In This Article:
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Annual Revenue Growth: 13.5% increase in 2024, reaching $394.2 million.
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Q4 Revenue: $106.9 million, up 18.3% from Q4 2023.
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India Revenue: $55.6 million in Q4, an all-time record for Ceragon.
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North America Revenue: $13.4 million in Q4.
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Gross Profit (Q4): $36.7 million, a 15.5% increase from Q4 2023.
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Non-GAAP Gross Margin (Q4): 34.3%, compared to 35.1% in Q4 2023.
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Operating Income (Q4): $12.2 million, up from $7.8 million in Q4 2023.
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Net Income (Q4): $7.7 million, or $0.09 per diluted share, compared to $3.7 million or $0.04 per diluted share in Q4 2023.
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Cash Position (End of 2024): $35.3 million, up from $28.2 million at the end of 2023.
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Inventory (End of 2024): $59.7 million, down from $68.8 million at the end of 2023.
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Trade Receivables (End of 2024): $149.6 million, up from $104.3 million at the end of 2023.
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2025 Revenue Outlook: Expected between $390 million to $430 million.
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2025 Non-GAAP Operating Margin Outlook: At least 10%.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ceragon Networks Ltd (NASDAQ:CRNT) achieved record operating profit and the highest revenue levels since 2012.
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The company grew its annual revenue by more than 13% in 2024, outperforming the wireless transport market, which declined by over 10%.
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Ceragon Networks Ltd (NASDAQ:CRNT) increased its bookings from private networks by more than 50% and secured additional recurring revenue from managed services.
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The introduction of the IP-50 EX product has enabled significant new business and market share gains in India.
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The company has a strong cash position, with a net positive cash position of $10.1 million at the end of 2024, compared to a negative net cash position at the end of 2023.
Negative Points
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Ceragon Networks Ltd (NASDAQ:CRNT) faces low visibility for 2025, with potential impacts from the CSP market's softness.
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The company's gross margin decreased slightly to 34.3% in Q4 2024 from 35.1% in Q4 2023.
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There is a risk of project shifts in the private network market, impacting revenue visibility until a critical mass of projects is reached.
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The company is experiencing fluctuations in gross margins due to changes in regional revenue mix and volumes.
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Ceragon Networks Ltd (NASDAQ:CRNT) is not immune to global market trends, which could affect its performance despite recent successes.
Q & A Highlights
Q: Can you outline the role of the end-to-end acquisition in the energy industry and the types of customer relationships it brings to Ceragon? A: Doron Arazi, CEO: The end-to-end acquisition is a well-known system integrator in North America, primarily within the energy and utilities domain. They have a strong reputation and a robust portfolio of customers, including prominent industry players. Their relationships are strong, and they provide software that helps manage networks post-deployment. This acquisition enhances our understanding of private network needs and strengthens our position in the energy and utilities space.