Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) swung to a loss on sharply lower revenue for the third quarter of 2012. The company also announced a $2 million contract with Internet Technologies Group Ltd. (ITG) for its networks in Angola, Namibia, and Zambia.
Revenue fell 42% to $27.1 million for the third quarter from $47 million for the corresponding quarter of 2011. GAAP-based net loss almost tripled to $20.6 million ($0.33 per share) for the third quarter from $7.5 million for the corresponding quarter, and non-GAAP net loss was $7.7 million ($0.12 per share), compared with a net profit of $325,000.
Cash used in operations during the third quarter was $6.4 million. Cash, cash equivalents and investments, including restricted cash, totaled $15.2 million at the end of September, after repayment of a $10 million on the principal of a loan, and debt totaled $12 million.
Alvarion president and CEO Hezi Lapid said, "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." He added that the company was continuing its product and strategy revenue to focus on the right growth markets, and predicts that the company was making progress to reach sustainable growth and profitability.
Alvarion also announced that it will supply wireless broadband connectivity solutions to three ITG subsidiaries: ITA (Internet Technologies Angola), ITN (Internet Technologies Namibia), ITZ (Internet Technologies Zambia).
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2012
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