Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) posted a negligible profit on lower revenue for the third quarter of 2011, and predicts to break even at best for the fourth quarter. Revenue fell 13% to $47 million from $54 million for the corresponding quarter of 2011, and was down 15% from the $55.2 million for the preceding quarter.
GAAP-based net loss was $7.5 million ($0.12 per share), compared with a net profit of $319,000 for the preceding quarter, and a net loss of $6.1 million for the corresponding quarter. Most of the loss was due to a $7.1 million charge related to the bankruptcy of US customer, Open Range Communications.
Non-GAAP net profit was $325,000 ($0.01 per share) for the third quarter, compared with a net loss of $5.4 million for the corresponding quarter. The company beat the analysts' consensus of a loss per share of $0.02, but missed on the revenue forecast of $48.4 million.
In its guidance for the fourth quarter, Alvarion expects $43-48m revenue, and a loss per share of $0.00-0.05. The guidance is well below the analysts' consensus of earnings per share of $0.02 on $52.8 million revenue.
Alvarion president and CEO Eran Gorev said that the third quarter results were in line with the company's expectations. He added, "We are continuing to execute on our strategic plan aimed at shifting from a primary focus on WiMAX-based RAN solutions to becoming a multi-technology wireless broadband solution powerhouse."
Alvarion had $68.9 million in cash at the end of September, and today used almost half of it to acquire WiFi applications company Wavion Ltd. The acquisition follows the acquisition of Israeli distributed antenna systems (DAS) developer Clariton Networks for $4 million earlier this year.
Alvarion's share price fell 6.8% on Nasdaq yesterday to $1.09, giving a market cap of $67 million, but rose 5.8% by early afternoon on the TASE today to NIS 4.20.
Published by Globes [online], Israel business news - www.globes-online.com - on November 2, 2011
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