WiMAX developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) swung to net profit for the second quarter on higher revenue, which rose 13% to $55.4 million for the second quarter, from $49 million for the corresponding quarter of 2010. The company beat the analysts' consensus of $47 million revenue.
GAAP-based net profit in the second quarter was $319,000 ($0.01 per share) compared with a GAAP-based net loss of $10.6 million ($0.17 per share) in the corresponding quarter.
Non-GAAP net profit was $1.5 million ($0.02 per share) compared with non-GAAP net loss of $6.6 million ($0.11 per share) in the corresponding quarter. The profit was in line with the analysts' consensus of $0.02 per share.
Cash flow from operations in the second quarter of 2011 was $1.4 million. As of June 30, cash, cash equivalents and investments totaled $69.7 million.
“We are pleased to report that we have met our target of returning to profitability in the second quarter,” said Alvarion President and CEO Eran Gorev. "Our current core business is capable of sustaining a revenue run rate of about $200 million per year with the prospect of moderate margin improvement."
Alvarion predicts in its guidance $100 million revenue in the second half of 2011, similar to the amount in the first half of the year. Depending on shipment volume and mix, third quarter results are likely to range between breakeven and a modest loss on a non-GAAP basis. However, management expects a small non-GAAP profit for the second half, as a stronger fourth quarter is expected to offset the timing issues for shipments in the third quarter.
Alvarion's share price rose 2.3% on Nasdaq yesterday to $1.53, giving a market cap of $95 million, and also rose 6.2% in morning trading on the TASE today to NIS 5.53.
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2011
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