6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549        

FORM 6-K

REPORT OF  FOREIGN  PRIVATE  ISSUER  PURSUANT  TO RULE 13a-16  OR 15d-16 

UNDER THE  SECURITIES  EXCHANGE  ACT  OF  1934

For the month of September 2019

Commission File Number 0-30862

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 ☒          Form 40-F☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

EXPLANANTORY NOTE

Ceragon Networks Ltd. (the “Registrant”) is furnishing on this Form 6-K its unaudited interim consolidated financial statements for the six months ended June 30, 2019, and the related Operating and Financial Review and Prospects for such period. The Registrant is also furnishing the consent of its independent registered accounting firms to the incorporation by reference into Registrant’s Registration Statement on Form F-3 (No. 333-217194) of its opinion on the Registrant’s consolidated financial statements included in Registrant’s Annual Report on Form 20-F for the year ended December 31, 2018.

Exhibits

Exhibit Number 
Description

5.1
Consent of Independent Registered Public Accounting Firm.

5.2
Consent of Independent Registered Public Accounting Firm.

99.1 Unaudited financial statements of Ceragon Networks, Ltd. for the six months ended June 30, 2019.

99.2 Operating and Financial Review and Prospects for the six months ended June 30, 2019.

101 Interactive Data File relating to the materials in this report on Form 6-K is formatted in Extensible Business Reporting Language (XBRL).

This Report on Form 6-K and the exhibits hereto are hereby incorporated by reference into the Registrant’s Registration Statement on Form F-3 (No. 333-217194), as amended and supplemented from time to time.

SIGNATURES

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.

	CERAGON NETWORKS LTD. (Registrant)
Date: September 23, 2019	By:	/s/ Ran Vered
	Name:	Ran Vered
	Title:	Chief Financial Officer

EX-5.1

Exhibit 5.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the reference to our firm under the caption “Experts” in the Registration Statement (Form F-3, No. 333-217194) and related Prospectus of Ceragon Networks Ltd. and to the incorporation by reference therein of our reports dated March 31, 2019, with respect to the consolidated financial statements of Ceragon Networks Ltd. and the effectiveness of internal control over financial reporting of Ceragon Networks Ltd. included in its Annual Report (Form 20-F, as amended by the Form 20-F/A) for the year ended December 31, 2018, filed with the Securities and Exchange Commission.

Tel-Aviv September 23, 2019 /s/ Kost Forer Gabbay & Kasierer      Kost Forer Gabbay & Kasierer A Member of Ernst & Young Global

EX-5.2

Exhibit 5.2

We consent to the incorporation by reference in the Registration Statement (Form F-3, No. 333-217194) and related Prospectus of Ceragon Networks Ltd. of our report dated March 31, 2019, with respect to the consolidated financial statements of Ceragon America Latina Ltda. and the reference to our report on the effectiveness of internal control over financial reporting of Ceragon America Latina Ltda. included in its Annual Report (Form 20-F, as amended by the Form 20-F/A) for the year ended December 31, 2018, filed with the Securities and Exchange Commission.

São Paulo	Mazars Auditores Independentes S.S.
September 23, 2019

Mazars. Ao seu lado para

estar sempre à frente.

EX-99.1

Exhibit 99.1

CERAGON NETWORKS LTD. AND SUBSIDIARIES

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2019

U.S. DOLLARS IN THOUSANDS

UNAUDITED

INDEX

	Page
Consolidated Balance Sheets	2 - 3
Consolidated Statements of Operations	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Changes in Shareholders' Equity	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Interim Financial Statements	8 - 20

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	Note		December 31, 2018		June 30, 2019
					Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	35,581	$	29,041
Short - term bank deposits				515		-
Trade receivables (net of allowance for doubtful accounts of $ 4,327 and $ 3,746 at December 31, 2018 and June 30, 2019 (unaudited), respectively)				123,451		121,449
Other accounts receivable and prepaid expenses				12,135		13,783
Inventories		3		53,509		73,900
Total current assets				225,191		238,173
NON-CURRENT ASSETS:
Long-term bank deposits				504		29
Deferred tax assets				7,476		6,236
Severance pay and pension fund				5,096		5,574
Property and equipment, net				33,613		35,009
Intangible assets, net				6,576		7,670
Other non-current assets				4,544		15,822
Total non-current assets				57,809		70,340
Total assets			$	283,000	$	308,513

The accompanying notes are an integral part of the unaudited interim consolidated financial statements

2

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

	Note		December 31, 2018			June 30, 2019
						Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables			$	78,892		$	79,431
Deferred revenues				3,873			3,770
Short term loans				-			8,900
Other accounts payable and accrued expenses				27,256			26,385
Total current liabilities				110,021			118,486
LONG-TERM LIABILITIES:
Deferred tax liability				28			24
Accrued severance pay and pensions				9,711			10,053
Deferred revenues				-			6,265
Other long-term payables				3,672			9,926
Total long-term liabilities				13,411			26,268
COMMITMENTS AND CONTINGENT LIABILITIES		6
SHAREHOLDERS' EQUITY:		8
Share capital:
Ordinary shares of NIS 0.01 par value – Authorized: 120,000,000 shares at December 31, 2018 and  June 30, 2019 (unaudited); Issued: 83,571,181 and 83,711,656 shares at December 31, 2018 and June 30, 2019 (unaudited), respectively; Outstanding: 80,089,658 and 80,230,133 shares at December 31, 2018 and June 30, 2019 (unaudited), respectively.				214			215
Additional paid-in capital				415,408			416,835
Treasury shares at cost – 3,481,523 ordinary shares as of December 31, 2018 and June 30, 2019 (unaudited).				(20,091	)		(20,091	)
Accumulated other comprehensive loss				(9,208	)		(8,016	)
Accumulated deficits				(226,755	)		(225,184	)
Total shareholders' equity				159,568			163,759
Total liabilities and shareholders' equity			$	283,000		$	308,513

The accompanying notes are an integral part of the unaudited interim consolidated financial statements

3

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except per share data)

	Six months ended June 30,
	2018		2019
	Unaudited
Revenues	$	171,603	$	142,164
Cost of revenues		115,250		91,171
Gross profit		56,353		50,993
Operating expenses:
Research and development, net		14,035		12,418
Selling and marketing		20,931		19,583
General and administrative		9,649		11,636
Total operating expenses		44,615		43,637
Operating income		11,738		7,356
Financial expenses, net		4,680		2,939
Income before taxes		7,058		4,417
Taxes on income		1,762		2,532
Equity loss in affiliates		-		314
Net income	$	5,296	$	1,571
Basic net income per share	$	0.07	$	0.02
Diluted net income per share	$	0.07	$	0.02
Weighted average number of shares used in computing basic net income per share		78,155,810		80,153,038
Weighted average number of shares used in computing diluted net income per share		80,457,636		82,192,544

The accompanying notes are an integral part of the unaudited interim consolidated financial statements

4

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

U.S. dollars in thousands

	Six months ended June 30,
	2018			2019
	Unaudited
Net income	$	5,296		$	1,571
Other comprehensive income (loss):
Change in foreign currency translation adjustment		(1,018	)		63
Cash flow hedges:
Change in net unrealized gains (losses)		(1,440	)		1,214
Amounts reclassified into net income		262			(85	)
Net change		(1,178	)		1,129
Other comprehensive income (loss), net		(2,196	)		1,192
Total of comprehensive income	$	3,100		$	2,763

The accompanying notes are an integral part of the unaudited interim consolidated financial statements

5

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

U.S. dollars in thousands (except share and per share data)

	Ordinary shares		Share capital			Additional paid-in capital		Treasury shares at cost			Accumulated other comprehensive income (loss)			Accumulated deficit			Total shareholders' equity
Balance as of January 1, 2018		78,045,192	$	214		$	410,817	$	(20,091	)	$	(7,171	)	$	(249,871	)	$	133,898
Exercise of options and vesting of RSU's		2,044,466		*	)		2,611		-			-			-			2,611
Share-based compensation expense		-		-			1,980		-			-			-			1,980
Other comprehensive loss, net		-		-			-		-			(2,037	)		-			(2,037	)
Cumulative effect of adoption of ASC Topic 606		-		-			-		-			-			70			70
Net income		-		-			-		-			-			23,046			23,046
Balance as of December 31, 2018		80,089,658		214			415,408		(20,091	)		(9,208	)		(226,755	)		159,568
Exercise of options and vesting of RSU's		140,475		1			255		-			-			-			256
Share-based compensation expense		-		-			1,172		-			-			-			1,172
Other comprehensive income, net		-		-			-		-			1,192			-			1,192
Net income		-		-			-		-			-			1,571			1,571
Balance as of June 30, 2019 (Unaudited)		80,230,133	$	215		$	416,835	$	(20,091	)	$	(8,016	)	$	(225,184	)	$	163,759

*)          Represent an amount lower than $1.

The accompanying notes are an integral part of the unaudited interim consolidated financial statements

6

CERAGON NETWORKS LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

U.S. dollars in thousands

	Six months ended June 30,
	2018			2019
	Unaudited
Cash flow from operating activities:
Net income	$	5,296		$	1,571
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		3,501			4,438
Stock-based compensation expense		1,032			1,172
Increase in trade and other receivables, net		(109	)		(10,188	)
Decrease (increase) in inventory, net of write off		7,049			(20,813	)
Decrease in deferred tax asset, net		410			1,236
Increase (decrease) in trade payables and accrued liabilities		(10,237	)		9,463
Increase in deferred revenues		1,796			6,150
Other adjustments		(186	)		(136	)
Net cash provided by (used in) operating activities		8,552			(7,107	)
Cash flow from investing activities:
Purchase of property and equipment, net		(3,957	)		(6,707	)
Purchase of intangible assets, net		(1,336	)		(2,792	)
Proceeds from bank deposits		-			920
Net cash used in investing activities		(5,293	)		(8,579	)
Cash flow from financing activities:
Proceeds from exercise of stock options		374			256
Proceeds from bank credits and loans, net		-			8,900
Net cash provided by financing activities		374			9,156
Foreign currency translation adjustments on cash and cash equivalents		(112	)		(10	)
Increase (decrease) in cash and cash equivalents		3,521			(6,540	)
Cash and cash equivalents at the beginning of the period		25,877			35,581
Cash and cash equivalents at the end of the period	$	29,398		$	29,041

The accompanying notes are an integral part of the unaudited interim consolidated financial statements

7

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 1:- GENERAL

a. Ceragon Networks Ltd. ("the Company") is a wireless backhaul specialist. It provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services, enabling smart-phone applications such as internet browsing, social networking applications, image sharing, music and video applications. Its wireless backhaul solutions use microwave radio technology to transfer large amounts of telecommunication traffic between base stations and small-cells and the core of the service provider's network. The Company also provides wireless fronthaul solutions that use microwave technology for ultra-high speed, ultra-low latency communication between LTE/LTE-Advanced base band digital units stations and remote radio heads.

b. The Company's solutions support all wireless access technologies, including LTE-Advanced, LTE, HSPA, EV-DO, CDMA, W-CDMA and GSM. The Company's systems also serve evolving network architectures including all-IP long haul networks.

c. The Company sells its products through a direct sales force, systems integrators, distributors and original equipment manufacturers.

d. The Company's wholly owned subsidiaries provide research and development, marketing, manufacturing, distribution, sales and technical support to the Company's customers worldwide.

