Wireless backhaul solutions provider Ceragon Networks Ltd. (CRNT), Monday, reported a marginal decrease in fourth-quarter profit as sales declined 6%. However, both earnings and sales were above market view. The company also said it targets 30% to 35% revenue growth for fiscal 2010, sending its shares up by over 6% in morning trade.
Net income for the fourth quarter of 2009 dropped to $2.13 million or $0.06 per share, from $2.74 million or $0.07 per share in the prior-year quarter.
After adjusting for $1.3 million equity-based compensation expenses, net income rose to $3.45 million from $3.33 million. On a per-share basis, adjusted net income remained unchanged at $0.09. On an average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.07 per share. Analysts' estimates typically exclude special items.
Net revenue declined to $53.36 million from $56.78 million, but beat 11 analysts' revenue estimate of $49.95 million.
For fiscal year 2009, net income plunged to $3.66 million or $0.10 per share, from $25.98 million or $0.68 per share.
Adjusted earnings for the year, which excludes a tax benefit of $11.2 million in the second quarter of 2008 as well as equity-based compensation expenses in the current year, fell to $7.26 million or $0.20 per share from $17.33 million or $0.45 per share. Fourteen analysts expected the company to report earnings of $0.18 per share.
Full-year revenues declined 15% to $184.22 million from $217.28 million, but came in higher than Street estimate of $180.80 million.
Looking forward, the company expects fiscal 2010 revenue to increase by 30% to 35% from fiscal 2009. "Increasingly, wireless carriers of all types are expecting backhaul vendors to deliver a complete network including a host of professional services. We will continue to invest, as we did in Q4, in more R&D, pre-sales, sales as well as services resources, particularly in North America, to accommodate the trend toward more turnkey projects," said Ira Palti, President and Chief Executive Officer of Ceragon.
CRNT shares are currently trading at $12.60, up 6.87% on the Nasdaq.
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