Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) losses narrowed on lower revenue for the fourth quarter of 2011, and it predicts that the revenue decline and losses will persist into the first quarter of 2012.
Alvarion's revenue fell 19% to $41.2 million for the fourth quarter from the $50.8 million for the corresponding quarter of 2010. GAAP-based net loss narrowed to $12.2 million ($0.20 per share) for the fourth quarter from $76.9 million for the corresponding quarter, and non-GAAP net loss narrowed to $2.4 million ($0.04 per share) from $11.2 million for the corresponding quarter.
Alvarion attributed part of the fourth quarter GAAP-based net losses to $9.3 million in costs related to the acquisition of Wavion in November and interest costs for closing the $30 million three-year loan from Silicon Valley Bank, which financed it. The company used $5.8 million in cash for operations during the fourth quarter, and it had $64.4 million in cash, cash equivalents and investments.
In its guidance, Alvarion predicts non-GAAP loss per share of $0.01-0.06 on $38-43 million revenue. It forecasts GAAP-based loss per share of $0.03-0.08.
For the year as a whole, revenue fell 5% to $190.4 million in 2011 from $205.8 million in 2010. GAAP-based net loss narrowed to $33.8 million ($0.54 per share) in 2011 from $98.5 million in 2010, and non-GAAP net loss narrowed to $7.1 million ($0.11 per share) from $27 million.
Alvarion president and CEO Eran Gorev predicts that the acquisition of Wavion would begin boosting Alvarion's non-GAAP net profit by the end of the first quarter of 2012,ahead of schedule. He added, “We are moving forward with our plan to introduce several new products during 2012."
Alvarion's share price rose 2.3% in early trading on the TASE today to NIS 4.61, after rising 2.4% on Nasdaq yesterday to $1.27, giving a market cap of $79 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2012
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