6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

REPORT OF FOREIGN ISSUER

Pursuant to Section 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of May 2004


CERAGON NETWORKS LTD.

(Translation of registrant’s name into English)


24 Raoul Wallenberg Street, Tel Aviv 69719, Israel

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x     Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If “Yes” is marked, indicate below the file number assigned to the registration in connection with Rule 12g3(b): 82 – _________________



Signature

                Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




Date: May 5, 2004
CERAGON NETWORKS LTD.


BY: /S/ Shraga Katz
——————————————
Shraga Katz
President and CEO

Exhibit Description
Press Release: Ceragon Networks® Announces First Profitable Quarter in Company’s History



Ceragon Networks® Announces First Profitable Quarter in Company’s History

Company Reports First Quarter 2004 Financial Results

        TEL AVIV, Israel, April 29, 2004 – Ceragon Networks Ltd. (NASDAQ: CRNT), www.ceragon.com, a global provider of high-capacity broadband wireless systems, today reported results for the first quarter, which ended March 31, 2004. The first quarter of 2004 was Ceragon’s tenth consecutive quarter of revenue growth and the first quarter in which the company reached profitability.

        Revenues for the quarter were $11.4 million, up from $7.0 million for the first quarter of 2003 and from $10.2 million for the fourth quarter of 2003. This represents an increase of 62% as compared to the first quarter of 2003, and an increase of 12.1% as compared to the fourth quarter of 2003.

        Gross profit for the first quarter of 2004 increased to $4.9 million, or 42.7% of revenues. This compares to gross profit for the first quarter of 2003 of $2.6 million, or 37% of revenues, and to gross profit for the fourth quarter of 2003 of $4.2 million, or 41.8% of revenues.

        The net profit computed in accordance with U.S. GAAP for the first quarter of 2004 improved for the tenth consecutive quarter, to $39 thousand, or $0.00 basic and diluted net profit per ordinary share. This compares to net loss for the first quarter of 2003 of $(2.1) million, or $(0.09) basic and diluted net loss per ordinary share, and to net loss for the fourth quarter of 2003 of $(275) thousand, or $(0.01) basic and diluted net loss per ordinary share. The company ended the first quarter of 2004 with $39 million in cash and liquid investments.

        “Ceragon has just completed a strategic quarter, in line with our long term vision, achieving our first-ever quarter of profitability. We are enhancing our technology leadership in the marketplace with the launching of our innovative FibeAir 1500P,” said Shraga Katz, president and CEO, Ceragon Networks Ltd. “and we will continue to focus on target markets and geographic expansion, providing the market with cutting edge wireless solutions. This strategy has proven itself quarter after quarter and I am confident, now that we have reached these significant goals, that we will take the company into yet another successful year.”

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Ceragon Reports First Quarter 2004 Results – 2

        A conference call discussing Ceragon’s results for the first quarter of 2004 will take place today, April 29, 2004, at 11:00 a.m. (EDT). Details can be found on Ceragon’s website at http://www.ceragon.com/site/Investor_events.asp. The live call and its replay will be accessible on Ceragon’s website. The replay will be available through May 3, 2004.

About Ceragon Networks Ltd.

        Ceragon Networks Ltd. (Nasdaq: CRNT), a pacesetter in broadband wireless networking systems, enables rapid and cost-effective high-capacity network connectivity for mobile cellular infrastructure, fixed networks, private networks and enterprises. Ceragon’s modular FibeAir™ product family operates across multiple frequencies from 6 to 38 GHz, supports integrated high-capacity services from 100 to 622 Mbps over SONET/SDH, ATM and IP networks, and offers innovative built-in add/drop multiplexing and encryption functionality to meet the growing demand for value-added broadband services. Ceragon’s FibeAir product family complies with North American and international standards and is installed with over 150 customers in more than 50 countries. More information is available at www.ceragon.com

Ceragon Networks,® CeraView,® and the FibeAir® design mark are registered trademarks of Ceragon Networks Ltd., and Ceragon™, FibeAir™, PolyView™, ConfigAir™, CeraMon™, EtherAir™, QuickAir™, QuickAir Partner Program™, QuickAir Partner Certification Program™, QuickAir Partner Zone™, EncryptAir™ and Microwave Fiber™ are trademarks of Ceragon Networks Ltd.

