Alvarion Reports Record Revenues and Profits for Q3 2008

Revenues up 23% and profits up 29% from Q3 2007. WiMAX shipments of over $390M.

TEL AVIV, Israel – November 3, 2008 - Alvarion Ltd.  (NASDAQ: ALVR), the world’s leading provider of WiMAX and wireless broadband solutions, today announced financial results for the third quarter ended September 30, 2008. 

Highlights:

• Record revenues of $74.3 million, up 23% from Q3 2007
• GAAP net income up 29% compared to Q3 2007; Non-GAAP net income up 24%
• Non-GAAP EPS of $0.05; GAAP EPS of $0.01
• WiMAX revenues of $49.5 million, up 41% from Q3 2007
• Cumulative WiMAX shipments of over $390 million
• Cash reserves of $146 million

In the third quarter of 2008, revenues increased to $74.3 million, a 23% increase from $60.6 million in the third quarter of 2007, and a 7% increase from $69.7 million in the second quarter of 2008.  BreezeMAX® revenues in Q3 2008 were over $49 million, or about 67% of total revenues. 

GAAP net income in the third quarter of 2008 was $803,000, or $0.01 per share, compared to GAAP net income of $621,000, or $0.01 per share, in Q3 of 2007, which included income from discontinued operations of $750,000 , and GAAP net loss of $(812,000), or $(0.01) per share, in Q2 2008.

Excluding amortization of acquired intangibles, stock based compensation expenses and discontinued operations, the company reported non-GAAP net income of $3.0 million, or $0.05 per diluted share, compared with non-GAAP net profit of $2.4 million, or $0.04 per diluted share, in Q3 2007, and $1.7 million, or $0.03 per diluted share in the second quarter of 2008. 

Cash reserves as of September 30, 2008 totaled approximately $146 million. 

For supplemental information to facilitate evaluation of the impact of non-cash charges, results of discontinued operations and comparisons with historical results, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q3 and the first nine months of 2008 and the comparative periods.

Comments from Management

“Q3 was an excellent quarter with record revenues and shipments, improved profitability and strong bookings.  The U.S.  dollar strengthened during the quarter, so currency translation had less of an impact than we had expected.  We also achieved several business milestones including being awarded the first major project with Nortel, and two major expansions of existing customers’ projects in Europe and Latin America.

“This strong execution occurred in a climate of increasingly negative sentiment resulting from the spreading credit crisis and subsequent predictions of global recession.  These macro-economic factors are becoming a looming threat at a time when our own visibility is much better than a year ago, and the company is stronger than ever in terms of both business and financial parameters.  If we are heading into a slowdown, we are doing so with excellent momentum. 

“Current metrics such as number of projects in the pipeline, bookings and customer feedback are still giving positive signals, but we also have seen a few projects move more slowly for reasons unrelated to the economy.  Therefore, we are adopting a cautious stance in our assumptions about the timing of shipments and related revenues.  In addition, we are preparing to operate within a more difficult business climate as we move into 2009.  We will intensify our expense control efforts, adopt even more conservative credit policies, and continually monitor our bookings and pipeline of business in order to focus our resources on the projects most likely to move forward regardless of the economic environment.  During this period of uncertainty, we will concentrate on maintaining maximum flexibility and prepare to take action if the market weakens, with the main goal of capturing market share from weaker competitors or those changing their focus.”
 

Monday, November 03, 2008 in Business  | Permalink |  Comments (0)

Clearwire Sets Date for Shareholders To Vote on New WiMAX Venture

Clearwire Shareholders to Vote November 20, 2008 To Combine the Sprint and Clearwire 4G Businesses and $3.2 Billion Equity Infusion from Strategic Investors.

According to a press release issued Thursday, Clearwire has begun the process to enable its shareholders to vote on the proposed venture with Sprint, Intel, Google, and others to build a nation-wide mobile WiMAX network.  The company has announced it will begin mailing proxy statements to all Clearwire stockholders on record as of October 15, 2008.  The special meeting of stockholders will occur at 9 am PT on November 20, 2008 at the Hyatt Regency hotel in Bellevue, Washington.

