Ceragon Networks Ltd.

ladies and gentlemen thank you for standing by our call will begin shortly Ladies and gentlemen, thank you for standing by. Our call will begin shortly. Ladies and gentlemen, thank you for standing by and welcome to Sargon Network's third quarter 2025 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 either 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 today. I would now like to hand over the call to our first speaker, Rob Fick, head of investor relations. Rob, please go ahead.

Thank you, operator, and good morning, everyone. Hosting today's call is Daron Arazi, Saragon's chief executive officer, and Ron Einstein, chief financial officer. Before we start, please note that today's discussion includes 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 Securities Litigation Reform Act of 1995. Saragon attends forward-looking... Terminology such as may, plans, anticipates, believes, estimates, targets, expects, intends, potential, or the negative of such terms or other comparable terminology, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on expectations that are subject to certain risks and uncertainties, which could cause actual results to differ materially. These results and uncertainties include, but are not limited to, the company's ability to execute strategic plans, marketing and product strategies on the forecasted evolution of market developments, such as market and territory trends, future use cases, business concept, technologies, future demand, and necessary inventory levels. the effect of geopolitical situation in Israel and the related regional conflicts, the effects of global economic trends, including rising inflation, rising interest rates, commodity prices, increases and fluctuations, commodity shortage and the exposure to economic slowdown, risks associated with integration and deployment of acquired businesses, Risks associated with delays in the transition of 5G technologies and the 5G rollout, risks relating to the concentration of Saragon's business on a limited number of large multiple operators, and the fact that the significant weight of their ordering is important compared to the overall overall ordering by other customers coupled with inconsistent order patterns that could negatively affect the company risk resulting from volatility and revenues margins and working capital needs disagreements with tax authorities tax positions that have been taken as a result of increased tax liabilities the high volatility in the supply chain of our customers which from time to time lead to delivery issues and may lead to the company being unable to fill order commitments and other risk uncertainties and other factors that could affect operations 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 subsequently be filed by Saragon from time to time with the Securities 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 provide accurate, and Saragon undertakes no obligation to stop and date them. Saragon public filings are available on the Securities and Commissions website at sec.gov and 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 table attached to the press release that was issued earlier today, which is posted on the investor relations section of the company's website. With that, I'll now turn the call over to Daron. Daron, the call is yours.

