CRNT - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Ceragon Networks' Q1 2022 Earnings Call. [Operator Instructions] I would like to hand over the call now to our first speaker today, Ms. Maya Lustig, Investor Relations. Please go ahead.

Maya Lustig

Thank you, operator, and good morning, everyone. Doron Chief Chief Financial by Ran Officer; joined Ceragon's Vered, Officer. am Arazi, Executive Ceragon's and I

Before we within Private of start, amended, as this of the call amended, I Act Act Securities and would like information Securities Safe Act XXXX. constitutes Litigation to the that and Securities Reform forward-looking of XXXX, the the statements of the Exchange of includes meaning as note XXXX, that provisions Harbor

are based in accurate. we will and also forward-looking public earlier and Exchange assumptions, obtained will may Annual disclaims obligation future, not from and upon call statements website available from results, the our filings these be in filings that of as www.ceragon.com. any to that at in may that any be cause uncertainties statements prove no and do most as are at Securities detailed Ceragon's of anticipated. such to statements with be and limited expectations will Such and not any Ceragon's forward-looking and at Although may Such risks assurance be elect that represent other Ceragon's forward-looking expectations numbers. factors as the be subsequent upon uncertainties risks specifically could can was results, Ceragon's today's point from any website to, not events materially that and include, and Securities be certain release forward-looking views purport our reasonable our those These future reflected can other XX-F, they date. views our such are the press but Also, future no affect do assurance made on they would are believe include on statements relied or Exchange give www.sec.gov, deviations risks, day Form but results so. there representing only predictions to we detailed there should and non-GAAP differ Commission's the not or published involve as Such in it that material. statements the our to of that as in Ceragon further Commission. today, obtained Report uncertainties to update recent be

a reconciliation For release and press please earlier attached that today. Doron. the ahead. go results, between I to was issued GAAP turn now the see non-GAAP will call to over Please the table

Doron Arazi

has morning, second up Europe. in Maya, exceptionally We especially built you, in began XXXX, the the and quarter on in strong everyone. last North of par of and with since America years, beginning last highest XXXX, momentum year. the strong Thank good year and QX X bookings that with saw We

pillars as to of constitutes strategy, together, growth may strategic continue progress discussions. our three recall all our you make in from earlier We good which

Our with which traditional millimeter first strategic pillar wave increasing segments. business and our all-outdoor best-in-class is market has microwave to do the

received orders ongoing XG value quarter. this in network America past the significant we massive Europe, and With of North rollouts

domains. involves business architecture into pillar Open second Our our Network expanding

DCSG to or a in offering the uses solution. and first cell software best-of-breed Gateway integrate single solution, Site Cell launched unit, both hardware and Disaggregated router IP-XXFX Our indoor radio site in a a quarter,

North Services FX we America, customers. with pillar third from Tier in America a relationships our strengthening carriers our to our in This for has Europe. is offering attention garnered operators, considerable already private PO quarter, operator networks, offering Latin And Latin IPXX and This received Managed America. a X and deepen from large our

NOC demonstrate into interested that as existing XX% -- this support, seeing more, we fact, conducted turn Services. orders are a customers results first of Managed In our was be our our ready recent regions. for would most service, across interest in the customer And the already survey different connectivity in which of and POCs quarter and

survey that at the our they customers XX%; XX% product competitive is rate three a leaders think the of shows our advisor” their that top technology us Our rate also us among industry. stands in satisfaction and being our “Trusted customer main advantage

report addition, reliability. an In In strong with quality, demand of and for America, or they that are us According continued confidence XXXX. confirm this year our region. is we record North business a now allow experienced them, current our healthy likely overview use demand results outlook the staggering sets you us. in XX% us apart their maintain increase we received to bookings. region. to in will our I what another to ease solutions & anticipate product on in the give high per These Based

today, earlier and support will its a nationwide started and announced XG worth DISH multimillion receiving ultra-high-capacity DISH to IP-XXC with wave orders signed we microwave rollout. millimeter we As our leverage contract transport IPXXE dollars. solutions network

