Ceragon Networks Q1 2025 Earnings Report

Ceragon Networks EPS Results

• Actual EPS: $0.02
• Consensus EPS: $0.02
• Beat/Miss: Met Expectations
• One Year Ago EPS: N/A

Ceragon Networks Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $87.01 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Ceragon Networks Announcement Details

• Quarter: Q1 2025
• Date: 5/7/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 7, 2025
• Conference Call Time: 8:30AM ET

Ceragon Networks (NASDAQ:CRNT) is a global provider of wireless backhaul solutions, specializing in high-capacity, low-latency connectivity for mobile operators and private networks. The company designs and manufactures a portfolio of microwave and millimeter-wave equipment that serves as a fiber alternative for carrying voice, data and video traffic between cell sites and core networks. Ceragon’s solutions are engineered to support the rigorous performance requirements of modern 4G and 5G deployments, with an emphasis on scalability, reliability and efficient spectrum utilization.

The company’s product lineup includes point-to-point and multi-point radio platforms, as well as software-driven network management tools that enable operators to plan, deploy and monitor end-to-end transport networks. Ceragon also offers professional services such as network optimization, integration and ongoing technical support. These offerings are designed to help communications service providers, enterprises and government agencies accelerate the rollout of broadband services and ensure quality of service in challenging environments.

Founded in 1996 and headquartered in Tel Aviv, Israel, Ceragon Networks has built a presence in more than 130 countries across the Americas, Europe, Asia-Pacific, the Middle East and Africa. Its customer base spans tier-one mobile operators, fixed-line carriers and private network operators in industries such as public safety, transportation and energy. The company continues to invest in research and development to advance its portfolio of wireless transport solutions and address the growing demands of next-generation networks.

Ceragon Networks Q1 2025 Earnings Call Transcript

Key Takeaways

• Ceragon reported its highest booking levels since Q1 2024, with rebounds in India and EMEA and solid growth in North America, and reiterated its full-year 2025 revenue guidance.
• The acquisition of E2E Technologies closed in February, bolstering Ceragon’s private network expertise and is expected to be accretive to non-GAAP earnings by H2 2025.
• India revenue surged 65% year-over-year to $42.9 million, driven by broad-based demand beyond a single $150 million project, and the upcoming E-band fixed wireless product is set to boost H2 delivery volumes.
• Non-GAAP gross profit fell 8.6% to $29.7 million with margins down to 33.5% (from 36.7%), and non-GAAP net income declined to $2.6 million ($0.03 per share) versus $4.7 million ($0.05).
• Although proposed tariffs are creating some instability in North American private networks, management expects the net impact to be minimal and is leveraging its flexible supply chain to mitigate risks.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by, and welcome to Ceragon Networks Earnings Call.

[Operator]

Our presentation today will be followed by a question and answer session. At which time, if you wish to ask a question, you will need to raise your hand using your mobile or desktop application or press asterisk on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded today. I would like to now hand this call over to our first speaker, Rob Fink, Head of Investor Relations. Please go ahead.

[Rob Fink, Managing Partner at FNK IR]

Thank you, operator, and good morning, everyone. Hosting today's call is Doron Orazi, Ceragon's Chief Executive Officer and Ronen Stein, Chief Financial Officer. Before we start, I would like to remind everyone that certain statements made on this call may constitute forward looking statements within the meaning of the Securities Act of 1933, Securities Act of 1934 as well as the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Ceragon intends forward looking terminology such as may, plans, anticipates, believes, estimates, targets, expects, intends, potential or other comparable terminology, although not all forward looking statements contain these identifying words. Such statements reflect current expectations and assumptions of Ceragon's management.

[Rob Fink, Managing Partner at FNK IR]

Actual results may differ materially as they are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in our forward looking statements. These risks are detailed in Ceragon's most recent annual report on Form 20 F as published on 03/25/2025 as well as in other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission. Forward looking statements relate to the date initially made and they are not predictions of future events or results and there can be no assurance that they will prove to be accurate and Saragon undertakes no obligation to update them. Saragon's public filings are available on the Securities and Exchange Commission's website at sec.gov and may be also obtained from Saragon's website at saragon.com. Also, today's call will include certain non GAAP numbers.

