Ceragon Networks' Outlook Soars As Anticipated Siklu Deal Catalyzes Revenue Surge

Ceragon Networks Ltd (NASDAQ: CRNT) reported a third-quarter FY23 revenue increase of 10.9% year-on-year to $87.3 million, beating the consensus of $84.5 million. 

Adjusted EPS of $0.06 beat the consensus of $0.03.

Ceragon saw strong bookings in India and North America in Q3, which bolstered quarterly performance.

Adjusted operating income in Q3 was $8.0 million, compared with $6.4 million a year ago.

Gross margin was 34.7%, compared with a gross margin of 35.3% in Q3 2022 and 35.2% in Q2 2023.

The company held $34.0 million in cash and equivalents.

CEO Doron Arazi highlighted continued strong demand in India and North America with private networks and smaller Communication Service Providers, adding 20 new customers in this segment since the beginning of the year. The pending acquisition of Siklu will likely accelerate this trend.

FY23 Outlook: Ceragon Networks raised FY23 revenue guidance to $338 million - $346 million (prior $334 million - $348 million) versus the consensus of $340.97 million. The company expects full-year profitability vs $0.11 consensus.

The company reiterated its FY27 revenue target of approximately $500 million.

Price Action: CRNT shares were down 3.28% to $1.77 at last check Monday.

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