Ceragon Networks Ltd.
(CRNT)
Akhil Kolluri & Mihir Srivastava
TJ Investment Club
4/8/2011
Background
•Networking company that provides
wireless solutions to service providers
•Customer base of 150 service providers
•100 countries
•Headquartered in Tel Aviv, Israel
•Founded in 1996
What They Do
•Wireless backhaul solutions
•Voice and premium data services
•FibeAir® product line
•Decrease capacity bottleneck
•Next generation IP networks
FibeAir
Click to add content
Video
Solutions
• Rural broadband
• WiMAX backhaul
• Government/Public safety
• Enterprise/Private networks
• Next-gen networks (e.g., 4G)
• LTE-Ready mobile backhaul
• Mobile Architecture for Service
Transport (MAST™)
US Presence
• New Evolution IP-10 CLH system
o Optimized for North America
• North American Management Team
• Office in NJ
SRI
• Ceragon's Quality Policy
• Ceragreen - certificate of environmental protection
• New FibeAir products are zero footprint
Competition
• DragonWave (DRWI)
o Not as large
o Limited distribution
o Less diverse customers
Numbers
•Current Price: 11.59
•52 week: 6.88 - 14.34
•Mkt cap: 387.53M
•P/E: 30.14
•EPS: 0.38
•Beta: 1.38
•As of 2:30 PM April 6, 2011
Graphs
Graphs
The "Bad" Stuff
• Cut 200 jobs
o to acquire Nera Networks
• Low margins
• High P/E
Recommendation
•Buy Market: $11.54
•Sell: $15.50
Reasons to Buy
•5 star CAPS rating
•Recently released Evolution IP-10 CLH system
•Networking industry expanding
•New technology
•Q1 earnings release May 16
•Given moderate buy, buy, or strong buy ratings
Reasons to Buy
• Compound annual growth rate (CAGR) 23.3% over last four years
despite volatility
• Emerging markets
o No ceiling for growth
o Asia/Pacific
 India
• Acquisition of Nera
o Short-wave
o Long-term benefits
• Customers in developed AND emerging nations
Analyst Ratings
• Outperform rating
o Oppenheimer
• Overweight rating
o Barclays Capital
o Brean Murray
• Given "Buy" or "Strong Buy" by many
Citations
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http://www.google.com/finance?q=NASDAQ:CRNT
http://www.ceragon.com/na/default.asp
http://en.wikipedia.org/wiki/Ceragon
http://caps.fool.com/Ticker/CRNT.aspx
http://www.ceragon.com/
http://www.americanbankingnews.com/2011/04/06/ceragon-networks-ltd-crnt-givenoutperform-rating-by-oppenheimer-opy-analysts/
http://finance.yahoo.com/q/ao?s=CRNT+Analyst+Opinion
http://www.ceragon.com/news_item.asp?ID=245
http://www.fool.com/investing/small-cap/2010/12/03/time-to-sell-ceragon-networks.aspx
http://seekingalpha.com/article/258502-ceragon-networks-a-telecom-diamond-in-therough?source=TheMotleyFool
http://www.selcoms.com/products/images/ceragon/Carrier%20Ethernet%20Systems/FibeAirIP10.png
http://finance.yahoo.com/news/Ceragon-Networks-cutting-apf-4173917631.html?x=0&.v=1