Ceragon Networks Ltd 6-K, filed Nov 6, 2023
Ceragon Networks Ltd (CRNT)
6-K
2023-11-06
For: 2023-11-06
View Original
Added on
April 11, 2026
About this 6-K
Ceragon Networks Ltd filed this 6-K on November 6, 2023.
SECURITIES AND EXCHANGE
COMMISSION
Washington, D. C. 20549
Washington, D. C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2023
Commission File Number: 0-30862
|
CERAGON NETWORKS LTD.
 (Translation of registrant’s name into English)
|
|
3 Uri Ariav st., Rosh Ha’Ayin, Israel, 4810002
(Address of principal executive offices)
|
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
|
|
CERAGON NETWORKS LTD.
|
|
Date: November 6, 2023
|
By: /s/ Ronen Stein
|
|
|
Name: Ronen Stein
Title: Chief Financial Officer |
2
|
Exhibit
|
Description
|
3
Exhibit A
Ceragon Reports 11% Growth in Third Quarter of 2023, Narrows
Full-Year Guidance Range, Raising Midpoint
Company Generates $3.4 Million in GAAP Net Income and $10.8 Million in Positive Free Cash Flow
ROSH HA'AIN, Israel, November 6, 2023 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT), the global innovator and leading solutions provider of 5G wireless transport, today reported its financial results for
the third quarter and nine months ended September 30, 2023.
Q3 2023 Financial Highlights:
| • |
Revenues of $87.3 million, up 10.9% year-over-year
|
| • |
Operating income of $6.7 million on a GAAP basis, or $8.0 million on a non-GAAP basis
|
| • |
EPS of $0.04 per diluted share on a GAAP basis, or $0.06 per diluted share on a non-GAAP basis
|
Q3 2023 Business Highlights:
| • |
Announced the definitive agreement to acquire Siklu to expand presence in North America, increasing market share in mmW and augmenting Ceragon’s offering with Fixed Wireless Access
|
| • |
North America:
|
- Record bookings, supported by continued strength in 5G rollout and expanded presence with private network customers
- Third consecutive quarter of revenues exceeding $20 million
| • |
India:
|
- Strongest region in terms of revenue, with record quarterly revenue since Q2 2018
Doron Arazi, CEO, commented: “Ceragon continues to expand its addressable market and diversify its customer base, bolstering our already durable competitive position as a leader in one of the
growing parts of the telecommunications sector. Continued strong demand in India and North America drove our growth, and we are successfully broadening our position with private networks and smaller Communication Service Providers, adding 20 new
customers in this segment since the beginning of the year, to expand our revenue opportunity and further diversify our customer portfolio. The pending acquisition of Siklu is expected to accelerate this trend, adding incremental revenue with key
growth customers.”
“While the Siklu acquisition has not closed yet, Ceragon and Siklu teams are already working on integration plans, and our expectation both in terms of timing and for operational and financial
synergies has not changed,” added Mr. Arazi. “We continue to view this pending acquisition as strategic, strengthening our end-to-end offering, expanding our position in key growth areas and enabling significant cross-selling opportunities.”
“With our improved collections, we generated more than $10 million from operations and investing activities during the quarter, giving us increased confidence that we can integrate and accelerate
Siklu, invest in product development, and strengthen our balance sheet,” continued Mr. Arazi. “We expect a continued growth year over year in revenue and profitability in the fourth quarter, capping off a strong year for Ceragon and giving us
significant momentum as we enter 2024.”
Primary Third Quarter 2023 Financial Results:
Revenues were $87.3 million, up 10.9% from $78.6 million in Q3 2022 and 1.3% compared to $86.2 million in Q2 2023.
Gross profit was $30.3 million, giving us a gross margin of 34.7%, compared with a gross margin of 35.3% in Q3 2022
and 35.2% in Q2 2023.
Operating income was $6.7 million compared with $1.3 million for Q3 2022 and $5.7 million for Q2 2023.
