----

| ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|------------------------------------------------------------------------------------------------|

| ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|--------------------------------------------------------------------------------------|

| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|------------------------------------------------------------------------------------------|

| ☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|---------------------------------------------------------------------------------------------|

----

----

----

| Title of Each Class                 | Name of Exchange of Which Registered |
|-------------------------------------|--------------------------------------|
| Ordinary Shares, Par Value NIS 0.01 | Nasdaq Global Select Market          |

----

----

|  | 1. | adding to the Company’s financial statements included under Item 18 of this Amendment, in accordance with Rule 2-05 of Regulation S-X, the reports of the auditor on the financial statements and internal control over financial reporting of a subsidiary of the Company upon which our principal auditor relied, and to which our principal auditor referred, in rendering its audit report on our consolidated financial statements that were included in the Annual Report, which had been inadvertently omitted from the Annual Report; and |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | correcting the date of our principal auditor’s report on our financial statements cross-referenced in their opinion on our internal control over financial reporting, which due to clerical error included a date of March 20, 2019 instead of March 31, 2019. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 18. | FINANCIAL STATEMENTS |
|----------|----------------------|

| Index to Consolidated Financial Statements                       | Page        |
|------------------------------------------------------------------|-------------|
|                                                             |        |
| Reports of Independent Registered Public Accounting Firm         | F-2 - F-4   |
| Consolidated Balance Sheets                                      | F-5 - F-6   |
| Consolidated Statements of Operations                            | F-7         |
| Consolidated Statements of Comprehensive Income (loss)           | F-8         |
| Consolidated Statements of Changes in Shareholders’ Equity | F-9         |
| Consolidated Statements of Cash Flows                            | F-10 - F-11 |
| Notes to Consolidated Financial Statements                       | F-12 - F-47 |
| Reports of Independent Registered Public Accounting Firm         | F-48 - F-49 |

----

| ITEM 19. | EXHIBITS |
|----------|----------|

| 1.2  | Articles of Association, as amended September 20, 2016 (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.4  | Credit facility, dated as of March 14, 2013 (“Credit Facility”) by and among the Company and Bank Hapoalim B.M., HSBC Bank Plc, Bank Leumi Le’Israel Ltd. and First International Bank of Israel Ltd. (English summary of the material terms) (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.5  | Amendment, effective as of October 1, 2013, to the Credit Facility (English summary of the material terms) (3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.6  | Amendment No. 2, effective as of April 29, 2014, to the Credit Facility (English summary of the material terms) (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.7  | Amendment No. 3, effective as of March 31, 2015, to the Credit Facility (English summary of the material terms) (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.8  | Amended and Restated Share Option and RSU Plan, as amended August 10, 2014 (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.9  | Amendment No. 4, effective as of March 10, 2016, to the Credit Facility (English summary of the material terms) (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.10 | Amendment No. 5, executed in December 2016, to the Credit Facility (English summary of the material terms) (6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.11 | Amendment No. 6, effective as of March 30, 2017, to the Credit Facility (English summary of the material terms) (7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.12 | Amendment No. 7, executed on February 12, 2018, to the Credit Facility (English summary of the material terms) (8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.13 | Amendment No. 8, executed on March 26, 2018, to the Credit Facility (English summary of the material terms) (8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 8.1  | List of Significant Subsidiaries (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.1 | Consent of Independent Registered Public Accounting Firm (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.2 | Consent of Independent Registered Public Accounting Firm (9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 12.1 | Certification by CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 12.2 | Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 13.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 101  | The following financial information from Ceragon Networks Ltd.’s Annual Report on Form 20-F for the year ended December 31, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016; (ii) Consolidated Statements of Comprehensive Income (Loss) at December 31, 2018, 2017 and 2016; (iii) Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2018, 2017 and 2016; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016; and (v) Notes to Consolidated Financial Statements. Users of this data are advised, in accordance with Rule 406T of Regulation S-T promulgated by the SEC, that this Interactive Data File is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise is not subject to liability under these sections. (9) |

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| By:    | /s/ Ira Palti                         |   |
|--------|---------------------------------------|--------|
| Name:  | Ira Palti                             |   |
| Title: | President and Chief Executive Officer |   |

----

|                                                       | Page        |
|------------------------------------------------------------|-------------|
|                                                       |        |
| Reports of Independent Registered Public Accounting Firm   | F-2 - F-4   |
|                                                       |        |
| Consolidated Balance Sheets                                | F-5 - F-6   |
|                                                       |        |
| Consolidated Statements of Operations                      | F-7         |
|                                                       |        |
| Consolidated Statements of Comprehensive Income            | F-8         |
|                                                       |        |
| Consolidated Statements of Changes in Shareholders' Equity | F- 9        |
|                                                       |        |
| Consolidated Statements of Cash Flows                      | F-10 - F-11 |
|                                                       |        |
| Notes to Consolidated Financial Statements                 | F-12 - F-47 |

----

|  | Kost Forer Gabbay & Kasierer144 Menachem Begin RoadTel-Aviv 6492102, Israel | Tel: +972-3-6232525Fax: +972-3-5622555ey.com |
|--|---------------------------------------------------------------------------------|----------------------------------------------|

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|  | Kost Forer Gabbay & Kasierer144 Menachem Begin RoadTel-Aviv 6492102, Israel | Tel: +972-3-6232525Fax: +972-3-5622555ey.com |
|--|---------------------------------------------------------------------------------|----------------------------------------------|

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----

|                                                                                                                               |   |   |   |   | December 31, |    |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------|---------|
|                                                                                                                               |   | Note   |   |   | 2017         |    |   | 2018 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |
| ASSETS                                                                                                                             |   |   |   |   |         |    |   |   |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |
| CURRENT ASSETS:                                                                                                                    |   |   |   |   |         |    |   |   |   |
| Cash and cash equivalents                                                                                                          |   |   |   |   | $            | 25,877  |   |   | $ | 35,581 |   |
| Short- term bank deposits                                                                                                          |   |   |   |   |         | -       |   |   |   | 515 |   |
| Trade receivables (net of allowance for doubtful accounts of $ 7,883 and $ 4,327 at December 31, 2017 and 2018, respectively) |   |   |   |   |         | 113,719 |   |   |   | 123,451 |   |
| Other accounts receivable and prepaid expenses                                                                                     |   |   | 3      |   |         |    | 17,052 |   |   |   | 12,135 |   |
| Inventories                                                                                                                        |   |   | 4      |   |         |    | 54,164 |   |   |   | 53,509 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |   |   |   |
| Total current assets                                                                                                               |   |   |   |   |         |    | 210,812 |   |   |   | 225,191 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |   |   |   |
| NON-CURRENT ASSETS:                                                                                                                |   |   |   |   |         |    |   |   |   |   |   |   |
| Long-term bank deposits                                                                                                            |   |   |   |   |         |    | 996 |   |   |   | 504 |   |
| Deferred tax assets                                                                                                                |   |   | 13c    |   |         |    | 988 |   |   |   | 7,476 |   |
| Severance pay and pension fund                                                                                                     |   |   |   |   |         |    | 5,459 |   |   |   | 5,096 |   |
| Other non-current assets                                                                                                           |   |   |   |   |         |    | 3,269 |   |   |   | 4,544 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, NET                                                                                                        |   |   | 5      |   |         |    | 29,870 |   |   |   | 33,613 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |   |   |   |
| INTANGIBLE ASSETS, NET                                                                                                             |   |   | 6      |   |         |    | 2,199 |   |   |   | 6,576 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |   |   |   |
| Total long-term assets                                                                                                             |   |   |   |   |         |    | 42,781 |   |   |   | 57,809 |   |
|                                                                                                                               |   |   |   |   |         |    |   |   |   |   |   |   |
| Total assets                                                                                                                       |   |   |   |   |         | $       | 253,593 |   |   | $ | 283,000 |   |