“The stockholder vote is one of the final steps required to close the transaction with Sprint before the end of the year,” said Benjamin G.  Wolff, chief executive officer of Clearwire.  “The explosive growth of mobile data usage and revenue demonstrates that consumers want both high-speed and mobility when it comes to their communications services.  The new Clearwire will present an unparalleled opportunity to meet that demand by delivering a true broadband experience for our customers both at home and on the go.”

On May 7, 2008, Clearwire announced that it had entered into agreement with Sprint to combine their next-generation wireless broadband businesses to form a new independent company to be called Clearwire.  In addition, Intel Corporation, Google, Comcast, Time Warner Cable and Bright House Networks have collectively agreed to invest a total of $3.2 billion into the new venture.

Clearwire’s board of directors has by unanimous vote of all directors voting recommended that the Company’s stockholders vote in favor of the transaction as they believe it is strategically and financially beneficial to the Company with the potential to create significant long-term value for its stockholders.  The transaction is expected to close during the fourth quarter of 2008.

This is great news for the industry and another milestone in the avalability of affordable, mobile broadband services in the US.

Friday, October 17, 2008 in Deployments  | Permalink |  Comments (0)

Sprint's Baltimore Launch Showcases the Performance Advantage of WiMAX

Demonstrations in various real-life scenarios show the possibilities of full mobility, muti-megabit broadband; 3x performance improvement relative to current 3G offerings.

In conjunction with the official launch of the Baltimore market on Wednesday, Sprint's XOHM team along with its partners at Intel assembled a wide range of opportunities to see the new WiMAX network in action.

For the event, the team had outfitted a number of "XOHM carts" with the latest OEM products from the WiMAX ecosystem partners. Products featured included newly announced embedded WiMAX laptops from Acer, Lenovo and Toshiba as well as laptop express cards from Samsung and ZTE. The carts also featured the Nokia 810 WiMAX enabled handheld tablets.






One of the interesting applications featured was video chatting sessions initiated via Google Talk ™ using the embedded cameras on the Nokia 810. These were done with other 810 devices located at adjacent booths.







Inner Harbor Boat Ride

After stopping by the carts, I headed over to the water taxis to get a better view of the harbor and check out the other products. On board, were 2 embedded WiMAX laptops from Lenovo & Acer as well as 2 other notebooks equipped with express cards from Samsung and ZTE.






During the ride, we accessed several data-intensive applications to test out the network, including video site Hulu™ and Google Maps™. The video was clear with no buffering; the maps on Google loaded quickly. We also ran several speed tests, receiving up to 4.7Mbs on the downlink and 1.0Mbs on the uplink. This was impressive given the difficulties of planning an RF network with so much water as Sprint's Barry West pointed out during his keynote.





WiMAX in the Home

Next up was to visit the WiMAX connected home where the XOHM team had configured devices as they would be used at home. Inside were a variety of devices including a large screen television and a VoIP phone, both connected by a ZyXEL WiMAX Modem. There we ran another speed test and got slightly better performance than in the harbor - 5.2Mbs down and 1.3Mbs on the uplink.





3G Comparisons

While these speeds are impressive, a common question is how WiMAX compares to existing 3G networks. To answer that question, the XOHM team had set up two laptops - one running Sprint's EVDO Rev-A, the other running on the new WiMAX network.



The laptop running on the 3G network, achieved speeds of 1.3Mbs on the down link, but only 490Kbs on the uplink. While impressive, this paled in comparison to WiMAX laptop which was able to receive 3.1Mbs and 1.7Mbs on the downlink/uplink, respectively. With new applications such as video chatting, having high-speed uplinks as well as downlinks is crucial to achieve a high user experience.








While the devices featured and performance was impressive, what was even more remarkable was the number of WiMAX ecosystem partners that were on hand and the new products announced with just the first network up and running. Representatives from Sprint, Intel, Motorola, Nokia, Nokia-Siemens Netwoks, Samsung, ZTE and ZyXEL were all available, as well as OEM partners Acer, Asus, Lenovo and Toshiba.

