Exhibit
1.
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Description
Press release on Alvarion® Reports Q2 2012 Results Dated August 1, 2012
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Sequential Page Number
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ALVARION LTD.
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Date: August 1 ,2012
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By:
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/s/ Lior Shemesh | |
Name: Lior Shemesh | |||
Title: CFO |
Investor Contacts:
Lior Shemesh, CFO
+972.3.767.4333
+1.760.685.2007
lior.shemesh@alvarion.com
Elana Holzman, VP IR
+972.3.645.7892
elana.holzman@alvarion.com
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ALVARION LTD. & ITS SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands (except per share data)
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Six
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Six
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Three
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Three
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Three
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||||||||||||||||
Months Ended
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Months Ended
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Months Ended
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Months Ended
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Months Ended
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||||||||||||||||
June 30,
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June 30,
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June 30,
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June 30,
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March 31,
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||||||||||||||||
2012
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2011
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2012
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2011
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2012
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Sales
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$ | 67,120 | $ | 101,862 | $ | 33,810 | $ | 55,361 | $ | 33,310 | ||||||||||
Cost of sales
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41,251 | 68,059 | 21,329 | 36,073 | 19,922 | |||||||||||||||
Gross profit
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25,869 | 33,803 | 12,481 | 19,288 | 13,388 | |||||||||||||||
Operating expenses:
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||||||||||||||||||||
Research and development, net
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14,402 | 14,218 | 7,527 | 5,910 | 6,875 | |||||||||||||||
Selling and marketing
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16,748 | 19,436 | 8,074 | 9,670 | 8,674 | |||||||||||||||
General and administrative
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6,022 | 7,237 | 2,762 | 3,391 | 3,260 | |||||||||||||||
Amortization of intangible assets
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1,118 | - | 559 | - | 559 | |||||||||||||||
Other charges (*)
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3,161 | 7,128 | 3,161 | - | - | |||||||||||||||
Acquisition related expenses (**)
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574 | - | 285 | - | 289 | |||||||||||||||
Total Operating expenses
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42,025 | 48,019 | 22,368 | 18,971 | 19,657 | |||||||||||||||
Operating income (loss)
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(16,156 | ) | (14,216 | ) | (9,887 | ) | 317 | (6,269 | ) | |||||||||||
Financial expenses, net
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(1,446 | ) | 83 | (849 | ) | 2 | (597 | ) | ||||||||||||
Net income (loss) before Tax
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(17,602 | ) | (14,133 | ) | (10,736 | ) | 319 | (6,866 | ) | |||||||||||
Income Tax
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- | - | - | - | - | |||||||||||||||
Net income (loss)
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(17,602 | ) | (14,133 | ) | (10,736 | ) | 319 | (6,866 | ) | |||||||||||
Basic net earnings (loss) per share:
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||||||||||||||||||||
(0.28 | ) | (0.23 | ) | (0.17 | ) | 0.01 | (0.11 | ) | ||||||||||||
Weighted average number of shares used in computing basic net earnings (loss) per share
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62,417 | 62,283 | 62,442 | 62,295 | 62,392 | |||||||||||||||
Diluted net earnings (loss) per share:
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||||||||||||||||||||
(0.28 | ) | (0.23 | ) | (0.17 | ) | 0.01 | (0.11 | ) | ||||||||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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62,417 | 62,283 | 62,442 | 62,385 | 62,392 |
(*) Results of the organizational change and other.
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||||||||
(**)Charges related to acquisition of Wavion in November 2011.