Net income (loss) was $3.4 million, or $0.04 per diluted share, compared with $(0.9) million, or $(0.01) per diluted share for Q3 2022 and $2.1 million, or
$0.02 per diluted share for Q2 2023.
Non-GAAP results were as follows: Gross margin was 34.9%, operating profit was $8.0 million, and net income was
$5.0 million, or $0.06 per diluted share.
Cash and cash equivalents were $34.0 million at September 30, 2023, compared to $24.5 million at June 30, 2023.
For a reconciliation of GAAP to non-GAAP results, see the attached tables.
Revenue Breakout by Geography:
|
Q3 2023
|
|
|
India
|
34%
|
|
North America
|
26%
|
|
Latin America
|
15%
|
|
Europe
|
11%
|
|
APAC
|
10%
|
|
Africa
|
4%
|
Outlook
Ceragon management narrowed the range and raised the midpoint of its full-year revenue guidance to $338 million to $346 million, up from prior guidance of $334-$348 million and expects full-year
non-GAAP profitability. Our guidance is based on current visibility and assumes normal conversion of bookings to revenue. Our revenue target for fiscal 2027 is approximately $500 million, and we also target increasing our gross margins to at
least 34-36% over the same period.
Conference Call
The Company will host a Zoom web conference today at 8:30 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community.
Investors are invited to register by clicking here. All relevant information will be sent upon registration.
If you are unable to join us live, a recording of the call will be available on our website at www.ceragon.com within 24 hours after the call.
About Ceragon Networks
Ceragon Networks Ltd. (NASDAQ: CRNT) is the global innovator and leading solutions provider of 5G wireless transport. We help operators and other service providers worldwide increase operational
efficiency and enhance end customers' quality of experience with innovative wireless backhaul and fronthaul solutions. Our customers include service providers, public safety organizations, government agencies and utility companies, which use our
solutions to deliver 5G & 4G broadband wireless connectivity, mission-critical multimedia services, stabilized communications, and other applications at high reliability and speed.
Ceragon's unique multicore technology and disaggregated approach to wireless transport provides highly reliable, fast to deploy, high-capacity wireless transport for 5G and 4G networks with
minimal use of spectrum, power, real estate, and labor resources. It enables increased productivity, as well as simple and quick network modernization, positioning Ceragon as a leading solutions provider for the 5G era. We deliver a complete
portfolio of turnkey end-to-end AI-based managed and professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 400 service providers, as
well as more than 800 private network owners, in more than 150 countries. For more information please visit: www.ceragon.com
Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a trademark of Ceragon Networks Ltd., registered in various countries. Other
names mentioned are owned by their respective holders.
Safe Harbor
This press release contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended and the Securities Exchange
Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon’s management about
Ceragon’s business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding:
projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources,
cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as “may”, “plans”, “anticipates”, “believes”, “estimates”, “targets”, “expects”, “intends”, “potential” or
the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.
Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations
will be obtained or that any deviations therefrom will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon’s future results or performance to differ materially from those
anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity
price increases and fluctuations, commodity shortages and exposure to economic slowdown; the effects of the evolving nature of the recent war in Gaza between Israel and the Hamas; risks associated with delays in the transition to 5G technologies
and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with
inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs, substantial losses incurred and negative cash flows generated, which, if continue, may
significantly adversely impact our results of operations and cash flow; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfill our customer
commitments; risks associated with inaccurate forecasts or business changes, which may expose us to inventory-related losses on inventory purchased by our contract manufacturers and other suppliers, to increased expenses should unexpected
production ramp up be required, or to write off to parts of our inventory, which would increase our cost of revenues; uncertainties as to the occurrence and timing of the consummation of the transaction with Siklu and the potential failure to
satisfy the conditions to the closing of such transaction; and such other risks, uncertainties and other factors that could affect our results of operation, as further detailed in Ceragon’s most recent Annual Report on Form 20-F, as published on
May 1, 2023, as well as other documents that may be subsequently filed by Ceragon from time to time with the SEC.
