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Alvarion(R) Reports First Quarter 2013 Results

Alvarion(R) Reports First Quarter 2013 Results

TEL AVIV, Israel, May 20, 2013 (GLOBE NEWSWIRE) -- 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 quarter ended
March 31, 2013. All results in this release reflect continuing operations
(reflecting the sale of the licensed carrier business, which was consummated
on May 10, 2013) unless otherwise noted. Earnings per share are adjusted (for
all periods presented) in accordance with the 1:10 reverse split effected on
April 2, 2013.

First Quarter Highlights

  *Revenues of $8.5 million, a 4.5% sequential increase
  *GAAP net loss from continuing operations of ($0.62) per share; non-GAAP
    net loss from continuing operations of ($0.51) per share

Management Comments

"Following the sale of our licensed carrier business, Alvarion is focusing on
providing wireless solutions to high growth markets, including solutions for
vertical markets, mobile offload and Wi-Fi access," said Assaf Katan, Acting
Chief Executive Officer of Alvarion.

"We are seeing solid demand for our product offering from customers, which we
expect to support our growth in the second half of 2013. At the same time, we
are actively considering alternatives to raise additional equity capital for
the company to improve our financial position. The additional financing will
also allow us to shorten and improve our delivery cycle which is adversely
affecting our results in the first half of the year."

First Quarter 2013 Results

First quarter 2013 results and all comparative periods reflect results of
operations of the Company's continuing vertical and carrier unlicensed
solutions business. The company's licensed carrier business is classified as
discontinued operations.

In the first quarter of 2013, revenues were $8.5 million, an increase of 4.5%
from $8.2million in the fourth quarter of 2012, and a decrease of 45.4% from
$15.6 million in the first quarter of 2012.

GAAP net loss from continuing operations in the first quarter of 2013 was
($3.9) million, or ($0.62) per share. This compares to GAAP net loss from
continuing operations of ($5.2) million, or ($0.82) per share, in the fourth
quarter of 2012. GAAP results in the first quarter of 2013 include
amortization of intangible assets, stock-based compensation and acquisition
related expenses.GAAP net loss from continuing operations in the first
quarter of 2012 was ($3.9)million, or ($0.62) per share, and included
amortization of intangible assets, stock-based compensation and acquisition
related expenses.

On a non-GAAP basis, excluding loss from discontinued operations, amortization
of intangible assets, stock-based compensation and acquisition related
expenses, the Company reported a net loss of ($3.2) million, or ($0.51) per
share, compared with a non-GAAP net loss of ($4.3) million, or ($0.69) per
share, in the fourth quarter of 2012, and non-GAAP net loss of ($2.7) million,
or ($0.43) per share, in the first quarter of 2012. 

In addition, the Company reported a net loss per share from discontinued
operations of ($0.49) for the first quarter of 2013, compared to a net loss
per share of ($1.99) and ($0.48) for the fourth quarter of 2012 and first
quarter of 2012, respectively.

Please refer to the accompanying financial table for reconciliation of GAAP
financial information to non-GAAP for the first quarter of 2013 and the
comparative periods.

Cash used in continuing operations in the first quarter of 2013 was $3.2
million.As of March 31, 2013, cash, cash equivalents and investments,
including restricted cash, totaled $5.8 million, after a $4.3million
principal loan repayment.Total debt as of March 31, 2013, was $6.7million.

Conference Call

Alvarion management will host a conference call today, May 20, 2013, at 9:00
a.m. EDT to discuss first quarter 2013 results and other matters.

Please call the following dial in number to participate:

USA: +1 800-230-1074; International: +1 612-288-0340

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. EDT on May 20, 2013
through 11:59 a.m. EDT on May 27, 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: 291979

ALVARION LTD. & ITS SUBSIDIARIES                                           
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                            
U.S. dollars in thousands (except per share data)                          
                                                          
                           Three     Three     Three
                          Months     Months     Months
                           Ended      Ended      Ended        Year Ended
                           March 31,  March 31,  December 31, December 31,
                          2013       2012       2012         2012
                                                          
Sales                      $8,518   $15,595  $8,150     $49,949
                                                          
Cost of sales              5,248     8,821     5,036       29,494
Inventory write-off        -         -         -           4,217
                                                          
Gross profit              3,270     6,774     3,114       16,238
                                                          
Operating expenses:                                        
Research and development,  2,702     3,441     2,001       12,664
net
Selling and marketing      2,827     4,258     2,126       13,177
General and administrative 1,223     1,483     3,071       7,182
Amortization of intangible 559       559       559         2,235
assets
Acquisition related        66        288       241         1,102
expenses (*)
                                                          
Total Operating expenses   7,377     10,029    7,998       36,360
                                                          
Operating loss             (4,107)   (3,255)   (4,884)     (20,122)
                                                          
Financial income           159       (596)     (271)       (2,895)
(expenses), net
                                                          
