Ceragon Networks (CRNT) Q1 2021 salary name Transcript | NQ0-231 Latest Questions and exam dumps

a close up of a logo: Ceragon Networks (CRNT) Q1 2021 Earnings Call Transcript © supplied by way of The Motley fool Ceragon Networks (CRNT) Q1 2021 revenue call Transcript

Ceragon Networks (NASDAQ: CRNT)

Q1 2021 salary call

might also 03, 2021, 9:00 a.m. ET

Contents:
  • prepared Remarks
  • Questions and solutions
  • name members
  • organized Remarks:

    Operator

    CONSTELLATION manufacturers, INC.

    girls and gents, thanks for standing via, and welcome to Ceragon Networks first-quarter 2021 salary name. Please be suggested, our call is being recorded these days. [Operator instructions] i'd like to hand over the name now to our first speaker today, Ms. Maya Lustig, investor relations at Ceragon.

    Please go ahead.

    Maya Lustig -- Investor members of the family

    thanks, operator. good morning, everyone. i am joined by using Ira Palti, Ceragon's president and chief govt officer; Ran Vered, Ceragon's chief financial officer; and our incoming chief govt officer, Doron Arazi. earlier than we birth, i want to observe that this call includes guidance that constitutes ahead-looking statements within the meaning of the Securities Act of 1933 as amended and the Securities change Act of 1934 as amended and the secure harbor provisions of the inner most Securities Litigation Reform Act of 1995.

    despite the fact we trust that the expectations mirrored in such forward-searching statements are based upon economical assumptions, we may give no assurance that our expectations will be acquired or that any deviation therefrom usually are not cloth. Such statements involve dangers and uncertainties that may cause future effects to differ materially from those anticipated. These hazards and uncertainties encompass, but don't seem to be constrained to, such hazards, uncertainties and different factors that could have an effect on our effects as designated in our press release that changed into posted earlier nowadays and as extra detailed in Ceragon's most fresh annual record on form 20-F and in Ceragon's different filings with the Securities and trade commission. Such forward-searching statements symbolize our views handiest as of the date they're made and will no longer be relied upon as representing our views as of any subsequent date.

    backed:

    10 stocks we like improved than Ceragon Networks

    When investing geniuses David and Tom Gardner have a stock tip, it pays to hear. in spite of everything, the e-newsletter they have run for over a decade, Motley idiot inventory advisor, has tripled the market.* 

    David and Tom simply printed what they accept as true with are the ten top-rated shares for investors to purchase at the moment... and Ceragon Networks wasn't considered one of them! it's appropriate -- they consider these 10 stocks are even more advantageous buys.

    See the ten shares

    *stock guide returns as of February 24, 2021

    this text is a transcript of this convention name produced for The Motley idiot. whereas we attempt for our foolish finest, there could be error, omissions, or inaccuracies during this transcript. as with any our articles, The Motley idiot doesn't count on any accountability to your use of this content material, and we strongly motivate you to do your personal analysis, together with being attentive to the name your self and analyzing the enterprise's SEC filings. Please see our terms and stipulations for further details, together with our mandatory Capitalized Disclaimers of liability.

    The Motley idiot has no position in any of the shares outlined. The Motley fool has a disclosure policy.

    Such forward-searching statements don't purport to be predictions of future movements or consequences, and there will also be no assurance that they will prove to be correct. Ceragon may also decide on to replace its ahead-looking statements at some element sooner or later, however in particular disclaim any responsibility to achieve this. Ceragon's public filings can be found on the Securities and trade commission's web site at www.sec.gov and can even be obtained from Ceragon's website at www.ceragon.com. also, today's call will consist of definite non-GAAP numbers.

    For a reconciliation between GAAP and non-GAAP effects, please see the table connected to the press release that was issued past these days. i will now flip the call over to Ira. Please go ahead.

    Ira Palti -- President and Chief executive Officer

    thanks, Maya, and first rate morning, each person. it's my pleasure to share with you that we are hosting this name the usage of 5G expertise. presently, every person in group Ceragon is on their 5G smartphones. here's a 5G-enabled video name, providing firsthand that 5G is here to reside.

    it's here to develop. it be right here to lead. we're proud to be those making this revolution a truth. we're proud to lead the trade.

    closing quarter, I shared with you my imaginative and prescient for a 5G world. I offered you with methods Ceragon should be a driver of this new facts-pushed, 5G-powered international lifestyle. Now this quarter, i am pleased to share with you the particulars of our participation in cutting-part tasks, design wins, and POCs, which all exhibit we've already moved from a vision into a a hit and tangible reality. 2021 is looking to be a superb 12 months for 5G.

    regardless of the common economic have an effect on of the pandemic, the global telecom market is marching ahead with mighty exercise. we're watching a favorable fashion in the volume of information flowing through the virtual veins of the networks. there was a enormous cultural shift towards the digital. And further and further individuals have develop into greater inclined to and professional in the usage of new applied sciences.

    To sustain with this new era, operators world wide are speeding ahead to upgrade their latest methods or construct new networks. This international shift impacts our 4G and 5G providing positively. In Q1, we executed new design wins and saw very powerful bookings. in reality, our bookings in Q1 had been the highest in two years.

    Our book-to-bill ratio was approach above one. while this increases our visibility and self assurance in market demand for the the rest of the 12 months, or not it's clouded via world component shortages, which will doubtless affect our beginning capabilities. Ran will tricky on this additional. In North the us, we had a very powerful quarter, the strongest in terms of bookings due to the fact 2016.

    We see expanding demand from latest Tier 1 consumer to extend its 5G community. we are also offering options for a big means raise for Tier 2 operators and WISPs. We see increase in earnings to WISP in the U.S. as well as in Canada, which displays a regional style.