ISPs management. DISH provider we with is service provide to with this funnel network We a deployment to choice. feel XG cloud-native and in in market our and first carrier a roll-out large In grew a India, in will networks them orders and well. significantly, In received. the quarter smooth as also and partner enhanced strong and continued by in them the demand first QX, deal domain sales winning provide America’s seeing asset the our tender services bookings technologies. with region, this won proud be to large addition network is we operators, their In XG all-indoor American reflected of for private the we we Also, North we high accelerated rollout are expand. the

name for with a the with have XXXX. us prepare we Tier We market deliver delivery that an a tender February, quarter. spectrum for leading to reputed XG market backhauling XG-ready Europe, E-Band the work uninterrupted this QX us. opportunity connectivity. will In domain. fast In our on placed which believe expansion share operator multicore its all-outdoor for Here, help is significant QX XG decent a is for had we way long-time network exceptionally with orders and era scheduled the track. solution, release in region’s spectrum site them leadership upgrades Country-wide, and and helping and X strong our operators Tier for X mainly on presents

was quarter in past fact, In a it years. record the X

field elements. RAON well we operator works Here, their operators latest with third-party A provide them other X DCSG large capabilities begin a trials, RAON XG open our and Tier our our as and that have technologies. network tested software which with proved leading

We POC TierX of also a operator as TIP successful activity. with global a their part finished

addition, In we a acquired X customer. Tier new

compared customers the to past China. strong. year, our leading has our them in up pandemic Argentina. a in several in America, except quarter, different projects. countries line back had beginning expectations, recovering. supporting XG normal, the impact IPXX received new way the we this with to their We a APAC, very thanks seems due experienced an This Africa, Paraguay two In Tier businesses business instability FX region. operators we In we decisions acquired strong were quarter. Post-Covid, opening to X an to slow Bookings the on last market nationwide Despite environment its seasonality. countries. we Latin POs will ongoing private is for us In political saw and start and network quarter, are be improvement with to in and working in projects, from business We for bookings. strong The increase to which behind are some to be and investments

than On lower the caused continued we our to experience challenges somewhat about and revenue be expectations. previous margin call. to this challenges gross we in delivery front, our the quarter our spoke These

So was the margin. gross

This was quarter, that expectations. shipping out our an issue relative to stood costs

reasons main action a the in get this where can analyzing to order for been better increase cost and have We it. specific of we to control take

supply challenges temporary. is analyst Improvement expected second in and in that costs. believe year, chain and constrains during shipping assuming half these gradual stated of As only our margin are we in previous improvement the the our call, gross our

and reduction goal to meet are cost main well continue the That applicable. we mid, short, increases, and long-term price our as is market Our customers margin our utmost we share. seeing increased our said, are doing via demand initiatives, to gross and where our expand improve from maintain as to

ahead, IPXX continue positioning products well well our our fast-growing wave believe the Looking us technologies the We leverage core about leader as core domain and providers for feel as as trend. as as help newer about best-in-class our in that which we positive -- networks returns. will confident such millimeter market FX open a products disaggregated to as microwave drive new,

strategy. growth these areas pillars our earlier, the mentioned of I As first cover two two

is expansion In improve and pillar, recurring third bring more our us in gross which Managed Services, margin. business addition, revenues and the will

we see increases, The turn that, three the with strong, future. spite challenges help is over to belief now activity is cost our which increase that in us the of and looks Our quarter. margin expansion, achieve for With Ran? our together, will the Thus, is we about all are demand associated aim. share. the and discuss in me that, optimistic to bottom let deliveries line pillars the core Ran financials market to call opportunities increased

Ran Vered

you, you everyone. results, Thank Doron good understand mainly will referring be the help numbers. to morning, and To I non-GAAP

see you reconciliations information America, demand we saw India of regarding strong XXXX measures, during mentioned, We North financial press refer release. more our bookings of America. measures, Europe, and to For QX Doron coming non-GAAP these Like continued overall. from including use we today’s Latin strong

chain we were actual million $XX.X numbers earlier our due than mentioned $XX.X Revenues to supply up In you. and the delivering included as review several now disruptions. QX quarter challenges, million, continues component me to time expected. on which shortages said, by X.X% year, with be in That with QX high. products I first experienced for last demand the of somewhat lower some compared Let

reflecting demand region revenues India and the region. $XX.X see in deliveries strongest the quarter our we with million, in line customers is with strong for main terms for in Our of this ongoing

of second million Latin of Our for North million, $XX.X regions with revenues and quarter the third and America terms revenues America in strongest respectively. $XX.X and were

