Alvarion reports $55.4 million revenue in Q2 2011

Alvarion, a provider of 4G networks in the Broadband Wireless Access (BWA) market, reported revenues of $55.4 million in the second quarter of 2011, an increase of 19.1percent from $46.5 million in the first quarter of 2011, and an increase of 13.1 percent from $49 million in the second quarter of 2010.

GAAP net income in the second quarter of 2011 was $0.3 million, or $0.01 per share. This compares to a net loss of ($14.5) million, or ($0.23) per share in Q1 2011, including restructuring and other charges of approximately $7.1 million related mainly to employee termination expenses and vacating office space. GAAP net loss in the second quarter of 2010 was ($10.6) million, or ($0.17) per share.

Excluding stock based compensation, restructuring and related charges, as well as impairment charges, on a non-GAAP basis, the company reported net income of $1.5 million, or $0.02 per share, compared with non-GAAP net loss of ($6.5) million, or ($0.10) per share in the first quarter of 2011, and non-GAAP net loss of ($6.6) million, or ($0.11) per share in the second quarter of 2010.

Cash provided by operations in the second quarter of 2011 was $1.4 million. As of June 30, 2011, cash, cash equivalents and investments totaled $69.7 million.

We are pleased to report that we have met our target of returning to profitability in Q2. More importantly, we believe we
have achieved a stable core business that will serve as a foundation upon which we can build through new growth-oriented initiatives,” said Eran Gorev, president and CEO,
Alvarion

In order-of-magnitude terms, Alvarion’s current core business is capable of sustaining a revenue run rate of about $200 million per year with the prospect of moderate margin improvement. We remain committed to the carrier market where it continue to see profitable WiMAX infrastructure opportunities using the selective approach we adopted earlier this year.

Margin improvement is expected to come from a gradual shift in business mix toward enterprise and vertical market applications. Near term, a particular quarter may be affected by temporary seasonal factors or the impact of recognizing revenue from shipments during earlier periods but, overall, we have created a right-sized, sustainably profitable operation.

By Telecomlead.com Team
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