    We see this fashion in both direct and oblique channels. in addition, we are increasing our revenue effort to crucial infrastructure type of customers, equivalent to public security and utility providers, as they beginning trying to Excellerate their network over to 5G. We see a lot of potential in this market, particularly for proposing value for comprehensive verbal exchange options and services. In Europe, pushed through 5G demand, we had a very effective quarter when it comes to bookings.

    i am proud to assert that greater than 20% of the region's bookings came from 5G-related strikes. as the European operators continue to push 5G from preliminary trials into the container, we are there to give them with the expertise, capabilities, and the services they want. we are collaborating in a large number of 5G proof of ideas and preliminary rollouts, and plans are being finalized for mass rollout. In Western Europe particularly, we foresee a significant probability to develop and take market share.

    After Western Europe, we expect to see 5G momentum build in the leisure of Europe. In India, there is large competitors amongst operators, who now make investments heavily in strengthening their 4G capabilities and planning the POCs of 5G. in accordance with our existing relationship with them, we consider we will be part of these 5G POCs. at the same time, there are terrific efforts to deliver the west population still the usage of 2G and 3G into the records-pushed world.

    These efforts power the operators to abruptly expand their current 4G networks in both reach and ability, which creates gigantic demand for our products. both developments play to our choose in Q1. Our operations and revenues have been strong and good. in reality, in India, we trust 2021 should be even superior than 2020, assuming no cloth affect on our operations from the latest COVID outbreak.

    The Latin the usa market is showing indications of heating up after a coronavirus-prompted freeze. COVID-19 continues to hit Latin the usa severely, yet there is new momentum, particularly in new investment towards a far better 4G and readiness for 5G. Operators are catching up for time misplaced closing 12 months in imposing the networks. i'm completely satisfied to share that our bookings have been more than double in -- versus this fall 2020 and that 80% of those bookings got here from Tier 1 operators, together with a multinational Colombian Tier 1 operator, whose frame settlement is worth $26 million.

    average, there was very robust momentum in the Indian and Mexico as well. In APAC, after a slowdown in the remaining few quarters, we signed a observe-on body contract price $23 million with a Tier 1 Pacific Rim operator, one in every of our extra advanced 5G implementations with huge site visitors on our equipment. truly, the majority of the bookings in this location got here from Tier 1 operators. we're also beginning to promote 5G applied sciences to China and carrying on with to make progress with a new Tier 1 OpenRAN client.

    standard, in each vicinity, we're moving into a new future, where I trust there might be an expanding number of opportunities for us throughout the globe. i'm blissful to file that we now have 12 5G design wins to this point, an further three seeing that we closing reported. One is a brand new addition to our client base and the relaxation, existing customers. we're working challenging to leverage future alternatives and to continue to be a key enabler of a multiyear 5G evolution.

    enable me to give you some records related to the acceleration in the global 5G evolution. in accordance with the GSMA latest experiences, instant Backhaul Evolution and ABI analysis, 5G cell subscriptions are expected to grow by more than 41% CAGR within the subsequent six years, expanding from 378 million subscribers to four.2 billion. traffic is estimated to boost above 6,000 exabytes yearly by 2027 with 5G accounting for more than 80% of the whole site visitors. consequently, larger-capacity backhaul bands, millimeter wave and microwave may be a must have in assembly 5G traffic calls for.

    they're going to account for greater than 55% of the links in 2027. Fiber should be subsequent with only forty two%. The deserve to additional densify the network to help 5G will result in additional macro mobile and small cells, in particular, being deployed in city areas to tackle the site visitors. whereas fiber should be deployed, now not all city phone websites will also be supported with the aid of fiber.

    instead, microwave and millimeter wave backhaul hyperlinks should be used, that are versatile and can deal with large statistics links. Now 5G comes with different use situations and requirements. The growing to be OpenRAN circulation offers new avenues, customization, and suppleness that meets such requirements because it presents interoperability amongst distinct video digital handle unit options from diverse suppliers. I trust or not it's the brightest future of our industry.

    OpenRAN has picked up steam across the globe and is inflicting a enormous disruption and dis-aggregation in how networks are architected. today, it isn't just the greenfield tech however additionally most important market gamers that flip towards OpenRAN. as the market in typical continues to move from analytic strategies to OpenRAN, our highest quality-of-breed, open-network hauling solutions develop into more and more principal as they can be viewed through our joint project in Brazil with a lot of design wins we're engaged on. permit me to intricate on the Brazil challenge.

    we're taking part in TIP 5G OpenRAN trials, which look at various gadget gives for 5G OpenRAN. it's a joint challenge TIM Brazil is accomplishing with TIP, Telecom Infra assignment, and the country wide Telecommunication Institute. a new-generation, all-outdoor, extremely-excessive-skill IP-50E millimeter wave options, able to providing up to 20 gigabits ability nowadays, is being trialed. This classification of solution is a must for OpenRAN as it provides the connectivity to the radio contraptions.

    we're proud to be concerned during this assignment in Brazil's future network deployments, and we see it as a chance to show our expertise facet. to meet future 5G and OpenRAN-related technology demands, we are establishing a brand new high-capability, low-latency system-on-a-chip. it's designed to present the subsequent stage of fronthaul linking between digital and radio units. And with this solution, we are going to be the primary ones out there offering this know-how.

    we are very enthusiastic about this prospect. Ceragon's device on Chip will tape-out as deliberate for July will guide each microwave and millimeter waves. With excessive bandwidth and low latency, it will assist huge enlargement of 5G networks apart from supporting all outdated instant generations. Our existing IP-50E and IP-50C household of products correctly support now 5G deployments.

    the brand new equipment-on-a-chip will increase our offering with an multiplied skill achieving 100 gigabits per second as well as more desirable 5G and OpenRAN compatibility. we're innovating on a disruptive market vogue as we have now at all times finished from 2G all the strategy to today's 5G. Ceragon has grown so plenty within the closing decade and a half, and it is a global company nowadays. It has been a pleasure serving because the president and CEO of Ceragon for the past 16 years and to lead a fantastic growth and the very many accomplishments of the company.

    within the beginning of July, i could be transitioning my responsibility to Ceragon's former deputy CEO and CFO, Doron Arazi. i will be able to continue serving the enterprise as vice president of the board for -- of the board. all over my time at Ceragon, I've in fact been honored to work with so many talented leaders and visionaries, together with our incoming CEO, Doron. With that, allow me to briefly circulate the mic to him.

    Doron?

