(Source: Business Wire)
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).
Alvarion management will host a conference call today, November 4, at
9:00 a.m. Eastern time to discuss the quarter.
Please call the following dial in number to participate:
USA: (800) 230-1074; International: +1(612) 332-0820.
The public is invited to listen to the live webcast of the conference
call.
For details please visit Alvarion's website at www.alvarion.com.
An archive of the online broadcast will be available on the website.
A replay of the call will be available from 11:00 a.m. EST on
November 4, 2009 through 11:59 p.m. EST on December 4, 2009.
To access the replay, please call:
USA: (800) 475-6701
International: +1(320) 365-3844.
To access the replay, users will need to enter the following code: 117463.
ALVARION LTD. & ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Nine Nine Three Three Three
Months Ended Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30, June 30,
2009 2008 2009 2008 2009
Sales $ 184,998 $ 211,187 $ 58,383 $ 74,279 $ 58,741
Cost of sales 100,252 109,032 30,925 39,098 32,089
Gross profit 84,746 102,155 27,458 35,181 26,652
Operating expenses:
Research and development, net 39,749 45,033 12,330 14,129 12,779
Selling and marketing 39,165 45,612 12,824 16,054 12,970
General and administrative 11,503 14,040 3,757 4,731 3,723
Amortization of intangible assets 99 1,594 33 328 33
Restructuring and other related expenses (*) 919 - - - 919
Total Operating expenses 91,435 106,279 28,944 35,242 30,424
Operating loss (6,689 ) (4,124 ) (1,486 ) (61 ) (3,772 )
Other loss (749 ) - - - (749 )
Financial income, net 1,551 3,514 454 864 518
Net income (loss) (5,887 ) (610 ) (1,032 ) 803 (4,003 )
Basic net earnings (loss) per share: $ (0.09 ) $ (0.01 ) $ (0.02 ) $ 0.01 $ (0.06 )
Weighted average number of shares used in computing basic net earnings (loss) per share 61,999 63,123 62,054 63,170 61,995
Diluted net earnings (loss) per share:
$ (0.09 ) $ (0.01 ) $ (0.02 ) $ 0.01 $ (0.06 )
Weighted average number of shares used in computing diluted net earnings (loss) per share 61,999 63,123 62,054 64,392 61,995
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ALVARION LTD.