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Ceragon Networks Ltd. (CRNT) Reports Strong Second Quarter Results – Discusses Increased Revenues and Raises FY08 Guidance

Shares of Ceragon Networks Ltd. (NASDAQ: CRNT), a global provider of high-capacity broadband wireless systems for next-generation networks, traded higher earlier this week after the company reported positive results for the second quarter. During the second quarter, which ended on June 30, 2008, revenues reached $55.2 million, an impressive 47.9 percent year-over-year increase from $37.3 million during the second quarter of 2007 and a 17 percent gain from $47.2 million in the first quarter of this year.

Reaching an all-time record revenue of $55 million, the company’s non-GAAP net income totaled $0.13 per diluted share, compared to net income of $0.12 per diluted share for the same period in 2007. According to Ceragon’s president and chief executive officer, Ira Palti, bookings remain very strong and the company continues to benefit from the growing worldwide demand for high-capacity technology, allowing global migration earlier than expected.

Although the results of the second quarter were positive, gross margin for the second quarter totaled 34 percent and the company’s operating margin was 7.8 percent, reflecting the lower gross margin. Looking into the remainder of the year, senior management expects gross margin to return to the 35 percent to 36 percent range in the fourth quarter and beyond. The company also expects third quarter revenues to range from $56 million to $60 million and senior management’s outlook for fiscal year 2008 is a 35 percent increase over last year’s revenues.

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