Ceragon Networks Ltd.

Ladies and gentlemen, thanks for standing by. Greetings and welcome to Paragon Network's limited fourth quarter and full year 2020 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If you should require assistance during the conference call, please press star, then zero. And as a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Maya Lustig, Head of Investor Relations at Saragon. Thank you. You may begin.

Thank you, Alan, and good morning, everyone. I'm joined by Ira Talty, Saragon's President and Chief Executive Officer, and Ron Barrett, Saragon's Chief Financial Officer. Before we start, I would like to note that this call includes information that constitutes 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. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can be not sure that our expectations will be obtained or that any deviation therefrom will not be material. Such statements involve risks and uncertainties that may cause future results to differ materially from those anticipated. These risks and uncertainties include but are not limited to such risks, uncertainties, and other factors that could affect our results as detailed in our press release that was published earlier today and asserted detailed in several most recent annual reports on Form 20S and in certain other filings to the Facilities and Exchange Commission. Such forward-looking statements represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. Such forward-looking statements do not support to be predictions of future events or results, and there should be no assurance that they will prove to be accurate. Saragon may elect to update its forward-looking statement at some point in the future, but it specifically disclaims any obligation to do so. Saragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Saragon's website at www.saragon.com. Also, today's call will include certain non-GAAP numbers. For a reconciliation between GAAP and non-GAAP results, please see the table attached to the press release that was issued earlier today. I will now turn the call over to Ira. Please go ahead.

