Ceragon Networks Ltd. (Nasdaq: CRNT) announced on Friday that it had been selected by Indian telecommunications company Bharti Airtel (NSE: BHARTIARTL) to provide products and services for additional 4G network expansions beginning first quarter of 2020.
Ceragon says that Airtel is looking to increase its network capacity to address growing demand for broadband amidst sharp rise in data consumption across India. Airtel is also looking to increase 4G network capacity in urban areas and expand its coverage in rural regions as well as prepare for its future evolution to 5G. The announcement states that Ceragon is working closely with Airtel to pursue rapid deployment of its microwave radios, as best it can, considering India's recent temporary lockdown.
"Ceragon's proven performance and reliability continue to make it's multicore all-outdoor solutions and network rollout services the ideal, go-to-choice for operators worldwide who are looking to densify and expand their 4G networks, as well as evolve to 5G," said Ira Palti, president and CEO of Ceragon. "The orders received are partially reflected in our Q1 results. Ceragon is committed to supporting Airtel during these challenging times, and as it continues to implement its long-term network development plan to gain market-share across India."
Ceragon recently announced that its first quarter revenue would be in the range of $55.5 million to $57 million, which is below the consensus estimate of $64 million, because of the lockdowns imposed to combat the coronavirus pandemic.
Also on Friday, Ceragon filed a shelf prospectus with the US Securities and Exchange Commission to raise $150 million in stock, rights, or debt. This is an extension of a previous shelf prospectus, and as far as is known the company has no concrete intention of making an offering at this stage. Ceragon's share price rose 4.42% on Friday to $2.36, giving the company a market cap of $191 million.
Published by Globes, Israel business news - en.globes.co.il - on April 26, 2020
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