Ceragon Networks Ltd.

Ladies and gentlemen, thank you for standing by and welcome to the Saragon Networks conference call. Our presentation today will be followed by a question and answer session. If you wish to ask a question, you'll need to raise your hand using your mobile or desktop application or press star 9 on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded. I'd now like to hand it over to Rob Fink, Health Investor Relations. Please go ahead, sir.

Thank you, Operator, and good morning, everyone. Hosting today's call is Daron Arazi, Saragon's Chief Executive Officer and Ronen Stein, Chief Financial Officer. Before we start, I'd like to note that certain statements made on this call, including projected financial information results and the company's future initiatives, future events, business outlook, development efforts, and their potential outcome, anticipated progress and plans, results and timelines, and other financial... The counted related matters 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 statements, terminology such as believes, expects, may, will, should, anticipates, plans, or similar expressions to identify forward-looking statements. Such statements reflect only current beliefs, expectations, and assumptions of Saragon's management. Actual results, performance, or achievement of Saragon may differ materially as they are subject to certain risks and uncertainties, which could cause Saragon's actual results to differ materially from those projected in such forward-looking statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties that are described in Saragon's most recent annual report on Form 20F and may be supplemented from time to time in Saragon's other filings with the SEC, including today's earlier filings. The earnings PR, all of which are expressly incorporated herein by reference. Forward-looking statements relate to the date initially made, do not purport to be predictions of future events or results, and there can be no assurances that they will prove to be accurate and Saragon undertakes no obligation to update them. Saragon's public filings are available on the Security and Exchange Commission's website at scc.gov. They may also be obtained from Saragon's website at saragon.com. Also, today's call will include certain non-GAAP numbers for reconciliation between GAAP and non-GAAP results. Please see the tables attached to the press release that was issued earlier today, which is posted on the investor relations section of Saragon's website. With all that said, I would now like to turn the call over to Daron. Daron, please go ahead.

Thank you, Rob, and good morning, everyone. This was a solid start to 2024 for Saragon. We are executing against our strategic plan and are on pace to achieve our full year growth and profitability targets. Demand for our solutions is strong and growing in North America and India in particular, and we are expanding our presence with private network customers globally. We grew revenue year over year, expanded our gross profit margins, and delivered another profitable quarter with positive free cash flow. The quarter was highlighted by particularly strong booking level. The large scale network modernization project for a tier one operator in India was a major contributor to the higher bookings as we received significant initial orders against the agreement. We continue to generate strong bookings in North America as well, and we generated improved bookings in all other regions sequentially. The strong bookings give us visibility and optimism that we will achieve our full year growth and profitability targets. Our new products and solutions are serving as a catalyst for our business. As expected, our new offerings are creating higher customer interest and are starting to translate the bookings and revenue. We used Mobile World Congress as a venue to showcase our next generation solutions. We also started delivering significant quantities of one of our new products in the first quarter. Some of the new solutions in our portfolio that are worth highlighting include, first, our multi-hole or fixed wireless access family of point-to-multipoint solutions that operate in the V-band frequency, opening doors to diverse applications through its use of unlicensed spectrum, along with its high capacity and short range characteristics. These quantities are ideal for both private networks and service providers aiming to establish swift connections in confined dense areas such as cities and campuses. Next, the IP50CX, the most compact universal microwave radio in the industry. This all-outdoor radio, with its unparalleled versatility, has the capability to form the entire network from small cells to large-scale aggregation sites, significantly simplifying network architecture, reducing costs, and accelerating time to revenue. Finally, there is the IP50EX, an ultra-compact, high capacity Eben radio, which is ideally suited for a variety of use cases, especially when small size and low OPEX are priorities. As I'm sure you know, MWC is the largest, most influential connectivity event in our industry. Our goals at MWC were to demonstrate our technology, communicate our millimeter wave solution, which is the industry's broadest, and also demonstrate our recent advances in microwave and millimeter wave transport and fixed wireless access. We achieved each of these goals. We had a record number of face-to-face meetings with customers and prospects, received great affirmations of our upcoming next-gen technology and received strong indications that we are well aligned with market needs. We provided an industry first live demonstration of the capabilities of our soon to be 100 gigabit per second event link that is based on our new system on a chip with great feedback. We also showcased end-to-end private networks offering with a unique display of our broadband luminaires that integrate gigabit speed wireless connectivity into lightning infrastructure to enable smart city connectivity. Visitors to our booth learned about our professional and managed services offering and saw a demonstration of our Ceregon Digital Twin solution and how it optimizes networks for reduced costs and improved user experiences. As it relates to private networks, we made particular strides in the energy sector during the quarter. We signed new deals serving the energy industry across multiple regions with an aggregate deal value of nearly $10 million. These energy sector agreements underscore the pivotal role we play in advancing digital or digital transformation within the energy industry. industry facilitating the goal of network operators to achieve high capacity at reduced costs. In the second half of 2023, we expanded our talent center approach to better position Saragon for profitable growth. In addition to our existing and very successful talent centers in Israel and Romania, we have now opened two new talent centers, one in Bangalore, India, and one in Asuncion, Paraguay. The primary goal of these talent centers is to improve our access to the talent market, as well as to support our long-term targets of growth and expanded operating margins. I'd now like to provide an overview of our Q1 highlights by region, noting that on today's call, we will focus primarily on activities in North America and India, The two regions that have and we expect will continue to have the greatest impact on our results in the near term. In North America, revenue was $28.9 million. We continue to maintain our presence with large carriers and other major customers. Specifically, we saw significant demand from large ISPs for Ciklus millimeter wave solutions. The headwinds service providers face have been well documented and capex spending by large networks has been more volatile. We continue to navigate these challenges better than many in the space, though it has reduced our line of sight to converting bookings to revenue and elongated our sales cycles somewhat. In private networks, we've made important first steps in a few new accounts, receiving initial orders, and we expect the number of new customers to increase in Q2. Also, our expanded marketing initiatives in North America are just now accelerating and we hope to start seeing the fruits of these investments later this year. In India, revenue was $26 million with record bookings, again, related to large agreement we discussed last quarter, as well as high value of orders received from one of our longstanding customers. We continue to expect delivery and deployment of new customer orders to begin in the second quarter and deployment is expected to take approximately two years with about 75% of the project value expected to be recognized during this timeframe. Clearly, we continue to be successful in India and North America and this is facilitating our growth and profitability. With that, I'll turn the call over to Ronen Stein, our CFO, to discuss the results in more details. Ronen, over to you.