----

----

|                                                                                                                                                                                                                                                |   |   |   |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------|--------|
|                                                                                                                                                                                                                                                |   | Note   |   |   | 2017         |   |   | 2018 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                          |   |   |   |   |         |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |
| Trade payables                                                                                                                                                                                                                                      |   |   |   |   |         | 75,476 |   |   |   | 78,892 |   |
| Deferred revenues                                                                                                                                                                                                                                   |   |   |   |   |         | 5,193  |   |   |   | 3,873 |   |
| Other accounts payable and accrued expenses                                                                                                                                                                                                         |   |   | 7      |   |         |   | 24,781 |   |   |   | 27,256 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| Total current liabilities                                                                                                                                                                                                                           |   |   |   |   |         |   | 105,450 |   |   |   | 110,021 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| LONG-TERM LIABILITIES:                                                                                                                                                                                                                              |   |   |   |   |         |   |   |   |   |   |   |   |
| Deferred tax liability                                                                                                                                                                                                                              |   |   | 13c    |   |         |   | 141 |   |   |   | 28 |   |
| Accrued severance pay and pensions                                                                                                                                                                                                                  |   |   |   |   |         |   | 10,085 |   |   |   | 9,711 |   |
| Other long-term liabilities                                                                                                                                                                                                                         |   |   |   |   |         |   | 4,019 |   |   |   | 3,672 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| Total long-term liabilities                                                                                                                                                                                                                         |   |   |   |   |         |   | 14,245 |   |   |   | 13,411 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| COMMITMENTS AND CONTINGENT LIABILITIES                                                                                                                                                                                                              |   |   | 11     |   |         |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                                                                                                                               |   |   | 12     |   |         |   |   |   |   |   |   |   |
| Share capital -                                                                                                                                                                                                                                     |   |   |   |   |         |   |   |   |   |   |   |   |
| Ordinary shares of NIS 0.01 par value -                                                                                                                                                                                                             |   |   |   |   |         |   |   |   |   |   |   |   |
| Authorized: 120,000,000  shares at December 31, 2017 and 2018; Issued: 81,526,715 and 83,571,181 shares at December 31, 2017 and 2018, respectively; Outstanding: 78,045,192 and 80,089,658 shares at December 31, 2017 and 2018, respectively |   |   |   |   |         |   | 214 |   |   |   | 214 |   |
| Additional paid-in capital                                                                                                                                                                                                                          |   |   |   |   |         |   | 410,817 |   |   |   | 415,408 |   |
| Treasury shares at cost – 3,481,523 ordinary shares as of December 31, 2017 and 2018                                                                                                                                                          |   |   |   |   |         |   | (20,091 | ) |   |   | (20,091 | ) |
| Accumulated other comprehensive loss                                                                                                                                                                                                                |   |   |   |   |         |   | (7,171 | ) |   |   | (9,208 | ) |
| Accumulated deficit                                                                                                                                                                                                                                 |   |   |   |   |         |   | (249,871 | ) |   |   | (226,755 | ) |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| Total shareholders' equity                                                                                                                                                                                                                          |   |   |   |   |         |   | 133,898 |   |   |   | 159,568 |   |
|                                                                                                                                                                                                                                                |   |   |   |   |         |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                                                                                          |   |   |   |   |         | $      | 253,593 |   |   | $ | 283,000 |   |

----

----

|                                                                                           |   |   |   |   | Year endedDecember 31, |   |
|------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------------------|--------|
|                                                                                           |   | Note   |   |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |
| Revenues                                                                                       |   |   | 14     |   |                   | $      | 293,641 |   |   | $ | 332,033 |   |   | $ | 343,874 |   |
| Cost of revenues                                                                               |   |   |   |   |                   |   | 194,479 |   |   |   | 224,698 |   |   |   | 227,705 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                                   |   |   |   |   |                   |   | 99,162 |   |   |   | 107,335 |   |   |   | 116,169 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                            |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development, net                                                                  |   |   |   |   |                   |   | 21,695 |   |   |   | 25,703 |   |   |   | 28,180 |   |
| Selling and marketing                                                                          |   |   |   |   |                   |   | 39,515 |   |   |   | 41,656 |   |   |   | 42,961 |   |
| General and administrative                                                                     |   |   |   |   |                   |   | 20,380 |   |   |   | 18,576 |   |   |   | 19,354 |   |
| Other income                                                                                   |   |   |   |   |                   |   | (1,921 | ) |   |   | (1,746 | ) |   |   | (470 | ) |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                                                       |   |   |   |   |                   |   | 79,669 |   |   |   | 84,189 |   |   |   | 90,025 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                               |   |   |   |   |                   |   | 19,493 |   |   |   | 23,146 |   |   |   | 26,144 |   |
| Financial expenses, net                                                                        |   |   | 16     |   |                   |   | 6,303 |   |   |   | 5,889 |   |   |   | 6,349 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income before taxes on income                                                                  |   |   |   |   |                   |   | 13,190 |   |   |   | 17,257 |   |   |   | 19,795 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Taxes on income (benefit)                                                                      |   |   | 13b    |   |                   |   | 1,761 |   |   |   | 1,697 |   |   |   | (3,251 | ) |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                     |   |   |   |   |                   | $      | 11,429 |   |   | $ | 15,560 |   |   | $ | 23,046 |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income per share:                                                                          |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic net income per share                                                                     |   |   |   |   |                   | $      | 0.15 |   |   | $ | 0.20 |   |   | $ | 0.29 |   |
| Diluted net income per share                                                                   |   |   |   |   |                   | $      | 0.15 |   |   | $ | 0.19 |   |   | $ | 0.28 |   |
| Weighted average number of ordinary shares used in computing basic net income per share   |   |   |   |   |                   |   | 77,702,788 |   |   |   | 77,916,912 |   |   |   | 78,579,013 |   |
| Weighted average number of ordinary shares used in computing diluted net income per share |   |   |   |   |                   |   | 78,613,528 |   |   |   | 79,942,353 |   |   |   | 81,021,527 |   |

----

----

|                                              |   | Year endedDecember 31, |   |
|---------------------------------------------------|--------|------------------------|--------|
|                                              |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|                                              |   |                   |   |   |   |   |   |   |   |
| Net income                                        |   | $                      | 11,429 |   |   | $ | 15,560 |   |   | $ | 23,046 |   |
| Other comprehensive income (loss):                |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Change in foreign currency translation adjustment |   |                   | 861    |   |   |   | 118 |   |   |   | (1,150 | ) |
|                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Cash flow hedges:                                 |   |                   |   |   |   |   |   |   |   |   |   |   |
| Change in net unrealized gains (losses)           |   |                   | 168    |   |   |   | 2,331 |   |   |   | (2,260 | ) |
| Amounts reclassified from AOCI                    |   |                   | (261   | ) |   |   | (1,772 | ) |   |   | 1,373 |   |
|                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net change                                        |   |                   | (93    | ) |   |   | 559 |   |   |   | (887 | ) |
|                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss), net            |   |                   | 768    |   |   |   | 677 |   |   |   | (2,037 | ) |
|                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total of comprehensive income                     |   | $                      | 12,197 |   |   | $ | 16,237 |   |   | $ | 21,009 |   |

