Wi-Fi company Ruckus Wireless’ revenues jumped 27% year-over-year to $57.2 million, but the company had expected even more and cited delayed deployments for not meeting its guidance for the first quarter of 2013.
Net income on a GAAP-basis was $300,000, down from $3.7 million in the year-ago quarter.
Selina Lo, president and CEO at Ruckus, said the company was “disappointed” and hadn’t experienced any major change in its competitive environment. Instead, she said, “revenue was impacted by delayed deployments by several service provider customers in the Americas, as well as challenging market conditions in China. We continue to engage with customers on these delayed projects and we are encouraged by our progress. In April, we have already received orders from several of these service providers, but are finding that some other projects are taking longer to realize than we previously expected.”
Lo said that Ruckus had yearly growth of 70% in the Americas and Europe, and that it was pleased with new service provider customer wins among tier-one operators, both domestic and international. Ruckus announced a new partnership with Sprint Nextel today, working with its Custom Network Solutions group to provide Wi-Fi as part of Sprint Nextel’s in-building wireless data portfolio for enterprise, federal and public sector customers. Ruckus said that it added 10 new service provider customers, including Mexico’s largest cable operator, in the first quarter. Enterprise customer wins during the quarter included 2,700 new end-customers, including Sandals Resorts International, the city of San Jose, Calif., and multiple arenas and stadiums.
Backhaul provider Ceragon Networks posted weaker revenues for the first quarter of 2013, earning $90.1 million, which was down 18% year-over-year and down 16% sequentially.
GAAP net loss was $14.1 million, almost double the $7.4 million loss that it recorded a year ago. Operating loss for the quarter was $8.7 million.
Ira Palto, president and CEO of Ceragon, said that the results “reflect longer sales cycles. … We are not seeing carriers cancelling or reducing the scope of their planned projects, and the delays in closing deals relate mainly to operator hesitation during a period of reevaluating business models with a network architecture transition on the horizon.
“Meanwhile, the response to our new product line from initial evaluations is very encouraging, and we expect to be able to capitalize on our leadership position beginning next year when the transition to new architectures expands beyond early adopters.”
Ceragon provides wireless backhaul, with its largest markets in Latin America (38% of revenue) and Europe (19% of revenue), with North America accounting for just 9%.
