Ceragon Networks Lowers Q1 Revenue Forecasts on Delayed Shipments

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Ceragon Networks has lowered its revenue projections for the first quarter which it said was primarily due to a decision not to ship and install equipment for a certain customer until completing the renegotiation of payment terms.

The company now expects to generate revenues for the first quarter of 2014 in the range of $70 million to $73 million, below the company's earlier guidance of $83 million to $93 million

A secondary factor affecting Q1 revenue was a higher than expected proportion of IP-20 products in Q1 bookings. Some of the orders were received too late in the quarter to ship within the quarter because manufacturing for the new products was ramping and had not reached full productivity.

The company also announced a settlement agreement pursuant to which it expects to receive $17 million in cash during the second quarter of 2014.

"Our revised revenue expectations for the first quarter are unrelated to demand, which is improving," said Ira Palti, President and CEO of Ceragon. "Bookings increased over 25% sequentially in Q1, to a level above the high end of our original revenue guidance. Thus, our book-to-bill ratio improved significantly, even though Q1 is typically a seasonally weaker quarter for bookings."

Final results for the first quarter will be released on May 8, 2014.

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