Ceragon's Q1 Top-Line Misses Street View; Margins Shrink On Semiconductor Crisis, Shipping Costs; Slashes FY22 Guidance

Ceragon Networks Ltd CRNT reported first-quarter FY22 revenue growth of 2.9% year-on-year to $70.3 million, missing the consensus of $71.2 million.
Ceragon saw strong bookings in North America, India, Europe, and LATAM, with a trailing 12 months book-to-bill above 1.
In North America, Ceragon acquired five new G customers, including DISH Network Corp DISH and private networks.
Operating income was loss was $(1.3) million versus $0.4 million last year.
Due to component shortages and higher shipping costs, the gross margin contracted 200 bps to 27.5%.
Non-GAAP EPS loss of $(0.02) topped the consensus loss of $(0.03).
The company held $25 million in cash and equivalents and used $1.8 million in operating cash flow.
CEO Doron Arazi commented: "We began the year with accelerated momentum reflected by very strong bookings in Q1. We are witnessing increased operator and private network activity, especially in terms of 5G deployments in North America and Europe."
Outlook: Ceragon Networks reduced FY22 revenue guidance from $305 million - $320 million to $300 million - $315 million versus the consensus of $312.4 million.
Price Action: CRNT shares traded higher by 0.52% at $1.92 in the premarket on the last check Monday.