CERAGON NETWORKS REPORTS 2024 FIRST QUARTER FINANCIAL RESULTS

Strong Demand and Bookings Bolster, Confidence of Continued Growth and Margin Expansion

Management Reiterates Full-Year 2024 Outlook 

ROSH HA'AIN, Israel, May 7, 2024 /PRNewswire/ -- Ceragon Networks Ltd (NASDAQ:CRNT), the global innovator and leading solutions provider of 5G wireless transport, today reported its financial results for the first quarter period ended March 31, 2024.

Q1 2024 Financial Highlights:

• Revenues of $88.5 million, up 6.1% year-over-year
• Operating income of $4.2 million on a GAAP basis, or $7.6 million on a non-GAAP basis
• Net Income of $0.4 million on a GAAP basis, and net income of $4.7 million on a non-GAAP basis
• EPS of $0.00 per diluted share on a GAAP basis, or $0.05 per diluted share on a non-GAAP basis

Q1 2024 Business Highlights:

• North America:
  
  - Continued strong bookings, supported by demand for 5G capabilities 
  
  - Strongest region in terms of revenue, with record quarterly revenues 
• India:
  
  - Record quarterly bookings, including substantial orders from the approximately $150 million project from global integrator, in support of a network modernization project for a Tier 1 Operator 

Doron Arazi, CEO, commented: "Ceragon continues to experience high demand for its solutions, and our increased marketing efforts primarily in the private networks space enable us to increase our funnel in this segment in general and in North America particularly. Bookings were particularly strong in the first quarter, primarily due to the large orders booked in India, which give us higher confidence in our outlook for the full year. Our expanded offerings are ideally suited for the needs of customers in our key growth geographies, and this is driving interest from current and prospective customers."

Primary First Quarter 2024 Financial Results:

Revenues were $88.5 million, up 6.1% from $83.4 million in Q1 2023.

Gross profit was $32.1 million, giving us a gross margin of 36.2%, compared to gross margin of 33.8% in Q1 2023.

Operating income was $4.2 million compared to $4.7 million in Q1 2023.

Net income was $0.4 million, or $0.00 per diluted share, compared to $2.0 million, or $0.02 per diluted share in Q1 2023.

Non-GAAP results were as follows: Gross margin was 36.7%, operating profit was $7.6 million, and net income of $4.7 million, or $0.05 per diluted share.

Balance Sheet

Cash and cash equivalents were $28.8 million on March 31, 2024, compared to $28.2 million on December 31, 2023.

For a reconciliation of GAAP to non-GAAP results, see the attached tables.

Revenue Breakout by Geography:

Outlook

Management reiterated its 2024 outlook:

• Revenue of $385 million to $405 million, representing growth of 11% to 17% compared to 2023 revenue. This guidance includes the contribution from Siklu, which was acquired in December 2023.
• Non-GAAP operating margins are targeted to be at least 10% at the mid-point of the revenue guidance.
• As a result, management expects increased non-GAAP profit and positive free cash flow for the full year of 2024.

Conference Call

The Company will host a Zoom web conference today at 8:30 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community.

Investors are invited to register by clicking here. All relevant information will be sent upon registration.

If you are unable to join the live call, a replay will be available on our website at www.ceragon.com within 24 hours after the call. 

About Ceragon Networks

Ceragon Networks Ltd. (NASDAQ:CRNT) is the global innovator and leading solutions provider of 5G wireless transport. We help operators and other service providers worldwide increase operational efficiency and enhance end customers' quality of experience with innovative wireless backhaul and fronthaul solutions. Our customers include service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 5G & 4G broadband wireless connectivity, mission-critical multimedia services, stabilized communications, and other applications at high reliability and speed.

Ceragon's unique multicore technology and disaggregated approach to wireless transport provides highly reliable, fast to deploy, high-capacity wireless transport for 5G and 4G networks with minimal use of spectrum, power, real estate, and labor resources. It enables increased productivity, as well as simple and quick network modernization, positioning Ceragon as a leading solutions provider for the 5G era. We deliver a complete portfolio of turnkey end-to-end AI-based managed and professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries. For more information please visit: www.ceragon.com

Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a trademark of Ceragon Networks Ltd., registered in various countries. Other names mentioned are owned by their respective holders.

Safe Harbor

This press release contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management about Ceragon's business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects, product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.

Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations therefrom will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon's future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; The effects of the evolving nature of the war situation in Israel and the related evolving regional conflicts; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities;  the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may lead to us being unable to timely fulfil our customer commitments;  and such other risks, uncertainties and other factors that could affect our results of operation, as further detailed in Ceragon's most recent Annual Report on Form 20-F, as published on March 21, 2024, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission.

We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.

While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.

The results reported in this press-release are preliminary and unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.

Ceragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Ceragon's website at www.ceragon.com.

Ceragon Investor & Media Contact:

Rob Fink

FNK IR

Tel. 1+646-809-4048

[email protected]

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SOURCE Ceragon Networks Ltd.