Ceragon Networks Ltd. (CRNT) has reported a 59.27 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $8.33 million, or $0.10 a share in the quarter, compared with $5.23 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.24 million, or $0.07 a share compared with $2.06 million or $0.03 a share, a year ago. Revenue during the quarter grew 11.93 percent to $84.66 million from $75.64 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 32.53 percent. Total expenses were 90 percent of quarterly revenues, up from 88.20 percent for the same period last year. That has resulted in a contraction of 180 basis points in operating margin to 10 percent.
Operating income for the quarter was $8.47 million, compared with $8.93 million in the previous year period.
"The continued success of our strategy to focus on increasing net income and free cash flow resulted in significant improvement in these key metrics in 2016, and enabled us to maintain a strong cash position while also substantially reducing debt," said Ira Palti, president and CEO of Ceragon. "We have a strong order book, particularly with the large orders we received in Q1 from a customer in India. However, the timing of delivering various elements of these orders may cause greater than normal quarter-to-quarter fluctuations in our results during the year. After integrating these orders into our overall operating plan, we now feel comfortable raising our net income target for 2017, on a constant currency basis, from the one we set in November 2016."
Operating cash flow improves significantly
Ceragon Networks Ltd. has generated cash of $25.77 million from operating activities during the year, up 59.86 percent or $9.65 million, when compared with the last year. The company has spent $8.19 million cash to meet investing activities during the year as against cash outgo of $4.73 million in the last year.
The company has spent $17.85 million cash to carry out financing activities during the year as against cash outgo of $15.84 million in the last year period.
Cash and cash equivalents stood at $36.34 million as on Dec. 31, 2016, up 0.06 percent or $0.02 million from $36.32 million on Dec. 31, 2015.
Debt comes down significantly
Ceragon Networks Ltd. has recorded a decline in total debt over the last one year. It stood at $17 million as on Dec. 31, 2016, down 51.32 percent or $17.92 million from $34.92 million on Dec. 31, 2015. Ceragon Networks has recorded a decline in short-term debt over the last one year. It stood at $17 million as on Dec. 31, 2016, down 51.32 percent or $17.92 million from $34.92 million on Dec. 31, 2015.
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