Ceragon Networks Ltd. Files 20-F Annual Report for Fiscal Year Ended December 31, 2023

TL;DR

<b>Ceragon Networks Ltd. filed its 20-F annual report for the fiscal year ending December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

CERAGON NETWORKS LTD (CRNT) filed a Foreign Annual Report (20-F) with the SEC on March 21, 2024. Revenues in the United States represented 94% in 2023, 87% in 2022, and 72% in 2021. Long-lived assets include property and equipment, net, and operating lease right-of-use assets. The company was formerly known as Giganet Ltd, with a name change on July 19, 2000. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in L3 and its fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking CERAGON NETWORKS LTD, this filing contains several important signals. The significant concentration of revenue in the United States (94% in 2023) highlights the company's reliance on the North American market and potential risks associated with market-specific downturns or regulatory changes. The inclusion of operating lease right-of-use assets within long-lived assets indicates the company's use of leasing arrangements, which can impact its balance sheet and financial flexibility.

Risk Assessment

Risk Level: medium — CERAGON NETWORKS LTD shows moderate risk based on this filing. The company's high concentration of revenue in the United States (94% in 2023) makes it vulnerable to economic or regulatory shifts in that specific market.

Analyst Insight

Investors should monitor the company's diversification strategies and its performance in international markets to mitigate risks associated with its heavy reliance on the US market.

Key Numbers

• 94% — US Revenue 2023 (Revenues in the United States as of December 31, 2023)
• 87% — US Revenue 2022 (Revenues in the United States as of December 31, 2022)
• 72% — US Revenue 2021 (Revenues in the United States as of December 31, 2021)
• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-21 — Filing Date (Date the filing was made)

Key Players & Entities

• CERAGON NETWORKS LTD (company) — Filer name
• GIGANET LTD (company) — Former company name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-21 (date) — Filing date
• 94% (dollar_amount) — Revenues in the United States in 2023
• 87% (dollar_amount) — Revenues in the United States in 2022
• 72% (dollar_amount) — Revenues in the United States in 2021

FAQ

Risk Factors

• Revenue Concentration in the United States [high — market]: The company derives a significant majority of its revenue from the United States, with 94% in 2023, making it susceptible to market-specific risks.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-03-21: Filing Date — The date the 20-F annual report was officially submitted to the SEC.

Glossary

Long-lived assets

Assets that are not expected to be consumed or converted into cash within one year. Includes property and equipment, net and operating lease right-of-use assets. (Provides insight into the company's capital investments and leasing strategies.)

Filing Documents

• zk2431141.htm (20-F) — 3102KB
• exhibit_2-1.htm (EX-2.1) — 36KB
• exhibit_4-17.htm (EX-4.17) — 105KB
• exhibit_4-18.htm (EX-4.18) — 172KB
• exhibit_12-1.htm (EX-12.1) — 11KB
• exhibit_12-2.htm (EX-12.2) — 11KB
• exhibit_13-1.htm (EX-13.1) — 4KB
• exhibit_15-1.htm (EX-15) — 5KB
• exhibit_97-1.htm (EX-97.1) — 35KB
• crnt_img01.jpg (GRAPHIC) — 412KB
• image00001.jpg (GRAPHIC) — 26KB
• 0001178913-24-001034.txt (&nbsp;) — 14286KB
• crnt-20231231.xsd (EX-101.SCH) — 85KB
• crnt-20231231_cal.xml (EX-101.CAL) — 75KB
• crnt-20231231_def.xml (EX-101.DEF) — 247KB
• crnt-20231231_lab.xml (EX-101.LAB) — 917KB
• crnt-20231231_pre.xml (EX-101.PRE) — 482KB
• zk2431141_htm.xml (XML) — 2561KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS Page PART I ITEM 1. Identity of Directors, Senior Management and Advisers 3 ITEM 2. Offer Statistics and Expected Timetable 3 ITEM 3. Key Information 3 ITEM 4. Information on the Company 37 ITEM 4A. Unresolved Staff Comments 55 ITEM 5. Operating and Financial Review and Prospects 55 ITEM 6. Directors, Senior Management and Employees 67 ITEM 7. Major Shareholders and Related Party Transactions 86 ITEM 8. Financial Information 87 ITEM 9. The Offer and Listing 91 ITEM 10. Additional Information 91 ITEM 11.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 100 ITEM 12.

Description of Securities Other than Equity Securities

Description of Securities Other than Equity Securities 100 PART II ITEM 13. Defaults, Dividend Arrearages and Delinquencies 100 ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 100 ITEM 15.

