Ceragon Networks Reports Fourth Quarter And Full Year 2013 Financial Results - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Ceragon Networks Reports Fourth Quarter And Full Year 2013 Financial Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Ceragon Networks Ltd.

PARAMUS, N.J., Feb. 13, 2014 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 high-capacity wireless hauling specialist today reported results for the fourth quarter and full year of 2013 which ended December 31, 2013.

Revenues for the fourth quarter of 2013 were $89.5 million, down 16% from $106.8 million for the fourth quarter of 2012, and down 3% from $92.1 million in the third quarter of 2013.

Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the fourth quarter of 2013 was $(15.4) million or $(0.35) per basic share and diluted share, compared to net loss of $(8.4) million in the fourth quarter of 2012, or $(0.23) per basic share and diluted share.

On a non-GAAP basis, net loss for the fourth quarter of 2013 was $(4.1) million, or $(0.09) per basic and diluted share, excluding (a) $0.9 million of equity-based compensation expenses, (b) $0.6 million amortization of intangible assets, (c) $12.6 million restructuring and other expenses associated with the Q4 2013 restructuring, (d) $7.5 million primarily related to the expiration of certain pre-acquisition indirect tax exposures, (e) $1.3 million non-recurring adjustment of pension liabilities, and (f) $3.3 million of financial expenses related to actions taken in order to expatriate cash from Argentina.  Non-GAAP net income for the fourth quarter of 2012 was $0.4 million, or $0.01 per basic share and diluted share, with 16% fewer weighted average shares outstanding (Please refer to the accompanying financial tables for reconciliation of GAAP financial information to non-GAAP.)

Revenues for the full year of 2013 were $361.8 million, down 19% from $446.7 million in 2012. Net loss on a GAAP basis for 2013 was $(47.5) million or $(1.23) per basic share and diluted share. Net loss for the year 2012 was $(23.4) million or $(0.64) per basic share and diluted share.

On a non-GAAP basis, net loss for 2013 was $(20.0) million or $(0.52) per basic share and diluted share, excluding (a) $3.7 million of equity-based compensation expenses, (b) $2.5 million amortization of intangible assets,  (c) $0.5 million of inventory step-up,  (d) $15.4 million restructuring and other expenses associated with Q4 2013 restructuring, (e) $6.4 million related to the expiration of certain pre-acquisition indirect tax exposures, net of $1.3 million of interest accretion during the year, (f) $1.3 million non-recurring adjustment of pension liabilities, (g) $3.1 million non-recurring currency devaluation in Venezuela, (h) $3.3 million financial expenses related to actions taken in order to expatriate cash from Argentina, and (i) $4.0 million non-recurring adjustment of valuation allowance on tax assets. Net income for the year 2012 was $0.1 million, or $0.00 per basic share and diluted share.

Gross margin on a GAAP basis in the fourth quarter of 2013 was 31.0% of revenues. Gross margin on a non-GAAP basis in the fourth quarter was 32.1% of revenues.

Operating loss on a GAAP basis in the fourth quarter of 2013 was ($9.6) million. On a non-GAAP basis operating loss in the fourth quarter of 2013 was $(1.6) million.

Cash and cash investments at the end of the quarter were $52.3 million.

"We ended 2013 as we expected, with Latin America continuing to be the strongest region," said Ira Palti, President and CEO of Ceragon. "The restructuring in Q4 was completed swiftly, the organization is operating efficiently, and the balance of our new product portfolio will be shipping this quarter as planned.

"The excellent feedback we are receiving from customers is validating our strategy, our technology and our time-to-market leadership.  With the restructuring behind us, and our new products garnering attention from existing customers as well as opening doors with important new ones, we are entering 2014 well-positioned to benefit as overall demand improves, which we expect to begin gradually in the second half of the year," concluded Mr. Palti.

 Supplemental quarterly revenue breakouts:

Geographical breakdown, fourth quarter of 2013:

  • Europe: 20%    
  • Africa:  11%                
  • North America: 10%
  • Latin America:  40%
  • India: 8%
  • APAC: 11%

Geographical breakdown, full year 2013:

  • Europe: 18%    
  • Africa:  20%                
  • North America: 9%
  • Latin America: 34%
  • India: 8%
  • APAC: 11%

A conference call to discuss the results will begin at 9:00 a.m. ET. Investors are invited to join the Company's teleconference by calling USA: (800) 230-1085 or International: +1 (612) 332-0107, from 8:50 a.m. ET. The call-in lines will be available on a first-come, first-serve basis.

Investors can also listen to the call live via the Internet by accessing Ceragon Networks' website at the investors' page: http://www.ceragon.com/about-us/ceragon/investor-relations selecting the webcast link, and following the registration instructions.

If you are unable to join us live, the replay numbers are: USA: (800) 475-6701 or International +1 (320) 365-3844 Access Code: 314921. A replay of both the call and the webcast will be available through March 13, 2014.

