, /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, will showcase its latest breakthroughs at India Mobile Congress (IMC) 2025, taking place October 8–11 in New Delhi. Visitors can experience exclusive live demos and explore solutions designed to meet the most complex network demands at Booth A10. Key demonstrations will include: In addition to live demos, Ceragon executives will bring their insights to the following IMC panels: "IMC is the perfect st ...

Group 1: ModivCare (NASDAQ: MODV) - ModivCare is undergoing a significant restructuring process following a Chapter 11 bankruptcy filing, focusing on debt reduction and capital stabilization [2][3] - The restructuring has the support of over 90% of First Lien and 70% of Second Lien Lenders, with the company set to receive $100 million in debtor-in-possession financing and maintain over $100 million in liquidity while reducing debt by $1.1 billion [3] - Despite challenges such as potential delisting and operational hurdles, analysts are observing whether these efforts could lead to recovery or make ModivCare an acquisition target, with the stock priced at $0.18, having corrected almost 100% year to date [4] Group 2: Ceragon Networks (NASDAQ: CRNT) - Ceragon Networks has experienced bearish momentum in 2025, with the stock dropping almost 50% year to date, trading at $2.37 [5] - The company generates steady revenue and is involved in modernizing communications networks, although recent statutory profit was reduced by $5.3 million due to unusual one-off items, indicating potential for profit growth if these items do not recur [8] - Ceragon faces challenges in India related to carrier financing and logistics, while North America shows strong performance; management is focused on technology leadership, validated by a recent U.S. tier 1 win expected to ramp in 2026, but profitability issues and competitive pressures remain concerns [9]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $82.3 million, down 14.4% from $96.1 million in Q2 2024 [19] - Non-GAAP earnings per share were $0.03, compared to $0.11 in Q2 2024 [22] - Gross profit was $29 million, down 14.2% from $33.8 million in the prior year, with a non-GAAP gross margin of 35.2%, unchanged from the previous year [19][22] Business Line Data and Key Metrics Changes - Revenue from North America was $26.8 million, making it the strongest region, while India contributed $24.8 million, a decrease of 30% year-over-year [19][13] - Research and development expenses were $7.2 million, down from $8.2 million in Q2 2024, while sales and marketing expenses increased to $11.1 million from $11 million [20] - Operating income on a non-GAAP basis was $4.7 million, down from $13.1 million in Q2 2024, primarily due to the absence of a prior year credit loss recovery [22] Market Data and Key Metrics Changes - Revenue from Indian customers was significantly impacted, with a 30% decrease year-over-year, attributed to financial challenges faced by a key customer [13][14] - North America showed strong performance, with bookings and revenue exceeding $20 million, indicating a robust market presence [13] Company Strategy and Development Direction - The company is focused on expanding its technological capabilities and market share, particularly in North America, where new technologies are being introduced [9][10] - The strategy includes leveraging new products and technologies to capture market share and address customer needs across various regions [8][16] - The company remains committed to investing in strategic initiatives despite short-term revenue challenges, indicating confidence in long-term growth [16][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential in India, despite current challenges, and believes that market share remains intact [14][26] - The outlook for the second half of 2025 is uncertain due to the situation in India, but management expects to maintain profitability and cash generation [26][27] - The company anticipates that the second half revenue will be roughly in line with the first half, with continued investment in strategic pillars [27] Other Important Information - The company generated $6.1 million in free cash flow in Q2 2025, allowing for debt reduction despite revenue headwinds [24] - The cash position at the end of Q2 2025 was $29.2 million, down from $35.3 million at the end of 2024, primarily due to acquisition-related cash payments [23] Q&A Session Summary Question: Concerns about market share loss in India - Management reassured that the slowdown in India is not due to losing market share but rather external financial challenges faced by a key customer, with ongoing discussions indicating a strong position in the market [30][32] Question: Sustainability of North America's strong performance - Management indicated that the strong performance in North America is expected to continue into the second half of the year, supported by a solid backlog and promising private network opportunities [38][39] Question: Impact of revenue headwinds on operating expenses - Management stated that as long as the company remains profitable and generates cash, it will continue to invest in strategic initiatives, with a focus on maintaining operational discipline [58][60] Question: Updates on the Cyclu point-to-multipoint solution - Management highlighted use cases in smart cities and public safety, with potential market sizes ranging from a few million to tens of millions of dollars annually [66][68] Question: Acquisition strategy amidst revenue challenges - Management confirmed that acquisition efforts have not slowed down and are actively seeking suitable opportunities, with a positive cash flow enabling further acquisitions [78][80]

Core Viewpoint - Ceragon Networks reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, but down from $0.11 per share a year ago [1] - The company posted revenues of $82.26 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 8.01% and down from $96.09 million year-over-year [2] Financial Performance - Ceragon has surpassed consensus EPS estimates two times over the last four quarters [2] - The company has topped consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $101.25 million, and for the current fiscal year, it is $0.25 on revenues of $389.1 million [7] Stock Performance - Ceragon shares have declined approximately 51.6% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Outlook - The Wireless Non-US industry, to which Ceragon belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ceragon's stock performance [5]

[Ceragon Reports 2025 Second Quarter Financial Results](index=1&type=section&id=Ceragon%20Reports%202025%20Second%20Quarter%20Financial%20Results) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Ceragon achieved non-GAAP profitability and positive free cash flow in Q2 2025, reporting **$82.3 million** revenue and a **$1.3 million** GAAP net loss despite a challenging environment Q2 2025 Key Financial Results (GAAP) | Metric | Q2 2025 (million USD) | Q2 2024 (million USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 82.3 | 96.1 | -14.4% | | Gross Profit | 28.4 | 33.5 | -15.1% | | Gross Margin | 34.6% | 34.8% | -0.2 pp | | Operating Income | 2.2 | 10.4 | -78.8% | | Net Income (Loss) | (1.3) | 7.8 | -116.7% | | Diluted EPS | (0.01) | 0.09 | -111.1% | Q2 2025 Key Financial Results (Non-GAAP) | Metric | Q2 2025 (million USD) | | :--- | :--- | | Gross Margin | 35.2% | | Operating Profit | 4.7 | | Net Income | 2.5 | | Diluted EPS | 0.03 | - Cash and cash equivalents totaled **$29.2 million** as of June 30, 2025, down from **$35.3 million** on December 31, 2024[8](index=8&type=chunk) [Q2 2025 Business Highlights](index=1&type=section&id=Q2%202025%20Business%20Highlights) Ceragon enhanced competitive advantage and market opportunities in Q2 2025, securing a new Tier-1 mobile network operator as a preferred vendor - CEO Doron Arazi noted the company's business resilience and agility in Q2, achieving non-GAAP profitability, cash generation, debt reduction, and strategic roadmap advancement despite rapid changes in the Indian market[3](index=3&type=chunk) - North American market showed strong momentum with orders and revenue growing sequentially for the third consecutive quarter, exceeding **$20 million** and reaching a new high since Q2 2024[10](index=10&type=chunk) - Secured 'preferred vendor' status with a new Tier-1 mobile network operator in North America for a project utilizing innovative Siklu-based solutions[10](index=10&type=chunk) - Recent acquisitions continue to generate incremental opportunities and expand capabilities in private networks and CSP markets[10](index=10&type=chunk) [Revenue Breakout by Geography](index=2&type=section&id=Revenue%20Breakout%20by%20Geography) In Q2 2025, North America and India were Ceragon's largest revenue contributors, accounting for **33%** and **30%** of total revenue, respectively Q2 2025 Revenue Distribution by Geography | Region | Share (%) | | :--- | :--- | | North America | 33% | | India | 30% | | EMEA | 17% | | Latin America | 10% | | Asia Pacific | 10% | [Outlook](index=2&type=section&id=Outlook) Ceragon anticipates H2 2025 revenue to be largely consistent with H1, expecting non-GAAP profit and positive cash flow, while laying groundwork for 2026 growth - H2 2025 revenue is expected to be largely consistent with H1[18](index=18&type=chunk) - Non-GAAP profit and positive cash flow are