ROSH HA'AIN, Israel, Oct. 22, 2024 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), the global innovator and leading solutions provider of 5G wireless transport, today announced that it will release its earnings results for the third quarter ended September 30, 2024 on Wednesday, November 13, 2024, before the market opens.The Company will host a Zoom conference call on the same day at 8:30 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. Investors are invited to ...

Core Insights - Zacks emphasizes a ranking system focused on earnings estimates and revisions to identify winning stocks while also considering trends in value, growth, and momentum [1][2] Value Investing - Value investing is a popular strategy for identifying undervalued stocks that have potential for profit [2] - Zacks has developed a Style Scores system to highlight stocks with specific traits, particularly for value investors seeking high grades in the "Value" category [3] Ceragon Networks (CRNT) - Ceragon Networks is currently rated with a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential [4] - The stock has a Forward P/E ratio of 10.22, which is slightly below the industry average of 10.26, with a historical range between 8.92 and 20.24 over the past 52 weeks [4] - The P/S ratio for CRNT is 0.63, significantly lower than the industry average of 1.38, suggesting it may be undervalued [5] - Overall, the combination of these metrics indicates that CRNT is likely undervalued and presents an impressive value opportunity at this time [6]

Group 1: Momentum Investing Overview - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach [1] - Fast-moving trending stocks can be difficult to enter at the right time, and traditional momentum parameters may not always be reliable [2] Group 2: Investment Strategy - A safer investment strategy involves targeting bargain stocks that exhibit recent price momentum [3] - Ceragon Networks (CRNT) is highlighted as a strong candidate due to its recent price momentum, with a four-week price change of 10.8% [4] - CRNT has shown a 16% price increase over the past 12 weeks, indicating sustained momentum [5] Group 3: Performance Metrics - CRNT has a Momentum Score of A, suggesting a favorable entry point for investors [6] - The stock has a Zacks Rank 2 (Buy) due to positive earnings estimate revisions, which typically attract more investor interest [7] - CRNT is trading at a Price-to-Sales ratio of 0.69, indicating it is undervalued at 69 cents for each dollar of sales [7] Group 4: 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] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

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][5] - The company serves a diverse range of customers, including service providers, utilities, public safety organizations, government agencies, and energy companies, with solutions deployed in over 130 countries [4] Recent Developments - Ceragon's CEO, Doron Arazi, will participate in the Lake Street Capital Markets 8th Annual Best Ideas Growth "Big8" Conference in New York City, engaging in one-on-one meetings with institutional investors to discuss the company's growth strategy and operational leverage [1][2] Product and Service Offerings - Ceragon provides innovative, high-capacity wireless solutions that are reliable and quick to deploy, aimed at modernizing communication networks while minimizing total cost of ownership (TCO) through efficient use of resources [5] - The company's solutions are designed to support 5G and 4G broadband wireless connectivity, as well as mission-critical services, enhancing operational efficiency and user experience [4][5]

[Interim Condensed Consolidated Balance Sheets](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) [Balance Sheet Overview](index=2&type=section&id=Balance%20Sheet%20Overview) The company's total assets slightly increased to $299,035 thousand at June 30, 2024, from $298,525 thousand at December 31, 2023, primarily driven by an increase in non-current assets, while current assets saw a minor decrease, and shareholders' equity also increased, reflecting improved financial position | Metric | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :-------------------------- | :-------------------------- | :------------------------------ | | Total Assets | 299,035 | 298,525 | | Total Current Assets | 216,289 | 217,940 | | Total Non-Current Assets | 82,746 | 80,585 | | Total Current Liabilities | 127,323 | 132,953 | | Total Long-Term Liabilities | 28,211 | 31,553 | | Total Shareholders' Equity | 143,501 | 134,019 | [Interim Condensed Consolidated Statements of Operations](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Operations) [Operations Performance](index=4&type=section&id=Operations%20Performance) For the six months ended June 30, 2024, the company reported a significant increase in net income to $8,236 thousand, more