Ceragon Networks Ltd (NASDAQ:CRNT) has been in a corrective wave since its February highs of just over the $4/share area, but it may be time for traders to take note of the stock once again. It has been a very strong performer over the past 14 months, racking up as much as 225% during that period. And the current pullback has been steep, but still has not trespassed on the majority of those gains.
The stock found some big new interest on Wednesday as the company announced that, during Q2, it has received orders totaling more than $9 million for its IP-20 Platform and related services from a tier 1 multiservice operator in India. According to the release, this long-standing customer has placed orders totaling over $13 million during the first half of 2017 to increase 4G LTE network capacity and enhance subscriber experience across the nation.
Ceragon Networks Ltd (NASDAQ:CRNT) bills itself as a company that provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice, data, and multimedia services worldwide. Its wireless backhaul solutions use microwave technology to transfer telecommunication traffic between base stations, small sells, and the core of the service provider’s network.
The company also provides wireless fronthaul solutions that use microwave technology for communication between LTE/LTE-advanced base band digital unit stations and remote radio heads.
In addition, it offers IP-20 Platform solutions for various short-haul and long-haul applications, including FibeAir IP-20G and IP-20GX, FibeAir IP-20N/IP-20A, FibeAir IP-20C, FibeAir IP-20S, FibeAir IP-20E, FibeAir IP-20C HP, FibeAir IP-20LH, Evolution IP-20 LH, and PointLink. Further, the company provides network management system for managing large scale wireless back haul networks; and network and radio planning, site survey, solutions development, network rollout, maintenance, training, and other services.
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CRNT provides its services to smart-phone applications, such as Internet browsing, social networking, image sharing, music, and video applications; oil and gas companies; public safety network operators; business and public institutions; broadcasters; energy utilities; and private communications networks. The company sells its products through direct sales, original equipment manufacturers, resellers, distributors, and system integrators. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.
According to company materials, “CRNT is the #1 wireless backhaul specialist. We help operators and other service providers worldwide increase operational efficiency and enhance end customers’ quality of experience with innovative wireless backhaul solutions. Our customers include wireless service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 4G, mission-critical multimedia services and other applications at high reliability and speed. CRNT’s unique multicore technology provides highly reliable, high-capacity 4G wireless backhaul with minimal use of spectrum, power and other resources. It enables increased productivity, as well as simple and quick network modernization. We deliver a range of professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 460 service providers, as well as hundreds of private network owners, in more than 130 countries.”
As discussed above, the company has been finding new footing after a potentially healthy correction. The boost comes on news of strong sales related to a major Indian b2b custromer.
“India is experiencing a dramatic rise in wireless data usage and internet penetration rates, coupled with fierce competition for market share among operators,” said Ira Palti, president and CEO of Ceragon. “This is accompanied by the rapid decline in wireless and internet data costs over the past several years, allowing a very large part of the population to cross the digital divide. These factors pose significant challenges, depending on the carrier’s unique position in the market. The scope of our success in India can be attributed to our ability to meet a wide variety of scenarios. We are working together with this customer to rapidly expand capacity and improve existing coverage, while also ensuring the most efficient use of backhaul spectrum and significantly reducing operational costs.”
We’ve witnessed 10% during the past week in terms of shareholder gains in the listing. Market participants may want to pay attention to this stock. CRNT has evidenced sudden upward volatility on many prior occasions. Furthermore, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 21% over what the stock has registered over the longer term.
Currently trading at a market capitalization of $253.73M, CRNT has a significant war chest ($36.5M) of cash on the books, which stands against about $11.5M in total current liabilities. CRNT is pulling in trailing 12-month revenues of $309.8M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 27.1%. As more color becomes clear on the name, we will review the situation and update our take. For continuing coverage on shares of $CRNT stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $CRNT, either long or short, and we have not been compensated for this article.