Form 6K Report of Foreign Private Issuer


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
 
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of May 2007
 
Commission File Number: 0-30628
 
ALVARION LTD.
(Translation of registrant’s name into English)
 
21A Habarzel Street, Tel Aviv 69710, Israel
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F þ Form 40-F o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes o No þ
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________

 


 
The following are included in this report on Form 6-K:
 
 Exhibit
Description
 Sequential
Page Number 
     
1.
Press release on Alvarion Reports First Quarter 2007 Results dated May 2nd, 2007
4
     
     
 
 
 
 
 
 
 

 
2
 


SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 

                    ALVARION LTD.


Date: May 2nd, 2007                                        By: /s/ Efrat Makov                                
                                  Name: Efrat Makov
 
                      Title:  
 CFO
 
 
 
 
 
 
3
 
 
EXHIBIT 1
 
Contacts
Efrat Makov, CFO                  Esther Loewy, Investor Relations
+972-3-645-6252                      +650-314-2653
+760-517-3187                     +972-3-767-4476
Efrat.makov@alvarion.com               esther.loewy@alvarion.com


FOR IMMEDIATE RELEASE
 
Alvarion Reports First Quarter 2007 Results
 
TEL AVIV, Israel - May 2, 2007 - Alvarion Ltd. (NASDAQ: ALVR), the leading provider of WiMAX and wireless broadband solutions, today announced financial results for the first quarter ended March 31, 2007.
 
Highlights:
 
· 
Positive momentum continued with revenues of $52.1 million;
 
· 
10 customers with over $1 million in revenue each;
 
 · 
Non-GAAP EPS of $0.02; GAAP loss per share of ($0.01);
 
·  
Gross margin of 51%;
 
·  
Shipped BreezeMAX 802.16e platform to over 20 customers;
 
·  
Record BreezeMAX revenues of $25 million;
 
In the first quarter of 2007, revenues increased to $52.1 million, a 4% increase from $50.3 million in the fourth quarter of 2006 and a 19% increase from $43.6 million in the first quarter of 2006. BreezeMAX revenue in Q1 2007 was approximately $25 million, 48% of total revenue, compared to about $24 million in Q4.
 
GAAP net loss in the first quarter of 2007 was ($623,000), or ($0.01) per share, which included income from discontinued operations of $436,000. Net loss from continuing operations was ($1.1) million or ($0.02) loss per share, compared to a loss from continuing operations of ($282,000), or ($0.00) per share in Q4. The increased loss was mainly a result of additional investment in WiMAX and the effects of currency fluctuations. Loss from continuing operations in the first quarter of 2006 was ($574,000), or ($0.01) per share.
 
Excluding discontinued operations, amortization of acquired intangibles and deferred stock compensation, on a non-GAAP basis, the company reported a net profit of $1.3
 

 
4

million, or $0.02 per diluted share, compared with a non-GAAP net profit of $2.1 million, or $0.03 per diluted share in the fourth quarter of 2006, and a non-GAAP net profit of $1.5 million, or $0.02 per diluted share in Q1 2006.
 
The company generated positive cash flow from operating activities of approximately $4 million during Q1 2007. Cash reserves as of March 31, 2007 totaled approximately $120 million, up from $118.4 million in the previous quarter.

For supplemental information to facilitate evaluation of the impact of non-cash charges and comparisons with historical results of continuing and discontinued operations, see the attached table showing the detailed reconciliation of GAAP to non-GAAP results for Q1 2007 and the comparative quarters.
 
Comments from Management

“We are pleased by the momentum of Q1”, said Tzvika Friedman, President and CEO of Alvarion. “Strong BreezeMAX shipments of approximately $33 million and a sequential revenue increase during a quarter that is typically affected by seasonal weakness, show the impact of the growth drivers we’ve been pointing to, as well as good execution by our team.

“The demand for WiMAX, particularly in emerging markets, is growing and at the end of Q1, we had more than 150 commercial deployments among satisfied customers generating revenue from WiMAX services. We also had about 220 active trials, many of them with operators interested in deploying mobile WiMAX. Our 4Motion solution is among the most advanced in the industry and we achieved several important technical milestones during Q1. These included initial interoperability with numerous devices using embedded chipsets from a variety of vendors in preparation for certification of 802.16e systems. We also demonstrated mobile TV over WiMAX at CTIA and, together with Intel, we conducted the first live demo of Matrix B MIMO using their new WiMAX chip for the Centrino platform.”

