Ceragon Networks Ltd. (CRNT) has reported 70.64 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.13 million in the quarter, compared with $0.44 million for the same period last year. On an adjusted basis, net profit for the quarter was $0.86 million, when compared with $0.15 million in the last year period.

Revenue during the quarter grew 27.05 percent to $76.02 million from $59.83 million in the previous year period. Gross margin for the quarter contracted 624 basis points over the previous year period to 29.34 percent. Total expenses were 97.43 percent of quarterly revenues, down from 97.94 percent for the same period last year. This has led to an improvement of 51 basis points in operating margin to 2.57 percent.

Operating income for the quarter was $1.96 million, compared with $1.23 million in the previous year period.

"Q1 was in line with expectations and we increased our net cash position to $25 million, using our free cash flow to further reduce our debt," said Ira Palti, president and chief executive officer of Ceragon. "Our book-to-bill ratio was substantially above 1:1 in the first quarter. Our gross margin fluctuates from quarter to quarter, mainly based on geographic mix of revenue."

The company has spent $2.31 million cash to meet investing activities during the quarter as against cash outgo of $2.23 million in the last year period.

The company has spent $5.43 million cash to carry out financing activities during the quarter as against cash outgo of $5.07 million in the last year period.

Cash and cash equivalents stood at $36.46 million as on Mar. 31, 2017, down 12.87 percent or $5.38 million from $41.84 million on Mar. 31, 2016.