----

----

|                                                                  |   | Ordinary shares |       |   | Sharecapital |   |   | Additionalpaid-incapital |   |   | Treasury shares at cost |   |   | Accumulated other comprehensive loss |    |   | Accumulated deficit |   |   | Total shareholders' equity |   |
|-----------------------------------------------------------------------|--------|-----------------|------------|--------|--------------|--------|--------|--------------------------|--------|--------|-------------------------|--------|--------|--------------------------------------|---------|--------|---------------------|--------|--------|----------------------------|--------|
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |
| Balance as of January 1, 2016                                         |   |            | 77,636,864 |   |         | $      | 214    |                     |   | $      | 408,174                 |   |   | $                                    | (20,091 | )      |                | $      | (8,616 | )                          |   | $ | (276,860 | ) |   | $ | 102,821 |   |
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |   |   |   |   |   |   |   |
|   Exercise of options and RSU's                             |   |            | 132,065    |   |         |   | *)-    |                     |   |   | 75                      |   |   |                                 | -       |   |                |   | -      |                       |   |   | - |   |   |   | 75 |   |
|   Share-based compensation expense                          |   |            | -          |   |         |   | -      |                     |   |   | 1,071                   |   |   |                                 | -       |   |                |   | -      |                       |   |   | - |   |   |   | 1,071 |   |
|   Other comprehensive income, net                           |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | 768    |                       |   |   | - |   |   |   | 768 |   |
|   Net income                                                |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | -      |                       |   |   | 11,429 |   |   |   | 11,429 |   |
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |   |   |   |   |   |   |   |
| Balance as of December 31, 2016                                       |   |            | 77,768,929 |   |         |   | 214    |                     |   |   | 409,320                 |   |   |                                 | (20,091 | )      |                |   | (7,848 | )                          |   |   | (265,431 | ) |   |   | 116,164 |   |
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |   |   |   |   |   |   |   |
|   Exercise of options and RSU's                             |   |            | 276,263    |   |         |   | *)-    |                     |   |   | 294                     |   |   |                                 | -       |   |                |   | -      |                       |   |   | - |   |   |   | 294 |   |
|   Share-based compensation expense                          |   |            | -          |   |         |   | -      |                     |   |   | 1,203                   |   |   |                                 | -       |   |                |   | -      |                       |   |   | - |   |   |   | 1,203 |   |
|   Other comprehensive income, net                           |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | 677    |                       |   |   | - |   |   |   | 677 |   |
|   Net income                                                |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | -      |                       |   |   | 15,560 |   |   |   | 15,560 |   |
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |   |   |   |   |   |   |   |
| Balance as of December 31, 2017                                       |   |            | 78,045,192 |   |         |   | 214    |                     |   |   | 410,817                 |   |   |                                 | (20,091 | )      |                |   | (7,171 | )                          |   |   | (249,871 | ) |   |   | 133,898 |   |
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |   |   |   |   |   |   |   |
|   Cumulative effect of the new revenue recognition standard |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | -      |                       |   |   | 70 |   |   |   | 70 |   |
|   Exercise of options and RSU's                             |   |            | 2,044,466  |   |         |   | *)-    |                     |   |   | 2,611                   |   |   |                                 | -       |   |                |   | -      |                       |   |   | - |   |   |   | 2,611 |   |
|   Share-based compensation expense                          |   |            | -          |   |         |   | -      |                     |   |   | 1,980                   |   |   |                                 | -       |   |                |   | -      |                       |   |   | - |   |   |   | 1,980 |   |
|   Other comprehensive loss, net                             |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | (2,037 | )                          |   |   | - |   |   |   | (2,037 | ) |
|   Net income                                                |   |            | -          |   |         |   | -      |                     |   |   | -                       |   |   |                                 | -       |   |                |   | -      |                       |   |   | 23,046 |   |   |   | 23,046 |   |
|                                                                  |   |            |       |   |         |   |   |                     |   |   |                    |   |   |                                 |    |   |                |   |   |                       |   |   |   |   |   |   |   |   |
| Balance as of December 31, 2018                                       |   |            | 80,089,658 |   |         |   | 214    |                     |   |   | 415,408                 |   |   |                                 | (20,091 | )      |                |   | (9,208 | )                          |   |   | (226,755 | ) |   |   | 159,568 |   |

----

----

|                                                                                                       |   | Year endedDecember 31, |   |
|------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                       |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
| Cash flows from operating activities:                                                                      |   |                   |   |   |   |   |   |   |   |
| Net income                                                                                                 |   | $                      | 11,429 |   |   | $ | 15,560 |   |   | $ | 23,046 |   |
| Adjustments required to reconcile net income to net cash provided by operating activities:                 |   |                   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                              |   |                   | 10,037 |   |   |   | 9,205 |   |   |   | 7,758 |   |
| Share-based compensation expense                                                                           |   |                   | 1,071  |   |   |   | 1,203 |   |   |   | 1,980 |   |
| Accrued severance pay and pensions, net                                                                    |   |                   | 28     |   |   |   | 3 |   |   |   | (11 | ) |
| Decrease (increase) in trade receivables, net                                                              |   |                   | 11,051 |   |   |   | (6,403 | ) |   |   | (11,098 | ) |
| Decrease (increase) in other accounts receivable and prepaid expenses (including other long term assets)   |   |                   | 4,747  |   |   |   | (259 | ) |   |   | 4,624 |   |
| Decrease (increase) in inventories                                                                         |   |                   | 4,706  |   |   |   | (8,592 | ) |   |   | (956 | ) |
| Increase (decrease) in trade payables                                                                      |   |                   | (2,355 | ) |   |   | 4,836 |   |   |   | 2,340 |   |
| Increase (decrease) in deferred revenues                                                                   |   |                   | (6,228 | ) |   |   | 2,575 |   |   |   | (650 | ) |
| Decrease )increase) in deferred tax assets, net                                                            |   |                   | 478    |   |   |   | 497 |   |   |   | (6,601 | ) |
| Increase (decrease) in other accounts payable and accrued expenses (including other long term liabilities) |   |                   | (9,193 | ) |   |   | (1,474 | ) |   |   | 2,062 |   |
|                                                                                                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                                  |   |                   | 25,771 |   |   |   | 17,151 |   |   |   | 22,494 |   |
|                                                                                                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Purchase of property and equipment, net                                                                    |   |                   | (8,190 | ) |   |   | (8,533 | ) |   |   | (10,303 | ) |
| Purchase and capitalization of intangible assets, net                                                      |   |                   | -      |   |   |   | (1,407 | ) |   |   | (3,412 | ) |
| Investment in bank deposits                                                                                |   |                   | (153   | ) |   |   | (996 | ) |   |   | 48 |   |
| Investment in shares                                                                                       |   |                   | -      |   |   |   | - |   |   |   | (1,628 | ) |
| Proceeds from maturities of short-term bank deposits                                                       |   |                   | 153    |   |   |   | - |   |   |   | - |   |
|                                                                                                       |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                                                      |   |                   | (8,190 | ) |   |   | (10,936 | ) |   |   | (15,295 | ) |

----

----

|                                                   |   | Year endedDecember 31, |    |
|--------------------------------------------------------|--------|------------------------|---------|
|                                                   |   | 2016                   |    |   | 2017 |   |   | 2018 |   |
| Cash flows from financing activities:                  |   |                   |    |   |   |   |   |   |   |
|                                                   |   |                   |    |   |   |   |   |   |   |
| Repayment of bank loan                                 |   |                   | (17,922 | ) |   |   | (17,000 | ) |   |   | - |   |
| Proceeds from exercise of options                      |   |                   | 75      |   |   |   | 294 |   |   |   | 2,611 |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Net cash (used in) provided by financing activities    |   |                   | (17,847 | ) |   |   | (16,706 | ) |   |   | 2,611 |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                |   |                   | 286     |   |   |   | 30 |   |   |   | (106 | ) |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents       |   |                   | 20      |   |   |   | (10,461 | ) |   |   | 9,704 |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at the beginning of the year |   |                   | 36,318  |   |   |   | 36,338 |   |   |   | 25,877 |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at the end of the year       |   | $                      | 36,338  |   |   | $ | 25,877 |   |   | $ | 35,581 |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:      |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for income taxes             |   | $                      | 1,370   |   |   | $ | 2,493 |   |   | $ | 1,617 |   |
|                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for interest                 |   | $                      | 1,739   |   |   | $ | 1,837 |   |   | $ | 1,752 |   |

----

----

| NOTE 1:- | GENERAL |
|----------|---------|

|  | a. | Ceragon Networks Ltd. ("the Company") is a wireless backhaul specialist. It provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services, enabling smart-phone applications such as internet browsing, social networking applications, image sharing, music and video applications. Its wireless backhaul solutions use microwave radio technology to transfer large amounts of telecommunication traffic between base stations and small-cells and the core of the service provider's network. The Company also provides wireless fronthaul solutions that use microwave technology for ultra-high speed, ultra-low latency communication between LTE/LTE-Advanced base band digital units stations and remote radio heads. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | Acquisitions: |
|--|----|---------------|

