Ceragon Reports 17.7% Increase in Quarterly Revenue, GAAP EPS of $0.14 Per Share in the Third Quarter
Ceragon (NASDAQ: CRNT) reported strong Q3 2024 financial results with revenues of $102.7 million, up 17.7% year-over-year. The company achieved GAAP operating income of $14.6 million and net income of $12.2 million, resulting in EPS of $0.14 per share. India contributed 49% of revenue, hitting all-time record quarterly revenues, while North America maintained strong performance with seven consecutive quarters above $20 million. The company reiterated its 2024 outlook, expecting revenue between $390-400 million and non-GAAP operating margins of at least 10% at the midpoint.
Ceragon (NASDAQ: CRNT) ha riportato solidi risultati finanziari per il terzo trimestre del 2024, con ricavi di 102,7 milioni di dollari, in aumento del 17,7% rispetto all'anno precedente. L'azienda ha registrato un utile operativo GAAP di 14,6 milioni di dollari e un utile netto di 12,2 milioni di dollari, risultando in un utile per azione di $0,14 per azione. L'India ha contribuito al 49% dei ricavi, segnando ricavi trimestrali record, mentre il Nord America ha mantenuto una forte performance con sette trimestri consecutivi sopra i 20 milioni di dollari. L'azienda ha ribadito le proprie previsioni per il 2024, prevedendo ricavi tra i 390 e i 400 milioni di dollari e margini operativi non GAAP di almeno il 10% a metà percorso.
Ceragon (NASDAQ: CRNT) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos de 102,7 millones de dólares, un aumento del 17,7% interanual. La compañía alcanzó un ingreso operativo GAAP de 14,6 millones de dólares y un ingreso neto de 12,2 millones de dólares, lo que resulta en una ganancia por acción de $0,14 por acción. India contribuyó con el 49% de los ingresos, alcanzando ingresos trimestrales récord, mientras que América del Norte mantuvo un fuerte desempeño con siete trimestres consecutivos por encima de los 20 millones de dólares. La compañía reiteró su perspectiva para 2024, esperando ingresos entre 390 y 400 millones de dólares y márgenes operativos no GAAP de al menos el 10% en el punto medio.
세라곤 (NASDAQ: CRNT)은 2024년 3분기 강력한 재무 결과를 보고했으며, 매출은 1억 270만 달러로 지난해 대비 17.7% 증가했습니다. 이 회사는 GAAP 기준 운영 소득 1천460만 달러와 순이익 1천220만 달러를 달성하여, 주당 순이익은 $0.14에 이릅니다. 인도는 매출의 49%를 기여하며 역대 최대 분기 매출을 기록했으며, 북미는 7분기 연속 2천만 달러 이상의 강력한 실적을 유지했습니다. 이 회사는 2024년 전망을 재확인하며, 매출은 3억 9천만에서 4억 달러 사이를 예상하고, 중간 목표에서 비 GAAP 운영 마진은 최소 10%에 이를 것으로 보입니다.
Ceragon (NASDAQ: CRNT) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec des revenus de 102,7 millions de dollars, en hausse de 17,7 % par rapport à l'année précédente. L'entreprise a réalisé un bénéfice d'exploitation GAAP de 14,6 millions de dollars et un bénéfice net de 12,2 millions de dollars, ce qui donne un BPA de 0,14 $ par action. L'Inde a contribué à hauteur de 49 % des revenus, atteignant des revenus trimestriels records, tandis que l'Amérique du Nord a maintenu une forte performance avec sept trimestres consécutifs au-dessus de 20 millions de dollars. L'entreprise a réaffirmé ses prévisions pour 2024, s'attendant à des revenus entre 390 et 400 millions de dollars et des marges opérationnelles non GAAP d'au moins 10 % au point médian.
