Rosh Ha’ain, Israel – Ceragon Networks Ltd. (NASDAQ: CRNT), the global innovator and leading solutions provider of 5G wireless transport, today reported its financial results for the first quarter ended March 31, 2023.

Q1 2023 Financial Highlights:

• Revenues of $83.4 million
• Operating income of $4.7 million on a GAAP basis, or $5.9 million on a non-GAAP basis
• EPS of $0.02 per diluted share on a GAAP basis, or $0.04 per diluted share on a non-GAAP basis

Q1 2023 Business Highlights:

• Book-to-bill above 1 on a quarterly and trailing 12-month basis
• Strong bookings in Q1, particularly in North America and India
• North America:
  • Strongest region for Q1 revenue
  • Q1 2023 bookings increased sequentially and year-over-year, reflecting less friction in the supply chain and strong demand
• India:
  • Strongest region in terms of Q1 bookings, second-strongest region in terms of Q1 revenue
  • Ongoing strong demand for ongoing 4G network and 5G network rollouts

Doron Arazi, CEO, commented: “Ceragon delivered double-digit revenue growth, margin expansion, and solid profitability in the first quarter of 2023. Our solutions are benefiting from strong demand and the supply chain is normalising both in terms of product availability and costs. The result is concrete evidence that our improved execution is delivering the intended improvements in our financial results. Importantly, we have not seen signs of a slowdown in spending, softness or pressures that others across the broader industry have reported.”

“While we are cognisant of the macro environment, the trends we are seeing across our business are encouraging,” continued Mr. Arazi. “During the first quarter we recorded bookings that exceeded our revenue, giving us greater confidence that we are in position to achieve our full-year guidance. As we move through the year and gain greater visibility into customer buying patterns, we may consider upgrading our outlook.”

Primary First Quarter 2023 Financial Results:

Revenues were $83.4 million, an increase of 18.6% compared to $70.3 million in Q1 2022 and 10.4% compared to $75.5 million in Q4 2022.

Gross profit was $28.2 million, giving us a gross margin of 33.8%, compared with a gross margin of 27.5% in Q1 2022 and 32.5% in Q4 2022.

Operating income (loss) was $4.7 million compared with $(1.3) million for Q1 2022 and $(10.6) million for Q4 2022.

Net income (loss) was $2.0 million, or $0.02 per diluted share, compared with $(2.3) million, or $(0.03) per diluted share for Q1 2022 and $(15.0) million, or $(0.18) per diluted share for Q4 2022.

Non-GAAP results were as follows: gross margin 34.0%, operating income $5.9 million, and net income of $3.6 million, or $0.04 per diluted share.

Cash and cash equivalents were $26.4 million at March 31, 2023, compared to $22.9 million at December 31, 2022.

For a reconciliation of GAAP to non-GAAP results, see the tables below.

Revenue breakout by geography:

Outlook

Management reaffirmed full year revenue guidance for $325 - $345 million, and expects full-year profitability.

2022 Annual Report on Form 20-F:

The Company also announced today the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2022, with the U.S. Securities and Exchange Commission (SEC). The annual report on Form 20-F, containing the final audited consolidated financial statements for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on May 1, 2023, is available on our website at www.ceragon.com and on the SEC’s website at www.sec.gov.

Conference Call

The Company will host a zoom web conference to discuss the 2023 first quarter as well as the final 2022 audited results today at 9 a.m. ET, followed by a question-and-answer session for the investment community. Investors are invited to register by clicking here. All relevant information will be sent upon registration.

If you are unable to join us live, a recording of the call will be available on our website at www.ceragon.com within 24 hours after the call.