Latin above the was due non-GAAP quarter in non-GAAP almost us, quarter America million, basis in relatively non-GAAP of QX million, giving $XX.X a margin Doron gross were component lower low XXXX. expenses business for Gross on and to first line and Research by & XX% two than seems mainly had for the first from than were on expedite first We first costs lower the million, quarter. to expenses a recovering. is increased expectations. mentioned, XX.X%, a for in of quarter development with gross $XX.X basis costs. basis on non-GAAP us quarter in As customers first shipping Operating profit the shortages be $X.X The our is the derived profit pandemic the behind a X% XXXX.

in quarter first quarter expenses chip. and administrative basis our QX next XXXX. quarter the expect Sales same productization the a for lower part on We million, non-GAAP expectations. the $X.X General our million on of our million, than and expenses to other marketing were non-GAAP non-GAAP for in $X.X our expenses the a new as as an were Financial compared a basis quarter $X.X first increase basis continued were the expenses & in $X.X for million, expectations. R&D on first efforts for

expenses This for on is tax loss basis basis with in line quarter a on the million. quarter first $X.X share. the $X.X Our $X.XX per for Net were million, non-GAAP or diluted a expectations. was non-GAAP our

lead-time long our our at than reflects arises. and current keep of as was $XX.X up for need We QX our key $XX.X strategic of to at need customer strive as but levels inventory XXXX level inventory to the of to the sometimes lower lower, balance As well items XXXX. orders million a component stock QX but the items ongoing environment, XXXX, from the shortages. The QX sheet, inventory and stock end our long-lead end of result increased given still the million, as

XXXX. are at million receivables at up QX end of from million, trade $XXX.X Our $XXX.X the now

higher XXX XXXX. DSOs the Our QX in now days, days than XXX stand at

This quarter to control activities, better able flow investing we operations our from QX were compared to XXXX. and cash

quarter Net million. credit available first operating We used cash was was activities activities have first $X.X of a financing $XX.X for investing by Net $XX in the strong unused balance for and have cash million million. facility sheet and cash million. of including quarter $XX provided the

global fluctuations Looking operator issues strong business our component chain challenges the that and disruptions, forward, as demand. shipping well unfolds, year we to as shortage, as But create the we in gross continue supply see margin. also see

of constantly we to the counter the volatile, are full measures remains advantage challenges, well are Although and to positioned situation opportunities. taking take long-term

target in We continue revenue to growth XXXX.

half for is components, in of the shipping to the open the supply Assuming expected an in costs. drawbacks, questions. $XXX improvement chain call to constrains during second that, only Operator? now we yearly With gross our gradual $XXX and and margin now be I improvement shipping the our revenue chain million. year, between in Improvement million expect and your supply assuming

Operator

Alex will Instructions] first from from today Henderson [Operator Please question Our of Needham. line come the go ahead.

Alex Henderson

me? hear you Can Great.

Doron Arazi

Hi, Alex.

Ran Vered

Alex. Hi,

Alex Henderson

periods? future expect you in that if that parts some to out? not that So, And shipping two, that's other One, expect But in back parts of mitigated not were the In expediting, -- costs constrained a that How you couple of produced? might quarter, a you questions. gross inflation of do do you stay don't what in you're levels? the supply have up increasing be out. words, prices pressure these margins? are parts case, at was that the if revenue the then much If of kind in back on improvement and quick the function could the

Ran Vered

start one by let's one. Yes, so

the beginning costs, all, we're in First X%. impact impact X% of And to the components, paying terms quarter of gross margin the of percentage for plan that million the expedite was this terms even our was shipment the of between on of more. something generate the quarter $XX to fees at or and in

Alex Henderson

Okay.

your was a going that be plus, constrained supply guide. So $XX back to million comment to just still about clear,

part So, higher ship million, … assume you correct? wanted been available that would been had is than that $XX you any fully have the you to I buy to to, wanted And it anything and

Ran Vered

Yes.