NOTE 2:- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Unaudited interim consolidated financial statements

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. In the management`s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s consolidated financial position as of June 30, 2019, as well as its results of operations and cash flows for the six months ended June 30, 2018 and 2019. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019.

b. Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates.

On an ongoing basis, the Company's management evaluates its estimates, including those related to accounts receivable, fair values and useful lives of intangible assets, fair values of stock-based awards, inventory write-off, warranty provision, income taxes, and contingent liabilities, among others. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and liabilities.

8

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 2:- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.)

c. Significant accounting policies

The accompanying unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC") on April 1, 2019.

Other than the change described below (see note 2d), there have been no changes to the significant accounting policies described in the Annual Report on Form 20-F for the fiscal year ended December 31, 2018 that have had a material impact on the unaudited interim consolidated financial statements and related notes.

d. Recently adopted accounting standards

1. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use (“ROU”) asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory.

The standard became effective for the Company beginning January 1, 2019. The adoption of the standard had material impact of the Company`s consolidated balance sheets due to the recognition of the ROU assets and lease liabilities related to the Company`s operating leases. The standard did not have a material impact on the Company`s results of operations or cash flows. See Note 7 “Leases” for details about the impact from adopting the new lease standard and other required disclosures.

2. In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the provisions of this update as of January 1, 2019 with no material impact on its consolidated financial statements.

9

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 3:- INVENTORIES

	December 31,		June 30,
	2018		2019
Raw materials	$	15,065	$	16,227
Work in progress		374		783
Finished products		38,070		56,890
	$	53,509	$	73,900

During the six-month ended June 30, 2018 and 2019 the Company recorded inventory write-offs for excess inventory and slow-moving inventory in a total amount of $ 1,106 and $ 1,112, respectively that have been included in cost of revenues.

NOTE 4:- FAIR VALUE MEASUREMENT

The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term deposits, restricted cash, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses and other liabilities, approximate their fair value due to the short-term maturities of such instruments.

The following table presents assets (liabilities) measured at fair value on a recurring basis as of June 30, 2019:

	June 30, 2019
	Fair value measurements using input type
	Level 2		Total
Derivatives instruments	$	460	$	460
Total assets	$	460	$	460

The following table presents assets (liabilities) measured at fair value on a recurring basis as of December 31, 2018:

	December 31, 2018
	Fair value measurements using input type
	Level 2			Total
Derivatives instruments	$	(1,028	)	$	(1,028	)
Total liabilities	$	(1,028	)	$	(1,028	)

10

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 5:- DERIVATIVE INSTRUMENTS

The Company enters into foreign currency forward and option contracts with financial institutions to protect against the exposure to changes in exchange rates of several foreign currencies that are associated with forecasted cash flows and existing assets and liabilities. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.

The fair value of derivative contracts in the unaudited consolidated balance sheets at June 30, 2019 and December 31, 2018 were as follows:

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	June 30, 2019
Derivatives designated as hedging instruments
Currency forward contracts	$	545	$	-
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	54	$	139
Total derivatives	$	599	$	139

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	December 31, 2018
Derivatives designated as hedging instruments
Currency forward contracts	$	3	$	587
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	2	$	446
Total derivatives	$	5	$	1,033

The notional amounts of outstanding derivative contracts in U.S. dollars at June 30, 2019 and December 31, 2018 were as follows:

	December 31, 2018		June 30, 2019
Derivatives designated as hedging instruments
Currency forward contracts	$	37,398	$	18,757
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	21,882	$	29,209
Total derivatives	$	59,280	$	47,966

The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is up to 12 months.

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in "financial income (expenses), net".

11

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 5:- DERIVATIVE INSTRUMENTS (Cont.)

The effect of derivative contracts on the unaudited consolidated statements of operations for the six months ended June 30, 2019 and 2018 was as follows:

	Six months ended June 30,
	2018			2019
Operating income (expenses)	$	(262	)	$	85
Financial income (expenses)	$	1,076		$	(559	)

NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES

a. Leases

See Note 7 “Leases” for lease related commitments as of June 30, 2019.

b. During the six months ended June 30, 2018 and 2019, the Company received several grants from the Israeli Innovation Authority (“IIA”). The grants require the Company to comply with the requirements of the Research and Development Law, however, the Company is not obligated to pay royalties on sales of products based on technology or know how developed from the grants. In a case involving the transfer of technology or know how developed from the grants outside of Israel, the Company may be required to pay royalties related to past sales of products based on the technology or the developed know how. The Company recorded the IIA grants as a reduction of research and development expenses in the six months ended June 30, 2018 and 2019 in the amount of $ 626 and $ 541, respectively.

c. Charges and guarantees:

As of December 31, 2018, and June 30, 2019, the Company provided bank guarantees in an aggregate amount of $ 72,842 and $ 66,020, respectively, with respect to tender offer guarantees, financial guarantees, warranty guarantees and performance guarantees to its customers (including bank guarantee disclosed in Note 6d).

d. In September 2018, the Company signed commercial agreements with Orocom, a new operator in Peru, to provide broadband connectivity in rural regions. The Peruvian Government (“Fitel”) chose Orocom for the deployment of transport and broadband access networks in three of six regions in Peru. Orocom is owned by a consortium of companies, comprising telecommunications license holders as well as companies with expertise in fiber-based technologies.

After signing the commercial agreements mentioned above and an operating agreement with Orocom and its shareholders, the Company provided, in the second quarter of 2018, bank guarantees amounting to $29.1 million, on behalf of Orocom to Fitel, to secure the return of a down payment to be received by Orocom, or part of it, in case Orocom fails to meet the down payment related obligations. These bank guarantees came into effect in July 2018, when a down payment of $29.1 million was received by Orocom. Orocom’s down payment related obligations include primarily meeting specifications and timelines as defined in the agreement between Orocom and Fitel, unless justified or otherwise agreed between these parties; using the funds provided by Fitel properly for the purpose of the project; and maintaining certain composition of shareholders in Orocom for at least three years. The Company’s bank guarantees may be gradually reduced as the network build-out process progresses. Should Orocom meet its down payment related obligations towards Fitel, the bank guarantees are expected to be returned to the Company on 2020.

12

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

Provisions of the operating agreement mentioned above, grant the Company certain protective rights in Orocom during the network build-out phase and until the bank guarantees are returned to the Company, as well as recovery rights against Orocom and its shareholders. These protective rights include, among others, two seats in Orocom’s board of directors that comprise half of the board seats; a requirement for receipt of consent by all board members to various decisions, including but not limited to, for the approval of any commitment exceeding one hundred thousand dollars; and full access to Orocom’s books and records and any other data, including audit rights. Based on the above, Orocom and its shareholders were defined as related companies.

e. Litigations:

The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss.

On January 6, 2015 the Company was served with a motion to approve a purported class action, naming the Company, its Chief Executive Officer and its directors as defendants. The motion was filed with the District Court of Tel-Aviv. The purported class action alleges breaches of duties by making false and misleading statements in the Company's SEC filings and public statements. The plaintiff seeks specified compensatory damages in a sum of up to $75,000 as well as attorneys’ fees and costs.

The Company filed its defense on June 21, 2015, and on October 22, 2015 the plaintiff filed a request for discovery of specific documents. The Company filed its response to the plaintiffs' request for discovery on January 25, 2016 and the plaintiffs submitted their response on February 24, 2016. On June 8, 2016, the District Court partially accepted the plaintiff's request for discovery and ordered the Company to disclose some of the requested documents. The Company's request to appeal this decision was denied by the Supreme Court on October 25, 2016, and the Company disclosed the required documents to the plaintiff.

The plaintiff filed his reply to the Company’s defense by April 2, 2017. A preliminary hearing was held on May 22, 2017, in the framework of which the court set dates for response to the Company’s above-mentioned requests as well as dates for evidence hearings. 

In May 2017, the Company filed two requests: the first, requesting to dismiss the plaintiff’s response to the Company’s defense, or, alternatively, to allow the Company to respond to it; the second, to continue discussions with regards to the legal question of the governing law. On July 17, 2017, the court issued its decision in the first request, denying the requested dismissal of plaintiff’s response to the Company’s defense, but allowing the Company to respond to it; on July 29, 2017, the Court issued its decision in the second request, and denied it. The Company filed its response on September 18, 2017.

On October 2, 2017, the plaintiff filed a request to summon two of the Company's officers (Company's Chairman, Mr. Zisapel and Company's Chief Executive Officer, Mr. Palti) to the upcoming evidence hearing. The Company filed its response on October 26, 2017; and the plaintiff filed its reply to Company's response.

The first evidence hearing took place on November 2, 2017, as scheduled. During the hearing the Company agreed to consider summoning to the second evidence hearing one of the abovementioned requested Company's officers, and on October 8, 2017 the Company filed a notice to the court that it agrees that Company's Chief Executive Officer will be summoned to the next evidence hearing. The second and final evidence hearing took place on January 8, 2018.

13

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES (Cont.)

Summaries were filed by the plaintiff on March 21, 2018 and the Company filed its summaries on June 12, 2018. The plaintiff filed their reply summaries on September 5, 2018.

On October 4, 2018, an interim decision regarding dual listed companies, which corresponds with the Company’s arguments in this case, was rendered by the Supreme Court of Israel. This Supreme court decision upholds two recent rulings of District Court of Tel-Aviv (Economic Department), which determined that all securities litigation regarding dual listed companies should be decided only in accordance with US law (herein after: “Supreme Court Decision”).

In light of this, on October 15, 2018, the plaintiff asked from court to add a plea to his summaries. The court has approved plaintiff’s request and gave to the defendants the right to reply. In accordance, the Company’s response was submitted on December 4, 2018. Plaintiff’s reply to Company’s response was submitted on December 26, 2018.