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES |
|----------|---------------------------------|

|  | a. | Basis of presentation: |
|--|----|------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES  (Cont.) |
|----------|-----------------------------------------------|

|  | b. | Use of estimates: |
|--|----|-------------------|

|  | c. | Financial statements in U.S. dollars: |
|--|----|---------------------------------------|

|  | d. | Principles of consolidation: |
|--|----|------------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | e. | Cash equivalents: |
|--|----|-------------------|

|  | f. | Short term bank deposits: |
|--|----|---------------------------|

|  | g. | Long-term bank deposits: |
|--|----|--------------------------|

|  | h. | Inventories: |
|--|----|--------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | i. | Property and equipment: |
|--|----|-------------------------|

|                                              | %                                                                     |
|---------------------------------------------------|-----------------------------------------------------------------------|
|                                              |                                                                  |
| Computers, manufacturing and peripheral equipment | 6 – 33                                                          |
| Enterprise Resource Planning systems ("ERP")      | 10                                                                    |
| Office furniture and equipment                    |  Mainly 15                                                       |
| Leasehold improvements                            | Over the shorter of the term of the lease or useful life of the asset |

|  | j. | Impairment of long-lived assets: |
|--|----|----------------------------------|

|  | k. | Income taxes: |
|--|----|---------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | l. | Intangible assets, net: |
|--|----|-------------------------|

|  | m. | Revenue recognition: |
|--|----|----------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | o. | Warranty costs: |
|--|----|-----------------|

|  | p. | Derivative instruments: |
|--|----|-------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | q. | Concentrations of credit risk: |
|--|----|--------------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | t. | Severance pay: |
|--|----|----------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|                    |   | December 31, |
|-------------------------|--------|--------------|
|                    |   | 2016         |   | 2017 |   | 2018 |
|                    |   |         |   |   |   |   |
| Dividend yield          |   | 0%           |   | 0% |   | 0% |
| Volatility              |   | 51%-73%      |   | 53%-69% |   | 53%-62% |
| Risk free interest      |   | 0.2%-2.1%    |   | 0.8%-2.2% |   | 1.8%-2.9% |
| Early exercise multiple |   | 2.20-3.40    |   | 2.10-2.20 |   | 2.00-2.30 |

|  | v. | Fair value of financial instruments: |
|--|----|--------------------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | Level 1 - | Valuations based on quoted prices in active markets for identical assets that the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Level 2 - | Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Level 3 - | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
|--|-----------|---------------------------------------------------------------------------------------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | w. | Comprehensive income: |
|--|----|-----------------------|

|                                                |   | Unrealized Gains (Losses) on Cash Flow Hedges |   |   | Foreign Currency Translation Adjustments |   |   | Total  |   |
|-----------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------|--------|--------|--------|--------|
|                                                |   |                                          |   |   |                                     |   |   |   |   |
| Balance as of January 1, 2018                       |   | $                                             | 303    |   |                                     | $      | (7,474 | )      |   | $ | (7,171 | ) |
|                                                |   |                                          |   |   |                                     |   |   |   |   |   |   |   |
| Other comprehensive income before reclassifications |   |                                          | (2,260 | )      |                                     |   | (1,150 | )      |   |   | (3,410 | ) |
| Amounts reclassified from AOCI                      |   |                                          | 1,373  |   |                                     |   | -      |   |   |   | 1,373 |   |
|                                                |   |                                          |   |   |                                     |   |   |   |   |   |   |   |
| Other comprehensive income                          |   |                                          | (887   | )      |                                     |   | (1,150 | )      |   |   | (2,037 | ) |
|                                                |   |                                          |   |   |                                     |   |   |   |   |   |   |   |
| Balance as of December 31, 2018                     |   | $                                             | (584   | )      |                                     | $      | (8,624 | )      |   | $ | (9,208 | ) |

|  | y. | Basic and diluted net earnings per share: |
|--|----|-------------------------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | aa. | Impact of recently issued Accounting Standards: |
|--|-----|-------------------------------------------------|

----

----

| NOTE 2:- | SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|----------|-----------------------------------------|

|  | ab. | Fair value measurement: |
|--|-----|-------------------------|

|                    |   | Year endedDecember 31, 2018              |   |
|-------------------------|--------|------------------------------------------|--------|
|                    |   | Fair value measurements using input type |   |
|                    |   | Level 2                                  |   |   | Total |   |
|                    |   |                                     |   |   |   |   |
| Derivatives instruments |   | $                                        | (1,028 | ) |   | $ | (1,028 | ) |
|                    |   |                                     |   |   |   |   |   |   |
| Total liabilities       |   | $                                        | (1,028 | ) |   | $ | (1,028 | ) |

|                    |   | Year endedDecember 31, 2017              |   |
|-------------------------|--------|------------------------------------------|--------|
|                    |   | Fair value measurements using input type |   |
|                    |   | Level 2                                  |   |   | Total |   |
|                    |   |                                     |   |   |   |   |
| Derivatives instruments |   | $                                        | (7     | ) |   | $ | (7 | ) |
|                    |   |                                     |   |   |   |   |   |   |
| Total liabilities       |   | $                                        | (7     | ) |   | $ | (7 | ) |

| NOTE 3:- | OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES |
|----------|------------------------------------------------|

|                                  |   | December 31, |   |
|---------------------------------------|--------|--------------|--------|
|                                  |   | 2017         |   |   | 2018 |   |
|                                  |   |         |   |   |   |   |
| Government authorities                |   | $            | 5,202  |   |   | $ | 6,573 |   |
| Deferred charges and prepaid expenses |   |         | 4,417  |   |   |   | 3,186 |   |
| Financial institutions                |   |         | 5,543  |   |   |   | - |   |
| Deposits receivable                   |   |         | 481    |   |   |   | 367 |   |
| Advances to suppliers                 |   |         | 467    |   |   |   | 812 |   |
| Hedging asset                         |   |         | 451    |   |   |   | 5 |   |
| Other                                 |   |         | 491    |   |   |   | 1,192 |   |
|                                  |   |         |   |   |   |   |   |   |
|                                  |   | $            | 17,052 |   |   | $ | 12,135 |   |

----

----

| NOTE 4:- | INVENTORIES |
|----------|-------------|

|              |   | December 31, |   |
|-------------------|--------|--------------|--------|
|              |   | 2017         |   |   | 2018 |   |
|              |   |         |   |   |   |   |
| Raw materials     |   | $            | 12,011 |   |   | $ | 15,065 |   |
| Work in progress  |   |         | 576    |   |   |   | 374 |   |
| Finished products |   |         | 41,577 |   |   |   | 38,070 |   |
|              |   |         |   |   |   |   |   |   |
|              |   | $            | 54,164 |   |   | $ | 53,509 |   |

|                                           |   | December 31, |    |
|------------------------------------------------|--------|--------------|---------|
|                                           |   | 2017         |    |   | 2018 |   |
| Cost:                                          |   |         |    |   |   |   |
| Computers, manufacturing, peripheral equipment |   | $            | 100,027 |   |   | $ | 111,012 |   |
| Office furniture and equipment                 |   |         | 2,954   |   |   |   | 2,201 |   |
| Leasehold improvements                         |   |         | 1,148   |   |   |   | 1,410 |   |
|                                           |   |         |    |   |   |   |   |   |
|                                           |   |         | 104,129 |   |   |   | 114,623 |   |
| Accumulated depreciation:                      |   |         |    |   |   |   |   |   |
| Computers, manufacturing, peripheral equipment |   |         | 70,956  |   |   |   | 78,317 |   |
| Office furniture and equipment                 |   |         | 2,502   |   |   |   | 1,856 |   |
| Leasehold improvements                         |   |         | 801     |   |   |   | 837 |   |
|                                           |   |         |    |   |   |   |   |   |
|                                           |   |         | 74,259  |   |   |   | 81,010 |   |
|                                           |   |         |    |   |   |   |   |   |
| Depreciated cost                               |   | $            | 29,870  |   |   | $ | 33,613 |   |

