Wireless backhaul specialist Ceragon Networks Ltd. (NASDAQ: CRNT) has been selected again by a tier 1 mobile operator in India, placing over USD 60m in new orders so far in 2017 to expand 4G LTE service coverage and increase network capacity, the company said.
In view of the delivery requirements for these orders and Ceragon´s understanding of the customer´s aggressive network expansion goals, the company´s preliminary expectation for revenues in the first half of 2017 has been increased by USD 20 to USD 25m, with most of the impact expected in the second quarter of 2017.
During its most recent results conference call in November 2016, management indicated that revenues were expected to stabilize in a quarterly range of around USD 75 to USD 80m over the next several quarters, with the possible exception of a seasonal dip (referring to typical seasonality in the first quarter).
Currently, the preliminary outlook for the second half of 2017 remains unchanged, and the company continues to expect revenues to average USD 75 to USD 80m per quarter in Q3 and Q4. Due to the expected shift in geographic mix, gross margin is expected to be below the company´s previous target of 34% during the first half of 2017 but, consistent with its focus on profitability, the company now expects gross profit in the first half of the year to be higher than its previous assumptions.
Therefore, these orders serve to increase management´s confidence that it can reach or exceed its previously stated goal of a 40% increase in non-GAAP net profit for 2017 compared to 2016.
The IP-20 Platform enables the operator to connect 4G LTE sites across the network, delivering HD multimedia services across India to subscribers. The new wave of IP-20 Platform wireless backhaul deployments aims to support the mobile operator´s goal to vastly increase 4G service coverage and increase network capacity.
Ceragon Networks helps operators and other service providers worldwide increase operational efficiency and enhance end customers´ quality of experience with innovative wireless backhaul solutions.