Alvarion Reports Record Results for the First Quarter 2004.Business Editors/High-Tech Writers TEL TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom - AVIV Aviv (Hebrew:אביב) has a few meanings in Hebrew:
Revenues increased 13% sequentially to a record of $44.7 million, improvement in all financial measurements Alvarion Alvarion ltd. (NASDAQ:ALVR) is a global broadband wireless systems manufacturer formed by the merger of two Israeli companies, BreezeCOM and Floware. Alvarion has its global HQ in Tel-Aviv, Israel and has offices in 23 countries. Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALVR), the global leader in wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 solutions, today announced financial results for the first quarter ended March 31, 2004. Revenues for the first quarter of 2004 rose to a record $44.7 million, an increase of 13% compared to $39.5 million in the fourth quarter of 2003, and up 100% from $22.4 million in the first quarter of 2003. Gross margin increased for the 10th consecutive quarter, reaching 43% compared to 42% in the fourth quarter of 2003 and 39 % in the first quarter of 2003. Net profit increased to $1.4 million, or $0.02 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis for the first quarter of 2004. Net profit for the fourth quarter of 2003 was $81,000, or $0.00 per share on a fully diluted basis and net loss for the first quarter of 2003 was $(4.0) million, or $(0.08) per share. Results for all periods include expenses attributable to the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and deferred stock compensation, which totaled $680,000 in the first quarter of 2004, $797,000 in the fourth quarter of 2003, and $740,000 in the first quarter of 2003. Excluding all aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. amortizations, the Company's non-GAAP net income for the first quarter of 2004 was $2.1 million, or $0.03 per diluted share. For the fourth quarter of 2003 non-GAAP net income was $878,000, or $0.01 per diluted share, and for the first quarter of 2003 non-GAAP net loss was $(3.2) million, or $(0.06) per share. Comments of Management "Q1 was another quarter of growth with strong execution by our team, which enabled us to more than double our profit on a non-GAAP basis from the previous quarter," noted Zvi Slonimsky Slonimsky is a Russian, Belarusian, Polish and Jewish surname meaning a person from Belarusian town of Slonim. Slonimsky may stand for the following people:
n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American project for which the company received $40M orders as announced last year. The receipt of an $18 million follow-on order for this project further attests to our performance. "We achieved some additional financial milestones in Q1," continued Mr. Slonimsky. "Record revenues and continued emphasis on improved efficiency enabled us to improve gross margin for the 10th consecutive quarter. We also reported an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and generated positive cash flow this quarter. "We are happy to see the broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased growth in demand in different areas and for different applications around the world. Revenues in the U.S. are growing, and we are pleased by recent wins in Brazil and Bolivia. Other recent deals in Kenya and Namibia represent signs that Africa is a growing opportunity as well. Our selection by Reliance signals the beginning of what we expect to be strong growth in India, and we are encouraged to see that the license allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as process for the next phase of deployments in China was completed recently. China is the largest single opportunity for wireless, especially for access applications and we hope to see commercial deployments of our products by the end of this year. "We recently introduced our BreezeACCESSTM VL system to the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. market in the 5.4 GHZ (GigaHertZ) One billion cycles per second. High-speed computers have internal clocks rated in GHz, and radio frequency applications transmit in this range. See MHz for an explanation of how GHz and MHz affect computer performance. See RF and space/time. unlicensed bands See ISM band. . Like a similar solution that is doing well in the U.S. because of its no line of sight capabilities, this solution employs OFDM (Orthogonal Frequency Division Multiplexing) A digital transmission technique that uses a large number of carriers spaced apart at slightly different frequencies. , which is also a basic technology in the WiMAX standard. "As we continue working closely with Intel on a WiMAX solution, we see growing support for the WiMAX standard among major operators and large vendors. Just as our recent success in the developing world adds to our confidence in near-term demand, these positive signs of support for the WiMAX standard bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz our confidence in the longer-term growth potential of our industry. We believe our leading market share, broad product line, extensive global presence, strong financial condition and proven ability to execute, position us very well to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this potential," concluded Mr. Slonimsky. Q2 2004 Guidance The Company expects Q2 2004 revenues to range between $47 million and $49 million. At this revenues range, net earnings per share is expected to range between 3 and 4 cents, while non-GAAP net earnings per share, which excludes amortization of intangible assets and deferred stock-based compensation, is expected to range between 4 and 5 cents. Alvarion's management will host a conference call today, May 5, 2004, at 9:00 a.m. Eastern Time to discuss the quarter's results. