ROSH HA'AIN, Israel - Ceragon Networks Ltd. (NASDAQ: NASDAQ:CRNT), a prominent provider of 5G wireless transport solutions, announced its financial results for the fourth quarter ended December 31, 2023, with revenues rising 20% to $90.4 million from $75.5 million in the same quarter last year. The company's Q4 earnings per share (EPS) reached $0.04, surpassing analyst expectations by $0.02. Despite the positive earnings report, Ceragon's stock fell 2.4% due to its revenue guidance for the upcoming year being lower than anticipated.
Ceragon's full-year revenue for 2023 increased by 18% to $347.2 million, exceeding the company's guidance. The acquisition of Siklu, completed on December 4, 2023, contributed modestly to the quarter's revenue, aligning with expectations. The company's non-GAAP operating income for the year hit a record $29.0 million, with a non-GAAP net income of $16.7 million, or $0.20 per diluted share.
CEO Doron Arazi commented on the company's performance, stating, "Ceragon delivered revenue growth that exceeded our full-year outlook and record full-year non-GAAP operating income. We are encouraged with the recent acquisition of Siklu bolstering our position in the fastest-growing verticals of our market, and continued strong demand for our solutions." Arazi also highlighted the company's expansion in private network markets and its ability to unlock meaningful operating leverage.
Looking ahead to 2024, Ceragon anticipates revenues between $385 million and $405 million, representing an 11% to 17% increase over 2023. The guidance includes contributions from Siklu, with non-GAAP operating margins expected to be at least 10% at the mid-point of the revenue guidance. This outlook suggests increased non-GAAP profit and positive free cash flow for the full year.
Ceragon's strong bookings in North America and India, driven by demand for 5G capabilities and network modernization projects, have been key growth drivers. The company's gross profit for Q4 2023 was $31.1 million, resulting in a gross margin of 34.4%, compared to 32.5% in the same quarter the previous year.
The stock's decline reflects investor concerns over the company's future revenue prospects, despite Ceragon's strong performance in the fourth quarter and full year of 2023. Ceragon's management remains optimistic about their market position and the demand for their solutions, supported by the strategic acquisition of Siklu and growth in key regions.
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