On April 14, 2019 the court rendered a decision resolving that according to Supreme Court Decision, examination of the legal questions standing in the basis of the motion, should be based upon US law. Therefore, court allowed the plaintiff to amend its motion within 45 days, so that it would include an expert opinion regarding US law, and an argument regarding US law implementation in the specific circumstances. Court also decided that amendment of the motion is subject to plaintiff’s payment of 40,000 NIS to the Company.

The Company’s response to the amended motion is to be submitted 90 days after receiving the amended motion; plaintiff`s answer to Company’s response is to be submitted 30 days thereafter. At the request of the plaintiff and agreement of the Company, the court extended the last date in which the plaintiff may file the amended motion towards the end of September 2019.

The Company believes that the District Court should deny the motion. However, there is no assurance that the Company's position will be accepted by the District Court. In such case the Company may have to divert attention of its executives to deal with this class action as well as incur expenses that may be beyond its insurance coverage for such cases, which cause a risk of loss and expenditures that may adversely affect its financial condition and results of operations. The Company believes it has strong defense arguments and in light of recent legal rulings regarding dual listed companies, and after the evidence hearings were conducted and summaries were submitted, the Company believes it is more likely than not, that the District Court will reject the motion for class action. Therefore, the Company did not record a provision as of June 30, 2019.

NOTE 7:- LEASES

On January 1, 2019, the Company adopted Topic 842 and elected the available practical expedient to recognize the cumulative effect of initially adopting Topic 842 as an adjustment to the opening balance sheet of the period of adoption (i.e., January 1, 2019). The Company also elected the other available practical expedients and will not separate lease components from non-lease components, will not reassess whether contracts are or contain leases, lease classification, or initial direct costs for existing leases as of January 1, 2019. In addition, the Company elected not to apply the transition requirements for leases for which the lease term is less than 12 months. The consolidated balance sheets and results from operations for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 840.

14

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 7:- LEASES (cont.)

The Company`s leases include offices and warehouses for its facilities worldwide, as well as car leases, which are all classified as operating leases. Certain leases include renewal options that are under the Company`s sole discretion. The renewal options were included in the ROU and liability calculation if it was reasonably certain that the Company will exercise the option.

The cumulative effect of the changes made to the balance sheet as of January 1, 2019 for the adoption of Topic 842 were as follows:

	December 31, 2018			Adjustments			January 1, 2019
Other non-current assets	$	4,544		$	7,129		$	11,673
Other accounts payable and accrued expenses	$	(27,256	)	$	(4,952	)	$	(32,208	)
Other long-term payables	$	(3,672	)	$	(2,177	)	$	(5,849	)

The lease related accounts as of June 30, 2019 were as follows:

	June 30, 2019
Other non-current assets	$	9,779
Other accounts payable and accrued expenses	$	(3,838	)
Other long-term payables	$	(6,133	)

The components of lease expense and supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows:

	Six months ended June 30, 2019
Components of lease expense
Operating lease cost	$	2,667
Short-term lease	$	39
Total lease expenses	$	2,706

	Six months ended June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities	$	2,819
Supplemental non-cash information related to lease liabilities arising from
obtaining ROU assets	$	5,391

15

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 7:- LEASES (cont.)

For the six months ended June 30, 2019, the weighted average remaining lease term is three years, and the weighted average discount rate is 3.51 percent. The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease.

Maturities of lease liabilities as of June 30, 2019 were as follows:

2019 (remaining of the year)	$	2,750
2020		4,860
2021		1,077
2022		608
2023		382
2024 and thereafter		1,180
Total operating lease payments		10,857
Less: imputed interest		886
Present value of lease liability	$	9,971

Related party balances and transactions are with related companies and principal shareholder. The Company leases its offices in Israel from real estate holding companies controlled by Yehuda and Zohar Zisapel. Yehuda Zisapel is a principal shareholder of the Company and Zohar Zisapel is the Chairman of the Board of Directors of the Company. Yehuda and Zohar Zisapel are brothers who do not have a voting agreement between them. Jointly or severally, they are also founders, directors and principal shareholders of several other companies that are known as the RAD-BYNET group.

The leases of this facility will expire end of December 2020.

Transactions with related parties are as follows:

	Six months ended
	June 30,		June 30,
	2018		2019
Rent and maintenance expenses	$	958	$	955

Balances with related parties are as follows:

	December 31,		June 30,
	2018		2019
Trade payables and accrued expenses	$	43	$	4

NOTE 8:- SHAREHOLDERS' EQUITY

a. Ordinary shares

The ordinary shares of the Company entitle their holders to receive notice to participate and vote in general meetings of the Company, the right to share in distributions upon liquidation of the Company, and to receive dividends, if declared.

16

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 8:- SHAREHOLDERS' EQUITY (Cont.)

b. Stock Options and Restricted share Units (“RSU's”) plans

In 2003, the Company adopted a share option plan (the "Plan"). Under the Plan and September 6, 2010 amendment options and RSU’s may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years. The options expire between six to ten years from the date of grant. In December 2012, the Company extended the term of the Plan for an additional period of ten years.

Upon adoption of the Plan, the Company reserved for issuance 8,639,000 ordinary shares in accordance with the respective terms thereof. Any options or RSU’s, which are canceled or forfeited before the expiration date, become available for future grants. On June 14, 2018, the Company`s board of directors decided to reserve an additional amount of 1,600,000 ordinary shares under the plan. As of June 30, 2019, the Company has 1,166,665 Ordinary shares available for future grant under the Plan.

On September 6, 2010, the Company's board of directors amended the Plan so as to enable to grant RSU’s pursuant to such Plan.

The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2019:

	Six months ended June 30, 2019
	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at beginning of year		6,751,606		$	3.99		3.47	$	7,937
Granted		228,822			3.57
Exercised		(138,985	)		1.84
Forfeited or expired		(290,082	)		5.14
Outstanding at end of the period		6,551,361		$	3.99		3.19	$	4,172
Options exercisable at end of the period		4,542,841		$	4.52		2.60	$	3,237
Vested and expected to vest		6,246,178		$	4.03		3.11	$	4,078

The weighted average fair value of options granted during the six months ended June 30, 2019 and 2018 were $1.57 and $2.13, respectively.

17

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 8:- SHAREHOLDERS' EQUITY (Cont.)

The following table summarizes the activities for the Company’s RSUs for the six months ended June 30, 2019:

	Number of RSUs			Aggregate intrinsic value
Unvested at beginning of year		376,811		$	1,424
Granted		20,000
Vested		(1,713	)
Forfeited		(15,959	)
Unvested at end of period		379,139		$	1,111
Vested and expected to vest		284,615		$	834

The weighted average fair value at grant date of RSUs granted for the six months ended June 30, 2019 was $3.84. RSUs were not granted during the six months ended June 30, 2018.

As of June 30, 2019, the total unrecognized estimated compensation cost related to non-vested stock options and RSU`s granted prior to that date was $ 1,560, which is expected to be recognized over a weighted average period of approximately one year.

The following table sets forth the total share-based compensation expenses included in the consolidated statements of operations for the six months ended June 30, 2019 and 2018:

	Six months ended June 30,
	2018		2019
Cost of revenues		18		31
Research and development		127		201
Selling and marketing		286		382
General and administrative		601		558
Total share-based compensation expense	$	1,032	$	1,172

NOTE 9:-       REVENUES

The Company recognizes contract liabilities, or deferred revenues, when it receives advance payments from customers before performance obligations have been performed. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period.

18

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 9:-       REVENUES (Cont.)

The following table presents the changes in deferred revenues balance during the six months ended June 30, 2019:

	Six months ended June 30, 2019
Balance, beginning of the period	$	3,873
New performance obligations		8,770
Reclassification to revenue as a result of satisfying performance obligations		(2,608	)
Balance, end of the period		10,035
Less: long-term portion of deferred revenue		6,265
Current portion, end of period	$	3,770

Remaining performance obligations represent contracted revenues that have not yet been recognized, which includes deferred revenues and non-cancelable contracts that will be recognized as revenue in future periods. The following table represents the remaining performance obligations as of June 30, 2019, which are expected to be satisfied and recognized in future periods:

	Remaining 2019		2020		2021 and thereafter
Unsatisfied performance obligations	$	16,114	$	10,330	$	6,265

The Company elected to apply the optional exemption under ASC 606 paragraph 10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet.

NOTE 10:-     GEOGRAPHIC INFORMATION

The following table presents the total revenues for the six months ended June 30, 2018 and 2019, allocated to the geographic areas in which it was generated. Revenues are attributed to geographic areas based on the location of the end-users.

	Six months ended June 30,
	2018		2019
North America	$	17,373	$	25,166
Europe		19,553		20,997
Africa		5,560		16,741
Asia-Pacific and Middle East		23,233		25,486
India		80,281		17,662
Latin America		25,603		36,112
	$	171,603	$	142,164

19

CERAGON NETWORKS LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands (except share and per share data)

NOTE 10:-     GEOGRAPHIC INFORMATION (Cont.)

The following table presents the locations of the Company’s property and equipment as of December 31, 2018 and June 30, 2019:

	December 31		June 30,
	2018		2019
Israel	$	28,494	$	29,553
Others		5,119		5,456
	$	33,613	$	35,009

20

EX-99.2

Exhibit 99.2

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

Components of Results of Operations

Revenues. We generate revenues primarily from the sale of our products, and, to a lesser extent, services. The final price to the customer may largely vary based on various factors, including but not limited to the size of a given transaction, the geographic location of the customer, the specific application for which products are sold, the channel through which products are sold, the competitive environment and the results of negotiation.

Cost of Revenues. Our cost of revenues consists primarily of the prices we pay contract manufacturers for the products they manufacture for us, the costs of off the shelf parts, accessories and antennas, the costs of our manufacturing facility, estimated warranty costs, costs related to management of our manufacturing facility, supply chain and shipping, as well as inventory write-off costs and amortization of intangible assets. In addition, we pay salaries and related costs to our employees and fees to subcontractors relating to installation services with respect to our products.

Significant Expenses

Research and Development Expenses, net. Our research and development expenses, net of government grants, consist primarily of salaries and related costs for research and development personnel, subcontractors costs, costs of materials and depreciation of equipment. All of our research and development costs are expensed as incurred, except for development expenses, which are capitalized in accordance with ASC 985-20 and ASC 350-40. We believe that continued investment in research and development is essential to attaining our strategic objectives.

Selling and Marketing Expenses. Our selling and marketing expenses consist primarily of compensation and related costs for sales and marketing personnel, amortization of intangible assets, trade show and exhibit expenses, travel expenses, commissions and promotional materials.

