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| The third quarter of 2008 was an excellent quater with record revenues and increase in the profits |
Alvarion Ltd., the world's leading provider of WiMAX™ and wireless broadband solutions, today announced financial results for the third quarter ended September 30, 2008.
Highlights:
♦ Record revenues of $74.3 million, up 23% from Q3 2007
♦ GAAP net income up 29% compared to Q3 2007; Non-GAAP net income up 24%
♦ Non-GAAP EPS of $0.05; GAAP EPS of $0.01
♦ WiMAX revenues of $49.5 million, up 41% from Q3 2007
♦ Cumulative WiMAX shipments of over $390 million
♦ Cash reserves of $146 million
In the third quarter of 2008, revenues increased to $74.3 million, a 23% increase from $60.6 million in the third quarter of 2007, and a 7% increase from $69.7 million in the second quarter of 2008. BreezeMAX® revenues in Q3 2008 were over $49 million, or about 67% of total revenues.
GAAP net income in the third quarter of 2008 was $803,000, or $0.01 per share, compared to GAAP net income of $621,000, or $0.01 per share, in Q3 of 2007, which included income from discontinued operations of $750,000, and GAAP net loss of $(812,000), or $(0.01) per share, in Q2 2008.
Excluding amortization of acquired intangibles, stock based compensation expenses and discontinued operations, the company reported non-GAAP net income of $3.0 million, or $0.05 per diluted share, compared with non-GAAP net profit of $2.4 million, or $0.04 per diluted share, in Q3 2007, and $1.7 million, or $0.03 per diluted share in the second quarter of 2008.
Cash reserves as of September 30, 2008 totaled approximately $146 million.
For supplemental information to facilitate evaluation of the impact of non-cash charges, results of discontinued operations and comparisons with historical results, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q3 and the first nine months of 2008 and the comparative periods.
Comments from Management
"Q3 was an excellent quarter with record revenues and shipments, improved profitability and strong bookings. The U.S. dollar strengthened during the quarter, so currency translation had less of an impact than we had expected. We also achieved several business milestones including being awarded the first major project with Nortel, and two major expansions of existing customers' projects in Europe and Latin America.
"This strong execution occurred in a climate of increasingly negative sentiment resulting from the spreading credit crisis and subsequent predictions of global recession. These macro-economic factors are becoming a looming threat at a time when our own visibility is much better than a year ago, and the company is stronger than ever in terms of both business and financial parameters. If we are heading into a slowdown, we are doing so with excellent momentum.
The third quarter of 2008, revenues increased to $74.3 million, a 23% increase from $60.6 million in the third quarter of 2007, and a 7% increase from $69.7 million in the second quarter of 2008 |
"Current metrics such as number of projects in the pipeline, bookings and customer feedback are still giving positive signals, but we also have seen a few projects move more slowly for reasons unrelated to the economy. Therefore, we are adopting a cautious stance in our assumptions about the timing of shipments and related revenues. In addition, we are preparing to operate within a more difficult business climate as we move into 2009. We will intensify our expense control efforts, adopt even more conservative credit policies, and continually monitor our bookings and pipeline of business in order to focus our resources on the projects most likely to move forward regardless of the economic environment. During this period of uncertainty, we will concentrate on maintaining maximum flexibility and prepare to take action if the market weakens, with the main goal of capturing market share from weaker competitors or those changing their focus."
Q4 2008 Guidance
The company's revenue guidance for Q4 2008 is $70 to $78 million. Based on this revenue range, non-GAAP per share results are expected to range between $0.00 and $0.07, based on approximately 64.5 million of estimated weighted average diluted shares outstanding. GAAP results are expected to range between a loss of ($0.04) and earnings per share of $0.03.
