Core Insights - Ceragon Networks Ltd. has launched innovative products at the Mobile World Congress 2025, focusing on customer demands and expanding its portfolio in private network solutions [1][2][3] Product Innovations - The IP-100E is a dual-carrier E-band solution that delivers 25 Gbps from a single unit and up to 40 Gbps in a 4+0 all-outdoor link, representing a significant advancement in high-speed connectivity [2] - The IP-50GP is a cost-efficient split-mount microwave solution aimed at optimizing network performance while being budget-friendly [2] - EtherHaul 8020FX is a millimeter-wave backhaul solution that simplifies installation and operations, offering high capacity and cost efficiency [2] - The new IP-50EXA model in the mmW series provides an industry-leading price-performance ratio and is gaining market traction [3] Strategic Focus - Management emphasizes reducing the cost per gigabit of transport while enhancing user experience, driving innovation in next-generation mmW technology as an alternative to traditional microwave solutions [4] - Ceragon is promoting its Neptune-based product, the IP-100E, which aims to deliver 25 Gbps capacity at reduced costs, capitalizing on the demand for high-performance wireless technologies [6] Market Developments - Ceragon has secured orders for its new IP-50EX solution and is set to introduce the IP-50EX Premium, which will utilize mmW frequency for high capacity over longer distances [5] - The acquisition of End 2 End Technologies, valued at approximately $8.5 million, is expected to generate an additional $15-19 million in revenues in 2025 and be accretive to non-GAAP earnings in the second half of 2025 [7] Stock Performance - Ceragon's shares have declined 27.7% in the past three months, contrasting with the 2.1% growth of the Zacks Wireless Non-US industry [8]

Core Viewpoint - Ceragon has launched new innovative products at Mobile World Congress 2025, aiming to enhance its end-to-end wireless connectivity solutions for both core and private networks [1][2][5] Product Launch - The new products introduced include the IP-100E, IP-50GP, and EtherHaul 8020FX, which are designed to meet modern connectivity demands [1][8] - The IP-100E is a dual-carrier E-band solution capable of delivering 25 Gbps from one box and up to 40 Gbps in a 4+0 all-outdoor link [8] - The IP-50GP is a cost-optimized split-mount microwave solution that provides seamless connectivity without exceeding budget constraints [8] - The EtherHaul 8020FX is a millimeter-wave backhaul solution known for its ease of installation, operational efficiency, and high capacity [8] Market Position and Strategy - Ceragon aims to reduce customers' cost per gigabit of transport while enhancing user experiences, indicating a strong focus on innovation and customer needs [5] - The company emphasizes its commitment to redefining connectivity through groundbreaking solutions, particularly in millimeter wave technology, which opens new market opportunities [5] - Ceragon's solutions are deployed by over 600 service providers and more than 1,600 private network owners across 130 countries, showcasing its extensive market reach [7] Additional Offerings - At MWC, Ceragon will also present its software and service offerings, including the Network Digital Twin and Smart Activation Key, which address diverse connectivity challenges [4] - The company is focused on providing tailored, end-to-end solutions that enhance operational efficiency and user experience [6][7]

