Troubled wireless broadband solutions company Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) today replaced president and CEO Eran Gorev with Hezi Lapid. The changeover will come into effect on May 6. Lapid previously served as chairman and CEO of Axerra Networks Ltd., a provider of carrier network equipment. He earlier worked for Innowave, which Alvarion acquired in 2003.
Since Gorev was appointed CEO of Alvarion in February 2010, in order to rehabilitate what was a WiMAX solutions developer, its share price has fallen 83%.
Alvarion said that Gorev "decided to leave the company to pursue other interests, having completed the initial phases of a strategic transformation of the company."
Alvarion chairman Amnon Yacoby said, "Hezi’s industry experience and proven execution capabilities will be focused on creating value as the immediate goal."
Yacoby added, “During Eran’s tenure, Alvarion has been transformed from a single-technology company into a provider of multi-technology solutions to various types of wireless broadband networks. In addition to placing more focus on select vertical markets, while serving our traditional BWA customers, the company is poised to capitalize on new, rapidly-growing markets for carrier-grade Wi-Fi solutions via the acquisition of Wavion."
Alvarion is in financial difficulties. Earlier this month, it announced that it would be in default of a financial covenant under loan and credit facility agreements, including a $30 million loan obtained for the acquisition of Wavion Inc.. The company also published a profit warning and lowered its guidance for the first quarter of 2012 from its previous estimate of $38-43 million revenue to $33-33.5 million.
Alvarion's share price 2.5% by midday on the TASE today to NIS 2.36, after rising 3.9% on Nasdaq yesterday to $0.62, giving a market cap of $38.7 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 19, 2012
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