Published on 7 January, 2009
|There was continued growth in second quater as well as the achievement of several strategic milestones|
Alvarion Ltd., the world's leading provider of WiMAX
™ and wireless broadband solutions, today announced financial results for the second quarter ended June 30, 2008.
♦ Record revenues of $69.7 million, up 21% from Q2 2007 Non-GAAP EPS of $0.03; GAAP loss per share of ($0.01)
♦ Cash reserves increased to $149 million
♦ WiMAX revenues of $38 million, up 36% from Q2 2007
♦ Cumulative WiMAX shipments of over $340 million
In the second quarter of 2008, revenues increased to $69.7 million, a 21% increase from $57.6 million in the second quarter of 2007, and a 4% increase from $67.2 million in the first quarter of 2008. BreezeMAX® revenues in Q2 2008 were over $38 million, or about 55% of total revenues.
GAAP net loss in the second quarter of 2008 was ($812,000), or ($0.01) per share, compared to GAAP net income of $136,000, or $0.00 per share, in Q2 of 2007, which included income from discontinued operations of $618,000, and GAAP net loss of $(601,000), or $(0.01) per share, in Q1 2008.
Excluding amortization of acquired intangibles, stock based compensation expenses and discontinued operations, the company reported non-GAAP net profit of $1.7 million, or $0.03 per diluted share, compared with non-GAAP net profit of $2.0 million, or $0.03 per diluted share, in Q2 2007, and in the first quarter of 2008. The sequential decline in net income was primarily the result of unfavorable currency exchange rates.
During Q2 2008, the company generated positive cash flow of approximately $0.9 million. Cash reserves as of June 30, 2008 totaled approximately $149 million, up from about $148 million in the previous quarter.
For supplemental information to facilitate evaluation of the impact of non-cash charges, results of discontinued operations and comparisons with historical results, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q2 and the first six months of 2008 and the comparative periods.
Comments from management
During Q2 2008, the company generated positive cash flow of approximately $0.9 million. Cash reserves as of June 30, 2008 totaled approximately $149 million, up from about $148 million in the previous quarter
"We are proud of our continued growth in Q2 as well as the achievement of several strategic milestones," said Tzvika Friedman, president and CEO of Alvarion. "In addition to reporting record revenues and WiMAX shipments, we continued to compete successfully against the major telecom equipment manufacturers and won a large WiMAX project in Latin America. We concluded an important strategic agreement with Nortel Networks, which brings numerous advantages such as R&D support and funding, wider market reach, and extensive planning and rollout capabilities for large deployments. We were one of only four base station vendors to achieve Mobile WiMAX™ Wave 2 certification from the WiMAX Forum®, and during Q2 our customer DigitalBridge Communications, launched the first Mobile WiMAX Internet service in the United States over our WiMAX solution."
"On a constant dollar basis, we have also achieved our profitability targets for Q2; however, the significant change in the dollar versus the shekel masks the excellent progress we have made in improving our operating leverage. The dollar has declined approximately 6% from the end of Q1 until the end of Q2, and has declined over 12% since the end of 2007 and we continue to focus on mitigating the unfavorable currency impact to the maximum extent possible.
"Meanwhile, current customers are expanding their networks, bookings are strong, and the pipeline of potential new business is large and growing. This further increases our confidence in our ability to achieve the upper end of our target revenue range of $275 to $300 million for 2008."
Q3 2008 guidance
The company's revenue guidance for Q3 2008 is $73 to $77 million. Based on this revenue range, non-GAAP per share results are expected to range between $0.02 and $0.06, based on approximately 65.0 million of estimated weighted average diluted shares outstanding. GAAP results are expected to range between a loss of ($0.02) and earnings per share of $0.02.