Alvarion® Updates Guidance for the Third Quarter of 2012
TEL AVIV, Israel--(BUSINESS WIRE)-- Alvarion®Ltd. (NAS: ALVR) , a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, today announced that it expects revenues for the third quarter of 2012 to be approximately $27 million, below the guidance previously provided of revenues between $31 million and $39 million. The shortfall in revenues was the result of significant shipments postponed from the current quarter to the fourth quarter of 2012, primarily from two Carrier Licensed customers, one based in Latin America and another in Central Eastern Europe; and a significant order delayed from the current quarter to the fourth quarter of 2012 from a Carrier Wi-Fi customer based in Africa. In addition, the company will record a one-time charge of $2.5 million following the shutdown of U.S.-based Main Street Broadband.
Based on these lower estimated revenues and the accounts receivables write-off, non-GAAP net loss per diluted share for the third quarter of 2012 is expected to be approximately ($0.13), compared to the company's previous expectation that non-GAAP per share results would range between a loss of ($0.06) and a profit of $0.02. GAAP net loss per share is expected to be approximately ($0.15), compared to the company's previous guidance of a per share loss between ($0.08) and breakeven, before any one-time charges.
"Despite this unexpected setback in achieving our financial targets for the third quarter, we believe that the company's turnaround plan remains on track and that we will reach at least breakeven operating cash flow and modest profitability by yearend," said Hezi Lapid, President and CEO of Alvarion. "Notwithstanding the delay in shipments, our Carrier Licensed business is performing well, and we are particularly pleased with the market acceptance of the newest addition to our licensed offering - the BreezeCOMPACT. In just five months since the product was launched, we received orders valued at over $10 million. We are also seeing traction for our Carrier Wi-Fi solution with recent deals from additional Tier 1 carriers in Asia Pacific."
Mr. Lapid added, "Today, we are also announcing the sale of a portion of Alvarion's patent portfolio for approximately $19 million. This transaction will support our cash needs and allow us to make the investments necessary to execute our turnaround plan and put Alvarion on a path to sustainable growth and profitability."
The company expects to be in compliance with its debt covenants based on these revised results.
Specific guidance for the fourth quarter and any revisions that may be required to the financial targets for the full year of 2012 will be provided when the company announces final results for the third quarter of 2012 on November 14, 2012.
Alvarion Ltd. (NAS: ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (www.alvarion.com)
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion's management and are subject to various factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: our failure to fully implement our 2012 turnaround plan, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated; our inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of our strategic initiatives to enable us to more effectively capitalize on market opportunities as anticipated; delays in the receipt of orders from customers and in the delivery by us of such orders; our failure to fully and effectively integrate the business and technology of Wavion Inc., acquired by us in November 2011, into our products and realize the expected synergies from the acquisition; the failure of the markets for our (including Wavion's) products to grow as anticipated; our inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; our inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers; our inability to comply with covenants included in our financing agreements; our inability to raise sufficient funds to continue our operations, either through equity issuances or asset sales; and other risks detailed from time to time in the Company's annual reports on Form 20-F as well as in other filings with the U.S. Securities and Exchange Commission.
Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the U.S. Securities and Exchange Commission, which this press release will be a part of.
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Alvarion®, its logo and certain names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd. in certain jurisdictions.All other names are or may be the trademarks of their respective owners.
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