Alvarion Sells Portion of Patent Portfolio - Issues Revenues Warning
Published on: 1st Oct 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Israel based Alvarion has sold part of its patent portfolio to USA based patent lawsuit firm WiLAN for up to $19 million. WiLAN said that it believes the portfolio has broad applicability to 4G infrastructure and handsets.
Alvarion received $8.5 million at closing, with the balance due after meeting certain conditions, primarily the receipt of an approval from the Office of the Chief Scientist in Israel. In addition, Alvarion was granted a royalty-bearing license for the patent portfolio sold to Wi-LAN.
"This is an important milestone in Alvarion's turnaround plan. By capitalizing on a portion of our IP portfolio, we are bringing cash into the company without undermining our future growth," said Hezi Lapid, President and CEO of Alvarion.
At the same time, Alvarion warned that revenues for the third quarter of 2012 to be approximately $27 million, below the guidance previously provided of revenues between $31 million and $39 million.
The shortfall in revenues was the result of significant shipments postponed from the current quarter to the fourth quarter of 2012, primarily from two Carrier Licensed customers, one based in Latin America and another in Central Eastern Europe; and a significant order delayed from the current quarter to the fourth quarter of 2012 from a Carrier Wi-Fi customer based in Africa.
The company will announce its financial results on 14th November.