About Ceragon Networks Ltd.

Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 high-capacity wireless hauling specialist.  We provide innovative, flexible and cost-effective wireless backhaul and fronthaul solutions that enable mobile operators and other wired/wireless service providers to deliver 2G/3G, 4G/LTE and other broadband services to their subscribers.  Ceragon's high-capacity solutions use microwave technology to transfer voice and data traffic, while maximizing bandwidth efficiency, to deliver more capacity over longer distances under any deployment scenario. Based on our extensive global experience, Ceragon delivers turnkey solutions that support service provider profitability at every stage of the network lifecycle enabling faster time to revenue, cost-effective operation and simple migration to all-IP networks.  As the demand for data pushes the need for ever-increasing capacity, Ceragon is committed to serve the market with unmatched technology and innovation, ensuring effective solutions for the evolving needs of the marketplace. Our solutions are deployed by more than 430 service providers in over 130 countries.

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON® is a trademark of Ceragon Networks Ltd., registered in various countries. Other names mentioned are owned by their respective holders.

This press release may contain statements concerning Ceragon's future prospects that are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are  subject to risks and uncertainties that may cause actual results to differ materially, including  risks associated with doing business in Latin America, including currency export controls and recent economic concerns, the risks relating to the concentration of our business in developing nations, the risk of significant expenses in connection with potential contingent tax liability associated with Nera's prior operations or facilities, risks associated with increased working capital needs, and other risks and uncertainties detailed from time to time in Ceragon's Annual Report on Form 20-F and Ceragon's other filings with the Securities and Exchange Commission, and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.

Investors:



Aviram Steinhart

or

Claudia Gatlin

+972 3 5431 443


+1 201 853 0228

avirams@ceragon.com


claudiag@ceragon.com




Media:



Yoel Knoll



+972 3 5431 32 or



+1 201 853 0271



yoelk@ceragon.com



 



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data)

(Unaudited)




Three months ended

December 31


Year ended

December 31,



2013


2012


2013


2012



















Revenues


$       89,492


$     106,849


$     361,772


$     446,651

Cost of revenues


61,751


71,802


249,543


308,354










Gross profit


27,741


35,047


112,229


138,297










Operating expenses:









Research and development, net


10,409


12,007


42,962


47,487

Selling and marketing


17,106


18,564


67,743


77,326

General and administrative

Restructuring costs


         8,089

           9,345


         6,925

           4,608


         26,757

           9,345


         27,519

           4,608

Other income


(7,657)


-


(7,657)


-










Total operating expenses


$     37,292


$     42,104


$    139,150


$    156,940










Operating loss


9,551


7,058


26,921


18,643










Financial expenses, net


5,162


938


14,018


3,547










Loss before taxes


14,713


7,995


40,939


22,190










Taxes on income


664


405


6,539


1,201










Net loss


$       15,377


$         8,400


$      47,478


$      23,391



















Basic and diluted net loss per share


$         0.35


$        0.23


$        1.23


$        0.64










Weighted average number of shares used in computing basic and diluted net loss per share


 

 

43,639,777


 

 

36,565,168


 

 

38,519,606


 

 

36,457,989










 

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands)

(Unaudited)




December 31,

2013


December 31,
2012

ASSETS










CURRENT ASSETS:





Cash and cash equivalents


$    42,407


$    47,099

Short-term bank deposits


446


422

Marketable securities


5,499


-

Trade receivables, net


131,166


149,120

Deferred taxes, net


7,198


8,589

Other accounts receivable and prepaid expenses


34,205


38,743

Inventories


64,239


65,554

Total current assets


285,160


309,527






NON-CURRENT ASSETS:





Marketable securities


3,985


4,068

Deferred tax assets, net


6,542


9,140

   Severance pay and pension funds


7,065


7,163

   Property and equipment, net


35,245


33,642

   Intangible assets, net


7,213


9,809

Goodwill


14,935


15,283

Other non-current assets


5,826


4,964








80,811


84,069

Total assets


$     365,971


$  393,596

 

LIABILITIES AND SHAREHOLDERS' EQUITY





CURRENT LIABILITIES:





Short term loan, including current maturities of long term bank loan


$       46,922


$    25,232

Trade payables


77,979


102,079

Deferred revenues


7,968


16,719

Other accounts payable and accrued expenses


45,526


36,090

Total current liabilities


178,395


180,120

 

LONG-TERM LIABILITIES





Long term bank loan, net of current maturities


10,304


18,536

Accrued severance pay and pension


13,635


12,311

Other long term payables


28,559


38,920



52,498


69,767

SHAREHOLDERS' EQUITY:





Share capital:





    Ordinary shares


141


98

Additional paid-in capital


357,989


318,106

Treasury shares at cost


(20,091)