Ceragon (NASDAQ: CRNT) hat starke Finanzzahlen für das dritte Quartal 2024 berichtet, mit Einnahmen von 102,7 Millionen US-Dollar, was einem Anstieg von 17,7 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein GAAP-Betriebsergebnis von 14,6 Millionen US-Dollar und einen Nettogewinn von 12,2 Millionen US-Dollar, was zu einem Gewinn je Aktie von $0,14 führte. Indien trug 49 % zu den Einnahmen bei und erreichte Rekordeinnahmen in einem Quartal, während Nordamerika mit sieben aufeinander folgenden Quartalen über 20 Millionen US-Dollar eine starke Leistung zeigte. Das Unternehmen bekräftigte seinen Ausblick für 2024 und erwartet einen Umsatz zwischen 390 und 400 Millionen US-Dollar sowie Nicht-GAAP-Betriebsrenditen von mindestens 10 % im Mittel.
- Revenue increased 17.7% YoY to $102.7 million
- GAAP operating income grew to $14.6 million from $6.7 million in Q3 2023
- GAAP Net income increased to $12.2 million from $3.4 million in Q3 2023
- Generated over $10 million in free cash flow
- Cash position improved to $34.0 million from $26.3 million in Q2 2024
- Non-GAAP operating profit increased 35% year-over-year
- None.
Insights
The Q3 results demonstrate robust financial performance with several key positives. Revenue grew 17.7% year-over-year to
Geographic diversification is healthy, with India contributing
The Siklu acquisition integration appears to be progressing well, contributing to the expanded product portfolio and market reach. The consistent profitability and strong order pipeline, particularly in private networks and Indian market, suggest sustainable growth trajectory.
The wireless connectivity market dynamics are clearly favoring Ceragon's positioning. The company's seven consecutive quarters of
The successful Cincinnati project completion demonstrates Ceragon's ability to execute large-scale deployments, which should help win similar municipal contracts. The IP-50CX product ramp-up suggests successful innovation in meeting evolving market needs. The debt settlement with the South American customer (
Revenue Diversification, Expense Management, Enable Consistent Profitability;
Management Reiterates Midpoint of Full-Year 2024 Outlook
ROSH HA'
Q3 2024 Financial Highlights:
- Revenues of
$102.7 million - Operating income of
on a GAAP basis, or$14.6 million on a non-GAAP basis$15.8 million - Net Income of
on a GAAP basis, and net income of$12.2 million on a non-GAAP basis$14.1 million - EPS of
per diluted share on a GAAP basis, or$0.14 per diluted share on a non-GAAP basis$0.16
Q3 2024 Business Highlights:
India :
- All-time record quarterly revenues.
- Expanding pipeline of customer opportunities
- Increasing revenue diversification
- Continued ramp up in deliveries for new IP-50CX productNorth America :
- Seven consecutive quarters of revenue above$20 million
- Completed City of Cincinnati extended project with high customer satisfaction, creating more opportunities through proactive references
Doron Arazi, CEO, commented: "Ceragon delivered double-digit year-over-year revenue growth, driven by strong results from
"Simultaneously, we are converting incremental revenue into expanded profitability," continued Mr. Arazi. "Our non-GAAP operating profit, excluding the benefit of the collection of prior bad debt, increased approximately
Primary Third Quarter 2024 Financial Results:
Revenues were
GAAP Operating income was
GAAP Net income was
Non-GAAP results were as follows: Gross margin was
Balance Sheet
Cash and cash equivalents were
For a reconciliation of GAAP to non-GAAP results, see the attached tables.
Revenue Breakout by Geography:
Q3 2024 | |
49 % | |
24 % | |
EMEA | 14 % |
7 % | |
APAC | 6 % |
Outlook
Management reiterated its 2024 outlook, narrowing the expected range while maintaining the midpoint of the outlook:
- Revenue of
to$390 million , representing growth of$400 million 12% to15% 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.
Conference Call
The Company will host a Zoom web conference today at 8:30 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. Recent geopolitical events could impact the live question and answer session. In this unlikely event, management's prepared remarks will be pre-recorded, and the question and answer session would be rescheduled.
Investors are invited to register by clicking here. All relevant information will be sent upon registration.
If you are unable to join the live call, a replay will be available on our website at www.ceragon.com within 24 hours after the call.
About Ceragon
Ceragon (NASDAQ: CRNT) is the global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services. Through our commitment to excellence, we empower customers to elevate operational efficiency and enrich the quality of experience for their end users.
Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more, who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries.
Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery. Ceragon delivers extremely reliable, fast to deploy, high-capacity wireless solutions for a wide range of communication network use cases, optimized to lower TCO through minimal use of spectrum, power, real estate, and labor resources - driving simple, quick, and cost-effective network modernization and positioning Ceragon as a leading solutions provider for the "connectivity everywhere" era.
For more information please visit: www.ceragon.com
Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in
Safe Harbor
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, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability, 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 not all forward-looking statements contain these identifying words.
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 the evolving nature of the war situation in
We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.
The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.
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.
Ceragon Investor & Media Contact:
Rob Fink
FNK IR
Tel. 1+646-809-4048
crnt@fnkir.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
( | ||||||||||
(Unaudited) | ||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
Revenues | 102,672 | 87,260 | 287,258 | 256,820 | ||||||
Cost of revenues | 67,732 | 56,986 | 186,789 | 168,014 | ||||||
Gross profit | 34,940 | 30,274 | 100,469 | 88,806 | ||||||
Operating expenses: | ||||||||||
Research and development, net | 8,750 | 7,454 | 25,982 | 23,204 | ||||||
Sales and Marketing | 10,871 | 10,059 | 33,640 | 30,033 | ||||||
General and administrative | 688 | 5,806 | 8,846 | 17,348 | ||||||
Restructuring and related charges | - | - | 1,416 | 897 | ||||||
Acquisition- and integration-related charges | - | 283 | 1,377 | 283 | ||||||
Total operating expenses | 20,309 | 23,602 | 71,261 | 71,765 | ||||||
Operating income | 14,631 | 6,672 | 29,208 | 17,041 | ||||||
Financial expenses and others, net | 1,834 | 1,722 | 6,611 | 5,066 | ||||||
Income before taxes | 12,797 | 4,950 | 22,597 | 11,975 | ||||||
Taxes on income | 580 | 1,583 | 2,144 | 4,552 | ||||||
Net income | 12,217 | 3,367 | 20,453 | 7,423 | ||||||
Basic net income per share |
0.14 |
0.04 |
0.24 |
0.09 | ||||||
Diluted net income per share |
0.14 |
0.04 |
0.23 |
0.09 | ||||||
Weighted average number of shares used in computing basic net income per share |
86,280,444 |
84,688,985 |
85,849,886 |
84,470,709 | ||||||
Weighted average number of shares used in computing diluted net income per share |
88,333,970 |
85,488,113 |
87,948,342 |
85,265,666 | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
( | |||
September 30, | December 31, | ||
2024 | 2023 | ||
Unaudited | Audited | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | 34,014 | 28,237 | |
Trade receivables, net | 121,550 | 104,321 | |
Inventories | 59,800 | 68,811 | |
Other accounts receivable and prepaid expenses | 18,568 | 16,571 | |
Total current assets | 233,932 | 217,940 | |
NON-CURRENT ASSETS: | |||
Severance pay and pension fund | 4,687 | 4,985 | |
Property and equipment, net | 35,065 | 30,659 | |
Operating lease right-of-use assets | 17,174 | 18,837 | |
Intangible assets, net | 16,600 | 16,401 | |
Goodwill | 7,749 | 7,749 | |
Other non-current assets | 2,067 | 1,954 | |
Total non-current assets | 83,342 | 80,585 | |
Total assets | 317,274 | 298,525 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
CURRENT LIABILITIES: | |||
Trade payables | 75,433 | 67,032 | |
Deferred revenues | 2,355 | 5,507 | |
Short-term loans | 25,200 | 32,600 | |
Operating lease liabilities | 2,872 | 3,889 | |
Other accounts payable and accrued expenses | 26,210 | 23,925 | |
Total current liabilities | 132,070 | 132,953 | |
LONG-TERM LIABILITIES: | |||
