zk1007848.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
 
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of  February 2010
 
Commission File Number:  0-30628
 
ALVARION LTD.
(Translation of registrant’s name into English)
 
21A Habarzel Street, Tel Aviv 69710, Israel
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ   Form 40-F o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o   No þ
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________

 
 
The following are included in this report on Form 6-K:

                                                                                       
 Exhibit     Description
Sequential
Page Number
     
1.
Press release on Alvarion® Reports Q4 and
Full Year 2009 Results.
Dated February 03, 2010
9
 
 
2

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
  ALVARION LTD.  
       
Date: February 03, 2010
By:
/s/ Efrat Makov  
    Name: Efrat Makov  
    Title: CFO  
 
3
 
EXHIBIT 1
 
Contacts
  
Efrat Makov, CFO
Claudia Gatlin, Investor Relations
+972-3-645-6252
+212-830-9080
+760-517-3187
claudia.gatlin@alvarion.com
efrat.makov@alvarion.com
  

FOR IMMEDIATE RELEASE

Alvarion® Reports Q4 and Full Year 2009 Results
 
Tel Aviv, February 3, 2010 — Alvarion Ltd. (NASDAQ:ALVR), the world’s leading provider of 4G WiMAX™ and wireless broadband solutions, today announced financial results for the fourth quarter and year ended December, 31, 2009.

Q4 Highlights:   
·
GAAP operating loss of ($1.3) million; non-GAAP operating profit of $0.6 million
·
GAAP net loss of ($0.02) per share; non-GAAP net income of $0.01 per share
·
WiMAX revenues up 5% sequentially to $42.7 million
·
WiMAX shipments down 9% sequentially to $34.2 million

2009 Highlights (compared to 2008):
·
Reduced GAAP operating expenses by 16%; reduced non-GAAP operating expenses by 14%
·
GAAP operating loss of ($8.0) million; non-GAAP operating loss of ($0.6) million
·
GAAP net loss of ($0.12) per share; non-GAAP net income of $0.01 per share
·
WiMAX revenues up 5% to $179 million
·
WiMAX shipments down 20% to $152 million

In the fourth quarter of 2009, total revenues were $60.2 million, an increase of 3.1% from $58.4 million in the third quarter of 2009, and a decrease of 14% from $70.1 million in the fourth quarter of 2008.

GAAP net loss in the fourth quarter of 2009 was ($1.3) million, or ($0.02) per share, compared to a net loss of ($1.0) million, or ($0.02) per share in Q3 2009. GAAP net loss in the fourth quarter of 2008 was ($4.8) million, or ($0.08) per share.
 
Excluding the amortization of intangibles, stock based compensation, restructuring and other charges, net, on a non-GAAP basis, the company reported net income of $0.7 million in the fourth quarter of 2009, or $0.01 per diluted share, compared with non-GAAP net income of $0.2 million, or $0.00 per diluted share in the third quarter of 2009, and non-GAAP net loss of ($0.4) million, or ($0.01) per diluted share in the fourth quarter of 2008.
 
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Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP for the fourth quarter of 2009 and the comparative periods.
 
Cashused in operations was ($5.8) million. As of December 31, 2009, cash, cash equivalents and investments totaled $118 million.

Comments from Management

“We are pleased with the increase in WiMAX revenues in 2009 and our ability to deliver a non-GAAP profit in the face of business challenges arising from the worst global economic crisis in a generation,” said Eran Gorev, president and CEO of Alvarion. “Throughout the year, operators’ interest in deploying WiMAX networks remained robust and the WiMAX ecosystem continued to expand.

“Several important business catalysts expected in Q4, such as the awarding of broadband stimulus funds in the U.S. and the auction of WiMAX spectrum in India, have been delayed and are now expected to materialize during 2010.

“By Q4, there were over 120 WiMAX Forum-certified subscriber devices available.  As additional devices are introduced, more spectrum is allocated, new vertical market applications are launched and additional funds are made available to help conquer the digital divide, we believe the future of WiMAX is bright.