General and Administrative Expenses. Our general and administrative expenses consist primarily of compensation and related costs for executive, finance, information system and human resources personnel, professional fees (including legal and accounting fees), insurance, provisions for doubtful accounts and other general corporate expenses.

Financial expenses, net. Our financial expenses, net, consists primarily of gains and losses arising from the re-measurement of transactions and balances denominated in non-dollar currencies into dollars, gains and losses from our currency hedging activity, interest paid on bank loans, other fees and commissions paid to banks.

Taxes. Our tax expenses consist of current corporate tax expenses in various locations and changes in tax deferred assets and liabilities, as well as reserves for uncertain tax positions.

Results of Operations

The following table presents consolidated statement of operations data for the periods indicated and as a percentage of total revenues (in thousands of U.S. dollars).

	Six months ended June 30, 2018 (Unaudited)					Six months ended June 30, 2019 (Unaudited)
	$			%		$			%
Revenues		171,603		100			142,164		100
Cost of revenues		115,250		67.2			91,171		64.1
Gross profit		56,353		32.8			50,993		35.9
Operating expenses:
Research and development, net		14,035		8.2			12,418		8.7
Selling and marketing		20,931		12.2			19,583		13.8
General and administrative		9,649		5.6			11,636		8.2
Total operating expenses		44,615		26.0			43,637		30.7
Operating income		11,738		6.8			7,356		5.2
Financial expenses, net		(4,680	)	(2.7	)		(2,939	)	(2.1	)
Taxes on income		(1,762	)	(1.0	)		(2,532	)	(1.8	)
Equity loss in affiliates		-		-			(314	)	(0.2	)
Net income		5,296		3.1			1,571		1.1

Six months ended June 30, 2019 compared to six months ended June 30, 2018

Revenues. Revenues decreased by 17.1% from $171.6 million in the first six months of 2018 to $142.2 million in the first six months of 2019, a decrease of $29.4 million. Revenues in India decreased from $80.3 million in the first six months of 2018 to $17.7 million in the first six months of 2019. Revenues in the Africa region increased from $5.6 million in the first six months of 2018 to $16.7 million in the first six months of 2019. Revenues in the APAC region increased from $23.2 million in the first six months of 2018 to $25.5 million in the first six months of 2019. Revenues in Latin America increased from $25.6 million in the first six months of 2018 to $36.1 million in the first six months in 2019. Revenues in the Europe region increased from $19.5 million in the first six months of 2018 to $21.0 million in the first six months of 2019. Revenues in North America region increased from $17.4 million in the first six months of 2018 to $25.2 million in the first six months of 2019.

Cost of Revenues.Cost of revenues decreased by 20.8% from $115.2 million in the first six months of 2018 to $91.2 million in the first six months of 2019, a decrease of $24.0 million.

The decrease is mainly attributed to:

• Lower material costs primarily due to lower volume of products revenues.

• Partially offset by higher services subcontractors and employees’ costs, primarily resulting from an increased volume of services.

Gross Profit.  Gross profit as a percentage of revenues increased from 32.8% in the first six months of 2018 to 35.9% in the first six months of 2019. This increase is mainly attributed tothe change in Company geographical revenue mix, which reflected proportionally lower revenues in India and Company`s cost reduction activities with respect to materials cost.

Research and Development Expenses, Net. Our research and development expenses, net, decreased by 11.4% from $14.0 million in the first six months of 2018 to $12.4 million in the first six months of 2019, a decrease of $1.6 million. The decrease was primarily due to deferral of $1.8 million expenses associated with a development project we do in collaboration with a business partner and a decrease of $0.6 million in salary and related expenses, partially offset by an increase of $0.5 million due to software maintenance expenses, an increase of $0.2 million in office related expenses and an increase of $0.1 million related to lower IIA (Israel Innovation Authority) grants. Our research and development efforts are a key element of our strategy and are essential to our success. We intend to maintain our commitment to research and development and an increase or a decrease in our total revenue would not necessarily result in a proportional increase or decrease in the levels of our research and development expenditures.

Selling and Marketing Expenses. Selling and marketing expenses decreased by 6.2% from $20.9 million in the first six months of 2018 to $19.6 million in the first six months of 2019, a decrease of $1.3 million. This decrease was primarily attributed to the decrease of approximately $0.6 million in commission expenses, decrease of $0.3 million in salary and related expenses and a decrease of $0.4 million in other sales and marketing expenses.

General and Administrative Expenses. General and administrative expenses increased by 20.8% from $9.6 million in the first six months of 2018 to $11.6 million in the first six months of 2019, an increase of $2.0 million. The increase was primarily due to an increase of $1.6 million related to strategic initiatives activities and an increase of $0.3 million in doubtful debt expenses.

Financial expenses, Net. Financial expenses, net, decreased by 38.3% from $4.7 million in the first six months of 2018 to $2.9 million in the first six months of 2019, a decrease of $1.8 million. This decrease was mainly attributable to a decrease in exchange rate differences related to our activity in Venezuela and India as well as a decrease in invoice factoring and letter of credit discounting expenses especially in India, partially offset by an increase in interest paid on loans.

Taxes on income. Taxes on income increased by 38.9% from $1.8 million in the first six months of 2018 to $2.5 million in the first six months of 2019, an increase of $0.7 million. This increase was mainly attributable to an increase in deferred tax expenses of $0.8 million, due to a deferred tax assets utilization in the first six months of 2019.

Net income. Net income decreased from $5.3 million in the first six months of 2018 to $1.6 million in the first six months of 2019, a decrease of $3.7 million. The decrease was attributable primarily to lower revenue that resulted lower gross profit as well as a higher tax expenses, offset by lower financial and operating expenses.

Equity loss in affiliates. Equity loss in affiliates for the first six months of 2019 was $0.3 million related to losses of an affiliate acquired on December 2018.

Liquidity and Capital Resources

As of June 30, 2019, we had approximately $29.0 million in cash and cash equivalents.

As of June 30, 2019, our cash investments were comprised entirely of short-term, highly liquid investments with original maturities of up to three months. Most of these investments were in U.S. dollars.

We have a committed credit facility with a maximum line of credit of $85 million in the form of bank guarantees and $40 million in the form of loans, available for our use from a syndicate of four banks, for which we pay commitment fees. The credit facility is provided by the syndicate with each bank agreeing severally (and not jointly) to make its agreed portion of the credit loans to us in accordance with the terms of the credit agreement which includes a framework for joint decision making powers by the banks. As of June 30, 2019, we had $31.1 million available under our credit facility in the form of loans and $65 million in bank guarantees were outstanding in respect of tender offer guarantees, financial guarantees, warranty guarantees and performance guarantees to our customers.

The credit agreement contains financial and other covenants requiring that we maintain, among other things, minimum shareholders` equity, a certain ratio between our shareholders’ equity and the total value of our assets on our balance sheet, a certain ratio between our net financial debt to each of our working capital and accounts receivable, and a minimum cash covenant. Any failure to comply with the covenants, including for poor financial performance, may constitute a default under the credit agreement and may require us to seek an amendment or waiver from the banks to avoid termination of their commitments and/or an immediate repayment of all outstanding amounts under the credit facilities. The credit facility is secured by a floating charge over all Company assets as well as several customary fixed charges on specific assets.  As of June 30, 2019, the Company met all of its covenants.

Net cash used in operating activities was $7.1 million for the six months ended June 30, 2019.

In the first six months of 2019, our cash used in operating activities was affected by the following principal factors:

•          a $10.2 million increase in trade receivables and other accounts receivables; and

•          a $20.8 million increase in inventories, net of write-offs.

These factors were offset mainly by:

•          our net income of $1.6 million;

•          a $4.4 million of depreciation expenses;

•          a $6.2 million increase in deferred revenues paid in advance;

•          a $1.2 million increase in stock based compensation expenses;

•          a $1.2 million decrease in deferred tax asset; and

•          a $9.5 million increase in trade payables and accrued liabilities.

Net cash provided by operating activities was $8.6 million for the six months ended June 30, 2018.

In the first six months of 2018, our cash provided by operating activities was affected by the following principal factors:

•          our net income of $5.3  million;

•          a $3.5  million of depreciation expenses;

•          a $1.8  million increase in deferred revenues paid in advance;

•          a $1.0 million increase in stock based compensation expenses; and

•          a $7.0 million decrease in inventories, net of write-offs.

These factors were offset by:

•          a $10.2 million decrease in trade payables and accrued liabilities.

 Net cash used in investing activities was approximately $8.6 million in the first six months of 2019 attributed to the purchase of property and equipment of $6.7 million and the purchase of intangible assets of $2.8 million, partially offset by release of a long and short – term bank deposit of $0.9 million, compared to $5.3 million used in investing activities in the first six months of 2018, entirely attributed to the purchase of property and equipment of $4.0 million and the purchase intangible assets of $1.3 million.

Net cash provided by financing activities was approximately $9.2 million in the first six months of 2019, attributed to proceeds of a short – term bank credits and loans of $8.9 million and proceeds from exercises of share options of $0.3 compared to $0.4 million provided by financing activities in the first six months in 2018 attributed to proceeds from exercises of share options of $0.4 million.

Our capital requirements are dependent on many factors, including working capital requirements to finance the business activity of the Company, and the allocation of resources to research and development, marketing and sales activities. We may decide to raise capital if and when we may require, subject to changes in our business activities.

We believe that current cash and cash equivalent balances together with the credit facility available with the lenders will be sufficient for our requirements through at least the next 12 months.

XML

LEASES (Schedule of Balances with Related Parties) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Trade payables and accrued expenses	$ 4	$ 43

XML

LEASES (Schedule of Cumulative Effect of Changes made to Balance Sheet and Lease Related Accounts) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 31, 2019	Dec. 31, 2018
Operating Leased Assets [Line Items]
Other non-current assets	$ 15,822	$ 11,673	$ 4,544
Other accounts payable and accrued expenses	(26,385)	(32,208)	(27,256)
Other long-term payables	(9,926)	$ (5,849)	(3,672)
Adjustments [Member]
Operating Leased Assets [Line Items]
Other non-current assets			7,129
Other accounts payable and accrued expenses			(4,952)
Other long-term payables			$ (2,177)
Lease related accounts [Member]
Operating Leased Assets [Line Items]
Other non-current assets	9,779
Other accounts payable and accrued expenses	(3,838)
Other long-term payables	$ (6,133)

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Unaudited interim consolidated financial statements

a. Unaudited interim consolidated financial statements

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. In the management`s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s consolidated financial position as of June 30, 2019, as well as its results of operations and cash flows for the six months ended June 30, 2018 and 2019. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019.