Congratulations to the XOHM team and all the WiMAX partners for achieving this significant milestone.
 

Thursday, October 09, 2008 in Deployments  | Permalink |  Comments (1)

Top 10 Key Take-Aways from WiMAX World 2008

The 2008 WiMAX World show wrapped up this week in Chicago and offered a nice perspective on the industry and the possibilities of full-mobility, wireless broadband connectivity.

The show also coincided this week with the announcement by Sprint on the commercial launch of its XOHM WiMAX network in Baltimore.  Below are a few highlights and perspectives from the week:

(1) WiMAX ecosystem is growing & beginning to scale

WiMAX now includes over 100 global commercial deployments and growing.  Hundreds of devices have been developed and the WiMAX Forum numbers over 500 members committed to building WiMAX products and services.  With recent wave 2 certifications, WiMAX ecosystem partners are ready for large scale deployments.

The advantages of WiMAX are clear, especially in emerging markets where it is the undisputed technology for wireless broadband access.  WiMAX equipment is available now and has cost advantages compared to other technologies.  "WiMAX is cheaper to deploy compared to cellular networks and the infrastructure cost less," according to Fred Wright, Motorola Senior VP, during his keynote.

(2) Sprint delivers XOHM



On Monday, Sprint announced the commercial roll-out of their first WiMAX network for the Baltimore market in-line with time tables announced earlier this year from XOHM's president Bary West.  Although impacted by prior delays, the launch still represented one of the fastest deployments for any technology, from approval of the 802.16e standard in late 2005 to full commercial deployment.  Although capable of higher speeds, Sprint is advertising average down-link speeds of 2-4 Mbs.  Laptop Magazine has a nice evaluation of the Baltimore network and comparison to Verizon's EVDO network.

With the launch, Sprint also announced their new open, no-contract service plans that allows customers to pick plan according to their usage, including day passes for $10 and monthly service options for $25-$30.

(3) Clearwire on track

During his keynote, Clearwire CEO Ben Wolff, cited operations in 46 markets covering 16M people with over 500K subscribers on its current "pre-WiMAX" network, with plans to expand to markets covering 60-80M people by end of 2009 and 120-140M by the end of 2010.  The new WiMAX network will be rolled-out as an overlay in its existing markets giving its customer the option to switch on their schedule.  "We will operate two networks simultaneously and that way we won't have to force customers to switch over," said Wolff.

Also notable was the amount of new subscribers that Clearwire has aquired in markets where customers already have broadband.  Reportedly, 95% have access to either cable or DSL options and 2/3 were switching from existing broadband services.  People's ability to "take their broadband experience with them" and "converged services" was driving the demand.  Wolff also note that "increased productivity and new applications are possible" when people have access to their content where ever they go.

Wolff also re-iterated that the new Clearwire (the new venture with Sprint, Intel, Google and cable companies) is on track to close this year.  The FCC has also expressed their intention to finalize regulatory approval before the end of the year and the new administration takes office.


(4) Current 3G networks will struggle with increased data usage

New internet applications are driving increased demands on existing networks.  The amount of data on networks is doubling every 2 years.  During his keynote, Dan Moloney, Executive Vice President, Motorola, Inc., mentioned that over 27% of traffic on the internet now is from YouTube videos.  These applications can only scale on 4G networks with an all IP core.

We have seen these problems now with the iPhone on its current 3G network which was primarily built for voice traffic.  Although capable of achieving higher speeds, most users experience 400-700 Kbps.  Performance will only degrade as more subscribers are added to the network.


(5) LTE is not a natural migration from GSM. 

In the 4G community, a popular reason often cited for the adoption of LTE by existing GSM carriers is that it will be an upgrade from the current 3G networks and will require less capex.  According to Siavash Almouti, Intel Fellow and Chief Technology Officer of the Mobility Wireless Group, this is just not true. 

