Ceragon Networks Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Sergo Network's 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 will need to raise your hand using your mobile or desktop application or press asterisks on your telephone keypad and wait for your name to be announced. I must advise you that this call is being recorded today. I would like to now hand this call over to our first speaker, Rob Fink, Head of Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Hosting today's call is Daron Arazi, Seregon's Chief Executive Officer, and Ronen Stein, Chief Financial Officer. Before we start, I would like to remind everyone that certain statements made on this call may constitute forward-looking statements within the meaning of the Securities Act of 1933, the Securities Act of 1934, as well as the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Tarragon intends forward-looking terminology such as may, plans, anticipates, believes, estimates, targets, expects, intends, potential, or other comparable terminology, although not all forward-looking statements contain these identifying words. Such statements reflect current expectations and assumptions of Saragon's management. Actual results may differ materially as they are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected in our forward-looking statements. These risks are detailed in Saragon's most recent annual report on Form 20F, as published on March 25, 2025, as well as in other documents that may be subsequently filed by Saragon from time to time with the Securities and Exchange Commission. Forward-looking statements relate to the date initially made, and they are not predictions of future events or results. There can be no assurance that they will prove to be accurate, and Saragon undertakes no obligation to update them. Saragon's public filings are available on the Securities and Exchange Commission's website at scc.gov and may be also 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 table attached to the press release that was issued earlier this morning, which is posted on the investor relations section of Saragon's website. With all that said, I will now turn the call over to Daron. Daron, the call is yours.

Thank you, Rob, and good morning, everyone. Saragon delivered a strong financial performance in the first quarter, highlighted by the highest booking levels since Q1 2024. Bookings rebounded across India and EMEA, while growth in North America remained solid. We are reiterating our outlook for full year 2025 and have been encouraged by multiple positive demand signals we observed during the quarter and specifically at Mobile World Congress in Barcelona in early March. Our conversations with senior decision makers from both existing and prospective customers further validated that Saragon is strategically aligned for long-term success in the evolving wireless connectivity landscape. Notably, we had direct discussions with senior executives from major customers in India and other regions. These conversations along with other market insights support our belief that our current offerings are exceedingly well aligned with customers' needs. Additionally, we heard compelling feedback that supports strong anticipated demand for microwave and millimeter wave products, including first fixed wireless point-to-point, point-to-multipoint solutions for tier one operators in North America and Europe. We are discussing with at least one T1 operator the possible development of a new solution tailored to their needs that has substantial commercial potential. Another trend that was evident at the Mobile World Congress was the deep interest from CSPs and private networks in our software-driven services and solutions to support network operation and optimization. As we have discussed on previous calls, managed services are an important strategic priority for Saragon, and we saw strong interest at MWC from customers who are increasingly evaluating software applications and managed services to enable faster deployment and more efficient network operation. Finally, we continue to see the emergence of new use cases for our products, both in CSP and private network segments, which have the potential to meaningfully expand our targeted addressable market and drive incremental revenue opportunities. These market dynamics are consistent with our product and service roadmap, supporting our strategy to maintain technology leadership and address the needs of both T1 and T2 carriers as well as private networks. As we have previously noted, the shift to software-driven services and applications will also enable us to increase our annual recurring revenue and achieve higher margins relative to our traditional hardware business. In February, we successfully closed the acquisition of E2E technologies, strengthening our expertise in private networks. particularly in the energy and utilities sector in North America. Private networks remain a fast growing segment of telecom connectivity and E2E's proven system integration capabilities and software platform are expected to strengthen our portfolio significantly. E2E's bookings in the first quarter outperformed our expectations and revenue contribution in the first quarter was in line with our expectations. We continue to expect E2E to be accretive to non-GAAP earnings by the second half of 2025. I'd now like to review our first quarter highlights by region. In India, revenue was $42.9 million, an increase of 65% year over year. Encouragingly, bookings were also the highest since Q1 2024. Moreover, a minimal amount of these bookings was tied to the previously announced $150 million project award for a major network modernization initiative of a T1 operator, which demonstrates broad-based demand throughout India. The elevated bookings and revenue in Q1 and continued strong customer demand reinforce our long-term outlook in our largest market. In North America, revenue was 17.6 million, including contributions from E2E. Excluding the contributions from E2E, Q1 bookings and revenue were also higher than in Q4. We are improving our competitive position with existing customers and getting more traction from new prospects. The tariff dynamics are creating some instability for certain customers, primarily those in private networks. However, we are encouraged by the continued steady activity among carriers. While we're closely monitoring for any shifts in customer ordering patterns, we're also proactively positioning ourselves to navigate these changes effectively. Simultaneously, we are actively assessing the proposed tariffs, not just to mitigate potential risks, but also to identify strategic opportunities to capture market share. Our diverse manufacturing footprint and adaptable supply chain provide us with a distinct advantage in this environment, allowing us to explore alternative sourcing and pricing strategies that could offset potential impact. While it is still too early to quantify the precise effect of our profitability in 2025, we believe the net impact of tariffs will be minimal. As we remain vigilant in monitoring these developments, we are confident in our ability to adapt swiftly and leverage our strength to drive continued growth. Returning to some more general commentary Through the acquisition of CICLU and E2E, we have significantly enhanced our capabilities in the fast growing segments of wireless connectivity, particularly millimeter wave and private network markets. We are continuously evaluating additional strategic M&A opportunities that would further complement our product and service offerings, enabling us to further expand in high growth areas for wireless connectivity. I'd now like to turn the call over to Ronen Stein, our CFO, to discuss the financial results in more detail. Ronen, over to you.