We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any
forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a
combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon’s views only as of the date of this press release and should
not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.
Ceragon’s public filings are available on the Securities and Exchange Commission’s website at www.sec.gov and may also be obtained from Ceragon’s website at www.ceragon.com.
Ceragon Investor & Media Contact:
Rob Fink or Bob Meyers
FNK IR
Tel. 1+646-809-4048
crnt@fnkir.com
-Tables Follow-
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
|||||||||||||
|
Revenues
|
$
|
87,260
|
$
|
78,649
|
$
|
256,820
|
$
|
219,642
|
||||||||
|
Cost of revenues
|
56,986
|
50,861
|
168,014
|
151,111
|
||||||||||||
|
Gross profit
|
30,274
|
27,788
|
88,806
|
68,531
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
7,454
|
7,318
|
23,204
|
21,610
|
||||||||||||
|
Sales and Marketing
|
10,059
|
8,663
|
30,033
|
26,797
|
||||||||||||
|
General and administrative
|
5,806
|
6,571
|
17,348
|
16,469
|
||||||||||||
|
Restructuring and related charges
|
-
|
-
|
897
|
-
|
||||||||||||
|
Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
|
Other operating expenses (*)
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
|
Total operating expenses
|
$
|
23,602
|
$
|
26,523
|
$
|
71,765
|
$
|
68,847
|
||||||||
|
Operating income (loss)
|
6,672
|
1,265
|
17,041
|
(316
|
)
|
|||||||||||
|
Financial expenses and others, net
|
1,722
|
1,778
|
5,066
|
3,294
|
||||||||||||
|
Income (loss) before taxes
|
4,950
|
(513
|
)
|
11,975
|
(3,610
|
)
|
||||||||||
|
Taxes on income
|
1,583
|
350
|
4,552
|
1,061
|
||||||||||||
|
Net income (loss)
|
$
|
3,367
|
$
|
(863
|
)
|
$
|
7,423
|
$
|
(4,671
|
)
|
||||||
|
Basic net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
|
Diluted net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
|
Weighted average number of shares used in computing basic net income (loss) per share
|
84,688,985
|
84,200,177
|
84,470,709
|
84,060,674
|
||||||||||||
|
Weighted average number of shares used in computing diluted net income (loss) per share
|
85,488,113
|
84,200,177
|
85,265,666
|
84,060,674
|
||||||||||||
(*) Hostile attempt related costs.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
September 30,
2023
|
December 31,
2022
|
|||||||
|
|
Unaudited
|
Audited
|
||||||
| ASSETS | ||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
33,966
|
$
|
22,948
|
||||
|
Trade receivables, net
|
104,593
|
100,034
|
||||||
|
Other accounts receivable and prepaid expenses
|
15,047
|
15,756
|
||||||
|
Inventories
|
70,050
|
72,009
|
||||||
|
Total current assets
|
223,656
|
210,747
|
||||||
|
NON-CURRENT ASSETS:
|
||||||||
|
Severance pay and pension fund
|
4,652
|
4,633
|
||||||
|
Property and equipment, net
|
30,145
|
29,456
|
||||||
|
Operating lease right-of-use assets
|
16,214
|
17,962
|
||||||
|
Intangible assets, net
|
9,337
|
8,208
|
||||||
|
Other non-current assets
|
17,130
|
18,312
|
||||||
|
Total non-current assets
|
77,478
|
78,571
|
||||||
|
Total assets
|
$
|
301,134
|
$
|
