Ceragon Networks restructures to integrate Nera; align operations with market requirements

Wireless backhaul specialist Ceragon Networks Ltd. today announced detailed plans to optimize its organizational structure following the acquisition of Norway’s Nera Networks in January 2011. The new organizational structure consists of three solution groups: Short Haul Solutions, Long Haul Solutions and Projects & Services. These groups will be supported by a global sales organization. Dedicated resources within each group will provide Ceragon with the ability to respond quickly with the best solution and stay close to its customers.

Wireless backhaul specialist Ceragon Networks Ltd. today announced detailed plans to optimize its organizational structure following the acquisition of Norway’s Nera Networks in January 2011. The new organizational structure consists of three solution groups: Short Haul Solutions, Long Haul Solutions and Projects & Services. These groups will be supported by a global sales organization. Dedicated resources within each group will provide Ceragon with the ability to respond quickly with the best solution and stay close to its customers. As part of this process, Ceragon will reduce its workforce by approximately 200 full-time positions, which will enable the company to achieve its target level of operating expense in the combined business.

Ceragon’s high capacity wireless backhaul solutions are designed to enable cellular operators and other wireless service providers to deliver 2G/3G and LTE/4G voice and data services that enable smart-phone applications such as Internet browsing, music and video. Nera makes microwave radio systems.

Ira Palti, President and CEO of Ceragon Networks said that the complementary nature of the two companies is one of the major benefits of merging with Nera. “In combining the two organizations, our challenge is to capitalize on these complementary characteristics, while also identifying sufficient synergies to reach an appropriate operating expense level for the company,” Palti said. “During the integration, we identified the areas where Nera is adding a higher level of operating expenses — and we also have been able to identify a similar amount of additional efficiencies. Therefore, we are retaining our original target for operating expenses once the integration is completed.”

Ceragon will cut about 200 full-time jobs as it integrates the acquired company into its business. “It is always difficult to lose talented people, even as a result of job redundancies,” Palti said. “This move will enable Ceragon to achieve our objective of creating a fully-integrated global organization, consisting of 1,200 employees, strategically aligned to focus on our customer needs.”

The Short Haul Solutions group will focus on products and solutions in the Access and Aggregation backhaul segments. This group will be led by Hagai Zyss, previously Ceragon’s EVP of Research & Development.

The Long Haul Solutions group will focus on trunk and multi-carrier solutions for long haul and wireless backbone applications. This group will be led by Eyal Assa, previously Ceragon’s EVP & COO Sales.

The Projects & Services group will focus on providing a complete turnkey project offering including engineering, installation, commissioning and project management services. This group will be led by Ole Lars Oye, previously the Senior Vice President, Global Projects at Nera Networks.

Supporting these three groups will be a Corporate Marketing organization lead by Udi Gordon. Worldwide sales will be organized under the Global Business organization led by Eran Westman in six geographies.

As reported by Canadian Business Online today, Ceragon shares gained 7 cents to $11.11 in afternoon trading.