    Doron Arazi -- Chief executive Officer

    thank you, Ira, and hiya, all and sundry. I feel privileged and excited to come returned to Ceragon because the new CEO. below Ira's management, Ceragon has competitively improved its 4G and 5G offerings. And today, it's a global company to many of the world's Tier 1 and Tier 2 operators.

    As you might also know, i'm neither new to Ceragon nor to the industry by which it operates. all over my many years within the telecom and linked industries, I bought uncovered to a wide variety of ideas and business fashions for scaling up effects. I led changes that generated better, greater and extra ecocnomic organizations. I additionally build strong relationships with operators, providers, banks, and investors.

    i am now bringing this extensive journey again to Ceragon. I see loads of knowledge and opportunities in leveraging Ceragon's core talents to construct a more robust, bigger and more profitable business. it's my plan to hold our technological leadership, which is the very foundation of Ceragon's success, and enhance further and further innovative easy methods to fulfill the world's becoming 5G needs and beyond. I look forward to furthering our dedication to our latest customers as they navigate the new 5G realm and continue to boost their 4G networks.

    I also anticipate finding such new tips on how to scale our know-how and to open new doors in existing and new verticals. returned to you, Ira.

    Ira Palti -- President and Chief govt Officer

    thank you, Doron. as soon as again, congrats and good success on your new place. i might now like to turn the call over to Ran to discuss our financials in more particulars. Ran?

    Ran Vered -- Chief economic Officer

    thanks, Ira and Doron, and decent morning, everyone. To support you be mindful the consequences, I can be referring principally to non-GAAP numbers. For extra guidance involving our use of non-GAAP economic measures, together with reconciliations of these measures, we will refer you to state-of-the-art press liberate. Like Ira outlined, all the way through Q1 2021, we saw very effective bookings coming from Europe, North the united states, Latin the usa, and India.

    truly, Q1 became the strongest in terms of bookings in the closing two years. Our book-to-invoice ratio turned into manner above one. Our revenues had been at a powerful stage and on the excessive conclusion of our projections of the quarter. all through the primary quarter, we made further progress moving again toward general operations, accelerating the positive vogue that all started in Q3 2020.

    Let me now overview the precise Q1 numbers with you. Revenues for the quarter had been $sixty eight.3 million, up 22% in comparison with Q1 final year. Our revenues vary from area to vicinity, in keeping with the impact that COVID has had on local business operations and the network build-out plans. Our strongest salary for the quarter were from India, reflecting ongoing deliveries to Bharti.

    Europe had a powerful quarter, continuing its high quality momentum for 2020. really, it's the strongest first quarter on account that 2015, reflecting some preliminary revenues from 5G projects. Revenues in North the united states have been potent, reflecting persisted fine momentum with our Tier 1 consumer, different ISPs, and smaller carriers. Latin the us had a a bit of lessen quarterly revenue than its normal run cost pushed by way of the low bookings in the 2nd half of 2020.

    besides the fact that children, we are beginning to see a new momentum in the telecom market in there, and we begun the 12 months with very strong bookings. earnings in Africa replicate the completion of the Orange Niger mission we announced in August 2020 in addition to a further customer we won in this autumn 2020. Revenues in APAC were at a low stage in conjunction with low bookings over the last two quarters. We had one above 10% customer within the first quarter.

    The bookings-to-income ratio for the first quarter become method above one. These strong bookings supply us self assurance for the the rest of the yr notwithstanding clouded by the global element shortage disaster, which could affect our deliveries. i will intricate on this more almost immediately. Gross income for the quarter on a non-GAAP groundwork turned into $20.2 million, giving us a non-GAAP gross margin of about 30%, in comparison with 25% for the primary quarter of 2020.

    Our especially low gross margin displays the continued high give chain fees that we've had to take care of within the COVID environment with a major increase in airfreight prices, bigger material charge, and extra. here is likely to continue to fluctuate over the following few quarter except there is a full recuperation. working prices on non-GAAP groundwork for the primary quarter have been $19.5 million, lower than our expectations. research and construction costs for the first quarter on a non-GAAP groundwork have been $7.four million, a moderate boost from Q1 2020, in particular due to our development with chip development.

    As deliberate, these costs will proceed to live excessive except we reach tape-out in July 2021. income and advertising fees for the quarter on a non-GAAP groundwork have been $eight.2 million, same as Q1 2020, reflecting the decreased shuttle and variable compensation which have include COVID. we are going to expect to steadily enhance our revenue and advertising prices throughout the 12 months as markets open put up-COVID. universal and administrative charges for the first quarter on a non-GAAP groundwork were $three.9 million, reduce than our expectations and down from $four.2 million in Q1 2020.

    And going ahead, we expect to come back to our 2020 run fee. monetary and other costs for the first quarter on a non-GAAP basis were $1.2 million, according to our expectations and have back to the normal ordinary degrees in Q1 2021. Our tax fees for first quarter on a non-GAAP foundation had been $0.three million, decrease in Q1 -- decrease than in Q1 2020 and in keeping with our expectations. net loss on a non-GAAP groundwork for the quarter become $0.9 million or $0.01 per diluted share.

    On GAAP foundation, net loss became $1.2 million or $0.01 per diluted share. We reduced our stock to $48.5 million, down from $fifty nine.7 million in Q1 2020. Our receivables are actually at $106.7 million, up from $104.2 million in Q1 2020. Our DSO now stands at 141 days, which is nearly the same as in Q1 2020.

    net cash utilized in working actions for the primary quarter turned into $1.7 million. internet money used this quarter for investing activity was $2 million. searching forward, our powerful bookings in Q1, which can be enormously superior than anticipated, along with a very match funnel and tremendous booking forecast for Q2, replicate increasing business pastime in most areas. Now all that noted, the growing to be element shortage in distinctive industries all throughout the globe has begun to influence our give chain of our components in addition to operators' 5G rollout plans.