[Rob Fink, Managing Partner at FNK IR]

For a reconciliation between GAAP and non GAAP results, please see the table attached to the press release that was issued earlier this morning, which is posted on the Investor Relations section of Ceragon's website. With all that said, I will now turn the call over to Doron. Doron, the call is yours.

[Doron Arazi, CEO at Ceragon Networks]

Thank you, Rob, and good morning, everyone. Ceragon delivered a strong financial performance in the first quarter, highlighted by the highest booking levels since Q1 twenty twenty four. Bookings rebounded across India and EMEA, while growth in North America remained solid. We are reiterating our outlook for full year 2025 and have been encouraged by multiple positive demand signals we observed during the quarter and specifically at Mobile World Congress in Barcelona in early March. Our conversations with senior decision makers from both existing and prospective customers further validated that Ceragon is strategically aligned for long term success in the evolving wireless connectivity landscape.

[Doron Arazi, CEO at Ceragon Networks]

Notably, we had direct discussions with senior executives from major customers in India and other regions. These conversations along with other market insights support our belief that our current offerings are exceedingly well aligned with customers' needs. Additionally, we heard compelling feedback that supports strong anticipated demand for microwave and millimeter wave products, including first fixed wireless point to point, point to multipoint solutions for Tier one operators in North America and Europe. We are discussing with at least one Tier one operator the possible development of a new solution tailored to their needs that has substantial commercial potential. Another trend that was evident at the Mobile World Congress was the deep interest from CSPs and private networks in our software driven services and solutions to support network operation and optimization.

[Doron Arazi, CEO at Ceragon Networks]

As we have discussed on previous calls, managed services are an important strategic priority for Ceragon and we saw strong interest at MWC from customers who are increasingly evaluating software applications and managed services to enable faster deployment and more efficient network operation. Finally, we continue to see the emergence of new use cases for our products, both in CSP and private network segments, which have the potential to meaningfully expand our targeted addressable market and drive incremental revenue opportunities. These market dynamics are consistent with our product and service roadmap, supporting our strategy to maintain technology leadership and address the needs of both Tier one and Tier two carriers as well as private networks. As we have previously noted, the shift to software driven services and applications will also enable us to increase our annual recurring revenue and achieve higher margins relative to our traditional hardware business. In February, we successfully closed the acquisition of E2E Technologies, strengthening our expertise in private networks, particularly in the energy and utilities sector in North America.

[Doron Arazi, CEO at Ceragon Networks]

Private networks remain a fast growing segment of telecom connectivity and E2E's proven system integration capabilities and software platform are expected to strengthen our portfolio significantly. E2E's bookings in the first quarter outperformed our expectations, and revenue contribution in the first quarter was in line with our expectations. We continue to expect E2E to be accretive to non GAAP earnings by the second half of twenty twenty five. I'd now like to review our first quarter highlights by region. In India, revenue was $42,900,000 an increase of 65% year over year.

[Doron Arazi, CEO at Ceragon Networks]

Encouragingly, bookings were also the highest since Q1 twenty twenty four. Moreover, a minimal amount of these bookings was tied to the previously announced $150,000,000 project award for a major network modernization initiative of a Tier one operator, which demonstrates broad based demand throughout India. The elevated bookings and revenue in Q1 and continued strong customer demand reinforce our long term outlook in our largest market. In North America, revenue was 17,600,000.0 including contributions from E2E. Excluding the contributions from E2E, Q1 bookings and revenue were also higher than in Q4.

[Doron Arazi, CEO at Ceragon Networks]

We are improving our competitive position with existing customers and getting more traction from new prospects. The tariff dynamics are creating some instability for certain customers, primarily those in private networks. However, we're encouraged by the continued steady activity among carriers. While we're closely monitoring for any shifts in customer ordering patterns, we're also proactively positioning ourselves to navigate these changes effectively. Simultaneously, we are actively assessing the proposed tariffs, not just to mitigate potential risks, but also to identify strategic opportunities to capture market share.

