Tier 1 Pacific Rim Operator Signs Multi-Year Contract with Ceragon Networks to Extend and Strengthen its Nationwide 4G and 5G Coverage

Rhea-AI Summary

Ceragon Networks Ltd. (NASDAQ: CRNT) has secured a multi-year contract valued at over $44 million with a tier 1 Pacific Rim operator to enhance its 4G and 5G network coverage. The project will leverage Ceragon's advanced microwave, millimeter wave solutions, and SDN Suite, aiming for reliable connectivity in underserved rural regions. Commencing in November 2022, the initiative anticipates over 50% annual booking increases, and aims to optimize network performance while reducing operational costs.

Positive

• Secured a multi-year contract valued at over $44 million.
• Expected annual bookings to increase by over 50%.
• Leverages advanced microwave and millimeter wave solutions for enhanced network performance.
• Targets underserved rural regions to improve connectivity.

Negative

• None.

The Operator will leverage Ceragon's microwave and millimeter wave solutions, SDN Suite, as well as turn-key services to ensure reliable connectivity – contract valued at a potential of over $44 million

ROSH HA'AYIN, Israel, Sept. 20, 2022 /PRNewswire/ -- Ceragon Networks Ltd. (NASDAQ: CRNT) ("Ceragon" or the "Company"), the global innovator and leading solutions provider of 5G wireless transport, today announced that it has signed a multi-year contract with a tier 1 Pacific Rim operator, to extend and enhance its 4G and 5G coverage across regional areas nationwide. The operator will utilize Ceragon's leading microwave and millimeter wave solutions, alongside its SDN Suite and full turn-key services, including design, site acquisition, deployment and support, to achieve optimal coverage and enhance quality of experience. The contract is valued at a potential of over $44 million over 3 years, with delivery starting as early as November 2022.

The Operator is committed to improving the coverage, reliability, and speed of its mobile network across regional areas, and was in search of a solution that could cost effectively address its challenging widespread countryside that is underserved and bears connectivity black spots. The operator selected Ceragon for its proven ability to deliver reliable best in class, full-turnkey wireless transport solutions at the lowest total cost of ownership and fastest time to market. The combination of Ceragon's IP-50C multicore high-power microwave and IP-50E millimeter wave radios, alongside its SDN Suite will enable the operator to achieve its ultra-high-capacity connectivity goals quickly and cost-effectively. What's more, thanks to its exceptional Layer 1 'multi-box' aggregation technology, Ceragon's E-band and microwave solutions can work with any existing third-party microwave radios, reducing the costs for swap and replacement – which is of great value.

Doron Arazi, Ceragon CEO, commented, "We are excited to support the operator in delivering on its commitment to nationwide subscribers – providing reliable connectivity coverage to unserved and underserved rural regions. This contract signifies an immense vote of confidence in Ceragon, as potential average annual bookings are expected to increase by over 50%. By leveraging Ceragon's high-power and multiband solutions, the operator can cover longer distances with fewer sites, delivering ultra-high capacity with up to 20Gbps capacity, hence leading to reduced capital and operating expenses. By deploying the SDN suite, the operator can enjoy faster time to market by having automatic configuration processes, reduced resources for commissioning and provisioning of Ceragon and third-party links, improved network performance using predictive analytics, and reduce OPEX by defining automatic changes in the network such as power consumption reduction in Ceragon Multicore."

About Ceragon Networks
Ceragon Networks Ltd. (NASDAQ: CRNT) is the global innovator and leading solutions provider of 5G wireless transport. 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 service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 5G & 4G broadband wireless connectivity, mission-critical multimedia services, stabilized communications, and other applications at high reliability and speed.

Ceragon's unique multicore technology and disaggregated approach to wireless transport provides highly reliable, fast to deploy, high-capacity wireless transport for 5G and 4G networks with minimal use of spectrum, power, real estate, and labor 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 complete portfolio of turnkey end-to-end AI-based managed and professional services that ensure efficient network rollout and optimization to achieve the highest value for our customers. Our solutions are deployed by more than 400 service providers, as well as more than 800 private network owners, in more than 150 countries. For more information please visit: www.ceragon.com

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.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document contains statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended 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, but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability, growth prospects, product development, financial resources, cost savings and other financial and market 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, although not all forward-looking statements contain these identifying words.

Although we believe that the projections reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations therefrom will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon's future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, any ongoing actions taken and future actions that may be taken by Aviat Networks Inc. or other stockholders or others; the continuing impact of the components shortage due to the global shortage in semiconductors, chipsets, components and other commodities, on our supply chain, manufacturing capacity and ability to timely deliver our products, which have caused, and could continue to cause delays in deliveries of our products and in the deployment of projects by our customers, risk of penalties and orders cancellation created thereby, as well as profit erosion due to constant price increase, payment of expedite fees and costs of inventory pre-ordering and procurement acceleration of such inventory, and the risk of becoming a deadstock if not consumed; the continued effect of the global increase in shipping costs and decrease in shipping slots availability on us, our supply chain and customers, which have resulted, and may continue to result in, price erosion, late deliveries and the risk of penalties and orders cancellation due to late deliveries; the impact of the transition to 5G technologies on our revenues if such transition is developed differently than we anticipated; the risks relating to the concentration of a major portion of our business on large mobile operators around the world from which we derive a significant portion of our ordering, that due to their relative effect on the overall ordering coupled with inconsistent ordering pattern and volume of business directed to us, creates high volatility with respect to our financial results and results of operations; the effect of the competition from other wireless transport equipment providers and from other communication solutions that compete with our high-capacity point-to-point wireless products; the continued effect of the COVID-19 pandemic on the global economy and markets and on us and on the markets in which we operate and our and our customers, providers, business partners and contractors business and operations; the risks relating to increased breaches of network or information technology security along with increase in cyber-attack activities, growing cyber-crime threats, and changes in privacy and data protection laws, that could have an adverse effect on our business; risks associated with any failure to meet our product development timetable, including delay in the commercialization of our new chipset; imposition of additional sanctions and global trade limitations in connection with Russia's invasion to Ukraine, the effects of general economic conditions and trends on the global and local markets in which we operate and such other risks, uncertainties and other factors that could affect our results, as further detailed in Ceragon's most recent Annual Report on Form 20-F and in Ceragon's other filings with the Securities and Exchange Commission.

Such forward-looking statements, including the risks, uncertainties and other factors that could affect our results, 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 results and there can be no assurance that it will prove to be accurate. Ceragon may elect to update these forward-looking statements at some point in the future but the company specifically disclaims any obligation to do so except as may be required by law.

Ceragon's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Ceragon's website at www.ceragon.com.

Ceragon Investor & Media Contact:
Maya Lustig
Ceragon Networks
Tel. +972-54-677-8100
mayal@ceragon.com

 

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SOURCE Ceragon Networks Ltd

FAQ

What is the contract value Ceragon Networks secured with the tier 1 operator?

Ceragon Networks secured a contract valued at over $44 million.

When will the delivery for the Ceragon contract begin?

Delivery for the Ceragon contract is set to begin in November 2022.

What will the contract with the tier 1 operator enhance?

The contract will enhance 4G and 5G coverage across regional areas.

What is the expected increase in annual bookings for Ceragon Networks?

The contract is expected to increase annual bookings by over 50%.

What technologies will Ceragon provide under the new contract?

Ceragon will provide microwave and millimeter wave solutions, along with its SDN Suite.