Q2 2007 Guidance
 
The company’s revenue guidance for Q2 2007 is $53 to $57 million. Based on this revenue range, non-GAAP per share results from continuing operations are expected to range between $0.00 and $0.03. GAAP per share results are expected to range between ($0.00) and $(0.03).
 
Alvarion’s management will host a conference call today, May 2, at 9:00 a.m. Eastern time to discuss the quarter. To participate in the call, please dial one of the following numbers approximately five minutes prior to the scheduled start time: USA: (612) 332-0637, International: +1 (612) 332-0637.
 

 
5

The public is invited to listen to the live webcast of the conference call. For details please visit Alvarion’s website at www.alvarion.com. An archive of the on-line broadcast will be available on the website. A replay of the call will be available from 11:45 a.m. ET on May 2, 2007 through 11:59 p.m. ET on May 9, 2007. To access the replay, please call USA: (800) 475-6701, International: +1-(320) 365-3844. To access the replay, users will need to enter the following code: 869335.

About Alvarion
With more than 3 million units deployed in 150 countries, Alvarion (www.alvarion.com) is the world’s leading provider of innovative wireless broadband network solutions enabling Personal Broadband to improve lifestyles and productivity with portable and mobile data, VoIP video and other services.

Alvarion is leading the market to Open WiMAX solutions with the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion’s products enable the delivery of personal mobile broadband, business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, hotspot coverage extension, community interconnection, public safety communications, and mobile voice and data.
 
As a wireless broadband pioneer, Alvarion has been driving and delivering innovations for over 10 years from core technology developments to creating and promoting industry standards. Leveraging its key roles in the IEEE and HiperMAN standards committees and experience in deploying OFDM-based systems, the Company's prominent work in the WiMAX Forum is focused on increasing the widespread adoption of standards-based products in the wireless broadband market and leading the entire industry to Open WiMAX solutions.
 
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the failure of the market for WIMAX products to develop as anticipated; Alvarion’s inability to capture market share in the expected growth of the WIMAX market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission.
 
 

6

 
Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release.
 
You may request Alvarion's future press releases or a complete Investor Kit by contacting Esther Loewy, Investor Relations: esther.loewy@alvarion.com or +972.3.767.4476.
 

     
Three Months Ended
March 31, 
    
Three Months Ended
March 31, 
    
Three Months
Ended
December 31, 
    
Three Months Ended
December 31, 
  
     
2007 
    
2006 
    
2006 
    
2006 
  
Sales
  
$
52,077
  
$
43,623
  
$
50,267
  
$
181,594
  
                           
Cost of sales
    
25,801
    
22,086
    
24,308
    
89,882
  
                           
Gross profit
    
26,276
    
21,537
    
25,959
    
91,712
  
                           
Operating expenses:
                          
Research and development, net
    
11,774
    
8,761
    
10,868
    
38,807
  
Selling and marketing
    
12,64
    
40,273
    
12,589
    
44,929
  
General and administrative
    
3,913
    
3,076
    
3,412
    
13,680
  
Amortization of intangible assets
    
636
    
669
    
669
    
2,676
  
                           
Total Operating expenses
    
28,967
    
22,779
    
27,538
    
100,092
  
                           
Operating loss
    
(2,691
)
  
(1,242
)
  
(1,579
)
  
(8,380
)
                           
Financial income, net
    
1,632
    
668
    
1,297
    
3,796
  
 
                          
Loss from continuing operations
    
(1,059
)
  
(574
)
  
(282
)
  
(4,584
)
                           
Income (loss) from
                          
  discontinued operations, net
    
436
    
(4,394
)
  
(5,961
)
  
(36,167
)
                           
Net loss
  
$
(623
)
$
(4,968
)
$
(6,243
)
$
(40,751
)
                           
Basic and Diluted net
                          
  earnings (loss) per share:
                          
  Continuing operations
  
$
(0.02
)
$
(0.01
)
$
(0.00
)
$
(0.08
)
  Discontinued operations
  
$
0.01
  
$
(0.07
)
$
(0.10
)
$
(0.59
)
  Total
  
$
(0.01
)
$
(0.08
)
$
(0.10
)
$
(0.67
)
                           
Weighted average number of
                          
  shares used in computing
                          
  basic and diluted net
                          
  earnings (loss) per share
    
61,767
    
60,192
    
61,266
    
60,841
  
 
(*) Results of Cellular Mobile Unit that was sold in November 2006, are classified as discontinued operations and are not included in the results from continuing operations for 2007 and 2006.
 
