Alvarion Cuts Q1 2012 Guidance; Company Will Be In Default Of A Financial Covenant

Alvarion® Ltd. ALVR today announced that it expects first quarter 2012 revenues to be approximately $33 million to $33.5 million, below the guidance previously provided by the company, primarily as a result of lower than expected sales of an older product line which the company currently intends to replace later this year, as well as a large order which has been delayed from Q1 until Q2. Based on this estimated revenue, non-GAAP net loss per diluted share is expected to be between ($0.09) and ($0.10) for the first quarter of 2012, compared to the company's previous guidance of a non-GAAP net loss per diluted share between ($0.01) and ($0.06) based on expected revenues of $38 to $43 million. GAAP per share results, which include charges of approximately $1.5 million related to the acquisition of Wavion Inc. in November 2011 and stock-based compensation, are expected to range between a loss of ($0.12) and ($0.13) compared to the company's previous guidance of a per share loss between ($0.03) and ($0.08). Cash and cash equivalents totaled approximately $51.5 million as of March 31, 2012. As a result of the foregoing, the company will be in default of a financial covenant under certain loan and credit facility agreements, including a $30 million loan obtained by the company for the acquisition of Wavion Inc. The company has initiated discussions with the respective banks.