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Download Q2 10 Financials
Company begins implementing first phase of new strategic plan
Tel Aviv, July 28, 2010 — Alvarion Ltd. (NASDAQ:ALVR), the world's leading provider of 4G networks in the Broadband Wireless Access (BWA) market today announced financial results for the second quarter of 2010.
Q2 Highlights:
- Shipments of $57.7 million, a 20.6% sequential increase
- Revenues of $49.0 million, a 5.6% sequential decline
- GAAP net loss of ($0.17) per share; non-GAAP net loss of ($0.11) per share.
"We are pleased with the increase in shipments, as existing customers continue to expand their networks and prepare to serve more subscribers. In addition, two new customers each accounted for over $1 million in shipments and revenues in Q2," said Eran Gorev, President and CEO of Alvarion.
In the second quarter of 2010, total revenues were $49.0 million, a decrease of 5.6% from $51.9 million in the first quarter of 2010, and a decrease of 16.5% from $58.7 million in the second quarter of 2009.
The decline in gross margin to 36.1% reflects continued progress in deploying a number of large programs, including a significantly higher proportion of third-party equipment in the revenue mix compared with the prior period and the same quarter in 2009.
GAAP net loss in the second quarter of 2010 was ($10.6) million, or ($0.17) per share, including restructuring and other charges of approximately $3.6 million related mainly to employee termination expenses and vacating office space. This compares to a net loss of ($4.9) million, or ($0.08) per share in Q1 2010. GAAP net loss in the second quarter of 2009 was ($4.0) million, or ($0.06) per share, including charges of approximately $0.9 million.
Excluding the amortization of intangibles, stock based compensation, restructuring and other charges, net, on a non-GAAP basis, the company reported net loss of ($6.7) million in the second quarter of 2010, or ($0.11) per diluted share, compared with non-GAAP net loss of ($3.7) million, or ($0.06) per diluted share in the first quarter of 2010, and non-GAAP net loss of ($0.6) million, or ($0.01) per diluted share in the second quarter of 2009.
Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP for the second quarter of 2010 and the comparative periods.
Cash used in operations was ($8.3) million. As of June 30, 2010, cash, cash equivalents and investments totaled $91 million.
"We have been pursuing a number of large opportunities in different regions," said Gorev. "Recently, after a long tender process, a major operator in India signed Letters of Intent with three of Alvarion’s local partners to build and operate 4G networks in multiple areas of the country. While these partners are working to finalize their respective agreements with the operator, we are actively engaged with them negotiating equipment supply agreements and finalizing plans. At the same time, we are preparing to support large deployments in India and other countries."
Q3 2010 Guidance
Management continues to expect gradual improvement in shipments in the second half of the year. Meanwhile, the company is not giving detailed guidance for Q3 because the timing of revenue from several large projects cannot be predicted with accuracy.
Alvarion management will host a conference call today, July 28, at 9:00 a.m. Eastern time to discuss the results and other matters.
Please call the following dial in number to participate:
USA: (800) 230-1074; International: +1(612) 234-9960.
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. EDT on July 28th, 2010 through 11:59 a.m. EDT on August 28th, 2010.
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: 163805.
Alvarion has scheduled dates for the earnings announcements during 2010 and this schedule is available on the website at http://www.alvarion.com/index.php/en/investors .
About Alvarion
Alvarion (NASDAQ:ALVR) is a global leader in 4G wireless communications with the industry’s most extensive customer base with hundreds of commercial WiMAX deployments. Alvarion’s industry leading solutions enable true open 4G and vertical applications for service providers and enterprises. Through an OPEN WiMAX strategy, superior IP and OFDMA know-how, and ability to deploy large scale end-to-end turnkey networks, Alvarion is delivering the true 4G broadband experience today (www.alvarion.com)
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: potential impact on our business of the current global recession, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in WiMAX license allocation in certain countries; the failure of the market for WIMAX products to develop as anticipated; potential impact on our business of the current global recession;, Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of the Alvarion’s strategic initiatives to enable Alvarion to more effectively capitalize on market opportunities as anticipated; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission.
Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission, which this press release will be a part of.
You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman,
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or +972.3.767.4159.
Alvarion®, its logo and all names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd. All other names are or may be the trademarks of their respective owners. “WiMAX Forum” is a registered trademark of the WiMAX Forum. “WiMAX,” the WiMAX Forum logo, “WiMAX Forum Certified” and the WiMAX Forum Certified logo are trademarks of the WiMAX Forum.
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