 
 
7
 

ALVARION LTD.& ITS SUBSIDIARIES
RECONCILIATION BETWEEN GAAP TO NON-GAAP STATEMENT OF INCOME (*)
U.S. dollars in thousands (except per share data)

     
Three Months Ended
March 31, 2007 
          
Three Months Ended
December 31, 2007  
  
     
GAAP 
    
Adjustments 
          
Non-GAAP 
    
Non-GAAP 
  
Sales
  
$
52,077
  
$
-
        
$
52,077
  
$
50,267
  
                                 
Cost of sales
    
25,801
    
(134
)
  
(a
)
  
25,667
    
24,173
  
Gross profit
    
26,276
    
134
          
26,410
    
26,094
  
                                 
Operating expenses:
                                
 
                                
Research and development, net
    
11,774
    
(393
)
  
(a
)
  
11,381
    
10,474
  
Selling and marketing
    
12,644
    
(399
)
  
(a
)
  
12,245
    
12,199
  
General and administrative
    
3,913
    
(827
)
  
(a
)
  
3,086
    
2,632
  
Amortization of intangible assets
    
636
    
(636
)
  
(b
)
  
-
   
-
  
Total operating expenses
    
28,967
    
(2,255
)
        
26,712
    
25,305
  
                                 
Operating profit (loss)
    
(2,691
)
  
2,389
          
(302
)
  
789
  
                                 
Financial income, net
    
1,632
    
-
          
1,632
    
1,297
  
 
                                
Income (loss) from continuing operations(a)
    
(1,059
)
  
2,389
          
1,330
    
2,086
  
 
                                
Income from discontinued operations, net
    
436
    
(436
)
        
-
   
-
  
                                 
Net income ( loss)
  
$
(623
)
$
1,953
        
$
1,330
  
$
2,086
  
                                 
Basic net earnings (loss) per share:
                                
 
                                
Continuing operations
  
$
(0.02
)
              
0.02
  
$
0.03
  
Discontinued operations
  
$
0.01
                          
Total
  
$
(0.01
)
                        
                                 
Weighted average number of shares used in
                               
  computing basic net earnings (loss) per share
    
61,767
                
61,767
    
61,266
  
                                 
Diluted net earnings (loss) per share:
                                
 
                                
Continuing operations
  
$
(0.02
)
            
$
0.02
  
$
0.03
  
Discontinued operations
  
$
0.01
                          
Total
  
$
(0.01
)
                        
                                 
Weighted average number of shares used in
                                
  computing diluted net earnings (loss) per share
    
61,767
    
 
          
63,942
    
63,865
  
 

(*) Results of Cellular Mobile Unit that was sold in November 2006, are classified as discontinued operations and are not included in the results from continuing operations for 2007 and 2006.

(a) The effect of stock-based compensation. The Company adopted the provisions of Statement of Financial Accounting Standards No. 123R, "Share-Based Payment" on January 1, 2006 using the modified-
prospective transition method.

(b) The effect of amortization of intangible assets.
 
 
8
 

DISCLOSURE OF NON-US GAAP NET INCOME

FOR COMPARATIVE PURPOSES NET INCOME AND EARNINGS PER SHARE FROM
CONTINUING OPERATIONS EXCLUDING AMORTIZATION OF ACQUIRED INTANGIBLES,
DEFERRED STOCK COMPENSATION AND INCOME (LOSS) FROM DISCONTINUED
OPERATIONS

U.S. dollars in thousands (except per share data)
 

     
Three Months Ended
March 31,
    
Three Months Ended
March 31,
    
Three Months Ended
March 31,
  
Year Ended
December 31,
  
 
  
  2007
  
  2006 
  
  2006 
  
  2006 
  
Net loss according to US GAAP
  
$
(623
)
$
(4,968
)
$
(6,243
)
$
(40,751
)
 
                          
Amortization of acquired current
                          
  technology and customer relationships
    
636
    
669
    
669
    
2,676
  
                           
Amortization of deferred stock compensation
    
1,753
    
1,424
    
1,699
    
6,450
  
                           
Loss (income) from discontinued Operations
    
(436
)
  
4,394
    
5,961
    
36,167
  
 
                          
