Alvarion Reports Record Revenues for Fourth Quarter and Full Year 2007.TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel -- Alvarion 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 leading provider of WiMAX[TM] and 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 fourth quarter and year ended December 31, 2007. Q4 Highlights: * Record revenues of $66.3 million, up 32% from Q4 2006. * Record WiMAX revenues of $36.3 million; WiMAX shipments of $37.2 million. * Non-GAAP EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $0.05; GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). EPS of $0.06. 2007 Highlights: * Record revenues of $236.6 million, up 30% from 2006. * WiMAX revenues increased 74% to $124 million. * WiMAX shipments increased 84% to $138 million. * Non-GAAP EPS of $0.14 compared to $0.07 in 2006. * GAAP EPS of $0.06 compared to a loss per share of ($0.67) in 2006. In the fourth quarter of 2007, revenues reached a new record of $66.3 million, an increase of 9% from $60.6 million in the third quarter of 2007, and 32% from $50.3 million in the fourth quarter of 2006. GAAP net income in the fourth quarter of 2007 was $4.1 million, or $0.06 per share, which included income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $3.6 million. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $ 532,000 or $0.01 per share, compared to a loss from continuing operations of ($129,000), or ($0.00) per share in Q3. Loss from continuing operations in the fourth quarter of 2006 was ($282,000), or ($0.00) per share. Excluding the results of the discontinued operations, amortization of acquired intangibles and stock based compensation expenses, on a non-GAAP basis, the company reported a net profit of approximately $3.1 million, or $0.05 per 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. share, compared with a non-GAAP net profit of approximately $2.4 million, or $0.04 per diluted share in the third quarter of 2007, and a non-GAAP net profit of approximately $2.1 million, or $0.03 per diluted share in Q4 2006. The company generated positive cash flow from continuing operating activities of approximately $3.1 million during Q4 2007. Total cash flow in Q4 also included $4.4 million, representing the final payment from a customer of the former cellular mobile unit and $7.3 million in proceeds from the acquisition of LGC LGC Logistics (Contracting) LGC Local Government Commission LGC La Gloria Cubana (cigar) LGC Laboratory of the Government Chemist (UK) Wireless Inc. by ADC (1) See A/D converter. (2) (Apple Display Connector) A peripheral connector from Apple that combines digital video display, USB and power in one cable. Telecommunication Inc. in a cash transaction during Q4. Alvarion's LGC holding resulted from the conversion of a note which was part of the payment received in connection with the sale of the former cellular mobile unit to LGC in 2006. Cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. as of December 31, 2007 totaled approximately $139 million, an increase of about $20 million during 2007. For the full year 2007, revenues totaled $236.6 million, an increase of 30% over $181.6 million in 2006. WiMAX revenues totaled approximately $124 million, about 52% of total revenue in 2007, compared with approximately $72 million, representing about 40% of total revenue, in 2006. For 2007, net income was $4.3 million, or $0.07 per share. Net loss from continuing operations was $(1.1) million or ($0.02) per share, compared with a net loss from continuing operations of $(4.6) million, ($0.08) per share in 2006. Excluding discontinued operations, amortization of acquired intangibles and stock based compensation expenses; non-GAAP net income for 2007 was $8.8 million, or $0.14 per diluted share, compared with non-GAAP net income of $4.5 million, or $0.07 per diluted share in 2006. For supplemental information to facilitate evaluation of the impact of non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and comparisons with historical results of continuing and discontinued operations, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q4 2007, the full year 2007 and the comparative periods. Comments from Management "Our team continued to execute extremely well during the fourth quarter," said Tzvika Friedman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Alvarion. "Revenues exceeded our guidance for the fourth quarter and enabled us to reach the upper end of our target range for revenue growth in 2007. WiMAX revenues increased about 74% in 2007, significantly above our target of at least 50% growth. Our strategy of engaging with operators for both primary and Personal Broadband early on and growing with our satisfied customers is clearly paying off. We are the market leader in WiMAX with cumulative shipments of about $260 million. "2008 promises to be another year of expansion and adoption of WiMAX, and we continue to target revenue of $275 million to $300 million for 2008. Our guidance for Q1 puts us on pace to achieve this revenue target." Q1 2008 Guidance The company's revenue guidance for Q1 2008 is $63 to $67 million. The company is exposed to fluctuations in the U.S. dollar exchange rate. In addition, the company's financial income is adversely affected by the decrease in interest rates. Therefore, based on the indicated revenue range, Q1 non-GAAP per share results are expected to range between $0.00 and $0.03. GAAP loss per share is expected to range between ($0.04) and ($0.01). Alvarion's management will host a conference call today, February 6, at 9:00 a.m. Eastern time to discuss the quarter. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: USA: (800)-954-1051; International: +1-(415)-226-5355. 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 online broadcast will be available on the website. A replay of the call will be available from 11:00 a.m. ET on February 6th, 2008 through 11:59 a.m. ET on March 7th, 2008. [TABLE OMITTED] About Alvarion With more than 3 million units deployed in over 150 countries, Alvarion (www.alvarion.com) is the world's leading provider of innovative wireless broadband network solutions enabling Personal Broadband to improve lifestyles and productivity with portable and mobile data, VoIP, video and other services. Alvarion is leading the market to Open WiMAX solutions with the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion's products enable the delivery of personal mobile broadband Description Mobile Broadband is a type of wireless internet access that differs from Wi-Fi. Mobile Broadband is the name used to describe the 3G services which are made possible by HSDPA and HSUPA, the latest technologies on the W-CDMA evolutionary path. , business and residential broadband access See broadband and wireless broadband. , corporate VPNs, toll quality telephony, 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. , public safety communications, and mobile voice and data. As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for over 10 years from core technology developments to creating and promoting industry standards. Leveraging its key 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 committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum is focused on increasing the widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to Open WiMAX solutions. This press release contains 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. 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: the failure of the market for WIMAX products to develop as anticipated; Alvarion's inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; 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 the Company's 20-F Annual Report Risk Factors section as well as in other 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 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. In addition to reporting financial results in accordance 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 , or GAAP, Alvarion uses non-GAAP measures of net income, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R, amortizations of intangibles and results of discontinued operations. Alvarion's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Alvarion's on-going operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors. You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman, kika.stayerman@alvarion.com or +972.3.767.4159. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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