Ceragon Networks Ltd (NASDAQ:CRNT)
Shares of Ceragon Networks Ltd (NASDAQ:CRNT) spiked higher on huge volume after an India-based, Tier 1 Multiservice operator placed orders worth more than $9 million for the company’s IP-20 platform and related services. The stock was up 12.65% in Wednesday’s trading session to end the day at $2.85 a share. CRNT continued their rise in Thursday’s open.
Ceragon Multicore Technology
Prior to investors reacting to the new contract, Ceragon Networks Ltd (NASDAQ:CRNT) was on a downward trend after finding support at the $2.50 a share mark. Immediate support on the current upside run is at the $3 a share mark as the stock continues to trade in a tight $2.66-$2.90 trading range.
Ceragon Networks Ltd (NASDAQ:CRNT) is a leading provider of wireless backhaul solutions. The company provides its services to wireless service providers as well government agencies and utility companies. Its lead products are FibeAir IP-20 Platform and FibeAir IP-20 Assured Platform deployed by over 460 service providers.
The $9 Million plus contract in India builds another order worth more than $7 million for the IP-20 platform from a Tier 1 mobile operator in South America. The operator has placed orders worth more than $12 million since the start of the year as part of an effort that seeks to increase coverage and capacity.
India $9 million Deal
Ceragon Networks Ltd (NASDAQ:CRNT)’s multicore technologies are designed to enable fast nationwide 4G network coverage and capacity. The company client in India has so far placed orders worth more than $13 million for the IP-20 platform as it continues to increase its 4G LTE network capacity in a bid to enhance subscriber experience across the nation.
“The scope of our success in India can be attributed to our ability to meet a wide variety of scenarios. We are working together with this customer to rapidly expand capacity and improve existing coverage, while also ensuring the most efficient use of backhaul spectrum and significantly reducing operational costs,” said Ira Palti, Ceragon Networks Ltd (NASDAQ:CRNT) CEO.
The multi-service operator is currently accelerating wireless backhaul roll-out in India using the FibeAir IP-20 that uses one-quarter of spectrum to deliver Internet speeds of up to 1Gbps. India is currently experiencing an exponential increase in internet usage leading to fierce competition among operators for market share. Companies able to provide fast and reliable internet connections continue to command a huge following as competition heats up.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.