Ceragon Networks today announced its strategy to eliminate jobs by 14 percent immediately to return the wireless hauling company to profit.
Ceragon Networks aims to reach profitability in the second quarter of 2015. The company’s revenues for the third quarter of 2014 rose 8 percent to $99 million, while net loss was $5.6 million in Q3 2014 against net loss of $10.4 million in Q3 2013.
Ira Palti, CEO of Ceragon, said: “Steps are being taken to manage the revenue mix more carefully, and to seek revised pricing, payment and other terms on new orders in certain situations. We are encouraged by initial discussions with our customers in this regard.”
Ceragon Networks says the company is receiving positive response for its IP-20 platform and that will improve its geographic revenue mix. Ceragon Networks’ third quarter revenue came from Europe: 17 percent, Africa: 17 percent, North America: 7 percent, Latin America: 24 percent, India: 26 percent and APAC: 9 percent.
The company will complete expense reduction by the end of 2014 and expects to record a charge of approximately $10-$12 million in the fourth quarter, of which approximately $5-$6 million will be cash, primarily related to severance, which will be paid mainly during the first quarter of 2015.
In the fourth quarter of 2014, Ceragon expects to record additional financial expense of nearly $19 million due to the continued Venezuelan government policy that limits our customers’ ability to pay such receivables in U.S. dollars.