Net loss from continuing   (3,948)   (3,851)   (5,155)     (23,017)
operations
                                                          
Loss form discontinued     (3,066)   (3,015)   (12,569)    (32,892)
operations, net
                                                          
Net loss                   $(7,014) $(6,866) $(17,724)  $(55,909)
                                                          
Basic net loss per share:                                  
Continuing operations      $(0.62)  $(0.62)  $(0.82)    $(3.68)
Discontinued operations    (0.49)     (0.48)     (1.99)       (5.25)
                          (1.11)     (1.10)     (2.81)       (8.93)
Weighted average number of
shares used in computing   6,317      6,239      6,305        6,260
basic net loss per share
                                                          
Diluted net loss per                                       
share:
Continuing operations      $(0.62)  $(0.62)  $(0.82)    $(3.68)
Discontinued operations    (0.49)     (0.48)     (1.99)       (5.25)
                          (1.11)     (1.10)     (2.81)       (8.93)
                                                          
Weighted average number of
shares used in computing   6,317      6,239      6,305        6,260
diluted net loss per
share
                                                          
(*) Charges related to the acquisition of Wavion in November 2011.          


ALVARION LTD. & ITS SUBSIDIARIES
RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME
U.S. dollars in thousands (except per share data)
                                                            
                             Three                               Three
                            Months Ended                        Months Ended
                             March 31,                           December 31,
                             2013                                2012
                            GAAP      Adjustments    Non-GAAP  Non-GAAP
                                                            
Sales                        $8,518  $-           $8,518  $8,150
                                                            
Cost of sales                5,248     (8)         (a) 5,240     5,036
                                                            
Gross profit                3,270     (8)            3,278     3,114
                                                            
Operating expenses:                                          
Research and development,    2,702     (30)        (a) 2,672     2,001
net
Selling and marketing        2,827     (27)        (a) 2,800     2,126
General and administrative   1,223     (62)        (a) 1,161     3,065
Amortization of intangible   559       (559)       (b) -        -
assets
Acquisition related expenses 66        (66)        (c) -        -
                                                            
                                                            
TotalOperating expenses     7,377     (744)          6,633     7,192
                                                            
Operating loss               (4,107)   752            (3,355)   (4,078)
                                                            
Financial income (expenses), 159       -             159       (271)
net
                                                            
Net loss from continuing     (3,948)   752            (3,196)   (4,349)
operations
                                                            
Loss from discontinued       (3,066)   3,066          -        -
operations, net
                                                            
Net loss                    (7,014)   3,818          (3,196)   (4,349)
                                                            
Basic net loss per share:                                    
Continuing operations        (0.62)                  (0.51)    (0.69)
Discontinued operations      (0.49)                  0.00      0.00
                            $(1.11)               $(0.51) $(0.69)
                                                            
Weighted average number of
shares used in computing     6,317                   6,317     6,305
basic net loss per share
                                                            
Diluted net loss per share:                                  
Continuing operations        (0.62)                  (0.51)    (0.69)
Discontinued operations      (0.49)                  0.00      0.00
                            $(1.11)               $(0.51) $(0.69)
                                                            
Weighted average number of
shares used in computing     6,317                   6,317     6,305
diluted net loss per share
                                                            
(a)The effect of                                            
stock-based compensation.
                                                            
(b) The effect of amortization of                             
purchased intangibles.
                                                            
(c) Charges related to the acquisition of Wavion               
in November 2011.


ALVARION LTD. & ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
                                                          
                                                          
                                                 March 31, December 31,
                                                  2013      2012
ASSETS                                                    
Cash, cash equivalents and short term investments $3,548  $10,736
Restricted Cash                                   2,297    3,679
Trade receivables                                 10,082   10,256
Other accounts receivable                         8,381    6,300
Inventories                                       8,763    9,282
Current assets of discontinued operations         23,883   21,371
                                                          
PROPERTY AND EQUIPMENT, NET                      3,155    3,438
                                                          
GOODWILL AND INTANGIBLE ASSETS, NET               30,540   31,097
                                                          
TOTAL ASSETS                                      $90,649 $96,159
                                                          
LIABILITIES AND SHAREHOLDERS'EQUITY                       
                                                          
CURRENT LIABILITIES                                        
                                                          
Current maturities on revolving credit line       $6,669  $10,999
Trade payables                                   10,950   8,449
Other accounts payable and accrued expenses       17,068   18,508
Liabilitiesof discontinued operations            19,883   15,271
                                                          
Total current liabilities                         54,570   53,227
                                                          
                                                          
Long term employees liabilities                   239      252
Other long term liabilities                       7,038    7,149
                                                          
Total long term liabilities                       7,277    7,401
                                                          
TOTAL LIABILITIES                                61,847   60,628
                                                          
SHAREHOLDERS'EQUITY                              28,802   35,531
                                                          
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY        $90,649 $96,159


ALVARION LTD. & ITS SUBSIDIARIES
DISCLOSURE OF NON-US GAAP NET INCOME
                                                      
FOR COMPARATIVE PURPOSES NET INCOME AND EARNINGS PER SHARE FROM
CONTINUING OPERATIONS
EXCLUDING AMORTIZATION OF ACQUIRED INTANGIBLES, STOCK BASED
COMPENSATION EXPENSES,
RESTRUCTURING EXPENSES AND OTHER CHARGES
                                                      
