August 16, 2012
Ceragon Networks Files Shelf Registration, Releases Q2 Results
By Rory Lidstone
TMCnet Contributing Writer
Wireless backhaul specialist Ceragon Networks announced Wednesday that it has filed a "shelf" registration statement on Form F-3 with the Securities and Exchange Commission (SEC (News - Alert)), which will allow the company to offer and sell in one or more public offerings up to $150 million worth of ordinary shares, warrants, debt securities or any combination of the three.
The shelf registration statement must first be declared effective by the SEC.
The specifics of any future offering, along with prices and terms, will be determined at the time of the offering, at which time it will be described in detail in a prospectus supplement. Until Ceragon's (News - Alert) shelf registration statement is declared effective by the SEC, the securities registered may not be sold, while any offers to buy them must be rejected.
In other words, a shelf offering will allow Ceragon to issue a public offering at the time it so chooses very quickly.
Ceragon Networks (News - Alert) also recently released its results for the second quarter of 2012 ended June 30. Revenue for the period reached $119.1 million – up 8percent from $110.4 million for the second quarter of 2011 and up 1 percent from $117.8 million in Q1 of this year.
Despite the company's growing revenue, GAAP net loss for the quarter was $1.0 million.
"We continued to grow in Q2, achieving all-time record revenues, better gross margin and improved profitability," Ira Palti, president and CEO at Ceragon, said in a recent statement. "Record bookings resulted in a book-to-bill ratio well above one. Our success in securing several large orders from Tier 1 operators expands our working capital needs. We believe this represents a temporary timing issue, which we have addressed by drawing down on our unused credit facilities. We expect to be able to continue to grow revenues and improve profitability and cash flow, even in light of growing macro headwinds."
Edited by Braden Becker
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