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Alvarion® Reports Q3 2009 Results
Tel Aviv, November 04, 2009 — 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, 2009.
Business highlights include:
- Selected as vendor to Clearwire International
- Implementing turnkey projects in U.S., Taiwan, Italy and Kenya
- Two new customer wins through expanded NSN partnership
- Introduced outdoor macro base station and WiMAX solution for license exempt frequencies
Q3 Financial Highlights:
- Returned to Non-GAAP Profitability in Q3 and Year-to-Date Results
- Revenues stable sequentially
- GAAP net loss of ($0.02) per share; Non-GAAP net income of $0.00 per share
- WiMAX shipments down 4% sequentially to $37.5 million, reflecting project delays
- WiMAX revenues down 10% sequentially to $40.5 million
- Order pattern continues gradual improvement
In the third quarter of 2009, total revenues were $58.4 million, a decrease of
0.6% from $58.7 million in the second quarter of 2009, and a decrease of 21%
from $74.3 million in the third quarter of 2008.
GAAP net loss in the third quarter of 2009 was ($1.0) million, or ($0.02) per
share, compared to net loss of ($4.0) million, or ($0.06) per share in Q2 2009.
GAAP net income in the third quarter of 2008 was $0.8 million, or $0.01 per
share.
Excluding the amortization of intangibles, stock based compensation expenses and
other charges, net, on a non-GAAP basis, the company reported net income in the
third quarter of 2009 of $0.2 million, or $0.00 per diluted share, compared with
non-GAAP net loss of ($0.6) million, or ($0.01) per diluted share in the second
quarter of 2009, and non-GAAP net income of approximately $3.0 million, or $0.05
per diluted share in the third quarter of 2008. Please refer to the accompanying
financial table for reconciliation of GAAP financial information to non-GAAP for
the third quarter of 2009 and the comparative periods.
Cash used in operations was ($4.7) million. As of September 30, 2009, cash, cash
equivalents and investments were $125 million.
Comments from Management
“We achieved non-GAAP breakeven results on approximately the same level of
revenues as the second quarter, as a result of higher gross margin from a
favorable revenue mix combined with our success in improving operating
leverage,” said Tzvika Friedman, president and CEO of Alvarion. “Our challenge
in Q3 related mainly to the impact on revenues of regulatory delays in making
spectrum available and the tight credit environment which slowed the pace of
some deployments. Meanwhile, fundamental demand remains robust, the WiMAX
ecosystem is expanding, and operators are experiencing subscriber growth. As a
result, operators’ interest in our solution is also growing, and we continue to
be encouraged by the gradual improvement in order intake.
“We expect a similar quarter in Q4, followed by a gradual recovery which is
expected to begin during the first half of 2010 based on improving demand, plus
our ability to reach revenue recognition milestones on projects already won.
Catalysts for improving demand may include easing of tight credit conditions,
new projects funded under the U.S. broadband stimulus program, and WiMAX license
auctions in India. By the end of 2009, the result of streamlining and
simplifying the organization will have taken full effect, bringing our revenue
breakeven level to approximately $58 million. This will position us to benefit
from further operating leverage as revenues improve.
“Longer term, we expect continued growth in demand for WiMAX based on low
broadband penetration in many countries and continuing growth in demand for
data-intensive applications on mobile platforms, aided by additional spectrum
availability and the proliferation of new devices.”
Q4 2009 Guidance.
The company’s revenue guidance for Q4 2009 is from $55 to $63 million. Based on
the indicated revenue range, Q4 non-GAAP per share results are expected to range
between a loss of ($0.04) and profit of $0.02. GAAP per share results are
expected to range between a loss of ($0.07) and ($0.01).
About Alvarion
Alvarion (NASDAQ: ALVR) is the largest WiMAX pure-player with the most extensive
WiMAX customer base and over 250 commercial deployments around the globe.
Committed to growing the WiMAX market, the company offers solutions for a wide
range of frequency bands supporting a variety of business cases. Through its
OPEN™ WiMAX strategy, superior IP and OFDMA know-how, and ability to deploy
end-to-end turnkey WiMAX projects, Alvarion is shaping the new wireless
broadband experience (www.alvarion.com).