than double the $4,056 thousand from the prior year period, supported by higher revenues and gross profit, leading to a substantial rise in operating income, despite increased operating expenses including restructuring and acquisition-related charges | Metric | Six months ended June 30, 2024 ($ thousands) | Six months ended June 30, 2023 ($ thousands) | | :--------------------------- | :------------------------------------------- | :------------------------------------------- | | Revenues | 184,586 | 169,560 | | Gross Profit | 65,529 | 58,532 | | Operating Income | 14,577 | 10,369 | | Net Income | 8,236 | 4,056 | | Basic Net Income Per Share | 0.10 | 0.05 | | Diluted Net Income Per Share | 0.09 | 0.05 | [Interim Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) [Comprehensive Income Analysis](index=5&type=section&id=Comprehensive%20Income%20Analysis) Total comprehensive income for the six months ended June 30, 2024, increased to $6,470 thousand from $4,592 thousand in the prior year, primarily driven by the higher net income, although partially offset by negative foreign currency translation adjustments and increased net unrealized losses from cash flow hedges | Metric | Six months ended June 30, 2024 ($ thousands) | Six months ended June 30, 2023 ($ thousands) | | :------------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Net Income | 8,236 | 4,056 | | Change in foreign currency translation adjustment | (933) | 908 | | Net change in cash flow hedges | (833) | (372) | | Total of Comprehensive Income | 6,470 | 4,592 | [Interim Condensed Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) [Shareholders' Equity Changes](index=6&type=section&id=Shareholders%27%20Equity%20Changes) Shareholders' equity increased from $134,019 thousand at January 1, 2024, to $143,501 thousand at June 30, 2024, primarily attributable to net income of $8,236 thousand and share-based compensation of $2,470 thousand, partially offset by an accumulated other comprehensive loss of $(1,766) thousand | Metric | Six months ended June 30, 2024 ($ thousands) | | :---------------------------------------- | :------------------------------------------- | | Balance as of January 1, 2024 | 134,019 | | Net Income | 8,236 | | Share-based compensation | 2,470 | | Other comprehensive loss, net | (1,766) | | Balance as of June 30, 2024 (Unaudited) | 143,501 | [Interim Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) [Cash Flow Performance](index=7&type=section&id=Cash%20Flow%20Performance) Net cash provided by operating activities significantly increased to $11,349 thousand for the six months ended June 30, 2024, up from $6,690 thousand in the prior year, driven by higher net income and a decrease in inventories, while cash used in investing activities increased, and financing activities shifted from providing cash to using cash, resulting in a net decrease in cash and cash equivalents | Metric | Six months ended June 30, 2024 ($ thousands) | Six months ended June 30, 2023 ($ thousands) | | :---------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net Cash Provided by Operating Activities | 11,349 | 6,690 | | Net Cash Used in Investing Activities | (8,944) | (7,309) | | Net Cash Provided by (Used in) Financing Activities | (3,608) | 2,080 | | Increase (Decrease) in Cash and Cash Equivalents | (1,934) | 1,581 | | Cash and Cash Equivalents at End of Period | 26,303 | 24,529 | [Notes to Interim Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1: GENERAL](index=8&type=section&id=NOTE%201%3A%20GENERAL) Ceragon Networks Ltd. is a global provider of end-to-end wireless connectivity solutions, including AI-powered services, and completed the acquisition of Siklu Communication Ltd. in December 2023, expanding its multi-Gigabit wireless fiber connectivity offerings, which resulted in a $196 thousand adjustment to financial expenses related to holdback consideration - Ceragon Networks Ltd. is a global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in transport, access, and **AI-powered managed & professional services**[16](index=16&type=chunk) - The Company completed the acquisition of Siklu Communication Ltd. on December 4, 2023, a provider of **multi-Gigabit 'wireless fiber' connectivity**[18](index=18&type=chunk) - An adjustment of **$196 thousand** to the fair value of Holdback Consideration related to the Siklu acquisition was recorded in financial expenses and others, net, during the six months ended June 30, 2024[18](index=18&type=chunk) [NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=NOTE%202%3A%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) The interim financial statements are prepared under U.S. GAAP, relying on management estimates, with no significant changes to accounting policies occurring in the first half of 2024, and the company is evaluating the impact of new accounting standards (ASU 2023-07 and ASU 2023-09) on