Tens of thousands of Smart Activation Key licenses ordered in first half of the year as part of Ceragon equipment purchases
ROSH HAIN, Israel, July 23, 2024 /PRNewswire/ — Ceragon (NASDAQ: CRNT), a leading provider of end-to-end wireless connectivity solutions, today announced a significant milestone in its transition to a more permanent, recurring revenue model. The company is well on its way to transitioning from a hardware-centric business to one that integrates software as a service (SaaS). This evolution is part of Ceragon’s strategy to mitigate the traditional revenue volatility associated with cyclical hardware sales.
A key element of this strategy is the successful development and deployment of Ceragon’s Smart Activation Key software. This innovative software simplifies the activation process for network radios and their various licensable features, enabling customers to activate and upgrade thousands of devices simultaneously, significantly improving operational efficiency and reducing costs. In addition, the new software provides greater business flexibility, allowing customers to choose from a variety of pricing options, including term licenses and pay-per-use pricing. Intelligent usage tracking capabilities provide customers with detailed information to facilitate data-driven decisions on network management and expansion.
Ceragon’s Smart Activation Key has already seen significant adoption, with tens of thousands of licenses ordered and multiple customer deployments underway in the first half of the fiscal year. Notably, a portion of these licenses are already being sold under a recurring revenue model, indicating customer support and demand for an ongoing subscription-based solution.
Doron Arazi, CEO of Ceragon, commented, “Ceragon’s Smart Activation Key software marks a major step forward in our strategy to integrate SaaS into our business model. Adding SaaS to Ceragon’s solution offerings not only enhances our customers’ experience, but also aligns with our goal of generating predictable, recurring revenue streams.”
About Ceragon
Ceragon (NASDAQ: CRNT) is a global innovator in end-to-end wireless connectivity and a specialized solutions provider in transport, access, and AI-powered managed and professional services. Committed to excellence, Ceragon helps customers improve operational efficiency and enhance the quality of experience for their end users.
Our customers include service providers, utilities, public safety agencies, government agencies and energy companies who rely on our wireless expertise and cutting-edge solutions for 5G and 4G broadband wireless connectivity, mission-critical services and a variety of applications that leverage our ultra-high reliability and speed. Ceragon solutions are deployed by more than 600 service providers and more than 1,600 private network owners in more than 130 countries.
Through innovative end-to-end solutions covering hardware, software, and managed and professional services, we help customers confidently embrace the future of wireless technology and shape next-generation connectivity and service delivery. Ceragon offers reliable, rapidly deployable, high-capacity wireless solutions for a wide range of communications network use cases. These solutions are optimized to reduce TCO by minimizing the use of spectrum, power, real estate, and labor resources, driving simple, rapid, and cost-effective network modernization and positioning Ceragon as a leading solution provider for the “connect anywhere” era.
For more information, visit www.ceragon.com.
Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the U.S. and other countries. CERAGON® is a trademark of Ceragon, registered in various countries. Other names mentioned are the property of their respective owners.
Safe Harbor
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Ceragon management’s current beliefs, expectations and assumptions regarding Ceragon’s business, financial condition, results of operations, micro- and macro-market trends, and other matters addressed or reflected therein. Examples of forward-looking statements include, but are not limited to, statements regarding demand, revenues, net income, gross margins, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipments, component availability projections, growth prospects, product development, financial resources, cost savings, and other financial and market matters. These and other forward-looking statements can be identified by the use of words such as “may,” “plans,” “anticipates,” “believes,” “estimates,” “targets,” “expects,” “intends,” “potential” or the negative of these words or other similar terminology, although not all forward-looking statements contain these identifying words.
Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved or that any deviations therefrom will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Seragon’s future results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the effects of global economic trends, including economic downturns, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages, and the effects of economic slowdowns, developments in the Israeli military and related regional conflicts, risks associated with the transition to 5G technology and delays in 5G deployment, risks associated with the concentration of business in a limited number of large mobile operators and the fact that the weighting of orders from those operators compared to overall orders from other customers, combined with inconsistent ordering patterns, could adversely affect the Company. risks arising from volatility in our revenues, margins and working capital needs, that disagreements with tax authorities regarding tax positions we have taken could result in increased tax burdens, significant variability in our customers’ supply needs may result in delivery issues from time to time and our inability to timely meet commitments to customers, and other risks, uncertainties and other factors that may affect our operating results that are more fully described in Ceragon’s most recent Annual Report on Form 20-F issued on March 21, 2024 and other documents that Ceragon may file from time to time thereafter with the Securities and Exchange Commission.
You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and Ceragon undertakes no obligation to update any forward-looking statements to reflect events or circumstances that may occur after the date of this release, except as required by law.
Although the Company believes that it has a reasonable basis for each of the forward-looking statements contained in this press release, the Company cautions the reader that such statements are based on a combination of facts and factors currently known to the Company and future expectations about which the Company does not have any certainty. In addition, forward-looking statements represent Seragon’s views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Seragon undertakes no obligation to update any forward-looking statements, except as required by law.
The results reported in this press release are preliminary and unaudited results, and investors are cautioned that various factors may cause discrepancies between these results and audited results that may be reported.
Ceragon’s public filings are available on the Securities and Exchange Commission’s website at www.sec.gov and on Ceragon’s website at www.ceragon.com.
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SOURCE Ceragon Networks Ltd.
