(NASDAQ: ALVR), a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, today announced that it expects revenues for the third quarter of 2012 to be approximately $27 million, below the guidance previously provided of revenues between $31 million and $39 million. The shortfall in revenues was the result of significant shipments postponed from the current quarter to the fourth quarter of 2012, primarily from two Carrier Licensed customers, one based in Latin America and another in Central Eastern Europe; and a significant order delayed from the current quarter to the fourth quarter of 2012 from a Carrier Wi-Fi customer based in Africa. In addition, the company will record a one-time charge of $2.5 million following the shutdown of U.S.-based Main Street Broadband.
Based on these lower estimated revenues and the accounts receivables write-off, non-GAAP net loss per diluted share for the third quarter of 2012 is expected to be approximately ($0.13), compared to the company’s previous expectation that non-GAAP per share results would range between a loss of ($0.06) and a profit of $0.02. GAAP net loss per share is expected to be approximately ($0.15), compared to the company’s previous guidance of a per share loss between ($0.08) and breakeven, before any one-time charges.
“Despite this unexpected setback in achieving our financial targets for the third quarter, we believe that the company’s turnaround plan remains on track and that we will reach at least breakeven operating cash flow and modest profitability by yearend,” said Hezi Lapid, President and CEO of Alvarion. “Notwithstanding the delay in shipments, our Carrier Licensed business is performing well, and we are particularly pleased with the market acceptance of the newest addition to our licensed offering – the BreezeCOMPACT. In just five months since the product was launched, we received orders valued at over $10 million. We are also seeing traction for our Carrier Wi-Fi solution with recent deals from additional Tier 1 carriers in Asia Pacific.”