Ceragon Networks Ltd (CRNT) 2024 Q3 法說會逐字稿

We expect more orders from this customer in the coming quarters for our microwave as well as our event solutions.

我們預計在未來幾個季度，該客戶將收到更多關於我們的微波爐以及活動解決方案的訂單。

Since participating in the India Mobile Congress, we are encouraged by the increasing level of traction we are receiving in India and see large opportunities for 2025.

自從參加印度移動大會以來，我們在印度受到越來越多的關注，這讓我們深受鼓舞，並看到了 2025 年的巨大機會。

We believe that we will see much higher demand for even products in 2025. And our IP-50EX advanced provides capabilities that fit the specific needs of the Indian market. So, we are very well positioned to capitalize on incremental growth opportunities.

我們相信，到 2025 年，我們將看到對均勻產品的更高需求。我們的 IP-50EX 進階功能可滿足印度市場的特定需求。因此，我們處於充分利用增量成長機會的有利位置。

Since there are multiple discussions about the general business environment, I would like to share with you our observations. Indeed, we have seen a slowdown in certain public network domains outside of India.

由於關於整體商業環境的討論有很多，我想與大家分享我們的觀察。事實上，我們已經看到印度以外的某些公共網路域的速度放緩。

We believe this is primarily driven by the global economy and the level of demand for 5G by network users. In addition, in Latin America, Africa and some countries in Asia PAC Chinese competition is very fierce in these regions, driving business softness there in this in these regions, we are increasing our focus on the private network segment where there is lower Chinese presence.

我們認為這主要是由全球經濟和網路用戶對 5G 的需求水準所推動的。此外，在拉丁美洲、非洲和亞太地區的一些國家，中國在這些地區的競爭非常激烈，導致這些地區的業務疲軟，我們正在加大對中國業務較少的專用網路領域的關注。

We also see an interesting opportunity in the current market conditions. As multiple service providers are now focusing on fixed subscriber growth and using wireless technology with 5G high frequencies.

我們還在當前的市場狀況中看到了一個有趣的機會。由於多家服務供應商現在專注於固定用戶成長並使用 5G 高頻無線技術。

We are in multiple discussions with large operators exploring opportunities to leverage Ceragon point to multi point technology to address this increasing need in other frequencies.

我們正在與大型營運商進行多次討論，探索利用 Ceragon 點對多點技術來滿足其他頻率日益增長的需求的機會。

With that, I'll turn the call over to Ronen Stein, Our CFO to discuss the results in more detail.

接下來，我會將電話轉給我們的財務長 Ronen Stein，以便更詳細地討論結果。

One over to you.

一份給你。

Thank you Doron and good morning everyone.

謝謝多倫，大家早安。

Doron spoke to our revenue diversification, an important strategic point. And he also mentioned our ability to extract operating leverage from our business model.

多倫談到了我們的收入多元化，這是一個重要的策略點。他也提到了我們從業務模式中提取營運槓桿的能力。

I'd like to highlight the operating diverge as we drove increasing operating income even with modest gross margin compression to help you understand the results, I will be referring primarily to Non-GAAP Financials for more information regarding our use of Non-GAAP Financial measures including reconciliations of these measures we refer you to today's press release.

我想強調一下經營差異，因為我們在毛利率適度壓縮的情況下推動了營業收入的增加，以幫助您理解結果，我將主要參考非公認會計原則財務，以獲取有關我們使用非公認會計原則財務指標的更多資訊包括這些措施的協調，我們建議您參閱今天的新聞稿。

Let me now review the actual results.

現在讓我回顧一下實際結果。

Revenues were $102.7 million up 17.7% from $87.3 million. In Q3, 2023 our strongest regions in terms of revenues for the quota were India and North America with EUR55 million and 24.5 million respectively.

營收為 1.027 億美元，比 8,730 萬美元成長 17.7%。2023 年第三季度，我們配額收入最強的地區是印度和北美，分別為 5,500 萬歐元和 2,450 萬歐元。

Our third strongest region in terms of revenues was in May with $14.9 million we had three customers in the third quarter that contributed more than 10% of our revenues gross profit for the third quarter on Non-GAAP basis was 35.2 million.

就收入而言，我們第三強的地區是 5 月份，達到 1,490 萬美元，第三季我們有三個客戶，貢獻了我們收入的 10% 以上，第三季非 GAAP 毛利為 3,520 萬美元。

An increase of 15.9% compared to $30.4 million in Q3, 2023. Our Non-GAAP gross margin was 34.3% compared with the grows margin of 34.9% in Q3 2023 we continue to achieve high growth margins. Despite the change in regional revenue mix, we achieved this by increasing revenues and recognizing continued improvement in product costs.

與 2023 年第三季的 3,040 萬美元相比成長 15.9%。我們的非 GAAP 毛利率為 34.3%，而 2023 年第三季的成長率為 34.9%，我們繼續實現高利潤率成長。儘管地區收入結構發生了變化，但我們透過增加收入和認識到產品成本的持續改善來實現這一目標。

We also maintain control over our fixed costs, all of which had a positive effect.

我們也保持對固定成本的控制，所有這些都產生了積極的影響。

Our gross margins may continue to fluctuate from quarter to quarter due to changes in product and regional mix.

