Alvarion’s Sales Dropped 31% in FY 2012 to $50 Million
4 March, 2013
After the announcement of the the company's annual poor financial results, its shares in NASDAQ collapsed by more than 17% in few minutes.
The investors in NASDAQ stock exchange did not give a warm welcome reception to Alvarion (NASDAQ:ALVR) when it has published its financial results for the fourth quarter and year ended December 31, 2012. Within a few minutes the share’s value dropped by more than 17%, giving Alvarion its lowest capital value of approximately $24 million.
The company announced revenues of $8.2 million, a 25.4% sequential decrease, in Q4 2012, and revenues of $50.0 million for the financial year 2012, a 30.9% decrease compared to 2011. Hezi Lapid, President and Chief Executive Officer of Alvarion, admitted “2012 was a challenging year for Alvarion. Nonetheless, the agreement to sell our carrier licensed business (to Telrad Networks) marks a significant step forward in executing our new strategic plan.”
“Once the sale is complete, Alvarion will transform into a ‘pure play’ in the wireless broadband market in the unlicensed frequencies, where we target two market segments: private and public networks in vertical markets and the carrier Wi-Fi market. We believe that these two markets hold significant growth potential for us and that we have the right product offering.”