[Doron Arazi, CEO at Ceragon Networks]

Our diverse manufacturing footprint and adaptable supply chain provide us with a distinct advantage in this environment, allowing us to explore alternative sourcing and pricing strategies that could offset potential impact. While it is still too early to quantify the precise effect of our profitability in 2025, we believe the net impact of tariffs will be minimal. As we remain vigilant in monitoring these developments, we are confident in our ability to adapt swiftly and leverage our strength to drive continued growth. Returning to some more general commentary. Through the acquisition of Siclou and E2E, we have significantly enhanced our capabilities in the fast growing segments of wireless connectivity, particularly millimeter wave and private network markets.

[Doron Arazi, CEO at Ceragon Networks]

We are continuously evaluating additional strategic M and A opportunities that would further complement our product and service offerings, enabling us to further expand in high growth areas for wireless connectivity. I'd now like to turn the call over to Ronen Stein, our CFO, to discuss the financial results in more details. Oren, over to you.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Thank you, Doron, and good morning, everyone. The first quarter was marked by solid execution amidst volatile market conditions. Our revenue was at the higher end of our expectations, and we maintained solid non GAAP profitability. To help you understand the results, I will be referring primarily to non GAAP financials. For more information regarding our use of non GAAP financial measures, including reconciliations of these measures, we refer investors to today's press release.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Let me now review the first quarter results. Revenue for the first quarter was $88,700,000 up 0.2% from $88,500,000 in the first quarter of twenty twenty four. India was again the strongest region in terms of revenue and contributed $42,900,000 North America rebounded from $13,400,000 in Q4 twenty twenty four to $17,600,000 in Q1 twenty twenty five and was the second strongest region. We had three customers in the first quarter that contributed at least 10% of our revenue. Gross profit in the first quarter on a non GAAP basis was $29,700,000 which was down 8.6% from $32,500,000 in Q1 twenty twenty four.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Our non GAAP gross margin was 33.5% as compared with gross margin of 36.7% in the prior year period. The decline in gross margin was mainly attributable to the change in revenue mix by region, with India increasing to 48% of revenues and North America declining to 20% of revenues. Over the longer term, our initiatives in private networks and an increase in deployments of software driven services should enable us to maintain or potentially expand gross margins, offsetting regional revenue mix headwinds. Moving on to operating expenses. Research and development expenses in Q1 twenty twenty five on a non GAAP basis were 8,100,000 down from $8,700,000 in Q1 twenty twenty four.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

As a percentage of revenue, R and D expenses on a non GAAP basis were 9.1% in the first quarter versus 9.8% in the prior year period. Sales and marketing expenses on a non GAAP basis in the first quarter were $11,800,000 up from $10,700,000 in Q1 twenty twenty four. As a percentage of revenue, sales and marketing expenses on a non GAAP basis were 13.3% in the first quarter as compared to 12.1% in the first quarter of twenty twenty four. General and administrative expenses on a non GAAP basis for the first quarter were $5,400,000 as compared to $5,500,000 in Q1 twenty twenty four. As a percentage of revenue, G and A expenses on a non GAAP basis were 6% in Q1 twenty twenty five versus 6.3% in the year ago period.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Restructuring and related charges on a GAAP basis in the first quarter were $3,700,000 as compared to $1,400,000 in the first quarter of twenty twenty four, reflecting our increased efforts to achieve optimal cost discipline. These charges are backed out of our non GAAP operating expenses. Acquisition and integration related expenses on a GAAP basis in the first quarter were $500,000 versus $500,000 in the first quarter of twenty twenty four. These charges are backed out of our non GAAP operating expenses. Operating income on a non GAAP basis for the first quarter was $4,500,000 versus operating income of $7,600,000 in Q1 twenty twenty four.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Lower gross profit was the primary factor for the decline in operating income year over year. Financial and other expenses on a non GAAP basis in the first quarter were $1,000,000 an improvement from $2,300,000 in the prior year period. The change was positively impacted from favorable exchange rate changes and lower interest expenses. Our tax expenses on a non GAAP basis for the first quarter were $900,000 Non GAAP net income for Q1 twenty twenty five was 2,600,000 or $03 per diluted share versus non GAAP net income of $4,700,000 or $05 per diluted share in Q1 twenty twenty four. Moving over to our balance sheet.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Our cash position at 03/31/2025 was $27,700,000 down from $35,300,000 at the end of twenty twenty four, primarily due to cash payments made in Q1 in connection with the acquisition of E2E amounting to $6,600,000 net of acquired cash. Short term loans were $25,200,000 at the end of the first quarter as they were at year end 2024. Thus, our net cash position was approximately $2,500,000 as opposed to $10,100,000 at 12/31/2024, again largely due to the acquisition of Itooi. We believe we have cash and facilities that are sufficient for our operations and working capital needs. Inventory at the end of the first quarter was $62,300,000 up slightly from $59,700,000 at the end of twenty twenty four as we are preparing to introduce our new E band products expected to be delivered mainly in India in the second half of the year.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Our trade receivables at the end of the first quarter were $145,700,000 versus $149,600,000 at the December 2024. Our DSO now stands at one hundred and thirty five days. Looking at our statements of cash flow. Net cash flow used by operations and investing activities in Q1 twenty twenty five was $1,600,000 excluding cash payments made in connection with the acquisition of E2E net of acquired cash. Turning to our 2025 outlook.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

