Advertisement
News
Advertisement

Alvarion posts Q1 loss

Tue, 05/04/2010 - 8:00am
Andrew Berg, Wireless Week

Alvarion, maker of 4G WiMAX and wireless broadband equipment, today announced financial results for the first quarter of 2010, with revenue down 23.5 percent year-over-year, from $67.9 million to $51.9 million.

“Q1 results were within the range of our guidance and, as expected, reflect continued delays in several business catalysts,” said Eran Gorev, president and CEO of Alvarion.

The company said it plans to cut costs by more than $30 million on an annual basis, with the intention of selectively reallocating some resources over the next several quarters. Most of the savings will come from an immediate headcount reduction of about 20 percent, which will be completed during the second quarter, resulting in a restructuring charge during the quarter.

Gorev outlined a two-stage plan that he says should swing the company to profitability. The first stage involves taking the savings from cuts and investing them in the company's near-term goals.

"The second stage of our plan will focus on positioning Alvarion for profitable growth in the increasingly complex multi-technology environment that will evolve over the next couple of years. We intend to complete the process and begin to implement the next phase of our plan during the second half of the year,” Gorev said.

The company indicated that there may be another sequential decline in revenues in the second quarter, and it has decided not to give detailed guidance, primarily because the timing of revenue from several large projects cannot be predicted with accuracy.

Management continues to expect gradual improvement to begin during the second half of the year.

More Broadband Direct 5/04/10:
•  Comcast launches 3G in Boston
•  RCN debuts TiVo Premiere in D.C.
•  Cisco increases CMTS capacity with new D3 line cards
•  Cisco signs on with Zodiac for tru2way partner program
•  Mixed Signals adds EBIF monitoring
•  Harmonic offers compact optical node for cable systems
•  ActiveVideo, SMiT integrate products
•  Cell backhaul could grow to $3B a year for cable
•  Feds to look at Apple policy on programming tools
•  Alvarion posts Q1 loss

 

Advertisement

Share This Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading