zk1211510.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  May 2012
 
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.
Financial Results For Q1 2012
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: May 17th, 2012    
By:
/s/ Marc Borenstein  
    Name: Marc Borenstein  
    Title:   General Counsel  
       
 
 
3

 

EXHIBIT 1

Investor Contacts:
 
Lior Shemesh, CFO
+972.3.767.4333
+1.760.685.2007
lior.shemesh@alvarion.com
   
 
Claudia Gatlin
+1.212.830.9080
claudia.gatlin@alvarion.com
   
 
Alvarion® Reports Q1 2012 Results
 
Tel Aviv, Israel, May 16, 2012 — Alvarion Ltd. (NASDAQ:ALVR) a provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, today announced its financial results for the first quarter of 2012.

Q1 Highlights:

·           Revenues of $33.3 million, a 19% sequential decrease
·           Gross margin of 40.2%, an increase from gross margin of 38.3% in Q4 of 2011
·           GAAP net loss of ($0.11) per share; non-GAAP net loss of ($0.09) per share
·           The company is now referring to its lines of business as follows:
 
-
Carrier licensed solutions (access solutions in licensed frequencies primarily based on WiMAX), approximately 50% of total revenues in Q1
 
-
Vertical solutions (mainly license-exempt access solutions for non-carrier private networks such as municipalities and enterprises), approximately 30% of total revenues in Q1
 
-
Carrier unlicensed solutions (solutions for access, cellular offload, and in-building coverage for mobile carrier networks using license-exempt frequencies), approximately 20% of total revenues in Q1

First Quarter 2012 Results

In the first quarter of 2012, revenues were $33.3 million, a decrease of 19.2% from $41.2 million in the fourth quarter of 2011, and a decrease of 28.4% from $46.5 million in the first quarter of 2011.

GAAP net loss in the first quarter of 2012 was ($6.9) million, or ($0.11) per share. This compares to a net loss of ($12.2) million, or ($0.20) per share in the fourth quarter of 2011, which includes charges of approximately $9.3 million related to the Wavion acquisition and integration plan.  GAAP net loss in the first quarter of 2011 was ($14.5) million, or ($0.23) per share, including restructuring and other charges of approximately $7.1 million related mainly to employee termination expenses and vacating office space.
 
On a non-GAAP basis, excluding stock-based compensation and other charges, the company reported a net loss of ($5.4) million, or ($0.09) per share, compared with a non-GAAP net loss of ($2.4) million, or ($0.04) per share, in the fourth quarter of 2011, and a non-GAAP net loss of ($6.5) million, or ($0.10) per share, in the first quarter of 2011.
 
 
4

 
 
Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP for the first quarter of 2012 and the comparative periods.
 
Cash used in operations in the first quarter of 2012 was $11.2 million.  As of March 31, 2012, cash, cash equivalents and investments totaled $51.6 million.

Management Comments

“We continue to be pleased by the revenue growth represented by products for license-exempt frequencies acquired in the Wavion transaction,” said Hezi Lapid, President and Chief Executive Officer of Alvarion. “Demand from both carrier and private network customers remains strong and, after only one full quarter of contribution, these products are on track to exceed our expectations this year.

“We also expect to benefit from a growing demand from targeted vertical markets once our new products for this segment are introduced. Meanwhile, we are doing our best to mitigate the impact of lower than expected sales of the older products,” continued Mr. Lapid.

“Our revenues from RAN solutions in licensed frequencies were slightly lower than expected during the first quarter. We are exploring a variety of options for the carrier licensed business, emphasizing that we believe these are significant and valuable assets. Every alternative we are evaluating will provide continuity of products and services to our customer base.

“With a clear mandate from the board to improve execution and enhance shareholder value, we are also moving swiftly to make necessary adjustments in order to generate positive cash flow from operations. We expect revenue growth and improving profitability in the combined unlicensed business, and we are aiming for a significant reduction in cash used in operating activities in Q3, followed by at least breakeven operating cash flow in Q4. We will continue updating our investors in the near future about refinements to our plans and performance targets,” concluded Mr. Lapid.

Guidance

Management believes revenues in the second quarter of 2012 will be in the range of $31 million to $38 million. Depending on shipment volume and mix, second quarter non-GAAP per share results are expected to range between a loss of ($0.06) and ($0.13). The GAAP per share results are expected to range between a loss of ($0.08) and ($0.15), before any one-time charges.

Alvarion management will host a conference call today, May 16, 2012 at 9:00 a.m. Eastern time to discuss first quarter 2012 results and other matters.

Please call the following dial in number to participate:
USA: (800) 230-1092; International: +1(612) 234-9960.

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. EDT on May 16, 2012 through 11:59 a.m. EDT on June 16, 2012.
 
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: 243645.
 
