FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Section 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
For the month of October 2003
CERAGON NETWORKS LTD.
(Translation of registrant’s name into English)
24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registration in connection with Rule 12g3(b): 82 - _________________
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: October 30, 2003 |
CERAGON NETWORKS LTD. BY: /S/ Shraga Katz —————————————— Shraga Katz President |
| Exhibit Description | ||
| Press Release: Ceragon Networks Reports Third Quarter 2003 Financial Results | ||
Ceragon Networks® Reports Third Quarter 2003 Financial Results
TEL AVIV, Israel, October 30, 2003 - Ceragon Networks Ltd. (NASDAQ: CRNT), www.ceragon.com, a global provider of high-capacity broadband wireless systems, today reported results for the third quarter, which ended September 30, 2003. The third quarter of 2003 was Ceragon’s eighth consecutive quarter of revenue growth.
Revenues for the quarter were $9.1 million, up from $5.0 million for the third quarter of 2002 and from $8.1 million for the second quarter of 2003. This represents an increase of 80.6% as compared to the third quarter of 2002, and an increase of 12.5% as compared to the second quarter of 2003.
Gross profit for the third quarter of 2003 increased to $3.7 million, or 40.9% of revenues. This compares to gross profit for the third quarter of 2002 of $1.5 million, or 30.5% of revenues, and to gross profit for the second quarter of 2003 of $3.2 million, or 39.4% of revenues.
The net loss computed in accordance with U.S. GAAP for the third quarter of 2003 improved for the eighth consecutive quarter, to $(0.7) million, or $(0.03) basic and diluted net loss per ordinary share. This compares to net loss for the third quarter of 2002 of $(3.3) million, or $(0.15) basic and diluted net loss per ordinary share, and to net loss for the second quarter of 2003 of $(1.2) million, or $(0.05) basic and diluted net loss per ordinary share. The company ended the third quarter of 2003 with $39.3 million in cash and liquid investments.
“Ceragon has continued on the course we set two years ago, gaining significant market share. We’ve recorded eight consecutive quarters of growth and just about tripled our quarterly revenues, while at the same time showing impressive gross margins” said Shraga Katz, president and CEO, Ceragon Networks Ltd. “I am confident that 2003 will be a record year for Ceragon and I believe that 2004 will be even better.”
A conference call discussing Ceragon’s results for the second quarter of 2003 will take place today, October 30, 2003, at 11:00 a.m. (EDT). Details can be found on Ceragon’s website at www.ceragon.com. The live call and its replay will be accessible on Ceragon’s website. The replay will be available through November 3, 2003.
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Ceragon Reports Third Quarter 2003 Results - 2
About Ceragon Networks
Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT),
a pacesetter in broadband wireless networking systems, enables rapid and cost-effective
high-capacity network connectivity for mobile cellular infrastructure, fixed networks and
private networks. Ceragon’s modular FibeAir™ product family operates across
multiple frequencies from 6 to 38 GHz, supports integrated high-capacity services from 155
to 622 Mbps over SONET/SDH, ATM and IP networks, and offers innovative built-in add/drop
multiplexing and encryption functionality to meet the growing demand for value-added
broadband services. Ceragon’s FibeAir product family complies with North American and
international standards and is installed with over 100 customers in more than 45
countries. More information is available at www.ceragon.com.
Ceragon Networks,® CeraView,® and the FibeAir® design mark are registered trademarks of Ceragon Networks Ltd., and Ceragon™, FibeAir™, PolyView™, ConfigAir™, CeraMon™, EtherAir™, QuickAir™, QuickAir Partner Program™, QuickAir Partner Certification Program™, QuickAir Partner Zone™, EncryptAir™ and Microwave Fiber™ are trademarks of Ceragon Networks Ltd.
