Alvarion CEO: We can become enterprise market leader

Eran Gorev: WiMAX is what is driving our margins down.

"In my positive scenario, I want to see Alvarion become the market leader in the enterprise segment, and I believe it can do so. With good performance, and you always need a bit of luck, I believe that within three years it can become the number one player in this market," said Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) president and CEO Eran Gorev at the Oppenheimer investment bank conference in Tel Aviv today.

Gorev continued, "A lot of work has to be done, but the foundation is good. I can't say what the significance will be on revenue, but the margins in the segment are better. WiMAX is what is driving our margins down. On the other hand, vendors are offering us opportunities to develop additional technologies for this market, therefore I don't see us leaving this market space. Under this scenario, we'll also become profitable in the vendors' market. I want to see Alvarion as one of the top three players in the new 'foot' market of supplementary communications network solutions, and to achieve double-digit operating margins.

"In the negative scenario, each of the things I mentioned might not happen. The giants against whom we compete might enter the enterprise market. Maybe margins will fall, maybe we won't succeed in become one of the top three players in the new market, and if we're sixth or seventh there arises the question whether it's worthwhile to operate in it. Obviously, we won't wait three years; we review the results every day, and we'll certainly make adjustments as reality develops."

Gorev added that in the past, "Alvarion didn’t have a culture based on the need to make profits. Without profit, we won't create value for shareholders, and that's what I emphasize. I absolutely think that in the past we took deals that we shouldn’t have taken."

Published by Globes [online], Israel business news - - on May 15, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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