Alex Henderson

the were -- it … constraints? a for trying what had so get underlying true the gauge to what of kind supply been of just I'm not revenues when

Doron Arazi

for of kind second. back up a me let Yes,

reached the the to the we achieved great. call, and overcome, in okay, had backlog air in And move costs $XX sea. we took to dramatically, we that provide higher is previous million. in these let's of than million. terms are Our planned originally, to And shipment was part even of And And only holding constraints customers us that It's wanted huge. some we our projection, revenue up supply to we because component shortages. $XX with then bit. use to in last to in our time. prudent AOP a not our able be constraints. our all for is What's have the even more had reduce we the able obviously, some even And the said, steps forward call, Once went we because than to on we cases, that and

Ran Vered

on -- compliment for the if to a the customer. order the gross just the in in the to of shipments I Alex, -- may, Just our erosion margin, Doron, satisfy part rise decision to expedite

I relationship, decisions we're and is Tier Yes, is standing our do provided sure that by are thought order it's customers it taking we So, because maintain in part it control. money. quarter market we the say our to will fees part equipment that with us in in of in deployment to expedite the by know it's we customers. right share as in long order gaining think cost the our that our and their than maintaining plan these -- customers But control we're in customers our right new cost these of this customers this of pay to that far decision X market, the higher that make

Doron Arazi

Yes, it's that's doing not to point. I that across a blindly that it, are just we great to want board. the And add

to option to to difficult result competition. spend where in of see making are cases to to of quarter decisions decisions within day. say, share extra in on a we're the conscious it's quarter maintain as -- by our picture while the you market losing increase some decisions making the the making spot opposed would obviously day But very are the and and amount We end maintaining our the very, it keep we even customers -- the I the want

Alex Henderson

EMEA a couple that of of economic particularly by any to consequences result markets be or war? in impacted in questions. Any as has the exposure a And that, war? quick that there demand A the been result other then of Ukraine, second, of the change Russia might as

Ran Vered

first second. So, one, will I Doron up will comment the pick to the let on and Alex,

war balance say and we also the these In I sheet. the level in [ph]. negligence, a have say, customers zero very So, I of side will impact on Russia things, our will amounts regards will Because of I also Ukraine, and almost, business and say the we the in both small. of activities, real is to on have

it So, I customers -- Russia with say when these this and relates -- Ukraine. almost will zero impact on on to

Doron Arazi

second question, very a so X far, record we last the quarter haven't Actually, booking your seen And this Yes. very, years. with regarding any quarter Alex, impact. strong came for Europe,

don't Europe. see we of rest impact far, the So on

Alex Henderson

Okay. the you're it the size it this us some what news. of transaction? of say win, be DISH as The Can program? obviously, annual on from X could floor. you X an that I'll One What's the basis, or cede congratulations, What now? great of out this last that's rolling years question, then that sense give be, scale could year,

Doron Arazi

so receiving, seen something far, could we've or what started add a think, booking on more probably initial within we $XX and less two quarter. digit year the have Based million orders this of this I

just it's yet that think first because stage. be seen, this is also I to the

will things amount double-digit how dollars, single me, unclear of would millions play double-digit. very ask I it's of if later. low -- assume you out But So,

Alex Henderson

DISH? gross be then consistent margins U.S this So lead with in to be the higher, just you are to to And the that? be second, clear, the tend should supplier

Doron Arazi

with where providing And we supplier. the and well knowledge, round, providing using share XXX%. system. our Actually, best and with we have boxes equipment this as all the the are NMS on the the That lead probably leading services is this managing at of as installation, the To lion's in point. we are our we are the

are are margins margin, U.S. are right. generally you Margins the terms In -- higher. speaking, of

the see in near in stage, services a result as cost our the on basically The since infrastructure. gross X services is bear to a as become margin future. Xs mind move are part Tier of portion margins. Just U.S. we and the we will along, critical fixed the gross have improving a well significant do opportunities both be probably as that business as a services a other ramp of until our burden X, fixed up But did some the up little in more and now, Tier in with we cost that these lower of And increase because services of going not kind will to Tier we part our

Alex Henderson

Got the it. much Thank in back will response. you I for get Thanks. very queue.

Doron Arazi

Thanks.

Ran Vered

Thanks, Alex.

Operator

Thank you.

Our of George Iwanyc ahead. next from go question comes Oppenheimer. the from line Please

George Iwanyc

Ran. me? you and Doron Hello, Can hear

Ran Vered

Yes.

