Ceragon Networks Ltd., a provider of high-capacity LTE ready wireless backhaul solutions, has reported a drop in revenue in the first quarter ended March 31, 2009.

The company’s revenues for the first quarter of 2009 were $43.9 million, down 7 percent from $47.2 million for the first quarter of 2008 and down 23 percent from $56.8 million in the fourth quarter of 2008.

While giving details of the results, company officials said that the net income in accordance with US Generally Accepted Accounting Principles (GAAP) for the first quarter of 2009 was $0.2 million or $0.01 per basic and diluted share, compared to net income of $4.3 million in the first quarter of 2008, or $0.12 per basic share and $0.11 per diluted share.

On a non-GAAP basis, net income for the first quarter, excluding $789,000 of equity-based compensation expenses, was $1.0 million, or $0.03 per basic and diluted share. Non-GAAP net income for the first quarter of 2008 was $4.9 million, or $0.13 per basic and diluted share.

Gross margin on a GAAP basis in the first quarter of 2009 was 33.9% of revenues. Gross margin on a non-GAAP basis in the first quarter of 2009 was 34% of revenues.

Cash and cash investments at the end of the quarter were $93.5 million.

"Underlying long term growth drivers remain in place and we are encouraged by improving demand from expansion of GSM networks in India to accommodate record subscriber growth as well as signs of improving demand in North America ," said Ira Palti, president and CEO of Ceragon, in a statement.

At the same time, Palti said that the company is still cautious about the near term outlook due to poor visibility, lengthening sales cycles, and customers' continuing focus on retaining cash.

Palti said that in this environment, the company’s emphasis will continue to be on controlling costs and remaining as flexible as possible in order to react quickly, while preserving the capability to respond effectively when the pace of orders picks up.

Ceragon Networks Ltd. is a provider of high capacity wireless backhaul solutions that enable wireless service providers to deliver voice and premium data services, such as Internet browsing, music and video applications.

Ceragon's wireless backhaul solutions use microwave technology to transfer large amounts of network traffic between base stations and the infrastructure at the core of the mobile network.

Ceragon in April had announced that a leading North American wireless communications carrier has selected its advanced wireless Ethernet solutions.

Ceragon’s FibeAir IP-10 systems in combination with Ceragon’s High Power RF units will be deployed by the carrier to provide long-haul transport for high-speed data and voice services.

This deployment will support the carrier’s geographical expansion and network capacity enhancement. Initial orders are valued at over US$6 million, of which $5 million has been recorded as revenue.