As Doron mentioned earlier, we are reiterating our previous 2025 revenue guidance of $390,000,000 to $430,000,000 We also reiterate our expectations for non GAAP operating margin of at least 10% at the low end of our revenue guidance and higher positive cash flow in 2025 than in 2024. With that, I now open the call for your questions. Operator?

[Operator]

Our first question will be from Christian Schwab from Craig Hallum. Christian, please go ahead. Christian?

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Oh, I'm sorry. I was on mute. Sorry about that. Congrats on the strong start to the year to reiterate guide. I'm just wondering if you could give us some more color regarding the strength in bookings in India.

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Is that a diverse customer base? Is that concentrated in the hands one person primarily? Any additional color there would be fantastic.

[Doron Arazi, CEO at Ceragon Networks]

Yes. Hi, Christian. I would say that it's not concentrated on a single customer. Actually, it's distributed between two customers that we are seeing very strong demand. And obviously, with the third one that still has some potential booking out of the $150,000,000, if that happens down the road during 2025, this will be another boost for our business.

[Doron Arazi, CEO at Ceragon Networks]

At the same token, I can say that we're also discussing with our old customer that in the last couple of years decreased the spending in wireless technology on some new opportunities.

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Great. And and and then you mentioned that we're working on a potential significant opportunity in North America or The United States specifically. Is significant mean like $150,000,000 or does significant mean just any color about the range of potential outcomes there would be great?

[Doron Arazi, CEO at Ceragon Networks]

Look, the the opportunities we're working on could become meaningful. And by saying meaningful, I would probably talk about north of $10,000,000 on an annual basis for a few years.

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Great. And then my last question, we talked about gross margin expansion opportunities. I guess it wasn't clear to me how much gross margins potentially could expand in the future. Is there any potential color you could give us on that? And that's my last question. Thank you.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

I will take it. Good morning. First of all, part of the expansion is improved mixture. That's one potential because we have the opportunity to come back much stronger in The U. S.

[Ronen Stein, Chief Financial Officer at Ceragon Networks]

Secondly, it's the economies of scale. Obviously, when we have higher revenues, that's a good potential for increasing our gross margins. The the third thing is the more software and private network sales. The more we continue to sell to these solutions or these markets, it will also improve year, we have over year have the specifically and how much revenues from software we can have.

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Great. Thanks for taking my questions.

[Doron Arazi, CEO at Ceragon Networks]

Thanks, Christian. Thank you.

[Operator]

Our next question is from Scott Searle from ROTH Capital. Please go ahead, Scott.

[Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Good morning. Good afternoon. Thanks for taking the questions. Nice job in terms of maintaining the outlook for the remainder of this year. Maybe, Doron, just to dive in on that front, you're maintaining the guidance for this year, at the midpoint, it implies a pretty significant uptick over the next couple of quarters.

[Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

I'm wondering if you could talk a little bit about first half versus second half. It sounds like you've got some E band kicking in in India in the second half of that of this year. If you could kind of expand on that a little bit and how important India is to growth, particularly within the second half. It sounds like you got some decent visibility now on that front, but presumably, it sounds like India will continue to be a growth opportunity in 2025.

