Ceragon Networks higher, doubles Q3 profit
Shares of Ceragon Networks Ltd. (Nasdaq: CRNT) are rising on news before the start of trading that the Israel-based provider of wireless backhaul solutions doubled its third-quarter profit.
Net income for the three months ended Sept. 30 was $4.1 million, or $0.14 per share, an increase of 116%, compared with a net income of $1.9 million, or $0.07 per share, during the third quarter of 2006.
Revenues posted a smaller rise of 46% to $44.5 million, from $30.5 million a year earlier.
“We are pleased to report record results again in Q3,” said president and CEO Ira Palti in a statement. “Profits continued to grow faster than revenues and we reported $2 million in positive cash flow from operations.”
Looking ahead, Palti said that he expects Ceragon Networks to show revenue growth of between 47% and 50% in 2007, compared with 2006. That means that total revenues for 2007 will be between $159.38 million and $162.63 million. The company had revenues of $108.42 million in 2006.
At 11:26 a.m. ET, shares of Ceragon Networks (CRNT) had added $2.25, or 14%, to $18.50. The 52-week high of $21.89 was reached on Oct. 2, while the 52-week low of $4.66 was set on Oct. 23, 2006.
