Ceragon Networks Ltd 6-K, filed Aug 3, 2020

Ceragon Networks Ltd (CRNT)

6-K 2020-08-03 For: 2020-08-03

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Added on July 07, 2026

About this 6-K

Ceragon Networks Ltd filed this 6-K on August 3, 2020.

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	CERAGON NETWORKS LTD.

Date: August 3, 2020	By:	/s/ Ran Vered
		Name: Ran Vered
		Title: Chief Financial Officer

• Europe:	21%
• Africa:	4%
• North America:	15%
• Latin America:	19%
• India:	22%
• APAC	19%

	Three months ended June 30,					Six months ended June 30,
	2020			2019		2020			2019

Revenues	$	62,427		$	73,001	$	118,298		$	142,164
Cost of revenues		45,925			46,640		87,786			91,171

Gross profit		16,502			26,361		30,512			50,993

Operating expenses:
Research and development, net		6,770			6,254		14,060			12,418
Selling and marketing		8,200			10,121		16,473			19,583
General and administrative		4,985			5,854		9,441			11,636

Total operating expenses	$	19,955		$	22,229	$	39,974		$	43,637

Operating income (loss)		(3,453	)		4,132		(9,462	)		7,356

Financial expenses and others, net		1,464			1,830		1,772			2,939

Income (loss) before taxes		(4,917	)		2,302		(11,234	)		4,417

Taxes on income		400			1,398		780			2,532
Equity loss in affiliates		160			141		343			314

Net income (loss)	$	(5,477	)	$	763	$	(12,357	)	$	1,571

Basic net income (loss) per share	$	(0.07	)	$	0.01	$	(0.15	)	$	0.02
Diluted net income (loss) per share	$	(0.07	)	$	0.01	$	(0.15	)	$	0.02

Weighted average number of shares used in computing basic net income (loss) per share		81,012,896			80,192,036		80,889,022			80,153,038

Weighted average number of shares used in computing diluted net income (loss) per share		81,012,896			82,051,028		80,889,022			82,192,544

	June 30, 2020			December 31, 2019
ASSETS	Unaudited			Audited

CURRENT ASSETS:
Cash and cash equivalents	$	35,167		$	23,939
Trade receivables, net		97,547			118,531
Other accounts receivable and prepaid expenses		12,935			11,033
Inventories		53,593			62,132

Total current assets		199,242			215,635

NON-CURRENT ASSETS:
Long-term bank deposits		16			17
Deferred tax assets		8,215			8,106
Severance pay and pension fund		5,748			5,661
Property and equipment, net		33,171			34,865
Intangible assets, net		8,113			7,898
Other non-current assets		17,592			17,707

Total non-current assets		72,855			74,254

Total assets	$	272,097		$	289,889

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Trade payables	$	54,357		$	59,635
Deferred revenues		2,537			1,734
Short-term loans		19,679			14,600
Other accounts payable and accrued expenses		24,463			28,399

Total current liabilities		101,036			104,368

LONG-TERM LIABILITIES:
Accrued severance pay and pension		10,509			10,709
Deferred revenues		6,265			6,265
Other long-term payables		6,958			8,126

Total long-term liabilities		23,732			25,100

SHAREHOLDERS' EQUITY:
Share capital:
Ordinary shares		215			215
Additional paid-in capital		419,483			418,062
Treasury shares at cost		(20,091	)		(20,091	)
Other comprehensive loss		(10,122	)		(8,666	)
Accumulated deficits		(242,156	)		(229,099	)

Total shareholders' equity		147,329			160,421

Total liabilities and shareholders' equity	$	272,097		$	289,889

	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Cash flow from operating activities:
Net income (loss)	$	(5,477	)	$	763		$	(12,357	)	$	1,571
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		2,680			2,318			5,384			4,438
Stock-based compensation expense		441			697			867			1,172
Decrease (increase) in trade and other receivables, net		5,094			(3,797	)		16,962			(10,188	)
Decrease (increase) in inventory, net of write off		5,529			(6,663	)		7,526			(20,813	)
Decrease (increase) in deferred tax asset, net		(85	)		646			(109	)		1,236
Increase (decrease) in trade payables and accrued liabilities		(865	)		(6,120	)		(8,995	)		9,463
Increase (decrease) in deferred revenues		(806	)		5,774			803			6,150
Other adjustments		155			(105	)		(288	)		(136	)
Net cash provided by (used in) operating activities	$	6,666		$	(6,487	)	$	9,793		$	(7,107	)

