Israeli wireless backhaul solutions company Ceragon Networks Ltd. (Nasdaq: CRNT) has reported first quarter revenue of $83.3 million, up 9.5% from the first quarter of 2017, and down 3.9% from the fourth quarter of 2017. The company's gross margin in the quarter was 33.1%, which compares with 29.3% in the first quarter of 2017 and 33.6% in the fourth quarter of 2017.
Ceragon posted a net profit of $2.1 million, or $0.03 per diluted share for the first quarter of 2018, which compares with a net loss for the first quarter of 2017 of $0.1 million. Net profit for the fourth quarter of 2017 was $7.2 million or $0.09 per diluted share.
On a non-GAAP basis, gross margin was 33.2%, operating profit was $5.7 million, and net profit was $3.0 million, or $0.04 per diluted share. Analysts expected earnings per share of 0.04 on revenue of $80 million.
Ceragon had cash and cash equivalents of $26.0 million at the end of the first quarter of 2018, compared with $25.9 million at the end of 2017.
"We are beginning 2018 with a strong quarter in all respects," said Ceragon president and CEO Ira Palti. "We had strong bookings in Q1, with particular strength coming from India. Revenue increased 9.5% year over year, and we now have enough visibility to raise our quarterly run rate expectations to $80 to $85 million during the balance of this year. We won several important new projects in Q1 and our objective is to continue to gradually gain market share. Our financial goal is to make 2018 the fourth consecutive year of increasing net income, despite facing some challenges with factors we can't control such as currency headwinds and shortages of passive components."
Published by Globes [online], Israel business news - www.globes-online.com - on May 7, 2018
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