[Doron Arazi, CEO at Ceragon Networks]

Yes. So hi, Scott. Thanks for the question. Look, indeed, we believe that the main uptick will happen on the second part of the year. And this is coming predominantly from India and the the rollout of e band as a result of a a very significant deployment of fixed wireless access technology in this country.

[Doron Arazi, CEO at Ceragon Networks]

Obviously, our projections are based on the indications that we're getting from the customer. And in terms of the pace that they are talking about now, it looks like there will be a very significant uptick. And I think that from capacity perspective as well as procurement, we are ready. But India is India. And obviously, we will wait until the last minute to get the go ahead either in terms of orders or even if you already received orders in terms of delivery time lines.

[Doron Arazi, CEO at Ceragon Networks]

So bottom line, yes, we build a lot on India. But as a last sentence to this thing, I want to tell you that I was also encouraged by the booking that came up in other regions that were relatively, I would say, weak during 2024. EMEA, for example, is showing very good signals. And if this will become a trajectory, I'm sure that other regions, including, obviously, North America, could contribute to a very nice second half.

[Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Just to follow-up on that point, our from a macro standpoint, certainly, tariff environment has caused some some, I guess, raise the the level of uncertainty out there from a macro standpoint. But you're insulated, from, I think, a tariff standpoint. But what is that doing in terms of customer decision, time lines, and otherwise? And do you think you're seeing any pull ins as a result of that?

[Doron Arazi, CEO at Ceragon Networks]

Well, I I I refer to that in my prepared comments. So far, we have not seen any change in buying patterns from the CSPs. There were some, I would say, hesitations in closing deals on the private networks, which obviously delayed some of the bookings. But at this point, it is not that significant. And, obviously, we are following on these changes in patterns very, very closely.

[Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

K. And lastly, if I could, just to to follow-up on the private networks front. A lot going on there now between SICLU and end to end in your expanding presence. I'm wondering if you could talk a little bit about how each are doing in the different geographies, particularly SICLU. I'm not sure if we heard many comments during your prepared remarks.

[Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

And geographically, where are you starting to see the demand on that front?

[Doron Arazi, CEO at Ceragon Networks]

So I think the most intriguing phenomena we have seen in the last three months is a huge increase in interest in the point to multipoint solution that we basically bought as part of the Sequo acquisition. And we are talking about use cases, by the way, both for CSPs and for private networks that at least during 2024, we did not see them, at least not coming as strong as we started seeing them during the last three months. Just to give you a few examples, one of the use cases is a small cell backhaul, and we have seen that use case in both North America and Europe coming up. In fact, in Europe, we are already beyond a very successful POC with one of the CSPs in Europe and, obviously, starting to discuss commercials and some rollout plans. And so this is one use case.

[Doron Arazi, CEO at Ceragon Networks]

The other use case that we have started seeing is very dominant and very interesting is actually supporting large enterprises with the connectivities that wouldn't say it's a private network, but it's almost private network. It's semi private network. They are looking to replace the regular five g connectivity that is usually not steady enough and very expensive. And even in this case, we already passed a few stages of POC, particularly with a big enterprise in in North America. So while the point to point traditional e band from CCLU is continuing to be a good good solution for small ISPs and also for private networks.

[Doron Arazi, CEO at Ceragon Networks]

We are seeing also a very nice uptick in the interests and the demand for the 60 gigahertz point to multipoint in Seclu. Obviously, with E2E, it's just the beginning, but we were very encouraged by the performance of Itui in the first quarter, and we all hope that this is a sign for a very successful future.

[Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC]

Thanks so much. I'll get back in the queue.

[Operator]

Our next question is from Ryan Kunz from Needham. Ryan, please go ahead.

[Ryan Koontz, Senior Analyst at Needham & Company]

Hi. Can you hear me?

[Doron Arazi, CEO at Ceragon Networks]

Yes. Hi, Ryan.

[Ryan Koontz, Senior Analyst at Needham & Company]

Super. Hey. Good morning. I wanna ask about the the E band product you have coming out for sounds like really targeted for India. Can you maybe expand on the your differentiation there and why you think that that's a a game changer in that important market for you?

