Ceragon Networks
The wireless infrastructure installer reported sales of $60.9 million, 44% above the year-ago period but below the average analyst target of $61.3 million. Non-GAAP earnings came in at $0.13 per share, up from $0.03 a year ago and beating the Street's $0.11 consensus.
The drag on sales comes from India, where the government is implementing new security measures for data networks. Ceragon is still installing systems, but future orders are delayed for the time being. In effect, a generous portion of Ceragon's supposed sales have simply been pushed into future quarters. This goes a long way toward explaining the market reaction.
A tightly focused operation like Ceragon's or rival DragonWave's
I find it both amusing and encouraging to see Ceragon CEO Ira Palti comparing his company to the likes of LM Ericsson
Not bad company to keep, I'd say. There's a blatant difference of scale, of course. But if Ceragon keeps up the current growth rate, the comparison to Ericsson won't sound absurd in a couple of years.
Ceragon is a five-star CAPS stock and I'm heading over to reinforce that badge of honor with my own All-Star vote. Right this way, if you'd care to join me.