Notas de Imprensa

Alvarion Reports Results Of The Second Quarter And First Half Of 2003

Revenues of $31.0 million; Company Achieves Breakeven Operating Cash Flow 
 
Tel – Aviv, Israel, July 30, 2003 – Alvarion Ltd. (NASDAQ:  ALVR), a leading provider of Wireless Broadband solutions for carriers and service providers, today announced financial results for the second quarter and six months ended June 30, 2003.

The results of the second quarter include the full-quarter contribution of Alvarion’s wideband voice and data products, following the acquisition of most of the assets and liabilities of InnoWave ECI Wireless Systems Ltd. (“InnoWave”), which was completed on April 1, 2003.

Financial Results

Revenues for the second quarter of 2003 were $31.0 million. This included, for the first time, revenues from sales of wideband products, which amounted to approximately $8 million during the period. Revenues for the first quarter of 2003 were $22.4 million, and revenues for the second quarter of 2002 were $22.3 million. Net loss for the second quarter of 2003 totaled $(5.9) million, or $(0.11) per share, compared with $(4.0) million, or $(0.08) per share for the first quarter of 2003, and $(5.0) million, or $(0.09) per share, for the second quarter of 2002.

The Company’s results for the second quarter ended June 30, 2003 include one-time charges of $2.2 million related to the acquisition of InnoWave.  Results for all periods also include expenses attributable to the amortization of current technology, which totaled $650,000 in the second quarter of 2003 and $600,000 in both the first quarter of 2003 and the second quarter of 2002. The results also include amortizations of deferred stock compensation, which totaled $140,000 in both the first and second quarter of 2003 and $147,000 in the second quarter of 2002.

Had the InnoWave acquisition charges and the amortization expenses been excluded from the Company’s results of operations for all periods, the Company’s non-GAAP net loss for the second quarter of 2003 would have been $(2.9) million, or $(0.06) per share, compared to a non-GAAP net loss of $(3.2) million, or $(0.06) per share for the first quarter of 2003 and a non-GAAP net loss of $(4.3) million, or $(0.08) per share for the second quarter of 2002.

Comments of Management

Zvi Slonimsky, CEO of Alvarion, commented, “During the second quarter, the Alvarion team delivered improved financial results. The integration of InnoWave is proceeding on schedule, and we have begun to realize the operating synergies and benefit from the business opportunities that have been made possible by the acquisition.

“Our operating cash flow this quarter was essentially breakeven, and we continue to progress toward our goal of profitability.

“We are encouraged by the growing interest in BWA as a powerful, cost-effective alternative for areas with poor existing infrastructure and/or difficult terrain, and for rapid installations. We are moving ahead on all strategic fronts, expanding our available market and strengthening our leadership position. To enhance our U.S. presence, we have introduced the BreezeACCESS™ VL 5GHz high-speed OFDM solution and the BreezeACCESS™ 900, and are pleased with the initial market reception for both. During the quarter, we received orders for Wireless DSL and backhaul systems from incumbent carriers in Mexico, China, Russia, the U.K., and New Zealand, and initiated Wireless DSL trials with carriers in several other regions.  In addition, we have recently announced important wins with China Unicom to deploy high performance Broadband wireless access networks in seven cities through our local partners BISC and Datang. We have already begun to ship the first small orders that are typical of the initial phase of such a deployment.”

Mr. Slonimsky continued, “The last few months were marked by important milestones which will help transform BWA into a mass-market phenomenon. Since January, when the IEEE 802.16a standard was approved, over 25 leading communications companies have joined the non-profit WiMAX Forum to help promote and certify the compatibility and interoperability of 802.16a-standard equipment. Intel has recently announced its intention to lead the WiMAX revolution with standard-compliant silicon. We are proud that Intel, acknowledging Alvarion’s leadership of the BWA industry, has chosen Alvarion as its partner to develop the first WiMAX-Certified products based on its 802.16a-standard chips. 

“We believe that WiMAX will be an important catalyst for growth of the broadband wireless access market, similar to the impact Wi-Fi had on the Wireless LAN market. Standards will free equipment makers to innovate in areas where they excel, producing enhanced price/performance gains. By being among the first to deliver low-cost WIMAX-compliant systems based on Intel’s silicon, we believe we will extend our leadership of this growing industry.”

Guidance

The Company expects third quarter revenues to range between $30 million and $34 million.  Net loss per share is expected to range between 8 cents and 6 cents per share, while non-GAAP net loss per share excluding amortizations of current technology and deferred stock compensation and additional InnoWave’s acquisition related expenses would range between 6 cents and 4 cents.

The Company will hold a teleconference today, July 30, 2003, at 9:00 a.m. EDT to discuss the quarter's results.  To participate in the call, please dial (877) 691-0879 in the U.S., or (973) 582-2745 (internationally), approximately five minutes prior to the scheduled call start time.  The call will also be available live as a Webcast on www.kcsa.com and www.alvarion.com, where it will be archived and available for replay for 30 days. A replay of the call can also be accessed via telephone from 11:00 a.m. EDT on July 30, 2003 through 11:59 p.m. on August 5, 2003 by calling (877) 519-4471 in the U.S., or (973) 341-3080 internationally, and entering the following access code: 4049543.

About Alvarion

Alvarion is dedicated to delivering seamless wireless broadband networking infrastructure to carriers, ISPs and private network operators, in order to leverage their broadband opportunities into sustainable profits. Alvarion offers premier wireless broadband solutions for access in the last mile, backhauling connection to the backbone and private network connectivity. Featuring the industry's most extensive range of products and international support, Alvarion is a pioneering leader of the converged wireless broadband network. With over 1.5 million units deployed in 120 countries worldwide, Alvarion provides secure rich-media networks for business or residential Internet access, corporate VPNs, cellular base station feeding, community interconnection, public safety connectivity and extended Hotspots.

Having recently acquired InnoWave's wideband access portfolio and expertise, Alvarion provides a complete wireless solution that supports a wide range of frequency bands, customer profiles and service types.

This press release may contain 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: 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 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.

Use of Non-GAAP Financial Information

To supplement its consolidated financial statements presented on a GAAP basis, Alvarion may use non-GAAP measures of operating results, net income/loss and income/loss per share, which are adjusted to exclude certain costs, expenses, gains and losses that it believes are appropriate to enhance the overall understanding of its financial performance. These adjustments to Alvarion’s GAAP results are made with the intent of providing both management and investors a supplemental understanding of its underlying operational results and trends. Adjusted non-GAAP results are among the primary indicators management uses as a basis for planning and forecasting Alvarion’s business. The presentation of this additional information is not meant to be considered in isolation or as a substitute for Alvarion’s financial results prepared in accordance with generally accepted accounting principles in the United States.

You may register to receive Alvarion’s future press releases or to download a complete Digital Investor Kit™ including press releases, regulatory filings and corporate materials by clicking on the “Digital Investor Kit™” icon at www.kcsa.com.

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