Ceragon Networks Ltd.

Ladies and gentlemen, thank you for standing by and welcome to Saragon Network's earnings call. Our presentation today will be followed by a question 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 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 now like to hand over the call to our first speaker today, Rob Fink, head of investor relations. Please go ahead.

Thank you, operator, and good morning, everyone. Hosting the call today is Daron Arazi, Saragon's chief executive officer and Ronan Stein, chief financial officer. Before we start, I would like to remind everyone that statements made on this call may constitute forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934, and the Safe Provision Arbors of the Private Securities Litigation Reform Act of 1995. 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 forward-looking statements. These risks and uncertainties include, but are not limited to, companies' forward-looking forecasts with respect to which there is no assurance that such forecasts will materialize, companies' ability to future plan business, marketing, and product strategies on the forecast evolution of market developments such as market and territory trends, future use cases, business concept, technologies, future demand, and necessary inventory levels, the effects of evolving geopolitical situation in Israel, and the related evolving regional conflicts, the effects of global economic trends, risks associated with integration and deployment of acquired businesses, risks associated with the transition and rollout of 5G technologies, risks related to the concentration of our business on a limited number of large mobile operators, risks resulting from the volatility in our revenues, margins, and working capital needs, disagreements with taxes and authorities, the high volatility and supply chain needs of our customers, which from time to time lead to delivery issues and other such risks, uncertainties, and other factors that could affect results of operation as further detailed in Saragon's most recent annual report on Form 20F as published on March 25, 2025, as well as other documents that may be subsequently filed by Saragon from time to time with the Security and Exchange Commission. Forward-looking statements relate to the date initially made, and they are not 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 them. Saragon's public filings are available on the Security and Exchange Commission's website at scc.gov, and they may also be obtained on Saragon's website at saragon.com. Today's call will also include certain non-GAAP financial measures. Reconciliation between GAAP and non-GAAP results is included in a table attached to the release that was issued earlier this morning, which is posted on the investor relations section of Saragon's website. With that, I will now turn the call over to Doron. Doron, the call is yours.

Thank you, Rob, and good morning, everyone. On the surface, Saragon's second quarter revenue was below expectations, but this is primarily tied to a single region, India, and is largely being driven by one key customer that is navigating well-publicized financial challenges. This has temporarily halted this customer's order activity and limited near-term visibility, as paths forward are not yet established. Based on what we know today, we expect that this will just be a timing issue, with market demand and our share of the market essentially unchanged. Beneath that headline, I believe the Saragon story is far more encouraging, reflecting the substantial improvements we have made in our business over the past two years, as well as the benefits of continued innovation in our solutions. We delivered three cents in non-GAAP earnings per share and maintained healthy operating margins, even in the face of the disruption in India, a clear demonstration of the operational strength, cost discipline, and resilience we have built into Saragon. At the same time, our broader momentum continues to build. In fact, the second quarter was an encouraging period for Saragon, with our differentiated technology demonstrating meaningful capabilities that we believe outpaces our competitors. These durable competitive advantages are actively positioning us for new opportunities and use cases that can drive incremental revenue and market share gains across multiple geographies. Customer needs and market trends are aligning with our technological roadmap. We are proving our value through field trials and -of-concept engagements, and this is beginning to fuel potential growth in our pipeline and bookings in real time. This dynamic is especially evident in North America, where our recent introduced technologies are proving applicable to both service providers, carriers, and private network operators alike. In fact, during the second quarter, we secured a multi-million dollar project as a preferred vendor for a new major tier one carrier in North America. This project leverages Ciclu technology to introduce a new product, demonstrating our ability to deliver differentiated value through capabilities that, in our opinion, our competitors are far from introducing. We are also expanding interest in such products across North America and other regions. While still early, we believe this new carrier engagement, as well as this new product, could unlock substantial new business and contribute to incremental share gains with other service providers in one of the world's most strategic communications markets. Second, we are cultivating significant increased interest in our -multi-point solution. This technology has been demonstrated and validated in multiple -of-concept projects, both in North America and Europe, serving a wide range of use cases across private networks and CSP domains. These successful evaluations have enabled us to advance into more detailed discussion with potential customers and discuss early-stage commercial engagements. The -multi-point platform acquired through our Ciclu transaction continues to prove its value, particularly in private network applications, but increasingly with other customers as well. Given Ciclu's financial position at the time of acquisition, we expected to address areas of underinvestment and we acted quickly to stabilize and strengthen the product. We are now beginning to see the returns from that effort with growing momentum and expanding business potential. Importantly, the -multi-point technology is particularly well suited for smart city applications. As a chosen partner, we are currently involved in a multi-year project in one of Latin America's largest cities under a -a-service model. Should this project mature to its full extent, it could represent recurring annual revenue of $7-8 million for a minimum of five years. In our traditional business, our IP50EXP solution is gaining significant traction as a leading traditional microwave solution alternative. The IP50EXP delivers -wave-like capacity over traditional microwave distances. This high-power product combined with an auto-aligned antenna enables customers to replace microwave deployments at a significantly lower total cost of ownership and in many cases, even higher bandwidth. We are also participating in multiple RFPs for traditional backhauling projects using our latest CX, EX, and IP50GP product families in EMEA and Latin America. These projects support network modernization efforts aimed at increasing capacity. Our new product's exceptional price-performance ratio is increasing our chances to win business from customers who we hadn't worked with in several years, demonstrating yet again our ability to capture and recapture market share with our industry-leading technology. We are driving demand globally, but in Q2, North America remained a standout. Excluding E2E contribution, both bookings and revenue in North America exceeded $20 million. Balancing these exciting developments are short-term headwinds we are experiencing in India, our largest market, and it's important to address those directly. Revenue from customers in India was $24.8 million, a decrease of 30% year over year. As I mentioned, our customers well-publicized financial challenges impacted the project we are involved in and this project stalled. At this point, it is hard to predict whether and when it will resume, although we believe the situation is a timing issue and expect a favorable resolution in the future. Additionally, some other projects with other Indian carriers are progressing at a slower pace than our original expectations. However, we are bidding on a new opportunity in India that could add significant incremental business for us in 2026 and beyond. We continue to pursue more opportunities with new products, including, without limitations, leveraging Ciclus technology. To summarize, our market share in India is expected to remain intact and we still see the region as long-term contributor to our business growth. Zooming out, the variety of opportunities in front of Saragon is the strongest I can recall. While new-term visibility remains limited, we are seeing positive and accelerating signals of success across our portfolio. Our strategy is resonating, our commercial traction is expanding, and our technology is opening doors to further penetrate markets, enter new segments, and reach new customers. Most importantly, the bottom-line results we reported today reflect the meaningful improvements we have made to our business over the past several years, enabling us to continue investments in our strategic initiatives even at times when revenue is low. As a result, we remain confident in our ability to translate future growth into stronger earnings and sustained value creation. 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.