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ALVARION LTD. & ITS SUBSIDIARIES
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RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME
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U.S. dollars in thousands (except per share data)
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Three
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Three
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||||||||||||||||
Months Ended
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Months Ended
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||||||||||||||||
June
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March 31,
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||||||||||||||||
2012
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2012
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GAAP
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Adjustments
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Non-GAAP
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Non-GAAP
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Sales
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$ | 33,810 | $ | - | $ | 33,810 | $ | 33,310 | |||||||||
Cost of sales
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21,329 | (155 | ) |
(a)
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21,174 | 19,830 | |||||||||||
Gross profit
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12,481 | 155 | 12,636 | 13,480 | |||||||||||||
Operating expenses:
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Research and development, net
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7,527 | (258 | ) |
(a)
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7,269 | 6,740 | |||||||||||
Selling and marketing
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8,074 | (268 | ) |
(a)
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7,806 | 8,480 | |||||||||||
General and administrative
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2,762 | (262 | ) |
(a)
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2,500 | 3,056 | |||||||||||
Amortization of intangible assets
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559 | (559 | ) |
(b)
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- | - | |||||||||||
Other charges
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3,161 | (3,161 | ) |
(c)
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- | - | |||||||||||
Acquisition related expenses
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285 | (285 | ) |
(d)
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- | - | |||||||||||
Total Operating expenses
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22,368 | (4,793 | ) | 17,575 | 18,276 | ||||||||||||
Operating loss
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(9,887 | ) | 4,948 | (4,939 | ) | (4,796 | ) | ||||||||||
Financial expenses, net
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(849 | ) | - | (849 | ) | (597 | ) | ||||||||||
Net loss before Tax
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(10,736 | ) | 4,948 | (5,788 | ) | (5,393 | ) | ||||||||||
Income Tax
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- | - | - | - | |||||||||||||
Net loss
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(10,736 | ) | 4,948 | (5,788 | ) | (5,393 | ) | ||||||||||
Basic net loss per share
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$ | (0.17 | ) | $ | (0.09 | ) | $ | (0.09 | ) | ||||||||
Weighted average number of shares used in computing basic net loss per share
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62,442 | 62,442 | 62,392 | ||||||||||||||
Diluted net loss per share
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$ | (0.17 | ) | $ | (0.09 | ) | $ | (0.09 | ) | ||||||||
Weighted average number of shares used in computing diluted net loss per share
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62,442 | 62,442 | 62,392 |
(a) The effect of stock-based compensation.
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(b) The effect of amortization of purchased intangibles.
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(c) Results of the organizational change and other.
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(d) Charges related to acquisition of Wavion in November 2011.
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ALVARION LTD. & ITS SUBSIDIARIES
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DISCLOSURE OF NON-US GAAP NET INCOME
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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
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U.S. dollars in thousands (except per share data)
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||||||||||||||||||||
Six
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Six
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Three
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Three
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Three
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||||||||||||||||
Months Ended
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Months Ended
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Months Ended
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Months Ended
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Months Ended
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||||||||||||||||
June 30,
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June 30,
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June 30,
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June 30,
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March 31,
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2012
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2011
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2012
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2011
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2012
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Net income (loss) according to US GAAP
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$ | (17,602 | ) | $ | (14,133 | ) | $ | (10,736 | ) | $ | 319 | $ | (6,866 | ) | ||||||
Amortization of intangible assets
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1,118 | - | 559 | - | 559 | |||||||||||||||
Stock based compensation expenses related to ASC 718
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1,568 | 2,014 | 943 | 1,187 | 625 | |||||||||||||||
Other charges (*)
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3,161 | 7,128 | 3,161 | - | - | |||||||||||||||
Acquisition related expenses (**)
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574 | - | 285 | - | 289 | |||||||||||||||
Net Income (loss) excluding amortization of acquired intangibles, stock
based compensation and other expenses
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$ | (11,181 | ) | $ | (4,991 | ) | $ | (5,788 | ) | $ | 1,506 | $ | (5,393 | ) | ||||||
Basic net earnings (loss) per share excluding amortization of acquired
intangibles, stock based compensation and restructuring expenses
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$ | (0.18 | ) | $ | (0.08 | ) | $ | (0.09 | ) | $ | 0.02 | $ | (0.09 | ) | ||||||
Weighted average number of shares used in computing basic net
earnings (loss) per share
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62,417 | 62,283 | 62,442 | 62,295 | 62,392 | |||||||||||||||
Diluted net earnings (loss) per share excluding amortization of acquired
intangibles, stock based compensation and other expenses
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$ | (0.18 | ) | $ | (0.08 | ) | $ | (0.09 | ) | $ | 0.02 | $ | (0.09 | ) | ||||||
Weighted average number of shares used in computing diluted net earnings (loss) per share
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62,417 | 62,283 | 62,442 | 63,888 | 62,392 |
(*) Results of the organizational change and other.