Use of estimates

b. Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates.

On an ongoing basis, the Company's management evaluates its estimates, including those related to accounts receivable, fair values and useful lives of intangible assets, fair values of stock-based awards, inventory write-off, warranty provision, income taxes, and contingent liabilities, among others. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and liabilities.

Significant accounting policies

c. Significant accounting policies

The accompanying unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC") on April 1, 2019.

Other than the change described below (see note 2d), there have been no changes to the significant accounting policies described in the Annual Report on Form 20-F for the fiscal year ended December 31, 2018 that have had a material impact on the unaudited interim consolidated financial statements and related notes.

Recently adopted accounting standards

d. Recently adopted accounting standards

1. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use (“ROU”) asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory.

The standard became effective for the Company beginning January 1, 2019. The adoption of the standard had material impact of the Company`s consolidated balance sheets due to the recognition of the ROU assets and lease liabilities related to the Company`s operating leases. The standard did not have a material impact on the Company`s results of operations or cash flows. See Note 7 “Leases” for details about the impact from adopting the new lease standard and other required disclosures.

2. In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the provisions of this update as of January 1, 2019 with no material impact on its consolidated financial statements.

XML

INVENTORIES

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 3:- INVENTORIES

	December 31,		June 30,
	2018		2019
Raw materials	$	15,065	$	16,227
Work in progress		374		783
Finished products		38,070		56,890
	$	53,509	$	73,900

During the six-month ended June 30, 2018 and 2019 the Company recorded inventory write-offs for excess inventory and slow-moving inventory in a total amount of $ 1,106 and $ 1,112, respectively that have been included in cost of revenues.

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LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

NOTE 7:- LEASES

On January 1, 2019, the Company adopted Topic 842 and elected the available practical expedient to recognize the cumulative effect of initially adopting Topic 842 as an adjustment to the opening balance sheet of the period of adoption (i.e., January 1, 2019). The Company also elected the other available practical expedients and will not separate lease components from non-lease components, will not reassess whether contracts are or contain leases, lease classification, or initial direct costs for existing leases as of January 1, 2019. In addition, the Company elected not to apply the transition requirements for leases for which the lease term is less than 12 months. The consolidated balance sheets and results from operations for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 840.

The Company`s leases include offices and warehouses for its facilities worldwide, as well as car leases, which are all classified as operating leases. Certain leases include renewal options that are under the Company`s sole discretion. The renewal options were included in the ROU and liability calculation if it was reasonably certain that the Company will exercise the option.

The cumulative effect of the changes made to the balance sheet as of January 1, 2019 for the adoption of Topic 842 were as follows:

	December 31, 2018			Adjustments			January 1, 2019
Other non-current assets	$	4,544		$	7,129		$	11,673
Other accounts payable and accrued expenses	$	(27,256	)	$	(4,952	)	$	(32,208	)
Other long-term payables	$	(3,672	)	$	(2,177	)	$	(5,849	)

The lease related accounts as of June 30, 2019 were as follows:

	June 30, 2019
Other non-current assets	$	9,779
Other accounts payable and accrued expenses	$	(3,838	)
Other long-term payables	$	(6,133	)

The components of lease expense and supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows:

	Six months ended June 30, 2019
Components of lease expense
Operating lease cost	$	2,667
Short-term lease	$	39
Total lease expenses	$	2,706

	Six months ended June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities	$	2,819
Supplemental non-cash information related to lease liabilities arising from
obtaining ROU assets	$	5,391

For the six months ended June 30, 2019, the weighted average remaining lease term is three years, and the weighted average discount rate is 3.51 percent. The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease.

Maturities of lease liabilities as of June 30, 2019 were as follows:

2019 (remaining of the year)	$	2,750
2020		4,860
2021		1,077
2022		608
2023		382
2024 and thereafter		1,180
Total operating lease payments		10,857
Less: imputed interest		886
Present value of lease liability	$	9,971

Related party balances and transactions are with related companies and principal shareholder. The Company leases its offices in Israel from real estate holding companies controlled by Yehuda and Zohar Zisapel. Yehuda Zisapel is a principal shareholder of the Company and Zohar Zisapel is the Chairman of the Board of Directors of the Company. Yehuda and Zohar Zisapel are brothers who do not have a voting agreement between them. Jointly or severally, they are also founders, directors and principal shareholders of several other companies that are known as the RAD-BYNET group.

The leases of this facility will expire end of December 2020.

Transactions with related parties are as follows:

	Six months ended
	June 30,		June 30,
	2018		2019
Rent and maintenance expenses	$	958	$	955

Balances with related parties are as follows:

	December 31,		June 30,
	2018		2019
Trade payables and accrued expenses	$	43	$	4

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Document And Entity Information	6 Months Ended
	Jun. 30, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	CERAGON NETWORKS LTD
Entity Central Index Key	0001119769
Document Type	6-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 1,571	$ 5,296
Other comprehensive income (loss):
Change in foreign currency translation adjustment	63	(1,018)
Cash flow hedges:
Change in net unrealized gains (losses)	1,214	(1,440)
Amounts reclassified into net income	(85)	262
Net change	1,129	(1,178)
Other comprehensive income (loss), net	1,192	(2,196)
Total of comprehensive income	$ 2,763	$ 3,100

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2:- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Unaudited interim consolidated financial statements

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. In the management`s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s consolidated financial position as of June 30, 2019, as well as its results of operations and cash flows for the six months ended June 30, 2018 and 2019. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019.

b. Use of estimates

The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates.

On an ongoing basis, the Company's management evaluates its estimates, including those related to accounts receivable, fair values and useful lives of intangible assets, fair values of stock-based awards, inventory write-off, warranty provision, income taxes, and contingent liabilities, among others. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and liabilities.

c. Significant accounting policies

The accompanying unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC") on April 1, 2019.

Other than the change described below (see note 2d), there have been no changes to the significant accounting policies described in the Annual Report on Form 20-F for the fiscal year ended December 31, 2018 that have had a material impact on the unaudited interim consolidated financial statements and related notes.

d. Recently adopted accounting standards

1. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use (“ROU”) asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory.

The standard became effective for the Company beginning January 1, 2019. The adoption of the standard had material impact of the Company`s consolidated balance sheets due to the recognition of the ROU assets and lease liabilities related to the Company`s operating leases. The standard did not have a material impact on the Company`s results of operations or cash flows. See Note 7 “Leases” for details about the impact from adopting the new lease standard and other required disclosures.

2. In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the provisions of this update as of January 1, 2019 with no material impact on its consolidated financial statements.

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GEOGRAPHIC INFORMATION (Schedule Of Revenues From Sales To Unaffiliated Customers) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 142,164	$ 171,603
Long-lived assets	35,009		$ 33,613
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	25,166	17,373
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	20,997	19,553
Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	16,741	5,560
Asia-Pacific and Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	25,486	23,233
India [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	17,662	80,281
Latin America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	36,112	$ 25,603
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	29,553		28,494
Others [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 5,456		$ 5,119

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LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of Cumulative Effect of Changes made to Balance Sheet and Lease Related Accounts

The cumulative effect of the changes made to the balance sheet as of January 1, 2019 for the adoption of Topic 842 were as follows:

	December 31, 2018			Adjustments			January 1, 2019
Other non-current assets	$	4,544		$	7,129		$	11,673
Other accounts payable and accrued expenses	$	(27,256	)	$	(4,952	)	$	(32,208	)
Other long-term payables	$	(3,672	)	$	(2,177	)	$	(5,849	)

The lease related accounts as of June 30, 2019 were as follows:

	June 30, 2019
Other non-current assets	$	9,779
Other accounts payable and accrued expenses	$	(3,838	)
Other long-term payables	$	(6,133	)

Schedule of Components of Lease Expense and Supplemental Cash Flow Information

The components of lease expense and supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows:

	Six months ended June 30, 2019
Components of lease expense
Operating lease cost	$	2,667
Short-term lease	$	39
Total lease expenses	$	2,706

	Six months ended June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities	$	2,819
Supplemental non-cash information related to lease liabilities arising from
obtaining ROU assets	$	5,391

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of June 30, 2019 were as follows:

2019 (remaining of the year)	$	2,750
2020		4,860
2021		1,077
2022		608
2023		382
2024 and thereafter		1,180
Total operating lease payments		10,857
Less: imputed interest		886
Present value of lease liability	$	9,971

Schedule of Transactions with Related Parties

Transactions with related parties are as follows:

	Six months ended
	June 30,		June 30,
	2018		2019
Rent and maintenance expenses	$	958	$	955

Schedule of Balances with Related Parties

Balances with related parties are as follows:

	December 31,		June 30,
	2018		2019
Trade payables and accrued expenses	$	43	$	4

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INVENTORIES (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 16,227		$ 15,065
Work in progress	783		374
Finished products	56,890		38,070
Inventories, Net	73,900		$ 53,509
Inventory write-off	$ 1,112	$ 1,106

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REVENUES (Schedule of Remaining Performance Obligations) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 8,770
Remainder of 2019 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	16,114
2020 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	10,330
2021 and thereafter [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations	$ 6,265

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SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary of Stock Options and RSUs Granted

The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2019:

	Six months ended June 30, 2019
	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at beginning of year		6,751,606		$	3.99		3.47	$	7,937
Granted		228,822			3.57
Exercised		(138,985	)		1.84
Forfeited or expired		(290,082	)		5.14
Outstanding at end of the period		6,551,361		$	3.99		3.19	$	4,172
Options exercisable at end of the period		4,542,841		$	4.52		2.60	$	3,237
Vested and expected to vest		6,246,178		$	4.03		3.11	$	4,078

The following table summarizes the activities for the Company’s RSUs for the six months ended June 30, 2019:

	Number of RSUs			Aggregate intrinsic value
Unvested at beginning of year		376,811		$	1,424
Granted		20,000
Vested		(1,713	)
Forfeited		(15,959	)
Unvested at end of period		379,139		$	1,111
Vested and expected to vest		284,615		$	834

Schedule of Equity-Based Compensation Expense

The following table sets forth the total share-based compensation expenses included in the consolidated statements of operations for the six months ended June 30, 2019 and 2018:

	Six months ended June 30,
	2018		2019
Cost of revenues		18		31
Research and development		127		201
Selling and marketing		286		382
General and administrative		601		558
Total share-based compensation expense	$	1,032	$	1,172

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FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives instruments	$ 460
Total assets	460
Derivatives instruments		$ (1,028)
Total liabilities		(1,028)
Fair Value Inputs Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives instruments	460
Total assets	$ 460
Derivatives instruments		(1,028)
Total liabilities		$ (1,028)

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LEASES (Schedule of Transactions with Related Parties) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Leases [Abstract]
Rent and maintenance expenses	$ 955	$ 958

XML

LEASES (Narrative) (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted average remaining lease term	3 years
Weighted average discount rate	3.51%

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FAIR VALUE MEASUREMENT

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

NOTE 4:- FAIR VALUE MEASUREMENT

The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term deposits, restricted cash, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses and other liabilities, approximate their fair value due to the short-term maturities of such instruments.

