Revenues for the fourth quarter of 2008 were $56.8 million, up 23.0% from $46.1 million for the fourth quarter of 2007

February 5, 2009

2 Min Read

TEL AVIV -- Ceragon Networks Ltd. (NASDAQ: CRNT and TASE: CRNT), a leading provider of high-capacity wireless backhaul solutions, today reported results for the fourth quarter and year which ended December 31, 2008.

Revenues for the fourth quarter of 2008 were $56.8 million, up 23.0% from $46.1 million for the fourth quarter of 2007 and down 2.3% from $58.1 million in the third quarter of 2008.

Net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the fourth quarter of 2008 was $2.7 million or $0.07 per basic and diluted share, compared to net income of $4.4 million in the fourth quarter of 2007, or $0.13 per basic share and $0.12 per diluted share.

On a non-GAAP basis, net income for the fourth quarter, excluding $594,000 of equity-based compensation expenses, was $3.3 million, or $0.09 per basic and diluted share. Non-GAAP net income for the fourth quarter of 2007 was $4.9 million, or $0.15 per basic share and $0.14 per diluted share (please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP).

Revenues for the full year of 2008 were $217.3 million, up 34.2% from $161.9 million in 2007. Net income on a GAAP basis for 2008 was $26 million or $0.70 per basic share and $0.68 per diluted share including $11.2 million of tax benefit relates to the initial creation of deferred tax asset in the second quarter of 2008. Net income for the year 2007 was $13.1 million or $0.44 per basic share and $0.41 per diluted share.

On a non-GAAP basis, net income for 2008 was $17.3 million, or $0.47 per basic share and $0.45 per diluted share compared to a non-GAAP net income of $15.3 million, or $0.52 per basic share and $0.48 per diluted share for 2007.

Gross margin on a GAAP basis in the fourth quarter of 2008 was 33.4% of revenues. Gross margin on a non-GAAP basis in the fourth quarter of 2008 was 33.5% of revenues.

Cash and cash investments at the end of the quarter were $97.8 million.

"In 2008 we continued to achieve excellent growth based on the strong foundation we've been building for several years" Said Ira Palti, President and CEO of Ceragon. The underlying drivers of our business, such as growth in mobile data usage and mobile subscriber growth, are part of long term trends expected to continue for several years. Meanwhile, we lack short term visibility as customers focus on maintaining flexibility, reducing inventory and conserving cash in response to the spreading global financial crisis. We will manage through this period by staying close to our customers, capitalizing on our strong position, and preparing to take the company to the next level once economic conditions improve."

Ceragon Networks Ltd. (Nasdaq: CRNT)

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