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Ceragon Networks Ltd. CRNT shares have witnessed a sharp decline of 28% in the past month, underperforming the Wireless-Non U.S. industry’s decrease of 0.5%.
Peers like Ciena Corporation CIEN, Extreme Networks, Inc. EXTR and Cisco Systems CSCO have also registered declines of 26%, 12.6% and 6.8%, respectively, over the same time frame.
Price Performance
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Shares have been southbound since the company announced results on Feb. 11. While the company achieved record quarterly revenues in India, it highlighted a slowdown in the Communications Service Provider (“CSP”) business. CRNT’s commentary surrounding the increased forex volatility may have sparked investors’ concerns. Rising geopolitical tensions, and volatile macroeconomic backdrop remain additional concerns.
Investors are now likely contemplating whether to maintain their positions or make an exit. Let’s discuss the pros and cons of CRNT and ascertain the best course of action for your portfolio.
CRNT’s Tailwinds
Healthy demand for its solutions in India is a big plus. Revenues from India were $55.6 million, accounting for nearly half of the overall revenues in the fourth quarter of 2024. This growth reflects Ceragon's solid position in the Indian telecommunications market, which is expanding rapidly as it upgrades to 4G and 5G infrastructure. Visibility in the region is improving as commercial terms for 2025 are being finalized with two major customers. Demand for high-capacity wireless products, particularly microwave and E-Band solutions, is expected to rise significantly in 2025 in India.
Ceragon is making significant strides in capturing market share in high-growth areas such as millimeter-wave products and private networks. CRNT announced the launch of its latest innovative products — IP-100E, IP-50GP and EtherHaul 8020FX — at the Mobile World Congress (MWC) 2025.
The newly introduced IP-100E is a cutting-edge, dual-carrier E-band solution powered by Ceragon's proprietary system-on-a-chip. This groundbreaking technology delivers an impressive 25 Gbps from a single unit and up to 40 Gbps in a 4+0 all-outdoor link, making it a game-changer in high-speed connectivity.
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It is also focused on driving recurring revenues. In the last reported quarter, Ceragon secured $7 million in annual recurring revenue from managed services. This move toward managed services and software-based business models positions Ceragon for steady, ongoing revenue growth.
The company is diversifying its business into private network business. It reported a 50% increase in bookings from private networks in 2024. CRNT’s recent acquisitions of Siklu and End 2 End Technologies, LLC are expected to boost the competitive edge in the private network business. End 2 End Technologies is a leading systems integration and software development company in the United States, while Siklu provides “multi-gigabit wireless fiber” connectivity in urban, suburban and rural areas of North America.