 
5

 

About Alvarion
Alvarion Ltd. (NASDAQ:ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (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: our failure to fully implement our 2012 business plan, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, , continued delays in 4G license allocation in certain countries; the failure of the products for the 4G market to develop as anticipated; Alvarion’s inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of the Alvarion’s strategic initiatives to enable Alvarion to more effectively capitalize on market opportunities as anticipated; the potential incurrence by Alvarion of unknown liabilities of Wavion; the failure of Alvarion to effectively integrate the business and technology of Wavion into that of Alvarion and Alvarion’s products and realize the expected synergies from the acquisition; the failure of Alvarion to meet financial covenants underlying loans granted to us; the failure of Alvarion to gain market acceptance for the Wavion products as contemplated; the failure of the markets for Wavion’s and Alvarion’s products to grow as anticipated; 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 by contacting Sivan Farfuri, Sivan.farfuri@alvarion.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it or +972.3.767.4333. Please see the Investor section of the Alvarion website for more information: http://www.alvarion.com/index.php/en/investors
 
Alvarion®, its logo and certain names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd. in certain jurisdictions. All other names are or may be the trademarks 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
       
   
Months Ended
   
Months Ended
   
Months Ended
   
Year Ended
 
   
March 31,
   
March 31,
   
December 31,
   
December 31,
 
   
2012
   
2011
   
2011
   
2011
 
                         
Sales
  $ 33,310     $ 46,501     $ 41,219     $ 190,037  
                                 
Cost of sales
    19,922       31,986       25,419       121,435  
                                 
Inventory write-off related to bankruptcy of a customer
    -       -       -       7,144  
                                 
Gross profit
    13,388       14,515       15,800       61,458  
                                 
Operating expenses:
                               
Research and development, net
    6,875       8,308       7,353       27,964  
Selling and marketing
    8,674       9,766       9,200       37,576  
General and administrative
    3,260       3,846       3,209       13,877  
Amortization of  intangible assets
    559       -       186       186  
Other charges (*)
    -       7,128       4,912       12,040  
Acquisition related expenses (**)
    289       -       2,622       2,622  
                                 
Total Operating expenses
    19,657       29,048       27,482       94,265  
                                 
Operating loss
    (6,269 )     (14,533 )     (11,682 )     (32,807 )
                                 
Financial expenses , net
    (597 )     81       (546 )     (1,015 )
                                 
Net loss before Tax
    (6,866 )     (14,452 )     (12,228 )     (33,822 )
                                 
Income Tax
    -       -       -       -  
                                 
Net loss
    (6,866 )     (14,452 )     (12,228 )     (33,822 )
                                 
Basic net loss  per share:
                               
      (0.11 )     (0.23 )     (0.20 )   $ (0.54 )
Weighted average number of shares used in computing basic net loss per share
    62,392       62,271       62,335       62,302  
                                 
Diluted net loss per share:
                               
      (0.11 )     (0.23 )     (0.20 )   $ (0.54 )
                                 
Weighted average number of shares used in computing diluted net loss per share
    62,392       62,271       62,335       62,302  
 
(*)  Results of the organizational change and other.
                               
(**)Charges related to acquisition of Wavion in November 2011.
                               
 
 
7

 
 
ALVARION LTD. & ITS SUBSIDIARIES
RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME
U.S. dollars in thousands (except per share data)
 
   
Three
   
Three
 
   
Months Ended
   
Months Ended
 
   
March 31,
   
December 31,
 
   
2012
   
2011
 
   
GAAP
   
Adjustments
     
Non-GAAP
   
Non-GAAP
 
                           
Sales
  $ 33,310     $ -       $ 33,310     $ 41,219  
                                   
Cost of sales
    19,922       (92 )
(a)
    19,830       23,766  
                                   
Gross profit
    13,388       92         13,480       17,453  
                                   
Operating expenses:
                                 
Research and development, net
    6,875       (135 )
(a)
    6,740       7,312  
Selling and marketing
    8,674       (194 )
(a)
    8,480       8,997  
General and administrative
    3,260       (204 )
(a)
    3,056       3,031  
Amortization of intangible assets
    559       (559 )
(b)
    -       -  
Acquisition related expenses
    289       (289 )
(c)
    -       -  
                                   
Total  Operating expenses
    19,657       (1,381 )       18,276       19,340  
                                   
Operating loss
    (6,269 )     1,473         (4,796 )     (1,887 )
                                   
Financial expenses , net
    (597 )     -         (597 )     (546 )
                                   
Net loss before Tax
    (6,866 )     1,473         (5,393 )     (2,433 )
                                   
Income Tax
    -       -         -       -  
                                   
Net loss
    (6,866 )     1,473         (5,393 )     (2,433 )
                                   
Basic net loss per share
  $ (0.11 )             $ (0.09 )   $ (0.04 )
                                   
Weighted average number of shares used in computing basic net loss per share
    62,392                 62,392       62,335  
                                   
Diluted net loss per share
  $ (0.11 )             $ (0.09 )   $ (0.04 )
                                   
Weighted average number of shares used in computing diluted net loss per share
    62,392                 62,392       62,335  
 
(a)  The effect of stock-based compensation.
                 
                   
(b)  The effect of amortization of purchased intangibles.
             
                   
(c)  Charges related to acquisition of Wavion in November 2011.
         
