CRNT

[la-onda]

Profile:
Ceragon Networks, Ltd. engages in the design, development, manufacture, and sale of point-to-point wireless backhaul solutions. The company's products include FibeAir IP-MAX, a wireless native Ethernet solution for providing IP-based services in WiMAX, private, and metropolitan area networks; FibeAir Gigamax system that provides full rate Gigabit Ethernet transmission; IP-MAX-MS that allows cellular networks to migrate from TDM interfaces to IP-based networks; and FibeAir 1500P system, which provides from 155 to 622 Mbps of transmission capacity for SDH/SONET interfaces. It also offers FibeAir 640P that offers cellular operators a migration path from mid-capacity PDH/Ethernet to high-capacity PDH/Ethernet network access; FibeAir 1500HP, a long haul wireless system that offers embedded space diversity with dual receiver architecture; and FibeAir 3200T, which provides wireless high-capacity data transmission over long distances. In addition, the company offers end-to-end network management solutions, including CeraView, an SNMP-based element management system that enables the operator to perform element configuration, RF and SDH performance monitoring, remote diagnostics, and alarm reports; and PolyView, an NMS server that could be used to update and monitor network topology status, provide statistical and inventory reports, define end-to-end traffic trails, download software, and configure elements in the network. Ceragon Networks' products are primarily used by cellular operators, and by organizations and enterprises. The company sells its products through a direct sales force, systems integrators, distributors, and original equipment manufacturers in North America, Europe, Middle East, Africa, Latin America, and the Asia-Pacific

Latest news:
1)
CRNT: Banc of Amer Starts @ Buy; Sets Tgt @ $18; Analyst Notes
Monday , November 19, 2007 08:40ET
Issuer: Ceragon Networks Ltd. (NasdaqNM: CRNT)
Analyst Firm:  Banc of America
Ratings Action: INITIATE
Current Rating: Buy
Target Price Action: INITIATE
Target Price: $18.00
Analyst Comments: The firm believes CRNT is well positioned to benefit from increased wireless traffic growth, which should enable the company to outgrow peers and increase margins. CRNT's core market of high capacity wireless backhaul (90% of revenue) is expected to grow from $1.5B in 2006 to $6.3B in 2010, a CAGR of 43%. Growth in wireless subs and increased proliferation of 3G services will likely drive big capacity increases. The firm thinks their
three-year sales growth view of 20-25% should prove conservative.

2)
Ceragon Networks announces Q3 2007 results
Tuesday , October 23, 2007 04:53ET

Oct 23, 2007 (M2 EQUITYBITES via COMTEX) -- Ceragon Networks Ltd (Nasdaq:CRNT; TASE:CRNT), a provider of high-capacity wireless backhaul solutions, on 22 October reported results for the third quarter of 2007 ended 30 September 2007. Revenues for the quarter totalled USD44.5m, a 46% increase over revenues of USD30.5m in the third quarter of the prior year, and a 19% increase over USD37.3m in the immediate preceding quarter of 2007. For the first nine months of 2007 revenues were USD115.7m, an increase over USD75.5m in the first nine months of the prior year. GAAP net income for the quarter was USD3.7m or USD0.12 per basic share and USD0.11 per diluted share, as compared with a net income of USD1.5m or USD0.06 per basic and diluted share in the corresponding quarter of the prior year. For the first nine months of 2007 GAAP net income was USD8.7m or USD0.31 per basic share and USD0.28 per diluted share. This was in comparison with a net income of USD2.7m or USD0.10 and USD0.09 per basic and diluted share, respectively, in the corresponding period of 2006. The company reported cash and cash equivalents, short and long-term bank deposits and marketable securities totalling USD37.1m at the end of 30 September 2007.

3)
Seeking Alpha:
Ceragon's Eastern Momentum

As mentioned earlier, I am returning Ceragon to my portfolio, after it emerged bruised and battered from its recent offering, and had to make do with a price of $13.50 per share as opposed to the high of almost $22 it reached not so long ago. I feel that all the talk about Ceragon being harmed by Sprint Nextel Corp's (S) decision to scrap its WiMAX roll-out is far-fetched. I am not sure at all whether this project even featured in Ceragon's guidance for 2008 and if it did then it probably was be a nominal sum.

There is one important fact to bear in mind here. Ceragon provides wireless backhaul equipment in the US to companies that build telecommunications relay stations and lease these to telephony companies. It does not concern itself with the type of communications these stations transmit, be it WiMAX, 2G, 2.5G, 3G or 4G. It is highly likely that Ceragon will still be in the picture should Sprint decide to upgrade its existing networks, instead of rolling out a new WiMAX network. It is my belief that the launch and runaway success of Apple's latest handset, the iPhone, has had a positive and immediate impact on Ceragon's US business in a far greater measure than the much-vaunted WiMAX project, since this revolutionary handset and its counterparts have prompted the telecommunications companies to upgrade their networks. In addition, Ceragon is also enjoying strong growth in markets in the East, most notably India, where millions of cellular subscribers join local operators every month, requiring the company to deploy tens of thousands of relay stations across this massive country.

[David Randolph]

A lot has happened since your post on CRNT la-onda, I'm just leaving an updated chart for now:

[la-onda]

Shares of Ceragon Networks Ltd. (CRNT) were higher on Monday after the Company reported results for the second quarter which ended June 30, 2008. Revenues for the second quarter of 2008 were $55.2 million, up 47.9% from $37.3 million for the second quarter of 2007 and 17%
from $47.2 million in the first quarter of 2008. Non-GAAP net income was $0.13 per diluted share, compared to net income of $0.12 per diluted share for the same period in 2007. Cash and cash investments at the end of the quarter were $108 million. Mr. Ira Palti, President and CEO of Ceragon, explained in a conference call today, "We flew past the top-end of our target range in Q2, reaching al all-time record of $55 million. Bookings remained very strong. We continue to benefit from the growing worldwide demand for high-capacity technology, and we
are seeing a global migration earlier than expected." "North America continues to be the only weak spot. We believe that this will continue to be weak for the balance of 2008. In 2009, we expect improvements from the growth in data usage from the iPhone launch and similar devices. Furthermore, once the merger of Sprint and Clearwire receive regulatory clearances, this could provide a boost to demand next year."

Mr. Palti added, "With strong demand on a global basis, execution remains the critical success factor. We continue to emphasize technological innovation, as well as product cost production with stringent expense control." The CFO of Ceragon, Mr. Tali Idan, commented, "The Asia-Pacific region continued to grow rapidly, accounting for 57% of total revenue for the quarter. India accounted for 22% of revenue and Latin America increased to 15%. North America accounted for the remaining 6%. We had two 10% customers, with one accounting for almost 37% of total revenue." "Our gross margin in Q2 was 34%. Our operating margin was 7.8%, reflecting the lower gross margin. We expect our gross margin to return to the 35%-36% range in Q4 and beyond." Mr. Idan added, "If the dollar remains at current levels, it will have a negative impact of $600,000 in each of Q3 and Q4. We are not hedged for this impact, but we are looking for ways to mitigate the impact. If we see no improvement in the dollar, it will be quite challenging to reach our goal of 10% operating margin by the end of the year." He concluded, "We continue to have a backlog that is more than one quarter ahead. We expect Q3 revenues to be in the range of $56 million-$60 million. For FY08, we are raising our revenue growth target to 35%+ over last year's revenues."