(20,091)

Other comprehensive loss


(1,569)


(490)

Accumulated deficits


(201,392)


(153,914)






Total shareholders' equity


135,078


143,709






Total liabilities and shareholders' equity


$    365,971


$    393,596

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(U.S. dollars, in thousands)

(Unaudited)



Three months ended

December 31,


Year ended

December 31,


2013


2012


2013


2012

Cash flow from operating activities:








Net loss

$   (15,377)


$   (8,400)


$   (47,478)


$   (23,391)

Adjustments to reconcile net loss to net cash used in operating activities:








Depreciation and amortization

3,989


3,802


15,645


15,030

Stock-based compensation expense

1,048


1,215


3,822


5,460

Write off of property and equipment

2,559


-


2,559


-

Capital loss from marketable securities

2,108


-


2,108


-

Decrease (Increase) in trade and other receivables, net

(2,062)


27,768


18,272


(11,753)

Decrease (Increase) in inventory, net of write off

(7,092)


(1,599)


401


27,210

Increase (decrease) in trade payables and accrued liabilities

(1,975)


274


(21,044)


17,712

Decrease in deferred revenues

(533)


(5,170)


(8,751)


(21,589)

Decrease (increase) in deferred tax asset, net

(171)


(324)


3,572


(743)

Other adjustments

1,404


(481)


1,382


(727)

Net cash provided by (used in) operating activities

$  (16,102)


$  17,085


$  (29,512)


$  7,209

Cash flow from investing activities:








Purchase of property and equipment ,net

(4,717)


(4,317)


(16,423)


(14,530)

Investment in short and long-term bank deposit

(424)


-


(679)


(1,266)

Proceeds from maturities of short and long-term bank deposits

299


-


635


7,920

Investment in available for sale marketable securities

(7,867)


-


(7,867)


(64)

Proceeds from sales of available for sale marketable securities

212


-


513


9,781

Net cash provided by (used in) investing activities

$  (12,497)


$  (4,317)


$  (23,821)


$  1,841









Cash flow from financing activities:








Proceeds from exercise of options

-


2


1,145


736

Proceeds from issuance of shares, net

34,957


-


34,957


-

Proceeds from financial institutions, net

(2,300)


2,000


23,690


27,000

Repayments of bank loans

(2,058)


(12,058)


(10,232)


(18,232)

Net cash provided by (used in) financing activities

 

$  30,599


 

$  (10,056)


 

$  49,560


 

$  9,504









Translation adjustments on cash and cash equivalents

 

$ (175)


 

$ 36


 

$  (919)


 

$  (446)

Increase (Decrease) in cash and cash equivalents

$  1,825


$  2,748


$  (4,692)


$  18,108

Cash and cash equivalents at the beginning of the period

40,582


44,351


47,099


28,991

Cash and cash equivalents at the end of the period

$  42,407


$  47,099


$  42,407


$  47,099









 

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands, except share and per share data)

(Unaudited)




  Three months ended December 31,



2013


2012




GAAP (as reported)


Adjustments


Non-GAAP


Non-GAAP












Revenues


$    89,492




$    89,492


$   106,849


Cost of revenues


61,751


(a)     990


60,761


71,307












Gross profit


27,741




28,731


35,542












Operating expenses:










Research and development, net


10,409


(b)    1,822


8,587


10,539


Selling and marketing


17,106


(c)    1,219


15,887


17,344


General and administrative


8,089


(d)    2,252


5,837


5,895


Restructuring costs


9,345


9,345


-


-


Other income


(7,657)


(e)  (7,657)


-


-












Total operating expenses


$    37,292




$ 30,311


$ 33,778












Operating profit (loss)


(9,551)




(1,580)


1,764


Financial expenses, net


5,162


(f)    3,320


1,842


938












Income (loss) before taxes


(14,713)




(3,422)


826












Taxes on income


664




664


405












Net income (loss)


$    (15,377)




$     (4,086)


$     421












Basic net earnings (loss) per share


$      (0.35)




$      (0.09)


$      0.01












Diluted net earnings (loss) per share


$      (0.35)




$      (0.09)


$      0.01












Weighted average number of shares used in computing basic net earnings (loss) per share


43,639,777




43,639,777


36,565,168












Weighted average number of shares used in computing diluted net earnings (loss) per share


43,639,777




43,639,777


36,641,920












Total adjustments




11,291
















(a) Cost of revenues includes $0.3 million of amortization of intangible assets, $40 thousand of stock based compensation expenses, $0.2 million of changes in pre-acquisition indirect tax positions and $0.4 million of the Q4 2013 restructuring plan related costs in the three months ended December 31, 2013.

(b) Research and development expenses include $1.6 million of the Q4 2013 restructuring related costs and $0.3 million of stock based compensation expenses in the three months ended December 31, 2013.

