Ceragon Networks Shares Are Trading Higher On Q1 Earnings Beat, Positive FY21 Guidance; CEO Announces Transition

Ceragon Networks Ltd CRNT reported first-quarter FY21 revenue growth of 22.2% year-on-year to $68.3 million, beating analyst consensus of $64.55 million.
India contributed 26% of the revenue. Europe, North America, Latin America, and APAC contributed 19%, 17%, 15%, and 14% of the revenue, respectively, while Africa contributed the rest 9%.
The gross margin expanded 440 basis points to 29.5%.
Non-GAAP net loss per share of $0.01 beat the analyst consensus of $0.03 loss.
The company held $33 million in cash and equivalents as of March 31, 2021.
Many Tier-1 and Tier-2 operators turned to Ceragon to step up their efforts to provide enhanced 4G coverage and new 5G services, CEO Ira Palti said.
The company achieved three new 5G design wins, witnessed strong bookings across different regions, and was selected to participate in an OpenRan trial in TIM Brazil, added Palti.
Palti also disclosed the appointment of former deputy CEO & CFO Doron Arazi to the CEO position from July. Palti will continue as the board Vice Chairman.
FY21 Guidance: Ceragon's revenue guidance lies between $275 million and $295 million against the analyst consensus of $283.29 million. The growing semiconductor chip crisis may hurt the timeliness of the Q2 and rest-of-the-year deliveries and may lead to a probable push of revenues between quarters.
Price action: CRNT shares traded higher by 3.23% at $3.52 in the premarket session on the last check Monday.

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