Ceragon Networks Misses Q2 Due To Supply Chain, Semiconductor Crisis; Reiterates Outlook

Ceragon Networks Ltd CRNT reported second-quarter FY22 revenue growth of 3.1% year-on-year to $70.7 million, missing the consensus of $72.4 million.
Ceragon saw strong bookings in North America, India, Europe, Latin America, and APAC.
Operating income loss was $(0.3) million versus $0.5 million last year.
Due to component shortages and higher shipping costs, the gross margin contracted 160 bps to 30.3%.
Non-GAAP EPS loss of $(0.03) missed the consensus loss of $(0.02).
The company held $23.6 million in cash and equivalents and used $(3.2) million in operating cash flow.
Doron Arazi, Ceragon's CEO, commented: "I'm pleased to share that Ceragon saw continued strong business momentum in the second quarter of 2022. In parallel, the positive reaction of the market to our growth strategy has been very encouraging. As the supply chain disruptions and component shortages continue, we have implemented and continue to implement measures targeted at mitigating the impact of these external macro-circumstances."
Outlook: Ceragon Networks reaffirmed FY22 revenue guidance of $300 million - $315 million versus the consensus of $305.6 million.
Ceragon Networks reiterated FY23 revenue guidance of $325 million - $345 million versus the consensus of $333 million.
Price Action: CRNT shares closed lower by 0.76% at $2.60 on Friday.

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