    Compounding the issue is panic purchasing of chips in definite industries, resulting in further bottlenecks. In Q1, we had been able to manage this condition devoid of fabric have an effect on on our deliveries and, in turn, our revenues. we've got been working with our suppliers, hunting for extra ones and taking different measures to raise our give chain capabilities, efficiency and resilience. We continue to goal income increase in 2021.

    youngsters we nonetheless are expecting a gradual beginning for the primary half of the 12 months, we proceed to also predict salary to be between $275 million to $295 million. Now all that stated, the becoming component scarcity may have a bad affect on the timeliness of our Q2 and rest-of-the-yr deliveries and can cause probable push of revenues between quarters unless the scarcity is resolved. We continue to be confident in our mid- and lengthy-term prospects and deliveries. With that, I now open the call for the questions.

    Operator?

    Questions & solutions:

    Operator

    [Operator instructions] Our first query nowadays comes from the road of Alex Henderson. Please go ahead.

    Alex Henderson -- Needham & Co. -- Analyst

    whats up? can you hear me?

    Ira Palti -- President and Chief govt Officer

    sure. Alex, we will hear you.

    Alex Henderson -- Needham & Co. -- Analyst

    ultimate. a few questions, if I might. First, i needed to speak a bit bit in regards to the tape-down in July, what I believe is doubtless one in every of your most critical products in a very long term. One, do you have got any dangers around the tape-down timing in response to capability constraints at this -- in the supply chain probably causing deferrals on timing of taping down new items?

    Ira Palti -- President and Chief government Officer

    at the least what we see presently is no. What we get from the americans who must do the tape-out and the manufacturing and what's on there's that, in established, the strategies for brand spanking new chipsets are on time. youngsters there is a query, however in order to come a bit bit additional down the highway, on capacities to fabricate it. and that is the reason the place we are.

    Tape-out, we want samples at once. I think we are going to be on time with samples to build the products. and then doubtless additional down the 12 months with the aid of mid-2022 when we are going to should ramp up the creation, may -- then we are going to have to see. by way of then, I do are expecting the shortages of chipsets will be over.

    Alex Henderson -- Needham & Co. -- Analyst

    And relative to the tape-down, certainly, there is always chance that tape-downs will come returned with the want for another turn. When do you think you are going to have a sense of when that product is -- when do you expect to have the tape-down results again?

    Ira Palti -- President and Chief govt Officer

    close to the conclusion of the 12 months.

    Alex Henderson -- Needham & Co. -- Analyst

    excellent. and that i wanted to go returned to the feedback round India. I suggest to be sincere with you, i'm a bit shocked at how amazing it's, not so plenty on account of the want, however quite because of the COVID situations there. Frankly, we had been bracing for a great deal weaker consequences out of India than what you obviously -- I suggest with very first rate effects.

    The query is, if you had these items, are you able to get them in and install them given what's happening there?

    Ira Palti -- President and Chief executive Officer

    The reply is yes with a probably. Let's be aware on India that, in widespread, what we see as a demand is plans the operators put as their plans for 2021. Plans had been finished someplace in January, February earlier than the very heavy hit of the COVID. sure, we -- I feel I spoke of on my script, and Ran indicated, that we're a little bit hesitant on the capability to set up lots of these below the latest COVID.

    however event from the ultimate time, a couple of year in the past, once we had these concerns, we have been in a position to set up even beneath the COVID. besides the fact that children this time, I are expecting it should be would becould very well be a little bit more problematic and there could create some variations in hauls in there. however in everyday, sure, I think the India market is built to work under the COVID.

    Ran Vered -- Chief fiscal Officer

    just to -- Alex, simply to add on that, we additionally indicated in our organized remarks that 2021 can be even superior than 2020 as a result of we already see amazing bookings in Q1 and we additionally see very strong funnel within the remainder of the year for India. So we believe assured about it, with the question of COVID and the influence on that.

    Alex Henderson -- Needham & Co. -- Analyst

    The question on the provide constraints, just to dig into that a little bit. without doubt, hitting every industry. You guys are by no means by myself on that. nevertheless it does beg the question of even if agencies will choose to go together with businesses that may get chips versus ones that can't.

    And agencies like Nokia may additionally now not have most useful-in-breed product but they have got bigger scale, and hence, more cloud. Are you in a position to get your customers to support you get a bit bit greater cloud, and therefore, be sure that you just're staying within the correct positioning and they're now not going to choose to go along with different people on account of the shortcoming of availability out of Ceragon?

    Ira Palti -- President and Chief government Officer

    My feeling is that we do have the cloud in the areas where we should and -- which is the -- let's be aware that probably the most issues we have is with committed chipsets and that we are bigger than Nokia in necessities for one of the most companies. And in one of the most different places, which are greater prevalent, I feel there's the opposite happens because we are smaller, it's an awful lot more convenient circulation in between the current on these things. So yes, it be a battle obtainable. i'm seeing growth on a lot of those things and lots of the entrance it truly is taking location there.

    Alex Henderson -- Needham & Co. -- Analyst

    So relative to the ultimate question, and that i'll cede the flooring to the subsequent man. but relative to the guidance, I anticipate on the low conclusion of the counsel, you're likely assuming a scarcity of availability of accessories. And on the excessive conclusion of the assistance, you are assuming that form of the gold standard-case state of affairs of availability relative to a reasonable expectation of deliver on the add-ons that you have been hearing from americans. What could be the cases that could get you to the low conclusion? Is that a condition the place americans really again off on deliverables that they informed you they had been going to provide you with or --

    Ira Palti -- President and Chief govt Officer

    I feel it is what we indicated on the call. We nevertheless believe in the advice that we gave in there. I do not know exactly on the range and the have an effect on of the provide chain issues as they arrive throughout. at the least in first quarter and what we're seeing in 2nd quarter, we're capable of mitigate many of the dangers and the issues on the desk.

    now not all of them, however loads of these. Time will inform. And it be a controversy if you want to unfold across the year, where I think that longer term, or not it's there. I consider our customers see the same subject from all suppliers and i believe it will make the, as we noted, probably pushout of deliveries in between quarters as we circulation ahead.

    And longer latitude, we are very, very confident that here is -- as soon as the give chain constraints have decreased, we are in an excellent place to extend.

