Ceragon Networks revenue up by 77 percent in Q411

By TelecomLead Team: Wireless backhaul specialist Ceragon Networks has posted revenues of $118.5 million in the fourth quarter of
2011, increased by 77 percent from $67.0 million for the fourth
quarter of 2010, and up 2 percent from $116.1 million in the third
quarter of 2011.

For the whole 2011, revenues stood at $445.3 million, up 78
percent from $249.9 million in 2010. Net loss on for 2011 stood at
$53.7 million. Net income for the year 2010 was $14.1
million or $0.40 per basic share and $0.38 per diluted

However, the company posted net loss $8.2 million for
the fourth quarter of 2011, against net income of $3.8 million in the
fourth quarter of 2010, or$0.11 per basic share.

For the fourth-quarter, revenue from the European region was
24 percent of the total revenue earned by the company. While revenue share from
African and Latin American region stood at 21 percent.

Indian revenue share accounted at 10 percent, APAC at 10
percent and North America recorded at 8 percent.

Gross margin for the fourth quarter of 2011 was 29.0 percent
of revenues. Operating loss was $7.0 million. Cash and cash investments at
the end of the quarter were $49.5 million.

The company expects similar revenues in Q1, as macroeconomic
and political concerns weigh on operators’ plans in several regions.

The company said that it has recently added new customers
and, with other tangible reasons to expect bookings to increase, its outlook
for the year continues to call for moderate growth of 10-12 percent for 2012.

“As a result of our continued strong execution, we
reported higher revenues, gross margin and profitability for the fourth
quarter,” said Ira Palti, president and CEO of Ceragon.

With improvement as the year progresses, our goal is to
exit 2012 with gross margin in the mid 30’s and a non-GAAP operating margin of
8 percent-9 percent,” Ira Palti added.

Recently, Ceragon
Networks received orders for additional microwave systems and services
from Tele2 Russia, a telecommunications company in Europe.

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