The following table presents assets (liabilities) measured at fair value on a recurring basis as of June 30, 2019:

	June 30, 2019
	Fair value measurements using input type
	Level 2		Total
Derivatives instruments	$	460	$	460
Total assets	$	460	$	460

The following table presents assets (liabilities) measured at fair value on a recurring basis as of December 31, 2018:

	December 31, 2018
	Fair value measurements using input type
	Level 2			Total
Derivatives instruments	$	(1,028	)	$	(1,028	)
Total liabilities	$	(1,028	)	$	(1,028	)

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SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

NOTE 8:- SHAREHOLDERS' EQUITY

a. Ordinary shares

The ordinary shares of the Company entitle their holders to receive notice to participate and vote in general meetings of the Company, the right to share in distributions upon liquidation of the Company, and to receive dividends, if declared.

b. Stock Options and Restricted share Units (“RSU's”) plans

In 2003, the Company adopted a share option plan (the "Plan"). Under the Plan and September 6, 2010 amendment options and RSU’s may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years. The options expire between six to ten years from the date of grant. In December 2012, the Company extended the term of the Plan for an additional period of ten years.

Upon adoption of the Plan, the Company reserved for issuance 8,639,000 ordinary shares in accordance with the respective terms thereof. Any options or RSU’s, which are canceled or forfeited before the expiration date, become available for future grants. On June 14, 2018, the Company`s board of directors decided to reserve an additional amount of 1,600,000 ordinary shares under the plan. As of June 30, 2019, the Company has 1,166,665 Ordinary shares available for future grant under the Plan.

On September 6, 2010, the Company's board of directors amended the Plan so as to enable to grant RSU’s pursuant to such Plan.

The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2019:

	Six months ended June 30, 2019
	Number of options			Weighted average exercise price		Weighted average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at beginning of year		6,751,606		$	3.99		3.47	$	7,937
Granted		228,822			3.57
Exercised		(138,985	)		1.84
Forfeited or expired		(290,082	)		5.14
Outstanding at end of the period		6,551,361		$	3.99		3.19	$	4,172
Options exercisable at end of the period		4,542,841		$	4.52		2.60	$	3,237
Vested and expected to vest		6,246,178		$	4.03		3.11	$	4,078

The weighted average fair value of options granted during the six months ended June 30, 2019 and 2018 were $1.57 and $2.13, respectively.

The following table summarizes the activities for the Company’s RSUs for the six months ended June 30, 2019:

	Number of RSUs			Aggregate intrinsic value
Unvested at beginning of year		376,811		$	1,424
Granted		20,000
Vested		(1,713	)
Forfeited		(15,959	)
Unvested at end of period		379,139		$	1,111
Vested and expected to vest		284,615		$	834

The weighted average fair value at grant date of RSUs granted for the six months ended June 30, 2019 was $3.84. RSUs were not granted during the six months ended June 30, 2018.

As of June 30, 2019, the total unrecognized estimated compensation cost related to non-vested stock options and RSU`s granted prior to that date was $ 1,560, which is expected to be recognized over a weighted average period of approximately one year.

The following table sets forth the total share-based compensation expenses included in the consolidated statements of operations for the six months ended June 30, 2019 and 2018:

	Six months ended June 30,
	2018		2019
Cost of revenues		18		31
Research and development		127		201
Selling and marketing		286		382
General and administrative		601		558
Total share-based compensation expense	$	1,032	$	1,172

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

	December 31,		June 30,
	2018		2019
Raw materials	$	15,065	$	16,227
Work in progress		374		783
Finished products		38,070		56,890
	$	53,509	$	73,900

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GENERAL

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1:- GENERAL

a. Ceragon Networks Ltd. ("the Company") is a wireless backhaul specialist. It provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services, enabling smart-phone applications such as internet browsing, social networking applications, image sharing, music and video applications. Its wireless backhaul solutions use microwave radio technology to transfer large amounts of telecommunication traffic between base stations and small-cells and the core of the service provider's network. The Company also provides wireless fronthaul solutions that use microwave technology for ultra-high speed, ultra-low latency communication between LTE/LTE-Advanced base band digital units stations and remote radio heads.

b. The Company's solutions support all wireless access technologies, including LTE-Advanced, LTE, HSPA, EV-DO, CDMA, W-CDMA and GSM. The Company's systems also serve evolving network architectures including all-IP long haul networks.

c. The Company sells its products through a direct sales force, systems integrators, distributors and original equipment manufacturers.

d. The Company's wholly owned subsidiaries provide research and development, marketing, manufacturing, distribution, sales and technical support to the Company's customers worldwide.

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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenues	$ 142,164	$ 171,603
Cost of revenues	91,171	115,250
Gross profit	50,993	56,353
Operating expenses:
Research and development, net	12,418	14,035
Selling and marketing	19,583	20,931
General and administrative	11,636	9,649
Total operating expenses	43,637	44,615
Operating income	7,356	11,738
Financial expenses, net	2,939	4,680
Income before taxes	4,417	7,058
Taxes on income	2,532	1,762
Equity loss in affiliates	314
Net income	$ 1,571	$ 5,296
Basic net income per share	$ 0.02	$ 0.07
Diluted net income per share	$ 0.02	$ 0.07
Weighted average number of shares used in computing basic net income per share	80,153,038	78,155,810
Weighted average number of shares used in computing diluted net income per share	82,192,544	80,457,636

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SHAREHOLDERS' EQUITY (Schedule Of Equity-Based Compensation Expense) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Total share-based compensation expense	$ 1,172	$ 1,032
Cost of Revenue [Member]
Total share-based compensation expense	31	18
Research And Development Expense [Member]
Total share-based compensation expense	201	127
Selling And Marketing Expense [Member]
Total share-based compensation expense	382	286
General And Administrative Expense [Member]
Total share-based compensation expense	$ 558	$ 601

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DERIVATIVE INSTRUMENTS (Schedule of Notional Amounts of Outstanding Derivative Contracts) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivative [Line Items]
Total derivatives	$ 47,966	$ 59,280
Derivatives designated as hedging instruments [Member] | Currency forward contracts [Member]
Derivative [Line Items]
Total derivatives	18,757	37,398
Derivatives not designated as hedging instruments [Member] | Currency forward and option contracts [Member]
Derivative [Line Items]
Total derivatives	$ 29,209	$ 21,882

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DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Contracts

The fair value of derivative contracts in the unaudited consolidated balance sheets at June 30, 2019 and December 31, 2018 were as follows:

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	June 30, 2019
Derivatives designated as hedging instruments
Currency forward contracts	$	545	$	-
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	54	$	139
Total derivatives	$	599	$	139

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	December 31, 2018
Derivatives designated as hedging instruments
Currency forward contracts	$	3	$	587
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	2	$	446
Total derivatives	$	5	$	1,033

Schedule of Notional Amounts of Outstanding Derivative Contracts

The notional amounts of outstanding derivative contracts in U.S. dollars at June 30, 2019 and December 31, 2018 were as follows:

	December 31, 2018		June 30, 2019
Derivatives designated as hedging instruments
Currency forward contracts	$	37,398	$	18,757
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	21,882	$	29,209
Total derivatives	$	59,280	$	47,966

Schedule of Derivative Contracts on Unaudited Consolidated Statements of Operations

The effect of derivative contracts on the unaudited consolidated statements of operations for the six months ended June 30, 2019 and 2018 was as follows:

	Six months ended June 30,
	2018			2019
Operating income (expenses)	$	(262	)	$	85
Financial income (expenses)	$	1,076		$	(559)

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GEOGRAPHIC INFORMATION (Tables)

6 Months Ended

Jun. 30, 2019

Geographic Areas, Revenues from External Customers [Abstract]

Schedule of Revenues from Sales to Unaffiliated Customers

The following table presents the total revenues for the six months ended June 30, 2018 and 2019, allocated to the geographic areas in which it was generated. Revenues are attributed to geographic areas based on the location of the end-users.

	Six months ended June 30,
	2018		2019
North America	$	17,373	$	25,166
Europe		19,553		20,997
Africa		5,560		16,741
Asia-Pacific and Middle East		23,233		25,486
India		80,281		17,662
Latin America		25,603		36,112
	$	171,603	$	142,164

Schedule of Property and Equipment by Location

The following table presents the locations of the Company’s property and equipment as of December 31, 2018 and June 30, 2019:

	December 31		June 30,
	2018		2019
Israel	$	28,494	$	29,553
Others		5,119		5,456
	$	33,613	$	35,009

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COMMITMENTS AND CONTINGENT LIABILITIES

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 6:- COMMITMENTS AND CONTINGENT LIABILITIES

a. Leases

See Note 7 “Leases” for lease related commitments as of June 30, 2019.

b. During the six months ended June 30, 2018 and 2019, the Company received several grants from the Israeli Innovation Authority (“IIA”). The grants require the Company to comply with the requirements of the Research and Development Law, however, the Company is not obligated to pay royalties on sales of products based on technology or know how developed from the grants. In a case involving the transfer of technology or know how developed from the grants outside of Israel, the Company may be required to pay royalties related to past sales of products based on the technology or the developed know how. The Company recorded the IIA grants as a reduction of research and development expenses in the six months ended June 30, 2018 and 2019 in the amount of $ 626 and $ 541, respectively.

c. Charges and guarantees:

As of December 31, 2018, and June 30, 2019, the Company provided bank guarantees in an aggregate amount of $ 72,842 and $ 66,020, respectively, with respect to tender offer guarantees, financial guarantees, warranty guarantees and performance guarantees to its customers (including bank guarantee disclosed in Note 6d).

d. In September 2018, the Company signed commercial agreements with Orocom, a new operator in Peru, to provide broadband connectivity in rural regions. The Peruvian Government (“Fitel”) chose Orocom for the deployment of transport and broadband access networks in three of six regions in Peru. Orocom is owned by a consortium of companies, comprising telecommunications license holders as well as companies with expertise in fiber-based technologies.