Net Income from continuing operations excluding
                          
  amortization of acquired intangibles, deferred stock
                          
  compensation and income (loss) from discontinued operations
  
$
1,330
  
$
1,519
  
$
2,086
  
$
4,542
  
 
                          
Basic net earnings per share from continuing
                          
  operations excluding amortization of acquired
                          
  intangibles, deferred stock compensation and income (loss)
                          
  from discontinued operations
  
$
0.02
  
$
0.03
  
$
0.03
  
$
0.07
  
                           
Weighted average number of shares
                          
  used in computing basic net earnings per share
    
61,767
    
60,192
    
61,266
    
60,841
  
 
                          
Diluted net earnings per share from continuing
                          
  operations excluding amortization of acquired
                          
  intangibles, deferred stock compensation and income (loss)
                          
  from discontinued operations
  
$
0.02
  
$
0.02
  
$
0.03
  
$
0.07
  
                           
Weighted average number of shares used in computing
                          
  diluted net earnings per share
    
63,942
    
64,051
    
63,865
    
63,526
  
 
 
 
 
9
 

ALVARION LTD.& ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

   
 March 31, 2007
  
December 31, 2006
  
ASSETS
          
Cash, cash equivalents, short-term and long-
          
  term investments
  
$
119,922
  
$
118,426
  
Trade receivables
    
36,515
    
34,332
  
Other accounts receivable
    
12,088
    
12,474
  
Inventories
    
37,438
    
30,539
  
Severance pay fund
    
9,210
    
8,749
  
               
PROPERTY AND EQUIPMENT, NET
    
10,782
    
10,379
  
               
GOODWILL AND OTHER INTANGIBLE ASSETS
    
60,607
    
61,243
  
               
DISCONTINUED ASSETS
    
3,361
    
3,921
  
               
TOTAL ASSETS
  
$
289,923
  
$
280,063
  
               
LIABILITIES AND SHAREHOLDERS' EQUITY
              
               
CURRENT LIABILITIES
              
               
Trade payables
  
$
27,565
  
$
22,418
  
 
              
Other accounts payable and accrued expenses
    
45,004
    
42,295
  
               
Total current liabilities
    
72,569
    
64,713
  
               
ACCRUED SEVERANCE PAY
    
13,546
    
12,694
  
               
DISCONTINUED LIABILITIES
    
6,754
    
7,355
  
               
TOTAL LIABILITIES
    
92,869
    
84,762
  
               
SHAREHOLDERS' EQUITY
    
197,054
    
195,301
  
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
289,923
  
$
280,063
  
 
 
10
 

ALVARION LTD.& ITS SUBSIDIARIES
      
Consolidated Statements of Cash Flows
     
U.S. dollars in thousands
      
   
Three
  
   
Months ended
  
   
March 31, 2007
  
       
Cash flows from operating activities:
      
Net loss
  
$
(623
)
Adjustments to reconcile net loss to net cash used by operating activities:
        
Depreciation
    
785
  
Amortization of deferred stock compensation
   
1,753
  
Amortization of intangibles assets
    
636
  
Increase in trade receivables
    
(2,183
)
Decrease in other accounts receivable and prepaid expenses
    
367
  
Increase in inventories
    
(6,899
)
Increase in trade payables
    
5,394
  
Increase in other accounts payables and accrued expenses
    
4,434
  
Accrued severance pay, net
    
391
  
Net income from discontinued operations
    
(436
)
Net cash provided by operating activities from continuing operations
    
3,619
  
         
Net cash provided by operating activities from discontinued operations
    
395
  
         
Net cash provided by operating activities
    
4,014
  
         
Cash flows from investing activities:
        
Purchase of fixed assets
    
(1,435
)
Net cash used in investing activities from continuing operations
    
(1,435
)
         
Cash flows from financing activities:
        
Proceeds from exercise of employees' stock options
    
642
  
Repayment of long term liability
    
(1,725
)
Net cash used to financing activities from continuing operations
    
(1,083
)
         
Increase in cash, cash equivalents, short-term and long-term investments from continuing operations
    
1,101
  
Increase in cash, cash equivalents, short-term and long-term investments from discontinued operations
    
395
  
Increase in cash, cash equivalents, short-term and long-term investments
    
1,496
  
         
Cash, cash equivalents, short-term and long-term investments at the beginning of the period
    
118,426
  
Cash, cash equivalents, short-term and long-term investments at the end of the period
  
$
119,922
  
 
 
 
11