WiMAX systems developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) posted a fourth quarter net loss three times the analysts' estimate.
The company declined to provide guidance for the first quarter of 2011, saying "the timing of revenue from various projects and the magnitude of the restructuring charges cannot be predicted with accuracy."
Alvarion reported that shipments rose 23% from the third quarter to $48.5 million in the fourth quarter. Nevertheless, revenue fell 16.6% to $50.3 million for the fourth quarter from $60.2 million for the corresponding quarter of 2009. The company fell short of the analysts' consensus of $55.5 million revenue.
GAAP-based net loss rose to $69.5 million ($1.12 per share) for the fourth quarter from $1.3 million for the corresponding quarter. Non-GAAP net loss was $11.2 million ($0.18 per share) for the fourth quarter, more than double the net loss for the preceding quarter of $5.4 million, and compared with a non-GAAP net profit of $724,000 for the corresponding quarter. The analysts' loss per share consensus estimate was $0.05.
For the year as a whole, Alvarion' revenue fell to $205.2 million from $245.2 million in 2009. The company posted a non-GAAP net loss of $69.5 million ($1.12 per share), compared with a non-GAAP net profit of $58.3 million in 2009.
Alvarion president and CEO Eran Gorev said, "We continue to see attractive, profitable business in the 4G RAN market, albeit on a smaller scale than we previously expected - with more modest growth potential. We intend to continue to address this market with a smaller, more focused organization with refinements in our strategy that will lead to profitability.
Gorev added, "The first quarter will be a period of transition, during which we will right-size the organization to a level appropriate to the carrier opportunity, and make modest strategic investments in the enterprise market to improve our position and accelerate growth. We will begin with an immediate headcount reduction as well as other related expense reductions."
The share price nevertheless rose 8.9% on Nasdaq yesterday to $2.21, and rose a further 0.9% in after-hours trading, giving a market cap of $137 million. The share price rose 4.2% at the opening on the TASE to NIS 7.92.
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2011
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