Core Viewpoint - Ceragon Networks Ltd. reported a mixed performance in Q4 2024, with adjusted EPS of 9 cents, missing estimates by 10%, but showing a 125% year-over-year increase. Revenue rose 18.3% to $106.9 million, surpassing estimates by 2.8% and reaching its highest level since Q4 2014 [1][2]. Group 1: Financial Performance - Adjusted EPS for Q4 2024 was 9 cents, missing the Zacks Consensus Estimate by 10%, but increased 125% year over year [1]. - Revenues for the quarter were $106.9 million, reflecting an 18.3% year-over-year growth and surpassing the Zacks Consensus Estimate by 2.8% [2]. - Non-GAAP gross profit increased 15.5% to $36.7 million, with a non-GAAP gross margin of 34.3%, slightly down from 35.1% year over year [9]. - Adjusted operating income for the quarter was $12.2 million, up from $7.8 million [10]. Group 2: Growth Catalysts - Ceragon is focusing on high-growth areas such as millimeter-wave products and private networks, aiming to drive recurring revenues [3]. - The company introduced innovative millimeter-wave products like the IP-50CX and IP-50EX, which are expected to strengthen its market position, particularly in India [4]. - Ceragon's first Neptune-based product, the IP-100E, aims to deliver 25 Gbps capacity at reduced costs, with additional product launches planned for 2025 [5]. - The launch of the Smart Activation Key is expected to enhance product flexibility and promote a software-as-a-service business model, contributing to steady revenue growth [6]. - Ceragon reported a 50% increase in bookings from private networks in 2024, supported by recent acquisitions of Siklu and End 2 End Technologies, which are expected to enhance its competitive edge [7]. Group 3: Market Position and Outlook - Revenues from India were $55.6 million, nearly half of total revenues for Q4, reflecting strong demand as the telecommunications market upgrades to 4G and 5G [8]. - Management projects revenues for 2025 to be between $390 million and $430 million, with non-GAAP operating margins expected to be at least 10% at the lower end of this range [11]. - The company is facing challenges in its Communications Service Provider business, with a slowdown noted and low visibility entering 2025 [12]. Group 4: Competitive Landscape - Ceragon is experiencing intense competition from Chinese players in various regions, which is impacting revenues [13]. - The company's stock has underperformed compared to peers, with a 24.4% decline in the past month, contrasting with industry growth [14][16]. - Analysts have revised earnings estimates down for the current quarter and year, indicating a cautious outlook [16].

Core Viewpoint - Ceragon Networks Ltd. reported mixed financial results for the fourth quarter of 2024, with adjusted earnings per share missing estimates but showing significant year-over-year growth. The company also completed an acquisition aimed at enhancing its service offerings in private networks, which is expected to contribute positively to future revenues and earnings. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were 9 cents, missing the Zacks Consensus Estimate by 10%, but increased 125% year over year [1] - Revenues rose 18.3% year over year to $106.9 million, surpassing the Zacks Consensus Estimate by 2.8%, marking the highest quarterly revenue since Q4 2014 [2] Acquisition Details - On February 7, 2025, Ceragon completed the acquisition of End 2 End (E2E) Technologies for approximately $8.5 million, with potential additional payments of up to $4.3 million based on financial targets [3][4] - The acquisition is projected to add $15-19 million in revenues for Ceragon in 2025 and is expected to be accretive to non-GAAP earnings by the second half of 2025 [4] Segment Performance - India generated revenues of $55.6 million, contributing 52% to total revenues, with record quarterly revenues and improved visibility for 2025 [6] - EMEA segment revenues were $16.2 million (15% of total), North America generated $13.4 million (12% of total), and APAC contributed 11% to total revenues [7][8] Operating Metrics - Non-GAAP gross profit increased 15.5% to $36.7 million, with a gross margin of 34.3%, slightly down from 35.1% year over year [9] - Adjusted operating income for the quarter was $12.2 million, up from $7.8 million in the previous year [10] Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents were $35.3 million, up from $28.2 million a year earlier, while net trade receivables increased to $149.6 million [11] - Operating cash flow for Q4 was $1.1 million, down from $11 million in the year-ago quarter [11] Outlook - Management projects revenues for 2025 to be between $390 million and $430 million, including contributions from the E2E acquisition, with non-GAAP operating margins expected to be at least 10% at the lower end of the range [12] Market Performance - Ceragon's shares have surged 30% in the past six months, contrasting with a 6.5% decline in the Zacks Wireless Non-US industry [13]

