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Press ReleasesFeb 6, 2008 Alvarion Reports Record Revenues for Fourth Quarter and Full Year 2007Tel Aviv, Israel – February 6, 2008 - Alvarion Ltd. (NASDAQ: ALVR), the leading provider of WiMAX™ and wireless broadband solutions, today announced financial results for the fourth quarter and year ended December 31, 2007. Q4 Highlights:
2007 Highlights:
In the fourth quarter of 2007, revenues reached a new record of $66.3 million, an increase of 9% from $60.6 million in the third quarter of 2007, and 32% from $50.3 million in the fourth quarter of 2006. GAAP net income in the fourth quarter of 2007 was $4.1 million, or $0.06 per share, which included income from discontinued operations of $3.6 million. Net income from continuing operations was $ 532,000 or $0.01 per share, compared to a loss from continuing operations of ($129,000), or ($0.00) per share in Q3. Loss from continuing operations in the fourth quarter of 2006 was ($282,000), or ($0.00) per share. Excluding the results of the discontinued operations, amortization of acquired intangibles and stock based compensation expenses, on a non-GAAP basis, the company reported a net profit of approximately $3.1 million, or $0.05 per diluted share, compared with a non-GAAP net profit of approximately $2.4 million, or $0.04 per diluted share in the third quarter of 2007, and a non-GAAP net profit of approximately $2.1 million, or $0.03 per diluted share in Q4 2006. The company generated positive cash flow from continuing operating activities of approximately $3.1 million during Q4 2007. Total cash flow in Q4 also included $4.4 million, representing the final payment from a customer of the former cellular mobile unit and $7.3 million in proceeds from the acquisition of LGC Wireless Inc. by ADC Telecommunication Inc. in a cash transaction during Q4. Alvarion’s LGC holding resulted from the conversion of a note which was part of the payment received in connection with the sale of the former cellular mobile unit to LGC in 2006. Cash reserves as of December 31, 2007 totaled approximately $139 million, an increase of about $20 million during 2007. For the full year 2007, revenues totaled $236.6 million, an increase of 30% over $181.6 million in 2006. WiMAX revenues totaled approximately $124 million, about 52% of total revenue in 2007, compared with approximately $72 million, representing about 40% of total revenue, in 2006. For 2007, net income was $4.3 million, or $0.07 per share. Net loss from continuing operations was $(1.1) million or ($0.02) per share, compared with a net loss from continuing operations of $(4.6) million, ($0.08) per share in 2006. Excluding discontinued operations, amortization of acquired intangibles and stock based compensation expenses; non-GAAP net income for 2007 was $8.8 million, or $0.14 per diluted share, compared with non-GAAP net income of $4.5 million, or $0.07 per diluted share in 2006. For supplemental information to facilitate evaluation of the impact of non-cash charges and comparisons with historical results of continuing and discontinued operations, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q4 2007, the full year 2007 and the comparative periods. Comments from Management “Our team continued to execute extremely well during the fourth quarter,” said Tzvika Friedman, President and CEO of Alvarion. “Revenues exceeded our guidance for the fourth quarter and enabled us to reach the upper end of our target range for revenue growth in 2007. WiMAX revenues increased about 74% in 2007, significantly above our target of at least 50% growth. Our strategy of engaging with operators for both primary and Personal Broadband early on and growing with our satisfied customers is clearly paying off. We are the market leader in WiMAX with cumulative shipments of about $260 million. “2008 promises to be another year of expansion and adoption of WiMAX, and we continue to target revenue of $275 million to $300 million for 2008. Our guidance for Q1 puts us on pace to achieve this revenue target.” Q1 2008 Guidance The company’s revenue guidance for Q1 2008 is $63 to $67 million. The company is exposed to fluctuations in the U.S. dollar exchange rate. In addition, the company’s financial income is adversely affected by the decrease in interest rates. Therefore, based on the indicated revenue range, Q1 non-GAAP per share results are expected to range between $0.00 and $0.03. GAAP loss per share is expected to range between ($0.04) and ($0.01). Alvarion’s management will host a conference call today, February 6, at 9:00 a.m. Eastern time to discuss the quarter. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion’s website at www.alvarion.com. An archive of the online broadcast will be available on the website.
As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for over 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum is focused on increasing the widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to Open WiMAX solutions. 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 a number of 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: the failure of the market for WIMAX products to develop as anticipated; Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; 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; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the 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 Securities and Exchange Commission, which this press release will be a part of. You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman, kika.stayerman@alvarion.com or +972.3.767.4159.
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