Ceragon Networks(CRNT)2025-02-11 19:00Financial 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 90.4 million in Q4 2023, with a non-GAAP operating income of 7.8 million in Q4 2023 [29][33] - Full year revenues reached 347.2 million in 2023, with net income of 0.41 per diluted share compared to 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 13.4 million, reflecting lower bookings in Q3 but an expected sequential growth in Q1 2025 [21] - India achieved record revenue 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 430 million, with non-GAAP operating margins of at least 10% [39] Other Important Information - The company reported a cash position of 28.2 million at the end of 2023, and a net positive cash position of 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]