由於產品和區域組合的變化，我們的毛利率可能會繼續逐季度波動。

As for our operating expenses in general, operating expenses in 2024 fully include the impact of the c acquisition at the end of 2023 and thus impact the comparison to 2023 operating expenses, research and development expenses for the third quarter on Non-GAAP basis were EUR8.6 million up from EUR7.3 million in Q3, 2023 as a percentage of revenue. Our R&D expenses were 8.4% in the third quarter compared to 8.3 in the third quarter. Last year, sales and marketing expenses for the third quarter on an on GAAP basis were $10.4 million. Up from $9.7 million in Q3, 2023 as a percentage of revenue sales and marketing expenses were 10.1% in the third quarter compared to 11.1% in the third quarter. Last year.

至於我們的整體營運費用，2024 年的營運費用完全包括 2023 年底收購 c 的影響，從而影響與 2023 年營運費用的比較，按非公認會計準則計算，第三季的研發費用為 8 歐元佔收入的百分比較2023 年第三季的730 萬歐元增加了60 萬歐元。第三季我們的研發費用為 8.4%，第三季為 8.3%。去年，以 GAAP 計算，第三季的銷售和行銷費用為 1,040 萬美元。2023 年第三季銷售和行銷費用佔收入的百分比為 10.1%，高於第三季的 970 萬美元，而第三季為 11.1%。去年。

General and administrative expenses for the third quarter on a longer basis were $0.4 million compared to $5.5 million in Q3, 2023 as a percentage of revenues G&A expenses were less than 1% in the third quarter compared to 6.2% in the third quarter last year.

長期來看，第三季的一般和行政費用為40 萬美元，而2023 年第三季的一般和行政費用佔收入的比例為550 萬美元。到1%，而去年第三季為6.2%。

The main reason for the reduction in G&A is the impact of approximately $5.1 million benefit related to payments on account of a debt settlement agreement reached with a South American customer for which we accounted the credit loss at the end of 2022.

G&A 減少的主要原因是與南美客戶達成的債務和解協議付款相關的約 510 萬美元收益的影響，我們在 2022 年底對此計入了信用損失。

This payment reduced our G&A expenses in the quarter.

這筆付款減少了我們本季的一般管理費用。

I would note that Ceragon has been successfully integrated in the first half of 2024. And therefore we have not recorded any integration costs related to Ceragon in our GAAP operating expenses.

我要指出的是，Cerragon 已於 2024 年上半年成功整合。因此，我們沒有在我們的 GAAP 營運費用中記錄與 Ceragon 相關的任何整合成本。

Operating income for the third quarter on Non-GAAP basis was $15.8 million compared with $8 million for Q3 2023 as a percentage of revenues Non-GAAP operating income was 15.4% in the third quarter compared to 9.2% in the third quarter. Last year.

以非公認會計原則計算，第三季營業收入為1,580 萬美元，而2023 年第三季為800 萬美元。三季為9.2%。去年。

Without the approximately $5.1 million debt collection benefit included in the G&A non-GAAP operating income would be $10.8 million.

如果沒有 G&A 中包含的約 510 萬美元的債務追收收益，非 GAAP 營業收入將為 1,080 萬美元。

And as a percentage of revenues, 10.5% financial and other expenses for the third quarter on Non-GAAP basis were $1.2 million positively impacted from favorable foreign exchange changes and to a lesser extent reduction in interest expenses as we continue to strengthen our balance sheet.

以非公認會計準則計算，第三季財務和其他費用佔收入的百分比為10.5%，為120 萬美元，這受到有利的外匯變化以及隨著我們繼續加強資產負債表而減少的利息費用的積極影響。

Our tax expenses for the third quarter on Non-GAAP basis were $0.6 million net income for the third quarter. On Non-GAAP basis was 14.1 million or $0.16 per diluted share compared to $5 million or $0.06 per diluted share for Q3, 2023.

以非公認會計準則計算，我們第三季的稅費為第三季淨利 60 萬美元。以非公認會計準則計算，2023 年第三季的淨利潤為 1,410 萬美元，即稀釋後每股 0.16 美元，而 2023 年第三季為 500 萬美元，即稀釋後每股 0.06 美元。

Without the approximately $5.1 million benefit related to the debt collection included in the G&A non-GAAP net income would be $9 million or $0.10.

如果沒有包含在 G&A 非 GAAP 中的與債務追收相關的約 510 萬美元收益，則非 GAAP 淨收入將為 900 萬美元或 0.10 美元。

But they look at you as for balance sheet, our cash position at the end of the third quarter was $34 million compared to $28.2 million at the end of 2023 short term loans were 25.2 million compared to $32.6 million as of December 31st 2023.

但他們看看資產負債表，我們第三季末的現金部位為3,400 萬美元，而2023 年末的現金部位為2,820 萬美元，短期貸款為2,520 萬美元，而截至2023 年12 月31 日的現金部位為3260 萬美元。

Therefore, we shifted to net positive cash of $8.8 million compared to a negative net cash position of $4.4 million. At December 31st, 2023, we generated significant cash in the portal and continued to reduce our debt. As a result.

因此，我們轉向淨正現金 880 萬美元，而淨現金部位為負 440 萬美元。截至 2023 年 12 月 31 日，我們在門戶網站中產生了大量現金，並繼續減少債務。因此。

We believe we have cash and facilities that are sufficient for our operations and working capital needs our inventory. At the end of Q3, 2024 was $59.8 million down from EUR68.8 million. At the end of December 2023.

我們相信我們擁有足夠的現金和設施來維持我們的運營，而營運資金需要我們的庫存。截至 2024 年第三季末，銷售額為 5,980 萬美元，低於 6,880 萬歐元。2023 年 12 月底。

The reduction is mainly related to our continued efforts since 2023 to streamline inventory levels. Following the improvement in components availability and substantial shipments to India.

