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Alvarion posted $58.4 million revenue, 21 percent less than the $74.3 million for the corresponding quarter of 2008, and 0.6 percent less than the $58.7 million revenue for the preceding quarter. The company edged past the analysts' consensus of $57.9 million revenue.
GAAP-based net loss was $1 million ($0.02 per share) a quarter of the $4 million net loss for the second quarter, but more than the $803,000 net loss for the corresponding quarter.
Non-GAAP net profit was $178,000 ($0.00 per share), compared with a net loss of $605,000 for the preceding quarter, and compared with a net profit of $3 million for the corresponding quarter. The company beat the analysts' consensus of a loss per share of $0.02.
Alvarion used $4.7 million in cash during the third quarter, and had $125 million in cash and cash equivalents at the end of September.
WiMAX product deliveries fell 4 percent compared with the preceding quarter to $37.5 million in the third quarter, due to the postponement of projects. WiMAX product revenue fell 10 percent with the preceding quarter to $40.5 million in the third quarter.
Alvarion predicts that it will post $55-63 million revenue for the fourth quarter. It expects non-GAAP earnings to range from a loss of $0.04 per share to a profit of $0.02 per share, and GAAP-based earnings to range from a loss of $0.07 per share to a profit of $0.01 per share. The forecast is below the analysts' consensus of non-GAAP earning per share of $0.01 on $64.4 million revenue.
Alvarion president and CEO Tzvika Friedman said, "We achieved non-GAAP breakeven results on approximately the same level of revenues as the second quarter, as a result of higher gross margin from a favorable revenue mix combined with our success in improving operating leverage. Our challenge in the third quarter related mainly to the impact on revenues of regulatory delays in making spectrum available and the tight credit environment which slowed the pace of some deployments. Meanwhile, fundamental demand remains robust, the WiMAX ecosystem is expanding, and operators are experiencing subscriber growth. As a result, operators' interest in our solution is also growing, and we continue to be encouraged by the gradual improvement in order intake."
Friedman added, "We expect a similar quarter in the fourth quarter, followed by a gradual recovery which is expected to begin during the first half of 2010 based on improving demand, plus our ability to reach revenue recognition milestones on projects already won. Catalysts for improving demand may include easing of tight credit conditions, new projects funded under the US broadband stimulus program, and WiMAX license auctions in India. By the end of 2009, the result of streamlining and simplifying the organization will have taken full effect, bringing our revenue breakeven level to approximately $58 million. This will position us to benefit from further operating leverage as revenues improve.
Alvarion's share rose 4.8 percent yesterday on Nasdaq to $4.13, giving a market cap of $256 million. The share rose 5.5 percent in early trading on the TASE today to NIS 15.30.
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