Alvarion Reports Fourth Quarter and Full Year 2012 Results
(ENP Newswire Via Acquire Media NewsEdge) ENP Newswire - 05 March 2013
Release date- 04032013 - Tel Aviv - Alvarion Ltd. (NASDAQ:ALVR) a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, today announced its financial results for the fourth quarter and year ended December 31, 2012.
All results in this release reflect continuing operations unless otherwise noted.
Fourth Quarter Highlights
Revenues of $8.2 million, a 25.4% sequential decrease
GAAP net loss from continuing operations of ($0.08) per share; non-GAAP net loss of ($0.07) per share
Revenues of $50.0 million, a 30.9% decrease compared to 2011
GAAP net loss from continuing operations of ($0.37) per share; non-GAAP net loss of ($0.23) per share
Debt reduced from $30 million to $11 million over the 12 month period ending December 31, 2012
'The announcement regarding the definitive agreement to sell our carrier licensed business marks a new strategic direction at Alvarion, one that we believe will deliver shareholder value in the long run. Once the sale is complete, Alvarion will transform into a 'pure play' in the wireless broadband market in the unlicensed frequencies, where we target two market segments: private and public networks in vertical markets and the carrier Wi-Fi market,' said Hezi Lapid, President and Chief Executive Officer of Alvarion. 'We believe that these two markets hold significant growth potential for us and that we have the right product offering to successfully compete'.
Lapid added, '2012 was a challenging year for Alvarion. Nonetheless, the agreement to sell our carrier licensed business marks a significant step forward in executing our new strategic plan for the company. Together with other actions taken over the past several months, we believe that we have made significant progress and expect to complete our turnaround successfully.'
Fourth Quarter 2012 Results
Fourth quarter and full year 2012 results and all comparative periods reflect results of operation of the Company's continuing vertical and carrier unlicensed solutions business and classify the licensed carrier business as discontinued operations.
In the fourth quarter of 2012, revenues were $8.2 million, a decrease of 25.4% from $10.9 million in the third quarter of 2012, and a decrease of 59.1% from $19.9 million in the fourth quarter of 2011.
GAAP net loss in the fourth quarter of 2012 was ($5.2) million, or ($0.08) per share. This compares to GAAP net loss of ($8.8) million, or ($0.14) per share, in the third quarter of 2012. GAAP results in the third quarter included inventory write-off of approximately $4.2 million, amortization of intangible assets, acquisition related expenses and stock-based compensation. GAAP net loss in the fourth quarter of 2011 was ($6.3) million, or ($0.10) per share, and included acquisition related expenses, other charges, amortization of intangible assets and stock-based compensation.
On a non-GAAP basis, excluding loss from discontinued operations, stock-based compensation and other charges, the Company reported a net loss of ($4.3) million, or ($0.07) per share, compared with a non-GAAP net loss of ($3.7) million, or ($0.06) per share, in the third quarter of 2012, and non-GAAP net income of $0.8 million, or $0.01 per share, in the fourth quarter of 2011.
In addition, the Company reported a net loss per share from discontinued operations of ($0.19) for the fourth and third quarters of 2012, compared to a net loss per share of ($0.10) for the fourth quarter of 2011. Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP for the fourth quarter and full year of 2012 and the comparative periods.
Cash used in continuing operations in the fourth quarter of 2012 was $5.3 million. As of December 31, 2012, cash, cash equivalents and investments, including restricted cash, totaled $14.4 million, after a $1.0 million principal loan repayment. Total debt as of December 31, 2012, was $11 million.
Alvarion management will host a conference call today, March 4, 2013, at 9:00 a.m. EST to discuss fourth quarter and full year 2012 results and other matters.
Please call the following dial in number to participate:
USA: +1 800-230-1059; International: +1 612-234-9959
The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion's Investor Relations website at www.alvarion.com/investors/webcasts.
An archive of the online broadcast will be available on the website.
A replay of the call will be available from 11:00 a.m. EST on March 4, 2013 through 11:59 a.m. EST on March 11, 2013.
To access the replay, please call:
USA: +1 800-475-6701; International: +1 320-365-3844
To access the replay, users will need to enter the following code: 284083
Alvarion Ltd. (NASDAQ:ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (www.alvarion.com)
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 various 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: our failure to fully implement our 2012 turnaround plan, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated; our inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of our strategic initiatives to enable us to more effectively capitalize on market opportunities as anticipated; delays in the receipt of orders from customers and in the delivery by us of such orders; our failure to fully and effectively integrate the business and technology of Wavion Inc., acquired by us in November 2011, into our products and realize the expected synergies from the acquisition; the failure of the markets for our (including Wavion's) products to grow as anticipated; our 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; our inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers; our inability to comply with covenants included in our financing agreements; our inability to raise sufficient funds to continue our operations, either through equity issuances or asset sales; and other risks detailed from time to time in the Company's annual reports on Form 20-F as well as in other filings with the U.S. 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 U.S. Securities and Exchange Commission, which this press release will be a part of.
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Alvarion, its logo and certain names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd. in certain jurisdictions. All other names are or may be the trademarks of their respective owners.
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