“During 2009, we acted decisively to streamline the organization, improve efficiency and lower our breakeven point to position the company to deliver operating leverage as revenues improve.  As a result, we achieved a non-GAAP operating profit in Q4.

“Looking ahead, we expect gradual improvement during the second half of 2010 as the tight credit environment starts to ease and some of the business catalysts materialize.”

Q1 2010 Guidance

The company’s revenue guidance for Q1 2010 is $50 to $60 million.  Based on the indicated revenue range, non-GAAP per share results are expected to range between a loss of ($0.07) and profit of $0.01. GAAP per share results are expected to range between a loss of ($0.10) and ($0.02).

Alvarion management will host a conference call today, February 3, at 9:00 a.m. Eastern time to discuss the quarter.

Please call the following dial in number to participate:
USA: (800) 230-1096; International: +1(612) 332-0107.

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 online broadcast will be available on the website. 

A replay of the call will be available from 11:00 a.m. EST on February 3, 2010 through 11:59 a.m. EST on March 3, 2010.
 
 
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To access the replay, please call:
USA: (800) 475-6701
International: +1(320) 365-3844.
To access the replay, users will need to enter the following code: 140419.

Alvarion has scheduled dates for the earnings announcements during 2010 and this schedule is available on the website at http://www.alvarion.com/index.php/en/investors.
 
About Alvarion
Alvarion (NASDAQ:ALVR) is a global leader in 4G wireless communications with the industry’s most extensive customer base with hundreds of commercial WiMAX deployments. Alvarion’s industry leading solutions enable true open 4G and vertical applications for service providers and enterprises. Through an OPEN WiMAX strategy, superior IP and OFDMA know-how, and ability to deploy large scale end-to-end turnkey networks, Alvarion is delivering the true 4G broadband experience today (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: potential impact on our business of the current global recession, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in WiMAX license allocation in certain countries; the failure of the market for WIMAX products to develop as anticipated; potential impact on our business of the current global recession;, Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; 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 inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other 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.
 
You may request Alvarion's future press releases or a complete Investor Kit by contacting Kika Stayerman at kika.stayerman@alvarion.com or +972.3.767.4159.
 
"WiMAX" is a trademark of the WiMAX Forum.
"Alvarion" is a registered trademark of Alvarion Ltd. in certain jurisdictions.
All other companies' names, products, services may be the properties of their respective owners.


6
 
ALVARION LTD. & ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
 
 
               
Three
    
Three
    
Three
  
   
Year Ended
    
Year Ended
    
Months Ended
    
Months Ended
    
Months Ended
  
   
December 31,
    
December 31,
    
December 31,
    
December 31,
    
September 30,
  
   
2009
    
2008
    
2009
    
2008
    
2009
  
                               
Sales
   $ 245,239     $ 281,281     $ 60,241     $ 70,094     $ 58,383  
                                         
Cost of sales
     132,454       147,783       32,202       38,751       30,925  
Gross profit
     112,785       133,498       28,039       31,343       27,458  
                                         
Operating expenses:
                                        
Research and development, net
     50,790       59,679       10,790       14,646       12,330  
Selling and marketing
     52,022       60,521       12,857       14,909       12,824  
General and administrative
     15,087       18,813       3,584       4,773       3,757  
Amortization of intangible assets
     132       1,327       33       (267 )     33  
Restructuring and other related expenses (*)
     2,787       2,914       2,119       2,914       -  
Total Operating expenses
     120,818       143,254       29,383       36,975       28,944  
Operating loss
     (8,033 )     (9,756 )     (1,344 )     (5,632 )     (1,486 )
                                         
Other loss
     (823 )     -       (74 )     -       -  
                                         
Financial income, net
     1,668       4,297       117       783       454  
Net income (loss)
     (7,188 )     (5,459 )     (1,301 )     (4,849 )     (1,032 )
                                         
                                         
                                         
