Financial Performance - Ceragon's Q3 2025 revenues reached $88498 thousand[11], compared to $87260 thousand in Q3 2024[11], and $82262 thousand in Q3 2023[11] - The gross profit for Q3 2025 was $29906 thousand[11], resulting in a gross margin of 350%[11] - Non-GAAP net income for Q3 2025 was $1735 thousand[11], a decrease compared to $4964 thousand in Q3 2023[11] and $14053 thousand in Q3 2024[11] - Ceragon's Q3 2025 GAAP Net Income was $28 thousand[14] Geographic Revenue Distribution - North America accounted for 41% of revenues in Q3 2025[9], a significant increase from 24% in Q3 2024[9] - India contributed 29% to the total revenues in Q3 2025[9], a decrease from 49% in Q3 2024[9] - EMEA represented 12% of the revenues in Q3 2025[9], down from 14% in Q3 2024[9] - APAC accounted for 9% of revenues in Q3 2025[9], a slight increase from 6% in Q3 2024[9] - Latin America contributed 9% to the total revenues in Q3 2025[9], compared to 7% in Q3 2024[9] Balance Sheet and Cash Flow - Total cash and cash equivalents increased to $42987 thousand in Q3 2025[12], compared to $34014 thousand in Q3 2024[12] - Cash flow from operations was $7161 thousand in Q3 2025[12], compared to $13720 thousand in Q3 2024[12] - Capital expenditures amounted to $4114 thousand in Q3 2025[12], compared to $3148 thousand in Q3 2024[12]

Core Insights - Celestica Inc. and Flex Ltd. are prominent players in the electronics manufacturing services (EMS) industry, serving various sectors including cloud computing, automotive, healthcare, and industrials [1][3] - Both companies are strategically positioned to capitalize on the growing demand for advanced manufacturing solutions driven by technologies such as AI, IoT, and 5G [2][7] Celestica Overview - Celestica has over 25 years of manufacturing experience and focuses on cloud-optimized data storage and networking solutions, benefiting from the generative AI boom [4] - The company is experiencing growth from its 800G network switches, essential for AI applications and data center operations, contributing to solid top-line growth [5] - Despite its growth, Celestica faces challenges with high research and development costs leading to margin contraction and stiff competition from major players like Foxconn and Jabil [6] Flex Overview - Flex operates in 30 countries and is well-positioned to meet the demands of emerging technologies, including IoT and autonomous vehicles [7] - The company reported a 50% growth in its cloud and data center power business in fiscal 2025, with expectations for continued strength into fiscal 2026 [8][9] - Flex's shares trade at a lower forward P/E ratio of 14.49 compared to Celestica's 22.72, making it more attractive from a valuation perspective [14] Financial Performance - Celestica's 2025 sales and EPS are expected to grow by 13.1% and 30.1%, respectively, with positive trends in EPS estimates over the past 60 days [11] - Flex's 2025 sales are projected to rise by 0.4% and EPS by 9.4%, with recent upward revisions in EPS estimates [12] - Over the past year, Celestica's stock has gained 119.8%, outperforming the industry growth of 51.7%, while Flex's stock has increased by 36.6% [13] Investment Considerations - Celestica shows strong revenue and EPS growth, while Flex's valuation metrics appear more attractive, leading to a Zacks Rank of 2 (Buy) for Flex compared to Celestica's 3 (Hold) [15][16] - Both companies anticipate improvements in sales and profits for 2025, but Flex is currently viewed as the better investment option based on Zacks Rank [16]