"Any migration from 3G to LTE will require a Forklift upgrade and require the replacement of 90-95% of the existing capex," says Almouti.  "It is ok for operators to say that they are selecting LTE for roadmap or vendor considerations, but the same infrastructure changes and investments will be necessary for any migration to an all IP based 4G network."


(6) Stickers will not improve the performance of a 3G network.



On Monday, the GSM community issued a press release (coincidently on the same day that Sprint launched the XOHM network in Baltimore) that they were launching a $1B (that's billion) marketing campaign to promote the adoption of 3G HSDPA networks.  According to the press release, they have come up with a new campaign along with a badge to put on the devices.  The companies behind the initiative include Dell, Ericson, and Qualcomm among others.

(7) The future 802.16m WIMAX profile is VERY fast

During his keynote, Siavash Alamouti with Intel outlined some of the details on the follow-on to the 802.16e standard.  It is reported to offer theoretical speeds up to 300MB with full mobility up to 350KM.  The profile will also support both FDD and TDD and be fully back-ward compatible with the current networks being deployed. 

(8) Cisco's Beam Forming Technology allows for better in-building propagation

Ok, in full disclosure, I should mention that Cisco is a WiMAX.com sponsor, but thought this is an interesting point.  There has been a lot of discussion lately on femtocells as a way to improve signal performance within buildings.  Femtocells are small micro-base stations that are used inside buildings to increase performance and coverage and then back-hauled over the buildings broadband service.

Cisco, as well as several other carriers, use advanced beam-forming technology to get near 100% in building coverage even with spectrum at 3.5Ghz.  This just illustrates that even though two products may be WiMAX Certified™ and comply with interoperability standards, there are still many other performance factors to consider when based on the requirements and business models being implemented.


(9) Motorola has the best looking WiMAX USB Dongle



There were a number of USB WIMAX dongles and reference designs on the show floor from various vendors.  The USBw 100 WiMAX adapter below supports 2.3, 2.5 and 3.5 GHz bands and will be available for the Chicago launch.  The device also won "Best of WiMAX World" awards in two categories:  Best Peripheral Device & Industry Choice


(10) The XOHM CPE still looks like a two-handled coffee mug!



The ZyXEL MAX-206M2 CPE is the residential gateway CPE that Sprint is deploying in its Baltimore launch.  Apparently the design allows for multiple antennas and better performance.
 

Friday, October 03, 2008 in Business  | Permalink |  Comments (0)

XOHM WiMAX Broadband Service Debuts in Baltimore

New 4G wireless era dawns as unique business model revolutionizes mobile Internet access. Service-plan innovation includes $50 “Pick 2 for Life” offer without usage limitations.

HERNDON, Va.  – Sept.  29, 2008 (Press Release)

A next-generation 4G wireless network based on mobile WiMAX technology debuted today in Baltimore, heralding the start of a new era for wireless consumers as Sprint (NYSE: S) officially launched XOHM TM mobile broadband commercial service in the first major U.S.  city.

“This is truly an historic day with the birth of a completely new Internet-based business model that alters the dynamics of the traditional telecom industry,” explained Barry West, president of Sprint’s XOHM business unit.  “Wireless consumers will experience WiMAX device and XOHM service innovation on multiple levels as the computer, Internet, telecom and consumer electronics industries converge to redefine wireless mobility.”

XOHM WiMAX will extend the home or office Internet experience and mobile multimedia applications to other places and additional devices.  With XOHM, consumers, businesses and local governments will ultimately be able to experience new forms of interactive communications, high-speed mobile Internet browsing, social-networking tools, location-centric services and multimedia including music, video and on-demand products at faster average downlink speeds of 2-4 Mbps.  The data-centric XOHM broadband service differs from present wireless offerings in that:

- No long-term commitments or contracts are required, freeing customers from restrictive long-term subsidized plans;
- Monthly home, on-the-go and day-pass Internet plans provide service choices;
- A single monthly charge covers service for multiple WiMAX access devices;
- WiMAX devices are purchased like other computing/consumer electronic devices,
- XOHM broadband service is self-activated and includes future updates capability;
- Customers can enjoy an Internet portal offering enhanced mobile services;
- The Open Internet business model transcends other carriers’ wireless walled gardens that restrict services, choice and innovation.

