Ceragon Networks(US:CRNT)2022-02-07 18:32Financial Data and Key Metrics Changes - The company reported Q4 2021 revenue of $77.8 million, a 5.1% increase from $74 million in Q4 2020, with full-year revenue reaching $291 million, up nearly 11% from 2020 [31][32] - Gross margin for Q4 was 29%, unchanged from Q4 2020, while the full-year gross margin improved to 30.3% from 28.7% in 2020 [33] - The net loss on a GAAP basis for Q4 was $2 million, or $0.02 per diluted share, primarily due to a write-off of a tax asset of $8.5 million [38][36] Business Line Data and Key Metrics Changes - The majority of business in 2021 came from 4G, but 5G bookings accounted for over one-third of all bookings in North America, Europe, and parts of APAC [12][22] - New products like the IP-50E and IP-50C have seen significant sales, contributing to the company's growth in the 5G segment [13][18] Market Data and Key Metrics Changes - North America had a record year in 2021, with 5G design win customers generating over 50% of bookings in the region [23][27] - India experienced strong demand for network upgrades, surpassing previous records since 2018, while Europe also had a strong year with significant bookings [25][26] Company Strategy and Development Direction - The company aims to expand its traditional business while increasing its focus on managed services and new markets, including cell site routing [22][21] - The strategy includes leveraging technological capabilities to provide a one-stop-shop solution for customers, particularly in underserved markets [20][65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, expecting revenue between $305 million and $320 million, contingent on improvements in supply chain conditions [40][22] - The company anticipates that supply chain issues will ease in the second half of 2022, allowing for smoother operations [46][49] Other Important Information - The company has a presence in over 140 countries and has served more than 2000 customers, indicating a strong global footprint [20] - The IP-50FX product has been awarded the Telecom Infra Project Requirements Compliant Ribbon, highlighting its technological leadership [17] Q&A Session Summary Question: Can you provide more granularity on the backlog? - Management indicated that the backlog has increased compared to the beginning of the year, providing confidence for 2022 [43] Question: What is the outlook for the first quarter? - Management noted that supply constraints are expected to impact the first half of the year, with better growth anticipated in the second half [44][46] Question: Are you seeing success in raising prices to offset margin pressures? - Management confirmed that they have successfully increased prices for some customers, which will contribute positively to gross margins [59] Question: How quickly will managed services become a meaningful part of revenue? - Management expects a gradual ramp-up in managed services revenue, with significant contributions more likely in 2023 and beyond [57] Question: What is the status of the IP-100 product? - Management stated that the product is on track for development, with expectations to have it ready by the end of 2022 [50] Question: Can you elaborate on the restructuring in North America? - The company is shifting focus to Tier 3 and Tier 4 ISPs and private networks, aiming to provide comprehensive network solutions [64][65]