future disclosures, while cost reduction and reorganization plans were approved in 2023 and 2024, leading to restructuring charges, with no additional costs expected - The unaudited interim consolidated financial statements are prepared in accordance with **U.S. GAAP** and **SEC rules** for interim financial reporting[18](index=18&type=chunk) - Management makes estimates, judgments, and assumptions, including those related to fair value of acquired intangible assets and goodwill, tax assets and liabilities, share-based awards, inventory write-offs, warranty provision, and allowance for credit loss[19](index=19&type=chunk) - No significant changes to accounting policies occurred during the six months ended June 30, 2024[20](index=20&type=chunk) - The company is evaluating the impact of **ASU 2023-07 (Segment Reporting)** and **ASU 2023-09 (Income Taxes)** on its financial statement disclosures, with effective dates in 2024 and 2025 respectively[20](index=20&type=chunk)[21](index=21&type=chunk) - Cost reduction and re-organization plans were approved in 2023 and 2024, involving employee downsizing, with related liabilities amounting to **$763 thousand** at June 30, 2024, and no additional costs expected[22](index=22&type=chunk) [NOTE 3: CREDIT LOSSES](index=10&type=section&id=NOTE%203%3A%20CREDIT%20LOSSES) The allowance for credit losses decreased to $20,427 thousand at June 30, 2024, from $24,602 thousand at December 31, 2023, primarily due to $4,503 thousand in recoveries collected, net of write-offs, which included a $4 million installment received from a South American customer as part of a $12 million settlement agreement | Metric | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :-------------------------------------- | :-------------------------- | :------------------------------ | | Balance, at beginning of period | 24,602 | 22,410 | | Provision for expected credit losses | 328 | 3,898 | | Recoveries collected, net of write-offs | (4,503) | (1,965) | | Balance, at end of period | 20,427 | 24,602 | - The Company expects to receive a total of **$12 million** in three equal installments from a South American customer, with the first **$4 million** received in Q2 2024 and the second **$4 million** received in early Q3 2024[25](index=25&type=chunk) [NOTE 4: INVENTORIES](index=10&type=section&id=NOTE%204%3A%20INVENTORIES) Total inventories decreased to $59,490 thousand at June 30, 2024, from $68,811 thousand at December 31, 2023, with the company recording $2,311 thousand in inventory write-offs for excess and slow-moving inventory during the six months ended June 30, 2024, and outstanding inventory purchase orders amounting to $39,527 thousand, primarily due within one year | Metric | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :------------------- | :-------------------------- | :------------------------------ | | Raw materials | 27,385 | 33,790 | | Work in progress | 475 | 486 | | Finished products | 31,630 | 34,535 | | Total Inventories | 59,490 | 68,811 | - Inventory write-offs for excess and slow-moving inventory totaled **$2,311 thousand** for the six months ended June 30, 2024, compared to $3,528 thousand in the prior year[26](index=26&type=chunk) - Outstanding inventory purchase orders with suppliers amounted to **$39,527 thousand** as of June 30, 2024, primarily due within one year[27](index=27&type=chunk) [NOTE 5: FAIR VALUE MEASUREMENT](index=11&type=section&id=NOTE%205%3A%20FAIR%20VALUE%20MEASUREMENT) The fair value of derivative instruments, measured at Level 2, significantly decreased to $87 thousand at June 30, 2024, from $920 thousand at December 31, 2023, while other financial instruments carried at cost approximate their fair value due to their short-term maturities | Metric | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :------------------------ | :-------------------------- | :------------------------------ | | Derivatives instruments | 87 | 920 | | Total assets, net | 87 | 920 | [NOTE 6: DERIVATIVE INSTRUMENTS](index=11&type=section&id=NOTE%206%3A%20DERIVATIVE%20INSTRUMENTS) The company utilizes foreign currency forward and option contracts to hedge against exchange rate fluctuations, with the fair value of these designated hedging instruments decreasing from $920 thousand at December 31, 2023, to $87 thousand at June 30, 2024, and the notional amount of outstanding derivative contracts increasing to $21,751 thousand, resulting in a net effect of cash flow hedges on the statements of operations for the six months ended June 30, 2024, of a loss of $(139) thousand | Metric | June 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :-------------------------------------- | :-------------------------- | :------------------------------ | | Fair value of Currency forward contracts (designated as hedging instruments) | 87 | 920 | - The notional amounts of outstanding derivative