289,318
|
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
$
|
65,865
|
$
|
67,384
|
||||
|
Deferred revenues
|
2,986
|
3,343
|
||||||
|
Short-term loans
|
38,200
|
37,500
|
||||||
|
Operating lease liabilities
|
3,052
|
3,745
|
||||||
|
Other accounts payable and accrued expenses
|
25,148
|
20,864
|
||||||
|
Total current liabilities
|
135,251
|
132,836
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Accrued severance pay and pension
|
8,983
|
9,314
|
||||||
|
Deferred revenues
|
12,170
|
11,545
|
||||||
|
Other long-term payables
|
3,059
|
2,653
|
||||||
|
Operating lease liabilities
|
11,157
|
13,187
|
||||||
|
Total long-term liabilities
|
35,369
|
36,699
|
||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||
|
Share capital:
|
||||||||
|
Ordinary shares
|
224
|
224
|
||||||
|
Additional paid-in capital
|
435,269
|
432,214
|
||||||
|
Treasury shares at cost
|
(20,091
|
)
|
(20,091
|
)
|
||||
|
Other comprehensive loss
|
(10,903
|
)
|
(11,156
|
)
|
||||
|
Accumulated deficits
|
(273,985
|
)
|
(281,408
|
)
|
||||
|
Total shareholders' equity
|
130,514
|
119,783
|
||||||
|
Total liabilities and shareholders' equity
|
$
|
301,134
|
$
|
289,318
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
(Unaudited)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
|||||||||||||
|
Cash flow from operating activities:
|
||||||||||||||||
|
Net income (loss)
|
$
|
3,367
|
$
|
(863
|
)
|
$
|
7,423
|
$
|
(4,671
|
)
|
||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
2,366
|
2,643
|
7,501
|
8,418
|
||||||||||||
|
Loss from sale of property and equipment, net
|
31
|
-
|
61
|
20
|
||||||||||||
|
Stock-based compensation expense
|
1,048
|
1,167
|
3,025
|
2,602
|
||||||||||||
|
Decrease in accrued severance pay and pensions, net
|
(11
|
)
|
(321
|
)
|
(355
|
)
|
(690
|
)
|
||||||||
|
Decrease (increase) in trade receivables, net
|
2,684
|
6,659
|
(4,226
|
)
|
2,486
|
|||||||||||
|
Decrease (increase) in other accounts receivable and prepaid expenses (including other long term assets)
|
1,360
|
1,297
|
1,911
|
(1,759
|
)
|
|||||||||||
|
Decrease in operating lease right-of-use assets
|
1,090
|
853
|
2,987
|
2,726
|
||||||||||||
|
Decrease (increase) in inventory, net of write off
|
(2,437
|
)
|
(3,759
|
)
|
1,622
|
(3,310
|
)
|
|||||||||
|
Increase (decrease) in trade payables
|
3,229
|
1,834
|
(726
|
)
|
3,173
|
|||||||||||
|
Increase (decrease) in other accounts payable and accrued expenses (including other long term liabilities)
|
2,071
|
(258
|
)
|
4,397
|
(1,964
|
)
|
||||||||||
|
Decrease in operating lease liability
|
(1,443
|
)
|
(1,087
|
)
|
(3,961
|
)
|
(5,158
|
)
|
||||||||
|
Increase (decrease) in deferred revenues
|
(118
|
)
|
432
|
268
|
1,735
|
|||||||||||
|
Net cash provided by operating activities
|
$
|
13,237
|
$
|
8,597
|
$
|
19,927
|
$
|
3,608
|
||||||||
|
Cash flow from investing activities:
|
||||||||||||||||
|
Purchase of property and equipment, net
|
(1,935
|
)
|
(3,664
|
)
|
(7,407
|
)
|
(9,032
|
)
|
||||||||
|
Purchase of intangible assets
|
(446
|
)
|
(823
|
)
|
(2,283
|
)
|
(1,260
|
)
|
||||||||
|
Net cash used in investing activities
|
$
|
(2,381