Accrued severance pay and pension | 8,370 | 9,399 | |
Deferred revenues | 670 | 670 | |
Operating lease liabilities | 13,280 | 13,716 | |
Other long-term payables | 5,712 | 7,768 | |
Total long-term liabilities | 28,032 | 31,553 | |
SHAREHOLDERS' EQUITY: | |||
Share capital | 224 | 224 | |
Additional paid-in capital | 441,345 | 437,161 | |
Treasury shares at cost | (20,091) | (20,091) | |
Other comprehensive loss | (9,571) | (8,087) | |
Accumulated deficit | (254,735) | (275,188) | |
Total shareholders' equity | 157,172 | 134,019 | |
Total liabilities and shareholders' equity | 317,274 | 298,525 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | |||||||
( | |||||||
(Unaudited) | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Cash flow from operating activities: | |||||||
Net income | 12,217 | 3,367 | 20,453 | 7,423 | |||
Adjustments to reconcile net income to net cash provided | |||||||
Depreciation and amortization | 2,981 | 2,366 | 8,861 | 7,501 | |||
Loss from sale of property and equipment, net | - | 31 | 169 | 61 | |||
Stock-based compensation expense | 907 | 1,048 | 3,377 | 3,025 | |||
Decrease in accrued severance pay and pensions, net | (167) | (11) | (731) | (355) | |||
Decrease (increase) in trade receivables, net | (8,540) | 2,684 | (17,787) | (4,226) | |||
Decrease (increase) in other assets (including other | (929) | 1,360 | (2,312) | 1,911 | |||
Decrease (increase) in inventory | (640) | (2,437) | 7,915 | 1,622 | |||
Decrease in operating lease right-of-use assets | 1,067 | 1,090 | 3,693 | 2,987 | |||
Increase (decrease) in trade payables | 7,152 | 3,229 | 7,741 | (726) | |||
Increase in other accounts payable and accrued expenses | 443 | 2,071 | 349 | 4,397 | |||
Decrease in operating lease liability | (565) | (1,443) | (3,507) | (3,961) | |||
Increase (decrease) in deferred revenues | (206) | (118) | (3,152) | 268 | |||
Net cash provided by operating activities | 13,720 | 13,237 | 25,069 | 19,927 | |||
Cash flow from investing activities: | |||||||
Purchases of property and equipment, net | (2,899) | (1,935) | (10,854) | (7,407) | |||
Software development costs capitalized | (249) | (446) | (1,238) | (2,283) | |||
Net cash used in investing activities | (3,148) | (2,381) | (12,092) | (9,690) | |||
Cash flow from financing activities: | |||||||
Proceeds from exercise of stock options | 265 | - | 807 | 30 | |||
Proceeds from (repayments of) bank credits and loans, net |
(3,250) |
(1,350) |
(7,400) |
700 | |||
Net cash provided by (used in) financing activities | (2,985) | (1,350) | (6,593) | 730 | |||
Effect of exchange rate changes on cash and cash equivalents | 124 | (69) | (607) | 51 | |||
Increase in cash and cash equivalents | 7,711 | 9,437 | 5,777 | 11,018 | |||
Cash and cash equivalents at the beginning of the period | 26,303 | 24,529 | 28,237 | 22,948 | |||
Cash and cash equivalents at the end of the period | 34,014 | 33,966 | 34,014 | 33,966 |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS | |||||||
( | |||||||
(Unaudited) | |||||||
Three months ended September 30, | Nine months ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
GAAP Cost of revenues | 67,732 | 56,986 | 186,789 | 168,014 | |||
Stock-based compensation expenses | (109) | (142) | (374) | (370) | |||
Amortization of acquired intangible assets | (189) | - | (567) | - | |||
Excess cost on acquired inventory in business combination (*) | - | - | (124) | - | |||
Non-GAAP Cost of revenues | 67,434 | 56,844 | 185,724 | 167,644 | |||
GAAP Gross profit | 34,940 | 30,274 | 100,469 | 88,806 | |||
Stock-based compensation expenses | 109 | 142 | 374 | 370 | |||
Amortization of acquired intangible assets | 189 | - | 567 | - | |||
Excess cost on acquired inventory in business combination (*) | - | - | 124 | - | |||