contracts increased to **$21,751 thousand** at June 30, 2024, from $19,482 thousand at December 31, 2023[32](index=32&type=chunk)[34](index=34&type=chunk) | Effect on Statements of Operations (6 months ended June 30, 2024) | Amount ($ thousands) | | :------------------------------------------------ | :------------------- | | Cost of revenues | (32) | | Research and development, net | (62) | | Sales and marketing | (17) | | General and administrative | (28) | | Financial expenses | - | | **Total Effect** | **(139)** | [NOTE 7: COMMITMENTS AND CONTINGENT LIABILITIES](index=13&type=section&id=NOTE%207%3A%20COMMITMENTS%20AND%20CONTINGENT%20LIABILITIES) The company has commitments related to Israel Innovation Authority (IIA) grants, including assumed royalties from the Siklu Acquisition with a maximum future commitment of $10,573 thousand, while bank guarantees decreased to $20,864 thousand, and the company is involved in two significant legal proceedings: a class action lawsuit alleging misleading statements, now under U.S. law with an estimated claim of $45,430 thousand, and a lease agreement dispute, both in preliminary stages with unestimable losses - The Company received IIA grants of **$765 thousand** for the six months ended June 30, 2024, recorded as a reduction of research and development expenses[35](index=35&type=chunk) - The maximum possible future royalties commitment related to Siklu's IIA grants, including **$3,035 thousand** of unpaid accrued royalties, was **$10,573 thousand** as of June 30, 2024[37](index=37&type=chunk) - Bank guarantees provided decreased to **$20,864 thousand** at June 30, 2024, from $26,686 thousand at December 31, 2023[37](index=37&type=chunk) - A class action lawsuit, initially claiming **$78,768 thousand**, was amended to **$45,430 thousand** and is now being adjudicated under U.S. law. Mediation attempts are ongoing, but the amount of loss cannot be reasonably estimated due to the preliminary stage[38](index=38&type=chunk)[42](index=42&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - A dispute with Station Enterprises Ltd. regarding a lease agreement involves claims of breach of contract, set-off of rent, and exercised bank guarantees. The company filed a claim for a declarative order, reimbursement, and damages of **NIS 1.2 million**, while Station Enterprises Ltd. filed for eviction. Mediation has been unsuccessful, and the loss cannot be reasonably estimated[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [NOTE 8: SHAREHOLDERS' EQUITY](index=17&type=section&id=NOTE%208%3A%20SHAREHOLDERS%27%20EQUITY) The company's ordinary shares grant voting and distribution rights, with the existing share option and RSU plan extended and a new 2024 Equity Incentive Plan adopted, making 1,631,599 ordinary shares available for future grants, while total share-based compensation expense for the six months ended June 30, 2024, increased to $2,470 thousand from $1,977 thousand in the prior year, with $3,564 thousand in unrecognized compensation cost remaining - Ordinary shares entitle holders to receive notice, participate and vote in general meetings, and share in distributions upon liquidation and dividends[55](index=55&type=chunk) - The Amended and Restated Share Option and RSU Plan was extended to **December 31, 2024**, and a new **2024 Equity Incentive Plan** was adopted[55](index=55&type=chunk) - As of June 30, 2024, **1,631,599 ordinary shares** were available for future grants under the plans[57](index=57&type=chunk) | Metric | Six months ended June 30, 2024 | | :-------------------------------------- | :----------------------------- | | Stock options outstanding | 5,216,439 | | Weighted average exercise price | $2.68 | | RSUs unvested | 2,772,101 | | Weighted average fair value of unvested RSUs | $2.47 | - Total unrecognized estimated compensation cost related to non-vested stock options and RSUs was **$3,564 thousand** as of June 30, 2024, expected to be recognized over approximately one year[58](index=58&type=chunk) | Share-based Compensation Expense | Six months ended June 30, 2024 ($ thousands) | Six months ended June 30, 2023 ($ thousands) | | :------------------------------- | :------------------------------------------- | :------------------------------------------- | | Cost of revenues | 265 | 226 | | Research and development | 336 | 477 | | Sales and Marketing | 683 | 738 | | General and administrative | 1,186 | 536 | | **Total** | **2,470** | **1,977** | [NOTE 9: REVENUES](index=19&type=section&id=NOTE%209%3A%20REVENUES) Deferred revenues decreased to $3,231 thousand at June 30, 2024, from $6,177 thousand at the beginning of the period, primarily due to the reclassification of $4,666 thousand to revenue as performance obligations were satisfied, with remaining performance obligations expected to be recognized in 2026 and thereafter amounting to $670 thousand | Metric | Six months