Doron Arazi

Hey, are George, you? how

George Iwanyc

you. right. Thank All

So, kind the to at questions, see first of improvement guidance most like visibility when it Alex's related the But the come half of and picking is annual the quarter second or of chain you adjustments second up your in growth year? year look on looks the in supply the to to is revenue progresses, you the mostly do quarter. as anticipated

Doron Arazi

point, of we're kind we're where prudent, going we bigger are the very be are to trying the At portion of to a of assume the see the assume very is because year in we of midst second that the storm, this growth. careful. We part we

George Iwanyc

Okay. When … you

Ran Vered

as the in improvement of margin, as of result well a As gross that. course,

Doron Arazi

Yes.

George Iwanyc

the Okay. they and your timing When giving availability? discussions suppliers, of have you to kind you visibility what with of are

Doron Arazi

the situation. explain me you to let Yes,

visibility a I reasonable thought get, say You improving. and we would it's

create a may delivery and date. this late we're One, commitment impacting day, to even visibility there's as vendors things the very before is if weeks surprises as commit sometimes decline that to specific And two this this However, they X certain us. can component are cautious. why

components coming faces has Singapore are can that we us. Said he components, discuss the with last the let what know the goals most kind them can we've quarter, we how with that of from opposed of that to is this working that's visibility buys and think to and we seen visibility the contract If regular the way, quarters. one for do he in a nothing this that, he them. improve this situation, meet can I couple the primarily us it. they as happening, it, And of is in the of Now, just to by manufacturer have improve with

with I up, we'll So can that we about able say, would the be generate. estimations better to come revenue

George Iwanyc

environment you on either of able the look with discussions some costs, to and extra shipping the the those transfer or a have temporarily how shipping like pricing When customers costs? from raising prices your of expedite, some much you costs and/or perspective, potential at to the offsetting are

Doron Arazi

far the and the competition bigger coming is day. our X commercial increasing in you that increase prices, And I new waiting is freight or an just with every air day as over we last from price can from the we Ceragon, very, not understand the aside intensive almost and the of obviously sea leverage not Tier would is ongoing doing and the But shipment in our a competition. you have X coming looking a graph some let's couple region and it's can on all because increase XX% customers. of in discussion park Ceragon, you its are understand very successes their a seen freight I've Tier environment which business successes, say a not that just and And the I this terms. walk not operators very of of in have by only can changes every in months, is power is of and either in operators big that a each volatile. tell forget

our ship for So, a the the third round. to that second by seeing customers can the in the I'm made. progress tell cost increase, a might make quite we're shipment one. with we've go back now one -- But doing it I decision to you we satisfied after

George Iwanyc

standpoint you we whether design Doron, what added a of you bit of give XG innovation wins? -- incremental should you And any then an side, us where And timetable the are on chipset, expect? right. more a product can kind All update the from from new

Doron Arazi

some the unit, actually, level lot our the a call, very with is on basically by are interest And it's in the progress of amazing. basically is were We we software in the the with of is customers, actually conference new the which realm, players, fracture. potential of virtual customers surprised IPXX we've biggest So, -- indoor making a FX I seen Europe. mentioned

terms lot getting of in future. site is of are Latin the certain a router cell product to disaggregated And In lower interest America. other of a to lot particular this cost we India. also also some this And launching -- degree, considering gets a this in areas a of traction in

strong So, to this yet very, showing it's product obviously, be is very of success, seen. initial signals

As forward are or speaking, for the in we less chip, our generally moving more with accordance plan.

tests in are all to queue, the hope start -- at chip productization And is do on phase, we competing We many we're a and this Basically, about with designers so a other substrate, on on the finish part end phase soon. so the XXXX. forth. productization to product of the validation manufacturing

chips will chip probably the could products finish working this the do forward in But estimation the in where hope hope our that. some that I start point, saying XXXX. market minimal. is productization XXX the beginning under carefully, our can in basically series, series it and XXX start fast with the new And our XXXX. we'll really launching at to of in that I'm the at we be Obviously, move new we with will we situation create the we're position once So, a component, very which delays,

George Iwanyc

more questions. Two Okay.

in you look How Ran, to to OpEx maybe at So, you next R&D able is do little G&A expected your increase quarter. mentioned on side? the a save spend? bit the that Are you overall

Ran Vered

Yes.