anticipated at this revenue level in H2 2025[18](index=18&type=chunk) - Momentum in field engagements, customer trials, and new opportunities, alongside a rebound in stalled and delayed projects in India, is building a foundation for re-growth in 2026[18](index=18&type=chunk) - Current visibility, particularly in India, is impacting the company's ability to reaffirm previous guidance[12](index=12&type=chunk) [About Ceragon](index=2&type=section&id=About%20Ceragon) Ceragon is a global innovator and leading provider of end-to-end wireless connectivity solutions, specializing in transmission, access, and AI-driven managed services - Core business as a global innovator and leading provider of end-to-end wireless connectivity solutions, focusing on transmission, access, and AI-driven managed and professional services[14](index=14&type=chunk) - Customer base includes service providers, utilities, public safety organizations, government agencies, and energy companies[15](index=15&type=chunk) - Solutions deployed in over **130 countries** for more than **600 service providers** and **1,600 private network owners**[15](index=15&type=chunk) - Value proposition is to enhance operational efficiency and enrich end-user experiences through innovative end-to-end solutions (hardware, software, managed, and professional services), aiming to reduce Total Cost of Ownership (TCO) by minimizing spectrum, power, real estate, and labor resources[14](index=14&type=chunk)[16](index=16&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements under safe harbor provisions, based on management's current beliefs and expectations, subject to various risks and uncertainties - This press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995[19](index=19&type=chunk) - These forward-looking statements are based on Ceragon management's current beliefs, expectations, and assumptions regarding the company's business, financial condition, results of operations, micro and macro market trends, and other related matters[19](index=19&type=chunk) - Forward-looking statements involve known and unknown risks and uncertainties that could cause Ceragon's future results or performance to differ materially from expectations, including but not limited to the realization of company forecasts, market developments, global economic trends, the war situation in Israel, 5G transition delays, customer concentration, revenue volatility, tax disputes, and supply chain issues[20](index=20&type=chunk) - Investors are cautioned not to place undue reliance on forward-looking statements, and Ceragon undertakes no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release, unless required by law[21](index=21&type=chunk)[22](index=22&type=chunk) - The results reported in this press release are preliminary and unaudited, and investors should be aware of potential differences between these results and the audited results to be reported[23](index=23&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Ceragon's Q2 2025 condensed consolidated statements of operations show year-over-year declines in revenue and gross profit, leading to significantly reduced operating and net income Condensed Consolidated Statements of Operations for the Three Months Ended June 30 (thousand USD) | Metric | 2025 (thousand USD) | 2024 (thousand USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 82,262 | 96,088 | -14.4% | | Cost of Sales | 53,822 | 62,627 | -14.1% | | Gross Profit | 28,440 | 33,461 | -15.0% | | Research and Development Expenses, Net | 7,332 | 8,385 | -12.6% | | Selling and Marketing | 11,722 | 11,508 | +1.9% | | General and Administrative | 6,940 | 2,295 | +202.4% | | Operating Income | 2,217 | 10,358 | -78.6% | | Net Income (Loss) | (1,267) | 7,833 | -116.2% | | Diluted EPS | (0.01) | 0.09 | -111.1% | Condensed Consolidated Statements of Operations for the Six Months Ended June 30 (thousand USD) | Metric | 2025 (thousand USD) | 2024 (thousand USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 170,914 | 184,586 | -7.4% | | Cost of Sales | 113,375 | 119,057 | -4.8% | | Gross Profit | 57,539 | 65,529 | -12.2% | | Research and Development Expenses, Net | 15,581 | 17,232 | -9.6% | | Selling and Marketing | 24,019 | 22,769 | +5.5% | | General and Administrative | 12,376 | 8,158 | +51.7% | | Restructuring and Other Expenses | 3,732 | 1,416 | +163.6% | | Operating Income | 1,127 | 14,577 | -92.3% | | Net Income (Loss) | (2,247) | 8,236 | -127.3% | | Diluted EPS | (0.03) | 0.09 | -133.3% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Ceragon's total assets decreased to **$328.4 million** from **$345.0 million** at December 31, 2024, primarily due to lower cash and accounts receivable Condensed Consolidated Balance