Starting today, customers can purchase XOHM-branded Samsung Express air cards for $59.99 and ZyXEL modems for $79.99 via XOHM web, telesales or select Baltimore-area independent retailers.  Additional WiMAX devices such as a ZTE USB modem, Intel Centrino 2 WiMAX notebook PCs and the Nokia N810 WiMAX Edition are expected in market later this year.

Introductory offers allow customers to choose from both daily and month-to-month service options.  At launch, mobile WiMAX service plans include a $10 Day pass, $25 monthly Home Internet service and $30 monthly On-the-go service.  Special launch pricing includes a $50 “Pick 2 for Life” monthly service option covering two different WiMAX devices.  Visit www.xohm.com to view the current XOHM WiMAX coverage area, details of the introductory broadband service offerings and device sales information.

XOHM subscribers will be given free access to a unique and customizable Web site, called MyXOHM, focusing primarily on local services and entertainment content, as well as providing security services, hosted storage and interactive communications.  After choosing preferences, subscribers will have their content pushed to a customized and location-aware portal via small digestible widgets.

XOHM continues to work with WiMAX ecosystem partners and others to incorporate WiMAX technology in a range of computing, portable multimedia, interactive and other business and consumer electronic devices, including the availability of XOHM WiMAX in vehicles for navigation information, news and entertainment.

Sprint will be the first and only national wireless carrier to offer customers a dual–mode 3G - 4G device that extends the power of Sprint’s NOW network.  Expected to launch in the fourth quarter, this Sprint device will operate on the nation’s largest 3G mobile broadband network and the 4G network in Baltimore and other markets as WiMAX service becomes available.

The Baltimore XOHM service launch is one of the most rapid ever for new network development, approximately two years after Sprint’s selection of WiMAX IEEE 802.16e as a technology standard and the formation of a charter WiMAX ecosystem with Intel, Samsung and Motorola.  Those firms shared a common vision of next-generation mobility services predicated on an embedded chipset model and the wireless enablement of millions of consumer electronic devices that lack wireless connectivity or Internet capability.  Nokia, Nokia Siemens Networks, Google, ZTE, ZyXEL and others have since joined the XOHM WiMAX ecosystem.

Sprint’s XOHM business unit focuses on developing the WiMAX ecosystem and standards to bring the latest broadband wireless technology to U.S.  customers while pursuing roaming and interoperability agreements globally.  The XOHM WiMAX network utilizes the 2.5 GHz spectrum holdings that were combined in the Sprint and Nextel merger to deploy next-generation technology.  XOHM uses WiMAX infrastructure developed by Samsung Electronics Corporation Ltd.  and has worked with them in deployment and buildout of the Baltimore-area WiMAX network.  Additional markets are in various stages of infrastructure development for commercial readiness.  These efforts are ultimately intended to allow customers to experience a nationwide 4G mobile broadband network that is designed to offer faster speeds, lower cost, greater convenience and enhanced multimedia quality.

As announced earlier this year, Sprint expects to complete the anticipated combination of its XOHM WiMAX business assets with Clearwire to form a new company in the fourth quarter.  This new company, to be called Clearwire, will continue to expedite the deployment of a nationwide mobile WiMAX network.  Following the transaction, Sprint will be the only national wireless carrier to sell 4G services through an MVNO structure with the new Clearwire.


About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users.  Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two wireless networks serving nearly 52 million customers at the end of the second quarter 2008; industry-leading mobile data services; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone.  For more information, visit www.sprint.com.

For more information on Sprint’s XOHM business unit, visit www.xohm.com.

SAFE HARBOR

This news release includes “forward-looking statements” within the meaning of the securities laws.  The statements in this news release regarding plans for the development and deployment of a broadband network based on WiMAX technology; the timing, availability, capabilities, coverage, and costs of the WiMAX network; products and services to be offered on the WiMAX network; and other statements that are not historical facts are forward-looking statements.  The words “estimate,” “project,” ”forecast,” “intend,” “expect,” “believe,” “target,” “providing guidance” and similar expressions are intended to identify forward-looking statements.  Forward-looking statements are projections reflecting management’s judgment and assumptions based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.