這項減少主要與我們自 2023 年以來持續努力精簡庫存水準有關。隨著零件可用性的改善以及對印度的大量出貨。

We continue to monitor inventory levels taking into consideration the improvements in the availability of components and expected changes in demand.

我們將繼續監控庫存水平，同時考慮組件可用性的改善和預期的需求變化。

Our trade receivables at the end of Q3, 2024 are $121.6 million as compared to $104.3 million. At the end of December 2023 our DSO now stands at 118 days as for cash flow net cash flow generated by operations and investing activities in the third quarter of 2024 was $10.7 million.

截至 2024 年第三季末，我們的貿易應收帳款為 1.216 億美元，而去年同期為 1.043 億美元。截至 2023 年 12 月底，我們的 DSO 目前為 118 天，而 2024 年第三季營運和投資活動產生的現金流量淨現金流量為 1,070 萬美元。

We are reiterating the mid point of our full year outlook for 2024. We expect revenues of $390 million to $400 million representing growth of 12% to 15% compared to 22-23.

我們重申 2024 年全年展望的中點。我們預計營收將達到 3.9 億至 4 億美元，較 22-23 年成長 12% 至 15%。

This guidance includes the contribution from Ceragon you will note that we have narrowed the expected range, increasing the bottom end of the range by $5 million and decreasing the top end by a similar amount leaving the midpoint unchanged.

本指南包括 Ceragon 的貢獻，您會注意到我們縮小了預期範圍，將範圍的下限增加了 500 萬美元，並將上限減少了類似的金額，而中點不變。

This reflects our visibility with just two months left in the year.

這反映了我們在今年僅剩兩個月的情況下的能見度。

Non-GAAP operating margins are targeted to be at least 10% at the midpoint of the revenue guidance. As a result, we expect increased Non-GAAP profit representing another record year and positive free cash flow for the full year of 2024.

非 GAAP 營運利潤率目標為收入指導中位數至少 10%。因此，我們預期非 GAAP 利潤將再創歷史新高，2024 年全年自由現金流將達到正值。

With that, I now open the call for your questions, operator.

話務員，我現在開始詢問您的問題。

Thank you to ask a question. Please raise your hand using your mobile or desktop application or press star nine on your telephone keypad and wait for your name to be called.

謝謝你提出問題。請使用您的行動裝置或桌面應用程式舉手，或按電話鍵盤上的星九，然後等待叫到您的名字。

Our first call. A question comes from Scott W Searle from Roth Capital. Scott. Please go ahead.

我們的第一通電話。Roth Capital 的 Scott W Searle 提出了一個問題。斯科特.請繼續。

Hey, good morning, good afternoon. Thanks for taking my questions. Doron, Ronen congrats on the quarter. Nice job. Hey, maybe to just start off on India a record quarter. Doron. I'm wondering if you could talk a little bit about how the outlook is shaping up for India as you look into the fourth quarter. And I know it's a little bit early but your maybe initial thoughts on 2025 in terms of the sustainability of that kind of strength. You know, particularly, it sounds like, you know, you've got that, that third major customer starting to ramp up.

嘿嘿，早安，下午好。感謝您回答我的問題。多倫、羅南祝賀這個季度。幹得好。嘿，也許是印度創紀錄的季度開始。多倫.我想知道您是否可以談談印度第四季的前景如何。我知道現在還為時過早，但您對 2025 年這種實力的可持續性的初步想法可能是這樣。你知道，特別是，聽起來，你知道，你已經明白了，第三個主要客戶開始增加。

Yeah, so I think that we are very well positioned for another strong year in India for a few reasons. First of all, we are able to diverse our business between three customers or three major customers. And obviously we continue to speak with other customers.

是的，所以我認為我們處於有利位置，可以在印度迎來另一個強勁的一年，原因有幾個。首先，我們能夠在三個客戶或三個主要客戶之間實現業務多元化。顯然我們會繼續與其他客戶交談。

And on top of that, the situation in India nowadays is that while maybe on the classical 5G mobility part, they don't see it a very strong ROI and most of the customers, at least we are working with are focusing on, first of all, enhancing their network to 4G and are looking for more use cases that can help them generate more revenue primarily in the fixed wireless domain. And that requires a more capacity capabilities. And this is why we believe that 2025 can be another strong year for us.

最重要的是，印度現在的情況是，雖然可能在經典的 5G 行動部分，但他們並沒有看到非常強勁的投資回報率，而且大多數客戶（至少我們正在合作的客戶）首先關注的是所有這些公司都將網路增強至4G，並正在尋找更多用例，以幫助他們主要在固定無線領域創造更多收入。而這需要更多的容量能力。這就是為什麼我們相信 2025 年對我們來說又會是個強勁的一年。

And we are obviously are talking with all these customers and getting some initial indications and it looks like indeed they plan to continue investing based on the strategy that I was just trying to describe in like two sentences.

顯然，我們正在與所有這些客戶進行交談並獲得一些初步跡象，看起來他們確實計劃根據我剛剛試圖用兩句話描述的策略繼續投資。

So Dorno just to follow up. So in terms of higher capacity, that means more EBA, which you guys are pretty well positioned for.

於是多諾就跟進去了。因此，就更高的容量而言，這意味著更多的 EBA，而你們已經做好了充分的準備。

Yeah. So, to be more precise at this point, the vast majority of our business is in the microwave that is helping them to enhance their network to 4G and obviously to cover some uncovered areas. What we see now is that demand for E is increasing. And we believe that on the second part of 2025 we will see more deployment of event.