    Ran Vered -- Chief economic Officer

    simply to add on that, Alex, my view, as we also indicated on the name, we saw very effective demand in Q1. and also you additionally see very powerful demand and funnel for Q2. So in that sense -- our backlog is very suit in that sense. The question is, how will we bring it with the shortages and what should be the rush between quarters that we'll face? That is not uncertain, but as we indicated, we feel at this factor confident with the assistance that we deliver there three months ago.

    Alex Henderson -- Needham & Co. -- Analyst

    good enough. neatly, in closing to this query, Doron, thanks for becoming a member of us. it be first rate to look you, and appear ahead to working with you. And Ira, congratulations.

    you might have had a pretty good run and actually executed a superb job of positioning the company going forward. definitely recognize working with you over the years and certainly hope to be in contact even in your longer-term publish-chairman position.

    Ira Palti -- President and Chief executive Officer

    thanks very a lot, Alex.

    Doron Arazi -- Chief executive Officer

    Alex, first of all, thanks in your warm phrases, and Ira isn't literally leaving us. So -- neatly, let's no longer make this separation that dramatic. anticipating working with you, Alex.

    Alex Henderson -- Needham & Co. -- Analyst

    first rate. thank you, guys.

    Operator

    Our next name is going to return from the road of George Iwanyc. George, you could be brought on to speak. that you may achieve this now.

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    hiya? can you hear me?

    Ira Palti -- President and Chief executive Officer

    yes.

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    All right. thanks for taking my questions. yes, i'd just like to start off with thanking you, Ira, to your standpoint on the business over the years and the connection. And Doron, congratulations on coming lower back and approaching board.

    So with that, perhaps digging into the suggestions a bit bit more. With the visibility you have into the provide chain at this time, is there any risk that earnings may lower quarter overquarter on account of the tightness or is this just an amount that you simply can't deliver to the demand and also you're form of retaining expectations sort of near the vest for the near term?

    Ran Vered -- Chief monetary Officer

    hello, George. here's Ran. So yes, revenues might go down quarter over quarter. however as I noted past, it's now not in any respect a be counted of demand.

    The demand is awfully strong. The backlog is terribly effective. or not it's the count of birth and the way we are able to carry with the provide -- with shortages and then convert this very potent backlog into revenue. So we believe very confident with the backlog and with the demand.

    it's just the provide constraint, the shortages to be able to affect us.

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    All appropriate. and then if you happen to seem to be on the potential for maybe no longer being capable of bring in India, is the demand in North the united states, Latin the usa, the place you are seeing the growth, at a level where you may offset how effective India was in the first quarter?

    Ran Vered -- Chief fiscal Officer

    neatly, India generates roughly, on a standard, 25% of our salary. So -- and we -- our event from the final year with COVID in India was basically a positive one, if i could say so, as a result of we managed and have been in a position to carry and execute despite the COVID circumstance. I feel that at this element, the outbreak in India is greater severe and anything that we failed to -- had the event in the past. at the moment, and as we pointed out additionally in Q1, however, we had been in a position to carry, set up, and installation very amazing in India.

    however this -- at this factor of time, we are looking to be a bit bit more cautious on that.

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    All correct. after which simply, I bet, a further involving the supply chain tightness. in the event you analyze your gross margins for the near time period, is it comfy round this 30% stage or do you believe there may be a little bit of risk of having to pay day trip expenses and some extra prices that means?

    Ran Vered -- Chief fiscal Officer

    So i will be able to say the following: the gross margin simply -- that we all bear in mind is -- may fluctuate from a variety of motives: geographies, timing of revenues, and the salary stages as neatly. as a result of if you bear in mind, within the first quarter and 2nd quarter of closing 12 months, we had very low gross margin because the income were decrease because we have some element of our prices within the can charge of revenues that are mounted charges. At this level of revenues, we consider pretty assured on this figure. but once again, it be stylish of no matter if the profits will go down or in the event that they will go up.

    We do suppose it should be superior. take into account that on a pre-COVID world, we'd are expecting the gross margin to be more suitable. We do face some expedite fees and some adjustments -- dramatic changes in the airfreight can charge that influence us. We do are attempting to balance that via an operational efficiency, doing some more sea deliveries and a few other measures that we're taking.

    no longer all of in order to have the near-future impact -- superb influence but we are very concentrated on operational excellence, including on this deliver chain and airfreight. but again to your questions, at this degree of earnings, we do expect the gross margin to be because it is.

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    All appropriate. And are you at ease on the opex stage that you just're at? are you able to hang that for a quarter or two earlier than starting to enhance again?

    Ran Vered -- Chief monetary Officer

    So in fact, we've the -- on the opex, some very low G&A to be able to probably be higher, as I also indicated, greater like within the 2021 cost. R&D, probably at the equal rate. We do expect, because we're continuing to invest within the chipset in the 2d quarter, to be at the identical stage. And sales and marketing, probably a bit bit bigger.

    So I do expect that our Q2 opex could be larger, a bit bit.

    Ira Palti -- President and Chief govt Officer

    a little bit greater.

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    And only one final enviornment of questions. This one for you, Ira. when you study taping out your 5G SoC chipset, how rapidly do you see productizing that? Is that whatever that you'll be able to see a number of products through the end of the 12 months or is it first half of next year? And as you put that in entrance of your customers, does that speed up your pipeline era? Do you suppose that you are going to see a step-up well known because the portfolio expands?

    Ira Palti -- President and Chief govt Officer

    we are going to see step-up sought after as the portfolio expands. we have now already put it up in front of clients. We do, incidentally, predict to see products best toward the end of next 12 months or starting of 2023. Let's be aware, between tape-outs and, I consider, then having the chipsets here after which turning into products, it's continually an 18 months classification of length, at the least on items accessible.

    however I think that the story there is a part of the continual innovation we're doing simply with the different products that we now have on the table in actually developing the demand and preserving our management place in the market versus all of the opponents. once more, I suppose we mentioned remaining time once we were on the name that we're disruptive. we have achieved many times the disruptions out there and additionally placing it on the table. Even our existing product set, the IP-50E i mentioned on the call and IP-50C, are disruptive in the market and permit capabilities nobody else has.

    like the 20 gigabit and the 50E product or the very broad channels we've within the 50C, all of these are required nowadays for 5G. and that's the reason what's constructing the 5G design wins and the things that we're doing. here, the chipset is constructed for the next step available, again disrupting as a result of let's be aware, 5G isn't a onetime experience. it be likely over the next six or seven years as we circulate forward.

    and that's the reason the place the subsequent SoC comes in with 40, 50, 100 gigabits within the year and capabilities once we see issues coming in on the table and doing the disruption once again. And it be a continuum so that it will power the company. And going returned to your questions, you are 100% right because the operators are seeking somebody who'll do the lengthy-term trip with them. it be the previous day, we rode with them.

