Replies to post #174 on Alvarion Ltd. (ALVRQ)

[midastouch017]

>>Israel Aircraft Industries Ltd. (IAI), Comverse Technology Inc. (Nasdaq: CMVT), RAD Data Communications Ltd., Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), and Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) were among the companies that attended the meeting. Researchers from Tel Aviv University and the Technion - Israel Institute of Technology were also present.<<

(#msg-9595856)

Dubi

[midastouch017]

Alvarion Reports Fourth Quarter and Full Year 2005 Results

Wednesday February 8, 2:00 am ET

Resumed Sequential Growth
BreezeMAX(TM) Leadership Continues

TEL AVIV, Israel--(BUSINESS WIRE)--Feb. 8, 2006--Alvarion Ltd. (NASDAQ:ALVR - News), the world's leading provider of wireless broadband solutions and specialized mobile networks, today announced financial results for the fourth quarter and full year ended December 31, 2005.

Revenue for the fourth quarter reached $46.5 million, up 3% sequentially from $45.0 million in the third quarter of 2005. Revenue in Q4 2005 declined 17% from $55.9 million in the fourth quarter of 2004, primarily reflecting a higher revenue contribution from one large customer during the fourth quarter of 2004.

Gross margin was 45% in Q4 of 2005, consistent with Alvarion's target operating model.

On a GAAP basis, the company reported a net loss of $(4.9) million, or ($0.08) per share. This compares with a net loss of $(5.5) million, or $(0.09) per share in Q3 and a net loss of ($6.8) million, or ($0.12) per share in the fourth quarter of 2004, which included charges of $11.4 million representing a write-off of in-process research and development and acquisition related expenses.

Excluding amortization of acquired intangibles and deferred stock compensation of an aggregate of $1.1 million in the fourth and third quarters of 2005, and $0.8 million in the fourth quarter of 2004 as well as acquisition-related charges of $11.4 million in the fourth quarter of 2004, on a non-GAAP basis, Q4 2005 net loss was $)3.8( million, or ($0.06) per share, compared with a net loss of ($4.4) million, or ($0.07) per share in the third quarter of 2005, and a non-GAAP net profit of $5.4 million, or $0.08 per diluted share in Q4 of 2004. See the attached table showing the reconciliation of GAAP to non-GAAP figures.

Revenue for 2005 was $195.7 million compared with $201.5 million in 2004. Taking into account a very large deployment by Alvarion's largest customer in 2004, revenues from Broadband Wireless Access solutions, including BreezeMAX, Alvarion's flagship WiMAX platform, increased by 20% in 2005 over 2004.

On a GAAP basis, the company reported a net loss of ($13.6) million, or ($0.23) per share in 2005. This compares with a net income of $0.9 million, or $0.01 per share in 2004.

Excluding amortization of acquired intangibles and deferred stock compensation of an aggregate of $4.9 million and $2.8 million in 2005 and 2004, respectively, as well as acquisition-related charges of $0.9 million and $0.4 million in 2005 and 2004, respectively, and $11 million of in-process research and development write-off in 2004, on a non-GAAP basis, 2005 net loss was ($7.8) million, or ($0.13) per share, compared with a net income of $15.1 million, or $0.24 per share in the prior year. See the attached table showing the reconciliation of GAAP to non-GAAP figures.

Comments of Management

"We are pleased that we resumed sequential growth in Q4," said Tzvika Friedman, CEO and President of Alvarion. "Broadband wireless access revenue increased for both WiMAX and non-WiMAX based solutions in Q4.

"We were particularly gratified by the continued strong performance of our BreezeMAX product, which increased to about $10 million in revenue in Q4. Our fundamental business, primarily wireless DSL solutions, is performing well during the transition to WiMAX and should continue to be the main engine for growth in 2006. We have strengthened our position with some of the carriers we refer to as "innovative challengers" because they are early adopters of new technology, and we expect the overall upward trend to continue.

"Other significant developments in Q4 included the successful launch of the largest ever project for our cellular mobile unit, complete networks for the islands of Guadeloupe and Martinique by Outremer Telecom. We believe this will be an important reference account that will help us land more large orders for the cellular mobile unit In addition, a major Latin American customer has placed an initial $7 million order under a new frame agreement that could be worth up to $15 million., covering both BreezeMAX(TM) and eMGW(TM) products for several countries in Latin America.

"The fixed broadband wireless access market - both WiMAX and non-WiMAX - will be an important and growing market for the next several years," continued Mr. Friedman. "We continue to dominate the BWA market where we retain a 30% market share. Our leading position is evidence of our customers' satisfaction with our superior product offering and support.