Basic net earnings (loss) per share:
     (0.12 )   $ (0.09 )   $ (0.02 )   $ (0.08 )     (0.02 )
                                         
Weighted average number of shares used in computing basic net earnings (loss) per share
   $ 62,023       62,925       62,095       62,330     $ 62,054  
                                         
Diluted net earnings (loss) per share:
     (0.12 )   $ (0.09 )   $ (0.02 )   $ (0.08 )     (0.02 )
                                         
                                         
Weighted average number of shares used in computing diluted net earnings (loss) per share
   $ 62,023       62,925       62,095       62,330     $ 62,054  
                                         
 
 
7
 
ALVARION LTD. & ITS SUBSIDIARIES
RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME
U.S. dollars in thousands (except per share data)
 
                         
   
Three Months Ended
December 31,
2009
    
Three
Months Ended
September 30,
2009
Non-GAAP
  
   
GAAP
    
Adjustments
    
Non-GAAP
      
                         
Sales
   $ 60,241     $ -       60,241     $ 58,383  
                                 
Cost of sales
     32,202       32
  (a)
     32,234       30,832  
Gross profit
     28,039       (32 )     28,007       27,551  
                                 
Operating expenses:
                                
Research and development, net
     10,790       (10
) (a)
     10,780       11,837  
Selling and marketing
     12,857       109
  (a)
     12,966       12,467  
General and administrative
     3,584       70
  (a)
     3,654       3,523  
Amortization of intangible assets
     33       (33
) (b)
     -       -  
Restructuring and other related expenses
     2,119       (2,119
) (c)
     -       -  
Total  Operating expenses
     29,383       (1,983 )     27,400       27,827  
Operating profit (loss)
     (1,344 )     1,951       607       (276 )
                                 
Other loss
     (74 )     74.00       0          
                                 
Financial income, net
     117       -       117       454  
Net income (loss)
     (1,301 )     2,025       724     $ 178  
                                 
                                 
Basic net earnings (loss) per share
     (0.02 )             0.01       0.00  
                                 
Weighted average number of shares used in computing basic net earnings (loss) per share
   $ 62,095               62,095       62,054  
                                 
Diluted net earnings (loss) per share
     (0.02 )             0.01       0.00  
                                 
Weighted average number of shares used in computing diluted net earnings (loss) per share
   $ 62,095               64,515       64,605  
 
(a) 
The effect of stock-based compensation. The Company adopted the provisions of Statement of Financial Accounting Standards No. 123(R), "Share-Based Payment" on January 1, 2006 using the modified-prospective transition method.
 
(b)
The effect of amortization of intangible assets.
 
(c)
Results of the organizational change and other charges.
 
 
8
 
ALVARION LTD. & ITS SUBSIDIARIES
 
DISCLOSURE OF NON-US GAAP NET INCOME
 
FOR COMPARATIVE PURPOSES NET INCOME AND EARNINGS PER SHARE FROM CONTINUING OPERATIONS EXCLUDING AMORTIZATION OF
ACQUIRED INTANGIBLES, STOCK BASED COMPENSATION EXPENSES, RESTUCTURING EXPENSES AND ONE TIME CHARGES
 
U.S. dollars in thousands (except per share data)
 
 
               
Three
    
Three
    
Three
  
   
Year Ended
    
Year Ended
    
Months Ended
    
Months Ended
    
Months Ended
  
   
December 31,
    
December 31,
    
December 31,
    
December 31,
    
September 30,
  
   
2009
    
2008
    
2009
    
2008
    
2009
  
                               
Net income (loss) according to US GAAP
   $ (7,188 )   $ (5,459 )   $ (1,301 )   $ (4,849 )   $ (1,032 )
                                         
Amortization of acquired intangibles
     132       1,327       33       (267 )     33  
                                         
Stock based compensation expenses related to SFAS 123R
     4,246       7,561       (201 )     1,789       1,177  
                                         
