Indian telecom market accounts for 9% of Ceragon Networks first quarter revenue

Telecom Lead India: Ceragon Networks, a wireless backhaul
solutions provider, said Indian telecom market has contributed 9 percent of its
total revenue in the first quarter of 2012.

The company did not share the growth in Indian mobile

Total global revenues for the first quarter of 2012 reached $117.8
million, up 17 percent from $100.3 million for the first quarter of 2011.

(Please see the chart for geographical breakdown)

Net loss for the first quarter of 2012 was $3.5 million compared
to net loss of $21.4 million in the first quarter of 2011.

Gross margin in the first quarter of 2012 was 31.4 percent
of revenues.

Operating loss in the first quarter of 2012 was $2.3 million.

Cash and cash investments at the end of the quarter were $49.5

Strength in Africa and Latin America drove revenues in Q1
as expected. We are continuing to penetrate these markets according to our
plan, adding new customers as well as increasing sales to existing ones. During
Q1, our sales in North America grew sequentially and we expanded our market
share in India, another indication of our strong execution,” said Ira Palti, president
and CEO of Ceragon.

“Most of the pickup in bookings occurred during April,
which we expect will bring the book to bill ratio above 1:1 in Q2 and increases
our confidence for the outlook for the second half of the year,” Palti

Ceragon Networks is on track to continue improving gross
margin in the second half of 2012 after extending our design-to-cost
capabilities to the long haul product. The company will have a revenue run rate
of around $130 million per quarter with gross margin in the mid 30’s and a
non-GAAP operating margin of around 8 percent.

Geographical breakdown, first quarter of 2012:

Europe:               19

Africa:                 27 percent

North America:    12 percent

Latin America:     26 percent

India:                    9 percent

APAC:                   7 percent

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