Ceragon Networks Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the Sargon Network's Q1 2022 earnings call. Our presentation today will be followed by a question and answer session, at which time, if you wish to ask a question, you'll need to raise your hand using your mobile or desktop application. I'd like to hand over the call now to our first speaker today, Ms. Maya Lustig, Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. I am joined by Doron Arazi, Saragon's Chief Executive Officer, and Ron Vered, 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 give no assurance 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 as further detailed in Saragon's most recent annual report on Form 20F and in Saragon's other filings with the Securities and Exchange Commission. Such forward-looking statements represent our views only as of the day they are made and should not be relied upon as representing our views as of any subsequent date. Such forward-looking statements do not purport to be predictions of future events or results and there can be no assurance that they will prove to be accurate. Saragon may elect to update his forward-looking statements at any point in the future, but it specifically declaims 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 Doron. Please go ahead.

Thank you, Maya, and good morning, everyone. We began the year with strong momentum that has built up since beginning of 2021, especially in North America and Europe. We saw exceptionally strong bookings in Q1 2022, the highest in the last four years and on par with second quarter of last year. We continue to make good progress in all three of our strategic pillars together, which constitutes our growth strategy, as you may recall from earlier discussions. Our first strategic pillar has to do with increasing our traditional business, which is the best in class all outdoor microwave and millimeter wave market segments. With the massive ongoing 5G network rollouts in North America and Europe, we received significant value of orders this past quarter. Our second pillar involves expanding our business into open network architecture domains. Our IP50FX disaggregated sell-side gateway or DCSG solution launched in the first quarter uses the best of breed software and hardware to integrate a cell site router and a radio indoor unit offering both in a single solution. This quarter, we already received the PO for IP50FX from a large tier one operator in Latin America. And our third pillar is strengthening our managed services offering to deepen our relationship with our customers This offering has garnered considerable attention from operators, private networks, and carriers in North America, Latin America, and Europe. In fact, the results of our most recent customer survey, which was conducted in the first quarter, demonstrate that 28% of our existing customers would be interested in our managed services. And we are already seeing this interest turn into POCs and orders for NOC support, connectivity as a service and more across different regions. Our customer survey also shows that our product satisfaction rate stands at a competitive 85%. That 85% of our customers think our main advantage is us being there, quote, trusted, trusted, unquote, sorry, quote, trusted advisor, unquote. And they rate us among the top three technology leaders in the industry. In addition, a staggering 97% report that they are likely to increase or maintain their business with us. According to them, what sets us apart is our product quality, ease of use, and reliability. These results allow us to confirm our continued confidence in the strong demand for our solutions in 2022. I will now give you an overview per region. In North America, we experienced high demand and received healthy bookings. Based on the current outlook, we anticipate another record year in this region. As we announced earlier today, we signed a contract with DISH and started receiving orders worth multi-million dollars. DISH will leverage our ultra-high capacity IP50C microwave and IP50E millimeter wave transport solutions to support its nationwide 5G rollout. We will also provide them with deployment services for smooth rollout and network asset management. DISH is America's first cloud 95G network service provider, and we feel proud to be their partner of choice. Also in the first quarter, we want to deal with a large North American carrier to provide them with our all indoor technologies. In this region in addition to accelerated 5G rollout by large operators we are seeing the ISPs and private networks market expand. In Q1 we enhanced and grew our sales funnel significantly winning a tender in this domain as well. In India the continued high demand is reflected in the strong orders and the bookings we received. Here we mainly work with the region's T1 operators helping them with fast site upgrades and network expansion to prepare for the 5G era and deliver uninterrupted connectivity. In February, a leading T1 operator placed orders for our all outdoor 5G ready multi-core solution with delivery scheduled for Q2 and Q3 2022. Countrywide, the 5G spectrum tender is on track. Even spectrum, release for backhauling is on its way, which presents a significant opportunity for us. We believe that our long time market leadership and reputed name will help us have a decent market share in this domain. In Europe, we had an exceptionally strong quarter. In fact, It was a record quarter in the past two years. Here, as large operators begin their 5G field trials, we provide them with our latest capabilities and technologies. A leading T1 operator and a third party DCSG have tested our Rion, which proved that our Rion software works well with other open network elements. We also finished a successful POC with a T1 global operator as part of their TIP activity. In addition, we acquired a new T1 customer, sorry, a new T2 customer. We will be supporting them with their nationwide 5G projects. In APAC, we saw an improvement in the business environment compared to the last quarter. Post-COVID, countries are opening up and the market is working its way back to normal, except for China. This past quarter, we acquired two new private network customers in this region. Bookings were strong. In Latin America, we experienced a very strong start to the year, thanks to strong bookings. The pandemic seems to be behind us and business recovering. Despite some political instability, which has an impact on business decisions and ongoing projects, investments are beginning to increase in several different countries. We received POs for our IP50FX from leading tier one operators in Paraguay and Argentina. In Africa, we had a slow quarter in line with our expectations due to seasonality. On the delivery and gross margin front, this quarter, we continue to experience the challenges we spoke about in our previous call. These challenges caused our revenue to be somewhat lower than our expectations. So was the gross margin. This quarter, an issue that stood out was shipping costs relative to our expectations. We have been analyzing the main reasons for this specific cost increase in order to take action where we can and to get a better control of it. As stated in our previous analyst call, we believe that these challenges are temporary. Improvement in our gross margin is expected only during the second half of the year, assuming gradual improvement in our supply chain and shipping constraints and costs. Our main goal is to continue to meet the increased demand we are seeing from our customers and maintain and expand our market share. That said, we are doing our utmost to improve our gross margin via short, mid, and long-term cost reduction initiatives, as well as price increases where applicable. Looking ahead, we feel confident about our core domain products as well as our newer products such as IP50FX, which help us leverage the fast-growing open network trend. We believe that our positioning as best-in-class providers for microwave and millimeter wave technologies as well as a leader in the new disaggregated market will continue to drive positive returns As I mentioned earlier, these two areas cover the first two pillars of our growth strategy. In addition, expansion in the third pillar, which is managed services, will bring us more recurring business and revenues and improve our gross margin. Our belief is that together, increased activity in all three pillars will help us achieve margin expansions, which is our core aim. The bottom line is that demand looks strong and we see opportunities to increase our market share. Thus, in spite of the challenges associated with deliveries and cost increases, we are optimistic about the future. With that, let me now turn the call over to Ran to discuss the financials for the quarter. Ran?