6-K/A

FORM 6-K/A

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 February 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 — _________________

Table of Contents

        This Form 6-K/A amends Form 6-K filed on February 17, 2004. Attached to the original Form 6-K was a press release containing unaudited financial information for the quarter and year ended December 31, 2003 for Ceragon Networks Ltd. This Form 6-K/A makes the following amendments to reflect the recognition of a non-cash charge for the year ended December 31, 2003 totaling $3,432,000 ($2,289,000 for the quarter ended September 30, 2003 and $1,143,000 for the quarter ended December 31, 2003) resulting from recording of a warrant at fair value. On October 31, 2002, the Company entered into a supplementary arrangement with one of its suppliers, according to which, the Company issued a warrant to the supplier to purchase an aggregate of 700,000 Ordinary shares of the Company. The Company recorded the carrying amount of the warrant at inception as a liability of $875,000. During November 2003, the supplier exercised the warrant by a cashless exercise into 699,624 Ordinary shares. Accordingly, the Company reclassified the fair value of the warrant at the date of exercise from a liability to equity. During 2003, as a result of the adoption and implementation of SFAS 150 “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity” (“FAS 150”) (effective at the beginning of the first interim period beginning after June 15, 2003) the Company recognized a non-cash charge in the financial statements. As a result, at and for the year ended December 31, 2003, the Company revised net loss to ($7,722,000), basic and diluted net loss per share to ($0.33), additional paid-in capital to $175,043,000 and accumulated deficit to ($126,026,000) and for the quarter ended December 31, 2003, the Company revised net loss to ($1,418,000) and basic and diluted net loss per share to ($0.06). This non-cash charge had no impact on first quarter 2004 operating results.

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: February 15, 2004		 CERAGON NETWORKS LTD.


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

Exhibit Description
         Revised Fourth Quarter and Fiscal Year 2003 Financial Results

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

Three months ended
December 31,
 Year ended
December 31,
2003
 2002
 2003
 2002
Unaudited
 Unaudited
Revenues     $ 10,167   $ 6,071   $ 34,421   $ 18,394  
Cost of revenues    5,919    3,974    20,646    12,791  
Gross profit    4,248    2,097    13,775    5,603  
Operating expenses:  
  Research and development    2,321    2,362    8,946    9,143  
  Less: grants and participations    563    544    1,976    1,870  
  Research and development, net    1,758    1,818    6,970    7,273  
  Selling and marketing, net    2,460    2,310    9,437    9,130  
  General and administrative    573    510    2,167    2,031  
  Amortization of deferred stock  
   compensation (a)    244    575    1,354    2,974  
  Non-recurring expenses (income),  
  net    (167 )  83    (704 )  83  
Total operating expenses    4,868    5,296    19,224    21,491  
Operating loss    (620 )  (3,199 )  (5,449 )  (15,888 )
Financial income, net    345    292    1,159    1,528  
Other financial expenses - non cash  
  charge relating to puttable warrant    (1,143 )  0    (3,432 )  0  
Net loss   $ (1,418 ) $ (2,907 ) $ (7,722 ) $ (14,360 )
Basic and diluted net loss per  
share   $ (0.06 ) $ (0.13 ) $ (0.33 ) $ (0.64 )
Weighted average number of shares  
  used in computing basic and  
  diluted net loss per share    24,022,189    22,498,846    23,063,160    22,375,939  
(a)  
Amortization of deferred stock  
compensation relates to the  
following:  
         Cost of revenues   $ 23   $ 47   $ 109   $ 214  
         Research and development, net    73    177    400    958  
         Selling and marketing, net    99    210    530    1,072  
         General and administrative    49    141    315    730  
Total amortization of deferred  
         stock compensation   $ 244   $ 575   $ 1,354   $ 2,974  

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

December 31,
2003
 2002
Unaudited
    ASSETS            
CURRENT ASSETS:  
  Cash and cash equivalents   $ 7,307   $ 4,688  
  Short-term bank deposits    10,556    10,853  
  Marketable securities    4,861    11,743  
  Trade receivables, net    5,056    4,329  
  Other accounts receivable and prepaid expenses    2,892    1,268  
  Inventories    11,103    8,054  
Total current assets    41,775    40,935  
LONG-TERM INVESTMENTS:  
  Long-term bank deposits    1,473    4,214  
  Long-term marketable securities    14,849    11,675  
  Severance pay funds    1,664    1,200  
Total long-term investments    17,986    17,089  
PROPERTY AND EQUIPMENT, NET    2,667    3,616  
Total assets   $ 62,428   $ 61,640  
    LIABILITIES AND SHAREHOLDERS' EQUITY  
CURRENT LIABILITIES:  
Trade payables   $ 5,662   $ 5,744  
Other accounts payable and accrued expenses    5,632    4,805  
Total current liabilities    11,294    10,549  
ACCRUED SEVERANCE PAY    2,451    1,825  
SHAREHOLDERS' EQUITY:  
  Share capital:  
  Ordinary shares of NIS 0.01 par value: Authorized: 40,000,000  
    shares as of December 31, 2002 and December 31, 2003; Issued  
    and outstanding: 22,578,346 shares and 24,675,313 shares as  
    of December 31, 2002 and December 31, 2003, respectively    61    56  
  Additional paid-in capital    175,043    169,286  
  Deferred stock compensation    (395 )  (1,772 )
  Accumulated deficit    (126,026 )  (118,304 )
Total shareholders' equity    48,683    49,266  
Total liabilities and shareholders' equity   $ 62,428   $ 61,640  

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This report 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.