Financial Data and Key Metrics Changes - Ceragon achieved record operating profit and highest revenue levels since 2012, with annual revenue growth of over 13% in 2024 despite a more than 10% decline in the wireless transport market [7][9] - Q4 2024 revenues were $106.9 million, up 18.3% from $90.4 million in Q4 2023, with a non-GAAP operating income of $12.2 million, compared to $7.8 million in Q4 2023 [29][33] - Full year revenues reached $394.2 million, a 13.5% increase from $347.2 million in 2023, with net income of $36.4 million or $0.41 per diluted share compared to $16.7 million or $0.20 per diluted share in 2023 [35][36] Business Line Data and Key Metrics Changes - The company grew bookings from private networks by over 50% and secured approximately $7 million in annual recurring revenue from managed services, representing more than 30% of current ARR [9][10] - The introduction of new products, such as the IP-50CX and IP-50EX, contributed to market share gains, particularly in India [10][11] Market Data and Key Metrics Changes - In North America, revenue was $13.4 million, reflecting lower bookings in Q3 but an expected sequential growth in Q1 2025 [21] - India achieved record revenue of $55.6 million in Q4 2024, exceeding the previous record of $50.5 million in Q3 2024, driven by 4G and 5G network expansions [22][23] Company Strategy and Development Direction - Ceragon's growth strategy focuses on three pillars: millimeter-wave products, increasing market share in private networks, and enhancing recurring revenue through network operation and optimization [8] - The recent acquisition of E2E Technologies aims to strengthen Ceragon's position in the private network market, particularly in North America [15][63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth despite low visibility at the start of 2025, anticipating a recovery in the CSP market and continued outperformance [20][66] - The company expects 2025 revenues to be between $390 million to $430 million, with non-GAAP operating margins of at least 10% [39] Other Important Information - The company reported a cash position of $35.3 million at the end of 2024, up from $28.2 million at the end of 2023, and a net positive cash position of $10.1 million [36][37] - Inventory levels decreased to $59.7 million from $68.8 million, reflecting efforts to streamline inventory following improved component availability [37] Q&A Session Summary Question: Role of E2E Technologies in the energy industry - E2E is a well-known system integrator in North America for networks in the energy and utilities domain, with strong customer relationships and software capabilities that can enhance Ceragon's success in private networks [42][44] Question: Expectations for private networks growth - Management believes the second half of the year could see stronger growth in private networks, with ongoing M&A opportunities to strengthen the portfolio [61][65] Question: Comfort level and visibility in India - Negotiations with major Indian operators are ongoing, with expectations for increased demand for E-Band solutions as operators expand their fixed wireless networks [67][70] Question: Operating margin guidance and OpEx management - The company plans to align operating expenses with revenues and gross margins to achieve the target of 10% operating margin [72][74] Question: Success in India and technology wins - Ceragon's strong position in India is driven by reliable technology and long-term customer relationships, leading to ongoing demand [78][80] Question: Supply chain issues - Management reported no significant supply chain issues, although some component scarcity may occur [86][88]

Core Insights - Ceragon Networks (CRNT) reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, but showing an improvement from $0.04 per share a year ago, resulting in an earnings surprise of -10% [1] - The company posted revenues of $106.93 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.84% and up from $90.36 million year-over-year [2] - Ceragon has surpassed consensus revenue estimates two times over the last four quarters, while it has only exceeded EPS estimates once in the same period [2] Earnings Outlook - The immediate price movement of Ceragon's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $98.35 million, and for the current fiscal year, it is $0.36 on revenues of $412.95 million [7] Industry Context - The Wireless Non-US industry, to which Ceragon belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ceragon's stock performance [5][6]

Core Insights - Ceragon achieved record operating profit and highest revenue levels since 2012, indicating successful execution of its growth strategy [4][6] - The company expanded its presence in India and grew its private network business, supported by two acquisitions [4][6] - Management expresses cautious optimism for 2025, anticipating growth and improved profitability amid initial recovery signs in the CSP market [4] Q4 2024 Financial Highlights - Revenues reached $106.9 million, an increase of 18.3% from $90.4 million in Q4 2023 and 4.1% from $102.7 million in Q3 2024 [5][6] - GAAP operating income was $9.5 million, compared to $4.2 million in Q4 2023 and $14.6 million in Q3 2024 [5][6] - Net income on a GAAP basis was $3.6 million, or $0.04 per diluted share, compared to a loss of $(1.2) million in Q4 2023 [6][7] FY 2024 Financial Highlights - Total revenues for FY 2024 were $394.2 million, up 13.5% from $347.2 million in 2023, marking the highest level since 2012 [8][9] - GAAP operating income reached a record $38.7 million, compared to $21.2 million in 2023 [8] - GAAP net income was $24.1 million, or $0.27 per diluted share, compared to $6.2 million in 2023 [9] Revenue Breakdown by Geography - In Q4 2024, revenue distribution was as follows: India 52%, EMEA 15%, North America 12%, APAC 11%, and Latin America 10% [11] - India achieved all-time record quarterly revenues, with improving visibility for 2025 commercial terms with major customers [6][11] Outlook for 2025 - Management expects revenue between $390 million and $430 million for 2025, including contributions from the E2E acquisition [11] - Non-GAAP operating margins are anticipated to be at least 10% at the low end of the revenue range, with improved free cash flow compared to 2024 [11]