----

----

|  | a. | Intangible assets: |
|--|----|--------------------|

|                       |   | December 31, |   |
|----------------------------|--------|--------------|--------|
|                       |   | 2017         |   |   | 2018 |   |
| Original amounts:          |   |         |   |   |   |   |
|                       |   |         |   |   |   |   |
| Technology                 |   | $            | 1,225  |   |   | $ | 4,509 |   |
| Software development costs |   |         | 974    |   |   |   | 2,067 |   |
|                       |   |         |   |   |   |   |   |   |
| Intangible assets, net     |   | $            | 2,199  |   |   | $ | 6,576 |   |

|  | b. | Amortization expense for the years ended December 31, 2016, 2017 and 2018 amounted to $ 1,648, $ 1,544 and $0 , respectively. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------|

| NOTE 7:- | OTHER ACCOUNTS PAYABLE AND ACCRUED EXPENSES |
|----------|---------------------------------------------|

|                             |   | December 31, |   |
|----------------------------------|--------|--------------|--------|
|                             |   | 2017         |   |   | 2018 |   |
|                             |   |         |   |   |   |   |
| Employees and payroll accruals   |   | $            | 12,717 |   |   | $ | 15,389 |   |
| Provision for warranty costs     |   |         | 2,023  |   |   |   | 2,106 |   |
| Government authorities           |   |         | 3,172  |   |   |   | 2,450 |   |
| Accrued expenses                 |   |         | 4,682  |   |   |   | 3,529 |   |
| Advanced payments from customers |   |         | 1,629  |   |   |   | 1,864 |   |
| Hedging Liability                |   |         | 457    |   |   |   | 1,033 |   |
| Other                            |   |         | 101    |   |   |   | 885 |   |
|                             |   |         |   |   |   |   |   |   |
|                             |   | $            | 24,781 |   |   | $ | 27,256 |   |

----

----

| NOTE 9:- | DERIVATIVE INSTRUMENTS |
|----------|------------------------|

----

----

| NOTE 9:- | DERIVATIVE INSTRUMENTS (Cont.) |
|----------|--------------------------------|

|                                               |   | Loss recognized in Statements of comprehensive income |   | Statementof Operations item |                   | Gain (loss) recognizedin consolidated statements of operations |   |
|----------------------------------------------------|--------|-------------------------------------------------------|--------|----------------------------------|------------------------|---------------------------------------------------------------------|--------|
|                                               |   | December 31,                                          |   |                             | Year endedDecember 31, |                                                                |
|                                               |   | 2018                                                  |   |                             | 2016                   |                                                                |   | 2017 |   |   | 2018 |   |
|                                               |   |                                                  |   |                             |                   |                                                                |   |   |   |   |   |   |   |
| Derivatives designated as hedging instruments:     |   |                                                  |   |                             |                   |                                                                |   |   |   |   |   |   |   |
| Foreign exchange option and forward contract       |   | $                                                     | (584   | )                                | Operating expenses     |                                                                | $      | 261 |   |   | $ | 1,772 |   |   | $ | (1,373 | ) |
|                                               |   |                                                  |   |                             |                   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments: |   |                                                  |   |                             |                   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange forward contracts                 |   |                                                  | -      |                             | Financial expenses     |                                                                |   | (452 | ) |   |   | (2,538 | ) |   |   | 1,172 |   |
|                                               |   |                                                  |   |                             |                   |                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Total                                              |   | $                                                     | (584   | )                                |                   |                                                                | $      | (191 | ) |   | $ | (766 | ) |   | $ | (201 | ) |
|                                               |   |                                                  |   |                             |                   |                                                                |   |   |   |   |  |   |   |   |   |   |

|                                                                                                       |                                                 |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|--------|--------------|--------|
|                                                                                                       | Balance sheet                                             |   | 2017         |   |   | 2018 |   |
|                                                                                                            |                                                           |   |         |   |   |   |   |
| Derivatives designated as hedging instruments:Foreign exchange forward contracts                           | "Other account receivables and prepaid expenses"          |   | $            | 303    |   |   | $ | 3 |   |
|                                                                                                       | "Other account payables and accrued expenses"             |   | $            | -      |   |   | $ | (587 | ) |
|                                                                                                       | "Other comprehensive income (loss)"                       |   | $            | 303    |   |   | $ | (584 | ) |
|                                                                                                       |                                                      |   |         |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments:Foreign exchange forward contracts and other derivatives | "Other receivables and prepaid expenses"                  |   | $            | 148    |   |   | $ | 2 |   |
|                                                                                                       |   "Other account payables and accrued expenses" |   |  $      | (457   | ) |   |  $ | (446 | )  |

----

----

| NOTE 10:- | PENSION LIABILITIES, NET |
|-----------|--------------------------|

|                                              |   | December 31, |   |
|---------------------------------------------------|--------|--------------|--------|
|                                              |   | 2017         |   |   | 2018 |   |
|                                              |   |         |   |   |   |   |
| Change in projected benefit obligation            |   |         |   |   |   |   |
| Projected benefit obligation at beginning of year |   | $            | 2,373  |   |   | $ | 2,123 |   |
| Liability assumed at the acquisition date of Nera |   |         |   |   |   |   |   |   |
| Service cost                                      |   |         | 18     |   |   |   | 16 |   |
| Interest cost                                     |   |         | 47     |   |   |   | 47 |   |
| Expenses paid                                     |   |         | (143   | ) |   |   | (227 | ) |
| Exchange rates differences                        |   |         | (124   | ) |   |   | 121 |   |
| Actuarial loss (gain)                             |   |         | (48    | ) |   |   | 97 |   |
|                                              |   |         |   |   |   |   |   |   |
| Projected benefit obligation at end of year       |   | $            | 2,123  |   |   | $ | 2,177 |   |

----

----

| NOTE 10:- | PENSION LIABILITIES, NET (Cont.) |
|-----------|----------------------------------|

|                          |   | December 31, |   |
|-------------------------------|--------|--------------|--------|
|                          |   | 2017         |   |   | 2018 |   |
| Weighted-average assumptions  |   |         |   |   |   |   |
| Discount rate                 |   |         | 2.30   | % |   |   | 2.60 | % |
| Rate of compensation increase |   |         | 2.50   | % |   |   | 2.75 | % |

|                                    |   | December 31, |   |
|-----------------------------------------|--------|--------------|--------|
|                                    |   | 2017         |   |   | 2018 |   |
| Components of net periodic benefit cost |   |         |   |   |   |   |
| Service cost                            |   | $            | 18     |   |   | $ | 16 |   |
| Interest cost                           |   |         | 47     |   |   | $ | 47 |   |
|                                    |   |         |   |   |   |   |   |   |
| Net periodic benefit cost               |   | $            | 65     |   |   | $ | 63 |   |

|                |   | December 31, |   |
|---------------------|--------|--------------|--------|
|                |   | 2017         |   |   | 2018 |   |
|                |   |         |   |   |   |   |
|                |   |         |   |   |   |   |
| 2018                |   | $            | 227    |   |   | $ | - |   |
| 2019                |   |         | 260    |   |   |   | 180 |   |
| 2020                |   |         | 360    |   |   |   | 180 |   |
| 2021                |   |         | 189    |   |   |   | 189 |   |
| 2022 and thereafter |   |         | 1,087  |   |   |   | 1,628 |   |
|                |   |         |   |   |   |   |   |   |
|                |   | $            | 2,123  |   |   | $ | 2,177 |   |

