Ceragon Networks Ltd. (NASDAQ:CRNT) Q2 2019 Earnings Conference Call - Final Transcript

Aug 12, 2019 • 09:00 am ET


Ceragon Networks Ltd. (NASDAQ:CRNT) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, everyone. Welcome to Ceragon Networks Limited Second Quarter 2019 Results Conference Call. Today's call is being recorded and will be hosted by Mr. Ira Palti, President and CEO of Ceragon Networks.

Today's call will include statements concerning Ceragon's future prospects that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Ceragon's management. For examples of forward-looking statements, please refer to the forward-looking statements paragraph in our press release that was published earlier today.

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks relating to the concentration of a significant portion of Ceragon's expected businesses in certain geographic regions, and in particularly, in India, where a small number of customers are expect to represent a significant portion of our revenues, including the risks of deviations from our expectations of timing and size of orders from these customers.

The risk that the current slowdown in revenue from India could extend for a longer period than anticipated, risks associated with any failure to effectively compete with other wireless equipment providers, the risk that we roll out of 5G services could take longer than anticipated, and other risks and uncertainties detailed from time to time on Ceragon's Annual Report on Form 20-F and Ceragon's other filings with the Securities and Exchange Commission that represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date.

We do not assume any obligation to update any forward-looking statements. Ceragon's public filings are available from the Securities and Exchange Commission's website at www.sec.gov or may be obtained from Ceragon's website at www.ceragon.com. Also today's call will include certain non-GAAP numbers. For a 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 Mr. Ira Palti, President and CEO of Ceragon. Please go ahead, sir.

Ira Palti

Thank you for joining us today. With me on the call is Ran Vered, our Chief Financial Officer. Our second quarter results were consistent with our revised expectations, as indicated in our July 2nd press release. Actual Q2 revenue was toward the upper-end of the range we gave at $73 million, with a small GAAP profit of $0.01 a share or $0.03 on a non-GAAP basis.

Taking a broader look at the entire half of 2019, both the positive factors and the negative factors had more impact than we expected at the beginning of the year. Let's look at the good news first. Aside from India, revenue from all regions of the world showed improvement over the first half of 2018. The improvement was led by Africa, North America and Latin America, which were each up substantially year-over-year.

Europe, North America, Latin America and APAC also grew in the first six