Ceragon: Quarterly Revenues Will Come Up Short

Plus500 says revenue tripled in the first quarter.

TowerJazz chip-fabrication plant.
TowerJazz

Ceragon Networks, a maker of equipment for wireless networks, on Wednesday sharply lowered its guidance for first-quarter revenues, citing a delay in a shipment to a key customer because it renegotiating payment terms. The company said it now expected sales for the three months to be in the range of $70 million to $73 million, down from its earlier guidance of $83 million to $93 million. Ceragon said orders for its new IP-20 products came too late in the quarter to be booked as revenue. On the positive side, Ceragon said it expected to receive $17 million in cash in a settlement connected with its January 2011 acquisition of Nera Networks. “Our revised revenue expectations for the first quarter are unrelated to demand, which is improving,” said CEO Ira Palti. Ceragon shares closed 1.7% higher in Tel Aviv at 10.10 shekels ($2.90). (TheMarker Staff)

Plus500 says revenue tripled in the first quarter

Plus500, an online platform for trading contracts for differences, or CFDs, reported on Wednesday that revenues jumped more than three-fold in the first quarter from a year earlier to $60.7 million. The company attributed the rise to a 48% increase in the number of active users to 50,438 in the three months, while the number of new users climbed 63% to 20,124. Average revenue per user more than doubled to $1,204, the company said. “The companies continues to see strong growth across Europe, especially the UK, where it is now among the top five online CFD trading providers.” Plus500 said it now expects to “exceed current market expectations for full-year revenue and profits in 2014.” Shares of Plus500, which have soared 575% since the company went public in London, rose 8.5% to 665 pence ($1.11 ). (Assa Sasson)

IC Power buys enters Colombian market

The Israel Corporation’s IC Power unit took another step toward expanding its Latin American generation business, entering the Colombian market for the first time by buying a 60% stake in a company providing electricity from gas-fired power stations. IC Power will pay $18 million for the stake in the unnamed company, which operates a handful of power stations and has other natural gas-related operations. IC said it plans to use the company as a springboard for expanding its operation. Separately, IC Power said it also won approval from Nicaragua to buy a stake in a local power company, AEI Nicaragua Holdings. Israel Corporation fell 0.8% in Tel Aviv Wednesday to finish at 1,965 shekels ($565). (Yoram Gabison)

TowerJazz launches JV with Panasonic

The semiconductor maker TowerJazz said on Tuesday it had launched its Japanese joint venture with the electronics giant Panasonic, and is closing its Japanese operations in its Nishiwaki plant to cut costs. Panasonic transferred its semiconductor manufacturing process and capacity tools for eight-inch and 12-inch wafers at its Hokuriku factories to the joint venture, which is 51%-owned by TowerJazz and is committed to buying the JV’s products for at least five years of volume production. The joint venture, which will be selling products to third-party customers as well, will boost its sales to more than $1 billion within four years, CEO Russell Ellwanger said in an interview with Bloomberg News. Shares of TowerJazz jumped 7.9% to close at 34.55 shekels ($9.93) in Tel Aviv Wednesday. (TheMarker Staff)

Tel Aviv shares extend gains, bonds drop

Tel Aviv shares extended their gains on Wednesday, boosted by positive economic data from China and the United States. The benchmark TA-25 index finished the session ahead 0.15% to 1,414,90 points, while the broader TA-100 rose 0.4% to 1,299.28, ready to breach the 1,300 mark. Turnover was 1.25 billion shekels ($360 million). Among the biggest gainers in the TA-100, Mazor Robotics rose 6.8% to close at 37.41 shekels and Africa Israel Investments advanced 6% to 8.78 shekels. The government’s 10-year shekel bond fell 0.47% to raise the yield to 3.32%, while the equivalent inflation-index bond dropped 0.32% to a yield of 1.15%. Amit Rosenzweig of Halman Aldubi said investors saw Bank of Israel Governor Karnit Flug’s remarks on mortgage growth as likely precluding further interest rate cuts. (Eran Azran)