是的。因此，更準確地說，我們的絕大多數業務都在微波爐中，幫助他們將網路增強到 4G，顯然是為了覆蓋一些未覆蓋的區域。我們現在看到的是，對電子的需求正在增加。我們相信，在 2025 年下半年，我們將看到更多的活動部署。

Great, very helpful. Maybe moving on to the private network side, it seems like demand there continues to be pretty strong. I wonder if you could talk about from a vertical market standpoint where you're seeing some of that demand and if you could clarify a little bit, it sounds like Ceragon you might be taking it from V band to other frequencies. I just wanted to clarify that. You know, when you know, with your, your opening remarks, I was thinking more, you know, in the, you know, 28 to 39 gig ranges is kind of what you're talking about. I was wondering if you could provide any clarity on that front.

太棒了，非常有幫助。也許轉向專用網路方面，那裡的需求似乎仍然相當強勁。我想知道您是否可以從垂直市場的角度來談談您看到的一些需求，如果您可以澄清一下，聽起來 Ceragon 您可能會將其從 V 頻段轉移到其他頻率。我只是想澄清這一點。你知道，當你知道，在你的開場白中，我想到了更多，你知道，28 到 39 場演出的範圍就是你所說的。我想知道您能否在這方面提供任何澄清。

Yeah, so let's start with the, with the second question. So as I explained in my prepared remarks and also just right now to the previous question, we see a trend in, I would say many operators T one operators around the world of the trial to leverage these high frequencies towards fixed wireless access. It looks like at this point mobility using these high frequencies is not that of a viable solution. And many operators are trying to divert the usage of this these frequencies into helping them with fixed wireless offering. Now. And if you look at the solutions that are in the market nowadays, the 5G standard solutions are very expensive and it still or it doesn't work at least for some of the operators. And it doesn't make a reasonable ROI for them to go for, for the standard 5G, maybe this will change down the road. But at this point, many of the operators are looking for solutions at these frequencies that are not necessarily 5G standard. And by that reducing the cost dramatically, we believe that the technology that was developed by Ceragon for the V band point to multi point could be so to speak, converted into solutions at the 26 to 39 or 28 to 39 frequencies. And as we speak, we are actually in multiple discussions with different operators to see whether this could be a viable solution for them. Now, as to as to your first question about the private networks, look, we are focusing on, I would say four main segments that we believe are I would say less agnostic to technology.

是的，讓我們從第二個問題開始。因此，正如我在準備好的演講中以及現在對上一個問題所解釋的那樣，我們看到了一種趨勢，我想說的是，世界各地的許多運營商都在試驗中利用這些高頻進行固定無線接入。目前看來，使用這些高頻的移動性並不是一個可行的解決方案。許多業者正試圖將這些頻率的使用轉移到幫助他們提供固定無線服務。現在。如果你看看現在市場上的解決方案，你會發現 5G 標準解決方案非常昂貴，至少對某些運營商仍然有效或不起作用。對他們來說，這並不能帶來合理的投資報酬率，對於標準 5G 來說，也許這種情況會在未來發生變化。但目前，許多業者正在尋找這些不一定是 5G 標準的頻率的解決方案。透過大幅降低成本，我們相信 Ceragon 為 V 頻段點對多點開發的技術可以轉化為 26 至 39 或 28 至 39 頻率的解決方案。正如我們所說，我們實際上正在與不同的運營商進行多次討論，看看這是否對他們來說是一個可行的解決方案。現在，至於你關於專用網路的第一個問題，我們正在重點關注，我想說的是，我們認為這四個主要部分對技術不太不可知。

And at the same token, the demand for more capacity for enhanced private networks is critical one is defense. The second one is generally speaking, private, public safety.

同樣，對於增強型專用網路的更多容量的需求至關重要，其中之一就是防禦。第二個是一般來說，是私人、公共安全。

And third one is energy and the last one is government and state solutions that needs a private networks. We feel that there is a demand in all of these in all of these segments that is strong enough for each and everyone. There is a reason why it is strong, but generally speaking, these are the main focus areas for us.

第三個是能源，最後一個是需要專用網路的政府和國家解決方案。我們認為，所有這些細分市場中的所有這些需求對每個人來說都足夠強大。它之所以強大是有原因的，但總的來說，這些是我們主要關注的領域。

And lastly, if I could the guidance on the year, you know, kind of extrapolating that into the fourth quarter implies flattish to up 10%. I'm wondering if you could just give us some thoughts in terms of what the swing factors are to either end of that range. And lastly, use of the cash, you're in a luxury position now of generating a fair amount of cash. How are you thinking about redeploying that? Thanks.

最後，如果我能根據今年的指導，你知道，可以推斷到第四季度意味著成長將持平至 10%。我想知道您是否可以給我們一些關於該範圍兩端的波動因素的想法。最後，關於現金的使用，你現在處於一個可以產生大量現金的奢侈位置。您如何考慮重新部署？謝謝。

So, I will start by saying that and the fourth quarter is that primarily the focus, the revenue results is primarily dependent on delivery, which means to what extent our customers will stick to the plan to basically accept our products. Sometimes they have their own decisions that are driven by end year on their side and there could be some fluctuations. We had a similar situation in the past. So we are very careful, but I would say that we have the backlog, we have the orders and it's more about the timing of delivery that can make the numbers either on the high end or on the low end of the range in terms of accumulating cash.

