Alvarion (NASDAQ: ALVR), the world's leading provider of WiMax solutions, today reported record revenue of $60.6 million, up 39% from $43.7 million for the corresponding quarter of 2006. The company posted GAAP-based net profit of $621,000 ($0.01 per share), compared with a net loss of $2.4 million ($0.04 per share for the corresponding quarter last year. Thanks to having positive cash flow of $3.6 million, the company now has $125 million in cash.
Alvarion president and CEO Tzvika Friedman said, "BreezeMAX revenue was more than double the level of a year ago. WiMax shipments remained at a high level, and we ended the quarter with over 200 commercial deployments, up from about 170 at the end of the second quarter. Many of these deployments are still in the early stages, and represent significant opportunities for future expansion."
This is clearly good news both for Alvarion and WiMax in general. They keep signing new deals, and with previously signed deals in early stages, they will have many up-sell opportunities. As the dominant WiMax player in emerging markets, maybe Cisco (NASDAQ: CSCO) will rethink its strategy and buy Alvarion after all.
Disclosure: Author holds a position in ALVR. He holds no position in any other stock mentioned as of 10/31/07.Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com.
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