|
)
|
$
|
(4,487
|
)
|
$
|
(9,690
|
)
|
$
|
(10,292
|
)
|
||||
|
Cash flow from financing activities:
|
||||||||||||||||
|
Proceeds from exercise of options
|
-
|
297
|
30
|
410
|
||||||||||||
|
Proceeds from (repayment of) bank credits and loans, net
|
(1,350
|
)
|
(2,000
|
)
|
700
|
15,100
|
||||||||||
|
Net cash provided by (used in) financing activities
|
$
|
(1,350
|
)
|
$
|
(1,703
|
)
|
$
|
730
|
$
|
15,510
|
||||||
|
Translation adjustments on cash and cash equivalents
|
$
|
(69
|
)
|
$
|
(35
|
)
|
$
|
51
|
$
|
59
|
||||||
|
Increase in cash and cash equivalents
|
$
|
9,437
|
$
|
2,372
|
$
|
11,018
|
$
|
8,885
|
||||||||
|
Cash and cash equivalents at the beginning of the period
|
24,529
|
23,592
|
22,948
|
17,079
|
||||||||||||
|
Cash and cash equivalents at the end of the period
|
$
|
33,966
|
$
|
25,964
|
$
|
33,966
|
$
|
25,964
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands)
(Unaudited)
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
|||||||||||||
|
GAAP cost of revenues
|
$
|
56,986
|
$
|
50,861
|
$
|
168,014
|
$
|
151,111
|
||||||||
|
Stock-based compensation expenses
|
(142
|
)
|
(161
|
)
|
(367
|
)
|
(418
|
)
|
||||||||
|
Changes in indirect tax positions
|
-
|
(1
|
)
|
(3
|
)
|
(2
|
)
|
|||||||||
|
Non-GAAP cost of revenues
|
$
|
56,844
|
$
|
50,699
|
$
|
167,644
|
$
|
150,691
|
||||||||
|
GAAP gross profit
|
$
|
30,274
|
$
|
27,788
|
$
|
88,806
|
$
|
68,531
|
||||||||
|
Stock-based compensation expenses
|
142
|
161
|
367
|
418
|
||||||||||||
|
Changes in indirect tax positions
|
-
|
1
|
3
|
2
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
30,416
|
$
|
27,950
|
$
|
89,176
|
$
|
68,951
|
||||||||
|
GAAP Research and development expenses
|
$
|
7,454
|
$
|
7,318
|
$
|
23,204
|
$
|
21,610
|
||||||||
|
Stock-based compensation expenses
|
(194
|
)
|
(168
|
)
|
(672
|
)
|
(188
|
)
|
||||||||
|
Non-GAAP Research and development expenses
|
$
|
7,260
|
$
|
7,150
|
$
|
22,532
|
$
|
21,422
|
||||||||
|
GAAP Sales and Marketing expenses
|
$
|
10,059
|
$
|
8,663
|
$
|
30,033
|
$
|
26,797
|
||||||||
|
Stock-based compensation expenses
|
(357
|
)
|
(383
|
)
|
(1,096
|
)
|
(962
|
)
|
||||||||
|
Non-GAAP Sales and Marketing expenses
|
$
|
9,702
|
$
|
8,280
|
$
|
28,937
|
$
|
25,835
|
||||||||
|
GAAP General and Administrative expenses
|
$
|
5,806
|
$
|
6,571
|
$
|
17,348
|
$
|
16,469
|
||||||||
|
Retired CEO compensation
|
-
|
-
|
-
|
96
|
||||||||||||
|
Stock-based compensation expenses
|
(355
|
)
|
(455
|
)
|
(890
|
)
|
(1,034
|
)
|
||||||||
|
Non-GAAP General and Administrative expenses
|
$
|
5,451
|
$
|
6,116
|
$
|
16,458
|
$
|
15,531
|
||||||||
|
GAAP Restructuring and related charges
|
-
|
-
|
897
|
-
|
||||||||||||
|
Restructuring and related charges
|
-
|
-
|
(897
|
)
|
-
|
|||||||||||
|
Non-GAAP Other operating expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
|
GAAP Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
|
Acquisition- and integration-related
|
(283
|
)
|
-
|
(283
|
)
|
-
|
||||||||||
|
Non-GAAP Other operating expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
|
GAAP Other operating expenses
