Ceragon posts fourth straight quarter of revenue growth

Fixed broadband wireless vendor Ceragon Networks, following a three-pronged approach of attacking cellular backhaul, metropolitan infrastructure and enterprise networks, reported its fourth straight quarter of revenue growth.

Third quarter revenues increased to $5 million, compared to $3.1 million in the third quarter of 2001 and $4 million in the previous quarter in 2002. Pro forma gross profit was $1.5 million, compared to pro-forma gross profit for Q3 2001 of $300,000 and pro-forma profit of $1.2 million in the second quarter. Pro forma net loss decreased to $2.6 million or minus 12 cents a share compared to a loss of $3.9 million or minus 19 cents share in Q3 2001 and $3 million or minus 14 cents a share in the second quarter.

The company ended the quarter with $45.5 million in cash and liquid investments, down from $48 million last quarter.

In all, the results showed the company is on the right track, said Shraga Katz, president and CEO of Ceragon.

“The market environment continues to be a challenge, however, in the past quarter, Ceragon has made progress in line with our strategic plan,” Katz said, predicting that the trend would continue into the fourth quarter. “Our sales and marketing efforts are paying off.”

Ceragon’s success, he said, is based on its value as a “cost-effective and time-efficient alternative to wireline. The company also has built new relationships with service providers.”