Ceragon Networks(US:CRNT)2026-02-17 14:32Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $82.3 million, down 23% from $106.9 million in Q4 2024 [9] - Non-GAAP EPS for Q4 was $0.02, compared to $0.09 in Q4 2024 [12] - Full year revenue was $338.7 million, a decline of 14.1% from $394.2 million in 2024 [13] - Non-GAAP operating income for 2025 was $18 million, compared to $48.8 million in 2024 [14] - Net income for 2025 was $8.2 million, or $0.09 per diluted share, down from $36.4 million, or $0.41 per diluted share in 2024 [15] - Cash position at the end of 2025 was $38.4 million, up from $35.3 million at the end of 2024 [15] Business Line Data and Key Metrics Changes - Strongest regions in Q4 2025 were North America and India, generating $32.3 million and $24.7 million, respectively [9] - Non-GAAP gross margin for Q4 was 34.3%, unchanged from Q4 2024 [10] - R&D expenses for Q4 were $7.7 million, down from $8.8 million in Q4 2024 [10] - Sales and marketing expenses for Q4 were $11.4 million, up from $10.6 million in Q4 2024 [11] Market Data and Key Metrics Changes - The company expects 2026 revenue to be between $355 million and $385 million, based on backlog advancement in North America and a baseline of $100 million in annualized revenue from India [17] - The company is seeing strong demand in private networks, particularly in APAC, with a recent multi-million-dollar order from an electricity transmission utility [7] Company Strategy and Development Direction - The company plans to launch four new products in 2026, with some expected to generate initial revenue this year [5] - Focus remains on execution, differentiation, and conversion, with an emphasis on customer demand and revenue potential [6] - The company aims to improve profitability and cash generation while maintaining a disciplined approach to capital allocation [18] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the outlook for 2026, with early activity in the year supporting this confidence [5] - The company is monitoring foreign exchange fluctuations and has a hedging policy in place [26] - Management believes that the second half of 2026 will be stronger than the first half, despite typical seasonality [27] Other Important Information - The company ended 2025 with a net cash position of $19.4 million, up from $10.1 million at the end of 2024 [15] - Inventory at the end of 2025 was $61.6 million, slightly up from $59.7 million at the end of 2024 [16] Q&A Session Summary Question: What would be needed to hit the high end of your 2026 guidance? - Management indicated that a combination of stronger performance in North America and India could help reach the high end of the guidance [20][21] Question: Can you talk about dollar to shekel issues and how you are handling that? - Management stated they are monitoring foreign exchange and have a hedging policy in place [26] Question: How do you see the balance of the first half versus the second half of 2026? - Management expects the second half to be stronger than the first half, with some delays in orders impacting Q1 [27] Question: Can you comment on the level of activity in the Asia-Pacific region for private networks? - Management noted multiple opportunities in APAC, particularly in mining and energy sectors [30] Question: Can you expand on your major Tier 1 customer in North America? - Management sees continued investment from this customer and opportunities for new use cases [38] Question: How are you addressing the rising costs of memory? - Management is focusing on building second and third sources for memory and making product adjustments to mitigate costs [42]