Ceragon Networks Ltd. Q3 FY2025 earnings call

• Technology and market: Demand for high capacity low latency connectivity driven by AI and data-intensive apps. Ceragon's E-band and point-to-multipoint offerings address network capacity and resiliency. • Proof of concept: Completed three E-band deployments with T1 operators and ISPs, demonstrating ability to boost capacity, extend reach, etc. • Smart city and enterprise: Rollout of phase one of a large smart city project in Latin America with recurring revenue potential; e-commerce company in US using 60 GHz solution. • Contracts: Awarded prime contracts for private 5G and WiFi in US; managed services contract with Colombian operator using digital twin for predictive maintenance. • Financials: Strong cash generation enabling R&D, sales/marketing investments, and strategic acquisitions.

Revenue for the third quarter was $85.5 million, down 16.7% from $102.7 million in 2024. North America was the strongest region, contributing $36 million including E2E. India contributed $24.4 million. Non-GAAP gross margin was 35%, up slightly from the prior year period.

• Confident in achieving $340 million full-year revenue for 2025. • Optimistic about 2026 growth due to improved visibility and funnel of opportunities across regions.

• Geopolitical situation in Israel and regional conflicts. • Global economic trends, inflation, interest rates. • Integration of acquired businesses. • Delays in 5G transition/rollout. • Concentration on large operators with inconsistent orders. • Supply chain volatility, tax disputes.

Q: Scott Searle from ROTH Capital asks about fourth quarter guidance and drivers for 2026.

A: Doron Arazi talks about optimism for Q4, drivers in India and North America, and AI's role.

Q: Ryan Boyer Koontz from Needham asks about tier one ramp up in North America and drivers.

A: Doron Arazi says it's due to capacity upgrades, fixed wireless, etc.

Q: Christian David Schwab from Craig Hallum asks about growth optimism for 2026.

A: Doron Arazi says mid single digit growth expected pending AOP finalization.

Q: Theodore Rudd O’Neill from Hills Research asks about E-band validation and network resilience.

A: Doron Arazi talks about expected orders from E-band POC and global need for network resilience.

Q: Gunther Kargan asks about defense/military security business.

A: Doron Arazi says opportunities exist globally in security and defense.