Market sources believe that Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) is considering the sale of its WiMax division. This is one of the three divisions of the 4G wireless broadband solutions company, and such a step would involve dozens of layoffs.
Yesterday, Alvarion reported its financial results for the first quarter of 2012. The company met the analysts' expectations although revenue for the quarter of $33 million was down 19% from the preceding quarter and down 28% from the corresponding quarter. The bottom line was that non-GAAP loss for the quarter was $6.9 million ($0.11 per share), half the loss of the corresponding quarter of 2011. When taking out one-time expenses, the loss was $5.4 million ($0.09 per share).
Alvarion's new CEO Hezi Lapid said, "We are examining a range of options for activities in our area. Every option that we are examining will provide continuity in the supply of products and services to our customers. We have the full support of the board of directors to work to improve and to increase shareholders' value."
Avarion denied plans to fire any employees.
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2012
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