    New ones, we're -- they're on with us. They want the foremost know-how, better of breed these days, but they need to be certain that, that best of breed stays with them for our subsequent step as neatly. So that is the place the total story sits on the table. And this guy right here must make this reality within the beginning, appropriate? sure?

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    neatly, with that, thanks very a good deal, Ira. And again, Doron, congratulations.

    Doron Arazi -- Chief government Officer

    thanks very much. Thanks.

    Ira Palti -- President and Chief government Officer

    Thanks, George.

    Operator

    [Audio gap]

    Unknown speaker

    hello. are you able to hear me? hello.

    Ira Palti -- President and Chief government Officer

    hi, Lance.

    Unknown speaker

    Congratulations on the quarter. It looks such as you guys are executing really well in a challenging environment. And incidentally, thank you for doing this name on Zoom. I feel here's so lots more straightforward than doing the dial in and then waiting for the operator and every thing.

    So kudos on that. My query is definitely simply on the steadiness sheet. I noticed that money accelerated a little bit despite the fact that you guys are burning a bit money. So possibly, you have some sources of liquidity but $33 million of cash doesn't sound like some huge cash to me.

    And so i am just questioning if you may communicate to your extra sources of liquidity. Is Ceragon accurately capitalized given what I feel we all agree is an exquisite meaningful chance here on the introduction of 5G?

    Ran Vered -- Chief fiscal Officer

    hi, Lance. Thanks [Inaudible] So simply additionally to touch upon the Zoom call, or not it's now not only Zoom name. all of the name become achieved by using 5G handset on 5G community. So here's really unique -- so just to start with, so sure, we now have $33 million cash attainable but we even have pretty much $40 million of available cash revolver that we can utilize for anything else that we'd like to.

    The banks are basically -- only a reminder, we had $40 million of credit score with the banks, which we accelerated during the corona disaster ultimate June to $50 million, and we utilized just $11 million out of it. it be greater than enough for working capital needs. that you could see that we additionally improved working capital for the remaining year fairly dramatically. We decreased our inventory ranges.

    We more desirable our R&D. So we reduced one of the crucial payables. So I suppose that the balance sheet and the working capital is relatively effective, and we now have the adequate liquidity to operate.

    Unknown speaker

    outstanding, guys. Thanks and congratulations once again.

    Ran Vered -- Chief fiscal Officer

    Thanks, Lance.

    Ira Palti -- President and Chief executive Officer

    Thanks, Lance.

    Operator

    Our next question is from the line of Alex Henderson. Alex, please promote your self and unmute it.

    Alex Henderson -- Needham & Co. -- Analyst

    extremely good. thank you. I simply wanted to move again to the new equipment-on-a-chip. I expect that you've shown this know-how to your service suppliers.

    and that i'm certain that they are very enthusiastic about it. in order we're considering concerning the timing of availability, i might think that the question then would become to what extent the technology that you're imposing on this product could be directly tied into the IP-50, and to that extent, in a position to being upgraded in the box as part of that deployment that can also go on in entrance of the supply of that. So is this technology then already impacting the demand, and for this reason that there will not be a kink within the curve as it turns into purchasable or should we think of it as there may be good demand for what we've today, however they'll look ahead to this thing and i bet -- there can be a bit little bit of a dip because it turns into well-nigh accessible in first half of '22? How may still -- do you believe the purchasers are going to behave relative to the availability of this product?

    Ira Palti -- President and Chief executive Officer

    ok. on account of the way and experience during the past of relocating those, I don't expect a dip. Let's remember that we're continually with applied sciences about 12, every now and then 18, months ahead of the curve on the need with the customer. So what will happen is an identical method that we noticed.

    So most of our earnings these days are with our IP-20C product, which is six, seven, eight years ancient. And riding the networks, sure, we superior the product. We got here out with the 50C with additional capabilities toward the edge of 5G, which meets the present and possibly the subsequent three or four years of our leading deployment of 5G, and it be developing the demand there. The subsequent set of items, which are usually not the IP-50, select a name for it.

    and then we've inside names for it, but that would not depend, a good way to come out. we are going to be forward of the curve for requirements of 50 and one hundred gigs during this yr as 5G base stations. each macro, small cells and others will require those. So I see those as layering on proper and truly pulling the demand accessible.

    So I don't predict a dip.

    Alex Henderson -- Needham & Co. -- Analyst

    So 2nd query is, and i remember very incredibly getting very excited concerning the 4G upgrade cycle years again and you guys had probably the most superior product with all of the bells and whistles. And what ended up going on was people failed to wish to buy bells and whistles, and it put gross margin pressure on the company, which then you definitely had to persuade them that they weren't going to get discounts and it brought about a huge dip in your enterprise quickly as people tried to gain your availability. And the result of all of that changed into a bit little bit of a disappointment on that product cycle launch for a few year and a half earlier than the valued clientele decided that you simply weren't going to collapse. And by the way, that changed into the right choice now not to cave in.

    but to that point aside, are we at ease right here that the 5G cycle is one which wants these performance capabilities and that they're willing to pay for it?

    Ira Palti -- President and Chief executive Officer

    The reply is yes as a result of -- and that is the reason why I stated, I consider, a minute ago, that we nonetheless promote lots of IP-20C. If a customer does not want the functionality, they want to dwell with much less of a functionality, IP-20C is an excellent horse to journey. and that i consider the americans who need the quickly horses for 5G are attaching themself to the IP-50, and i see that in distinct areas around the world, and that's what we spoke of.