U.S. dollars in thousands (except per share data)
                                                      
                       Three      Three      Three
                      Months     Months     Months
                       Ended     Ended     Ended        Year Ended 
                       March 31,  March 31,  December 31, December 31,
                      2013       2012       2012         2012
                                                      
Net loss from          $(3,948) $(3,851) $(5,155)   $(23,017)
continuing operations
                                                      
Amortization           559        559        559          2,235
ofintangible assets
                                                      
Stock based
compensation expenses  127        325        6            938
related to ASC 718
                                                      
Acquisition related    66         288        241          1,102
expenses (*)
                                                      
Inventory write-off    -          -          -            4,217
Net loss excluding
amortization of
acquired intangibles,
stock based            $(3,196) $(2,679) $(4,349)   $(14,525)
compensation and other
expenses from
continuing operations
                                                      
Basic net loss per
share excluding
amortization of
acquired intangibles,  $(0.51)  $(0.43)  $(0.69)    $(2.32)
stock based
compensation and
restructuring
expenses
                                                      
Weighted average
number of shares used  6,317      6,239      6,305        6,260
in computing basic net
loss per share
                                                      
Diluted net loss per
share excluding
amortization of
acquired intangibles,  $(0.51)  $(0.43)  $(0.69)    $(2.32)
stock based
compensation and other
expenses
                                                      
Weighted average
number of shares used  6,317      6,239      6,305        6,260
in computing diluted
net loss per share
                                                      
(*) Charges related to the acquisition of Wavion in November 2011.        


ALVARION LTD. & ITS SUBSIDIARIES
Consolidated Statement of Cash Flows
U.S. dollars in thousands
                                                               
                                                                Three
                                                               Months ended
                                                                March 31, 2013
                                                               
Cash flows from operating activities:                           
Net loss                                                        $(7,014)
Loss from discontinued operations                               (3,066)
Loss from continuing operations                                 (3,948)
Adjustments to reconcile net loss to net cash provided by       
operating activities:
Depreciation                                                    340
Amortization of intangibles assets                              559
Stock based compensation expenses ASC 718                       127
Decrease in trade receivables                                   174
Increase in other accounts receivable and prepaid expenses      (1,926)
Decrease in inventories                                         519
Increase in trade payables                                      2,501
Decrease in other accounts payables and accrued expenses        (1,440)
Decrease in long term employees liabilities                     (13)
Decrease in long term liabilities                               (111)
Net cash used in continuing operating activities                (3,218)
Net cash used in discontinued operating activities              (966)
Net cash used in operating activities                           (4,184)
                                                               
                                                               
Cash flows from investing activities:                           
Purchase of fixed assets                                        (57)
Proceeds from restricted cash                                   1,382
Net cash provided by continuing investing activities            1,325
Net cash used in discontinued investing activities              -
Net cash provided by investing activities                       1,325
                                                               
                                                               
Cash flows from financing activities:                           
Proceeds from exercise of employees' stock options              1
Repayment of long term loan                                     (4,330)
Net cash used in continuingfinancing activities                (4,329)
Net cash used in discontinued financing activities              -
Net cash used in financing activities                           (4,329)
                                                               
Decrease in cash, cash equivalents and short term investments   (7,188)
                                                               
Cash, cash equivalents and short term investments at the        10,736
beginning of the period
Cash, cash equivalents and short term investments at the end of $3,548
the period

About Alvarion

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; the fact that we will need to
obtain additional sources of funding in order to continue our operations at
their current anticipated levels and that there are no assurances that such
funding will be available on favorable terms or at all, 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.

The information in this press release is provided solely for information
purposes, and is not a commitment, promise or legal obligation to deliver any
products, features and/or functionalities, and should not be relied upon in
making purchasing decisions.The development, release and timing of any
products, features and/or functionalities described remains at the sole
discretion of Alvarion.If and when any products, features and/or
functionalities are offered for sale by Alvarion, they will be sold under
agreed upon terms and conditions.This information may not be incorporated
into any contractual agreement with Alvarion or its subsidiaries or
affiliates. Alvarion makes no representations or warranties with respect to
the contents of this press release, and specifically disclaims any express or
implied warranties of merchantability or fitness for any particular purpose.

To receive Alvarion's press releases please contact Sivan Farfuri,
sivan.farfuri@alvarion.com or +972.3.767.4333. Please see the Investor section
of the Alvarion website for more information:
http://www.alvarion.com/investors.

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.

CONTACT: Investor & Media Contacts:

         Avi Stern, CFO
         +972.3.767.4333
         avi.stern@alvarion.com 

         Elana Holzman, VP IR
         +972.3.645.7892
         elana.holzman@alvarion.com

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