Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) believes that the sale of its carrier licensed business to Telrad Networks Ltd. will turn the company around in 2013, after it reported heavy losses on falling revenue for the fourth quarter and full-year of 2012.
Fourth quarter revenue fell 59% to $8.2 million from $19.9 million for the corresponding quarter of 2011. GAAP-based net loss narrowed to $5.2 million ($0.08 per share) for the fourth quarter from $6.3 million for the corresponding quarter, but non-GAAP net loss widened to $4.3 million ($0.07 per share) from $820,000. Alvarion also posted a net loss per share from discontinued operations of $0.19 for the fourth quarter, up from $0.10 for the corresponding quarter.
Full-year revenue fell 31% to $50 million from $72.3 million in 2011. GAAP-based net loss from continuing operations rose to $23 million in 2012 from $15.7 million in 2011, and net loss from discontinued operations rose to $32.1 million from $18.4 million. Total GAAP-based net loss widened to $55.1 million ($0.88 per share) from $33.8 million. Non-GAAP net loss was $14.5 million ($0.23 per share) in 2012 compared with a net profit of $1.4 million in 2011.
Alvarion president and CEO Hezi Lapid said that the sale of the company's carrier licensed business marked a new strategic direction. "Once the sale is complete, Alvarion will transform into a pure play in the wireless broadband market in the unlicensed frequencies, where we target two market segments: private and public networks in vertical markets and the carrier Wi-Fi market. We believe that these two markets hold significant growth potential for us and that we have the right product offering to successfully compete."
Lapid added, "2012 was a challenging year for Alvarion. Nonetheless, the agreement to sell our carrier licensed business marks a significant step forward in executing our new strategic plan for the company. Together with other actions taken over the past several months, we believe that we have made significant progress and expect to complete our turnaround successfully."
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2013
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