Alvarion Ltd. (USA) (NASDAQ:ALVR) went down by 27 cents or 12.22% to $1.94 after the company reported disappointing results for the December quarter.
Shares of the company opened at $2.09 and traded in the range of $1.86-$2.09 with volume of 1.43 million shares. The stock has 52 week range of $1.78-$4.28. The market capitalization of the stock stands at $120.57 million with beta of 1.11.
The Company reported total revenue of $50.3 million in its fourth fiscal quarter, a decrease of 7% quarter over quarter from $54.0 million and a decrease of 16.6% year over year from $60.2 million and below the street consensus of $56.02 million. This decrease in revenue is because the company is continuously experiencing lumpiness given its transition to a turnkey solution provider.
Net loss of $69.5 million or $1.12 per share has been posted for the quarter compared to net loss of $1.3 million, or $0.02 per share in the same quarter last year.
Excluding the amortization of intangibles, stock based compensation, restructuring and impairment charges, the company reported a net loss of $11.2 million or $0.18 per share versus the analyst estimate of loss of $0.05 per share.
Shipments to customers declined by 23% sequentially to $48.5 million. Non-GAAP gross margin was 30.3%, compared to consensus of about 32.9% and last year’s margin of 46.5%. Non-GAAP general and administrative expenses were $7.6 million from last year’s $3.7 million.
The company said its goal for 2011 is to bring blended gross margin to the high 30's with operating expenses below 35% of revenues, on a quarterly basis, and to lay the foundation for sustainable growth from a lower, but profitable, revenue base beginning in the second quarter.
Alvarion Ltd. supplies top-tier carriers, Internet service providers (ISPs), and private network operators with solutions based on the Worldwide Interoperability for Microwave Access (WiMAX) standard, as well as other wireless broadband solutions.
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