所以，我首先要說的是，第四季是主要的焦點，收入結果主要取決於交付，這意味著我們的客戶會堅持到什麼程度，基本上接受我們的產品。有時他們有自己的決定，這些決定是由他們自己決定的，並且可能會有一些波動。我們過去也有類似的情況。所以我們非常小心，但我想說的是，我們有積壓，我們有訂單，更多的是關於交貨時間，這可以使數字在積累方面處於範圍的高端或低端現金。

Look, first of all, if we continue with this growth, obviously, the need for more working capital is taken into account. Secondly, let's not forget we are still leveraged by certain dollar value of loans. And with the interest that we have today, this is a burden and that if we can reduce it to the minimum possible, we can just create additional few cents on an annual basis to our shareholders and improve our improve our results.

首先，如果我們繼續這種成長，顯然需要更多的營運資金。其次，我們不要忘記，我們仍然受到一定美元價值的貸款的槓桿作用。就我們今天的利益而言，這是一種負擔，如果我們能夠將其減少到盡可能低的水平，我們每年就可以為我們的股東創造額外的幾美分，並改善我們的業績。

Obviously, we continue to look into acquisition opportunities and obviously we are talking about small opportunities and if we find a a right match, like the SLU case that is proven to be quite successful and we will explore that kind of acquisition seriously and we use the cash to, to make this kind of acquisitions.

顯然，我們會繼續尋找收購機會，顯然我們談論的是小機會，如果我們找到合適的匹配，例如被證明非常成功的 SLU 案例，我們將認真探索這種收購，我們會使用現金進行此類收購。

Great, Doron, Ronen. Thanks so much, great job on the quarter and look forward to seeing you guys next week in Newyork.

太棒了，多倫，羅南。非常感謝，本季做得很好，期待下週在紐約見到你們。

Thank you so much.

太感謝了。

Thank you.

謝謝。

Our next question is from [Ryan Koons from Needham and Company] Ryan. Please go ahead.

我們的下一個問題來自 [Ryan來自尼達姆公司的昆斯]瑞安。請繼續。

Hi, can you hear me? Okay.

嗨，你聽得到我說話嗎？好的。

Yes. Hi Ron.

是的。嗨羅恩。

Right. Great. Thanks for the question. I wanted to follow up on your private network. Opportunity there. Can you speak a little more about the channel? How that may be different? What sorts of channels you're maybe lighting up to access these new markets? I assume primarily in North America and whether these channels will have any impact on your cost of sales as it relates to your model, as you grow, the private networks business. Thank you.

正確的。偉大的。謝謝你的提問。我想跟進你的私人網絡。那裡有機會。能多談談該頻道嗎？這有何不同？您可能會透過哪些管道來進入這些新市場？我假設主要在北美，這些管道是否會對您的銷售成本產生任何影響，因為它與您的模型有關，隨著您的私人網路業務的發展。謝謝。

Sure. So, first of all, our go to market strategy is primarily based on the sales people who are basically chasing direct deals.

當然。因此，首先，我們的市場策略主要基於那些基本上追求直接交易的銷售人員。

And so this is one part of it. And generally speaking, we have already made this shift and added the the firepower in terms of sales people that we thought is needed in 2024. So this is already part of our sales and marketing we do use and we intend to maybe even use more some business development consultants to help us with the penetration. I don't think it's going to change dramatically the sales and marketing expenses. And obviously, there's a multiple deals that are by far much smaller and we have a very strong indirect business in North America, but also outside North America with a very valuable distributors. And these are I would say additional stream or vector to approach the market specifically for the smaller deals.

這就是其中的一部分。總的來說，我們已經做出了這一轉變，並增加了我們認為 2024 年所需的銷售人員火力。因此，這已經是我們使用的銷售和行銷的一部分，我們甚至打算使用更多的業務開發顧問來幫助我們滲透。我認為這不會顯著改變銷售和行銷費用。顯然，有多項交易規模要小得多，我們在北美擁有非常強大的間接業務，而且在北美以外也擁有非常有價值的分銷商。我想說的是，這些是專門針對較小交易進入市場的額外流或向量。

Got it that's really helpful. And you know, for these larger deals that you're direct on, you know, what's the kind of range of the size of deals you think that you typically are pursuing direct there.

明白了，這真的很有幫助。你知道，對於你直接參與的這些較大的交易，你知道，你認為你通常直接在那裡追求的交易規模範圍是多少。

Usually it will be a few million dollars deal.

通常這將是幾百萬美元的交易。

It can start small and develop. We've seen this kind of a situation where you start with a couple of hundreds of thousands of dollars and then you expand. And we have also seen situations where you win an RFP for a few million dollars and then there's a change requests and additions and suddenly numbers could be higher by 50% and even more. But the typical deal would probably be low end, single, a digit of million dollars.

它可以從小處開始並不斷發展。我們見過這種情況，你從幾十萬美元開始，然後擴張。我們也看到過這樣的情況：您以數百萬美元贏得了 RFP，然後提出了變更請求和添加內容，突然數字可能會高出 50% 甚至更多。但典型的交易可能是低端的、單一的、數百萬美元。

Okay. That's super helpful. And maybe a follow if I could around gross margins and your internal silicon development, there any puts or takes we should think about as we model forward into 25 in terms of your fab costs or you know, [fpgas], et cetera.

好的。這非常有幫助。如果我可以圍繞毛利率和您的內部晶片開發進行跟踪，當我們根據您的晶圓廠成本或您知道的 [fpgas] 等將模型推向 25 時，我們應該考慮任何看跌或看跌。

So at this point, I don't think that it will make a big change to our gross margin in 2025.