[Doron Arazi, CEO at Ceragon Networks]

You know, people who know India predominantly in this space, India is, I would say, a freak of the latest technology for the lowest price. And I think that over the years, we have built this kind of experience of understanding how we find this golden line and the product that is going to be launched at the and actually commercially available towards the end of this quarter is just meeting these two elements, which is very strong product in terms of performance and top notch technology, and at the same token, with a cost structure that fits in to India. Now let's let's not forget. It's not that we are just now sorry, finishing the development, and now we'll start negotiating the price and everything. All terms have been already closed in q four of last year, all commercial terms.

[Doron Arazi, CEO at Ceragon Networks]

And we basically know or we have an indication what market share we will capture with this product. And market share in India means everything. If you are getting the lion's share, it means that your product is meeting the cost effectiveness versus the performance the most as opposed to the competition.

[Ryan Koontz, Senior Analyst at Needham & Company]

Got it. Yeah. That's really helpful. Thanks for all that color. And then maybe lastly, if you can comment on the competitive environment in, in in North in the developed markets, North America and Europe, and who you see out there, in your in your traditional deals and any any changes in the last, you know, quarter or two?

[Doron Arazi, CEO at Ceragon Networks]

I think that there were not any major changes during the last couple of quarters. I would only say that in Europe, we are seeing more and more interest in looking into vendors like like Ceragon to basically replace the Chinese. It's not as strict, and it's not as fast as it happened in some other countries and some other regions. But this is obviously opening up for us some new prospects and which we did not see in in the past.

[Ryan Koontz, Senior Analyst at Needham & Company]

That's really helpful. And what what what kind of share would you estimate the Chinese have in in Europe in microwave? I assume it's pretty big.

[Doron Arazi, CEO at Ceragon Networks]

I I it's it's quite big. It's quite big. They have a very large install base in some of the leading or the t one operators in in Europe. And, obviously, these guys are looking for different ways to reduce their level of dependency. And I think that over time, this creates a very nice opportunity for non Chinese companies, obviously, including Ceragon.

[Ryan Koontz, Senior Analyst at Needham & Company]

Surely great. Thanks for the color.

[Doron Arazi, CEO at Ceragon Networks]

Sure.

[Operator]

Our next question is from Theodore O'Neill from Hill's Research. Theodore, please go ahead.

[Theodore O'Neill, CEO at Litchfield Hills Research]

Thank you very much, and congratulations for the good guidance going forward. Just quick question here on India, your strength in India and North America. Could you give us a sort of proportion of this is you're you've got the strength because your technology or the service level, versus market share? And is it is it different between the technology service and market share between India and North America?

[Doron Arazi, CEO at Ceragon Networks]

I would say that there's no much difference. I would say that in North America, the main emphasis is is technology. And while in India, they expect you to deliver, including services, and that makes a little difference in terms of the rollout and how it works. And in many cases, you are actually dependent on yourself. So if you are able to faster rollout equipment that was already delivered, your chances to get the next PO and to move to the next delivery are higher.

[Doron Arazi, CEO at Ceragon Networks]

It's it's slightly different in North America. But, look, generally speaking, when talking about tier one operators, eventually, would say that there's a lot of commonality. Obviously, the economy in North America is allowing for better margins and also sometimes for more sophisticated pricing models. But generally speaking, both operators from both countries are aspiring to get a very strong and reliable product. They want a peace of mind. That's what they are looking for.

[Theodore O'Neill, CEO at Litchfield Hills Research]

Okay. Thank you very much.

[Operator]

Thank you. There are no further questions. So Doron, back to you for closing statements.

[Doron Arazi, CEO at Ceragon Networks]

Yes. I'd like to thank all of you for participating in today's call and for your interest in Ceragon. Given our improved bookings, product road map and expansion into faster growing segments of the market, namely private networks and millimeter wave, I believe we are well positioned to remain the leader in wireless connectivity. I look forward to sharing our progress on the next quarterly conference call when we report our second quarter results. Have a good day, everyone.

Participants

Executives

• Doron Arazi, CEO
• Ronen Stein, Chief Financial Officer

Analysts

• Rob Fink, Managing Partner at FNK IR
• Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC
• Scott Searle, Managing Director, Senior Research Analyst at Roth Capital Partners, LLC
• Ryan Koontz, Senior Analyst at Needham & Company
• Theodore O'Neill, CEO at Litchfield Hills Research