    Alex Henderson -- Needham & Co. -- Analyst

    acquired it. thank you. this is decent adequate an answer for me.

    Ira Palti -- President and Chief executive Officer

    thanks, Alex.

    Operator

    Your next query is coming from the line of Gunther Karger. Please go forward.

    Ira Palti -- President and Chief govt Officer

    Gunther, are you on?

    Gunther Karger -- Northern appropriate Capital -- Analyst

    sure. can you hear me?

    Ira Palti -- President and Chief executive Officer

    sure.

    Gunther Karger -- Northern right Capital -- Analyst

    extremely good. first of all, Ira, thanks for a fine carrier, getting the company via tricky times. And Doron, welcome once again. good day.

    How are you? And --

    Doron Arazi -- Chief executive Officer

    Very well. Thanks.

    Gunther Karger -- Northern right Capital -- Analyst

    The question I have is involving the cash, because it was outlined earlier than, just a little of a $10 million reduction. i'm a bit unclear as to the place that discount came from.

    Ran Vered -- Chief fiscal Officer

    There isn't any $10 million reduction, Gunther. On the first quarter, we had money breakeven. if you take the money from investing and operation actions, it become down $3.7 million, which became offset through $3.7 million money from financing activities. All in all, net money position of cash minus the loans that we now have stayed the same in Q1 as in q4.

    Gunther Karger -- Northern correct Capital -- Analyst

    thank you. And the other question is the verticals. Do you see -- you outlined this really in the presentation. Do you see a growth in the verticals in quite a few markets going forward?

    Ira Palti -- President and Chief govt Officer

    The reply is yes. We focus on in the conversation principally on the mobile but we do put an enormous effort round verticals. we're inserting a huge effort in verticals additionally primarily in the North American market but elsewhere. look at -- we introduced last quarter a deal in Africa, and we're announcing elsewhere.

    The market verticals, incidentally, behave very differently. What we sell in the verticals is our device however with lots of integration services and capabilities to basically give a working community. So the pleasing half that we delivery seeing, youngsters verticals don't seem to be there yet, they've began talking about 5G and being capable for 5G. And the capabilities and journey simply with the mobile operators on 5G put us in an excellent place to birth taking market share there, above all in the U.S.

    market.

    Gunther Karger -- Northern right Capital -- Analyst

    All right. and finally, there turned into a question involving 5G. Do you see an early circulate towards applications within the IoT area?

    Ira Palti -- President and Chief government Officer

    The mobile operators that we work with these days are investigating all areas of 5G. pick the operator, you'll see various things that they do with 5G. some of them will go for cell, and a lot more, broadband. a few of them do play with IoTs, some of them play more business and industrial in the means they strategy the market.

    but on the conclusion of the day, an identical know-how, a bit bit of diverse means you spread the network and also you do issues but otherwise, all of them force the 5G necessities.

    Gunther Karger -- Northern right Capital -- Analyst

    thanks and better of luck.

    Ira Palti -- President and Chief govt Officer

    thank you very plenty, Gunther. adequate. i need to close the name. First, i'd like to thank Ran for being with me, for Doron being with me, for both of them for studying new hints and doing it on 5G and mobile and video.

    It changed into no longer easy to try this transition. I appear forward to hearing from all of you next quarter with us. And in between, if any individual wants to ask questions and phone us, please believe free. thank you very a good deal.

    Operator

    [Operator signoff]

    duration: fifty eight minutes

    name participants:

    Maya Lustig -- Investor members of the family

    Ira Palti -- President and Chief executive Officer

    Doron Arazi -- Chief executive Officer

    Ran Vered -- Chief monetary Officer

    Alex Henderson -- Needham & Co. -- Analyst

    George Iwanyc -- Oppenheimer & Co. Inc. -- Analyst

    Unknown speaker

    Gunther Karger -- Northern right Capital -- Analyst

    more CRNT evaluation

    All revenue call transcripts




    Whilst it is very hard task to choose reliable exam questions and answers resources regarding review, reputation and validity because people get ripoff due to choosing incorrect service. Killexams make it sure to provide its clients far better to their resources with respect to exam dumps update and validity. Most of other peoples ripoff report complaint clients come to us for the brain dumps and pass their exams enjoyably and easily. We never compromise on our review, reputation and quality because killexams review, killexams reputation and killexams client self confidence is important to all of us. Specially we manage killexams.com review, killexams.com reputation, killexams.com ripoff report complaint, killexams.com trust, killexams.com validity, killexams.com report and killexams scam. If perhaps you see any bogus report posted by our competitor with the name killexams ripoff report complaint internet, killexams.com ripoff report, killexams.com scam, killexams.com complaint or something like this, just keep in mind that there are always bad people damaging reputation of good services due to their benefits. There are a large number of satisfied customers that pass their exams using killexams.com brain dumps, killexams PDF questions, killexams practice questions, killexams exam simulator. Visit our test questions and sample brain dumps, our exam simulator and you will definitely know that killexams.com is the best brain dumps site.

    Is Killexams Legit?
    Yes, Killexams is hundred percent legit and fully reliable. There are several attributes that makes killexams.com unique and authentic. It provides knowledgeable and hundred percent valid exam dumps containing real exams questions and answers. Price is really low as compared to almost all of the services on internet. The questions and answers are up graded on normal basis along with most latest brain dumps. Killexams account launched and products delivery is extremely fast. Document downloading can be unlimited and extremely fast. Support is avaiable via Livechat and E-mail. These are the characteristics that makes killexams.com a sturdy website that supply exam dumps with real exams questions.



    Which is the best site for certification dumps?
    There are several Questions and Answers provider in the market claiming that they provide Real exam Questions, Braindumps, Practice Tests, Study Guides, cheat sheet and many other names, but most of them are re-sellers that do not update their contents frequently. Killexams.com understands the issue that test taking candidates face when they spend their time studying obsolete contents taken from free pdf download sites or reseller sites. Thats why killexms update our Questions and Answers with the same frequency as they are experienced in Real Test. exam Dumps provided by killexams are Reliable, Up-to-date and validated by Certified Professionals. We maintain Question Bank of valid Questions that is kept up-to-date by checking update on daily basis.