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
|
Hostile attempt related costs
|
-
|
(3,971
|
)
|
-
|
(3,971
|
)
|
||||||||||
|
Non-GAAP Other operating expenses
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands)
(Unaudited)
|
Three months ended
|
Nine months ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
|||||||||||||
|
GAAP operating income (loss)
|
$
|
6,672
|
$
|
1,265
|
$
|
17,041
|
$
|
(316
|
)
|
|||||||
|
Stock-based compensation expenses
|
1,048
|
1,167
|
3,025
|
2,602
|
||||||||||||
|
Changes in indirect tax positions
|
-
|
1
|
3
|
2
|
||||||||||||
|
Retired CEO compensation
|
-
|
-
|
-
|
(96
|
)
|
|||||||||||
|
Hostile attempt related costs
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
|
Restructuring and related charges
|
-
|
-
|
897
|
-
|
||||||||||||
|
Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
|
Non-GAAP operating income
|
$
|
8,003
|
$
|
6,404
|
$
|
21,249
|
$
|
6,163
|
||||||||
|
GAAP financial expenses and others, net
|
$
|
1,722
|
$
|
1,778
|
$
|
5,066
|
$
|
3,294
|
||||||||
|
Leases – financial income
|
364
|
233
|
1,007
|
2,432
|
||||||||||||
|
Non-GAAP financial expenses & others, net
|
$
|
2,086
|
$
|
2,011
|
$
|
6,073
|
$
|
5,726
|
||||||||
|
GAAP Tax expenses
|
$
|
1,583
|
$
|
350
|
$
|
4,552
|
$
|
1,061
|
||||||||
|
Non-cash tax adjustments
|
(630
|
)
|
(81
|
)
|
(2,373
|
)
|
(427
|
)
|
||||||||
|
Non-GAAP Tax expenses
|
$
|
953
|
$
|
269
|
$
|
2,179
|
$
|
634
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
(Unaudited)
|
Three months ended
September 30, |
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
|||||||||||||
|
GAAP net income (loss)
|
$
|
3,367
|
$
|
(863
|
)
|
$
|
7,423
|
$
|
(4,671
|
)
|
||||||
|
Stock-based compensation expenses
|
1,048
|
1,167
|
3,025
|
2,602
|
||||||||||||
|
Changes in indirect tax positions
|
-
|
1
|
3
|
2
|
||||||||||||
|
Leases – financial income
|
(364
|
)
|
(233
|
)
|
(1,007
|
)
|
(2,432
|
)
|
||||||||
|
Retired CEO compensation
|
-
|
-
|
-
|
(96
|
)
|
|||||||||||
|
Hostile attempt related costs
|
-
|
3,971
|
-
|
3,971
|
||||||||||||
|
Restructuring and other charges
|
-
|
-
|
897
|
-
|
||||||||||||
|
Acquisition- and integration-related
|
283
|
-
|
283
|
-
|
||||||||||||
|
Non-cash tax adjustments
|
630
|
81
|
2,373
|
427
|
||||||||||||
|
Non-GAAP net income (loss)
|
$
|
4,964
|
$
|
4,124
|
$
|
12,997
|
$
|
(197
|
) |
|||||||
|
GAAP basic net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
|
GAAP diluted net income (loss) per share
|
$
|
0.04
|
$
|
(0.01
|
)
|
$
|
0.09
|
$
|
(0.06
|
)
|
||||||
|
Non-GAAP basic and diluted net income (loss) per share
|
$
|
0.06
|
$
|
0.05
|
$
|
0.15
|
$
|
(0.00
|
)
|
|||||||
|
Weighted average number of shares used in computing GAAP
basic net income (loss) per share |
84,688,985
|
84,200,177
|
84,470,709
|
84,060,674
|
||||||||||||
|
Weighted average number of shares used in computing GAAP diluted net income (loss) per share
|
85,488,113
|
84,200,177
|
85,265,666
|
84,060,674
|
||||||||||||
|
Weighted average number of shares used in computing Non-GAAP diluted net income (loss) per share
|
87,228,483
|
85,970,107
|
86,897,235
|
84,060,674
|
||||||||||||