Ceragon Networks Q2 adjusted EPS USD 0.02

Ceragon Networks Ltd. (NASDAQ: CRNT) reported adjusted earnings per share (EPS) of $0.02 for the second quarter of 2023, reflecting continued operational improvements and strong demand for its 5G wireless transport solutions. The company generated $86.2 million in revenue during the quarter, representing a 21.9% year-over-year increase and a 3.3% sequential rise. On a non-GAAP basis, operating income reached $7.4 million, and net income was $4.4 million, or $0.05 per diluted share.

Geographically, India remained the strongest market, contributing 31% of total revenue, driven by ongoing 4G and 5G network rollouts. North America also showed robust performance, accounting for 26% of revenue and nearly matching India in terms of bookings. The company’s gross margin expanded to 35.2%, up from 30.3% in the same period in 2022.

Ceragon also raised its full-year revenue guidance to a range of $334 million to $348 million, up from the previous range of $325 million to $345 million. The company cited strong booking performance and improved visibility into the second half of the year as key factors behind the upward revision.

Cash and cash equivalents stood at $24.5 million as of June 30, 2023, slightly down from $26.4 million at the end of the first quarter. The company also reported positive free cash flow and maintained a disciplined approach to capital allocation.

Looking ahead, Ceragon aims to expand its gross margins to 34-36% and achieve a revenue target of approximately $500 million by fiscal 2027. The company continues to invest in product innovation, including the development of a new product line based on system-on-a-chip technology, to maintain its competitive edge in the evolving wireless transport market.