(Source: Associated Press/AP Online)
NEW YORK - Shares of Alvarion Ltd. jumped Tuesday after the Israeli provider of wireless broadband technology and services said it was chosen to deploy a nationwide mobile wireless data network in Italy.
The order is from Aria SPA, an Italian wireless Internet service provider. Financial details were not disclosed. However, Lawrence M. Harris, an analyst with CL King & Associates, said in a note to investors the value of the deal is more than $20 million over the next two to three years.
"The Aria announcement does not change our near-term forecast for Alvarion, but adds to our confidence in the company's outlook," wrote the analyst, who rates Alvarion "accumulate" with a target price of $5.
Harris said he expects a profit of 2 cents per share for 2009. He said the Aria deal represents "the second major contract reported by Alvarion in the past week."
On June 17, the company said it signed a deal worth more than $100 million over five years with U.S. rural broadband wireless operator Open Range Communications Inc.
Alvarion's U.S.-traded shares rose 38 cents, or 9.6 percent, to $4.33 in afternoon trading. The stock has changed hands between $2.36 and $8.15 in the past 52 weeks.
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