Tuesday, May 3, 2011

Bethel Finances: Alvarion predicts Q2 profit, after Q1 loss doubles

www.bethelfinance.com

Bethel Finance news:

WiMAX developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) expects to achieve profitability in the second quarter of 2011, after its non-GAAP net loss nearly doubled to $6.5 million ($0.10 per share) for the first quarter from $3.7 million for the corresponding quarter of 2010.

Alvarion's revenue fell 10.4% to $46.5 million for the first quarter from $51.9 million for the corresponding quarter. GAAP-based net loss almost tripled to $14.5 million ($0.23 per share) from $4.9 million for the corresponding quarter.

Alvarion missed the analysts' consensus of non-GAAP loss per share of $0.08 on $47.1 million revenue.

Cash out flow from operations was $12.6 million for the first quarter, and the company had cash, cash equivalents and investments of $69.2 million at the end of March.

Alvarion's first quarter shipments fell 11% from the preceding quarter to $42.9 million, resulting in an 8.5% fall in revenue from $50.8 million for the fourth quarter. However, the company was able to narrow its non-GAAP net loss from $11.2 million for the fourth quarter.

Alvarion president and CEO Eran Gorev said that the company completed a "difficult but successful restructuring" during the first quarter. He added, "We continue to pursue initiatives in vertical markets such as local government, education, homeland security, utilities, which we view as having attractive on-going and long-term potential."

Gorev added, “Our backlog of orders and pipeline of business opportunities indicate that we are on track to achieve our goal of profitability from the second quarter onward. That said, we also have a significant amount of business to ship before the end of the second quarter and remain vulnerable to potential delays, as we are in any quarter."

Alvarion's share price fell 2.3% on Nasdaq yesterday to $1.69, giving a market cap of $98 million, but rose 2.7% in early trading on the TASE today to NIS 5.92.

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