----

----

| NOTE 11:- | COMMITMENTS AND CONTINGENT LIABILITIES |
|-----------|----------------------------------------|

|  | a. | Lease commitments: |
|--|----|--------------------|

| 2019                |   |   | 5,104  |   |
|---------------------|--------|--------|--------|--------|
| 2020                |   |   | 1,331  |   |
| 2021                |   |   | 546    |   |
| 2022                |   |   | 215    |   |
| 2023 and thereafter |   |   | 120    |   |
|                |   |   |   |   |
|                |   |   | 7,316  |   |

|  | b. | During 2016, 2017 and 2018, the Company received several grants from the Israeli Innovation Authority ("IIA"). The grants require the Company to comply with the requirements of the Research and Development Law, however, the Company is not obligated to pay royalties on sales of products based on technology or know how developed from the grants. In a case involving the transfer of technology or know how developed from the grants outside of Israel, the Company may be required to pay royalties related to past sales of products based on the technology or the developed know how. The Company recorded income from IIA grants for the years ended December 31, 2016, 2017 and 2018 in the amount of $ 2,536, $ 1,548 and $ 1,174, respectively. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | Charges and guarantees: |
|--|----|-------------------------|

|  | d. | In September 2018, the Company signed commercial agreements with Orocom, a new operator in Peru, to provide broadband connectivity in rural regions. The Peruvian Government (“Fitel”) chose Orocom for the deployment of transport and broadband access networks in three of six regions in Peru. Orocom is owned by a consortium of companies, comprising telecommunications license holders as well as companies with expertise in fiber-based technologies. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| NOTE 11:- | COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) |
|-----------|------------------------------------------------|

|  | e. | Litigations: |
|--|----|--------------|

----

----

| NOTE 11:- | COMMITMENTS AND CONTINGENT LIABILITIES (Cont.) |
|-----------|------------------------------------------------|

----

----

| NOTE 12:- | SHAREHOLDERS' EQUITY |
|-----------|----------------------|

|  | a. | General: |
|--|----|----------|

|  | b. | Stock options plans: |
|--|----|----------------------|

|  | 1. | In 2003, the Company adopted a share option plan (the "Plan"). Under the Plan, options and RSU's may be granted to officers, directors, employees and consultants of the Company or its subsidiaries. The options vest primarily over four years. The options expire between six to ten years from the date of grant. In December 2012, the Company extended the term of the Plan for an additional period of ten years. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | On September 6, 2010, the Company's board of directors amended the Plan so as to enable to grant Restricted share Units ("RSUs") pursuant to such Plan. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| NOTE 12:- | SHAREHOLDERS' EQUITY (Cont.) |
|-----------|------------------------------|

|  | 3. | The following is a summary of the Company's stock options and RSUs granted among the various plans: |
|--|----|-----------------------------------------------------------------------------------------------------|

|                                   |   | Year endedDecember 31, 2018 |       |
|----------------------------------------|--------|-----------------------------|------------|
|                                   |   | Numberof options            |       |   | Weightedaverageexerciseprice |   |   | Weighted average remaining contractual term(in years) |   |   | Aggregateintrinsicvalue |   |
|                                   |   |                        |       |   |   |   |   |   |   |   |   |   |
| Outstanding at beginning of year       |   |                        | 7,939,978  |   |   | $ | 3.61 |   |   |   | 3.75 |   |   | $ | 2,839 |   |
| Granted                                |   |                        | 1,273,145  |   |   |   | 3.33 |   |   |   |   |   |   |   |   |   |
| Exercised                              |   |                        | (1,930,244 | ) |   |   | 1.44 |   |   |   |   |   |   |   |   |   |
| Forfeited or expired                   |   |                        | (531,273   | ) |   |   | 6.00 |   |   |   |   |   |   |   |   |   |
|                                   |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding at end of the year         |   |                        | 6,751,606  |   |   |   | 3.99 |   |   |   | 3.47 |   |   |   | 7,937 |   |
|                                   |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at end of the year |   |                        | 4,150,587  |   |   |   | 4.97 |   |   |   | 2.76 |   |   |   | 4,517 |   |
|                                   |   |                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vested and expected to vest            |   |                        | 6,325,305  |   |   |   | 4.09 |   |   |   | 3.36 |   |   |   | 7,501 |   |

|                             |   | Year endedDecember 31, 2018 |     |
|----------------------------------|--------|-----------------------------|----------|
|                             |   | Number of RSUs              |     |   | Aggregate intrinsicvalue |   |
|                             |   |                        |     |   |   |   |
| Outstanding at beginning of year |   |                        | 327,093  |   |   | $ | 648 |   |
| Granted                          |   |                        | 186,608  |   |   |   |   |   |
| Exercised                        |   |                        | (112,665 | ) |   |   |   |   |
| Forfeited                        |   |                        | (24,225  | ) |   |   |   |   |
|                             |   |                        |     |   |   |   |   |   |
| Outstanding at end of the year   |   |                        | 376,811  |   |   |   | 1,424 |   |
|                             |   |                        |     |   |   |   |   |   |
| Vested and expected to vest      |   |                        | 264,496  |   |   |   | 1,000 |   |

----

----

| NOTE 12:- | SHAREHOLDERS' EQUITY (Cont.) |
|-----------|------------------------------|

| Exercise price(range) |        |   | Options and RSUs outstandingas ofDecember 31, 2018 |    |      | Weightedaverageremainingcontractuallife (years) |   |   | Weightedaverageexerciseprice |    |   | Options and RSUs exercisableas ofDecember 31, 2018 |   |   | Weightedaverageremaining contractual life (years for exercisable options) |   |      | Weightedaverageexerciseprice |   |
|-----------------------|-------------|--------|----------------------------------------------------|---------|-----------|-------------------------------------------------|--------|--------|------------------------------|---------|--------|----------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|-----------|------------------------------|--------|
|  $          |        |   |                                               |    |      |                                                 |        |   |                         | $  |   |                                               |   |   |                                                                      |        |      |                         |   |  | $  |   |
|                  |        |   |                                               |    |      |                                            |   |   |                         |    |   |                                               |   |   |                                                                      |   |      |                         |   |   |   |   |
|   RSUs 0.0       |        |   |                                               | 376,811 |      |                                            |   | -      |                         |    |   | 0.00                                               |   |   |                                                                      | -      |      |                         |   | - |   |   |   | 0.00 |   |
|                  | 0.01-2.00   |   |                                               |    | 1,899,640 |                                            |   |   | 2.74                         |    |   |                                               | 1.20   |   |                                                                      |   | 1,209,876 |                         |   |   | 2.58 |   |   |   | 1.19 |   |
|                  | 2.01-4.00   |   |                                               |    | 3,070,807 |                                            |   |   | 4.64                         |    |   |                                               | 2.79   |   |                                                                      |   | 1,159,552 |                         |   |   | 3.79 |   |   |   | 2.89 |   |
|                  | 4.01-6.00   |   |                                               |    | 478,501   |                                            |   |   | 2.10                         |    |   |                                               | 4.97   |   |                                                                      |   | 478,501   |                         |   |   | 2.10 |   |   |   | 4.97 |   |
|                  | 6.01-8.00   |   |                                               |    | 31,000    |                                            |   |   | 3.72                         |    |   |                                               | 6.50   |   |                                                                      |   | 31,000    |                         |   |   | 3.72 |   |   |   | 6.50 |   |
|                  | 8.01-10.00  |   |                                               |    | 643,574   |                                            |   |   | 2.60                         |    |   |                                               | 9.07   |   |                                                                      |   | 643,574   |                         |   |   | 2.60 |   |   |   | 9.07 |   |
|                  | 10.01-13.04 |   |                                               |    | 628,084   |                                            |   |   | 1.85                         |    |   |                                               | 12.36  |   |                                                                      |   | 628,084   |                         |   |   | 1.85 |   |   |   | 12.36 |   |
|                  |        |   |                                               |    |      |                                            |   |   |                         |    |   |                                               |   |   |                                                                      |   |      |                         |   |   |   |   |   |   |   |   |
|                  |        |   |                                               |    | 7,128,417 |                                            |   |   |                         |    |   |                                               |   |   |                                                                      |   | 4,150,587 |                         |   |   |   |   |   |   |   |   |

|                                    |   | Year endedDecember 31, |   |
|-----------------------------------------|--------|------------------------|--------|
|                                    |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|                                    |   |                   |   |   |   |   |   |   |   |
| Cost of revenues                        |   | $                      | 30     |   |   | $ | 54 |   |   | $ | 42 |   |
| Research and development                |   |                   | 151    |   |   |   | 229 |   |   |   | 313 |   |
| Selling and marketing                   |   |                   | 369    |   |   |   | 292 |   |   |   | 640 |   |
| General and administrative              |   |                   | 521    |   |   |   | 628 |   |   |   | 985 |   |
|                                    |   |                   |   |   |   |   |   |   |   |   |   |   |
| Total share-based compensation expenses |   | $                      | 1,071  |   |   | $ | 1,203 |   |   | $ | 1,980 |   |

|  | c. | Dividends: |
|--|----|------------|

----

----

|  | a. | Israeli taxation: |
|--|----|-------------------|

|  | 1. | Measurement of taxable income: |
|--|----|--------------------------------|

|  | 2. | Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the "Law"): |
|--|----|--------------------------------------------------------------------------------------------|