ended June 30, 2024 ($ thousands) | | :------------------------------------------------------------------ | :------------------------------------------- | | Balance, beginning of the period | 6,177 | | New unsatisfied performance obligations | 1,720 | | Reclassification to revenue as a result of satisfying performance obligations | (4,666) | | Balance, end of the period | 3,231 | | Less: long-term portion of deferred revenue | 670 | | Current portion, end of period | 2,561 | - Remaining performance obligations expected to be satisfied and recognized in 2026 and thereafter amount to **$670 thousand**[61](index=61&type=chunk) [NOTE 10: CUSTOMERS AND GEOGRAPHIC INFORMATION](index=20&type=section&id=NOTE%2010%3A%20CUSTOMERS%20AND%20GEOGRAPHIC%20INFORMATION) Total revenues for the six months ended June 30, 2024, increased to $184,586 thousand from $169,560 thousand in the prior year, with India showing the highest growth, as revenues increased from $46,933 thousand to $61,566 thousand, while North America also saw an increase, and Asia-Pacific and Latin America experienced decreases | Region | Six months ended June 30, 2024 ($ thousands) | Six months ended June 30, 2023 ($ thousands) | | :-------------- | :------------------------------------------- | :------------------------------------------- | | North America | 52,180 | 48,572 | | EMEA | 33,913 | 31,944 | | Asia-Pacific | 16,978 | 19,575 | | India | 61,566 | 46,933 | | Latin America | 19,949 | 22,536 | | **Total** | **184,586** | **169,560** | - Revenues in North America primarily represent sales in the United States, accounting for **98% in 2024** and **93% in 2023**[66](index=66&type=chunk) [NOTE 11: EARNINGS PER SHARE](index=20&type=section&id=NOTE%2011%3A%20EARNINGS%20PER%20SHARE) Basic net income per share increased to $0.10 for the six months ended June 30, 2024, from $0.05 in the prior year, and diluted net income per share increased to $0.09 from $0.05, with the weighted average number of shares used in computing diluted EPS increasing, while the number of anti-dilutive options and RSUs significantly decreased | Metric | Six months ended June 30, 2024 ($ thousands) | Six months ended June 30, 2023 ($ thousands) | | :------------------------------------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Net income available to holders of ordinary shares (Numerator) | 8,236 | 4,056 | | Metric | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :------------------------------------------------------------------ | :----------------------------- | :----------------------------- | | Weighted average number of shares for basic EPS | 85,632,241 | 84,359,762 | | Weighted average number of shares for diluted EPS (adjusted) | 87,753,163 | 85,152,634 | - The total weighted average number of shares related to anti-dilutive options and RSUs excluded from diluted net earnings per share significantly decreased to **1,928,259** for the six months ended June 30, 2024, from 5,132,809 in the prior year[66](index=66&type=chunk)

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Financial Data and Key Metrics - Revenue for Q2 2024 was $96.1 million, up 11.5% from $86.2 million in Q2 2023 [15] - Non-GAAP gross profit was $33.8 million, an increase of 11.1% compared to $30.4 million in Q2 2023 [16] - Non-GAAP gross margin was 35.2%, slightly down from 35.3% in Q2 2023 [16] - Non-GAAP operating income was $13.1 million, compared to $7.4 million in Q2 2023, representing 13.7% of revenue [19] - Non-GAAP net income was $9.9 million or $0.11 per diluted share, compared to $4.4 million or $0.05 per diluted share in Q2 2023 [19] - Cash position at the end of Q2 2024 was $26.3 million, down from $28.2 million at the end of 2023 [20] Business Line Data and Key Metrics - Private network bookings in the first half of 2024 were up more than 35% compared to the previous year [6] - New private network customers accounted for over 50% of overall new customers in terms of both accounts and dollars [6] - Smart Activation Key software adoption has been significant, with tens of thousands of licenses secured in the first half of 2024 [9] - The IP-50EX, an ultra-compact e-band radio, continues to gain customer interest [9] Market Data and Key Metrics - North America revenue was $23 million, with strong private network bookings and nine new customers added [10] - India revenue was $36 million, driven by 4G expansion in rural areas and 5G upgrades [12] - EMEA revenue was $19 million, with one customer contributing over 10% of total revenue [15] - Latin America and APAC regions also saw significant growth in private network business [13] Company Strategy and Industry Competition - The company is diversifying its business by increasing market share in private networks and moving up the value chain from equipment provider to network operation optimization [5] - The integration of the Siklu acquisition is