Ceragon Networks (CRNT) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 18% YoY to $347.2M, exceeding guidance; Q4 revenue increased 20% YoY to $90.359M.

• FY non-GAAP operating income reached a record $29.0M.

Financial highlights

• Q4 revenue was $90.359M, versus $87.260M in Q3 2023 and $75.531M in Q4 2022; growth was 3.6% QoQ.

• Q4 GAAP operating income was $4.2M versus a $10.6M loss in Q4 2022; non-GAAP operating income was $7.8M.

• Q4 GAAP net loss was $1.203M, or $(0.01) per diluted share; non-GAAP net income was $3.742M, or $0.04 per diluted share.

• FY GAAP net income was $6.2M versus a $19.7M loss in 2022; FY non-GAAP net income was $16.7M, or $0.20 per diluted share.

Outlook and guidance

• FY 2024 revenue guidance is $385M–$405M, representing 11%–17% growth versus 2023 and including Siklu.

• Target non-GAAP operating margin is at least 10% at the revenue-guidance midpoint; expected outcomes include higher non-GAAP profit and positive free cash flow.

• Siklu is expected to be accretive to non-GAAP earnings by H2 2024.