What happened
Shares of Ceragon Networks (CRNT +0.93%) dropped as much as 18% today after the company reported fourth-quarter earnings. The results were mixed compared to analyst expectations. As of 11:05 a.m. EST, the stock had partially recovered and was down 9%.
So what
Revenue in the fourth quarter came in at $74 million, ahead of the consensus estimate of $72.1 million. That translated into an adjusted net loss of $3.5 million, or $0.04 per share. Wall Street was expecting Ceragon to break even. The company said that it increased its number of 5G technology design wins from five to nine during the quarter.
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"Given the mass exodus to remote work, back-to-back lockdowns, and reduced travel, online services have become more important and in-demand than ever before," CEO Ira Palti said in a statement. "Fueled by this 'new normal,' there arose a strong global demand for connectivity which drove telcos to accelerate their evolution to 5G."
Now what
Ceragon expects to complete tape-out (finalizing the design process) of its advanced 5G hauling chipset in the first half of 2021. In terms of guidance, the company expects revenue in 2021 to be in the range of $275 million to $295 million, which would represent 5% to 12% growth compared to the $262.9 million in sales that it generated in 2020. However, the midpoint of that outlook is below the $289.2 million in revenue that analysts are modeling for.
