Wireless backhaul solutions provider Ceragon Networks Ltd (NASDAQ:CRNT) raced higher on Monday after it reported its third quarter earnings.
The stock jumped 10.92% to close at $2.54 on higher-than-average volume of 798.93K shares.
Technically, Ceragon gapped higher right out of the gate on Monday and touched a high of $2.60 before closing at $2.54. That close was above both the 20-day and 50-day moving averages.
On the weekly chart the stock is trading inside a symmetrical triangle and could break out in either direction.
Ceragon Networks Ltd (NASDAQ:CRNT) reports a high net income
For its third quarter, Ceragon reported EPS of $0.06 which beat by $0.02 and revenue of $79.13 million which beat by $1.56 million but was down 7.3% year on year.
Net income was $3.5 million against $1.4 million for the third quarter of 2015.
“We continue to reap the benefits of our strategic focus on delivering the most value to best-of-breed oriented customers,” said Ira Palti, president and CEO in a statement. “In Q3, we reported the highest net income in many quarters. We are targeting significant improvement in our net income in 2016, and further improvement in 2017 as well.”
Doron Arazi, CFO, said on the conference call: “We have a very strong product offering that continues to succeed in the market and our strategy of focusing on profitability deal by deal is working. Seeing the levels of our anticipated gross margin in our bookings during the last couple of quarters, we are raising our gross margin goals and we wouldn’t rule out the possibility of staying at an average gross margin near 34%, assuming a revenue level that is around $75 million to $80 million a quarter and subject to geographic mix.”
As at end-September, the company had $32.4 million in cash and cash equivalents.
In October, during the company’s fourth quarter, it received initial orders for its FibeAir IP-20 Platform of over $4 million from a Tier 1 US operator which selected Ceragon as its primary wireless backhaul supplier.