Sheets (thousand USD) | Metric | June 30, 2025 (thousand USD) | December 31, 2024 (thousand USD) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 29,216 | 35,311 | -17.2% | | Accounts Receivable, Net | 124,051 | 149,619 | -17.1% | | Inventories | 59,944 | 59,693 | +0.4% | | Total Current Assets | 234,205 | 261,038 | -10.3% | | Total Non-Current Assets | 94,180 | 83,958 | +12.2% | | Total Assets | 328,385 | 344,996 | -4.9% | | Accounts Payable | 73,759 | 91,157 | -19.1% | | Short-term Loans | 20,500 | 25,200 | -18.6% | | Total Current Liabilities | 125,865 | 151,448 | -16.9% | | Total Non-Current Liabilities | 30,743 | 27,223 | +12.9% | | Total Shareholders' Equity | 171,777 | 166,325 | +3.3% | [Condensed Consolidated Statements of Cash Flow](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) For the three months ended June 30, 2025, Ceragon generated **$10.8 million** in net cash from operating activities, leading to a **$1.5 million** net increase in cash for the quarter Condensed Consolidated Statements of Cash Flow for the Three Months Ended June 30 (thousand USD) | Metric | 2025 (thousand USD) | 2024 (thousand USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 10,762 | 4,822 | +123.2% | | Net Cash from Investing Activities | (5,130) | (8,944) | -42.6% | | Net Cash from Financing Activities | (4,557) | (1,766) | +158.0% | | Net Change in Cash and Cash Equivalents | 1,528 | (2,480) | -161.6% | | Cash and Cash Equivalents at Period End | 29,216 | 26,303 | +11.1% | Condensed Consolidated Statements of Cash Flow for the Six Months Ended June 30 (thousand USD) | Metric | 2025 (thousand USD) | 2024 (thousand USD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 13,372 | 11,349 | +17.8% | | Net Cash from Investing Activities | (15,707) | (8,944) | +75.6% | | Net Cash from Financing Activities | (4,049) | (3,608) | +12.2% | | Net Change in Cash and Cash Equivalents | (6,095) | (1,934) | +215.1% | | Cash and Cash Equivalents at Period End | 29,216 | 26,303 | +11.1% | [Reconciliation of GAAP to Non-GAAP Financial Results](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Results) This section details the reconciliation of Ceragon's GAAP to non-GAAP financial measures for Q2 2025 and 2024, highlighting key adjustments impacting profitability Reconciliation of GAAP to Non-GAAP Operating Income for the Three Months Ended June 30 (thousand USD) | Metric | GAAP Operating Income | Share-based Compensation Expense | Amortization of Acquired Intangible Assets | Acquisition and Integration Related Expenses | Non-GAAP Operating Income | | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | 2,217 | 1,549 | 726 | 229 | 4,721 | | 2024 | 10,358 | 1,566 | 306 | 915 | 13,145 | Reconciliation of GAAP to Non-GAAP Operating Income for the Six Months Ended June 30 (thousand USD) | Metric | GAAP Operating Income | Share-based Compensation Expense | Amortization of Acquired Intangible Assets | Restructuring and Other Expenses | Acquisition and Integration Related Expenses | Non-GAAP Operating Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | 1,127 | 2,199 | 1,453 | 3,732 | 704 | 9,215 | | 2024 | 14,577 | 2,470 | 766 | 1,416 | 1,377 | 20,730 | Reconciliation of GAAP to Non-GAAP Net Income for the Three Months Ended June 30 (thousand USD) | Metric | GAAP Net Income (Loss) | Share-based Compensation Expense | Amortization of Acquired Intangible Assets | Acquisition and Integration Related Expenses | Lease - Finance Expense (Income) | Non-cash Revaluation | Non-GAAP Net Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | (1,267) | 1,549 | 726 | 229 | 1,233 | (16) | 2,454 | | 2024 | 7,833 | 1,566 | 306 | 915 | (207) | (477) | 9,936 | Reconciliation of GAAP to Non-GAAP Net Income for the Six Months Ended June 30 (thousand USD) | Metric | GAAP Net Income (Loss) | Share-based Compensation Expense | Amortization of Acquired Intangible Assets | Restructuring and Other Expenses | Acquisition and Integration Related Expenses | Lease - Finance Expense (Income) | Non-cash Revaluation | Non-cash Tax Adjustments | Non-GAAP Net Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | (2,247) | 2,199 | 1,453 | 3,732 | 704 | 1,138 | (1,948) | - | 5,031 | | 2024 | 8,236 | 2,470 | 766 | 1,416 | 1,377 | (319) | 196 | 413 | 14,679 | [Investor & Media Contact](index=3&type=section&id=Investor%20%26%20Media%20Contact) This section provides contact details for Ceragon's investor and media relations for further communication and inquiries - Contact: Rob Fink, FNK IR[24](index=24&type=chunk) - Phone: **+1-646-809-4048**[24](index=24&type=chunk) - Email: crnt@fnkir.com[24](index=24&type=chunk)

