Alvarion Reports Second Quarter And First-Half 2002 Results.Business & Technology Editors 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:
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), a leading provider of Broadband Wireless See wireless broadband. Access (BWA (Broadband Wireless Access) High-speed wireless access. Typically refers to wireless last mile access to the Internet. See WiMAX and broadband. ) solutions, today announced its financial results for the second quarter and the first six months ended June June: see month. 30, 2002. Note: The Company's statement of operations See Income statement. is based on U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . The Company was formed on August 1, 2001 through the merger of BreezeCOM Ltd. and Floware Ltd. As such, the Company's results for the second quarter and the first six months of 2001 include the results of BreezeCOM Ltd. only. Revenues for the second quarter of 2002 were $22.3 million, compared with $22.7 million for the first quarter of 2002 and $22.4 million for the second quarter of 2001. Net loss for the second quarter of 2002 was $(5.0) million, or $(0.09) 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 $(5.5) million, or $(0.10) per diluted share, for the first quarter of 2002, and $(21.0) million, or $(0.72) per diluted share, in the second quarter of 2001. 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 June 30, 2002 were $175.2 million, compared with $179.2 million as of March 31, 2002. If amortization of current technology and deferred stock compensation in the total amount of $747,000 were excluded from the Company's second quarter 2002 results, the net loss for the quarter would have been $(4.3) million, or $(0.08) per diluted share. This compares with a net loss, excluding amortization of current technology and deferred stock compensation of $752,000, of $(4.8) million, or $(0.09) per diluted share, in the first quarter of 2002. Commenting on the second quarter, 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:
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , resulting in a decreased loss per share and a stable cash burn for the second quarter. We attribute (1) In relational database management, a field within a record. (2) In object technology, a single element of data. See instance attribute and static attribute. the strength of our sales to the markets we have targeted, the depth and quality of our product portfolio, and the diversity of our growing customer base. "We continue to see opportunities in both our target market segments: established cellular carriers in developing regions, and wireless service providers in rural areas. In Central and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , interest from cellular operators has been especially strong as evidenced both by sales during the quarter and deals in the pipeline. In the U.S., the telecom slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. is creating opportunities for rural service providers, who provide needed services in areas that are underserved by the major telcos. We are encouraged to see a lot of new activities in many regions. During the quarter, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30 new customers installed our products for the first time, and a number of new orders from other new customers are in the pipeline." "During the quarter, we also recorded sales and substantial interest from customers in a new segment, namely, Emergency Services emergency services Emergency care '…services …necessary to prevent death or serious impairment of health and, because of the danger to life or health, require the use of the most accessible hospital available and equipped to furnish those services' . Driven by the new emphasis 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. on Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States , state and local law enforcement agencies A law enforcement agency (LEA) is a term used to describe any agency which enforces the law. This may be a local or state police, federal agencies such as the Federal Bureau of Investigation (FBI) or the Drug Enforcement Administration (DEA). , first-aid organizations, and fire departments are now planning information system upgrades. They are coming to us for our unique BreezeACCESS Mobile(TM) technology that is able to connect mobile computers - the units within squad cars and ambulances - to a central computer and to keep them connected even while in `hot pursuit.' We believe this vast new market creates a lot of opportunities and that we are ideally positioned to benefit." Mr. Slonimsky continued, "We recently introduced a few new products that strengthen our dominant position in the sub-11 Ghz Broadband Wireless Access segment, and during the quarter, we increased our offering in the 5.8 GHz bands. Our BreezeNET DS.5800 Wireless Bridging system will be used by wireless service providers for cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. backhauls, and by enterprises to bridge campus wireless LANs A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area . The BreezeACCESS V is an ideal network supplement for our existing 2.4 Ghz networks, and is a primary network solution for several specific markets. We intend to continue introducing new products in the 5GHz bands in the future, including a non-Line-Of-Site OFDM (Orthogonal Frequency Division Multiplexing) A digital transmission technique that uses a large number of carriers spaced apart at slightly different frequencies. 5GHz product." Mr. Slonimsky concluded, "Overall, we are pleased with our performance in this difficult environment and with our solid financial results. We are confident that our comprehensive product offering, our extensive market presence, and our talented and dedicated people will enable us to take full advantage of improving market trends, and to benefit from our leadership of the Broadband Wireless market." The Company will hold a teleconference today, July July: see month. 30, 2002, at 9:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss the quarter's results. To participate in the call, please dial (888) 417-2310 (in the U.S.), or (973) 582-2749 (internationally), approximately five minutes prior to the scheduled call start time. The call will also be available live as a Webcast on www.kcsa.com and www.alvarion.com, where it will be archived and available for replay for 30 days. A replay of the call can also be accessed via telephone from 11:00 a.m. EDT on July 30, 2002 through 11:59 p.m. on August 6, 2002 by calling (877) 519-4471 in the Unites States, or (973) 341-3080 internationally, and entering the following access code: 3378563. About Alvarion Alvarion is a premier provider of solutions based on Point-to-Multipoint A communications network that provides a path from one location to multiple locations (from one to many). (PMP See point-to-multipoint and portable media player. PMP - Portable Media Player ) Broadband Wireless Access (BWA) used by telecom carriers, service providers, and enterprises worldwide. Alvarion systems provide Internet access See how to access the Internet. and voice and data services in the last mile, cellular network feeding, building-to-building and wireless local area network (LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. ) connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. . Alvarion offers the broadest range of BWA solutions by market segment and frequency band, designed to address all carriers' and service providers' business models. With its combined market experience, strong customer base, diversified diversified (di·verˑ·s distribution channels and field-proven deployments, Alvarion is a leading BWA pure play provider for every end user profile, from residential subscribers to business customers. For more information, please visit Alvarion's web site at http://www.alvarion.com. This press release may contain 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: 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. You may register to receive Alvarion's future press releases or to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. a complete Digital Investor Kit(TM) including press releases, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. filings and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at www.kcsa.com.