所以目前來看，我認為這不會對 2025 年我們的毛利率產生重大變化。

I think that in 2025 the volume of selling this product based on the demand that we see for 25 gig product is not going to be that high. I believe that towards the second part of the year, we start seeing a more significant ramp up of orders. So all in all, I don't think we at this point need to model any significant change in gross margins.

我認為，到 2025 年，根據我們對 25 場產品的需求來看，該產品的銷售量不會那麼高。我相信，到今年下半年，我們開始看到訂單有更顯著的增加。總而言之，我認為我們目前不需要對毛利率的任何重大變化進行建模。

That's fair. Great. That's all the questions I had. Thanks for that.

這很公平。偉大的。這就是我的所有問題。謝謝你。

Thank you so much.

太感謝了。

Our next question comes from Romel Bonzo from Asia's capital.

我們的下一個問題來自亞洲首都的羅梅爾邦佐 (Romel Bonzo)。

Please go ahead.

請繼續。

Thanks. Can you hear me,

謝謝。你聽得到我嗎，

Yes. Hi, Roman. How are you?

是的。嗨，羅曼。你好嗎？

Great. Thank you very much, Don. Now, you know, over the last few years you've targeted, you know, growth in managed services and private networks and really, you know, seen, seen a great job as a result of your efforts. As I mean, increasingly hearing from you, I think from our recent conversations, the potential that you see in millimeter wave and obviously with the new products, I know the IP 100 is coming. I wonder though if you could just give us a kind of a longer term, you know, outlook that you have for that business and then how you plan to target that, whether it's the port product portfolio, the opportunity that you see in millimeter wave here over the next several years of growth in that segment of the market. I wonder if you could just give us a little more of your thoughts on that, please.

偉大的。非常感謝你，唐。現在，您知道，在過去的幾年裡，您的目標是託管服務和專用網路的成長，並且您知道，您看到了由於您的努力而取得的出色工作。正如我的意思，越來越多地收到您的來信，我認為從我們最近的談話中，您看到了毫米波以及新產品的潛力，我知道 IP 100 即將到來。我想知道您是否可以給我們一個更長期的前景，您知道，您對該業務的展望，然後您計劃如何實現這一目標，無論是端口產品組合，還是您在毫米波中看到的機會幾年該細分市場的成長。我想知道您是否可以就此向我們提供更多的想法。

Yeah, if you look at, if you look at the analyst reports that are covering our space, they project the double digit growth for the millimeter wave while the total market is not going to grow that much, it's more of a low single digit. And this is why we're putting so much focus on millimeter wave.

是的，如果你看一下涵蓋我們領域的分析師報告，他們預計毫米波將實現兩位數成長，而整個市場不會成長那麼多，而是一個較低的個位數。這就是我們如此關注毫米波的原因。

And I think that with the most recent IP-50 EX, with its different versions that are meant to cover different use cases together with the 100 E that will be very compelling in terms of capacity versus total cost of ownership. We can probably accelerate our growth in this particular part of the market and take a bigger market share. And by that, we can probably outpace the low single digit growth that is expected for the market as a whole. So that's the strategy behind the focusing so much on milli winter wave products and solutions.

我認為最新的 IP-50 EX 及其旨在涵蓋不同用例的不同版本以及 100 E 在容量與總擁有成本方面將非常引人注目。我們或許可以加速這一特定市場的成長並佔據更大的市場份額。這樣，我們的成長速度就可能超過整個市場預期的低個位數成長。這就是如此專注於毫冬浪潮產品和解決方案背後的策略。

And how should we think about the long term margin opportunity? Also from that, that business is that theoretically grows as a percentage of your total revenues over time.

我們該如何考慮長期利潤機會？此外，從理論上講，該業務佔總收入的百分比會隨著時間的推移而增長。

Look that obviously depends on the competition at this point. I believe that our IP-50 EX series and the upcoming 100E will put us in a position where we can increase our gross margins slightly relative to the current margins we have seen.

看，這顯然取決於此時的競爭。我相信我們的 IP-50 EX 系列和即將推出的 100E 將使我們能夠相對於目前的利潤率略有提高。

And obviously, if the competition catches up, it's always something that we are taking into account.

顯然，如果競爭對手迎頭趕上，我們始終會考慮這一點。

It doesn't change the range that we said a few times recently that our long term objectives is to still be in between the 35% to 38% gross margin. And the fluctuation will probably be primarily due to the region regional mix as we have seen, for example in this last quarter.

這並沒有改變我們最近多次說過的範圍，我們的長期目標仍然是在 35% 到 38% 的毛利率之間。正如我們所看到的，例如上個季度，波動可能主要是由於區域組合造成的。

Great. That's very helpful. Thank you, Doron.

偉大的。這非常有幫助。謝謝你，多倫。

Sure.

當然。

Our next question comes from Robert Marcin from TV, partners, Robert. Please go ahead.

我們的下一個問題來自電視合作夥伴羅伯特·羅伯特·馬辛。請繼續。

Congratulations on an excellent quarter drone, especially considering how challenging the end markets have been.

恭喜您獲得了一款出色的四分之一無人機，特別是考慮到終端市場的挑戰有多大。

Thank you so much, Robert.

非常感謝你，羅伯特。

Let's talk about this SLU opportunity and fixed wireless and I know it's very early and you're still testing the technology. But if some tier one operators around the globe really want to penetrate, you know a fixed wireless approach for incremental broadband, I guess, you know, I guess someone's doing it here in the US with as you said, very expensive cellular 5G technology, a pink company, let's say, how big could that be over a five year period? Is that a $50 million opportunity or would that be a $500 million opportunity? Can you give us some sense of if this thing sort of takes off? How big could it be?

