Core Insights - Ceragon has completed the acquisition of End 2 End Technologies, enhancing its capabilities in the private networks sector, particularly in the Energy and Utilities markets [1][2][3] - The acquisition is expected to be accretive to Ceragon's non-GAAP earnings by the second half of 2025 [1] - Ceragon aims to leverage End 2 End Technologies' expertise in radio frequency communications and network management software to better serve private network customers in North America [2][3] Company Overview - Ceragon is a leading provider of end-to-end wireless connectivity solutions, specializing in transport, access, and AI-powered managed services [5] - The company serves a diverse customer base, including service providers, utilities, public safety organizations, and government agencies, with solutions deployed in over 130 countries [6] - Ceragon's offerings are designed to optimize total cost of ownership (TCO) through efficient use of resources, positioning the company as a key player in the wireless connectivity market [6]

Core Insights - The article discusses the author's extensive experience in value investing and highlights the importance of analyzing and valuing listed companies in the ASEAN and US regions [1]. Group 1 - The author has two decades of investing experience and is a self-taught value investor [1]. - The blog focuses on value investing through case studies, providing insights into various companies [1]. - The author has served as a Board member of a Malaysia listed company for several decades, offering a unique perspective on the market [1]. Group 2 - The author has published a value investing book titled "Do you really want to master value investing?" available on Amazon [1]. - There is a disclosure stating that the author has no stock or derivative positions in any mentioned companies and no plans to initiate any such positions within the next 72 hours [1].

Core Viewpoint - Ceragon Networks Ltd. (CRNT) has demonstrated strong stock performance with a 70.7% increase over the past three months, significantly outperforming the industry and major indices [1][4]. Financial Performance - Revenues increased by 17.7% to $102.7 million in the last reported quarter, driven by strong demand, particularly in North America and India [5][8]. - North America contributed $24.5 million to overall revenues in Q3 2024, while revenues from India reached $50.5 million, accounting for nearly half of total revenue [5][8]. - The company added four new private network customers in Q3 2024, totaling 16 new customers year-to-date, representing $11.5 million in incremental bookings [6]. Product Development - Ceragon is advancing its product roadmap with the introduction of the IP50EX solution, which is expected to meet the specific needs of the Indian market [10]. - The IP-100E product aims to deliver 25Gbps capacity in a single box, enhancing cost efficiency and performance [11]. Profitability Metrics - Non-GAAP operating income rose to $15.8 million from $8 million year-over-year, with non-GAAP earnings per share increasing to 16 cents from 6 cents [12]. - The company reported a positive free cash flow of over $10 million and a net cash position of $8.8 million at the end of the quarter [13]. Acquisition Strategy - Ceragon's 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 [15][16]. - The previous acquisition of Siklu is anticipated to contribute $25-$29 million to revenues in 2024 [17]. Market Outlook - Analysts have revised earnings estimates upward in the past 60 days, indicating a positive outlook for CRNT [18]. - The company expects revenues for 2024 to be between $390 million and $400 million, reflecting a year-over-year growth of 12% to 15% [9]. Challenges - CRNT faces a slowdown in public network domains outside of India and intense competition from Chinese players in various regions [20]. - A slowdown in orders from Tier 1 customers could impact revenue visibility, as these customers are significant revenue sources [20]. Valuation - CRNT's stock is trading at a premium with a forward 12-month Price/Earnings ratio of 12.33X compared to the industry average of 8.32X [21].

Core Viewpoint - Ceragon Networks Ltd. has announced the acquisition of End 2 End Technologies for approximately $8.5 million, with potential additional payments based on financial targets, aiming to enhance its market position in the telecommunications sector, particularly in private network solutions for the energy and utilities sectors [1][4]. Group 1: Acquisition Details - The acquisition is valued at approximately $8.5 million, with an additional potential payment of up to $4.3 million contingent on specific financial targets in 2025 [1]. - The transaction is expected to close by the end of this month, subject to customary closing conditions [3]. - Ceragon anticipates the acquisition will generate an additional $15-19 million in revenues in 2025 and be accretive to its non-GAAP earnings in the second half of 2025 [4]. Group 2: Company Profile of End 2 End Technologies - End 2 End Technologies is headquartered in Arizona and has a strong reputation in the energy and utilities verticals, employing approximately 50 people [2]. - The company specializes in radio frequency communications and the development of proprietary software, aligning with Ceragon's commitment to innovation [2]. Group 3: Strategic Implications - The acquisition will provide Ceragon access to End 2 End Technologies' experienced team and advanced network management software platform, enhancing its capabilities in the energy market globally [3]. - This deal is expected to help Ceragon meet the growing demand for private network solutions in North America, expanding its market share and deepening its involvement in the energy and utilities sectors [3]. Group 4: Stock Performance - Ceragon's shares have gained 82.7% over the past year, significantly outperforming the industry's decline of 11.6% [5].

