Telecom Lead Middle East: Alvarion, a provider
of optimized wireless broadband solutions, has posted revenues of $33.3 million
for the first quarter of 2012, down 28.4 percent from $46.5 million in the
first quarter of 2011.
The company posted net loss of $6.9 million in the first
quarter of 2012, as compared to a net loss of $12.2 million in the fourth
quarter of 2011. Net loss includes charges of approximately $9.3 million
related to the Wavion acquisition and integration plan.
Net loss in the first quarter of 2011 was $14.5 million
which included restructuring and other charges of approximately $7.1 million
related mainly to employee termination expenses and vacating office space.
The company’s operating expenses stood at $19.6 million
for Q1 FY12, as compared with $29.04 million for the same quarter a year
earlier.
The company’s gross margin recorded at 40.2 percent, an
increase from gross margin of 38.3 percent in Q4 of 2011.
Cash used in operations in the first quarter of 2012 was
$11.2 million. As of March 31, 2012, cash, cash equivalents and investments
totaled $51.6 million.
Our revenues from RAN solutions in licensed frequencies
were slightly lower than expected during the first quarter. We are exploring a
variety of options for the carrier licensed business, emphasizing that we
believe these are significant and valuable assets. Every alternative we are
evaluating will provide continuity of products and services to our customer
base,” said Hezi Lapid, president and chief executive officer of Alvarion.
The company expects revenue growth and improved
profitability in the combined unlicensed business.
Furthermore, the company is aiming for a significant
reduction in cash used in operating activities in Q3, followed by at least
breakeven operating cash flow in Q4.
Alvarion introduces mobile data offloading solution for 3G and
LTE telecom networks
During the quarter, Alvarion launched its Mobile Data
Offloading solution for 3G and LTE networks that enables operators to reap
benefits from increased network capacity and coverage in high traffic areas
where data congestion is overloading current 3G/LTE networks.
