Tuesday, December 13, 2011

Alvarion Sets 2012 Financial Targets

Alvarion issued revised guidance for Q4 2011 and set new financial targets for 2012 and beyond as it integrates recently acquired Wavion and implements its multi-technology wireless broadband strategy.

Looking ahead, Alvarion said it will focus on business segments which are expected to be less sensitive to global economic conditions, focus on areas in which it can add significant value to customers, reduce or postpone investment in areas that are most likely to be negatively impacted by macro-economic factors, and use resources as efficiently as possible by rationalizing the organization and consolidating Alvarion and Wavion development projects.

Specifically, Alvarion plans to address mobile operators with capacity and coverage solutions such as WiFi offload and distributed antenna systems (DAS) to enhance 3G/4G network performance, private networks in target vertical markets, BWA (broadband wireless access) service providers in certain rural and emerging markets, and WISPS (wireless internet service providers). Alvarion will provide an optimized multi-technology portfolio of solutions using both licensed and unlicensed spectrums. The portfolio will include a flexible software-defined 4G RAN platform and carrier-grade outdoor WiFi solutions.

Alvarion’s Q4 2011 report, which will include Wavion’s results from November 23, 2011, expects revenues in Q4 to be $42 to $44 million. The non-GAAP loss per share is expected to be ($0.03) to ($0.04).

For 2012, Alvarion is now targeting a non-GAAP operating profit margin of 5% for 2012. After capital expenditures and debt service, the 2012 cash balance at yearend is expected to be about $65 million, similar to the level expected at year-end 2011. The overall non-GAAP gross margin target for 2012 is 45% and the target for operating expenses is below 40% of revenue. Taking into account the macro-economic outlook, management is basing the plan on an assumed revenue level of $185 million to $195 million for 2012, which includes approximately $25 million of revenue from Wavion products. http://www.alvarion.com

  • In November, Alvarion acquired privately-held Wavion, an Israel-based developer of carrier-grade WiFi solutions, for approximately $30 million in cash, including an assumed earn-out. Wavion supplies WBS omni-direction and sector base stations, which operate at 2.4 GHz, 5 GHz and 700 MHz. Wavion leverages two-way spatially adaptive beamforming and Multiple Input Multiple Output ( MIMO) technologies. The company's revenues for the last twelve months were approximately $16 million.