Ceragon makes hay with cellular backhaul strategy

Fixed broadband wireless provider Ceragon Networks is using an increased emphasis on cellular backhaul to improve its financial condition, company officials said today in announcing second quarter results.

During the quarter, Ceragon earned $4 million, compared with $3.3 million the previous quarter, with pro forma gross profit of $1.2 million, or 29% of revenue, up from $800,000, or 24.6% of revenues in the first quarter. Net loss was $3 million compared with $3.4 million for the first quarter.

Shraga Katz, the Israeli-based company’s president and CEO, attributed the improvement to Ceragon’s increased emphasis on cellular backhaul – which comprised 50% of company business and geographic diversification.

“As I look back over the past few quarters, given the difficult climate in the telecommunications market, I’m extremely proud of my team at Ceragon,” Katz said. “We are well positioned in our target markets, we have consistently increased our revenues, and we are continuing to see real momentum in bookings.”

Ceragon announced a multi-year contract with Cellcom, Israel’s largest cellular carrier and a BellSouth operation during the second quarter. Cellcom is using Ceragon’s wireless ring solution across its cellular network.

“We are making inroads with incumbents around the world, adding new names to our growing customer base,” Katz said. “During this quarter, we have extended our reach into Eastern Europe, and we look forward to maintaining a diversified global customer base. Ceragon is becoming the provider of choice for high-capacity wireless connectivity to leading operators worldwide.”