Alvarion’s losses widen to $7.19M on sales slump
Alvarion’s modest fourth-quarter improvement was not enough to offset a rough year for the WiMAX infrastructure provider, which reported widening losses for the full-year 2009.
The company lost $7.19 million in 2009 compared with losses of $5.46 million the previous year. Restructuring charges, stock-based compensation and the amortization of the company’s intangible assets compounded a dip in sales, which fell to $245.2 million in 2009 compared with $281.3 million in 2008.
“Looking ahead, we expect gradual improvement during the second half of 2010 as the tight credit environment starts to ease and some of the business catalysts materialize,” said Alvarion President and CEO Eran Gorev.
Alvarion’s WiMAX shipments fell 20 percent to $152 million during 2009, despite a 5 percent increase in revenue.
Alvarion blamed delays in what it called “important business catalysts,” such as the awarding of U.S. broadband stimulus funds and the auction of WiMAX spectrum in India, on a 14 percent drop in fourth-quarter sales, which hit $60.2 million from $70.1 million in the fourth quarter of 2008. The global economic crisis also contributed to the slump.
Despite the sales slip, the company managed to narrow its fourth-quarter losses to $1.3 million from $4.8 million in the same period of 2008. The company expects losses to widen next quarter on a slight decrease in sales, which are expected to be between $50 million and $60 million.