Ceragon Networks Ltd (NASDAQ:CRNT), the #1 wireless backhaul specialist, recently announced that a leading mobile operator in the Southern Cone of South America is continuing its multi-country, large scale 4G LTE expansion and modernization project using the IP-20 Platform. Following a successful rollout in 2015, this longstanding Ceragon customer placed follow-up orders totaling over $4.9 million, year to date, that began shipping in Q1 2016.
The South Cone operator utilizes Ceragon’s solutions for its wireless backhaul needs across the network. Its decision to select the IP-20 Platform is based on Ceragon’s proven ability to quickly deliver 4G backhaul capacity across multiple countries and maximize service availability.
Ceragon’s FibeAir IP-20 Platform enables simple network modernization and expansion, as well as offers the operator the shortest time to market of its 4G services, thereby maximizing its 4G service revenue potential. The Ceragon solution additionally allows the operator to enhance its customers’ quality of experience via its exceptional high capacity and proven reliability. With its low footprint solutions, Ceragon enables the operator to save on site real-estate costs, which optimizes its infrastructure investment, delivers significant CAPEX and OPEX savings, and ensures long term scalability with ample site headroom.
“We are pleased to receive repeat orders from this longstanding customer as it confirms our products meet its high performance standards and allows it to achieve the highest value” said Ira Palti, president and CEO of Ceragon. “Our advanced IP-20 Platform is not only quick and simple to implement, but delivers ultra-high capacity at minimal expense and with minimal service interruption as the network modernization takes place – which is exceptional. It is rewarding to contribute to our customers’ ongoing expansion and business success.”
If you’ve been following Ceragon over the past 12 months, you’ll know that this is continuing good news for the company whose share price has risen by over 27%.
For me, Ceragon still represents great value. We currently have the company at #23 in the Small and Micro Cap Screener. The company has a market cap of $116 million, it has an excess of cash over debt of $12 million, giving it an Enterprise Value of $104 million. Operating earnings are $17 million therefore, Ceragon has an Acquirer’s Multiple of 5.95. The company is trading on a P/E of 14.89 and a FCF/EV yield of 24%.
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