Thank you, Maya, and good morning, everyone. In the fourth quarter of 2020, as well as almost the entire year, the macro environment remained challenging. Fast forward to the present, the vaccine rollout in Israel is inspiring, setting a world record and an example to other nations. Personally, I got my second shot already, and I'm happy to share with you that I'm feeling perfectly fine. For Saragon, the fourth quarter was a relatively good end to a volatile year, with revenues and business activities returning to their normal run rate. Van will give you the details later in the call. I would like to take the opportunity to say a few words about our most recent technology focus, the evolving market, and our emerging roadmap. 2020 was a unique year for business, and, as economist once said, a crisis is a terrible thing to waste. A big opportunity for us this past year was to be a key player in moving the 5G evolution from hype to reality. As we would agree, 2020 created a deep cultural change in our global society. Due to the lockdowns, limited face-to-face interactions, and reduced travel, online services became the lifeline. We all adopted new ways of communicating, doing business, shopping, entertaining ourselves, and more. This is generating massive traffic and complexity that strain existing networks, creating an urgent need for more network capacity. To keep pace, operators are pushing 5G from initial trials into the field. And this is what we have been waiting for and are very excited about. We believe we are poised to provide operators with the technology, expertise, and services they need to make this transition happen. And we foresee a significant opportunity to grow and take market share. At Ceregon, we have a history of benefiting from the transition between wireless generations. As 5G services and networks build momentum, We believe that once again, we will do what we do best, leverage this transition and continue our successful company story in 2021 and beyond. When we look back, we see that the three main technological breakthrough that empowered us to become a true global player were wireless SDH, wireless IP and compact multi-core all outdoor wireless backhaul solutions. And more than that, we became present in all corners of the world, positioned to benefit from the wave when it occurs, where it occurs, which is something our best-of-breed competitors cannot boast. Our first big revenue jump was a decade and a half ago, when our wireless SDH solution drove the transition from 2G to 3G. This almost tripled our revenues at the time, from $55 million to above $160 million per year. We were the first to introduce wireless SDH technologies, a game changer that opened a world of possibilities for operators to bring the internet to mobile devices. Our next big step was over the next 10 years when we were the first to introduce wireless AP hauling, compact all-out solutions, dual-core chipsets, which allowed us to ride the 4G wave globally and took us from $160 million to a yearly run rate of about 300 million. And that's exactly the position we are in today. We expect to continue to be a key enabler of the exciting 5G evolution. I'd now like to spend just a few minutes to explain why, especially for those of you who are new to Ceregon, it might help to break down the elements that contribute to our 5G positioning. 5G networks require massive capacity, density, and flexibility with extremely low latency, and we believe our differentiated solution leads the market in all these areas. We enable operators to utilize a much wider range of spectrum, and our open network architecture supports more flexible and operationally efficient network rollouts and quicker time-to-revenue. We are one of the only players that develops all network components in-house. We believe this gives our customers' networks a performance advantage, along with several years lead in network capacity and network resource management, such as spectrum, energy, and site acquisition. Thanks to all this, we believe our customers succeeded more often and more efficiently in today's competitive markets. I'd like to speak a bit more about our leadership in the best of breed portion of the wireless holding market. We were at the front front leading a change that created more possibilities for operators to build and manage higher performance and more operationally efficient networks by integrating the best solution for every network domain. This is what made us the number one wireless hosting specialist in first in the 3G days with wireless NSDH, and then in 4G days with wireless IP and multi-core all-outdoor solutions. Today, another change is already picking up speed. The industry's move led by operators towards open networks, the open run, or disaggregated environment. This enables operators to integrate a specialist solution for each network domain from different vendors. the market is becoming more democratized, which plays to our favor. Just a couple of weeks ago, we learned that Europe's Deutsche Telekom, Orange, Telefonica, and Vodafone formed a collaboration around the rollout and development of open-run technology in a bid to ensure that Europe keeps up with the U.S. and Japan. In the wireless hauling best-of-breed market segment, we believe the leading provider is us, Ceregon. We believe we have the most advanced and flexible set of technologies and solutions, the largest market share, and the most comprehensive services and expertise, and the widest geographical coverage. The transition from 4G to 5G is creating a huge change in the way networks are designed and architected. That's why often we help operators achieve an evolutionary approach. We provide a wireless-based back-home network that is supporting 4G networks and that can be upgraded cost-effectively to 5G at any point. Capacity by tenfold. We help them optimize their network performance and network resources, including reuse of equipment, where needed. This total support approach is how we have built our extensive customer base worldwide, some of whom are recently acquired. This includes major T1 operators in North America, Europe, and Southeast Asia, as well as T1 and T2 operators across the globe, plus smaller ISPs and regional players. It's what we believe makes us an essential partner for operators as they evolve to 5G. So, what makes us the technology leader of wireless holding, and even more so, when it comes to wireless hauling for 5G? The answer is the combination of four elements. First of all, we are the only player that builds our own purpose-driven chipsets, giving us the tightest integration in the market, functionality and cost-wise. Second, total vertical integration. We are the only player that does everything in-house from chipset development for microwave and millimeter wave to complete radio and networking system. Third, we are the only player with leadership in all three domains of the disaggregated wireless holding network, networking software, networking hardware and radios. And finally, we believe we are the kings of compact all outdoor solutions with nearly 40% market share of the segment as measured by Skylight Research Firm. Putting all this together, you see, the full extent of our capabilities. Solutions and roadmap. Two gigabits per second to 100 gigabits per second over a wide range of spectrum going well above 100 gigahertz. This is what is needed to support the capacities and capabilities for any and every possible 5G scenario. Now that we believe we are perfectly positioned to leverage the 5G evolution, The open question is the timing. We see signs that this evolution will start building at the largest scale till the end of 2021 and then go through 2022 and 2023. The exact timetable might be impacted by COVID, but we believe this is a general direction. The US has been deploying 5G since late 2019 and shares leadership of the transition today with China. Network build-outs using wireless hauling for transport across networks have recently begun. We've increased our 5G design wins to nine this quarter, and we are participating in numerous 5G proofs of concept and initial rollouts in the U.S., Europe, and the Pacific Rim, and plans are being finalized for mass rollouts. We anticipate that the first large-scale networks to make use of wireless hauling in mass are likely to pick off toward the end of 2021 and then to pick up speed at first gradually through 2022 and 2023. We expect to benefit from the growth of this market and also to take market share. After Japan and Western Europe, we expect to see 5G momentum build in the rest of Europe, APAC and LATAM, followed by Africa three years down the road. In the meantime, we continue to benefit from large expedited 4G projects to increase network reach and capacity. In some of these projects, the operators are already seeding in the wireless holding infrastructure required for 5G. To conclude, we are moving into a new kind of future, building on a growing collective online mobile presence and global hyper-connectivity whose full ramification and potential we are yet to witness. In this new context, we believe there are and will be an increasing number of business opportunities for us across the globe starting already this year. We are working hard to leverage these opportunities and to continue to be a key enabler of the multi-year 5G evolution. I would now like to turn the call over to Ran to discuss our financials in more detail. Ann?