UPDATE 2-Alvarion Q4 loss narrows, shares fall on outlook

* Q4 non-GAAP EPS $0.01, revenue $60.2 million

* Sees Q1 2010 revenue $50 million to $60 million

* Sees Q1 non-GAAP EPS $-0.07 to $0.01

* Shares down 3.9 percent

(Adds analyst comments, share price fall)

By Tova Cohen

TEL AVIV, Feb 3 (BestGrowthStock) – Alvarion Ltd (ALVR.TA: ), an
Israeli maker of WiMax and wireless broadband equipment,
reported a narrower quarterly net loss on Wednesday due to
efficiency measures and forecast a second-half improvement.

But analysts said its first-quarter revenue and profit
outlook as well as its statement that an improvement would come
only in the second half of the year were disappointing.

Its stock was down 3.9 percent at 14.98 shekels at 1257 GMT.

“Their results were more or less in line with expectations
but their guidance was a little bit disappointing,” Gilad Alper,
an analyst at brokerage Excellence Nessuah, told Reuters.

“Alvarion is able to generate decent revenues but is not
making any money. It needs to change its cost base though the
new chief executive gives hope this is something they are
thinking about.”

Alvarion (ALVR.O: ) posted a fourth-quarter net loss of 2
cents per share, compared with an 8 cent loss a year earlier.
Excluding one-time items it posted diluted earnings per share of
1 cent compared with a 1 cent loss a year earlier.

Revenue fell 14 percent to $60.2 million. [nBw027315a]

Analysts expected Alvarion to earn zero cents a share
excluding items on revenue of $59.09 million, according to
Thomson Reuters I/B/E/S.

“Looking ahead, we expect gradual improvement during the
second half of 2010 as the tight credit environment starts to
ease and some of the business catalysts materialise,” President
and CEO Eran Gorev said in a statement.

For the first quarter of 2010 Alvarion forecast revenue of
$50 million to $60 million while non-GAAP per share results are
expected to range between a loss of 7 cents and profit of 1
cent.

Analysts estimate the company will earn zero cents on
revenue of $59.35 million in the first quarter.

Alper, who rates the stock “market perform” with a 15 shekel
price target, said Alvarion must implement even greater
cost-cutting measures.

“Clearly what they did was not enough to generate even
marginal profit,” he said.

He added that Alvarion was a market leader in the WiMax
market — long range high-speed Internet — even though it faced
competition from Chinese vendors, “Alvarion has a nice brand
name in the market.”

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(Editing by Mike Nesbit)

UPDATE 2-Alvarion Q4 loss narrows, shares fall on outlook