 
 
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 OTHER CHARGES
 
U.S. dollars in thousands (except per share data)
 
   
Three
   
Three
   
Three
       
   
Months Ended
   
Months Ended
   
Months Ended
   
Year Ended
 
   
March 31,
   
March 31,
   
December 31,
   
December 31,
 
   
2012
   
2011
   
2011
   
2011
 
                         
Net loss  according to US GAAP
  $ (6,866 )   $ (14,452 )   $ (12,228 )   $ (33,822 )
                                 
Amortization of  purchased intangibles and step-down in backlog
    559       -       1,764       1,764  
                                 
Stock based compensation expenses related to ASC 718
    625       827       497       3,153  
                                 
Inventory write-off related to bankruptcy of customer
    -       -       -       7,144  
                                 
Other charges (*)
    -       7,128       4,912       12,040  
                                 
Acquisition related expenses (**)
    289       -       2,622       2,622  
                                 
Net loss  excluding amortization of acquired intangibles, stock
   based compensation and other expenses
  $ (5,393 )   $ (6,497 )   $ (2,433 )   $ (7,099 )
                                 
Basic net loss  per share excluding amortization of acquired
   intangibles, stock based compensation and other expenses
  $ (0.09 )   $ (0.10 )   $ (0.04 )   $ (0.11 )
                                 
Weighted average number of shares used in computing basic net loss per share
    62,392       62,271       62,335       62,302  
                                 
Diluted net loss per share excluding amortization of acquired
   intangibles, stock based compensation and other expenses
  $ (0.09 )   $ (0.10 )   $ (0.04 )   $ (0.11 )
                                 
Weighted average number of shares used in computing diluted net loss per share
    62,392       62,271       62,335       62,302  
 
(*)    Results of the organizational change and other.
                   
(**) Charges related to acquisition of Wavion in November 2011.
                   
 
 
9

 
 
ALVARION LTD. & ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
March 31,
   
December 31,
 
   
2012
   
2011
 
          ASSETS
           
Cash, cash equivalents, short-term and long-term investments
  $ 51,569     $ 64,408  
Trade receivables
    45,532       48,294  
Other accounts receivable
    9,407       7,658  
Inventories
    37,600       36,215  
                 
LONG TERM Trade receivables
    4,452       6,986  
                 
LONG TERM Prepaid expenses
    68       171  
                 
PROPERTY AND EQUIPMENT, NET
    9,601       9,774  
                 
GOODWILL AND INTANGIBLE ASSETS, NET
    32,773       33,332  
                 
TOTAL ASSETS
  $ 191,002     $ 206,838  
                 
          LIABILITIES AND SHAREHOLDERS'  EQUITY
               
                 
CURRENT LIABILITIES
               
                 
Current maturities of Long term loan
  $ 13,524     $ 12,813  
Trade payables
    32,139       36,243  
Other accounts payable and accrued expenses
    39,577       45,441  
                 
Total current liabilities
    85,240       94,497  
                 
Long term Accrued expenses
    129       547  
Long term employees liabilities
    896       1,173  
Long term liabilities others
    7,204       7,280  
Long term loan
    15,781       17,187  
                 
Total long term liabilities
    24,010       26,187  
                 
TOTAL LIABILITIES
    109,250       120,684  
                 
SHAREHOLDERS'  EQUITY
    81,752       86,154  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 191,002     $ 206,838  
 
 
10

 
 
ALVARION LTD.& ITS SUBSIDIARIES
Consolidated Statement of Cash Flows
U.S. dollars in thousands
 
   
Three
 
   
Months ended
 
   
March 31, 2012
 
       
Cash flows from operating activities:
     
Net income
  $ (6,866 )
Adjustments to reconcile net loss to net cash provided by operating activities:
       
Depreciation
    1,083  
Amortization of intangibles assets
    559  
Capital loss on disposal of property and equipment
    19  
Stock based compensation expenses ASC 718
    624  
Decrease in trade receivables
    2,762  
Increase in other accounts receivable and prepaid expenses
    (1,555 )
Increase in inventories
    (1,385 )
Decrease in long term trade receivable
    2,534  
Decrease in long term prepaid expenses
    103  
Decrease in trade payables
    (4,104 )
Decrease in other accounts payables and accrued expenses
    (4,218 )
Decrease in long term accreued expenses
    (418 )
Decrease in long term employees liabilities
    (277 )
Decrease in long term liabilities
    (76 )
Net cash used in operating activities
    (11,215 )
         
Cash flows from investing activities:
       
Purchase of fixed assets
    (929 )
Proceeds from fixed assets
    -  
Net cash used in investing activities
    (929 )
         
Cash flows from financing activities:
       
Proceeds from exercise of employees' stock options
    -  
Repayment of long term loan
    (695 )
Net cash Used in financing activities
    (695 )
         
Decrease in cash, cash equivalents, short-term and long-term investments
    (12,839 )
         
Cash, cash equivalents, short-term and long-term investments at the beginning of the period
    64,408  
Cash, cash equivalents, short-term and long-term investments at the end of the period
  $ 51,569  
 
11