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Alvarion (ALVR) Offers 2012 Goals and Guidance

December 14, 2011 5:22 PM EST
ALVR Hot Sheet
Revenue Growth %: -28.4%

Today's EPS Names:
TARO, BRLI, TLB, More
Alvarion Ltd. (NASDAQ: ALVR) today announced that it is implementing its strategic plan with specific business goals which are targeting a non-GAAP operating profit margin of 5% for 2012. After capital expenditures and debt service, the 2012 cash balance at yearend is expected to be about $65 million, similar to the level expected at year-end 2011.

Based on the new plan, the overall non-GAAP gross margin target for 2012 is 45% and the target for operating expenses is below 40% of revenue. Taking into account the macro-economic outlook, management is basing the plan on an assumed revenue level of $185 million to $195 million for 2012, which includes approximately $25 million of revenue from Wavion products. The Street is

Alvarion’s Q4 2011 report will include Wavion’s results from November 23, 2011. Management expects revenues in Q4 to be $42 to $44 million. The non-GAAP loss per share is expected to be ($0.03) to ($0.04). forecasting total sales of $196 million for 2012. For the fourth quarter, the Street estimates sales of $46.02 million in ($0.03) in earnings.

Beyond 2012, Alvarion will be targeting a long-term operating model with revenue growth of 15-20% per year, at least 45% gross margin, 10% non-GAAP operating margin and sustained positive free cash flow after capital expenditures and debt service.


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