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||||||
(**)Charges related to acquisition of Wavion in November 2011.
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ALVARION LTD. & ITS SUBSIDIARIES
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CONDENSED CONSOLIDATED BALANCE SHEETS
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U.S. dollars in thousands
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June 30,
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March 31,
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|||||||
2012
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2012
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ASSETS
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Cash, cash equivalents, short-term and long-term investments
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$ | 31,968 | $ | 51,569 | ||||
Trade receivables
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41,477 | 45,532 | ||||||
Other accounts receivable
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9,657 | 9,407 | ||||||
Inventories
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37,579 | 37,600 | ||||||
LONG TERM Trade receivables
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5,470 | 4,452 | ||||||
LONG TERM Prepaid expenses
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- | 68 | ||||||
PROPERTY AND EQUIPMENT, NET
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8,763 | 9,601 | ||||||
GOODWILL AND INTANGIBLE ASSETS, NET
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32,214 | 32,773 | ||||||
TOTAL ASSETS
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$ | 167,128 | $ | 191,002 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
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Current maturities of Long term loan
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$ | 7,545 | $ | 13,524 | ||||
Trade payables
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29,685 | 32,139 | ||||||
Other accounts payable and accrued expenses
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37,792 | 39,577 | ||||||
Total current liabilities
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75,022 | 85,240 | ||||||
Long term Accrued expenses
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74 | 129 | ||||||
Long term employees liabilities
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618 | 896 | ||||||
Long term liabilities others
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6,661 | 7,204 | ||||||
Long term loan
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14,677 | 15,781 | ||||||
Total long term liabilities
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22,030 | 24,010 | ||||||
TOTAL LIABILITIES
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97,052 | 109,250 | ||||||
SHAREHOLDERS' EQUITY
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70,076 | 81,752 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 167,128 | $ | 191,002 |
ALVARION LTD.& ITS SUBSIDIARIES
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Consolidated Statement of Cash Flows
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U.S. dollars in thousands
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Three
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Months ended
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June 30, 2012
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Cash flows from operating activities:
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Net income
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$ | (10,736 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities:
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Depreciation
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995 | |||
Amortization of intangibles assets
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559 | |||
Capital loss on disposal of property and equipment
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387 | |||
Stock based compensation expenses ASC 718
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944 | |||
Decrease in trade receivables
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4,055 | |||
Increase in other accounts receivable and prepaid expenses
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(456 | ) | ||
Decrease in inventories
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21 | |||
Increase in long term trade receivable
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(1,018 | ) | ||
Decrease in long term prepaid expenses
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68 | |||
Decrease in trade payables
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(2,454 | ) | ||
Decrease in other accounts payables and accrued expenses
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(745 | ) | ||
Decrease in long term accreued expenses
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(55 | ) | ||
Decrease in long term employees liabilities
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(278 | ) | ||
Decrease in long term liabilities
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(543 | ) | ||
Net cash used in operating activities
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(9,256 | ) | ||
Cash flows from investing activities:
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Purchase of fixed assets
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(544 | ) | ||
Payment related to acquisition of Wavion
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(2,718 | ) | ||
Net cash used in investing activities
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(3,262 | ) | ||
Cash flows from financing activities:
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Proceeds from exercise of employees' stock options
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- | |||
Repayment of long term loan
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(7,083 | ) | ||
Net cash used in financing activities
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(7,083 | ) | ||
Decrease in cash, cash equivalents, short-term and long-term investments
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(19,601 | ) | ||
Cash, cash equivalents, short-term and long-term investments at the beginning of the period
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51,569 | |||
Cash, cash equivalents, short-term and long-term investments at the end of the period
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$ | 31,968 |