After signing the commercial agreements mentioned above and an operating agreement with Orocom and its shareholders, the Company provided, in the second quarter of 2018, bank guarantees amounting to $29.1 million, on behalf of Orocom to Fitel, to secure the return of a down payment to be received by Orocom, or part of it, in case Orocom fails to meet the down payment related obligations. These bank guarantees came into effect in July 2018, when a down payment of $29.1 million was received by Orocom. Orocom’s down payment related obligations include primarily meeting specifications and timelines as defined in the agreement between Orocom and Fitel, unless justified or otherwise agreed between these parties; using the funds provided by Fitel properly for the purpose of the project; and maintaining certain composition of shareholders in Orocom for at least three years. The Company’s bank guarantees may be gradually reduced as the network build-out process progresses. Should Orocom meet its down payment related obligations towards Fitel, the bank guarantees are expected to be returned to the Company on 2020.

Provisions of the operating agreement mentioned above, grant the Company certain protective rights in Orocom during the network build-out phase and until the bank guarantees are returned to the Company, as well as recovery rights against Orocom and its shareholders. These protective rights include, among others, two seats in Orocom’s board of directors that comprise half of the board seats; a requirement for receipt of consent by all board members to various decisions, including but not limited to, for the approval of any commitment exceeding one hundred thousand dollars; and full access to Orocom’s books and records and any other data, including audit rights. Based on the above, Orocom and its shareholders were defined as related companies.

e. Litigations:

The Company is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss.

On January 6, 2015 the Company was served with a motion to approve a purported class action, naming the Company, its Chief Executive Officer and its directors as defendants. The motion was filed with the District Court of Tel-Aviv. The purported class action alleges breaches of duties by making false and misleading statements in the Company's SEC filings and public statements. The plaintiff seeks specified compensatory damages in a sum of up to $75,000 as well as attorneys’ fees and costs.

The Company filed its defense on June 21, 2015, and on October 22, 2015 the plaintiff filed a request for discovery of specific documents. The Company filed its response to the plaintiffs' request for discovery on January 25, 2016 and the plaintiffs submitted their response on February 24, 2016. On June 8, 2016, the District Court partially accepted the plaintiff's request for discovery and ordered the Company to disclose some of the requested documents. The Company's request to appeal this decision was denied by the Supreme Court on October 25, 2016, and the Company disclosed the required documents to the plaintiff.

The plaintiff filed his reply to the Company’s defense by April 2, 2017. A preliminary hearing was held on May 22, 2017, in the framework of which the court set dates for response to the Company’s above-mentioned requests as well as dates for evidence hearings. 

In May 2017, the Company filed two requests: the first, requesting to dismiss the plaintiff’s response to the Company’s defense, or, alternatively, to allow the Company to respond to it; the second, to continue discussions with regards to the legal question of the governing law. On July 17, 2017, the court issued its decision in the first request, denying the requested dismissal of plaintiff’s response to the Company’s defense, but allowing the Company to respond to it; on July 29, 2017, the Court issued its decision in the second request, and denied it. The Company filed its response on September 18, 2017.

On October 2, 2017, the plaintiff filed a request to summon two of the Company's officers (Company's Chairman, Mr. Zisapel and Company's Chief Executive Officer, Mr. Palti) to the upcoming evidence hearing. The Company filed its response on October 26, 2017; and the plaintiff filed its reply to Company's response.

The first evidence hearing took place on November 2, 2017, as scheduled. During the hearing the Company agreed to consider summoning to the second evidence hearing one of the abovementioned requested Company's officers, and on October 8, 2017 the Company filed a notice to the court that it agrees that Company's Chief Executive Officer will be summoned to the next evidence hearing. The second and final evidence hearing took place on January 8, 2018.

Summaries were filed by the plaintiff on March 21, 2018 and the Company filed its summaries on June 12, 2018. The plaintiff filed their reply summaries on September 5, 2018.

On October 4, 2018, an interim decision regarding dual listed companies, which corresponds with the Company’s arguments in this case, was rendered by the Supreme Court of Israel. This Supreme court decision upholds two recent rulings of District Court of Tel-Aviv (Economic Department), which determined that all securities litigation regarding dual listed companies should be decided only in accordance with US law (herein after: “Supreme Court Decision”).

In light of this, on October 15, 2018, the plaintiff asked from court to add a plea to his summaries. The court has approved plaintiff’s request and gave to the defendants the right to reply. In accordance, the Company’s response was submitted on December 4, 2018. Plaintiff’s reply to Company’s response was submitted on December 26, 2018.

On April 14, 2019 the court rendered a decision resolving that according to Supreme Court Decision, examination of the legal questions standing in the basis of the motion, should be based upon US law. Therefore, court allowed the plaintiff to amend its motion within 45 days, so that it would include an expert opinion regarding US law, and an argument regarding US law implementation in the specific circumstances. Court also decided that amendment of the motion is subject to plaintiff’s payment of 40,000 NIS to the Company.

The Company’s response to the amended motion is to be submitted 90 days after receiving the amended motion; plaintiff`s answer to Company’s response is to be submitted 30 days thereafter. At the request of the plaintiff and agreement of the Company, the court extended the last date in which the plaintiff may file the amended motion towards the end of September 2019.

The Company believes that the District Court should deny the motion. However, there is no assurance that the Company's position will be accepted by the District Court. In such case the Company may have to divert attention of its executives to deal with this class action as well as incur expenses that may be beyond its insurance coverage for such cases, which cause a risk of loss and expenditures that may adversely affect its financial condition and results of operations. The Company believes it has strong defense arguments and in light of recent legal rulings regarding dual listed companies, and after the evidence hearings were conducted and summaries were submitted, the Company believes it is more likely than not, that the District Court will reject the motion for class action. Therefore, the Company did not record a provision as of June 30, 2019.

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GEOGRAPHIC INFORMATION

6 Months Ended

Jun. 30, 2019

Geographic Areas, Revenues from External Customers [Abstract]

GEOGRAPHIC INFORMATION

NOTE 10:-     GEOGRAPHIC INFORMATION

The following table presents the total revenues for the six months ended June 30, 2018 and 2019, allocated to the geographic areas in which it was generated. Revenues are attributed to geographic areas based on the location of the end-users.

	Six months ended June 30,
	2018		2019
North America	$	17,373	$	25,166
Europe		19,553		20,997
Africa		5,560		16,741
Asia-Pacific and Middle East		23,233		25,486
India		80,281		17,662
Latin America		25,603		36,112
	$	171,603	$	142,164

The following table presents the locations of the Company’s property and equipment as of December 31, 2018 and June 30, 2019:

	December 31		June 30,
	2018		2019
Israel	$	28,494	$	29,553
Others		5,119		5,456
	$	33,613	$	35,009

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LEASES (Schedule of Components of Lease Expense and Supplemental Cash Flow Information) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Components of lease expense
Operating lease cost	$ 2,667
Short-term lease	39
Total lease expenses	2,706
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities	2,819
Supplemental non-cash information related to lease liabilities arising from obtaining ROU assets	$ 5,391

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DERIVATIVE INSTRUMENTS (Schedule of Derivative Contracts on Unaudited Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Operating income (expenses)	$ 85	$ (262)
Financial income (expenses)	$ (559)	$ 1,076

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SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Vesting period	4 years
Expiration period	10 years
Ordinary shares reserved for issuance	8,639,000
Ordinary shares available for future grant	1,166,665
Weighted average grant date fair value of options granted	$ 1.57	$ 2.13
Unrecognized compensation cost related to non-vested stock options	$ 1,560
Unrecognized compensation cost, period for recognition	1 year
Additional Shares authorized	1,600,000
Minimum [Member]
Expiration period	6 years
Maximum [Member]
Expiration period	10 years
Restricted Stock Units RSUs [Member]
Weighted average grant date fair value of options granted	$ 3.84

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 29,041	$ 35,581
Short - term bank deposits		515
Trade receivables (net of allowance for doubtful accounts of $ 4,327 and $ 3,746 at December 31, 2018 and June 30, 2019 (unaudited), respectively)	121,449	123,451
Other accounts receivable and prepaid expenses	13,783	12,135
Inventories	73,900	53,509
Total current assets	238,173	225,191
NON-CURRENT ASSETS:
Long-term bank deposits	29	504
Deferred tax assets	6,236	7,476
Severance pay and pension fund	5,574	5,096
Property and equipment, net	35,009	33,613
Intangible assets, net	7,670	6,576
Other non-current assets	15,822	4,544
Total non-current assets	70,340	57,809
Total assets	308,513	283,000
CURRENT LIABILITIES:
Trade payables	79,431	78,892
Deferred revenues	3,770	3,873
Short term loans	8,900
Other accounts payable and accrued expenses	26,385	27,256
Total current liabilities	118,486	110,021
LONG-TERM LIABILITIES:
Deferred tax liability	24	28
Accrued severance pay and pensions	10,053	9,711
Deferred revenues	6,265
Other long-term payables	9,926	3,672
Total long-term liabilities	26,268	13,411
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital: Ordinary shares of NIS 0.01 par value - Authorized: 120,000,000 shares at December 31, 2018 and June 30, 2019 (unaudited); Issued: 83,571,181 and 83,711,656 shares at December 31, 2018 and June 30, 2019 (unaudited), respectively; Outstanding: 80,089,658 and 80,230,133 shares at December 31, 2018 and June 30, 2019 (unaudited), respectively.	215	214
Additional paid-in capital	416,835	415,408
Treasury shares at cost - 3,481,523 ordinary shares as of December 31, 2018 and June 30, 2019 (unaudited).	(20,091)	(20,091)
Accumulated other comprehensive loss	(8,016)	(9,208)
Accumulated deficits	(225,184)	(226,755)
Total shareholders' equity	163,759	159,568
Total liabilities and shareholders' equity	$ 308,513	$ 283,000

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]		Additional paid-in Capital [Member]	Treasury shares at cost [Member]	Accumulated other comprehensive income (loss) [Member]	Accumulated deficit [Member]	Total
Balance at Dec. 31, 2017	$ 214		$ 410,817	$ (20,091)	$ (7,171)	$ (249,871)	$ 133,898
Balance, shares at Dec. 31, 2017	78,045,192
Exercise of options and vesting of RSU's		[1]	2,611				2,611
Exercise of options and vesting of RSU's, shares	2,044,466
Share-based compensation expense			1,980				1,980
Other comprehensive income (loss), net					(2,037)		(2,037)
Cumulative effect of adoption of new accounting standard						70	70
Net income						23,046	23,046
Balance at Dec. 31, 2018	$ 214		415,408	(20,091)	(9,208)	(226,755)	$ 159,568
Balance, shares at Dec. 31, 2018	80,089,658						80,089,658
Exercise of options and vesting of RSU's	$ 1		255				$ 256
Exercise of options and vesting of RSU's, shares	140,475
Share-based compensation expense			1,172				1,172
Other comprehensive income (loss), net					1,192		1,192
Net income						1,571	1,571
Balance at Jun. 30, 2019	$ 215		$ 416,835	$ (20,091)	$ (8,016)	$ (225,184)	$ 163,759
Balance, shares at Jun. 30, 2019	80,230,133						80,230,133

[1] Represent an amount lower than $1.