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: USA: 612-332-0802, International +1-612-332-0802. The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion's website at www.alvarion.com. An archive of the on-line broadcast will be available on the website. A replay of the call will be available from 4 p.m. Eastern Time on May 5, 2004 through 11:59 p.m. Eastern Time on May 12, 2004. To access the replay, please call USA: (320) 365-3844, International: +1-320-365-3844. To access the replay, users will need to enter the following code: 728002 About Alvarion With over 1.5 million units deployed in 130 countries, Alvarion is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network operators. Featuring the industry's most extensive portfolio and covering the full range of frequency bands, the company's products enable the delivery of business and residential broadband access See broadband and wireless broadband. , corporate VPNs, mobile base station feeding, Hotspot coverage extension, community interconnection in·ter·con·nect v. in·ter·con·nect·ed, in·ter·con·nect·ing, in·ter·con·nects v.intr. To be connected with each other: The two buildings interconnect. v.tr. , and public safety communications. Alvarion works with several leading OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and providers and through over 200 local partners to support its diverse customer base in solving their last mile connection challenges wherever located. As an industry pioneer, Alvarion has been driving and delivering wireless broadband innovations for 10 years from core technology developments to creating and promoting industry standards. Most recently offering OFDM-based systems and taking leading roles in the IEEE (Institute of Electrical and Electronics Engineers, New York, www.ieee.org) A membership organization that includes engineers, scientists and students in electronics and allied fields. and HiperMAN standards, the company's prominent work in the WiMAX ForumTM is focused on leading the wireless broadband market to widespread adoption of standards-based products. This press release contains forward -looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the current expectations or beliefs of Alvarion's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward -looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in filings with the Securities and Exchange Commission. Information set forth in this press release pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to third parties has not been independently verified ver·i·fy tr.v. ver·i·fied, ver·i·fy·ing, ver·i·fies 1. To prove the truth of by presentation of evidence or testimony; substantiate. 2. by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web-sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission which this press release will be a part of. Use of Non-GAAP Financial Information To supplement its consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge presented on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, Alvarion uses non-GAAP measures of operating results, net income/loss and income/loss per share, which are adjusted to exclude certain costs, expenses, gains and losses that it believes are appropriate to enhance the overall understanding of its financial performance. These adjustments to Alvarion's GAAP results are made with the intent of providing both management and investors a supplemental understanding of its underlying operational results and trends. Adjusted non-GAAP results are among the primary indicators management uses as a basis for planning and forecasting Alvarion's business. The presentation of this additional information is not meant to be considered in isolation or as a substitute for Alvarion's financial results prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . You may request Alvarion's future press releases or a complete Investor Kit by contacting Carmen Carmen throws over lover for another. [Fr. Lit.: Carmen; Fr. Opera: Bizet, Carmen, Westerman, 189–190] See : Faithlessness Carmen the cards repeatedly spell her death. [Fr. Deville, Investor Relations Investor relations The process by which the corporation communicates with its investors. : carmen.deville@alvarion.com or 760-517-3188. (Tables to Follow)
ALVARION LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
March December
31, 31,
2004 2003
-------- --------
ASSETS
Cash, cash equivalents, short-term and long-term
investments $160,915 $153,616
Trade receivables 22,985 21,199
Other accounts receivable 5,441 4,499
Inventories 38,484 36,981
Severance pay fund 5,696 5,493
Long-term receivables 873 834
PROPERTY AND EQUIPMENT, NET 11,712 11,939
GOODWILL AND OTHER INTANGIBLE ASSETS 49,727 50,396
-------- --------
TOTAL ASSETS $295,833 $284,957
----- ========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Trade payables $ 24,666 $ 23,780
Other accounts payable and accrued expenses 32,378 27,959
-------- --------
Total current liabilities 57,044 51,739
-----
LONG TERM LIABILITIES 3,457 5,248
ACCRUED SEVERANCE PAY 8,003 7,768
-------- --------
TOTAL LIABILITIES 68,504 64,755
-----
SHAREHOLDERS' EQUITY 227,329 220,202
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $295,833 $284,957
----- ======== ========
ALVARION LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share
data)
Three Three Three
Months Months Months
Ended Ended Ended
March March December
31, 31, 31,
------- ------- --------
2004 2003 2003
------- ------- --------
Sales $44,679 $22,413 $ 39,496
Cost of sales 25,654 13,583 22,750
------- ------- --------
Gross profit 19,025 8,830 16,746
------- ------- --------
Operating expenses:
Research and development, net 6,614 5,089 6,089
Selling and marketing 8,987 6,685 8,912
General and administrative 2,240 1,355 1,740
Amortization of intangibles & deferred stock
compensation 680 740 797
------- ------- --------
Total Operating expenses 18,521 13,869 17,538
------- ------- --------
Operating income (loss) 504 (5,039) (792)
Financial income, net 932 1,071 873
------- ------- --------
Net Income (loss ) $ 1,436 $(3,968)$ 81
------- ------- --------
Basic earnings (loss) per share $ 0.03 $ (0.08)$ 0.00
======= ======= ========
Weighted average number of shares used in
computing basic earnings (loss) per share 55,190 51,529 53,219
======= ======= ========
Diluted earnings (loss) per share $ 0.02 $ (0.08)$ 0.00
======= ======= ========
Weighted average number of shares used in
computing diluted earnings (loss) per share 62,804 51,529 62,252
======= ======= ========
ALVARION LTD.
DISCLOSURE OF NON-US GAAP NET INCOME (LOSS)
U.S. dollars in thousands (except per share data)
Three Three Three
Months Months Months
Ended Ended Ended
March March December
31, 31, 31,
------- ------- --------
2004 2003 2003
------- ------- --------
Net Income (loss) according to US GAAP $ 1,436 $(3,968)$ 81
Amortization of intangibles & deferred stock
compensation 680 740 797
------- ------- --------
Net Income (loss), excluding amortization of
intangibles and deferred stock compensation $ 2,116 $(3,228)$ 878
======= ======= ========
Basic net earnings (loss) per share,
excluding amortization of intangibles and
deferred stock compensation $ 0.04 $ (0.06)$ 0.02
======= ======= ========
Weighted average number of shares used in
computing basic net earnings (loss)
per share 55,190 51,529 53,219
======= ======= ========
Diluted net earnings (loss) per share,
excluding amortization of intangibles and
deferred stock compensation $ 0.03 $ (0.06)$ 0.01
======= ======= ========
Weighted average number of shares used in
computing diluted net earnings (loss) per
share 62,804 51,529 62,252
======= ======= ========
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