6-K

FORM 6-K/A

SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

REPORT OF FOREIGN ISSUER

Pursuant to Section 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of October 2003

CERAGON NETWORKS LTD.
(Translation of registrant’s name into English)
24 Raoul Wallenberg Street, Tel Aviv 69719, Israel
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No x

If “Yes” is marked, indicate below the file number assigned to the registration in connection with Rule 12g3(b): 82 – _________________

Table of Contents

        This Form 6-K/A amends Form 6-K filed on October 30, 2003. Attached to the original Form 6-K was a press release containing unaudited financial information for the three months and nine months ended September 30, 2003 and the year ended December 31, 2002 for Ceragon Networks Ltd. This Form 6-K/A makes the following amendments to reflect the recognition of a non-cash charge for the quarter ended September 30, 2003 totaling $2,289,000 resulting from recording a warrant at fair value. On October 31, 2002, the Company entered into a supplementary arrangement with one of its suppliers, according to which, the Company issued a warrant to the supplier to purchase an aggregate of 700,000 Ordinary shares of the Company. The Company recorded the carrying amount of the warrant at inception as a liability of $875,000. During November 2003, the supplier exercised the warrant by a cashless exercise into 699,624 Ordinary shares. Accordingly, the Company reclassified the fair value of the warrant at the date of exercise from a liability to equity. During 2003, as a result of the adoption and implementation of SFAS 150 “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity” (“FAS 150”) (effective at the beginning of the first interim period beginning after June 15, 2003) the Company recognized a non-cash charge in the financial statements. As a result, at and for the nine months ended September 30, 2003, the Company revised net loss to ($6,304,000), basic and diluted net loss per share to ($0.28), other accounts payable and accrued expenses to $7,094,000, total current liabilities to $13,335,000, accumulated deficit to ($124,608,000) and total shareholders’ equity to $44,446,000 and for the three months ended September 30, 2003, the Company revised net loss to ($2,982,000) and basic and diluted net loss per share to ($0.13). This non-cash charge had no impact on first quarter 2004 operating results.

Signature

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




Date: October 30, 2003		 CERAGON NETWORKS LTD.


BY: /S/ Shraga Katz
——————————————
Shraga Katz
President

Exhibit Description
        Revised Third Quarter and Nine Month Period Ended September 30, 2003 Financial Results

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data

Nine months ended
September 30,
 Three months ended
September 30,
 Year ended
December 31,
2003
 2002
 2003
 2002
 2002
Unaudited
Revenues     $ 24,254   $ 12,323   $ 9,114   $ 5,047   $ 18,394  
Cost of revenues    14,727    8,817    5,385    3,507    12,791  
Gross profit    9,527    3,506    3,729    1,540    5,603  
Operating expenses:  
  Research and development    6,625    6,781    2,228    2,285    9,143  
  Less: participation by the Chief  
    Scientist of the Government of  
    Israel    1,413    1,326    472    480    1,870  
  Research and development, net    5,212    5,455    1,756    1,805    7,273  
  Selling and marketing    6,977    6,820    2,343    2,236    9,130  
  General and administrative    1,594    1,521    552    480    2,031  
  Amortization of deferred stock  
    compensation (a)    1,110    2,399    308    679    2,974  
  Non-recurring expenses (income),  
    net    (537 )  -    (222 )  -    83  
Total operating expenses    14,356    16,195    4,737    5,200    21,491  
Operating loss    (4,829 )  (12,689 )  (1,008 )  (3,660 )  (15,888 )
Financial income, net    814    1,236    315    369    1,528  
Other financial expenses - non  
  cash charge relating to  
  puttable warrant    (2,289 )  0    (2,289 )  0    0  
Net loss   $ (6,304 ) $ (11,453 ) $ (2,982 ) $ (3,291 ) $ (14,360 )
Basic and diluted net loss per share   $ (0.28 ) $ (0.51 ) $ (0.13 ) $ (0.15 ) $ (0.64 )
Weighted average number of shares  
  used in computing basic and  
  diluted net loss per share    22,836,180    22,334,970    23,118,719    22,425,096    22,375,939  
  (a) Amortization of deferred  
       stock compensation relates to  
       the following:  
       Cost of revenues   $ 86   $ 167   $ 24   $ 49   $ 214  
       Research and development    328    781    95    218    958  
       Selling and marketing    430    862    115    238    1,072  
       General and administrative    266    589    74    174    730  
      Total amortization of deferred  
       stock compensation   $ 1,110   $ 2,399   $ 308   $ 679   $ 2,974  

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CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data

September 30,
2003
 December 31,
2002
Unaudited
ASSETS            
CURRENT ASSETS:  
  Cash and cash equivalents   $ 7,628   $ 4,688  
  Short-term bank deposits    10,279    10,853  
  Marketable securities    6,255    11,743  
  Trade receivables, net    5,238    4,329  
  Other accounts receivable and prepaid expenses    2,341    1,268  
  Inventories    8,901    8,054  
Total current assets    40,642    40,935  
LONG-TERM INVESTMENTS:  
  Long-term marketable securities    969    11,675  
  Long-term bank deposits    14,175    4,214  
  Severance pay funds    1,550    1,200  
Total long-term investments    16,694    17,089  
PROPERTY AND EQUIPMENT, NET    2,773    3,616  
Total assets   $ 60,109   $ 61,640  
LIABILITIES AND SHAREHOLDERS' EQUITY  
CURRENT LIABILITIES:  
  Trade payables   $ 6,241   $ 5,744  
  Other accounts payable and accrued expenses    7,094    4,805  
Total current liabilities    13,335    10,549  
ACCRUED SEVERANCE PAY    2,328    1,825  
SHAREHOLDERS' EQUITY:  
  Share capital    169,054    167,570  
  Accumulated deficit    (124,608 )  (118,304 )
Total shareholders' equity    44,446    49,266  
Total liabilities and shareholders' equity   $ 60,109   $ 61,640  

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This report may contain statements concerning Ceragon’s future prospects that are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include: Ceragon’s limited operating history and history of losses; Ceragon’s dependence on a limited number of key customers, independent manufacturers and suppliers; and the demand for Ceragon’s products and technology. These risks and uncertainties, as well as others, are discussed in greater detail in Ceragon’s Annual Report on Form 20-F and Ceragon’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made.