讓我們來談談這個 SLU 機會和固定無線，我知道現在還為時過早，您仍在測試該技術。但如果全球一些一級運營商真的想滲透，你知道一種用於增量寬頻的固定無線方法，我想，你知道，我想有人在美國用你所說的非常昂貴的蜂窩5G 技術來做這件事，比方說，一家粉紅色的公司在五年內能達到多大規模？這是一個 5000 萬美元的機會還是一個 5 億美元的機會？你能給我們一些關於這件事是否成功的感覺嗎？它能有多大？

Well, knowing the nature of the beast and knowing the customers that we are talking with, I can think about anything between $150 million over 2 to 3 years.

好吧，了解了這頭野獸的本質並了解了我們正在交談的客戶，我可以考慮在 2 到 3 年內 1.5 億美元之間的任何事情。

That would be a nice addition to our growth rate. Thanks for sizing that for us as an opportunity early in the process on a different subject. There's supposedly a lot of money around for, I guess, broadband, rural broadband in the US, tens of billions of dollars. It seems like none of it ever got spent despite the fact that the democratic administration tried to spend themselves out of money in the last few years with our deficit. Is there any opportunity that with a change in administration that and perhaps some more government efficiency that money gets spent and not just for rural fiber, but for rural broadband. And we get a significant bump in the in the US business at some point in our lifetimes from these subsidies that have been out there and unused forever.

這將是我們成長率的一個很好的補充。感謝您在早期就不同主題為我們提供了一個機會。我猜想，美國的寬頻、農村寬頻有很多錢，有數百億美元。儘管民主政府在過去幾年中試圖用我們的赤字花光自己的錢，但似乎這些錢都沒有被花掉。是否有機會透過管理方式的改變以及政府效率的提高，將資金不僅花在農村光纖上，而且花在農村寬頻上。在我們有生之年的某個時刻，我們的美國業務會因為這些一直存在且永遠未使用的補貼而顯著提升。

Robert, I'm not a politician and for me as an outsider to North America to the US I see, I read the different publications.

羅伯特，我不是政治家，作為北美和美國的局外人，我閱讀了不同的出版物。

I don't know what Trump is going to do. Maybe, you know, better than I, I think that there's different looking at the messages that are coming across. There could be different opportunities. If for example the issue of immigrants is indeed something that he will be taking care of. It could increase the cost of building infrastructure.

我不知道川普要做什麼。也許，你知道，我比我更好地認為對所收到的訊息有不同的看法。可能會有不同的機會。例如，如果移民問題確實是他要解決的問題。它可能會增加基礎設施建設的成本。

So almost by definition, and that's a theory that I'm sharing with you. It's my own theory as a result of that fiber will become even less economically viable solution as opposed to wireless, that could be an opportunity maybe with Trump's approach to be more so to speak, to give more freedom in terms of the decision makers by the investors, maybe the strict guidance to use primarily fiber will change to just give the minimum capacity you decide which technology you want to use in order to make your ROI in the best possible. And that can obviously change and move the needle towards more wireless transport as opposed to fiber. But all these things are theories and I assume, you know, better than I, what Trump is going to do.

幾乎根據定義，這就是我與您分享的理論。這是我自己的理論，因為與無線相比，光纖將成為經濟上更不可行的解決方案，這可能是一個機會，也許川普的做法更可以這麼說，為決策者提供更多自由。投資者，也許主要使用光纖的嚴格指導將改變為僅提供最低容量，您可以決定要使用哪種技術，以便使您的投資回報率盡可能最佳。這顯然可以改變並推動無線傳輸而非光纖傳輸。但所有這些都是理論，我比我更清楚川普會做什麼。

I don't know if Trump knows what he's going to do.

我不知道川普是否知道他要做什麼。

Okay. Last question. We will see revenue from the Neptune related products start to scale in 2026. Correct.

好的。最後一個問題。我們將看到海王星相關產品的收入在 2026 年開始擴大規模。正確的。

Yeah, look, I hope to start seeing revenue on the second part of 2025. But this is my hope and when looking into 2025 and now working on the annual operational plan, we are making a very small portion into this, into this product in terms of revenue.

是的，我希望在 2025 年下半年開始看到收入。但這是我的希望，在展望 2025 年並製定年度營運計劃時，我們在收入方面只投入了很小的一部分。

I guess my question is who's going to buy it with your, the profile of your client tell right now? Which is that a tier one product for us? And in European companies or you're not very well represented there. So I'm just trying to figure out does that does the success of that product require, you know, 34 or five major new customers?

我想我的問題是，根據您的客戶資料，現在誰會購買它？對我們來說哪一個是一級產品？在歐洲公司中，或是你在那裡的代表性並不好。所以我只是想弄清楚該產品的成功是否需要 34 或 5 個主要新客戶？

So I mentioned in my prepared comments that we did some sort of a soft promotion with certain customers around the globe. Most of them are our customers, but some of them are our prospects.

因此，我在準備好的評論中提到，我們對全球的某些客戶進行了某種軟促銷。他們中的大多數是我們的客戶，但其中一些是我們的潛在客戶。

I think that it is a viable solution 41 operators in North America, it could also be a viable solution for countries where maybe the width of the channel is not that big, but they are still in a situation where they want to increase the capacity using even solution. So maybe they will not get to 25 gigabit per second because of the channel bandwidth, channel width. But they can, they will be still able to multiple the current width for a cost that is very compelling, especially as opposed to the option of putting two radios next to each other and the four I can see viable opportunities across the globe. And yes, it's probably going to start with the T one operators.