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Ceragon Reports First Quarter and Fiscal Year 2004 Results – 3

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data

Three months ended
March 31,

Year ended
December 31,

2004
2003
2003
Unaudited
Revenues     $ 11,397   $ 7,037   $ 34,421  
Cost of revenues    6,532    4,434    20,646  



Gross profit    4,865    2,603    13,775  



Operating expenses:  
  Research and development    2,186    2,172    8,946  
  Less - grants and participations    493    450    1,976  



  Research and development, net    1,693    1,722    6,970  
  Sales and marketing, net    2,735    2,364    9,437  
  General and administrative    524    510    2,167  
  Amortization of deferred stock  
   compensation (a)    158    451    1,354  
  Non-recurring income, net    -    (82 )  (704 )



Total operating expenses    5,110    4,965    19,224  



Operating loss    (245 )  (2,362 )  (5,449 )
Financial income, net    253    264    1,159  
Other income    31    -    -  



Net profit (loss)   $ 39   $ (2,098 ) $ (4,290 )



Basic and diluted net profit (loss)  
per share   $ 0.00   $ (0.09 ) $ (0.19 )



Weighted average number of shares  
  used in computing basic net  
  income (loss) per share    24,729,552    22,609,179    23,063,160  



   (a) Amortization of deferred stock   
         compensation relates to the   
         following:   
         Cost of revenues   $ 15   $ 37   $ 109  
         Research and development, net    44    136    400  
         Sales and marketing, net    75    171    530  
         General and administrative    24    107    315  



       Total amortization of deferred   
         stock compensation   $ 158   $ 451   $ 1,354  



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Ceragon Reports First Quarter and Fiscal Year 2004 Results – 4

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data

March 31,
2004

December 31,
2003

Unaudited
     ASSETS            
 CURRENT ASSETS:   
   Cash and cash equivalents   $ 9,602   $ 7,307  
   Short-term bank deposits    6,648    10,556  
   Marketable securities    5,937    4,861  
   Trade receivables, net    7,436    5,056  
   Other accounts receivable and prepaid expenses    2,608    2,892  
   Inventories    13,045    11,103  


 Total current assets     45,276    41,775  


 LONG-TERM INVESTMENTS:   
   Long-term bank deposits    5,115    1,473  
   Long-term marketable securities    11,671    14,849  
   Long-term receivables    300    -  
   Severance pay funds    1,686    1,664  


 Total long-term investments     18,772    17,986  


 PROPERTY AND EQUIPMENT, NET     2,654    2,667  


 Total assets    $ 66,702   $ 62,428  


     LIABILITIES AND SHAREHOLDERS' EQUITY   
 CURRENT LIABILITIES:   
 Trade payables   $ 8,652   $ 5,662  
 Other accounts payable and accrued expenses    6,351    5,632  
   
 Total current liabilities     15,003    11,294  


 ACCRUED SEVERANCE PAY     2,542    2,451  


 SHAREHOLDERS' EQUITY:   
   Share capital:  
   Ordinary shares of NIS 0.01 par value: Authorized: 40,000,000  
     shares as of December 31, 2003 and March 31, 2004; Issued  
     and outstanding: 24,675,313 shares and 24,783,791 shares as  
     of December 31, 2003 and March 31, 2004, respectively    61    61  
   Additional paid-in capital    171,844    171,611  
   Deferred stock compensation    (237 )  (395 )
   Accumulated other comprehensive income    44    -  
   Accumulated deficit    (122,555 )  (122,594 )


 Total shareholders' equity     49,157    48,683  


 Total liabilities and shareholders' equity    $ 66,702   $ 62,428  


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Ceragon Reports First Quarter and Fiscal Year 2004 Results – 5

This press release may contain statements concerning Ceragon’s future prospects that are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include: Ceragon’s limited operating history and history of losses; Ceragon’s dependence on a limited number of key customers, independent manufacturers and suppliers; and the demand for Ceragon’s products and technology. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon’s Annual Report on Form 20-F and Ceragon’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.


Contacts:

Daphna Golden
Ceragon Networks Ltd.
+972-3-645-5513
ir@ceragon.com

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