Alvarion Losses Deepen on Inventory Write-Offs
Published on: 14th Nov 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Israel based Alvarion has reported that its third quarter revenues fell by 42% to USD27.1 million while the net loss deepened to USD20.6 million from USD7.5 million a year ago.
The decline in profits was due to inventory write-off of approximately $20.8 million, offset by income from the sale of a patent portfolio and a claim right for approximately $9.4 million.
"During the third quarter we continued with the execution of the turnaround plan we initiated in mid-2012. We made important progress in recent weeks with the sale of certain assets which brought over $20 million into the company without diluting our shareholders," said Hezi Lapid, President and Chief Executive Officer of Alvarion. "At the same time, we are continuing our in depth review of our product roadmap and strategy which will help us focus on the right growth markets for Alvarion. Overall, I believe that we are making progress in order to reach sustainable growth and profitability".
Cash used in operations in the third quarter of 2012 was $6.4 million. As of September 30, 2012, cash, cash equivalents and investments, including restricted cash, totaled $15.2 million, after a $10 million principal loan repayment.
Total debt as of September 30, 2012, was $12 million.