Good morning everyone. Saragon delivered a solid third quarter, reflecting the resilience of our operations, strengthening demand across key markets, and continued progress against our strategic roadmap. Visibility improved meaningfully during the quarter, with greater clarity around customer spending plans and project timing. That visibility has continued to strengthen in recent weeks, giving us confidence in our outlook for the remainder of this year and, more importantly, optimism for growth in 2026. Revenue for the quarter was $85.5 million above our expectations. Non-GAAP gross margin of 35% remained high and non-GAAP EPS was 2 cents, but was negatively impacted by 2 cent foreign exchange fluctuation related to a project in India. Excluding this effect, EPS would have been approximately 4 cents. Importantly, we generated free cash flow of $3.3 million, further demonstrating the strength and resilience of our business model. From a technology and market perspective, we are increasingly benefiting from the same structural forces reshaping communications networks globally. The investment in AI is growing from data centers to 5G infrastructure, and this is driving the need for high capacity, low latency connectivity. This demand is cascading outward from the core to the metro and ultimately to the wireless edge. Our addressable market continues to grow driven by two key challenges our customers face, network capacity and network resiliency. These two factors are being amplified by the growth of AI and increasingly data intensive applications. Ceregon's capabilities, especially our eBend and innovative point-to-multipoint offerings, provide tangible solutions to address these challenges and, in our opinion, creating incremental opportunities for us and giving us durable tailwinds for future growth. Our carrier customers need to add capacity, especially as data traffic continues to grow and as they attempt to gain market share in the fixed wireless access market. AI is also playing a major role in this increased demand, predominantly for enterprise connectivity. Ceregon's advanced eBend solutions enable operators to replace or significantly augment legacy microwave deployments to increase capacity in an efficient and cost-effective way. As we noted in a recent press release, we recently completed three proof-of-concept eBend deployments with T1 operators and a leading ISP using auto-aligning antennas and e-stabilizers demonstrating our ability to boost network capacity, extend reach beyond standard event solutions, accelerate deployments and lower total cost of ownership. At the same time, operators are placing greater emphasis on network resilience. Fiber alone cannot ensure continuity. Global operators are dealing with many fiber cuts and are looking for wireless transport to ensure flexibility and redundancy and to maximize network uptime. And finally, operators are also exploring ways to support more subscribers. This includes fixed wireless access in residential areas and enterprise connectivity solutions requiring higher bandwidth. Some operators are conducting trials involving our 60 GHz technology, which provides fiber-like capacity over short distances with fast and economical deployment. Private networks face similar capacity and resiliency challenges. The use of AI, industrial automation, and advanced video security applications all demand higher bandwidth and greater reliability. Ceragon's 60 gigahertz point-to-multipoint platform addresses both requirements and is increasingly being used in smart city and enterprise environments. A notable example is the rollout of phase one of a large smart city project in Latin America, which has the potential to generate approximately seven to $8 million of recurring revenue over multiple years. Another example involves an industry leading global e-commerce company in the US that is reevaluating its video security connectivity architecture Its existing network is expensive, bandwidth limited, and dependent on public infrastructure that cannot meet its reliability and latency requirements. Ceragon's 60 gigahertz solution offers a cost-efficient, rapidly deployable and secure alternative that delivers fiber-like performance without the complexity or expense of fiber builds. We have already received an order for the initial deployment covering several dozen facilities and successful execution could pave the way for substantial expansion across hundreds of additional sites. Increasingly, Our private network achievements are end-to-end solutions. Just recently, we were awarded, as a prime contractor, two projects in the US that involve deployments of private 5G and Wi-Fi technologies to create comprehensive end-to-end solutions. On the managed services and digital twin front, yesterday we announced a contract with a major Colombian mobile operator that showcases our ability to provide end-to-end managed services in multi-vendor environments, using our network digital twin for predictive maintenance. This win underscores Ceregon's expanding capabilities in network reliability and integration, and our pipeline includes additional opportunities that can potentially increase our managed services business meaningfully. In general, Our new innovative products and services offerings, which are driven by the convergence of our core and recently acquired capabilities, open for us many new opportunities beyond traditional backward. I'm also proud of our ability to generate positive cash flow, even under top-line pressure. This underscores the resilience of our model and operational discipline. Importantly, our balance sheet remains solid, enabling us the flexibility to pursue additional potential acquisitions, supported by the continued confidence and long-term relationship with our bank consortium. Turning to a regional overview. North America again led our growth, delivering record revenue and booking of orders in the quarter, including E2E. This was primarily driven by accelerating deployments of a major T1 customer. Additionally, we see growing engagement across carriers, ISPs, and private networks. In India, revenue was flat compared with Q2. Importantly, visibility has increased as order flow from a major carrier whose purchasing activity had previously been paused has resumed. We are optimistic that this renewed activity with this carrier will continue and potentially accelerate once their debt issue is resolved. We also see other opportunities that can potentially drive significantly higher revenue than current levels in 2026. For example, we are pursuing a sizable RFP from another major carrier in India, and if successful, this could provide meaningful incremental revenue in 2026. Outside North America and India, results were generally stable and increased opportunities in NMEA and Latin America give us higher confidence for 2026, even if revenue and bookings were modestly softer for the quarter in some regions. In summary, The third quarter marked continued progress in executing our strategy with increasing opportunities in both CSPs and private networks segments. As near-term visibility has improved, we feel more confident about our $340 million revenue projection for 2025. With business volumes recovering and a mixed shift toward more active North American market, we see continued opportunity for profitability expansion. Our financial discipline combined with ongoing investment in our strategic initiatives positions us to translate future top-line growth into meaningful EPS improvement as we move into 2026. With that, I'll now turn the call over to our CFO, Ronen Stein, to review the financial results in greater details.