Core Viewpoint - Ceragon Networks Ltd. (CRNT) is set to report its fourth-quarter 2024 results on February 11, with expectations of significant earnings growth and revenue increase compared to the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for earnings in the upcoming quarter is 10 cents, reflecting a 150% increase from the same quarter last year [2]. - Total revenue is projected at $104 million, indicating a 15% year-over-year growth [2]. - CRNT previously exceeded the Zacks Consensus Estimate for earnings by 77.8% in the last reported quarter [2]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Ceragon, with an Earnings ESP of -5.26% and a Zacks Rank of 3 (Hold) [3][4]. Market Demand and Growth Drivers - Strong demand for Ceragon's solutions, particularly in private networks in North America, is expected to support top-line performance [5]. - North America contributed $24.5 million to overall revenues in Q3 2024, highlighting the region's importance [5]. - Ceragon's strong presence in India, with revenues of $50.5 million in Q3 2024, is a significant growth driver as the market upgrades to 4G and 5G infrastructure [6]. Strategic Acquisitions - The acquisition of Siklu is anticipated to enhance market share in the Enterprise Security domain in North America, contributing to revenue growth [7]. - Ceragon's revenue guidance for 2024, including Siklu's contribution, is projected between $390 million and $400 million, representing a 12% to 15% year-over-year growth [8]. Profitability Outlook - Management expects non-GAAP operating margins to be at least 10% at the mid-point of the revenue guidance, indicating improved profitability [10]. Competitive Landscape - The company faces challenges from a slowdown in public network domains outside of India and intense competition from Chinese players in various regions [10][11]. - A slowdown in orders from Tier 1 customers in the CSP business was noted, which could impact revenue visibility [11]. Stock Performance - CRNT shares have increased by 83.6% over the past six months, outperforming the Wireless Non-U.S. industry and the Zacks S&P 500 composite [12]. - The stock is trading at a forward 12-month Price/Earnings ratio of 14.13X, which is higher than the industry average of 8.61X, indicating a premium valuation [15]. Strategic Focus - Ceragon aims to capitalize on growth initiatives in mmW products, Private Networks, and Managed Services, enhancing its competitive edge [16]. - Recent acquisitions, including End 2 End Technologies, are expected to provide synergies and operational efficiencies, although they also introduce integration risks [17][18].

Company Overview - Ceragon Networks (CRNT) shares increased by 11.4% to $5.37, following a period of 10.1% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company reported a 17.7% revenue increase in the last quarter, driven by strong demand for its solutions, particularly in the North American private networks sector and India [2] Acquisition Details - On February 3, 2025, Ceragon completed the acquisition of End 2 End Technologies, a U.S. systems integrator and software developer focused on Private Networks in the Energy and Utilities sectors [3] - This acquisition is expected to enhance Ceragon's position in the telecom market by providing system integration expertise and a unique network management platform [3] Financial Projections - Ceragon anticipates that the acquisition will be accretive to its non-GAAP earnings by the second half of 2025 [4] - For 2024, the company expects revenues between $390 million and $400 million, reflecting a year-over-year growth of 12% to 15% [4] - The upcoming quarterly earnings are projected at $0.11 per share, representing a 175% increase year-over-year, with revenues expected to reach $103.98 million, up 15.1% from the previous year [4] Market Trends - The consensus EPS estimate for Ceragon has remained unchanged over the last 30 days, suggesting that stock price movements may be influenced by trends in earnings estimate revisions [5][6] - Ceragon currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [6]

Expands Private Networks Offerings in North America; Expected to be Accretive to Non-GAAP Earnings Basis, by the Second Half of 2025 ROSH HA'AIN, Israel, Feb. 3, 2025 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today announced that it has completed the acquisition of End 2 End Technologies, LLC, a U.S. systems integration and software development company that serves Private Networks, primarily in the Energy and Utilities markets. End 2 End Techno ...