Ceragon Networks Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the Saragon Network's Q3 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, Sargon's Chief Executive Officer, and Ronan Stain, Chief Financial Officer. Before we start, I would like to note that certain statements made on this call, including projected financial information and other results, and the Company's future initiatives 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. Saragon intends forward-looking terminology such as believes, expects, may, will, should, anticipates, plan, or similar expressions to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause Seregon's actual results to differ materially from those projected in such forward-looking statements. Such risks and uncertainties include but are not limited to those that are described in Seregon's most recent Annual Report on Form 20F and as may be supplemented from time to time in Seregon's other filings with the SEC all of which are expressly incorporated herein by reference. Forward-looking statements related to the date initially made do not purport to be 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 or revise them. 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 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. I would like to start by thanking all our employees and the leadership team for an outstanding quarter. especially given all the challenges and uncertainties we dealt with. The third quarter was a highly busy quarter for us on multiple fronts. First of all, we have a new CFO, Ronen Stein, whom I'd like to acknowledge for deciding to join the company. at such a turbulent time and already starting to play a key role in strengthening our financials. Ronan will be sharing with you the financials later in the call. I'm pleased to report that in the third quarter of 2022, we achieved significantly improved results in many key areas. Also, our diligent execution on our long-term strategy has begun to bear fruit and prove directionally correct. Our increased focus on North America and the software upgrade portion of our offering manifested into a very strong gross margin of 35.5%. Our book of orders continued to be very high. In fact, it was the highest for a single quarter since the beginning of 2017. And more importantly, our backlog grew significantly. We placed an increased focus on delivery optimization, and we saw some improvement over previous quarters, though supply chain disruptions are still part of our daily challenges. I'm also pleased to share that we generated positive cash flow. Though the nature of our business is lumpy, these strong signs of success show us we must continue to pursue our strategy and that high margins are within our reach. Looking at the big picture, as global demand continues to grow for faster speeds, network upgrades, and expanded services, we are there to support the operators by enabling faster 5G rollouts. And we are there to support private networks to modernize their networks. Our third quarter 2022 wins and bookings reflect our growing market presence across key regions. I'd now like to give you an overview per region. In North America, the third quarter 2022 was very successful for us with bookings exceeding our record second quarter. This record quarter was driven by strong demand, which came from multiple customer segments, primarily top-tier operators, followed by ISPs and critical infrastructure. A leading top-tier North American operator selected our equipment, software, rollout services, and managed services for a large expansion project. This operator is planning to leverage our high band spectrum assets to enhance its 5G service offering. Implementation of this multi-million dollar project is expected in the first half of 2023, and it is expected to further expand our market share in North America. We have made a good progress on executing our strategy to increase our market share in private networks and small operator domains. Since the beginning of the year, we accumulated wins and orders in these domains. For example, in Q3, we signed a deal with a public agency utility in the US, namely the Yuba Water Agency in California, to replace and modernize their legacy private network with a high-capacity, low-latency 5G network. Such wins and project orders present strong signals that encourage us to continue to pursue market share in these segments. We continue to invest and intensify our sales and marketing efforts in North America and plan for further growth in all segments with higher than our average margins, coupled with an increase in our service portion. In India, the 5G rollout started intensely. Operators are fast augmenting their network capacities with additional fiber and wireless deployments to achieve high speed. The opening of the event resulted in major orders. Bharti Airtel already booked its first wave of event orders with us, as well as continued the procurement of our microwave solutions, reaching bookings worth tens of millions of dollars just this quarter. The event orders from Bharti were at higher quantity than we had planned, and I believe we have received the lion's share of the initial wave. The main reason is simple. When Bharti entered its decision-making stage, we were the only vendor with successful field-proven trials of eBend with a vendor-agnostic multi-band solution and the best total cost of ownership. In India, in addition to everything I said, we saw improvement in our delivery capabilities towards the end of the quarter. We are in negotiation stages with all other main players in this market, leveraging our plans to launch our new low-cost Eben product in 2023. In Europe, Given the macroeconomic environment and the impact of the war in Ukraine, we are seeing some deals slow down. In addition, competition previously focused on Russia has now become more aggressive in other countries. In the third quarter, we continue to see strong demand for 5G. We had new wins and saw good traction in our growth engines, namely our disaggregated sell-side router and managed services and software offering. Overall, we are pleased with the execution of our strategy in this region. As supply chain issues continue to thaw and our new low-cost series is launched, we believe we'll be able to increase our market share in Europe. In APAC, the market continues to be ultra-competitive. Yet, we continue to be successful keeping our position with a potential business increase in our strategic accounts. We signed a large multi-year contract with the leading T1 Oceania operator to extend and strengthen their nationwide 4G and 5G coverage. They will be deploying our microwave and millimeter wave solutions, SDN suite, as well as turnkey services. This contract is valued at a potential of over $44 million over the next three years. In Latin America, we saw heightened competition. Each country in this region presents different economic circumstances and challenges. Despite these challenges, we had a good quarter with increased bookings year on year. We are encouraged by the traction our managed services offering has achieved and plan to increase our focus in the services domain. In Africa, while business closing is still soft, we achieved new wins in the managed services domain. To summarize, the 5G era is not just a next-generation communications technology. 5G is creating new markets and majorly reshaping existing ones. So far, our strategy has proven to be an excellent approach to these developments. We continue to provide leading wireless solutions in our core wireless backhaul domain. We developed first in the industry solutions for open network architecture, and we leverage our knowledge and homegrown software development for software-led services and managed services, all enabling us to capitalize on the opportunities the 5G era presents. We expect to continue to be the first choice of our customers, thanks to our category-defining technologies, vast experience in products and services, and customer-focused attitude. I now turn the call over to Ronen to review the financials. Ronen?