Comverse plunges after disappointing results
In the 20-F filing with the SEC, Alvarion states its workforce totaled 608 employees at the end of February 2011, 38% fewer than at the end of 2008.
2010 was a difficult year for 4G access solutions developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR), with a 16.3% drop in revenue to $205.2 million and a GAAP-based net loss of $98.5 million, mainly due to write-offs on goodwill, according to its audited consolidated financial report for 2010 on Form 20-F filed with the US Securities and Exchange Commission (SEC) on Thursday.
In addition to the disappointing results, Alvarion made several rounds of layoffs last year. The company states in the report that its workforce totaled 608 employees at the end of February 2011, after the last round of layoffs, 38% fewer than at the end of 2008. The company did not disclose the geographical breakdown of its workforce, but 60% of its workforce at the end of 2010 (before 107 employees were fired in the most recent wave of layoffs) was in Israel. The company expects to return to profitability in the second quarter.
Alvarion said that it believes that its cash reserves will be sufficient for at least the next 12 months, and that its cost-cutting and layoffs will cut expenditures by 30% in 2011.
Alvarion's remaining employees received nearly 1.6 million options and 1.1 million vested shares in 2010. The options have a strike price of $0.94 per share, compared with an average share price of $2.77 in 2010. 1.2 million options were granted to 22 managers and directors. The options are exercisable in 2016-2020
Alvarion's salary cost of its managers and directors totaled $3.6 million in 2010. The company paid its auditor $415,000 in 2010, 3.5% more than in 2009. The company rents 21,500 square meters of space in Israel at a cost $4.2 million a year.
Alvarion had $69.2 million in cash and equivalents at the end of March 2011, compared with its current market cap of $80 million.
Alvarion's share price fell 0.8% on Friday to $1.29 on Nasdaq and fell 2% by mid-afternoon on the TASE today to NIS 4.32.
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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