Cash flow from investing activities:
Purchase of property and equipment, net		(2,679	)		(2,716	)		(3,638	)		(6,707	)
Purchase of intangible assets, net		(36	)		(603	)		(279	)		(2,792	)
Proceeds from (repayment of) bank deposits		-			(20	)		-			920
Net cash used in investing activities	$	(2,715	)	$	(3,339	)	$	(3,917	)	$	(8,579	)

Cash flow from financing activities:
Proceeds from exercise of options		308			190			554			256
Proceeds from (repayment of) bank credits and loans, net		(13,176	)		8,900			5,079			8,900
Net cash provided by (used in) financing activities	$	(12,868	)	$	9,090		$	5,633		$	9,156

Translation adjustments on cash and cash equivalents	$	(36	)	$	23		$	(281	)	$	(10	)
Increase (decrease) in cash and cash equivalents	$	(8,953	)	$	(713	)	$	11,228		$	(6,540	)
Cash and cash equivalents at the beginning of the period		44,120			29,754			23,939			35,581
Cash and cash equivalents at the end of the period	$	35,167		$	29,041		$	35,167		$	29,041

	Three months ended						Six months ended
	June 30,						June 30,
	2020			2019			2020			2019

GAAP cost of revenues	$	45,925		$	46,640		$	87,786		$	91,171
Stock based compensation expenses		(33	)		(16	)		(60	)		(31	)
Changes in indirect tax positions		(1	)		(9	)		(2	)		(30	)
Non-GAAP cost of revenues	$	45,891		$	46,615		$	87,724		$	91,110

GAAP gross profit	$	16,502		$	26,361		$	30,512		$	50,993
Gross profit adjustments		34			25			62			61
Non-GAAP gross profit	$	16,536		$	26,386		$	30,574		$	51,054

GAAP Research and development expenses	$	6,770		$	6,254		$	14,060		$	12,418
Stock based compensation expenses		(10	)		(98	)		(99	)		(201	)
Non-GAAP Research and development expenses	$	6,760		$	6,156		$	13,961		$	12,217

GAAP Sales and Marketing expenses	$	8,200		$	10,121		$	16,473		$	19,583
Stock based compensation expenses		(168	)		(207	)		(268	)		(382	)
Non-GAAP Sales and Marketing expenses	$	8,032		$	9,914		$	16,205		$	19,201

GAAP General and Administrative expenses	$	4,985		$	5,854		$	9,441		$	11,636
Stock based compensation expenses		(230	)		(376	)		(440	)		(558	)
Non-GAAP General and Administrative expenses	$	4,755		$	5,478		$	9,001		$	11,078

GAAP financial expenses and others, net	$	1,464		$	1,830		$	1,772		$	2,939
Leases – financial income (expenses)		(110	)		(218	)		340			(192	)
Non-GAAP financial expenses and others, net	$	1,354		$	1,612		$	2,112		$	2,747

GAAP Tax expenses	$	400		$	1,398		$	780		$	2,532
Non cash tax adjustments		87			(654	)		72			(1,272	)
Non-GAAP Tax expenses	$	487		$	744		$	852		$	1,260

GAAP equity loss in affiliates	$	160		$	141		$	343		$	314
Other non-cash adjustments		(160	)		(141	)		(343	)		(314	)
Non-GAAP equity loss in affiliates	$	-		$	-		$	-		$	-

	Three months ended					Six months ended,
	June 30,					June 30,
	2020			2019		2020			2019

GAAP net income (loss)	$	(5,477	)	$	763	$	(12,357	)	$	1,571
Stock based compensation expenses		441			697		867			1,172
Changes in indirect tax positions		1			9		2			30
Leases – financial expenses (income)		110			218		(340	)		192
Non-cash tax adjustments		(87	)		654		(72	)		1,272
Other non-cash adjustment		160			141		343			314

Non-GAAP net income (loss)	$	(4,852	)	$	2,482	$	(11,557	)	$	4,551

GAAP basic net income (loss) per share	$	(0.07	)	$	0.01	$	(0.15	)	$	0.02

GAAP diluted net income (loss) per share	$	(0.07	)	$	0.01	$	(0.15	)	$	0.02

Non-GAAP basic and diluted net income (loss) per share	$	(0.06	)	$	0.03	$	(0.14	)	$	0.06

Weighted average number of shares used in computing GAAP basic net income (loss) per share		81,012,896			80,192,036		80,889,022			80,153,038

Weighted average number of shares used in computing GAAP diluted net income (loss) per share		81,012,896			82,051,028		80,889,022			82,192,544

Weighted average number of shares used in computing Non-GAAP diluted net income (loss) per share		81,012,896			82,249,605		80,889,022			82,475,897