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Ceragon Reports Third Quarter 2003 Results - 3
CONSOLIDATED
STATEMENTS OF OPERATIONS (*)
U.S. dollars in
thousands, except share and per share data
| Nine months ended September 30, |
Three months ended September 30, |
Year ended December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 |
2002 |
2003 |
2002 |
2002 | |||||||||||||
| Unaudited |
|||||||||||||||||
| Revenues | $ | 24,254 | $ | 12,323 | $ | 9,114 | $ | 5,047 | $ | 18,394 | |||||||
| Cost of revenues | 14,727 | 8,817 | 5,385 | 3,507 | 12,791 | ||||||||||||
| Gross profit | 9,527 | 3,506 | 3,729 | 1,540 | 5,603 | ||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 6,625 | 6,781 | 2,228 | 2,285 | 9,143 | ||||||||||||
| Less: participation by the Chief | |||||||||||||||||
| Scientist of the Government of | |||||||||||||||||
| Israel | 1,413 | 1,326 | 472 | 480 | 1,870 | ||||||||||||
| Research and development, net | 5,212 | 5,455 | 1,756 | 1,805 | 7,273 | ||||||||||||
| Selling and marketing | 6,977 | 6,820 | 2,343 | 2,236 | 9,130 | ||||||||||||
| General and administrative | 1,594 | 1,521 | 552 | 480 | 2,031 | ||||||||||||
| Amortization of deferred stock | |||||||||||||||||
| compensation (a) | 1,110 | 2,399 | 308 | 679 | 2,974 | ||||||||||||
| Non-recurring expenses (income), | |||||||||||||||||
| net | (537 | ) | - | (222 | ) | - | 83 | ||||||||||
| Total operating expenses | 14,356 | 16,195 | 4,737 | 5,200 | 21,491 | ||||||||||||
| Operating loss | (4,829 | ) | (12,689 | ) | (1,008 | ) | (3,660 | ) | (15,888 | ) | |||||||
| Financial income, net | 814 | 1,236 | 315 | 369 | 1,528 | ||||||||||||
| Net loss | $ | (4,015 | ) | $ | (11,453 | ) | $ | (693 | ) | $ | (3,291 | ) | $ | (14,360 | ) | ||
| Basic and diluted net loss per share | $ | (0.18 | ) | $ | (0.51 | ) | $ | (0.03 | ) | $ | (0.15 | ) | $ | (0.64 | ) | ||
| Weighted average number of shares | |||||||||||||||||
| used in computing basic and | |||||||||||||||||
| diluted net loss per share | 22,836,180 | 22,334,970 | 23,118,719 | 22,425,096 | 22,375,939 | ||||||||||||
| (a) Amortization of deferred | |||||||||||||||||
| stock compensation relates to | |||||||||||||||||
| the following: | |||||||||||||||||
| Cost of revenues | $ | 86 | $ | 167 | $ | 24 | $ | 49 | $ | 214 | |||||||
| Research and development | 328 | 781 | 95 | 218 | 958 | ||||||||||||
| Selling and marketing | 430 | 862 | 115 | 238 | 1,072 | ||||||||||||
| General and administrative | 266 | 589 | 74 | 174 | 730 | ||||||||||||
| Total amortization of deferred | |||||||||||||||||
| stock compensation | $ | 1,110 | $ | 2,399 | $ | 308 | $ | 679 | $ | 2,974 | |||||||
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Ceragon Reports Third Quarter 2003 Results - 4
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
| September 30, 2003 |
December 31, 2002 | |||||||
|---|---|---|---|---|---|---|---|---|
| Unaudited |
||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 7,628 | $ | 4,688 | ||||
| Short-term bank deposits | 10,279 | 10,853 | ||||||
| Marketable securities | 6,255 | 11,743 | ||||||
| Trade receivables, net | 5,238 | 4,329 | ||||||
| Other accounts receivable and prepaid expenses | 2,341 | 1,268 | ||||||
| Inventories | 8,901 | 8,054 | ||||||
| Total current assets | 40,642 | 40,935 | ||||||
| LONG-TERM INVESTMENTS: | ||||||||
| Long-term marketable securities | 969 | 11,675 | ||||||
| Long-term bank deposits | 14,175 | 4,214 | ||||||
| Severance pay funds | 1,550 | 1,200 | ||||||
| Total long-term investments | 16,694 | 17,089 | ||||||
| PROPERTY AND EQUIPMENT, NET | 2,773 | 3,616 | ||||||
| Total assets | $ | 60,109 | $ | 61,640 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 6,241 | $ | 5,744 | ||||
| Other accounts payable and accrued expenses | 4,805 | 4,805 | ||||||
| Total current liabilities | 11,046 | 10,549 | ||||||
| ACCRUED SEVERANCE PAY | 2,328 | 1,825 | ||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Share capital | 169,054 | 167,570 | ||||||
| Accumulated deficit | (122,319 | ) | (118,304 | ) | ||||
| Total shareholders' equity | 46,735 | 49,266 | ||||||
| Total liabilities and shareholders' equity | $ | 60,109 | $ | 61,640 | ||||
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Ceragon Reports Third Quarter 2003 Results - 5
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 statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include: Ceragon’s limited operating history and history of losses; Ceragon’s dependence on a limited number of key customers, independent manufacturers and suppliers; and the demand for Ceragon’s products and technology. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon’s Annual Report on Form 20-F and Ceragon’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.
Contacts:
Daphna Golden
Ceragon Networks Ltd.
+972-3-645-5513
ir@ceragon.com
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