----

----

|  | 3. | Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969: |
|--|----|-----------------------------------------------------------------------------|

|  | 4. | Tax rates: |
|--|----|------------|

----

----

|  | 5. | Tax Reform in U.S: |
|--|----|--------------------|

|  | b. | The income tax expense (benefit) for the years ended December 31, 2016, 2017 and 2018 consisted of the following: |
|--|----|-------------------------------------------------------------------------------------------------------------------|

|              |   | Year endedDecember 31, |   |
|-------------------|--------|------------------------|--------|
|              |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|              |   |                   |   |   |   |   |   |   |   |
| Current           |   | $                      | 1,418  |   |   | $ | 1,200 |   |   | $ | 3,350 |   |
| Deferred          |   |                   | 343    |   |   |   | 497 |   |   |   | (6,601 | ) |
|              |   |                   |   |   |   |   |   |   |   |   |   |   |
|              |   | $                      | 1,761  |   |   | $ | 1,697 |   |   | $ | (3,251 | ) |
|              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Domestic (Israel) |   | $                      | 968    |   |   | $ | 1,533 |   |   | $ | (5,919 | ) |
| Foreign           |   |                   | 793    |   |   |   | 164 |   |   |   | 2,668 |   |
|              |   |                   |   |   |   |   |   |   |   |   |   |   |
|              |   | $                      | 1,761  |   |   | $ | 1,697 |   |   | $ | (3,251 | ) |

----

----

|  | c. | Deferred income taxes: |
|--|----|------------------------|

|                                                                                       |   | December 31, |     |
|--------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                       |   | 2017         |     |   | 2018 |   |
| Deferred tax assets:                                                                       |   |         |     |   |   |   |
|                                                                                       |   |         |     |   |   |   |
| Net operating loss carry forward                                                           |   | $            | 76,570   |   |   | $ | 75,755 |   |
| Temporary differences mainly relating to Research and Development, reserves and allowances |   |         | 31,566   |   |   |   | 24,875 |   |
|                                                                                       |   |         |     |   |   |   |   |   |
| Deferred tax asset before valuation allowance                                              |   |         | 108,136  |   |   |   | 100,630 |   |
| Valuation allowance                                                                        |   |         | (107,148 | ) |   |   | (93,154 | ) |
|                                                                                       |   |         |     |   |   |   |   |   |
| Deferred tax asset                                                                         |   |         | 988      |   |   |   | 7,476 |   |
|                                                                                       |   |         |     |   |   |   |   |   |
| Deferred tax liabilities:                                                                  |   |         |     |   |   |   |   |   |
|                                                                                       |   |         |     |   |   |   |   |   |
| Other temporary differences                                                                |   |         | (141     | ) |   |   | (28 | ) |
|                                                                                       |   |         |     |   |   |   |   |   |
| Deferred tax asset, net                                                                    |   | $            | 847      |   |   | $ | 7,448 |   |

|  | d. | Net operating loss carry forward and capital loss: |
|--|----|----------------------------------------------------|

----

----

|  | e. | Income (Loss) before taxes is comprised as follows: |
|--|----|-----------------------------------------------------|

|     |   | Year endedDecember 31, |   |
|----------|--------|------------------------|--------|
|     |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|     |   |                   |   |   |   |   |   |   |   |
| Domestic |   | $                      | (1,301 | ) |   | $ | 13,145 |   |   | $ | 17,921 |   |
| Foreign  |   |                   | 14,491 |   |   |   | 4,112 |   |   |   | 1,874 |   |
|     |   |                   |   |   |   |   |   |   |   |   |   |   |
|     |   | $                      | 13,190 |   |   | $ | 17,257 |   |   | $ | 19,795 |   |

|  | f. | Reconciliation of the theoretical tax expense to the actual tax expense: |
|--|----|--------------------------------------------------------------------------|

|                                                                                                     |   | Year endedDecember 31, |    |
|----------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                     |   | 2016                   |    |   | 2017 |   |   | 2018 |   |
| Income before taxes as reported in the consolidated statements of operations                             |   | $                      | 13,190  |   |   | $ | 17,257 |   |   | $ | 19,795 |   |
|                                                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Statutory tax rate                                                                                       |   |                   | 25      | % |   |   | 24 | % |   |   | 23 | % |
|                                                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Theoretical tax income on the above amount at the Israeli statutory tax rate                             |   | $                      | 3,298   |   |   | $ | 4,142 |   |   | $ | 4,553 |   |
| Non-deductible expenses                                                                                  |   |                   | 467     |   |   |   | 290 |   |   |   | 1,299 |   |
| Non-deductible expenses related to employee stock options                                                |   |                   | 268     |   |   |   | 289 |   |   |   | 376 |   |
| Changes in tax rate                                                                                      |   |                   | 8,900   |   |   |   | 124 |   |   |   | 179 |   |
| Losses in respect of which no deferred taxes were generated (including changes in valuation allowance)   |   |                   | (10,055 | ) |   |   | (3,225 | ) |   |   | (4,068 | ) |
| Recognition of deferred taxes during the year, for which valuation allowance was provided in prior years |   |                   |    |   |   |   |   |   |   |   | (7,200 | ) |
| Other                                                                                                    |   |                   | (1,117  | ) |   |   | 77 |   |   |   | 1,610 |   |
|                                                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Actual tax expense (benefit)                                                                             |   | $                      | 1,761   |   |   | $ | 1,697 |   |   | $ | (3,251 | ) |

----

----

|  | g. | The Company adopted the provisions of ASC topic 740-10, "Income Taxes". |
|--|----|-------------------------------------------------------------------------|

|                                       |   | December 31, |   |
|--------------------------------------------|--------|--------------|--------|
|                                       |   | 2017         |   |   | 2018 |   |
|                                       |   |         |   |   |   |   |
| Uncertain tax positions, beginning of year |   | $            | 4,686  |   |   | $ | 2,160 |   |
| Decreases in tax positions for prior years |   |         | (3,880 | ) |   |   | (304 | ) |
| Increases in tax positions for prior years |   |         | 49     |   |   |   | 18 |   |
| Increase in tax position for current year  |   |         | 1,305  |   |   |   | 499 |   |
|                                       |   |         |   |   |   |   |   |   |
| Uncertain tax positions, end of year       |   | $            | 2,160  |   |   | $ | 2,373 |   |

|                 |   | December 31, 2017 |     |   | Adjustments |   |   | January 1, 2018 |   |
|----------------------|--------|-------------------|----------|--------|-------------|--------|--------|-----------------|--------|
| Trade receivables    |   | $                 | 113,719  |   |        | $      | 117    |            |   | $ | 113,836 |   |
| Trade payables       |   | $                 | 75,476   |   |        | $      | 47     |            |   | $ | 75,523 |   |
| Accumulated deficits |   | $                 | (249,871 | )      |        | $      | 70     |            |   | $ | (249,801 | ) |

----

----

|                       |   | As Reported |     |   | Impact of Adoption |   |   | Amounts underTopic 605 |   |
|----------------------------|--------|-------------|----------|--------|--------------------|--------|--------|------------------------|--------|
| Consolidated Balance Sheet |   |        |     |   |               |   |   |                   |   |
| Trade receivables          |   | $           | 123,451  |   |               | $      | (741   | )                      |   | $ | 122,710 |   |
| Trade payables             |   | $           | 78,892   |   |               | $      | (84    | )                      |   | $ | 78,808 |   |
| Accumulated deficits       |   | $           | (233,955 | )      |               | $      | (657   | )                      |   | $ | (234,612 | ) |

|                              |   | As Reported |    |   | Impact of Adoption |   |   | Amounts underTopic 605 |   |
|-----------------------------------|--------|-------------|---------|--------|--------------------|--------|--------|------------------------|--------|
| Consolidated Statements of Income |   |        |    |   |               |   |   |                   |   |
| Revenue                           |   | $           | 343,874 |   |               | $      | (741   | )                      |   | $ | 343,133 |   |
| Cost of Sales                     |   | $           | 227,705 |   |               | $      | (84    | )                      |   | $ | 227,621 |   |
| Gross margin                      |   | $           | 116,169 |   |               | $      | (657   | )                      |   | $ | 115,512 |   |