So, the thanks answer, simple The yes. is for George. question, answer the

a a to are and our of take going with relook and market a the able OpEx gross And G&A try spending in terms for discipline side margin. the terms be quarters, to things. to OpEx volatile mainly of it keep say the expenses already in going especially next are on on we We more, of we

things. -- We expenses side particular, are going disciplined G&A more on of do some in the already OpEx we

George Iwanyc

And Okay. question. last

conversations the and for wish you So, over work all I you Ran, And the thank the well. years.

an Doron, how you you're update transition what looking search is Can So, going? us the CFO give for? on

Doron Arazi

basically we midst of of -- in process the the have, Yes, obviously, search.

this very may the on in time. Generally this it's process. just I very more identified who good the of our stages say, And But relatively think are that us success candidates. couple obviously the interview who focused of last, it of very I not the a Board -- the I from have impact hope finance process experience some the knows because profile some me involved, the is also is that and candidates. and would that of it's not yet people is we we've that of Directors who will Directors only are of significant. take speaking, know on Ceragon business financial accounting people much the of business a

particular, vendor, this in nice be would this vendors to person coming industry, from that in looking or industry or the to some we're So, And telco also if for this kind experience, obviously, is of have. profile. equipment

Ran Vered

can Just I just for compliment -- a for -- second.

words. first, the George, for thanks warm So,

from more me on comments two Just that.

myself, I on them, some able strong here but recruit some of to one team them. as and his the a recruit have First, I may very, leave, that I maintain of role I CFO, them -- we're previous a very

Second, have a new even a have after my I the my to departure, with Board CFO. transition commitments and Doron to

a well. So, transition that as on respect I smooth guarantee

George Iwanyc

you very much. Thank

Operator

question comes of next the Our Please Alex Instructions] go from ahead. [Operator from Needham. you. line Thank Henderson

Alex Henderson

whether but what's of think aside, into can't environment this from or comes you a where a you an diversify of and the how padlocks in lockdown have on I now in in know and looking there's they China coming the Great. but Thanks. they're of these the don't points you is your rearview days, impact But the I apartment. risk? million to do Clearly, don't chain locking in those doing away your headlights $XXX lot down. much supply somebody XXX imagine problem and the Shanghai, I it risk or you office out mirror, big able a Beijing, been from get that what issues know, what, government have living been

Doron Arazi

Yes.

manufacturer outside the ultimate of big. The cannot the direct we say, is process forever, a lockdown a going access explain embarked -- not is of components our and of it not China. is assuming this So, and nitty low. some I are the is directly. of have At of saying need aware impact at refer to between why. they indirect and out buy may impact are certain indirect with we to remove China. Chinese you And site China, is out In one respect, When sides, direct us most a supplying of solution vendors have that of the one two impact. able impact to I'm this our the I gritty not linger we could that the be to direct challenges. impact, each vendors point, I and certain and elements element we is who distinguish the every that least market, our component a something one and point solution to exposure were from If I the other Chinese of would contract activity have some, of at an and to started to in will them And solution, this

included coming haven't that from already we deterioration a we estimations. impact, if any, far based on and seen is their that the assume So big the CM in

Alex Henderson

you down? big stay Russia/China side? the Or freight is to So, to freight to parts second start problem costs cause it travel least? the in sounds the like problems the side trim a at quarter on of it, you exposure do Do through the on expect to What the expect in about freight lower.

Doron Arazi

quarter the to for increase to example, assumption it's not on to we in certain this say, India year, Frankly, for very and an this there's and it's very in will freight later speak, situation it our gave point would in, now first I so come the cost. at based for the this in improvement. steep like tell. The but while that looks -- can for tell year in rest, is that outlook cost hard you seen our that relaxation will continue the revised, and relaxation we've say the to a I difficult

Alex Henderson

traveled hadn't I next side, X T&E the got in ago, quarter. scheduled the now, over two on then I've XX years And weeks trips

improvement you productivity and you what that XXXX? from XX% where to that. have you guys new assume but about do with, Can talk costs assumptions increase generated XX%, similar for hopefully I also that or rebounding? cope -- How it of think we terms about kind Is T&E So, Is it of was the year are the normal? of your in that? that