    If you want to Pass your exam Fast with improvement in your knowledge about latest course contents and topics, We recommend to download 100% Free PDF exam Questions from killexams.com and read. When you feel that you should register for Premium Version, Just choose your exam from the Certification List and Proceed Payment, you will receive your Username/Password in your Email within 5 to 10 minutes. All the future updates and changes in Questions and Answers will be provided in your MyAccount section. You can download Premium exam Dumps files as many times as you want, There is no limit.

    We have provided VCE Practice Test Software to Practice your exam by Taking Test Frequently. It asks the Real exam Questions and Marks Your Progress. You can take test as many times as you want. There is no limit. It will make your test prep very fast and effective. When you start getting 100% Marks with complete Pool of Questions, you will be ready to take actual Test. Go register for Test in Test Center and Enjoy your Success.




    JN0-332 online exam | EX300 dumps | CWNA-108 practical test | PCCSA braindumps | 500-440 cheat sheets | ACE-A1.2 free pdf | NSE4_FGT-6.2 PDF download | IAPP-CIPM questions and answers | NS0-161 free pdf | 150-130 braindumps | H12-224 braindumps | ITIL-Practitioner actual Questions | Servicenow-CIS-SAM exam tips | 300-625 practice exam | 2V0-21.20 exam dumps | ASVAB-Automotive-and-Shop braindumps | MLS-C01 study guide | 701-100 cheat sheet | HPE6-A82 online exam | MB-300 exam dumps |


    NQ0-231 - 3G Radio Network Planning PDF Braindumps
    NQ0-231 - 3G Radio Network Planning test
    NQ0-231 - 3G Radio Network Planning Latest Questions
    NQ0-231 - 3G Radio Network Planning Question Bank
    NQ0-231 - 3G Radio Network Planning education
    NQ0-231 - 3G Radio Network Planning Practice Questions
    NQ0-231 - 3G Radio Network Planning techniques
    NQ0-231 - 3G Radio Network Planning book
    NQ0-231 - 3G Radio Network Planning study help
    NQ0-231 - 3G Radio Network Planning questions
    NQ0-231 - 3G Radio Network Planning learn
    NQ0-231 - 3G Radio Network Planning course outline
    NQ0-231 - 3G Radio Network Planning syllabus
    NQ0-231 - 3G Radio Network Planning exam Cram
    NQ0-231 - 3G Radio Network Planning answers
    NQ0-231 - 3G Radio Network Planning exam format
    NQ0-231 - 3G Radio Network Planning cheat sheet
    NQ0-231 - 3G Radio Network Planning exam Questions
    NQ0-231 - 3G Radio Network Planning exam contents
    NQ0-231 - 3G Radio Network Planning Practice Test
    NQ0-231 - 3G Radio Network Planning Questions and Answers
    NQ0-231 - 3G Radio Network Planning Question Bank
    NQ0-231 - 3G Radio Network Planning exam syllabus
    NQ0-231 - 3G Radio Network Planning Question Bank
    NQ0-231 - 3G Radio Network Planning test
    NQ0-231 - 3G Radio Network Planning testing
    NQ0-231 - 3G Radio Network Planning PDF Dumps
    NQ0-231 - 3G Radio Network Planning exam format
    NQ0-231 - 3G Radio Network Planning real questions
    NQ0-231 - 3G Radio Network Planning test prep
    NQ0-231 - 3G Radio Network Planning Practice Test
    NQ0-231 - 3G Radio Network Planning boot camp
    NQ0-231 - 3G Radio Network Planning PDF Download
    NQ0-231 - 3G Radio Network Planning syllabus
    NQ0-231 - 3G Radio Network Planning tricks
    NQ0-231 - 3G Radio Network Planning Study Guide
    NQ0-231 - 3G Radio Network Planning information hunger
    NQ0-231 - 3G Radio Network Planning learn
    NQ0-231 - 3G Radio Network Planning Real exam Questions
    NQ0-231 - 3G Radio Network Planning cheat sheet
    NQ0-231 - 3G Radio Network Planning boot camp
    NQ0-231 - 3G Radio Network Planning guide
    NQ0-231 - 3G Radio Network Planning PDF Dumps



    Best Certification exam Dumps You Ever Experienced


    NCS-20022101010 mock questions | SDM-2002001030 test practice | SDM_2002001050 Free exam PDF | 4A0-N01 free online test | NO0-002 dumps questions | NQ0-231 braindumps | PDM-2002001060 exam tips | SDM-2002001040 exam questions |





    References :


    https://www.4shared.com/video/Hf6PfqCNea/NQ0-231.html
    https://arfansaleemfan.blogspot.com/2020/08/nq0-231-3g-radio-network-planning.html
    https://youtu.be/RPhSZ55fANc
    http://ge.tt/3LQIhA83
    https://sites.google.com/view/killexams-nq0-231-exam-dumps
    https://www.clipsharelive.com/video/4437/nq0-231-3g-radio-network-planning-question-bank-with-real-questions-by-killexams-com
    http://killexams.decksrusct.com/blog/certification-exam-dumps/nq0-231-3g-radio-network-planning-2020-updated-dumps-by-killexams-com/
    https://justpaste.it/NQ0-231
    https://justpaste.it/NQ0-231-1
    https://files.fm/f/8p487xbqs
    https://ello.co/killexamz/post/xizsyn1yw43t04tzvk0ovg
    https://killexams.com/pass4sure/exam-detail/9L0-420
    http://feeds.feedburner.com/KillexamscomNq0-231BrainDumpsWithRealQuestions
    https://spaces.hightail.com/space/v47qz1ixkg/files/fi-2e6460fe-05e6-419a-bcf0-d71f87bac7fd/fv-d015b373-6a2a-44dd-9151-e6e7f37ec901/3G-Radio-Network-Planning-(NQ0-231).pdf



    Similar Websites :
    Pass4sure Certification exam dumps
    Pass4Sure exam Questions and Dumps






    Back to Main Page