Ceregon Networks LTD (NASDAQ–CRNT)

Valuation-$4.84

Price August 17, 2015-$1.46

CRNT has been in the middle of a restructuring that looks like it might finally take hold.

Latest earnings were for the second quarter ended 6/30/2015. Revenues were up 4.8% to $94.8 million from last year and they posted a GAAP profit of $.02 a share (fully taxed) versus $.15 last year (which included a $16.8 million one-time item). On a Non-GAAP basis they made $.04 a share versus a $.10 loss last year. They had cash of $40 million, but net cash was negative $.14 a share.

Trading at only 30% of our valuation we think this is a BUY.

There are about 77 million shares outstanding and it trades about 190,000 shares a day.

About CRNT: Ceragon Networks Ltd. (CRNT) is the #1 wireless backhaul specialist. We provide innovative, flexible and cost-effective wireless backhaul solutions that enable mobile operators and other service providers to deliver 4G/LTE, 3G/2G, and other wireless broadband services to their subscribers with high quality of experience. Our solution are deployed by public utilities, government and defense organizations for delivering mission critical multimedia and other applications at high reliability and speed. Ceragon’s high-capacity solutions use microwave technology to transfer multimedia, voice and data traffic while maximizing bandwidth efficiency, to deliver more capacity over longer distances under any deployment scenario. Based on our extensive global experience, Ceragon delivers turnkey solutions that support service provider profitability at every stage of the network lifecycle enabling faster time to revenue, cost-effective operation and simple modernization to all-IP networks. As the demand for multimedia services pushes the need for ever-increasing capacity, Ceragon is committed to serve the market with unmatched technology and innovation, ensuring effective solutions for the evolving needs of the marketplace. Our solutions are deployed by more than 430 service providers in over 130 countries.