Controls and Procedures

Controls and Procedures 100 ITEM 16A . Audit Committee Financial Expert 101 ITEM 16B . Code of Ethics 101 ITEM 16C . Principal Accountant Fees and Services 102 ITEM 16D . Exemptions from the Listing Standards for Audit Committees 102 ITEM 16E . Purchases of Equity Securities by the Issuer and Affiliated Purchasers 102 ITEM 16F . Change in Registrant's Certifying Accountant 102 ITEM 16G . Corporate Governance 103 ITEM 16H . Mine Safety Disclosure 103 ITEM 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 103 ITEM 16J. Insider Trading Policies 103 ITEM 16K. Cybersecurity 103 PART III ITEM 17.

Financial Statements

Financial Statements 104 ITEM 18.

Financial Statements

Financial Statements 104 ITEM 19. Exhibits 105 i INTRODUCTION Definitions In this annual report, unless the context otherwise requires: references to "Ceragon," the "Company," "us," "we," "our" and the "registrant" refer to Ceragon Networks Ltd., an Israeli company, and its consolidated subsidiaries; references to "ordinary shares," "our shares" and similar expressions refer to our Ordinary Shares, NIS 0.01 nominal (par) value per share; references to "dollars," "U.S. dollars", "USD" and "

Forward-looking statements

Forward-looking statements can be identified by the use of terminology such as "may," "will," "assume," "expect," "anticipate," "estimate," "continue," "believe," "potential," "possible," "intend" and similar expressions that are intended to identify forward-looking statements , although not all forward-looking statements contain these identifying words . These forward-looking other "forward-looking" information. They involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Ceragon to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from those projected in the forward-looking statements include, without limitation, the risk factors set forth under "Item 3. Key Information Risk Factors," the information about us set forth under Item 4. "INFORMATION ON THE COMPANY", the information related to our financial condition under

"OPERATING AND FINANCIAL REVIEW AND PROSPECTS", and information included in this annual report generally. Any

Item 5. "OPERATING AND FINANCIAL REVIEW AND PROSPECTS", and information included in this annual report generally. Any forward-looking statements represent Ceragon's views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking 2 PART I ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable. ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable. ITEM 3. KEY INFORMATION A. [Reserved] B. Capitalization and indebtedness Not applicable. C. Reasons for the offer and use of proceeds Not applicable. D.

Risk Factors

Risk Factors The following risk factors, among others, could affect our business, results of operations or financial condition and cause our actual results to differ materially from those expressed in forward-looking statements made by us. These forward-looking statements are based on current expectations and we assume no obligation to update this information. You should carefully consider the risks described below, in addition to the other information contained elsewhere in this annual report. The following risk factors are not the only risk factors that the Company faces, and as such, additional unknown risks and uncertainties that we currently deem immaterial may also affect our business. Our business, financial condition and results of operations could be seriously harmed if any of the events underlying any of these risks or uncertainties actually occur. In such an event, the market price for our ordinary shares could decline. Below are some, but not all, of the main risks factors and challenges that we have been facing and may further face, which could have an adverse effect on our business, results of operations and financial condition (t he list below is not exhaustive, and investors should read this "Risk factors" section in full) : the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown, on our and our customers' business, financial condition and results of operations; the impact of delays in the transition to 5G technologies and in the 5G rollout on our revenues if such transition is developed differently than we anticipated, either in terms of technology, use-case, timeline or otherwise; if we fail to effectively cope with the high volatility in the supply needs of our customers, we may be unable to timely fulfill our customer commitments (for example, delivery issues due to long lead time and availability of

Business

Business Our global operation exposes us to the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown. The global nature of our activity and our global presence and operation in different countries, regulatory, legal and financial regimes, exposes us to a wide spread of customers, suppliers, subcontractors and contractors, and, in turn, to global and local macro and micro developments. In response to rising inflation in recent years, central banks in the markets in which we operate, including the United States Federal Reserve, have tightened their monetary policies and raised interest rates, and such measures may continue. Higher interest rates and volatility in financial markets could lead to additional economic uncertainty or recession. Recent increases in interest rates and weak economic conditions, has reduced, and may continue to reduce, the amount of disposable income customers have, which, in turn, reduces customer spending. This has had, and may continue to have, an adverse effect on our business, financial condition and results of operations. The recent increase in inflation rates in the markets in which we operate may lead us to experience higher labor costs, energy costs, water costs, transportation costs, wafer costs and other costs associated with raw materials from suppliers. Our suppliers may raise their prices, and in the competitive markets in which we operate, we may not be able to make corresponding price increases to preserve our gross margins and profitability due to market conditions and competitive dynamics. Additionally, any such increase in prices, even if possible, may not be accepted by our customers, and there is no assurance that we will be able to increase our pricing to offset our increased costs, or that our operations will not be materially impacted by rising inflation and its broader effects

View Full Filing

View this 20-F filing on SEC EDGAR