Company Overview - Ceragon is a leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services [3][4] - The company serves a diverse range of customers, including service providers, utilities, public safety organizations, government agencies, and energy companies, with a focus on 5G & 4G broadband wireless connectivity [4] Upcoming Earnings Release - Ceragon will release its earnings results for the second quarter ended June 30, 2025, on August 6, 2025, before the market opens [1] - A Zoom webcast will be held at 8:30 a.m. ET on the same day to review the results, including a Q&A session for investors [2] Market Position and Solutions - Ceragon's solutions are deployed by over 600 service providers and more than 1,600 private network owners across more than 130 countries [4] - The company offers high-capacity wireless solutions that are reliable, fast to deploy, and optimized to lower total cost of ownership (TCO) through minimal use of spectrum, power, real estate, and labor resources [4]

Company Overview - Ceragon Networks (NASDAQ: CRNT) is a leading provider of end-to-end wireless connectivity solutions, specializing in transport, access, and AI-powered managed and professional services [3][4] - The company serves a diverse range of customers, including service providers, utilities, public safety organizations, government agencies, and energy companies, with a focus on 5G and 4G broadband wireless connectivity [4] Conference Participation - Ceragon management, including CEO Doron Arazi and CFO Ronen Stein, will participate in the 15th Annual ROTH London Conference from June 24-26, 2025, at the Four Seasons Hotel London [1][2] - One-on-one meetings with Ceragon management can be scheduled through ROTH sales representatives for interested investors [2] Market Position and Solutions - Ceragon's solutions are deployed by over 600 service providers and more than 1,600 private network owners across more than 130 countries, highlighting its global reach and market presence [4] - The company emphasizes its ability to deliver reliable, fast-to-deploy, high-capacity wireless solutions that optimize total cost of ownership (TCO) through efficient use of resources [4]

Company Overview - Ceragon Networks Ltd. (NASDAQ: CRNT) focuses on 5G and communication technologies, providing wireless products and services to wireless and cellular service providers [1] Market Position - The company is based in Israel, listed in the US, and operates globally, indicating a strong international presence in the telecommunications sector [1]

Core Viewpoint - Ceragon Networks Ltd. (CRNT) has experienced a significant decline in share price, with a 44.2% drop over the past six months, underperforming both the Wireless-Non U.S. industry and the S&P 500 composite [1] Financial Performance - In the first quarter of 2025, Ceragon reported earnings and revenues that exceeded the Zacks Consensus Estimate, although earnings declined year over year while revenues saw marginal growth [2] - The company reaffirmed its 2025 revenue outlook, projecting revenues between $390 million and $430 million, with a reported revenue of $394.2 million in 2024 [3] - Non-GAAP operating margins are expected to be at least 10% at the lower end of the revenue range, and the company anticipates year-over-year growth in free cash flow [3] Product Development and Market Position - Ceragon is focusing on high-growth areas such as millimeter-wave products and private networks, having launched innovative products like IP-100E, IP-50GP, and EtherHaul 8020FX at the Mobile World Congress 2025 [5] - The IP-100E is a dual-carrier E-band solution capable of delivering 25 Gbps from a single unit and up to 40 Gbps in a 4+0 all-outdoor link, enhancing high-speed connectivity [6] - Recent acquisitions of Siklu and End 2 End Technologies, LLC are expected to strengthen Ceragon's competitive position in the private network sector [6] Market Sentiment and Valuation - The recent decline in CRNT shares has created an attractive entry point for investors, with the stock trading at a forward 12-month price-to-earnings (P/E) ratio of 6.91, below the industry's average of 10.56 [8] - Despite a 25% reduction in earnings estimates for the current quarter, estimates for the next quarter have been revised upward by 12.5%, and current year estimates have increased by 7.7%, indicating optimism about long-term growth potential [10] Challenges and Competitive Landscape - Ceragon faces headwinds in select public network segments due to tariff fluctuations and a challenging global macroeconomic environment, along with intensified competition from Chinese vendors in various regions [11] - Volatile foreign exchange rates are also impacting the company's performance, as it generates revenues and incurs expenses in multiple currencies [12]