Doron Arazi

-- signs T&E. do first the we are of the we actually, of So, some seeing even recovery quarter, in

this that of XXXX. more I extent, travel, less want see to you for full -- it's and is see, than point. had at not internal is than see happening -- less it's And we mainly factor the continent for we actually projections is training, of at great than something travel when However, the XX%, even not main full when even ballparked, by that in If XXXX. meetings level a installations things the our travel is a travels -- the some give in like far for than I knowledge transfer, and that, less level of a still a we less this

Alex Henderson

what normal? going think is do normal new you a that is the new to be? Or So,

Doron Arazi

I'm tool. that Yes. we've proximity. is the done to forth, there guys, budget level yes, is substitute than forever, and more When was more effective or we no to close obviously, planned And important expenses via XX% my And so the guidance Teams. to could this was contained on travel rooms XXXX. deals Zoom, the face-to-face. parts seen got physical of closing should very so management in is meeting be And our we instructed and should of But that less in stay but deals via used not XXXX, saying we a

especially And Ceragon itself has be to proven that is OpEx on the I expect company. disciplined the a very this management think and employees. I what from

Alex Henderson

So, kind on lower a much a it? of is normal new level

Doron Arazi

Yes.

Alex Henderson

shock? are Going rate, remind you the are hedging certainly where mean on has I to the not point, and us this things shekel at if can the exchange you you helping

Ran Vered

also average on items previous a financial hedged and since are us, unfortunately, expenses like see the shekel for help that. of quarter say dollar sheet hedge something than quarters. that with at -- already in rate the much on you is we shekel, the denominated does And of because side, we I It are the X.XX not why so this hedged. unfortunately, this balance say, in against XXXX the strategy I some and the Yes, lower will Alex, expenses an already

Alex Henderson

the Churn, then I'll again. what do One you wage more floor cede question, inflation, staffing churn and in? see

Doron Arazi

the seen Yes, ratio first significantly. relaxation we that quarter, very especially so we between attrition recruitment And has some in first and the improved of attrition. to all, announce in in the I'm happy have -- R&D,

that There good spike So about I employees talking side news say work new a for even articles being obviously demand us. that's on are the would on to some noticed. is

very of challenging difficult. gives this think will think main also to to coming Romania continue that situation down. sometimes is that well. this us don't efficiency a think more so that In similar coming making It's India, this turnovers. locations, of Ceragon, of and increase And not industry, coming will a trying Romania so we've and this as situation. a of certain India, are seen people very it's I I very year At result start primarily obviously, across terms, managing lot measures, that, we're get to that salary people still doing I believe be some salaries So, reasonable. degree. soon. I in this to that we've a But is something really other just hope some situation will bit point, productivity. But In and sort their the speak, in are only improve with a XXX%, to sure seen combination

to with keep our planned. to we us helps what accordance this budget or far, so in contain And

Alex Henderson

question. ask. last more apologize, forgot one just I to I I’ve

space and my of backlog to So, full most the telco basis. a of the networking have on in year magnitude talking been their companies

willing backlog is that's XX%. equal give what has full us instance, year to well relative Ciena comment. backlog This kind standard of a your of the running is For over gauge become a of Sales. to to XXX% product Are annual its roughly some you Juniper's product revenue guide?

Doron Arazi

this So, to would It's would or Alex, cannot and question no that I deny say answer I so I above asked more. this. say you it's XX% refuse politely, --

Alex Henderson

much so you Ran, forward great That's Congratulations. I new you gig. you've working maybe for we got look I very to And, wherever a that. with understand Thank Thanks. end up. helpful.

Ran Vered

pleasure working was It as you Alex. with you, well. Thank

Operator

you. Thank

questions. Please proceed. no We have further

Doron Arazi

focused you. closing, leadership areas in continue market medium Thank our that the stay business In will the and in we long-term. to add and value to

managed to are XX spans that will years. growing offering our We our continue reputation over and edges, competitive leadership, our sharpen technology our services which

our newest in the Our all to orders bookings latest and strengths testaments to our continue customer product are FX, customers, IPXX us. trust place our and to

forward you and As our will distinctions continue through each good XXXX region. unfolds, Have on opportunities in amplify a best we growth updating on call. to on look our next the by these strategy focusing day, and to build further everyone. I

Ceragon Networks (CRNT) 2 May 222022 Q1 Earnings call transcript