progressing as planned, enhancing competitive positioning with ISP and private network customers [6] - The company is focusing on reducing dependency on 5G-related spending by increasing market share in private networks and capitalizing on 4G upgrades [8] - The company is competing against Chinese vendors in regions like Latin America and APAC, with encouraging results [13] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy, citing strong demand across global markets and progress in private network initiatives [8] - The backlog in North America and India provides confidence in continued growth momentum into the second half of 2024 [8] - The company expects full-year 2024 revenue of $385 million to $405 million, representing growth of 11% to 17% compared to 2023 [21] - Non-GAAP operating margins are targeted to be at least 10% at the midpoint of the revenue guidance [21] Other Important Information - The company collected $8 million out of a $12 million debt settlement agreement, with the second installment of $4 million expected to be reflected in Q3 results [18] - Inventory levels decreased to $59.5 million at the end of Q2 2024, down from $68.8 million at the end of 2023 [20] - DSO (Days Sales Outstanding) stood at 114 days, with trade receivables at $112.9 million [21] Q&A Session Summary Question: Competitive Landscape and MaxLinear Chip - The company has not seen any significant implementation of new chips from competitors like MaxLinear in the field [22][23] Question: Exposure to Eastern Europe and Japan - The company has minimal exposure to Eastern Europe and Japan, with business in these regions being insignificant [24][25] Question: Pipeline and Deal Closure Rates - The company is seeing benefits from its focus on private networks, which is helping to offset slowdowns in Tier 1 operators in certain regions [26][27] Question: Private Network Growth and Resource Allocation - The company plans to adjust investments in sales and marketing to leverage momentum in private networks while maintaining operating margins [30] Question: Private Networks in Europe - Despite geopolitical uncertainties, the company sees increasing opportunities for private networks in Europe [32] Question: Neptune Chip Update - The Neptune chip is nearing the end of post-silicon validation, with the first product based on the chip expected to be commercially deployed in 2025 [35][45] Question: Software and Managed Services Revenue - The company sees significant potential in software and managed services, particularly with smaller players and private networks, but adoption by Tier 1 operators will take time [36][37] Question: Huawei Rip and Replace Opportunities - The company is engaging with new prospects in Europe due to bans on Chinese vendors, though deployment in Europe is slower compared to other regions [38] Question: Tier 1 Operators in the U.S. - The company serves one Tier 1 operator in the U.S. with meaningful business, while engagement with others is limited due to their extensive fiber networks [39] Question: Acquisition Strategy - The company continues to pursue small M&A opportunities to augment its organic growth strategy [40] Question: G&A Gain and Non-GAAP Reporting - The $4 million gain from debt collection is included in non-GAAP results due to accounting consistency, but management suggests using $0.07 per share as a baseline for normal operations [41][42][43] Question: Competitive Chipsets - The company is not aware of any next-generation chips from competitors other than MaxLinear and believes it has a 2-3 year advantage with its Neptune chip [44] Question: Neptune Chip Commercialization - The company expects a gradual ramp-up of Neptune-based products in 2025, with more significant revenue impact in 2026 and 2027 [46][47]

Significant Penetration into Private Networks Q2 2024 India 37 % North America 24 % EMEA 20 % Latin America 10 % APAC 9 % Management Reiterates Full-Year 2024 Outlook ROSH HA'AIN, Israel, Aug. 7, 2024 /PRNewswire/ -- Ceragon (NASDAQ: CRNT), the leading solutions provider of end-to-end wireless connectivity, today reported its financial results for the second quarter period ended June 30, 2024. Q2 2024 Financial Highlights: Revenues of $96.1 million Operating income of $10.4 million on a GAAP basis, or $13.1 ...

Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more, who rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries. The Company will host ...

Ceragon's Smart Activation Key has already seen meaningful adoption, with tens of thousands of licenses ordered, and deployment underway, to several customers within the first half of the fiscal year. Notably, a portion of these licenses were already sold under the recurring revenue model, indicating customer support and demand for ongoing, subscription-based solutions. About Ceragon financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Ex ...