Johannesburg, 16 Feb 2012
Alvarion Ltd. (NASDAQ:ALVR) a provider of optimised wireless broadband solutions addressing the connectivity, capacity and coverage challenges of public and private networks, today announced its financial results for the fourth quarter and year ended December 31, 2011. Results of Wavion are included from the date of closing, November 23, 2011.
Q4 Highlights:
* Shipments of $41.1 million, a 3.0% sequential increase
* Revenues of $41.2 million, a 12.3% sequential decrease
* GAAP net loss of ($0.20) per share; non-GAAP net loss of ($0.04) per share
2011 Highlights (compared to 2010):
* Shipments of $173.0 million, a decrease of 20.3%
* Revenues of $190.0 million, a decrease of 7.7%
* GAAP net loss of ($0.54) per share; non-GAAP net loss of ($0.11) per share
Fourth Quarter 2011 Results
In the fourth quarter of 2011, revenues were $41.2 million, a decrease of 12.3% from $47.0 million in the third quarter of 2011, and a decrease of 18.9% from $50.8 million in the fourth quarter of 2010.
GAAP net loss in the fourth quarter of 2011 was ($12.2) million, or ($0.20) per share, including charges of approximately $9.3 million related to the Wavion acquisition and integration plan. This compares to a net loss of ($7.5) million, or ($0.12) per share in the third quarter of 2011, which includes charges of approximately $7.1 million related to the bankruptcy filing of Open Range Communications. GAAP net loss in the fourth quarter of 2010 was ($76.9) million, or ($1.24) per share, including a non-cash impairment charge for goodwill of approximately $57.1 million and other charges of approximately $7.4 million.
On a non-GAAP basis, excluding stock-based compensation and other charges, the company reported a net loss of ($2.4) million, or ($0.04) per share, compared with non-GAAP net income of $0.3 million, or $0.01 per share, in the third quarter of 2011, and non-GAAP net loss of ($11.2) million, or ($0.18) per share, in the fourth quarter of 2010.
The fourth quarter 2011 net loss included interest expense from the date of closing related to the $30 million three-year loan with Silicon Valley Bank used to finance the Wavion acquisition.
Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP for the fourth quarter of 2011 and the comparative periods.
Cash used in operations in the fourth quarter of 2011 was $5.8 million. As of December 31, 2011, cash, cash equivalents and investments totaled $64.4 million.
Management Comments
“We are pleased with our progress since the Wavion acquisition closed in November,” said Eran Gorev, President and CEO of Alvarion. “The integration is going smoothly and we think the acquisition could become accretive, on a non-GAAP basis, by the end of the first quarter of 2012, ahead of our timeline.
“We are moving forward with our plan to introduce several new products during 2012. These advanced solutions are eagerly awaited by customers, and will position us to take a greater share of the available market.
“Confidence in our multi-technology strategy continues to build. We are now able to offer the technology best suited to a particular need in both licensed and unlicensed frequencies, while most competitors lack this portfolio breadth. We are also identifying opportunities that can be best served with a combination of wireless technologies. In addition to enhancing our competitiveness in existing markets with new products, our global reach and advanced carrier-grade Wi-Fi solution also positions us to capture a significant share of the nascent but rapidly growing market for cellular offload.”
Guidance
Management believes revenues in the first quarter of 2012 will be in the range of $38 million to $43 million. Depending on shipment volume and mix, Q1 non-GAAP earnings per share are expected to range between a loss of ($0.01) and a loss of ($0.06). GAAP per share results are expected to range between a loss of ($0.03) and ($0.08), including charges of approximately $1.5 million related to the Wavion acquisition and stock-based compensation.
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