"We continue to invest in building our company to be a major player in the growing WiMAX market for fixed, nomadic and mobile applications. We are focusing our investment on aggressively expanding our family of WiMAX solutions to include additional frequencies, additional marketing activities with Tier 1 carriers, mobile WiMAX development, affording our customers a smooth migration path to the recently ratified 802.16e standard, and development to enable an array of new services.

"While we continue our focus on retaining our leadership in this market, we will also pursue our commitment to realizing the vision of personal broadband to enhance lifestyles and improve productivity with our mobile WiMAX solutions. Moving true broadband from an entirely facilities-based offering to one that is an 'anytime, anywhere' personal offering will create a host of new opportunities in the telecom ecosystem. We are positioning Alvarion to be the partner of choice for operators, both new and incumbent, technology partners, and systems integrators as the market evolves."

Q1 Guidance

The Company's revenue guidance for Q1 2006 is $46 million to $51 million. At this revenue range, non GAAP per share results are expected to range between a loss of 3 and 6 cents per share. This guidance excludes expenses related to amortization of acquired intangibles and estimated recurring quarterly stock option expenses resulting from the adoption of SFAS 123R. Also excluded from non-GAAP guidance is a one-time positive cumulative effect of a change in accounting principle under SFAS 123R which cannot be quantified at this time. Since it is too early to indicate the impact of this one-time positive cumulative effect, the company will not provide GAAP earnings per share guidance.

Alvarion's management will host a conference call today, February 8, at 9:00 a.m. Eastern Time to discuss the quarter. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: USA: [phone], International: [phone].

The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion's website at www.alvarion.com. An archive of the on-line broadcast will be available on the website. A replay of the call will be available from 12:30 p.m. EDT on February 8, 2006 through 11:59 p.m. EDT on February 14, 2006. To access the replay, please call USA: [phone], International: [phone]. To access the replay, users will need to enter the following code: 813525.

http://biz.yahoo.com/bw/060208/20060207006381.html?.v=1

Dubi

[midastouch017]

“We’ll see growth every quarter”

Alvarion’s Tvika Friedman: Current trials should become sales soon.

Hadass Geyfman 9 Feb 06 16:05

“We’re satisfied that we’ve renewed quarterly growth,” Alvarion (Nasdaq: ALVR; TASE: ALVR) president and CEO Tvika Friedman said when the company’s reports for the fourth quarter and all of 2005 were published. “Sales of the BreezeMAX system in the quarter totaled $10 million. Solutions not based on WiMAX also performed well, despite the ongoing switch to WiMAX. We expect that fixed WiMAX activity will continue to constitute the main growth engine in 2006.”
Alvarion projects $46-51 million in sales in the first quarter of 2006, and a pro forma loss of $0.03-0.06 per share.

"Globes": How are you preparing for intensifying competition in the mobile WiMAX market?

Friedman: ”We now have a demo of a mobile WiMAX system, and we estimate that we’ll have a commercial product by early 2007. We plan to leverage our strong brand name, the products that have proved themselves in practice, and our 30% market share in fixed WiMAX, to make the company a significant player in mobile WiMAX. There’s a difference between a stable working product and waiting for new products that may not work at the same level of service. There’s a difference between playing with a new product and providing actual service.”

How would you sum up the fourth quarter?

”During the quarter, we increased the proportion of our WiMAX sales in our total sales. We succeeded in selling, and also in operating Outremer’s large network in Martinique and Guadeloupe, while meeting the deadline. This network is already working.

”In the fourth quarter, we signed a new $15 million contract with Telmex, including an initial $7 million order. This contract includes both WiMAX and products not based on WiMAX. As for 2005, during the year we sent customers large commercial quantities of end-user products based on Intel’s new chip.

”Looking ahead, we’re continuing to invest in fixed and mobile WiMAX, and are developing systems that work on frequencies that will enable us to operate in additional countries. As of now, we have put out a 3.5-gigahertz system, and we’re now working on 2.3-gigahertz, 2.5-gigahertz, 3.3-gigahertz, and 3.6-gigahertz systems. The 2.3-gigahertz, and 2.5-gigahertz frequencies, for example, are very popular in North America and the Asia-Pacific region.”

What do you expect in 2006?

”We believe that we’ll see growth in every quarter in 2006. The trials that we are now conducting are likely to become sales during the coming year. Furthermore, we’ll launch a new product this year that customers can install themselves. This product opens a very large market to us that we have never before operated in. We believe that it will boost our sales in 2006.”

Published by Globes [online] - www.globes.co.il - on February 9, 2006

http://www.globes.co.il/serveen/globes/DocView.asp?did=1000059900&fid=980

Dubi