ALVARION LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
June 30, December 31,
2002 2001
------------------ ------------------
ASSETS
Cash, cash equivalents,
short-term and long-term
investments $ 175,150 $ 182,969
Trade receivables 11,971 15,563
Other accounts receivable 4,818 9,273
Inventories 29,789 32,580
Severance pay fund 3,410 3,217
PROPERTY AND EQUIPMENT,
NET 11,412 11,153
GOODWILL AND OTHER
INTANGIBLE ASSETS 51,640 52,840
------------------ ------------------
TOTAL ASSETS $ 288,190 $ 307,595
================== ==================
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Trade payables $ 8,186 $ 11,253
Other accounts payable
and accrued expenses 26,602 31,918
------------------ ------------------
Total current
liabilities 34,788 43,171
------------------ ------------------
LONG TERM LIABILITIES 5,228 5,228
------------------ ------------------
ACCRUED SEVERANCE PAY 5,014 4,945
------------------ ------------------
TOTAL LIABILITIES 45,030 53,344
------------------ ------------------
SHAREHOLDERS' EQUITY 243,160 254,251
------------------ ------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 288,190 $ 307,595
================== ==================
ALVARION LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Six Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2002 2001
------------------ -------------------
Sales $ 44,980 $ 46,303
Cost of sales 28,464 27,126
Write-off excess
inventory and
provision for
inventory purchase
commitments - 19,405
------------------ -------------------
Gross profit (loss) 16,516 (228)
------------------ -------------------
Operating expenses:
Research and development,
net 12,897 8,218
Selling and marketing 13,367 14,287
General and administrative 3,070 2,757
Amortization of current
technology & deferred stock
compensation 1,499 -
------------------ -------------------
Total Operating expenses 30,833 25,262
------------------ -------------------
Operating loss (14,317) (25,490)
Financial income, net 3,786 4,540
------------------ -------------------
Net loss $ (10,531) $ (20,950)
------------------ -------------------
Basic and diluted loss
per share $ (0.19) $ (0.73)
================== ===================
Weighted average number
of shares used in
computing basic
and diluted loss
per share 54,511 28,661
================== ===================
Three Months Three Months
Ended June 30, Ended June 30,
------------------- -------------------
2002 2001
------------------- -------------------
Sales $ 22,296 $ 22,412
Cost of sales 13,969 13,399
Write-off excess
inventory and
provision for
inventory purchase
commitments - 19,405
------------------- -------------------
Gross profit (loss) 8,327 (10,392)
------------------- -------------------
Operating expenses:
Research and development,
net 6,173 4,039
Selling and marketing 6,674 7,155
General and administrative 1,522 1,449
Amortization of current
technology & deferred stock
compensation 747 -
------------------- -------------------
Total Operating expenses 15,116 12,643
------------------- -------------------
Operating loss (6,789) (23,035)
Financial income, net 1,765 2,022
------------------- -------------------
Net loss $ (5,024) $ (21,013)
------------------- -------------------
Basic and diluted loss
per share $ (0.09) $ (0.72)
=================== ===================
Weighted average number
of shares used in
computing basic
and diluted loss
per share 54,419 28,991
=================== ===================
ALVARION LTD.
(a) PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
Six Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2002 2001
------------------ ------------------
Sales $ 44,980 $ 46,303
Cost of sales 28,464 27,126
------------------ ------------------
Gross profit 16,516 19,177
------------------ ------------------
Operating expenses:
Research and development,
net 12,897 8,218
Selling and marketing 13,367 14,287
General and administrative 3,070 2,757
------------------ ------------------
Total Operating expenses 29,334 25,262
------------------ ------------------
Operating loss (12,818) (6,085)
Financial income, net 3,786 4,540
------------------ ------------------
Net loss $ (9,032) $ (1,545)
------------------ ------------------
Basic and diluted loss
per share $ (0.17) $ (0.05)
================== ==================
Weighted average number of
shares used in computing
basic and diluted loss
per share 54,511 28,661
================== ==================
Three Months Three Months
Ended June 30, Ended June 30,
------------------- -------------------
2002 2001
------------------- -------------------
Sales $ 22,296 $ 22,412
Cost of sales 13,969 13,399
------------------- -------------------
Gross profit 8,327 9,013
------------------- -------------------
Operating expenses:
Research and development,
net 6,173 4,039
Selling and marketing 6,674 7,155
General and administrative 1,522 1,449
------------------- -------------------
Total Operating expenses 14,369 12,643
------------------- -------------------
Operating loss (6,042) (3,630)
Financial income, net 1,765 2,022
------------------- -------------------
Net loss $ (4,277) $ (1,608)
------------------- -------------------
Basic and diluted loss
per share $ (0.08) $ (0.06)
=================== ===================
Weighted average number of
shares used in computing
basic and diluted loss
per share 54,419 28,991
=================== ===================
(a) The pro forma statement of operations excludes the amortization of
current technology, deferred stock compensation, write-off of
excess inventory and provision for inventory purchase commitments.
The above pro forma information is for informational purposes
only. It is not prepared in accordance with Generally Accepted
Accounting Principles in the United States (US GAAP) and
should not be considered as a substitute for our historical
financial information prepared in accordance with GAAP.
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