Alvarion Revenues Down - CEO to Resign

Israeli WiMAX vendor, Alvarion has reported that its second quarter of 2009 revenues were US$58.7 million, a decrease of 16% from $69.7 million in the second quarter of 2008. The net loss in the quarter was US$4 million, including net charges of US$1.7 million mainly in connection with the organizational changes implemented in April 2009, compared to net loss of US$812,000 in Q2 2008.

The company also announced that Tzvika Friedman, President and CEO is to step down from the company, but will remain in place until a replacement is found.

WiMAX shipments down 11% from Q2 2008 to $39.2 million, while WiMAX revenues up 18% from Q2 2008 to $44.9 million. The company noted that several large deal wins not yet reflected in results

"We are encouraged by the improvement in order intake during the second quarter as well as by several major strategic customer wins which we expect to translate into hundreds of millions of dollars in future revenues," said Tzvika Friedman, President and CEO of Alvarion. "We continued to reduce operating expenses and carefully manage our working capital in Q2, positioning the company for profit margin expansion when revenue growth resumes. We expect gradual improvement in profitability during the second half of 2009, accelerating next year.

The company's revenue guidance for Q3 2009 is between $53 to $63 million.

Posted to the site on 29th July 2009