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Alvarion
Announces Sale of Cellular Mobile Unit
Other Topics:
WiMAX Base Station Equipment,
WiMAX Wireless Infrastructure,
WiMAX Gigabit Wireless Links
Alvarion Ltd.
November 22, 2006
Tel Aviv, Israel -- Alvarion Ltd. (NASDAQ:ALVR), the world’s leading
provider of wireless broadband solutions today announced that it has
completed the sale of its Cellular Mobile business unit (“CMU”) to LGC
Wireless, Inc. (“LGC”), a privately-held supplier of wireless networking
solutions that enable high-speed wireless voice and data communications
in dense urban areas as well as inside public and private structures.
The sale includes substantially all of the assets of the CMU in exchange
for approximately $15 million in notes and the assumption of certain
liabilities. The notes are due at the end of 2007 and 2008. One of the
notes, in the principal amount of $7 million, is convertible into shares
of common stock of LGC. |
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Tzvika Friedman,
President and CEO of Alvarion said, “We believe that this transaction
represents a good outcome for the customers and employees of the
Cellular Mobile Unit, as well as for the shareholders of Alvarion. The
transaction will enable us to focus all of our resources and attention
on WiMAX.”
The CMU business, revenues of which contributed approximately $21
million in the first 3 quarters of 2006, will be classified as
discontinued operations and, as a result, the broadband wireless access
(BWA) revenues will constitute all of Alvarion’s revenues. The Company
indicated that it is reiterating its guidance, given on November 2,
2006, of revenues for its BWA business of between $47 million and $51
million for the fourth quarter of 2006. Alvarion is also reiterating its
non-GAAP EPS guidance of $0.01 and $0.04 for the fourth quarter of 2006.
The cash impact of the transaction on the fourth quarter results will be
immaterial; however, fourth quarter GAAP results may include a non-cash
charge, mainly to reflect the loss on the sale of these assets. As a
result, the Company is rescinding its previous guidance for GAAP results
for the fourth quarter of 2006. This transaction will reduce total
headcount by about 100 people, which will allow Alvarion to divert
investments to its WiMAX initiatives without increasing overall
operating expenses.
About Alvarion
With more than 2 million units deployed in 150 countries, Alvarion is
the world’s leading provider of innovative wireless network solutions
enabling personal broadband services to improve lifestyles and
productivity with portable and mobile data, VoIP, video and other
applications. Providing systems to carriers, ISPs and private network
operators, the company also supplies solutions to extend coverage of GSM
networks to developing countries and other hard to serve areas.
Leading the WiMAX market with the most widely deployed WiMAX system in
the world, Alvarion has the most extensive networks 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 business and residential broadband
access, corporate VPNs, toll quality telephony, mobile base station
feeding, hotspot coverage extension, community interconnection, public
safety communications, and mobile voice and data. Alvarion works with
several global OEM providers and more than 200 local partners to support
its diverse global customer base in solving their last-mile challenges.
As a wireless broadband pioneer, Alvarion has been driving and
delivering innovations for more than 10 years from core technology
developments to creating and promoting industry standards. Leveraging
its key roles in the IEEE 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 mobile WiMAX solutions.
For more information, visit Alvarion’s World Wide Web site at
www.alvarion.com
This press release contains forward -looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act 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 LGC to make payments when due under the
notes, the possibility that Alvarion will owe indemnification
obligations to LGC under the terms of the transaction, the possibility
that Alvarion will be subject to ongoing liabilities of the CMU that
either are not assumed by LGC, or that are assumed but not performed by
LGC, the risk that the LGC shares into which a portion of the note may
be converted will have a value significantly lower than the principal
amount of the note being converted at or following the time of
conversion, 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 in ability 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.
Information set forth in this press release pertaining 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. |
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