我認為這是一個可行的解決方案 41 北美營運商，對於通道寬度可能不是那麼大的國家來說，它也可能是一個可行的解決方案，但他們仍然希望透過使用來增加容量均勻溶液。因此，由於頻道頻寬、頻道寬度的原因，他們可能無法達到 25 GB/秒。但他們可以，他們仍然能夠以非常引人注目的成本倍增當前的寬度，特別是與將兩個收音機並排放置以及我在全球範圍內看到的可行機會的四個收音機的選擇相反。是的，這可能會從 T one 運營商開始。

All right. Thank you. And actually let me get one more in. What's the odds of you doing a, a small bolt on in the private network arena in 2025 handicap that for me, buddy.

好的。謝謝。實際上讓我再進去一個。哥們，你們在 2025 年在專用網路領域做一個小小的補充對我來說有多大的困難？

There's always a chance.

總有機會的。

I want a 10% chance or 70% chance.

我想要 10% 的機會或 70% 的機會。

Well, I'm not in the business of statistics.

嗯，我不是從事統計工作。

Okay.

好的。

In appreciate all your responses. And congratulations again on the solid Quarter

感謝您的所有回覆。再次恭喜本季業績穩定

Thank you, Robert. Appreciate it.

謝謝你，羅伯特。欣賞它。

To ask a question. Please raise your hand using your mobile or desktop application and wait for your name to be announced.

來問一個問題。請使用您的行動或桌面應用程式舉手，然後等待您的名字被宣布。

The next question comes from [Unter Parker Winter]. Please go ahead

下一個問題來自[帕克冬季]。請繼續

Hi Can you hear us?

你好，你聽得到我們說話嗎？

If there are no further questions and I think we can cause the cold.

如果沒有其他問題，我想我們可以引起感冒。

Can you hear me now?

現在你能聽到我說話嗎？

Yes, Gunther now, we can hear you.

是的，岡瑟，現在我們可以聽到你的聲音了。

I'm sorry before, with regard to the North American market again and again, focus on the administration change that you already addressed, but with regard to the defense sector, do you see any meaningful change in that area?

我之前很抱歉，關於北美市場，我們一次又一次地關注您已經提到的政府變革，但關於國防部門，您認為該領域有任何有意義的變化嗎？

I don't think I have sufficient knowledge about specifically about the defense. What I do know is that it's a federal stuff and it requires a certain level of, I would say clearances to be able to sell there. Now, on the one hand, we are selling already to different defense units across the world and in some of the cases we are making or doing this clearance process using the relationship between the Israeli Ministry of Defense and the other countries, Ministry of Defense. I'm not sure if this is a viable or easy, relatively easy, a way to do this kind of things with the American defense. It looks to me that it's much more complex, but I can assure you that definitely, if we find some sort of an avenue to get in there, I think that we have a very compelling technologies and some very recent use cases that could be of interest to the American military.

我認為我對防守的具體了解還不夠。我所知道的是，這是聯邦的東西，需要一定程度的許可才能在那裡出售。現在，一方面，我們已經向世界各地的不同國防單位出售產品，在某些情況下，我們正在利用以色列國防部和其他國家國防部之間的關係制定或進行此清關程序。我不確定這對美國國防來說是否是一種可行的或簡單的、相對容易的方法。在我看來，它要複雜得多，但我可以向你保證，如果我們找到某種途徑進入那裡，我認為我們擁有非常引人注目的技術和一些最近的用例，可以引起美國軍方的興趣。

Thank you so long and continue. Good luck.

謝謝你這麼久，繼續。祝你好運。

Thank you so much, Gunther.

非常感謝你，岡瑟。

The one I think you got the call.

我認為你接到電話的那個人。

Ceragon continues to focus on its growth initiatives, primarily millimeter wave products, private networks and managed services and improves its strategic position in the market.

Ceragon 繼續專注於其成長計劃，主要是毫米波產品、專用網路和託管服務，並提高其在市場中的策略地位。

We are adding new customers each quarter and growing our addressable market short term fluctuations in buying patterns in the US likely related to election concerns have not diminished our current outlook and we are making up for these fluctuations and the headwinds in other regions by our strong business in India.

我們每季都會增加新客戶，可能與選舉擔憂相關的美國購買模式的可尋址市場短期波動並沒有削弱我們當前的前景，我們正在透過我們強大的業務來彌補這些波動和其他地區的阻力在印度。

With our healthy funnel of opportunities. We expect that the ramp up in our private networks business, especially in the regions suffering from headwinds will help resume growth in the longer run.

憑藉我們健康的機會管道。我們預計，我們的專網業務的成長，特別是在遭受逆風的地區，將有助於長期恢復成長。

Our new products and solutions as well as Neptune based future products are gaining meaningful traction and positive feedback respectively.

我們的新產品和解決方案以及基於 Neptune 的未來產品分別獲得了有意義的關注和正面的回饋。

These market signals together with our long term product road map are building our confidence in long term growth as they are expected to result in increasing market share in our space.

這些市場訊號以及我們的長期產品路線圖正在增強我們對長期成長的信心，因為它們預計將增加我們領域的市場份額。

I look forward to updating you further on our next quarterly call. Have a good day, everyone.

我期待在下一次季度電話會議上向您進一步通報最新情況。祝大家有美好的一天。