----

----

|                                                                          |   |                                  |    |
|-------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                          |   | Twelve months ended December 31, 2018 |    |
|                                                                          |   |                                  |    |
| Balance, beginning of the period                                              |   | $                                     | 5,193   |   |
| New performance obligations                                                   |   |                                  | 12,746  |   |
| Reclassification to revenue as a result of satisfying performance obligations |   |                                  | (14,066 | ) |
|                                                                          |   |                                  |    |   |
| Balance, end of the period                                                    |   | $                                     | 3,873   |   |

| NOTE 15:- | SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION |
|-----------|------------------------------------------------|

|  | a. | The Company applies ASC topic 280, "Segment Reporting", ("ASC 820"). The Company operates in one reportable segment (see note 1a for a brief description of the Company's business). The total revenues are attributed to geographic areas based on the location of the end customer. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | The following tables present total revenues for the years ended December 31, 2016, 2017 and 2018 and long-lived assets as of December 31, 2016, 2017 and 2018: |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   |                   |    |
|---------------------------------------------------|--------|------------------------|---------|
|                                              |   | Year endedDecember 31, |    |
|                                              |   | 2016                   |    |   | 2017 |   |   | 2018 |   |
| Revenues from sales to unaffiliated customers:    |   |                   |    |   |   |   |   |   |   |
|                                              |   |                   |    |   |   |   |   |   |   |
| North America                                     |   | $                      | 40,236  |   |   | $ | 39,498 |   |   | $ | 41,384 |   |
| Europe                                            |   |                   | 43,457  |   |   |   | 45,448 |   |   |   | 38,919 |   |
| Africa                                            |   |                   | 19,872  |   |   |   | 12,111 |   |   |   | 23,690 |   |
| Asia-Pacific and Middle East                      |   |                   | 29,743  |   |   |   | 44,983 |   |   |   | 47,320 |   |
| India                                             |   |                   | 80,247  |   |   |   | 130,042 |   |   |   | 131,201 |   |
| Latin America                                     |   |                   | 80,086  |   |   |   | 59,951 |   |   |   | 61,360 |   |
|                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                              |   | $                      | 293,641 |   |   | $ | 332,033 |   |   | $ | 343,874 |   |
|                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Property and equipment, net, by geographic areas: |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Israel                                            |   | $                      | 23,162  |   |   | $ | 25,419 |   |   | $ | 28,494 |   |
|                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
| Others                                            |   |                   | 4,398   |   |   |   | 4,451 |   |   |   | 5,119 |   |
|                                              |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                              |   | $                      | 27,560  |   |   | $ | 29,870 |   |   | $ | 33,613 |   |
|                                              |   |                   |    |   |   |   |   |   |   |   |   |   |

----

----

| NOTE 15:- | SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Cont.) |
|-----------|-------------------------------------------------------------|

|  | c. | Major customer data as a percentage of total revenues: |
|--|----|--------------------------------------------------------|

|  | a. | Financial expenses, net: |
|--|----|--------------------------|

|                                                         |   | Year endedDecember 31, |   |
|--------------------------------------------------------------|--------|------------------------|--------|
|                                                         |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|                                                         |   |                   |   |   |   |   |   |   |   |
| Financial income:                                            |   |                   |   |   |   |   |   |   |   |
| Interest on deposits                                         |   | $                      | 242    |   |   | $ | 126 |   |   | $ | 111 |   |
| Foreign currency translation differences and derivatives (*) |   |                   | 966    |   |   |   | 2,522 |   |   |   | 3,981 |   |
|                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |                   | 1,208  |   |   |   | 2,648 |   |   |   | 4,092 |   |
| Financial expenses:                                          |   |                   |   |   |   |   |   |   |   |   |   |   |
| Bank charges and interest on loans                           |   |                   | (3,794 | ) |   |   | (4,830 | ) |   |   | (4,597 | ) |
| Foreign currency translation differences and derivatives     |   |                   | (3,717 | ) |   |   | (3,707 | ) |   |   | (5,844 | ) |
|                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |                   | (7,511 | ) |   |   | (8,537 | ) |   |   | (10,441 | ) |
|                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | $                      | (6,303 | ) |   | $ | (5,889 | ) |   | $ | (6,349 | ) |

|  | (*) | During 2016 and 2018 the Company recorded $ 907 and $ 969 income (respectively) upon collection of trade receivables balances from customers in Venezuela at a rate which was higher than the rate it could collect these receivables previously |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | b. | Net income per share: |
|--|----|-----------------------|

|                                                                                                       |   | Year endedDecember 31, |       |
|------------------------------------------------------------------------------------------------------------|--------|------------------------|------------|
|                                                                                                       |   | 2016                   |       |   | 2017 |   |   | 2018 |   |
| Numerator:                                                                                                 |   |                   |       |   |   |   |   |   |   |
| Numerator for basic and diluted net income per share - income available to shareholders of Ordinary shares |   | $                      | 11,429     |   |   | $ | 15,560 |   |   | $ | 23,046 |   |
|                                                                                                       |   |                   |       |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                               |   |                   |       |   |   |   |   |   |   |   |   |   |
| Denominator for basic net income per share - weighted average number of shares                             |   |                   | 77,702,788 |   |   |   | 77,916,912 |   |   |   | 78,579,013 |   |
|                                                                                                       |   |                   |       |   |   |   |   |   |   |   |   |   |
| Effect of dilutive securities:                                                                             |   |                   |       |   |   |   |   |   |   |   |   |   |
| Employee stock options and RSU                                                                             |   |                   | 910,740    |   |   |   | 2,025,441 |   |   |   | 2,442,514 |   |
|                                                                                                       |   |                   |       |   |   |   |   |   |   |   |   |   |
| Denominator for diluted net income per share - adjusted weighted average number of shares                  |   |                   | 78,613,528 |   |   |   | 79,942,353 |   |   |   | 81,021,527 |   |

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|                                     |   | Year endedDecember 31, |   |
|------------------------------------------|--------|------------------------|--------|
|                                     |   | 2016                   |   |   | 2017 |   |   | 2018 |   |
|                                     |   |                   |   |   |   |   |   |   |   |
| Revenues                                 |   | $                      | 95     |   |   | $ | 173 |   |   | $ | 3,336 |   |
| Cost of revenues                         |   | $                      | 3,561  |   |   | $ | 2,160 |   |   | $ | 1,111 |   |
|                                     |   |                   |   |   |   |   |   |   |   |   |   |   |
| Research and development expenses        |   | $                      | 1,093  |   |   | $ | 1,063 |   |   | $ | 1,008 |   |
|                                     |   |                   |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing expenses           |   | $                      | 733    |   |   | $ | 813 |   |   | $ | 771 |   |
|                                     |   |                   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses      |   | $                      | 1,109  |   |   | $ | 995 |   |   | $ | 1,067 |   |
|  Purchase of property and equipment |   | $                      | 1,019  |   |   | $ | 224 |   |   | $ | 148 |   |
|                                     |   |                   |   |   |   |   |   |   |   |   |   |   |

|                                                        |   | December 31, |   |
|-------------------------------------------------------------|--------|--------------|--------|
|                                                        |   | 2017         |   |   | 2018 |   |
|                                                        |   |         |   |   |   |   |
| Trade payables, other accounts payable and accrued expenses |   | $            | 363    |   |   | $ | 2,077 |   |
| Trade Receivables                                           |   | $            | 49     |   |   | $ | 1,733 |   |

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