Alvarion Reports Record Results for the First Quarter 2004: Revenues increased 13% sequentially to a record of $44.7 million, improvement in all financial measurements
TEL - AVIV, Israel--(BUSINESS WIRE)--May 5, 2004-- Alvarion Ltd. (NASDAQ: ALVR - News), the global leader in wireless broadband solutions, today announced financial results for the first quarter ended March 31, 2004.
Revenues for the first quarter of 2004 rose to a record $44.7 million, an increase of 13% compared to $39.5 million in the fourth quarter of 2003, and up 100% from $22.4 million in the first quarter of 2003. Gross margin increased for the 10th consecutive quarter, reaching 43% compared to 42% in the fourth quarter of 2003 and 39 % in the first quarter of 2003.
Net profit increased to $1.4 million, or $0.02 per share on a fully diluted basis for the first quarter of 2004. Net profit for the fourth quarter of 2003 was $81,000, or $0.00 per share on a fully diluted basis and net loss for the first quarter of 2003 was $(4.0) million, or $(0.08) per share.
Results for all periods include expenses attributable to the amortization of intangible assets and deferred stock compensation, which totaled $680,000 in the first quarter of 2004, $797,000 in the fourth quarter of 2003, and $740,000 in the first quarter of 2003.
Excluding all aforementioned amortizations, the Company's non-GAAP net income for the first quarter of 2004 was $2.1 million, or $0.03 per diluted share. For the fourth quarter of 2003 non-GAAP net income was $878,000, or $0.01 per diluted share, and for the first quarter of 2003 non-GAAP net loss was $(3.2) million, or $(0.06) per share.
Comments of Management
"Q1 was another quarter of growth with strong execution by our team, which enabled us to more than double our profit on a non-GAAP basis from the previous quarter," noted Zvi Slonimsky, CEO of Alvarion. "Revenues were up 13% sequentially even though Q1 tends to be a seasonally weak quarter, owing both to strong demand across the board and excellent progress on the implementation of the large Latin American project for which the company received $40M orders as announced last year. The receipt of an $18 million follow-on order for this project further attests to our performance.
"We achieved some additional financial milestones in Q1," continued Mr. Slonimsky. "Record revenues and continued emphasis on improved efficiency enabled us to improve gross margin for the 10th consecutive quarter. We also reported an operating profit and generated positive cash flow this quarter.
"We are happy to see the broad-based growth in demand in different areas and for different applications around the world. Revenues in the U.S. are growing, and we are pleased by recent wins in Brazil and Bolivia. Other recent deals in Kenya and Namibia represent signs that Africa is a growing opportunity as well. Our selection by Reliance signals the beginning of what we expect to be strong growth in India, and we are encouraged to see that the license allocation process for the next phase of deployments in China was completed recently. China is the largest single opportunity for wireless, especially for access applications and we hope to see commercial deployments of our products by the end of this year.
"We recently introduced our BreezeACCESSTM VL system to the European market in the 5.4 GHZ unlicensed bands. Like a similar solution that is doing well in the U.S. because of its no line of sight capabilities, this solution employs OFDM, which is also a basic technology in the WiMAX standard.
"As we continue working closely with Intel on a WiMAX solution, we see growing support for the WiMAX standard among major operators and large vendors. Just as our recent success in the developing world adds to our confidence in near-term demand, these positive signs of support for the WiMAX standard bolster our confidence in the longer-term growth potential of our industry. We believe our leading market share, broad product line, extensive global presence, strong financial condition and proven ability to execute, position us very well to capitalize on this potential," concluded Mr. Slonimsky.
Q2 2004 Guidance
The Company expects Q2 2004 revenues to range between $47 million and $49 million. At this revenues range, net earnings per share is expected to range between 3 and 4 cents, while non-GAAP net earnings per share, which excludes amortization of intangible assets and deferred stock-based compensation, is expected to range between 4 and 5 cents.
Alvarion's management will host a conference call today, May 5, 2004, at 9:00 a.m. Eastern Time to discuss the quarter's results. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: USA: 612-332-0802, International +1-612-332-0802. The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion's website at www.alvarion.com. An archive of the on-line broadcast will be available on the website. A replay of the call will be available from 4 p.m. Eastern Time on May 5, 2004 through 11:59 p.m. Eastern Time on May 12, 2004. To access the replay, please call USA: (320) 365-3844, International: +1-320-365-3844. To access the replay, users will need to enter the following code: 728002 |
