Ceragon Networks Reports Third Quarter 2009 Financial Results

Ceragon Networks Ltd. (NASDAQ and TASE: CRNT), a leading provider of high-capacity Ethernet and TDM wireless backhaul solutions, todayreported results for the third quarter which ended September 30, 2009.

Revenues for the third quarter of 2009 were $44.7 million,down 23% from $58.1 million for the third quarter of 2008 and up 6% from$42.2 million in the second quarter of 2009.

Net income in accordance with US Generally Accepted AccountingPrinciples (GAAP) for the third quarter of 2009 was $1.1 million or $0.03 perbasic share and diluted share, compared to net income of $3.5 million or$0.09 per basic and diluted share in the third quarter of 2008.

On a non-GAAP basis, net income for the third quarter,excluding $696,000 of equity-based compensation expenses, was $1.8 million,or $0.05 per basic and diluted share. Non-GAAP net income for the thirdquarter of 2008 was $4.2 million, or $0.11 per basic and diluted share.(Please refer to the accompanying financial table for reconciliation of GAAPfinancial information to non-GAAP).

Gross margin on a GAAP basis in the third quarter of 2009 was 31.8% ofrevenues. Gross margin on a non-GAAP basis in the third quarter of 2009 was31.9% of revenues.

Cash and cash investments at the end of the quarter were $99.8 million.

"As expected, Q3 reflected the beginning of a trend towardimproving revenues," said Ira Palti, President and CEO of Ceragon. "Based onstrong bookings again in Q3, we expect revenue growth to continue into nextyear, driven by ongoing demand for high capacity backhaul for cellularnetworks, particularly in the Asia Pacific region. In addition, our backlogis increasing, as we win more turnkey projects and successfully expand to awide variety of new customers." (C) 2009 Al Bawaba (www.albawaba.com)

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