Sargon published reports for the first quarter and updated on a new contract

Company Sargon , A provider of technological solutions in the wireless transmission market, recorded a lower-than-expected loss in the first quarter of the year, and at the same time announced a new contract with the American communications company DISH. However, it also slightly reduced its annual forecast.

The company’s revenue for the quarter was $ 70.3 million, lower than analysts’ expectations of $ 71.2 million, and a figure that reflects 3% growth over the corresponding quarter. 22% of the company’s revenue for the quarter came from India, 20% from Latin America, 19% from North America, 17% from Europe, 14% from Asia Pacific and 8% from Africa.

According to GAAP, the net loss for the quarter increased to $ 2.3 million compared to $ 1.2 million in the corresponding quarter, while on a non-GAAP basis, excluding various accounting expenses, including employee benefits, the net loss reached $ 1.9 million, which is 2 cents per share. , While analysts expected a deeper loss of 3 cents a share.

The annual forecast is updated downward, and if Sargon previously expected revenue of $ 305-320 million, the mid-term forecast now drops to $ 5 million, and the forecast is to $ 300-315 million. This is still growth compared to 2021 when revenue was $ 291 million. According to Sargon, an improvement in gross profitability is expected only in the second half of the year, assuming a gradual improvement in the supply chain and shipping costs.

CEO Doron Arazi said: “We opened the year with an accelerated momentum, which is reflected in vigilant orders in the first quarter. We are witnessing increased activity among public and private network operators, especially in the context of 5G deployments in North America and Europe. As we realize this momentum and show tangible improvements reflected in new customers and significant orders, global component shortages, supply chain disruptions and shipping problems continue to generate irregular volatility on our industry and obscure our ability to convert these successes into rising revenue and profitability. We take immediate steps to mitigate the impact. We continue to be focused on areas that add value to our business, such as our technological leadership in the core and open network market, as well as in our managed service solutions, which continue to grow. ”

As mentioned, Sargon reported at the same time that it was selected by DISH Wireless to provide it with solutions for the rapid deployment of its fifth generation network.

By Editor

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