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DERIVATIVE INSTRUMENTS

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

NOTE 5:- DERIVATIVE INSTRUMENTS

The Company enters into foreign currency forward and option contracts with financial institutions to protect against the exposure to changes in exchange rates of several foreign currencies that are associated with forecasted cash flows and existing assets and liabilities. The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation.

The fair value of derivative contracts in the unaudited consolidated balance sheets at June 30, 2019 and December 31, 2018 were as follows:

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	June 30, 2019
Derivatives designated as hedging instruments
Currency forward contracts	$	545	$	-
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	54	$	139
Total derivatives	$	599	$	139

	Other accounts receivable and prepaid expenses		Other accounts payable and accrued expenses
	December 31, 2018
Derivatives designated as hedging instruments
Currency forward contracts	$	3	$	587
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	2	$	446
Total derivatives	$	5	$	1,033

The notional amounts of outstanding derivative contracts in U.S. dollars at June 30, 2019 and December 31, 2018 were as follows:

	December 31, 2018		June 30, 2019
Derivatives designated as hedging instruments
Currency forward contracts	$	37,398	$	18,757
Derivatives not designated as hedging instruments
Currency forward and option contracts	$	21,882	$	29,209
Total derivatives	$	59,280	$	47,966

The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is up to 12 months.

For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains or losses from contracts that were not designated as hedging instruments are recognized in "financial income (expenses), net".

The effect of derivative contracts on the unaudited consolidated statements of operations for the six months ended June 30, 2019 and 2018 was as follows:

	Six months ended June 30,
	2018			2019
Operating income (expenses)	$	(262	)	$	85
Financial income (expenses)	$	1,076		$	(559	)

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REVENUES

6 Months Ended

Jun. 30, 2019

Revenues [Abstract]

REVENUES

NOTE 9:-       REVENUES

The Company recognizes contract liabilities, or deferred revenues, when it receives advance payments from customers before performance obligations have been performed. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period.

The following table presents the changes in deferred revenues balance during the six months ended June 30, 2019:

	Six months ended June 30, 2019
Balance, beginning of the period	$	3,873
New performance obligations		8,770
Reclassification to revenue as a result of satisfying performance obligations		(2,608	)
Balance, end of the period		10,035
Less: long-term portion of deferred revenue		6,265
Current portion, end of period	$	3,770

Remaining performance obligations represent contracted revenues that have not yet been recognized, which includes deferred revenues and non-cancelable contracts that will be recognized as revenue in future periods. The following table represents the remaining performance obligations as of June 30, 2019, which are expected to be satisfied and recognized in future periods:

	Remaining 2019		2020		2021 and thereafter
Unsatisfied performance obligations	$	16,114	$	10,330	$	6,265

The Company elected to apply the optional exemption under ASC 606 paragraph 10-50-14(a) not to disclose the remaining performance obligations that relate to contracts with an original expected duration of one year or less for which deferred revenues have not been recorded yet.

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SHAREHOLDERS' EQUITY (Summary Of Stock Options And RSUs Granted) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Stock Option [Member]
Number of awards
Outstanding at beginning of year	6,751,606
Granted	228,822
Exercised	(138,985)
Forfeited or expired	(290,082)
Outstanding at end of the period	6,551,361	6,751,606
Options exercisable at end of the period	4,542,841
Vested and expected to vest	6,246,178
Weighted average exercise price
Outstanding at beginning of year	$ 3.99
Granted	3.57
Exercised	1.84
Forfeited or expired	5.14
Outstanding at end of the period	3.99	$ 3.99
Options exercisable at end of the period	4.52
Vested and expected to vest	$ 4.03
Weighted-average remaining contractual term
Outstanding at end of the period	3 years 2 months 8 days	3 years 5 months 20 days
Options exercisable at end of the period	2 years 7 months 6 days
Vested and expected to vest	3 years 1 month 9 days
Aggregate intrinsic value
Outstanding at beginning of year	$ 7,937
Outstanding at end of the period	4,172	$ 7,937
Options exercisable at end of the period	3,237
Vested and expected to vest	$ 4,078
Restricted Stock Units RSUs [Member]
Number of awards
Outstanding at beginning of year	376,811
Granted	20,000
Vested	(1,713)
Forfeited or expired	(15,959)
Outstanding at end of the period	379,139	376,811
Vested and expected to vest	284,615
Aggregate intrinsic value
Outstanding at beginning of year	$ 1,424
Outstanding at end of the period	1,111	$ 1,424
Vested and expected to vest	$ 834

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LEASES (Schedule of Maturities of Lease Liabilities) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Leases [Abstract]
2019 (remaining of the year)	$ 2,750
2020	4,860
2021	1,077
2022	608
2023	382
2024 and thereafter	1,180
Total operating lease payments	10,857
Less imputed interest	886
Present value of lease liability	$ 9,971

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COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) ₪ in Thousands, $ in Thousands		6 Months Ended
	Apr. 14, 2019 ILS (₪)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Bank guarantees		$ 66,020		$ 72,842
Project guarantees			$ 29,100
Down payment receivables					$ 29,100
Income from OCS grants		541	626
Damages sought by plaintiff		$ 75,000	$ 75,000
Plaintiff's payment decided by court | ₪	₪ 40,000

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CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Jun. 30, 2019 USD ($) shares	Jun. 30, 2019 ₪ / shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2018 ₪ / shares
Statement of Financial Position [Abstract]
Trade receivables, allowance for doubtful accounts | $	$ 3,746		$ 4,327
Ordinary shares, par value | ₪ / shares		₪ 0.01		₪ 0.01
Ordinary shares, shares authorized	120,000,000		120,000,000
Ordinary shares, shares issued	83,711,656		83,571,181
Ordinary shares, shares outstanding	80,230,133		80,089,658
Treasury stock, ordinary shares	3,481,523		3,481,523

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flow from operating activities:
Net income	$ 1,571	$ 5,296
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	4,438	3,501
Stock-based compensation expense	1,172	1,032
Increase in trade and other receivables, net	(10,188)	(109)
Decrease (increase) in inventory, net of write off	(20,813)	7,049
Decrease in deferred tax asset, net	1,236	410
Increase (decrease) in trade payables and accrued liabilities	9,463	(10,237)
Increase in deferred revenues	6,150	1,796
Other adjustments	(136)	(186)
Net cash provided by (used in) operating activities	(7,107)	8,552
Cash flow from investing activities:
Purchase of property and equipment, net	(6,707)	(3,957)
Purchase of intangible assets, net	(2,792)	(1,336)
Proceeds from bank deposits	920
Net cash used in investing activities	(8,579)	(5,293)
Cash flow from financing activities:
Proceeds from exercise of stock options	256	374
Proceeds from bank credits and loans, net	8,900
Net cash provided by financing activities	9,156	374
Foreign currency translation adjustments on cash and cash equivalents	(10)	(112)
Increase (decrease) in cash and cash equivalents	(6,540)	3,521
Cash and cash equivalents at the beginning of the period	35,581	25,877
Cash and cash equivalents at the end of the period	$ 29,041	$ 29,398

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REVENUES (Schedule of Significant Changes in Deferred Revenues) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Revenues [Abstract]
Balance, beginning of the period	$ 3,873
New performance obligations	8,770
Reclassification to revenue as a result of satisfying performance obligations	(2,608)
Balance, end of the period	10,035
Less: long-term portion of deferred revenue	6,265
Current portion, end of period	$ 3,770

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FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents assets (liabilities) measured at fair value on a recurring basis as of June 30, 2019:

	June 30, 2019
	Fair value measurements using input type
	Level 2		Total
Derivatives instruments	$	460	$	460
Total assets	$	460	$	460

The following table presents assets (liabilities) measured at fair value on a recurring basis as of December 31, 2018:

	December 31, 2018
	Fair value measurements using input type
	Level 2			Total
Derivatives instruments	$	(1,028	)	$	(1,028	)
Total liabilities	$	(1,028	)	$	(1,028	)

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REVENUES (Tables)

6 Months Ended

Jun. 30, 2019

Revenues [Abstract]

Schedule of Significant Changes in Deferred Revenues

The following table presents the changes in deferred revenues balance during the six months ended June 30, 2019:

	Six months ended June 30, 2019
Balance, beginning of the period	$	3,873
New performance obligations		8,770
Reclassification to revenue as a result of satisfying performance obligations		(2,608	)
Balance, end of the period		10,035
Less: long-term portion of deferred revenue		6,265
Current portion, end of period	$	3,770

Schedule of Remaining Performance Obligations

The following table represents the remaining performance obligations as of June 30, 2019, which are expected to be satisfied and recognized in future periods:

	Remaining 2019		2020		2021 and thereafter
Unsatisfied performance obligations	$	16,114	$	10,330	$	6,265

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DERIVATIVE INSTRUMENTS (Schedule of Fair Value of Derivative Contracts) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other accounts receivable and prepaid expenses [Member]
Derivative [Line Items]
Total derivatives	$ 599	$ 5
Other accounts payable and accrued expenses [Member]
Derivative [Line Items]
Total derivatives	139	1,033
Derivatives designated as hedging instruments [Member] | Currency forward contracts [Member] | Other accounts receivable and prepaid expenses [Member]
Derivative [Line Items]
Total derivatives	545	3
Derivatives designated as hedging instruments [Member] | Currency forward contracts [Member] | Other accounts payable and accrued expenses [Member]
Derivative [Line Items]
Total derivatives		587
Derivatives not designated as hedging instruments [Member] | Currency forward and option contracts [Member] | Other accounts receivable and prepaid expenses [Member]
Derivative [Line Items]
Total derivatives	54	2
Derivatives not designated as hedging instruments [Member] | Currency forward and option contracts [Member] | Other accounts payable and accrued expenses [Member]
Derivative [Line Items]
Total derivatives	$ 139	$ 446