Future performance cannot be assured.  Actual results may differ materially from those in the forward-looking statements due to a variety of factors, including, but not limited to:

- the uncertainties related to the implementation of the company’s WiMAX business strategy;
- the costs and business risks associated with deploying a WiMAX network and offering products and services utilizing WiMAX technology;
- the inability of third-party suppliers, software developers and other vendors to perform requirements and satisfy obligations necessary to create the products and software designed to support WiMAX features and functionality, under agreements with Sprint Nextel;
- the impact of adverse network performance;
- other risks referenced from time to time in the company’s filings with the Securities and Exchange Commission, including in the Form 10-K for the year ended December 31, 2006, in Part I, Item 1A, “Risk Factors” and subsequently filed quarterly reports on Form 10-Q. 

Sprint Nextel believes the forward-looking statements in this press release are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release.  Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release.
 

Monday, September 29, 2008 in Deployments  | Permalink |  Comments (0)

Sprint's WiMAX Network Operational; Official Launch set for October 8th

Historic event celebrates the first commercially available mobile WiMAX network in a major U.S. city.

According to invitations being circulated this week to reporters and analysts, Sprint plans to celebrate the launch of its first XOHM WiMAX network in Baltimore on October 8th.  Sources say the network is already operational with the event planned to allow coordination with executive schedules.

The event will include remarks by Sprint's CEO Dan Hesse as well as  Barry West, Chief Technology Officer & President, XOHM Sprint Nextel, and Sean Maloney, Executive Vice President, Chief Sales and Marketing Officer, Intel Corporation.  Also on hand will be executive from the WiMAX ecosystem partners.  The event is also scheduled to include demonstrations of WiMAX products in real life settings.

This is great milestone and significant achievement for the industry.  With WiMAX World in Chicago next week, we may expect to hear more details then.

Tuesday, September 23, 2008 in Deployments  | Permalink |  Comments (0)

Latest PC OEMs support WiMAX - Intel Development Forum, San Francisco

The Intel Developer Forum is in full-swing this week in San Fransciso, demonstrating new quad-core processors for mobile devices and WiMAX support for laptops PCs.

During his keynote speech, Dadi Perlmutter, VP and GM of Intel's Mobility Group also announced that Dell and Sony are now public in their plans to add WiMAX (including Intel’s upcoming wifi-wimax module) in some future laptop models.
 

These two PC makers join Acer, Asus, Lenovo, Panasonic, and Toshiba as being public on their plans, and show the variety of industries involved in the network – telecom, PC and consumer electronics with of course companies like Comcast, Google and Time Warner being part of the proposed new Clearwire venture.
 

Wednesday, August 20, 2008 in Applications  | Permalink |  Comments (0)

Dell Offers WiMAX with new E Laptop series

The new systems powered by Intel's Centrino 2 platform offer options such as backlit keyboards, SSD hard drives, and connectivity options including mobile broadband, 802.11n Wi-Fi and WiMAX.

Dell today announced the launch of their new Latitude line of E series business laptops. The new PCs featuring Intel's latest Centrino 2 platform include a number of features included expanded battery life and support for WiMAX.
 

Dell is breaking the line into 4 categories, including a new Ultra-Portable category featuring the E4200 (12.1-inch, 2.2 pounds), and the E4300 (13.3-inch, 3.3 pounds).

Other Categories include a mainstream line featuring larger screens (E6400 and E6500), a value-priced line (E5400 & E5500) with prices starting at $839USD, and a semi-rugged version (E6400 ATG) starting at $2,339USD.

Most of the products are available now, with the ultra-portable products are planned to ship in September.

This is great to see a major PC vendor embracing WiMAX and the timing ultra-mobile products should coincide nicely with the Sprint & Clearwire launches in the US occurring in the next few months.

Tuesday, August 12, 2008 in Applications  | Permalink |  Comments (2)