Wireless broadband solutions provider Alvarion (Nasdaq:ALVR; TASE:ALVR) today announced financial results for the second quarter ended June 30, 2004.
Net profit was $2.5 million or $0.04 per share on a fully diluted basis for the second quarter of 2004, compared with a net loss for the second quarter of 2003 of $5.9 million. Net profit for the first quarter of 2004 was $1.4 million, or $0.02 per share on a fully diluted basis.
Revenues for the second quarter of 2004 rose to a record $48.8 million, an increase of 9% compared to $44.7 million in the first quarter of 2004, and up 57% from $31.0 million in the second quarter of 2003.
Gross margin increased for the 11th consecutive quarter, reaching 43.2% compared to 42.6% in the first quarter of 2004 and 40.1% in the second quarter of 2003.
The second quarter of 2003 also included $2.2 million of acquisition-related expenses in connection with the purchase of certain assets and liabilities of InnoWave ECI Wireless Systems Ltd.
Excluding all aforementioned amortizations and acquisition related expenses, the company's non-GAAP net profit for the second quarter of 2004 was $3.2 million, or $0.05 per diluted share.
The company expects third quarter 2004 revenues to range between $51 million and $53 million. At this revenue range, net earnings per share are expected to range between $0.05-0.06 while non-GAAP net earnings per share, which excludes amortization of intangible assets and deferred stock-based compensation, is expected to range between $0.06 and $0.07.
Alvarion CEO Zvi Slonimsky said, "In addition to benefiting from growth in demand, we continued to expand our customer base and introduce new products. British Telecom completed its trials of wireless broadband access in four cities around the United Kingdom and placed an initial order for commercial deployment. Their initial order was for our BreezeAccess VL solution.
"Last quarter, we introduced the BreezeAccess VL in 5.4 Ghz band, and, recently we introduced BreezeAccess VL for the 5.2GHz frequency to address the growing demand for broadband we see in Russia as well as in a number of countries in Asia Pacific. The BreezeAccess VL is based on OFDM technology which provides non-line of sight capabilities, a key WiMAX technology.
"A major new product milestone in Q2 was the introduction of our BreezeMAX platform, a WiMAX-ready platform... The first product based on our WiMAX platform was the BreezeMAX 3500, for the 3.5GHz frequency band. We announced recently that Siemens, our long-term partner, has selected Alvarion to supply the BreezeMAX 3500 as part of the expansion of our OEM agreement. "Last week we announced the agreement for the acquisition of interWAVE Communications International Ltd., a leading supplier of compact cellular network infrastructure based on GSM and CDMA2000 technology that is particularly well-suited for rural areas in developing regions. It is our belief that the interWAVE acquisition provides extremely valuable core mobile technology and expertise in designing and deploying mobile networks, which will help us accelerate our portable and mobile WiMAX offering."
The third quarter guidance excludes any impact on operations and any transaction-related charges from the acquisition of interWAVE Communications International, which is expected to be closed at or around the end of the third quarter.
Published by Globes [online] - www.globes.co.il - on Wednesday, August 04, 2004