"2010 was a very strong year, which positioned us for the next leap forward," said Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) president and CEO Ira Palti, after the wireless backhaul solutions provider published good fourth quarter and full-year 2010 results today.
Ceragon's full-year revenue rose 36% to a record $249.9 million from $184.2 million in 2009. Fourth quarter revenue rose 26% to $67 million from $53.4 million for the corresponding quarter. The company beat the analysts' revenue consensus estimate of $64.2 million.
42% of fourth quarter revenue came from the Asia-Pacific region, 34% came from Europe, Africa, and the Middle East, 16% from North America, and 8% from Latin America.
Palti said, "All regions were strong, and we grew in all of them."
Ceragon's GAAP-based net profit rose $14.1 million ($0.38 per share) in 2010 from $3.7 million in 2009. Non-GAAP net profit rose to $20.2 million ($0.55 per share) from $7.3 million. The GAAP figures excludes costs related to the acquisition of Norway's Nera Networks AS in the fourth quarter.
Fourth quarter non-GAAP net profit rose to $6.1 million ($0.17 per share) from $3.4 million for the corresponding quarter. The company beat the analysts' earnings per share consensus of $0.15.
Fourth quarter cash flow from operations totaled $4.9 million, and the company had $81.5 million in cash and cash investments at the end of the year. This amount will shrink when the acquisition of Nera for $48.5 million is closed.
Palti said, "We are excited to be entering 2011 with strong momentum in our base business. In addition, we continue to believe that after a period of integration during 2011, the Nera acquisition will enable us to realize a substantial increase in revenue and earning power in 2012."
Ceragon's share price fell 5.3% at the opening on Nasdaq to $12.32, giving a market cap of $422 million, after rising 1.8% on the TASE to NIS 46.82.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2011
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