the #1 wireless backhaul specialist - · pdf filethis presentation may contain statements...
TRANSCRIPT
Jefferies 2013 Global Technology Media and Telecom Conference
May. 2013
The #1 Wireless Backhaul Specialist
Aviram Steinhart, CFO
Proprietary and Confidential
Safe Harbor
2
This presentation may contain statements concerning Ceragon’s future prospects that are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and projections that involve a number of risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts and estimates. These are important factors that could cause actual results to differ materially from forecasts and estimates. Some of the factors that could significantly impact the forward-looking statements in this press release include the risk of significant expenses in connection with potential contingent tax liability associated with Nera’s prior operations or facilities, the risk that the combined Ceragon and Nera business may not perform as expected, risks associated with increased working capital needs, and other risks and uncertainties, which are discussed in greater detail in Ceragon’s Annual Report on Form 20-F and Ceragon’s other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and Ceragon undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Ceragon’s public filings are available from the Securities and Exchange Commission’s website at www.sec.gov or may be obtained on Ceragon’s website at www.ceragon.com .
Proprietary and Confidential
Commitment
Our Purpose is to Resolve Hauling Challenges for Our Customers
That’s what makes us
The #1 Wireless Backhaul Specialist
Proprietary and Confidential
The #1 Wireless Backhaul Specialist
4
>550,000 Radios since
2004
Rev. $427M four rolling
quarters
Field Proven Experience
Professional R&D Teams
Proprietary and Confidential
Short Haul 100Mb/s--2Gb/s
Long Haul > 1Gb/s
Short Haul 100Mb/s--2Gb/s
Small Cells 100Mb/s-2Gb/s
Resolving hauling challenges across entire networks
Proprietary and Confidential
Addressable Market
6
Market Split by Application TAM Forecast Split by Technology
Mobile 83%
Fixed & ISPs 9%
Private, 9%
Source: Infonetics, April 2013
$0
$1
$2
$3
$4
$5
$6
CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17
Worldwide Microwave Backhaul Equipment (in $US Billion)
Private Includes: Utilities, Defense, Municipalities, Education, Broadcast, Oil & Gas etc.
Source: SLR, March 2013
Proprietary and Confidential
#1 in LH / Top Specialist in SH Capacity
7
Sou
rce:
SLR
, 03
/201
3
Ericsson 26%
Huawei 23%
NEC 17%
Ceragon 8%
ALU 7%
SIAE 6%
Aviat 4%
Dragonwave 3%
NSN 2% SAGEM
0%
Others 4%
SH High Capacity Units 2012
Ceragon 26%
ALU 21%
Aviat 20%
NEC 11%
Ericsson 10%
NSN 2%
Fujitsu 2%
SIAE 2% Proxim
1%
Dragonwave 0%
Others 5%
LH Units 2012
Top 4 in High Capacity Short Haul #1 in Long Haul
Changing Market Paradigms And why our customers need more capacity and new, more affordable network models
8
Proprietary and Confidential
Bandwidth growth outpaces available resources
Source: Ovum
Global data traffic will grow 90% cumulatively through 2017
Proprietary and Confidential
Mobile operators revenues: inconvenient truth
10
-8,735 -13,928
-23,172
-32,560
-40,113
-47,302
-54,377
2010 2011 2012 2013 2014 2015 2016
Sou
rce:
Ovu
m ,
The
Cas
ualti
es o
f Soc
ial M
essa
ging
Sep
201
2
Estimated Operators revenue lost to OTT in 2011 - ~ 14 B USD to OTT social messaging services - ~ 22 B USD to OTT VoIP Service
Telco Revenues Lost to Social Messaging 2010-2016 (M USD)
OTT is reshaping our industry
Proprietary and Confidential
Compelling Events/ Disruptive Technologies
11
C-RAN CoMP WiFi 2.0 Coordinated Multipoint IEEE 802.11u, ac, ad,… Cloud RAN
Tech
nolo
gies
Busi
ness
Capacity OTT Value Chain
Over the Top Sharing & SCaaS Order of Magnitude S
ourc
e: O
vum
201
2
Changing the Network Paradigms
Proprietary and Confidential
Traditional Mobile Backhaul
13
MSC/RNC/S-GW
Macro Site
Macro Site
DU
Aggregation Node
DU
Carrier Ethernet MPLS-TP IP/MPLS
Fiber Aggregation Network
Microwave
60GHz
PtMP Sub 6GHz
E-Band
Aggregation Node
Aggregation Node
Proprietary and Confidential
Holistic HetNet Hauling (3H) Our Vision of the Future Network
14
MSC/RNC
RU
DU
RU Small Cells
Small Cells
PtMP Sub 6GHz
E-Band
60GHz
DU
Carrier Ethernet MPLS-TP IP/MPLS
Fiber Aggregation Network
Compressed CPRI over license bands
RU
C-RAN Fronthaul
High capacity, low latency
DU
Macrocell Backhaul
Versatile deployment scenarios
Macro+
Macro
Macro
Macro-Site Aggregation
High capacity & interoperability
Super Size Macro Site
Super Size Macro Site Aggregation
Node
Aggregation Node
Aggregation Node
Microwave
60GHz
PtMP Sub 6GHz
E-Band
Game Changing Technology
15
Proprietary and Confidential
• FibeAir IP-20C is a Revolutionary Compact All-Outdoor Radio
• Multi-Core Radio - Parallel radio processing engine that boost capacity and significantly reduces Total Cost of Ownership
• 2048 QAM Modulation
• Line-of-Sight 4x4 MIMO -Quadruples radio throughput using the same spectrum, at half the form-factor
• Allows our customers to get Multi-Gbps - anywhere in their network
A New Standard in Microwave Transmission
Proprietary and Confidential
Superior technology – Superior cost position
17
Breakthrough radio technology for
Native TDM/Native IP Revolutionary Multi-Core Radio
sets new industry standards Industry 1st STM1 Radio at 38 GHz
1998 2005 2008 2012
Doubling capacity
with XPIC
With a proven history of technological leadership and favorable cost position – we are now ready to introduce a new benchmark solution to the market
Proprietary and Confidential
FibeAir IP-20C adds more value to our customers
18
Disruptive technology for a disruptive market
Serves new & evolving network concepts
Addresses the growing need for capacity
Q1-2013
Proprietary and Confidential
Q1 2013 Results
20
<1 Slower booking quarter
$90.1 Million
Revenues
Non-GAAP Gross Margin 31.9%
Non-GAAP Net Loss $(5.7) m.
Non-GAAP EPS $(0.16)
Q1book-to-bill
Proprietary and Confidential
Current Market Environment
21
• Caution over business models • Declining revenues per unit of bandwidth delivered • Ongoing regulatory uncertainty, including pending rulings
• Caution over technological changes
• Network architectures& infrastructure-sharing arrangements • New solutions based on all-IP
• Caution over the macroeconomic environment
• Preserve cash, delay spending • Slow spending reduces competitive pressures
The result: sale-cycles are getting longer
& penetrating into new accounts is more challenging
Proprietary and Confidential
Q1-13 – Key Takeaways
22
• Carriers are not cancelling or reducing the scope of their planned projects
• We have a large pipeline of potential business
• New product line successfully rolled out with initial sales
• Our leading cost position will be a major advantage for capturing share in the future
Thank You
Yoel Knoll VP of Investor Relations [email protected] / [email protected]
Tel. +972-3-5431-132 Cell. +972-52-830-6419 www.ceragon.com NASDAQ: CRNT