Acquisition Details - Ceragon has entered into a definitive agreement to acquire End 2 End Technologies for approximately $8.5 million, with an additional $4.3 million contingent on achieving certain financial goals primarily in 2025 and paid mostly in 2026 [1] - The acquisition will be financed through Ceragon's available cash and unused credit facilities, with approximately 215,000 ordinary shares issued at closing [1] - The transaction is expected to close by the end of January 2025, subject to customary closing conditions [3] Strategic Impact - The acquisition is expected to accelerate Ceragon's strategy in the Private Networks domain, particularly in the Energy and Utilities markets [1] - End 2 End Technologies brings proven system integration capabilities and a unique network management software platform, which aligns with Ceragon's approach to innovation [2] - The acquisition is anticipated to generate $15-19 million in incremental revenue for Ceragon in 2025 and be accretive to non-GAAP earnings by the second half of 2025 [4] Company Profiles - End 2 End Technologies is a US-based systems integration and software development company with approximately 50 employees, specializing in the Energy and Utilities markets [2][5] - Ceragon is a global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and AI-powered managed & professional services [6] Market and Industry Context - End 2 End Technologies has a strong brand and deep technical expertise in radio frequency communications, serving dozens of customers in the US [2] - Ceragon's solutions are deployed by over 600 service providers and more than 1,600 private network owners in over 130 countries, focusing on 5G & 4G broadband wireless connectivity and mission-critical services [11]

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 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] Upcoming Events - Ceragon's management, including CEO Doron Arazi and CFO Ronen Stein, will present at the 27th Annual Needham Growth Conference in New York City on January 15 at 8:45 am ET [2] - Interested investors can access the presentation via a webcast or schedule one-on-one meetings with management through their Needham representative [2] Market Position - Ceragon's solutions are deployed by over 600 service providers and more than 1,600 private network owners across 130 countries, highlighting its global reach and influence in the wireless connectivity market [4] - The company emphasizes its commitment to operational efficiency and high-quality user experience, positioning itself as a leader in the "connectivity everywhere" era [4]

Core Viewpoint - Ceragon Networks (CRNT) shares experienced a significant increase of 15.9% to close at $5.48, driven by strong trading volume and a prior 10% gain over the last four weeks [1] Financial Performance - The company reported a 17.7% increase in revenues in the last quarter, attributed to strong demand for its solutions, particularly in the North American private networks market and healthy demand in India [2] - Non-GAAP operating income for the last quarter was $15.8 million, positively impacted by improving top-line performance and synergies from the acquisition of Siklu [3] - For 2024, Ceragon expects revenues between $390 million and $400 million, indicating a year-over-year growth of 12% to 15% [3] Earnings Expectations - Ceragon is projected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 175%, with expected revenues of $103.98 million, up 15.1% from the previous year [4] - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, suggesting that stock price movements may be influenced by trends in earnings estimate revisions [5] Industry Context - Ceragon operates within the Zacks Wireless Non-US industry, where another company, America Movil (AMX), saw a 1.8% increase in its stock price, contrasting with AMX's -6.5% return over the past month [5]

Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] Investment Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Stock Analysis: Ceragon Networks (CRNT) - Ceragon Networks (CRNT) has shown a four-week price change of 18.7%, indicating growing investor interest [3] - Over the past 12 weeks, CRNT's stock has gained 60.8%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - CRNT has a beta of 1.61, suggesting it moves 61% higher than the market in either direction, indicating fast-paced momentum [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [5] - CRNT has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.99, indicating it is reasonably valued at 99 cents for each dollar of sales [6] Additional Opportunities - Besides CRNT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Ceragon Networks (CRNT) - Ceragon Networks currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, CRNT shares increased by 11.4%, while the Zacks Wireless Non-US industry saw a decline of 0.28% [7] - In the last month, CRNT's price change was 76.75%, significantly outperforming the industry's 0.15% [7] - Over the past quarter, CRNT shares rose by 84.23%, and over the last year, they increased by 138.31%, compared to the S&P 500's gains of 7.86% and 30% respectively [8] Trading Volume - CRNT's average 20-day trading volume is 2,320,124 shares, which serves as a bullish indicator when combined with rising stock prices [9] Earnings Outlook - In the last two months, one earnings estimate for CRNT has increased, while none have decreased, raising the consensus estimate from $0.24 to $0.35 [11] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings momentum [11] Conclusion - Given the positive performance metrics and earnings outlook, CRNT is positioned as a promising momentum pick for investors [12]

Core Insights - Momentum investors focus on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [2] Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] - Ceragon Networks (CRNT) is highlighted as a strong candidate due to its recent price increase of 82.1% over the past four weeks, indicating growing investor interest [4] Performance Metrics - CRNT has shown a significant price gain of 57.8% over the past 12 weeks, with a beta of 1.61, suggesting it moves 61% more than the market [5] - The stock has a Momentum Score of B, indicating a favorable time to invest based on its momentum characteristics [6] Earnings and Valuation - CRNT has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.99, suggesting it is undervalued at 99 cents for each dollar of sales [7] Additional Opportunities - Besides CRNT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help investors identify potential winning stocks based on their personal investing styles [9]