Ceragon Networks Ltd. (NASDAQ:CRNT) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Ceragon Networks Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.16 in the quarter versus EPS of $0.05 in the year-earlier quarter.
Revenue: Decreased 23.5% to $90.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ceragon Networks Ltd. reported adjusted EPS loss of $0.16 per share. By that measure, the company missed the mean analyst estimate of $-0.1. It missed the average revenue estimate of $94.89 million.
Quoting Management: “Our financial results for the first quarter of 2013 reflect longer sales cycles,” said Ira Palti, President and CEO of Ceragon. “The outlook remains the same as we indicated on April 8th. We are not seeing carriers cancelling or reducing the scope of their planned projects, and the delays in closing deals relate mainly to operator hesitation during a period of reevaluating business models with a network architecture transition on the horizon.
“Meanwhile, the response to our new product line from initial evaluations is very encouraging, and we expect to be able to capitalize on our leadership position beginning next year when the transition to new architectures expands beyond early adopters.”
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