Restructuring and other related expenses (*)
     2,787       2,914       2,119       2,914       -  
                                         
Other loss
     823               74               -  
                                         
Net Income (loss)  excluding amortization of acquired intangibles, stock based compensation and restructuring expenses
   $ 800     $ 6,343     $ 724     $ (413 )   $ 178  
                                         
Basic net earnings (loss)  per share excluding amortization of acquired intangibles, stock based compensation and restructuring expenses
   $ 0.01     $ 0.10     $ 0.01     $ (0.01 )   $ 0.00  
                                         
Weighted average number of shares used in computing basic net earnings (loss) per share
     62,023       62,925       62,095       62,330       62,054  
                                         
Diluted net earnings (loss) per share excluding amortization of acquired intangibles, stock based compensation and restructuring expenses
   $ 0.01     $ 0.10     $ 0.01     $ (0.01 )   $ 0.00  
                                         
Weighted average number of shares used in computing diluted net earnings (loss) per share
     64,184       64,143       64,515       62,330       64,605  
 
(*) Results of the organizational changeand and other charges.
 
 
9
 
ALVARION LTD. & ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
December 31,
    
December 31,
  
   
2009
    
2008
  
          ASSETS
            
             
Cash, cash equivalents, short-term and long-term investments
   $ 118,474     $ 140,630  
Trade receivables
     65,490       59,814  
Other accounts receivable
     7,241       8,110  
Inventories
     35,982       53,675  
                 
INVESTMENT IN AFFILIATES
     -       1,554  
                 
PROPERTY AND EQUIPMENT, NET
     16,610       16,955  
                 
GOODWILL AND OTHER INTANGIBLE ASSETS
     57,240       57,372  
                 
TOTAL ASSETS
   $ 301,037     $ 338,110  
                 
          LIABILITIES AND SHAREHOLDERS'  EQUITY
                
                 
CURRENT LIABILITIES
                
                 
Trade payables
   $ 35,581     $ 57,033  
Other accounts payable and accrued expenses
     42,203       57,111  
                 
Total current liabilities
     77,784       114,144  
                 
LONG TERM  LIABILITIES
                
Long term employees liabilities
     4,354       5,831  
Long term liabilities others
     2,255       2,229  
                 
Total long term liabilities
     6,609       8,060  
                 
TOTAL LIABILITIES
     84,393       122,204  
                 
SHAREHOLDERS'  EQUITY
     216,644       215,906  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 301,037     $ 338,110  
 
 
10
 
ALVARION LTD.& ITS SUBSIDIARIES
Consolidated Statement of Cash Flows
U.S. dollars in thousands
 
   
Three
  
   
Months ended
  
   
December 31, 2009
  
Cash flows from operating activities:
      
Net loss
   $ (1,301 )
Adjustments to reconcile net loss to net cash provided by operating activities:
        
Depreciation
     1,699  
Capital (Gain)/Loss
     267  
Stock based compensation expenses related to SFAS 123R
     (201 )
Amortization of intangibles assets
     33  
Increase in trade receivables
     (12,160 )
Decrease in other accounts receivable and prepaid expenses
     2,292  
Decrease in inventories
     4,171  
Decrease in trade payables
     (139 )
Decrease in other accounts payables and accrued expenses
     (409 )
Decrease in long term employees liabilities
     (12 )
Decrease in long term liabilities
     (50 )
Net cash used in operating activities
     (5,810 )
         
Cash flows from investing activities:
        
Purchase of fixed assets
     (1,164 )
Net cash used in investing activities
     (1,164 )
         
Cash flows from financing activities:
        
Proceeds from exercise of employees' stock options
     154  
Net cash provided by financing activities
     154  
         
Decrease in cash, cash equivalents, short-term and long-term investments
     (6,820 )
         
Cash, cash equivalents, short-term and long-term investments at the beginning of the period
     125,294  
Cash, cash equivalents, short-term and long-term investments at the end of the period
   $ 118,474  
 
 
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