Ceragon Networks Ltd (NASDAQ:CRNT) Reports Contract Win

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Wireless backhaul specialist Ceragon Networks Ltd (NASDAQ:CRNT) announced it had been selected as the primary wireless backhaul supplier to a Tier 1 US operator, and that initial orders of over $4 million of Ceragon’s FibeAir IP-20 Platform had been received in Q4.

Ceragon shot up 21.82% is on Thursday and closed at $2.6 after 1.75 million shares changed hands, substantially above the average volume of 612.59K shares.

Ceragon counts amongst its customers wireless service providers, public safety organisations, government agencies and utility companies. These customers deliver 4G, mission-critical multimedia services and other applications and high reliability and speed.

Ceragon Networks Ltd (NASDAQ:CRNT) deployed to meet capacity demands

The Tier 1 US operator referred above is pursuing a network densification and optimisation strategy aimed at improving subscriber experience and the growing demand for capacity.

“We are delighted to partner with the operator to support its network strategy,” said Ira Palti, president and CEO of Ceragon. “Our IP-20 Platform is highly deployed worldwide and is second-to-none in the industry in terms of generating value to our customers through its high capacity, field-proven reliability and its versatility for use in any deployment scenario. We look forward to a successful long term partnership.”

Ceragon Networks Ltd (NASDAQ:CRNT) in Q2 2016

For its second quarter 2016, Ceragon reported EPS of $0.02 and revenue of $70 million, which was down 26% year-on-year, but up 17% sequentially from Q1.

“We are pleased to report sequentially higher revenues with continued strong growth margins and a return to breakeven results on a GAAP basis with a non-GAAP profit,” said Ira Palti, President and CEO. “We continue to generate positive cash flow and we used a portion of our healthy cash position to further reduce our debt; however, the headline of today’s call is the improvement in our bookings during Q2.”

Ceragon Networks Ltd (NASDAQ:CRNT) technical picture

With yesterday’s bullish move, the stock has broken out of a falling flag formation with high volume and may be about to resume its previous uptrend. Longer term, on the monthly chart, the stock has formed a rounding base pattern showing accumulation.

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