(c) Selling and marketing expenses includes $0.3 million of amortization of intangible assets, $0.6 million of the Q4 2013 restructuring related costs and $0.2 million of stock based compensation expenses in the three months ended December 31, 2013.

(d) General and administrative expenses include $0.6 million of the Q4 2013 restructuring related costs, $1.3 million of non-recurring adjustment of pension liabilities in Norway as a result of a change in the official Norwegian data regarding estimated life expectancy and $0.4 million of stock based compensation expenses in the three months ended December 31, 2013.

(e) Other income includes $7.7 million related to the expiration of certain pre-acquisition indirect tax exposures during the three months ended December 31, 2013.

(f) Financial expenses include $3.3 million related to actions taken in order to expatriate cash from Argentina in the three months ended December 31, 2013.


 

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

(U.S. dollars in thousands, except share and per share data)

(Unaudited)




Year ended December 31,



2013


2012



GAAP (as reported)


Adjustments


Non-GAAP


Non-GAAP










Revenues


$   361,772




$   361,772


$   446,651

Cost of revenues


249,543


(a)    3,792


245,751


299,781

Gross profit


112,229




116,021


146,870










Operating expenses:









Research and development, net


42,962


(b)     3,810


39,152


44,584

Selling and marketing


67,743


(c)     3,957


63,786


72,306

General and administrative


26,757


(d)     3,768


22,989


25,167

Restructuring costs


9,345


9,345


-


-

Other income


(7,657)


(e)    (7,657)


-


-










Total operating expenses


$   139,150




$   125,927


$   142,057










Operating profit (loss)


(26,921)




(9,906)


4,813

Financial expenses, net


14,018


(f)      6,453


7,565


3,547










Income (loss) before taxes


(40,939)




(17,471)


1,266










Taxes on income


6,539


(g)     4,037


2,502


1,201










Net income (loss)


$   (47,478)




$   (19,973)


$   65










Basic net earnings (loss) per share


$     (1.23)




$     (0.52)


$     0.00










Diluted net earnings (loss) per share


$     (1.23)




$     (0.52)


$     0.00










Weighted average number of shares used in computing basic net earnings (loss)  per share


38,519,606




38,519,606


36,457,989










Weighted average number of shares used in computing diluted net earnings (loss)  per share


38,519,606




38,519,606


37,092,887










Total adjustments




27,505























(a) Cost of revenues includes $1.2 million of amortization of intangible assets, $0.5 million of inventory step-up, $1.3 million of changes in pre-acquisition indirect tax positions, $0.2 million of stock based compensation expenses and $0.7 million of the Q4 2013 restructuring related costs in the year ended December 31, 2013.

(b) Research and development expenses include $2.8 million of the Q4 2013 restructuring related costs and $1.0 million of stock based compensation expenses in the year ended December 31, 2013.

(c) Selling and marketing expenses includes $1.3 million of amortization of intangible assets, $1.3 million of the Q4 2013 restructuring related costs and $1.3 million of stock based compensation expenses in the year ended December 31, 2013.

(d) General and administrative expenses include $1.3 million of the Q4 2013 restructuring related costs, $1.3 million of non-recurring adjustment of pension liabilities in Norway as a result of a change in the official Norwegian data regarding estimated life expectancy and $1.2 million of stock based compensation expenses, in the year ended December 31, 2013.

(e) Other income includes $7.7 million related to the expiration of certain pre-acquisition indirect tax exposures during the year ended December 31, 2013.

(f) Financial expenses include $3.1 million non-recurring currency devaluation in Venezuela and $3.3 million charge related to actions taken in order to expatriate cash from Argentina in the year ended December 31, 2013.

(g) Taxes on income include $4.0 million non-recurring adjustment of valuation allowance on tax assets in the year ended December 31, 2013.

 

RECONCILIATION BETWEEN REPORTED AND NON-GAAP

OPERATING PROFIT (LOSS)

(U.S. dollars in thousands)

(Unaudited)









Three months ended



Year ended



December 31, 2013







Reported GAAP net operating loss


(9,551)



(26,921)







Stock based compensation expenses


932



3,706

Amortization of purchased intangible assets


632



2,534

Inventory step up


-



459

Restructuring expenses


9,345



9,345

Q4 2013 restructuring related costs


3,232



6,076

Expiration of certain pre-acquisition indirect tax exposures,
net of interest accretion


(7,461)



(6,396)

Non-recurring adjustment of pension liabilities


1,291



1,291







Non-GAAP net operating loss


(1,580)



(9,906)








 

 

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
General information or questions:
kxinfo@kxnet.com

News:
Bismarck:
Phone: 701-223-9197
News Fax: 701-223-1985

News:
Minot:
Phone: 701-852-2104
News Fax: 701-838-1050
All content © Copyright 2000 - 2014 WorldNow and KXNET. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.