Non-GAAP Gross profit | 35,238 | 30,416 | 101,534 | 89,176 | |||
GAAP Research and development expenses | 8,750 | 7,454 | 25,982 | 23,204 | |||
Stock-based compensation expenses | (173) | (194) | (509) | (672) | |||
Non-GAAP Research and development expenses | 8,577 | 7,260 | 25,473 | 22,532 | |||
GAAP Sales and marketing expenses | 10,871 | 10,059 | 33,640 | 30,033 | |||
Stock-based compensation expenses | (341) | (357) | (1,024) | (1,096) | |||
Amortization of acquired intangible assets | (117) | - | (505) | - | |||
Non-GAAP Sales and marketing expenses | 10,413 | 9,702 | 32,111 | 28,937 | |||
GAAP General and administrative expenses | 688 | 5,806 | 8,846 | 17,348 | |||
Stock-based compensation expenses | (284) | (355) | (1,470) | (890) | |||
Non-GAAP General and administrative expenses | 404 | 5,451 | 7,376 | 16,458 | |||
GAAP Restructuring and related charges | - | - | 1,416 | 897 | |||
Restructuring and related charges | - | - | (1,416) | (897) | |||
Non-GAAP Restructuring and related charges | - | - | - | - | |||
GAAP Acquisition- and integration-related charges | - | 283 | 1,377 | 283 | |||
Acquisition- and integration-related charges | - | (283) | (1,377) | (283) | |||
Non-GAAP Acquisition- and integration-related charges | - | - | - | - |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS ( (Unaudited) | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
GAAP Operating income | 14,631 | 6,672 | 29,208 | 17,041 | ||||||||
Stock-based compensation expenses | 907 | 1,048 | 3,377 | 3,028 | ||||||||
Amortization of acquired intangible assets | 306 | - | 1,072 | - | ||||||||
Excess cost on acquired inventory in business combination (*) | - | - | 124 | - | ||||||||
Restructuring and other charges | - | - | 1,416 | 897 | ||||||||
Acquisition- and integration-related charges | - | 283 | 1,377 | 283 | ||||||||
Non-GAAP Operating income | 15,844 | 8,003 | 36,574 | 21,249 | ||||||||
GAAP Financial expenses and others, net | 1,834 | 1,722 | 6,611 | 5,066 | ||||||||
Leases – financial income (expenses) | (501) | 364 | (182) | 1,007 | ||||||||
Non-cash revaluation expenses associated with business combination | (122) | - | (318) | - | ||||||||
Non-GAAP Financial expenses and others, net | 1,211 | 2,086 | 6,111 | 6,073 | ||||||||
GAAP Tax expenses | 580 | 1,583 | 2,144 | 4,552 | ||||||||
Non-cash tax adjustments | - | (630) | (413) | (2,373) | ||||||||
Non-GAAP Tax expenses | 580 | 953 | 1,731 | 2,179 | ||||||||
GAAP Net income | 12,217 | 3,367 | 20,453 | 7,423 | ||||||||
Stock-based compensation expenses | 907 | 1,048 | 3,377 | 3,028 | ||||||||
Amortization of acquired intangible assets | 306 | - | 1,072 | - | ||||||||
Excess cost on acquired inventory in business combination (*) | - | - | 124 | - | ||||||||
Restructuring and other charges | - | - | 1,416 | 897 | ||||||||
Acquisition- and integration-related charges | - | 283 | 1,377 | 283 | ||||||||
Leases – financial expenses (income) | 501 | (364) | 182 | (1,007) | ||||||||
Non-cash revaluation expenses associated with business combination | 122 | - | 318 | - | ||||||||
Non-cash tax adjustments | - | 630 | 413 | 2,373 | ||||||||
Non-GAAP Net income | 14,053 | 4,964 | 28,732 | 12,997 | ||||||||
GAAP Basic net income per share | 0.14 | 0.04 | 0.24 | 0.09 | ||||||||
GAAP Diluted net income per share | 0.14 | 0.04 | 0.23 | 0.09 | ||||||||
Non-GAAP Diluted net income per share (**) | 0.16 | 0.06 | 0.33 | 0.15 | ||||||||
(*) Consists of charges to cost of revenues for the difference between the fair value of acquired inventory in business combination, which was recorded at fair value, (**) Weighted average number of shares used in computing diluted net income per share is the same as in GAAP |
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SOURCE Ceragon Networks Ltd.
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