (0.15) $ (0.08) $ (0.18) $ (0.21) Non-GAAP diluted net loss per share $ (0.02) $ (0.04) $ (0.03) $ (0.16) Weighted average number of shares 83,916,419 81,536,498 83,414,831 81,149,687 Weighted average number of shares 83,916,419 81,536,498 83,414,831 81,149,687
used in computing GAAP
basic and diluted net loss per share
used in computing Non-GAAP diluted
net income (loss) per share
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SOURCE Ceragon Networks Ltd
