LITTLE FALLS, New Jersey,
April 6, 2020 /PRNewswire/ -- Ceragon
Networks Ltd. (NASDAQ: CRNT), the #1 wireless hauling specialist,
today provided an update on the impact of the COVID-19 pandemic on
its business and operations following the Company's announcement on
February 10th 2020.
As COVID-19 continues to spread globally, and as many countries
have entered full or partial lockdowns, the Company is assessing
the effect on its Q1 and full 2020 annual results. Revenues for the
first quarter are expected to be at the range of $55.5-57 million, mainly due to delays in the
pace of network rollouts and shipments, as lockdowns and other
COVID-19 related measures are inevitably causing a slowdown in
customers' ability to execute on their network expansion plans.
At the same time, demand during Q1 was much stronger than
anticipated, especially towards the end of the quarter, with a high
book-to-bill ratio of well above 1. As much of the
population remains homebound, service providers are taking
action to ramp up their network infrastructure in order to cater
for the substantial, unanticipated surge in network capacity
demands, making 5G use-cases a reality even sooner than
anticipated. This new reality is indicative of a consistent and
potentially growing demand for Ceragon's leading wireless hauling
solutions and services, as telecom operators prepare for the period
after the pandemic winds down.
While the company expects deliveries during the second quarter
may be negatively impacted by limitations placed on business and
civilian operations, management believes that the strong demand for
the Company's products and services will continue during 2020.
Ceragon hopes it will be able to increase deliveries and meet
accumulated demand throughout the remainder of 2020, as the
measures taken by governments are anticipated to slow the spread of
the pandemic and country restrictions will be gradually
lifted.
"The telecommunications industry is transforming and Ceragon
plays an essential role in enabling intense broadband experiences
everywhere," said Ira Palti,
President and CEO. "Our customers are doing everything they can
these days in order to increase network capacity and support the
sudden surge in network traffic emerging from the COVID-19
pandemic. Our main objective is to help our customers scale up
faster than ever. We have a responsibility to enable service
providers around the globe to increase their network capacity so
that they can guarantee the operational continuity of businesses,
governments, first responders and education systems as well as
deliver consistent consumer broadband experiences. We have
successfully obtained Essential Service status in many regions
around the world, which improves our ability to continue our
delivery and support as best we can, still facing, of course
restrictions and obstacles.
"Our top priority is to ensure that our employees and customers
are safe and that the company remains resilient and agile. We have
successfully transitioned into a new mode of operations to best
support our customers under a firm Business Continuity Program
wherein most of our employees are working partially or fully from
home and other critical teams are at the office, or in the
field.
"As we continue to meet the many challenges these unprecedented
times present, we believe that we are facing a permanent change in
the way businesses and individuals access information. The need for
increased network capacity from cell sites to the network core will
remain long after the current crisis is resolved and will fuel the
transition to 5G, with Ceragon's flexible wireless hauling
solutions playing a leading role in this transition in 2020. We
thank our customers, employees and our stakeholders all over the
world for their continued support and send our sincere wishes for a
quick recovery to those affected," Mr. Palti concluded.
Additional information and details will be provided in Ceragon's
Q1 Results.
About Ceragon Networks Ltd.
Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless hauling
specialist. We help operators and other service providers worldwide
increase operational efficiency and enhance end customers' quality
of experience with innovative wireless backhaul and fronthaul
solutions. Our customers include wireless service providers, public
safety organizations, government agencies and utility companies,
which use our solutions to deliver 5G & 4G, mission-critical
multimedia services and other applications at high reliability and
speed.
Ceragon's unique multicore technology and disaggregated approach
to wireless hauling provides highly reliable, fast to deploy,
high-capacity wireless hauling for 5G and 4G networks with minimal
use of spectrum, power and other resources. It enables increased
productivity, as well as simple and quick network modernization,
positioning Ceragon as a leading solutions provider for the 5G era.
We deliver a range of professional services that ensure efficient
network rollout and optimization to achieve the highest value for
our customers. Our solutions are deployed by more than 460 service
providers, as well as hundreds of private network owners, in more
than 130 countries.
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Safe Harbor
Ceragon Networks® and FibeAir® are registered trademarks of
Ceragon Networks Ltd. in the United
States and other countries. CERAGON ® is a trademark of
Ceragon Networks Ltd., registered in various countries. Other names
mentioned are owned by their respective holders.
This press release contains statements concerning
Ceragon's future prospects that are "forward-looking statements"
within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934, as amended, and the safe-harbor provisions of
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 about
Ceragon's business, financial condition, results of operations,
micro and macro market trends and other issues addressed or
reflected therein. Examples of forward-looking statements include:
projections of demand, revenues, net income, gross margin, capital
expenditures and liquidity, competitive pressures, order timing,
growth prospects, product development, financial resources, cost
savings and other financial matters. You may identify these and
other forward-looking statements by the use of words such as "may",
"plans", "anticipates", "believes", "estimates", "targets",
"expects", "intends", "potential" or the negative of such terms, or
other comparable terminology. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially, including the risk of a disruption to our and
our customers' business related to the outbreak of the novel
coronavirus (COVID-19) pandemic ("Coronavirus"); the risk of
Macro-Economic downturn and slowdown of development and significant
decline of business that can harm our and our customers' ability to
conduct or further develop our/their business, including,
cancellation, suspension or reduction in the investment in new
equipment purchase, postponement or cancellation of rollout of
wireless networks, postponement in the transition to 5G
technologies and in the introduction of new products and
capabilities, inability to deliver and perform under our contracts,
disruption to our supply chain and production capacity, adverse
effect on our and our customers' financial performance, cashflow,
revenue and financial results, available cash and financing, and
our ability to bill and collect amounts due from our customers; the
risks relating to the concentration of a significant portion of
Ceragon's expected business in certain countries and particularly
in India, where a small number of
customers are expected 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; the risk of delays in converting design wins
into revenue as well as the expected revenue growth; risks
associated with any failure to meet our product development
timetable and specifications, and to maintain our technological
advantage over our competitors; risks associated with any failure
to effectively compete with other wireless equipment providers; the
risk that the rollout of 5G services could take longer or
differently than anticipated; and other risks and uncertainties
detailed from time to time in Ceragon's Annual Report on Form 20-F,
Item 3, under the caption "Risk Factors", 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.
Such forward-looking statements do not purport to be predictions of
future events or circumstances, and therefore, there can be no
assurance that any forward-looking statement contained in our
announcements, presentations, or commentary will prove to be
accurate. We do not assume any obligation to update any
forward-looking statements.
Media Contact:
Tanya Solomon
Ceragon Networks
Tel.: +972-3-543-1163
media@ceragon.com
Investor Contact:
Osi Sessler
Ceragon Networks
Tel.: +972-3-543-1047
investor@ceragon.com
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SOURCE Ceragon Networks Ltd