Airvana, Inc. (NASDAQ: AIRV), a leading provider of mobile broadband network infrastructure products, today announced preliminary financial results for the first quarter ending April 4, 2010.
Airvana expects that GAAP Revenue for the first quarter will be in a range of $2.5 million to $3.0 million, compared with $9 million for the first quarter of 2009. In addition, the Company expects first quarter 2010 Deferred Revenue to increase by $57 million to $60 million to $233 million to $236 million, from $176 million as of January 3, 2010.
Non-GAAP Product and Service Billings (“Billings”) are expected to be in the range of $60 million to $63 million, compared with Pro Forma Billings of $34 million in the first quarter of 2009. During the first quarter of 2010, Airvana has experienced stronger than anticipated demand for its EV-DO products, while shipments of its femtocell products have been slower than expected.
As previously disclosed, the Company’s principal EV-DO customer, Nortel Networks, Inc., entered bankruptcy proceedings in January 2009 as a result of which Telefon AB L.M. Ericsson acquired Nortel’s CDMA business in November 2009. The Company expects that approximately half of its Billings for the first quarter of 2010 will be attributable to shipments made by Ericsson to its customers in December 2009, following the acquisition from Nortel. Airvana has not changed its projection of $200 million in total Billings for full-year 2010, as set forth in its Proxy Statement dated March 11, 2010. Higher sales of EV-DO products are expected to be offset by continued weakness in sales of femtocell products, resulting in EV-DO sales accounting for a larger proportion of total Billings in 2010 than previously anticipated.
Separately, Airvana announced today that the Special Committee of the Board of Directors has determined not to modify in any respect or to withdraw its recommendation that the proposed merger with 72 Mobile Holdings, LLC, is fair to, advisable and in the best interest of the Company and its unaffiliated stockholders.