Ceragon Networks' Q4 Earnings Up Y/Y, Revenues Surpass Estimates

Core Viewpoint - Ceragon Networks Ltd. reported mixed financial results for the fourth quarter of 2024, with adjusted earnings per share missing estimates but showing significant year-over-year growth. The company also completed an acquisition aimed at enhancing its service offerings in private networks, which is expected to contribute positively to future revenues and earnings. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were 9 cents, missing the Zacks Consensus Estimate by 10%, but increased 125% year over year [1] - Revenues rose 18.3% year over year to $106.9 million, surpassing the Zacks Consensus Estimate by 2.8$8.5 million, with potential additional payments of up to $4.3 million based on financial targets [3][4] - The acquisition is projected to add$15-19 million in revenues for Ceragon in 2025 and is expected to be accretive to non-GAAP earnings by the second half of 2025 [4] Segment Performance - India generated revenues of $55.6 million, contributing 52$16.2 million (15% of total), North America generated $13.4 million (12$36.7 million, with a gross margin of 34.3%, slightly down from 35.1% year over year [9] - Adjusted operating income for the quarter was $12.2 million, up from$7.8 million in the previous year [10] Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents were $35.3 million, up from$28.2 million a year earlier, while net trade receivables increased to $149.6 million [11] - Operating cash flow for Q4 was$1.1 million, down from $11 million in the year-ago quarter [11] Outlook - Management projects revenues for 2025 to be between$390 million and $430 million, including contributions from the E2E acquisition, with non-GAAP operating margins expected to be at least 10% at the lower end of the range [12] Market Performance - Ceragon's shares have surged 30% in the past six months, contrasting with a 6.5% decline in the Zacks Wireless Non-US industry [13]